Thursday, September 15, 2011
Staff report
CLEVELAND
A Canfield man who pleaded guilty to tax evasion has been sentenced to four months in prison, followed by two months of house arrest and two years of supervised release.
Michael G. Malvasi, 49, of Timber Run Drive, drew the sentence Wednesday from U.S. District Judge Donald C. Nugent, who ordered him to make full payment to the IRS of all taxes, penalties and interest he owes.
Malvasi pleaded guilty to evading federal taxes by failing to file a federal tax return for 2007, during which he earned $184,128 in taxable income.
The U.S. Attorney alleged Malvasi operated a skilled-gaming business using currency and credit cards without keeping accurate records.
A sentencing memorandum by Malvasi’s lawyer, Neal G. Atway of Youngstown, asked Judge Nugent to sentence Malvasi to probation and location monitoring, even though the judge could have sentenced Malvasi to up to five years in prison.
Atway wrote that Malvasi’s only prior criminal conviction was in July 2004 for underreporting his 1998 income, for which Malvasi was sentenced to probation and location monitoring.
Atway also wrote that Malvasi already has made $37,000 in estimated tax payments to the IRS toward the $105,735 in total restitution he owes for tax years 2005 through 2007 and “will diligently work on paying the balance.”
The case was prosecuted by Dean M. Valore, an assistant U.S. Attorney.