Resident Pleads Guilty to Tax Evasion and Making False Statements

U.S. Attorney Paul J. Fishman announced that Eric Logiudice of Manalapan Township has confessed to evading his personal taxes and sending false documents to the Department of Housing and Urban Development (HUD) on Thursday, July 14, with the intention of receiving federal funding which he was not entitled, according to a press release issued by the United States Attorney District of New Jersey.

Logiudice, 41, plead guilty to an Information charge on two counts, one count of tax evasion in 2006 and one count of making false statements, in front of U.S. District Judge Joel A. Pisano in Trenton federal court. According to the press release, the false statements were written in proposals with the intention to gain community redevelopment funds.

Each charge carries the maximum possible penalty of a $250,000 fine and five years in prison.

Logiudice admitted to evading paying roughly $115,711 in personal income taxes for 2006 and that he evaded paying about $199,847 in personal income taxes by sending in fraudulent tax returns which did not reveal his income of approximately $607,161, according to the press release. This undisclosed income includes a minimum of about $150,000 stolen and embezzled money from his previous employer, located in Union, NJS Metropolitan Archietectural Woodworking Inc., the press release noted.

A former colleague at NJS applied to the City of Orange Township Department of Planning and Development to obtain Essex County HUD’s Community Economic Revitalization Program monies in order to fund a project on Lincoln Avenue, the release explained. Logiudice became the general contractor of the project and then prompted another NJS employee to create false certified weekly payroll reports for five employees who were unaffiliated with the project, in order to get more money. The fraudulent payroll reports were submitted to the City of Orange and $52,872.50 in community redevelopment funds were granted from HUD, according to the release.

In addition to the possible outcomes of the charges, Logiudice has agreed to reimburse the money that was stolen. Restitution in the amount $199,847 will be paid by Logiudice to the IRS for the entirety of money lost as a result of his fallacious tax returns between 2005 and 2008. Additionally, Logiudice will pay $52,872.50 to HUD for sending the fraudulent payroll records, and no less than $150,000 to NJS Metropolitan Architectural Woodworking Inc. the release said.

Logiudice’s sentencing is scheduled for Oct. 17.