Aiexpress – Lorraine Pilitz, a 65-year-old resident of Merrick, was handed a 33-month prison sentence and was also ordered to pay restitution, according to an announcement made by the United States Attorney’s Office Eastern District of New York on Friday, January 19.
According to the USAO, during the years 2011 to 2013, Pilitz was the proprietor and operator of various car-related businesses on Long Island.
The IRS mandates that financial institutions submit a Currency Transaction Report, or CTR, for each transaction exceeding $10,000. Nevertheless, Pilitz regularly arranged her business deposits to fall just below this threshold, thus avoiding the need for reporting.
As a result, the IRS was kept in the dark about hundreds of thousands of dollars.
In addition, Pilitz would deposit business checks worth hundreds of thousands of dollars into her personal and her family’s bank accounts.
The USAO’s Office also accused her of keeping “off-the-books” payrolls, submitting fraudulent personal and corporate tax returns, and significantly understating her income on the filed tax returns.
US Attorney Breon Peace accused Pilitz of attempting to conceal significant sums of money and earnings, obstructing the Internal Revenue Service, and exploiting her workers.
The message conveyed by today’s sentence is clear: those who prioritize greed over adherence to the law will face consequences.
In November 2022, Pilitz was found guilty of the charges brought against her following a two-week trial.
In addition to serving her prison sentence, she will also be required to pay a significant sum of $324,702.78 in restitution to the IRS. Furthermore, she will have to relinquish ownership of a commercial property she previously owned in Lindenhurst.
