NetNews Usenet Archive 1992 #27/NN_1992_27.iso/spool/misc/legal/20191

Internet Message Format | 1992-11-19 | 3.7 KB

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From: [e-mail] (Nigel Allen)
Newsgroups: misc.legal,alt.activism,misc.headlines,ny.general
Subject: Pastoressa Pleads Guilty to Conspiracy, Tax Evasion Charges
Message-ID: <[e-mail]>
Date: 19 Nov 92 23:16:51 GMT
Organization: Echo Beach, Toronto
Lines: 63

Here is a press release from the U.S. Department of Justice.

 Pastoressa Pleads Guilty to Conspiracy, Tax Evasion Charges
 To: National Desk
 Contact: U.S. Department of Justice Public Affairs, 202-514-2007

   NEW YORK, Nov. 19   -- Andrew J. Maloney, United States Attorney,
Eastern District of New York, announced today that Nicholas
Pastoressa, the former president of Central Security Systems
Inc. (CSSI) -- a Staten Island-based company which, since 1988, has
received over $100 million pursuant to Court Security Officer
contracts with the United States Marshals Service -- pleaded guilty
to a criminal information charging him with conspiracy and tax
evasion.
   Specifically, Pastoressa pleaded guilty to conspiring, with
unnamed others, to commit the following offenses against the United
States:
   -- Bribery, in violation of Title 18, United States Code, Section
201(b);
   -- The giving of unlawful gratuities, in violation of Title 18,
United States Code, Section 201 (c);
   -- Wire fraud, in violation of Title 18, United States Code,
Section 1343;
   -- Structuring cash transactions, in violation of Title 31, United
States Code, Section 5324; and
   -- Mail fraud, in violation of Title 18, United States Code,
Section 1341.
   The information filed today charged that it was an object of the
conspiracy that Pastoressa and others corruptly would pay money to an
employee of the United States Marshals Service to obtain that
employee's unauthorized assistance in the preparation of CSSI's bid
proposals for Court Security Officer contracts and to obtain
confidential information about the status of competitior's bids.
   The information also charged that it was an object of the
conspiracy that Pastoressa and others would give gratuities to public
officials of the United States Marshals Service for and because of
official acts performed and to be performed by those public
officials.
   Another object charged in the conspiracy was that Pastoressa and
his co-conspirators would make payments to an individual totalling
between $35,000 and $75,000, usually in cash, to secure that
individual's assistance and influence on behalf of CSSI with various
government officials and that the cash would be generated by
structuring the transactions to evade the reporting requirements of
the Bank Secrecy Act, Title 31 of the United States Code.
   The information also charged that it was an object of the
conspiracy that Pastoressa and his co-conspirators devised a scheme
to defraud the City of New York by under-reporting the income of
certain employees of CSSI, who were retired New York City police and
transit police officers receiving disability pensions, so that these
retired officers could evade the restrictions on income which they
were allowed to earn above their New York City pensions.
   Finally, the information charged Pastoressa with evading in excess
of $71,000 in personal income taxes in 1988.
   As a result of his guilty plea, Pastoressa faces up to 10 years
imprisonment and a total of $500,000 in fines.
   The company, which is under new management, is cooperating with
the ongoing investigation which is being conducted by the Federal
Bureau of Investigation and the Criminal Investigation Division of
the Internal Revenue Service.
   The case is being prosecuted by Assistant United States Attorney
Julie Copeland.
 -30-