Attorney General James And Acting Tax Commissioner Hiller Announce Arrest Of Alleged Ponzi Schemer for Tax Evasion

May 20, 2022

New York Attorney General Letitia James and New York State Department of Taxation and Finance Acting Commissioner Amanda Hiller announced the arrest and arraignment of Carl Carro (60) of Walton, NY.

He was being arrested for failing to pay more than $75,000 in New York state taxes over the past six years. Carro — who was previously arrested for operating a multi-million dollar Ponzi scheme — is now charged with failing to file income taxes from 2017 through 2019 and for filing a false income tax return in 2020, following his arrest on the prior charges.

Between 2012 and 2020, Carro allegedly defrauded dozens of investors out of millions of dollars through a scheme involving fake promises of prospect interviews and investment opportunities.

Instead of investing funds, he allegedly diverted them for personal expenses, including paying credit card bills, pet expenses, and more.

Carro was charged for his failure to report the millions of dollars that he fraudulently solicited from unsuspecting investors as income.

“When businesses and individuals defraud our tax system, it deprives communities of public funds for vital services and programs,” said Attorney General James. “Not only did Carl Carro allegedly cheat investors out of millions of dollars, he also deceived and stole from our state to conceal his crime. Fraud of any kind is never acceptable, and my office will continue to ensure those who steal from our communities will be held accountable to the fullest extent of the law.”

“The tax crimes alleged in this case show a blatant disregard for our tax laws and for all New Yorkers who rely on the vital services and programs that these taxes fund,” said Acting Commissioner Hiller. “We’ll continue to work with Attorney General Letitia James, her office, and all levels of law enforcement to root out all forms of tax fraud.”

A joint investigation by the Office of the Attorney General (OAG) and the Department of Taxation and Finance (DTF) revealed that Carro failed to report the taxable income he earned during the course of the Ponzi scheme he allegedly operated.

While the new charges reflect crimes committed from 2015 through 2020, a DTF audit found that Carro underreported his income by more than $2 million and failed to pay more than $100,000 in taxes owed to New York state since at least 2012.

In January 2021, Carro was charged for his role in a Ponzi scheme that defrauded more than 50 investors in New York and across the nation out of millions of dollars.

As alleged in the prior complaint, Carro and his co-defendant James Doyle pretended to be managers of headhunting companies, Endeavor Management Solutions, and Endeavor Consultancy.

The two individuals allegedly lured victims with false promises of interviews for board positions and offered fake investment opportunities in their firm with guaranteed profit returns.

However, instead of investing the funds, they used investors’ funds for personal expenses and to pay back previously defrauded investors.

The two individuals allegedly spent nearly $600,000 on cash withdrawals, more than $200,000 to pay credit card bills, squandered nearly $120,000 on pet expenses, and exhausted more than $350,000 to pay previously defrauded investors.

Carro is charged with multiple counts of Criminal Tax Fraud in the Third Degree (class D felony), Criminal Tax Fraud in the Fourth Degree (class E felony), Offering a False Instrument for Filing in the First Degree (class E felony), and Repeated Failure to File Personal Income Tax Returns (class E felony). If convicted, Carro faces up to 10 to 20 years in state prison.

Carro, who was previously out on bail in the securities fraud case, was arraigned before the Honorable Andrew Z. Skrobanski in the village of Sidney, acting as town of Walton justice, and was remanded pending a bail hearing. If convicted of all charges, Carro faces up to 10 to 20 years in state prison.

The charges against the defendant are allegations and he is presumed innocent unless and until proven guilty.

The OAG wishes to thank DTF’s Criminal Investigations Division for their valuable assistance in this investigation.

This case is being prosecuted by Assistant Attorneys General Philip V. Apruzzese and Maureen L. Grosdidier, with the assistance of Legal Support Analyst Jamirah Williams-Johnson, under the supervision of Supervising Analyst Paul Strocko and Deputy Supervising Analyst Jayleen Garcia.

Forensic accounting was conducted by Principal Auditor Investigator Meaghan E. Scotellaro, under the supervision of Chief Auditor Kristen Fabbri and Deputy Chief Auditor Sandy Bizzarro of the Forensic Audit Section.

The OAG’s Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Stephanie Swenton and Deputy Bureau Chief Joseph G. D’Arrigo.

The criminal investigation was handled by Detective Supervisor Mitchell J. Paurowski, Detectives Dennis Churns and Timothy R. Sicko, and Acting Executive Officer Samuel Scotellaro, under the supervision of Deputy Chief and Acting Commanding Officer Edward Carrasco of the Major Investigations Unit.

 The Investigations Bureau is led by Chief Investigator Oliver Pu-Folkes and First Deputy Chief John Reidy. Both the Criminal Enforcement and Financial Crimes Bureau and the Investigations Bureau are part of the Division for Criminal Justice, which is led by Chief Deputy Attorney General José Maldonado and overseen by First Deputy Attorney General Jennifer Levy.

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