Mario Biaggi and Estate of Marie Biaggi - Page 4




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                  We must also determine whether petitioner is liable for the                          
            additions to tax.                                                                          
                  Some of the facts have been stipulated and are so found.                             
            The stipulation of facts, with accompanying exhibits, is                                   
            incorporated herein by this reference.  We need find few facts in                          
            addition to those stipulated and, accordingly, do not separately                           
            set forth those findings.  We include additional findings of fact                          
            in the discussion that follows.                                                            
                  At the time the petition was filed, petitioner resided in                            
            Bronx County, New York.                                                                    
            II.  Background                                                                            
                  In 1983, petitioner was a member of Congress, from the 19th                          
            District in New York.  Wedtech was a manufacturing company                                 
            located in New York City, which received contracts from the                                
            U.S. Department of Defense.  In 1987, petitioner was indicted on,                          
            and in 1988 he was convicted of, various counts arising out of                             
            his relationship with Wedtech.  Among those counts were                                    
            (1) racketeering in connection with his demand and receipt of the                          
            Wedtech shares and $50,000 in exchange for influencing public                              
            officials to grant a lease to Wedtech; (2) extortion, bribery,                             
            and receipt of an unlawful gratuity in connection with his demand                          
            and receipt of the Wedtech shares; (3) making false statements in                          
            concealing his ownership of the Wedtech shares; (4) filing false                           
            income tax returns for failing to report income derived from                               






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