NJ Man Pleads Guilty to Filing False Tax Return, Avoiding Over $1 Million in Taxes

Francis Esposito Admits to Hiding Income from IRS Over Four-Year Period

A Red Bank, New Jersey man has pleaded guilty to filing a false tax return, admitting to concealing over $1 million in income from the IRS between 2015 and 2018, according to Acting U.S. Attorney Vikas Khanna.

Francis Esposito, 66, entered his guilty plea before U.S. District Court Judge Georgette Castner in Trenton federal court today. He faces one count of filing a false tax return, which carries a maximum prison sentence of three years and a fine of up to $250,000 or twice the gain or loss resulting from the offense.

Court documents reveal that Esposito, a business owner, failed to report substantial income derived from his various entities on his federal tax returns. His unreported income and corresponding tax losses for each year were as follows:

• 2018: $719,272 unreported, resulting in $216,635 in tax loss
• 2017: $940,978 unreported, resulting in $383,806 in tax loss
• 2016: $746,886 unreported, resulting in $304,640 in tax loss
• 2015: $589,929 unreported, resulting in $244,291 in tax loss

In total, Esposito avoided paying approximately $1,149,372 in taxes over the four-year period.

The investigation was led by IRS Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark. The case is being prosecuted by Assistant U.S. Attorneys Vinay Limbachia and Andrew Kogan of the Cybercrime Unit in Newark.

Esposito's sentencing date has not yet been announced.