NAUGATUCK — A borough landlord who owns a large apartment complex was sentenced Tuesday to nine months in prison for dodging more than $300,000 in taxes.
Anthony “Rusty” Valentino, 77, a resident of Palm City, Fla., pleaded guilty in federal court in Bridgeport earlier this year to tax evasion as part of a plea deal with prosecutors.
Valentino, the owner of the 104-unit Mattatuck Manor housing complex on Spring Street, failed to declare more than $1.1 million in rental revenue from his properties, according to federal authorities. Valentino also owns a vacant lot on Spring Street, as well as property in New York.
From 2011 to 2013, Valentino deposited rental receipts paid to him by tenants into his personal checking and savings accounts without paying federal taxes. Valentino only reported $42,815 in taxable income on his tax returns from 2011 to 2013. As a result, he dodged $302,449 in income taxes, according to federal authorities.
Borough tax records show that Valentino has paid local taxes on Mattatuck Manor, which is valued at more than $5 million. The complex houses people with special needs, veterans, the elderly and infirm, according to Republican-American archives.
Federal authorities also say Valentino split $247,100 into 27 different deposits of cash into his savings accounts in 2013. Banks and other financial institutions are required to report transactions that are over $10,000 to the IRS, and authorities say Valentino structured those deposits to avoid detection by authorities.
In some cases, he deposited multiple transactions that were less than $10,000 on the same day at different times, or on consecutive days, according to federal authorities.
Valentino paid the government $302,339, but still owes about $333,000 in tax penalties and interest, according to federal authorities. He also gave up $100,000 related to his structuring of the cash deposits.
Valentino is free on a $50,000 bond, but must surrender to prison officials in October. He will also pay a $10,000 fine and be on probation for a year after he’s released.
