Capital Video Corporation - Page 3




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          videotapes and related products out of its office in Rhode                  
          Island.  Capital Video’s taxable year ended on the last day of              
          February.                                                                   
               During the 1980s and early 1990s, Capital Video and Guarino            
          made “tribute” payments to Natale Richichi (Richichi), a capo in            
          the Gambino crime family, in excess of $1,728,000 in exchange for           
          protection provided by the Gambino crime family to Capital Video            
          against extortion from other organized crime families.                      
               Also, during these same years Guarino conspired with                   
          Richichi to obstruct the Internal Revenue Service in the                    
          assessment and collection of Richichi’s Federal income taxes                
          relating to the tribute payments Richichi received from Capital             
          Video and Guarino.                                                          
               Guarino’s conspiracy and obstruction relating to the above             
          tribute payments included manipulating the accounting records of            
          Capital Video, skimming cash from peep show machines to provide             
          cash for the payments made to Richichi, and filing false Forms              
          1099 relating to the payments made to Richichi.                             
               During 1992, 1994, and 1995, Guarino, Richichi, and other              
          individuals were indicted on various Federal criminal charges               
          relating to the above activities.  Guarino was indicted in the              
          U.S. District Court for the District of Nevada and charged with             
          conspiracy to impede, impair, and obstruct the lawful functions             
          of the Internal Revenue Service and to evade the Federal income             






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Last modified: May 25, 2011