Date: Nov. 13, 2024 Contact: newsroom@ci.irs.gov Rochester, NY — U.S. Attorney Trini E. Ross announced today that Nicholas Scarantino of North Carolina, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine. Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Scarantino owned Direct Chemicals in the State of California. Between July and November 2021, he and others mailed thousands of fictitious invoices in the name of Direct Chemicals to victim companies located all over the United States. Approximately 873 victim companies were tricked and defrauded into paying these fictitious invoices, totaling of approximately $861,268.66. Several companies in the Western District of New York were victimized. The companies are located in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls. The plea is the result of an investigation by the Internal Revenue Service-Criminal Investigations, under the direction of Special Agent-in-Charge Thomas M. Fattorusso, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division. Sentencing is scheduled for March 17, 2025, before Judge Wolford. IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
