Owner file

Frank Parlato pleads guilty to failing to file IRS form | Crime News

This is breaking news. Check back for updates.

Former real estate developer and weekly publisher Frank R. Parlato Jr. pleaded guilty Friday in federal court to failing to file a form with the IRS as part of a plea deal that settles a lawsuit for almost seven years.

Parlato admitted to accepting cash payments totaling $19,970 from a food vendor at the One Niagara building in Niagara Falls, but did not notify the IRS, which must be alerted to receipts of cash over $10,000.

Parlato, 67, was due to stand trial next month on 18-count charges, including several counts of fraud and money laundering.

Federal sentencing guidelines call for a prison term of 24 to 30 months, a fine of $10,000 to $25,000 and one to three years of supervised release.

People also read…

He also agreed to pay approximately $184,000 in restitution for unpaid income taxes and agreed to confiscate $1 million from federal authorities.

The money collected from the seller was for rent paid in the summer of 2010 on the downtown Niagara Falls building, Parlato, operated as a tourist resort, according to the plea agreement.

Parlato admitted that he did not file what is called Form 8300 with the IRS.

Parlato was first charged by federal prosecutors in 2015 following an FBI investigation dating back to at least 2012.

Prosecutors dropped some charges, including that Parlato stole $1 million from two heirs to the Seagrams liquor fortune, when they unsealed a new indictment before the grand jury in May 2018.

Sentencing was scheduled for December 7.

Federal prosecutors said Parlato’s co-defendant, Chitra Selvaraj, also plans to plead guilty in the case.

Reach Aaron in Abesecker[at]buffnews.com or 716-849-4602.