Date: February 6, 2020
Providence, RI – A Providence chiropractor today pled guilty in federal court to tax evasion, admitting that he diverted more than $1 million dollars in business revenue for his own personal use, and that he failed to report the income to the IRS, announced Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.
Dr. Leonard Marino of Johnston is the President and sole shareholder of Chiropractic Associates in Providence. Dr. Marino admitted that from 2016 through 2019, he devised schemes to divert $1,061,000 in income generated by his business to his own personal use, and that he failed to report the income to the IRS.
A significant amount of Chiropractic Associates income is derived from insurance company payments for bodily injury claims submitted by law firms on behalf of some of Dr. Marino’s patients. Payments, in the form of checks, were made by the law firms payable to Chiropractic Associates.
Dr. Marino admitted to devising schemes to cash many of the law firms’ checks and divert the proceeds for his own personal use. After a bank raised concerns with him about his check cashing practices, he requested that the law firms make checks payable to him personally, which they did. Marino then cashed those checks using a check casher.
Marino admitted to the court that in 2017 he failed to report $531,408.38 in gross income, which would have resulted in tax due the IRS of approximately $236,945. He admitted that from 2016 through 2108, he failed to report income totaling $1,061,000.
Marino is scheduled to be sentenced by U.S. District Court Judge William E. Smith on May 7, 2020.
Tax evasion is punishable by statutory penalties of up to five years imprisonment; a fine of $250,000 or not more than twice the gross gain or twice the gross loss resulting from the offense; and a term of supervised release of three years.
The case is being prosecuted by Assistant United States Attorney Dulce Donovan.