A Fox Chapel couple whose talent-scouting agency for children held conventions in Pittsburgh and Los Angeles for a fee pleaded guilty yesterday 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 Penn Hills company, Aquarian Associates, which arranges talent auditions in cities across the U.S.

The company runs the "Great American Model & Talent Search" but has been the target of numerous customer complaints over the years from parents accusing Aquarian of operating a scam.

The federal case makes no such accusations, but it does outline a history of shady financial dealings to duck income taxes.

Federal prosecutors said that the pair concealed income by depositing some of the money from the business into their personal bank accounts instead of the corporate account from 1999 to 2003.

As part of the plea, the Manfredis agreed to pay $852,925 before sentencing on April 16.

In addition to tax evasion, the couple admitted to structuring transactions by depositing money in amounts less than $10,000 to avoid currency reporting requirements.

Part of the government's case includes the purchase of a $70,000 Mercedes-Benz in 2000, when the Manfredis visited 17 post offices around the Pittsburgh region and bought 86 money orders worth $50,000 payable to Bobby Rahal Motorcar Co.

Unusual patterns of deposits and withdrawals trigger suspicious activity reports that the government tracks. When IRS agents first questioned Mr. Manfredi about the money orders in 2002, according to an agent's report, he agreed that they appeared suspicious but explained that he saved a lot and didn't like to carry around cash because it was "dangerous."

Aquarian Associates, which remains in business on Rodi Road, invited children and teens to casting calls for up to 2,000 children, who auditioned for a chance to appear at two annual modeling conventions in Pittsburgh and one in Los Angeles. At the conventions, attended by 600 to 800 children, the company charged each participant a fee of up to $500 to appear before talent scouts.

Children and their parents were told that the kids might be chosen for a commercial or a movie, although Mr. Manfredi said he has never promised that anyone would become a star.

Mr. Manfredi is facing up to five years in federal prison but probably won't get that much. Prosecutors said he and his wife have made substantial charitable contributions and have no criminal record.

Ms. Manfredi is likely to receive probation.

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