05-27-04 -- Montanino, Gerard A. -- Guilty Plea -- News Release

Purchasing Manager for Seafood Distributor Pleads Guilty to Tax Evasion

TRENTON - A purchasing manager for a New York seafood distributor pleaded guilty today to an Information charging tax evasion in connection with his scheme to have three Massachusetts seafood suppliers pay him kickbacks in exchange for wholesale purchases, U.S. Attorney Christopher J. Christie announced.

Gerard A. Montanino, 47, of Manasquan, entered his plea before U.S. District Judge Stanley R. Chesler, who scheduled sentencing for Aug. 17.

According to the Information, Montanino was employed as a purchasing manager by Pride Seafood (Pride) located in West Sayville, N.Y. Pride is a distributor that purchases seafood from suppliers and processors along the eastern seaboard and sells its products to restaurants and grocery stores.

At his plea hearing, Montanino admitted that from at least to April 1996 through December 1998, he requested and received "commission" payments from three Massachusetts seafood wholesale suppliers. Montanino admitted that he managed purchasing accounts of SEAMAX, Inc., and SEAFRESH of New Bedford, Inc., both of New Bedford, Mass. and Mark's International Seafood Brokers, Inc. of Fairhaven, Mass.

Montanino admitted that he requested the commission in exchange for Pride's continued wholesale purchase of seafood from the companies. Montanino admitted that he had the payments mailed to his residence. Allegedly, Montanino's demand for and receipt of payments in amounts and in a manner of his choosing was without the knowledge of Pride, according to the Information. Pride has cooperated in the investigation, according to Assistant U.S. Attorney Joan Thomas.

Montanino pleaded guilty to Count Two of a three-count Information, each count charging him with tax evasion. Montanino admitted that he falsely reported total income of $110,242 for the tax year of 1997, which omitted approximately $38,869 of income realized from commission payments during that year, leaving $12,830 in taxes due.

Count One charges that Montanino falsely reported that his total income for the tax year 1996 was $100,337, which omitted approximately $23,068 in commission payments. As a result, Montanino evaded payment of an additional $7,128. Count Three charges that Montanino falsely reported his income for the tax year of 1998 by claiming total income of $126,848, which omitted approximately $9,397 of income from commission payments, leaving $3,329 in taxes due.

The defendant faces a maximum penalty of five years in federal prison and a $250,000 fine.

Montanino is free on $100,000 personal recognizance bond pending sentencing.

Under U.S. Sentencing Guidelines, Judge Chesler will determine Montanino's actual sentence based upon a formula that takes into account the severity and characteristics of the offense, and the defendant's criminal history, if any. Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

In the filing of a felony Information, a defendant waives the right to have his or her case presented to a federal grand jury and, instead, pleads guilty to charges presented by the Government.

Christie credited Special Agents of the IRS, under the direction of Patricia J. Haynes, Special Agent in Charge of the Newark office, with developing the case against Montanino.

The Government is represented by Assistant U.S. Attorney Joan Thomas, of the U.S. Attorney's Criminal Division in Trenton.

Defense Attorney: Darren M. Gelber, Esq. Woodbridge