TAX NEWS - JUNE 2009

Wilmington Contractor Pleads Guilty

(Wilmington, DE) – Director of Revenue, Patrick T. Carter, announced today that Wilmington-based home improvement contractor Wayne Salvadori, 50, pleaded guilty before NCC Superior Court Judge Jerome O.

Herlihy, to a single misdemeanor count of willfully failing to file a State of Delaware personal income tax return, as well as two misdemeanor counts of home improvement fraud.

By pleading guilty, Salvadori admitted that he failed to file a Delaware personal income tax return and intentionally concealed more than $100,000 in gross income from the Delaware Division of Revenue while operating as a licensed home improvement contractor. The majority of Salvadori's income was acquired in fees from consumers and was not subject to withholding.

According to investigators, several individuals paid large, upfront deposits to Salvadori between January 2006 and December 2007; however, Salvadori provided only partial work or materials, and projects were never completed.

Salvadori was indicted in 2008 on two felony counts of home improvement fraud in connection with his contracting business and for failing to file state income tax returns for tax years 2006 and 2007. Judge Herlihy sentenced Salvadori to three years in prison, suspended for supervised probation. Salvadori was also ordered to pay restitution to the Division of Revenue in the amount of $7,819 along with full restitution to the homeowners who were defrauded.

This case was investigated by the Delaware Attorney General's Office and the Division of Revenue's Criminal Investigation Unit, and was prosecuted by the Delaware Attorney General's Office.