Friday, October 25, 2013
Former Brokerage Firm Operations Head Indicted for Tax Crimes
An indictment was unsealed today charging Dominick Pannitti, formerly of North Bellmore, N.Y., with tax crimes, the Justice Department announced.
According to the indictment, which was returned by a grand jury on Sept. 26, 2013, Pannitti was Head of Operations at a securities brokerage firm in Syosset, N.Y. The securities firm had an automated system designed to adjust customers’ trading accounts for amounts less than $1,000. During 2005 and 2006, Pannitti used the automated system to credit his own trading accounts hundreds of times in increments less than $1,000. Pannitti was not entitled to most of these credits, which totaled over $570,000. Pannitti concealed from his accountant the income he obtained and failed to report the income on his tax returns.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. Pannitti faces a potential maximum sentence of eight years in prison and a potential fine of up to $500,000.
The case was investigated by the Internal Revenue Service (IRS) - Criminal Investigation and the FBI. The case is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.