RED BANK, N.J. (CBS12) — Francis Esposito, 66, from Red Bank, pleaded guilty on Wednesday to filing false tax returns and causing over $1.1 million in tax losses for the years 2015 through 2018. According to the U.S. Attorney’s Office for the District of New Jersey, Esposito, who was the sole or majority owner of multiple business entities, failed to report substantial income on his U.S. Individual Income Tax Return (Form 1040).
For tax years 2015 through 2018, Esposito omitted significant amounts of income from his returns, resulting in massive tax losses. In 2018 alone, he failed to report approximately $719,272, leading to a tax loss of $216,635. Similarly, in 2017, he omitted roughly $940,978 in income, causing a tax loss of about $383,806. In 2016, his unreported income of $746,886 led to a loss of $304,640, and in 2015, he failed to report $589,929, resulting in a tax loss of $244,291.
In total, Esposito’s failure to report income over four years caused a tax loss of approximately $1,149,372. The charge of filing a false tax return carries a maximum prison sentence of three years and a potential fine of up to $250,000, or twice the gain or loss from the offense.
Esposito is now facing legal consequences for his actions, with sentencing to follow.
