U.S. v. Manfredi

Citation628 F.Supp.2d 608
Decision Date21 January 2009
Docket NumberCriminal No. 07-352.
PartiesUNITED STATES of America v. Samuel J. MANFREDI and Marilyn T. Manfredi, Defendants.
CourtU.S. District Court — Western District of Pennsylvania
MEMORANDUM OPINION AND ORDER

NORA BARRY FISCHER, District Judge.

I. INTRODUCTION

On September 25, 2007, a grand jury returned an eight-count indictment against Samuel J. Manfredi ("Mr. Manfredi") and Marilyn T. Manfredi ("Mrs. Manfredi") (collectively, "Defendants") charging both with the following crimes: (1) at Count One with conspiracy to commit offenses against the United States under 18 U.S.C. § 371 including income tax evasion in violation of 26 U.S.C. § 7201, filing false tax returns in violation of 26 U.S.C. § 7206(1) and structuring currency transactions in violation of 31 U.S.C. § 5324(a)(3) and 18 U.S.C. § 2; (2) at Counts Two, Three and Four with income tax evasion in violation of 26 U.S.C. § 7206(1); and (3) at Count Eight with structuring currency transactions in violation of 31 U.S.C. § 5324(a)(3) and 18 U.S.C. § 2. (Docket No. 2). The indictment also charges Samuel J. Manfredi, only, at Counts Five, Six and Seven with filing false tax returns in violation of 26 U.S.C. § 7206(1). Id. This matter is before the Court on Defendants Samuel J. Manfredi and Marilyn T. Manfredi's remaining Pretrial Motions upon which oral argument was heard on December 22, 2008.

As a preliminary matter, the Court has granted Defendant Samuel J. Manfredi's "Motion to Adopt and Join In Motions of Co-Defendant" (Docket No. 43) and Defendant Marilyn T. Manfredi's "Motion to Join Motions filed by Co-Defendant" (Docket No. 50). Accordingly, when applicable, the Court will discuss each Pretrial Motion as they pertain to both Defendants.

The Court also previously denied seven of Defendants' Pretrial Motions in a Memorandum Opinion and Order issued on June 27, 2008, 2008. (Docket No. 86). In said Order, the Court denied the following motions previously filed by Defendants:

A. Motion for Disclosure of 404(b) Evidence (Docket No. 29);

B. Motion for Revelation of Identity of Informants (Docket No. 51) C. Motion to Preserve Evidence (Docket No. 55);

D. Motion for Government Disclosure of Rule 807 "Residual Exception" Statements (Docket No. 46);

E. Motion for Pretrial Disclosure of All Brady Materials (Docket No. 48);

F. Motion for Discovery and Notice of Intention to Use Evidence (Docket No. 32);

G. Motion for Search of Personnel Files of Government Agency Witnesses (Docket No. 45);

Presently before the Court are six additional Pretrial Motions in which both Defendants have joined (to the extent applicable to each). The pending Pretrial Motions include the following:

H. Motion to Dismiss Count One for Alleging Multiple Conspiracies (Docket No. 38);

I. Motion to Dismiss Counts One, Five through Seven, and Eight For Failing To State an Offense and All of Its Forfeiture Allegations For Being Predicated on Defective Counts One and Eight (Docket No. 40);

J. Motion to Dismiss Indictment's Forfeiture Allegations (Docket No. 34);

K. Motion for Bill of Particulars by Defendant Samuel Manfredi (Docket No. 36);

L. Motion for Bill of Particulars by Defendant Marilyn Manfredi (Docket No. 31); and

M. Motion for Severance from Co-Defendant by Marilyn Manfredi (Docket No. 53).

II. BACKGROUND

The indictment alleges the following facts. At all times material to the indictment, Aquarian and Associates Incorporated ("Aquarian"), was a modeling and talent agency owned by Defendant Samuel J. Manfredi and incorporated in the Commonwealth of Pennsylvania. (Docket No. 2 at ¶¶ 1-2). Aquarian conducts modeling and talent auditions and shows in various cities in the United States and generates its revenue through registration fees for clients who participate in their shows. (Docket No. 2 at ¶¶ 2-3). "Aquarian also sold various `extras' at the shows, such as photographs and t-shirts." (Docket No. 2 at ¶ 3). The registration fees and extras were paid by Aquarian's business clients and customers through cash, personal checks, money orders, and credit cards. (Docket No. 2 at ¶ 3). The alleged mishandling of these business activities, running from March 16, 1998 to April 15, 2004, forms the basis of the Grand Jury's indictment against Defendants. (Docket No. 2 at ¶ 4).

A. Count One—Conspiracy under 18 U.S.C. § 371

Count One charges that Defendants knowingly and willfully combined, conspired, confederated, and agreed together and with one another to commit offenses against the United States, in violation of 26 U.S.C. §§ 7201 and 7206(1), and 31 U.S.C. § 5324(a)(3), that is: "(a) to evade and attempt to evade U.S. Individual income taxes; (b) to subscribe to and file false U.S. Income Tax Returns for an S-Corporation; and (c) to structure U.S. currency transactions with domestic financial institutions." (Id. at 1-2).

1. Manner and Means of the Conspiracy

Specifically, the indictment alleges that the following facts were done, made, or caused to be done as part or in furtherance of the conspiracy. Defendants "collected the business receipts of Aquarian and deposited and caused the deposit of the checks, money orders and credit card payments into Aquarian business accounts but did not deposit all of the cash receipts into the business accounts." (Id. at ¶ 5). Samuel Manfredi "provided or caused to be provided deposit slips reflecting the deposits into Aquarian bank accounts to an independent accountant retained" by him. (Id. at ¶ 6). Rather than "depositing all of the cash receipts earned from Aquarian business operations into business accounts," Defendants "used some of the cash to purchase postal money orders, certificates of deposit, annuities and personal property, including a Mercedes Benz automobile." (Id. at ¶ 7). The Postal Money Orders were purchased from United States Post Offices, "where they purchased United States Postal Money Orders by structuring the purchases with currency in amounts calculated to avoid required filings of funds transaction reports." (Id. at ¶ 8).

