Local Businessman And Associate Indicted On Fraud And Money Laundering Charges

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a 19 count indictment charging Frank R. Parlato, Jr., 60, and Chitra Selvaraj, 41, with a conspiracy to defraud the United States and certain members of the public, to obstruct the function of the Internal Revenue Service, wire fraud and wire fraud conspiracy, money laundering, and corrupt interference with the administration of the IRS laws. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.

Assistant U.S. Attorneys Anthony M. Bruce and Elizabeth R. Moellering, who are handling the case, stated that according to the indictment, the defendants stand accused of orchestrating a scheme to defraud the Internal Revenue Service and others. The scheme involved more than 15 shell companies, 50 bank accounts, and multiple attorney trust accounts.

The defendants will be arraigned on November 23, 2015 at 3:30 p.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.

The indictment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.