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Former local business owner sentenced to federal prison for tax fraud

Carlo J. Marinello, Jr., 69, of Williamsville, the manager and owner of a Buffalo business document delivery firm, was ordered Wednesday to serve a federal prison term of 36 months and to pay $351,763.08 in unpaid taxes by Senior U.S. District Court Judge William M. Skretny.

Assistant U.S. Attorney Russell T. Ippolito, Jr. said Marinello, who operated Express Courier Group/Buffalo, Inc. failed to pay either personal or corporate taxes on hundreds of thousands of dollars in U.S. and Canadian-generated revenue in 2005, 2006, 2007 and 2008.

The prosecutor said Marinello was convicted of failing to maintain corporate business records, failing to provide an accountant with complete and accurate information, destroyed business records, hid income from the corporation in personal and non-business bank accounts, paid employees with cash and used corporate receipts to pay for the mortgage on his home and expenses of his elderly mother in a senior living center.

A jury convicted Marinello last Aug. 12 of one count of obstructing and impeding the due administration of the federal Internal Revenue Code, four counts of failing to file personal income tax returns and four founts of failing to file corporate tax returns, Ippolito said.