A Fox Chapel couple who ran a talent-scouting agency for children that held conventions in Pittsburgh and Los Angeles pleaded guilty today in federal court to tax evasion and structuring currency transactions to avoid IRS reporting requirements.
Samuel J. Manfredi, 63, and his wife, Marilyn, 57, were accused in a 2007 indictment of using more than 200 accounts at 25 area banks to hide cash that they collected through their company, Aquarian Associates, which arranged talent auditions in cities across the U.S.
Federal prosecutors said today that the pair concealed income by depositing money from the business into their personal bank accounts, costing the IRS about $315,000 between 1999 and 2003. The couple also deposited money in amounts less than $10,000 to avoid currency transaction reports required by the federal government. Unusual patterns of deposits and withdrawals trigger suspicious activity reports that banks relay to criminal investigators at the IRS.
In addition, the couple went to 17 post offices around Pittsburgh, where they bought 86 money orders worth $50,000 payable to a car dealer for the purchase of a new Mercedes Benz.
Aquarian Associates, based in Penn Hills, invited children and teens to casting calls across the U.S., where the participants auditioned for a chance to appear at annual modeling conventions in Pittsburgh and in Los Angeles. From there, the company said they might be chosen for a commercial or a movie.
Mr. Manfredi is facing up to five years in federal prison, although he probably won't get that much. Prosecutors said he and his wife have made substantial charitable contributions. Ms. Manfredi is likely to receive probation.
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