Former SoHo Ristorante Owner Pleads Guilty to $3.5m Fake Tax Return Scheme

n East Greenwich man and former owner of the SoHo Ristorante restaurant in Narragansett has pleaded guilty to charges stemming from his involvement a $3.5 million tax refund fraud scheme.

Anthony Delfarno, 53, pleaded guilty in U.S. District Court in Providence today to using the personal information of his children and other family members as well as a girlfriend to file fraudulent tax returns.

Delfarno also pleaded guilty to using a dozen corporations he created in the scene to collect more than $3.5 in fraudulent tax returns, said U.S. Attorney Peter F. Neronha.

All told, Delfarno pleaded guilty to 11 counts of mail fraud, 28 counts of theft of government funds and three counts of aggravated identity theft.

Neronha said Delfarno filed twenty-five false individual income tax returns for tax years 2008 through 2011 in his own name, the names of several family members, including five of his children, and in the name of a girlfriend, claiming fraudulent refunds totaling $1.1 million dollars. Delfarno signed the returns either electronically or manually. Approximately $400,000 was paid out.

Additionally Delfarno filed thirty false corporation income tax returns, for which he claimed refunds of $2.4 million dollars. $1 million dollars was paid to the defendant. The corporations were formed by Delfarno in order to execute the scheme.

Wire fraud is punishable by statutory penalties of up to 20 years in federal prison and a fine of up to $250,000; false claims against the United States is punishable by a statutory penalty of up to 5 years in federal prison and a fine of up to $250,000; and aggravated identity theft is punishable by a statutory penalty of a mandatory sentence of two years in federal prison, to be served consecutive to all other penalties imposed.

Delfarno, who has been released with GPS monitoring since his arrest and arraignment on December 18, 2014, is scheduled to be sentenced on September 16, 2015.

The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.

Here’s the indictment against Delfarno: