BUFFALO, N.Y. — On Friday, a Niagara Falls businessman pleaded guilty to a tax charge and will forfeit $1 million.
Frank Parlato, Jr., faces a maximum of of five years in prison and a fine of $25,000 after pleading guilty to willful failure to file returns involving cash transactions of more than $10,000.
The prosecutor handling the case said that between 2004 and 2017, Parlato had ownership and/or managed the One Niagara Building in Niagara Falls. Parlato would permit vendors to lease space in and outside the building.
Parlato negotiated with the business that they would pay 25% of their gross revenue in rent for seasonal rent agreements. Parlato was required to file IRS Form 8300 when receiving annual cash payments for rent over $10,000. Prosecutors say Parlato willining did not file the required form.
Parlato reportedly admits that from 2006-2017 the tax loss from unreported income is about $390,346.
Parlato's sentencing is scheduled for Dec. 7, 2022.
