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Toms River Man Pleads Guilty to Tax Evasion

Former owners of Farmingdale restaurant face five years after admitting they cooked the books

A Toms River man and his law partner pleaded guilty in federal court Tuesday to charges they failed to report nearly $700,000 in payroll and personal income when they owned Mulligan's Bar and Restaurant in Farmingdale, officials said. 

Dale Orlovsky, 66, of Toms River, and Donald Grasso, 65, of Brielle entered guilty pleas before U.S. District Judge Joel A. Pisano in Trenton, admitting their roles in a conspiracy to evade taxes, according to a release from the office of U.S. Attorney Paul J. Fishman. 

Grasso and Orlovsky, charged separately, allegedly failed to report $518,242 in cash payroll to themselves and restaurant employees between 2003 and 2005, the release says. 

Grasso, during said years, failed to report $89,000 in gross income. Orlovsky, during the same period, withheld $85,000 in gross income from the IRS, the release says. 

"Substantial amounts of cash were removed from the cash receipts of Mulligan's and not reported in sales reports that were used as the basis for reporting income for federal income tax purposes," the release says. 

The men used the unreported cash to pay themselves and several employees, the release says. 

Grasso and Orlovsky failed to report $125,892 in cash payroll in 2003, $199,363 in 2004, and $192,987 in 2005, the release says.  

Grasso also filed false federal individual income tax returns for the same calendar years by failing to report $62,000 in gross income in 2003, $23,000 in 2004, and $4,000 in 2005, the release says.  

Orlovsky filed false federal individual income tax returns for the same calendar years by failing to report $58,000 in gross income in 2003, $23,000 in 2004, and $4,000 in 2005, the release says.

The conspiracy to evade taxes count, which both men plead guilty to, is punishable by up to five years in prison and a fine of the greater of $250,000 or twice the gross pecuniary gain by the defendant or loss by the victims, the release says. 

Sentencing for both men is scheduled for Aug. 30, 2012, the release says. 

knarfie April 27, 2012 at 07:51 PM
Found out not the same person.
Joseph E. Haelig April 28, 2012 at 01:12 AM
Does anyone else find it strange that 3 out of the 5 people who were involved in the Camp Albocodo scam are now headed to federal prison? The two that have yet to be bagged, or have they, are Gilmore and Monahan.
1stcav April 28, 2012 at 11:56 AM
The O.C. Republican 's club have strange bed fellow's , but all lie together , until one is caught and then it's the tag game..your it !
Dr. Z May 01, 2012 at 02:59 PM
You are inocent until proven guilty...
Rick Molinia May 09, 2012 at 05:14 PM
read the headline dr z...

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