Investigations

 
January 22, 1998

Two Plead Guilty in Fuel-Tax-Evasion Case

 
 

Summary

A multi-agency investigation code-named "Red Daisy" spurred the sentencing of two New York men in September 1999 on racketeering charges in connection with motor-fuel tax fraud. Sentenced in Newark, NJ Federal court were Daniel Pagano of Monsey, NY and Anthony Palumbo of Bronxville, NY. Pagano was sentenced to 8 years and 9 months in prison followed by 3 years supervised release, and a fine of $100,000. Palumbo was sentenced to 3 years and 10 months' imprisonment--followed by 3 years supervised release--and a $5,000 fine. The defendants were charged with conspiring to defraud the Federal government of more than $77 million dollars in unpaid motor fuel taxes. The investigating agencies included the FBI, the IRS, OIG, prosecutors of the Department of Justice and the New Jersey and Pennsylvania state revenue agencies.

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