In addition, Defendants allegedly opened "205 accounts at 25 financial institutions in the Western District of Pennsylvania, including certificate of deposit and annuity accounts, savings accounts and other accounts" which were used to deposit Aquarian cash receipts. (Id. at ¶ 9). Defendants "also structured the deposit of currency, along with money orders, into certificate of deposit, annuity, savings and other bank accounts in the Western District of Pennsylvania in amounts calculated to avoid required filings of currency transaction reports." (Id. at ¶ 10). Further, Defendants allegedly did not report all cash receipts from Aquarian business operations to their independent accountant. (Docket No. 2 at ¶ 11). As such, the accountant who prepared Defendants' Aquarian and personal tax returns was unaware of the existence of the cash receipts and did not include them as income of Aquarian on the United States Income Tax Returns for an S Corporation (Form 1120S) or Defendants' Joint Individual Income Tax Returns (Form 1040). (Id. at ¶ 11).

It is alleged that Samuel J. Manfredi, reviewed, signed, and caused to be filed with the Internal Revenue Service ("I.R.S.") Aquarian's United States Income Tax Return for an S Corporation prepared by the independent accountant with the knowledge that the gross receipts of all of the cash generated by Aquarian business operations had not been included in the independent accountant's calculations. (Id. at ¶ 12). Similarly, it is alleged that both Defendants reviewed, signed, and caused to be filed with the I.R.S. the United States Joint Individual Income Tax Returns prepared by the independent accountant with the knowledge that the gross receipts of all of the cash generated by Aquarian business operations had not been included in the independent accountant's calculations. (Id. at ¶ 13).

2. Overt Acts

It is further alleged that the following overt acts "[i]n furtherance of the conspiracy, and to effect its objects and purposes" were committed by Defendants in the Western District of Pennsylvania. (Id at ¶ 14).

Specifically, on or about July 22, 2002, Samuel J. Manfredi falsely stated to a Special Agent of the I.R.S., Criminal Investigation, and a United States Postal Inspector, "that he reported all Aquarian cash receipts as income on Aquarian's corporate tax returns," even though he knew that he "did not report all of the cash receipts on Aquarian corporate tax returns." (Id. at ¶ 15).

On or about March 30, 2000, both Defendants allegedly traveled to 17 different United States Post Offices to purchase approximately 74 United States Postal Money Orders with cash, totaling $42,300.00. (Id. at ¶ 16). Each money order was made payable to Bobby Rahal Motorcar Company ("Rahal"). In addition, on or about April 3, 2000, Marilyn T. Manfredi purchased a 2000 Mercedes Benz automobile at Rahal "by providing that company in partial payment for the automobile a total of approximately 86 United States Postal Money Orders having a total value of $50,000.00, and $8,800.00 in United States currency." (Id. at ¶ 17). Further, that on or about April 25, 2002, Marilyn T. Manfredi "purchased with United States currency a total of 9 United States Postal Money Orders having a total value of $6,300.00 at United States Post Offices in Norwood, Massachusetts. The money orders were made payable to either Samuel J. Manfredi or Marilyn T. Manfredi." (Id. at ¶ 18).

On or about April 15 of each year between 1999 and 2003, Defendants caused the filing of United States Individual Income Tax Returns (Form 1040) in the Western District of Pennsylvania, allegedly knowing that the returns did not report the correct amount of income received by them for that year. (...

To continue reading

Request your trial
12 cases
  • United States v. Taylor, Criminal No. 15–248
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. Western District of Pennsylvania
    • February 2, 2017
    ...the conspiracy." McKee , 506 F.3d at 238 (citing United States v. Rankin , 870 F.2d 109, 113 (3d Cir. 1989) ).United States v. Manfredi , 628 F.Supp.2d 608, 640 (W.D. Pa. 2009) ; cf. United States v. Rigas , 605 F.3d 194, 206–07 (3d Cir. 2010). " 'To conspire to defraud the United States me......
  • United States v. Johnson, 1:15cr11–1
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. Western District of Pennsylvania
    • October 27, 2016
    ...to prepare for trial and protect himself against a subsequent prosecution barred by double jeopardy. See United States v. Manfredi , 628 F.Supp.2d 608, 619–20 (W.D. Pa. 2009) ("An indictment is generally deemed sufficient if it: (1) contains the elements of the offense intended to be charge......
  • State v. Steed
    • United States
    • Supreme Court of Utah
    • May 16, 2014
    ...(upholding joint trial of husband, wife, and other codefendants on tax evasion and other related charges); United States v. Manfredi, 628 F.Supp.2d 608, 644 (W.D.Pa.2009) (upholding tax evasion indictments brought jointly against husband and wife). See13 Am.Jur. Trials 1Defending Federal Ta......
  • United States v. Evans
    • United States
    • United States District Courts. 3th Circuit. United States District Court of Middle District of Pennsylvania
    • August 19, 2021
    ...in its briefs, (see, eg., Doc. 57 at 21-22), Evans Jr.'s alternate request for a bill of particulars will be denied. See Manfredi, 628 F.Supp.2d at 638-39. 4. Count 7, Failure to Notify PADEP regarding the volume of hauled-in wastewater treated at the GTSA in violation of CWA permit under 3......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT