Man gets prison for tax evasion in ‘kickback scheme’

A Torrington man was sentenced to 18 months in federal prison Tuesday after he allegedly evaded taxes through a “kickback scheme,” according to the Connecticut U.S. Attorney’s Office.

Serafino Canino, 53, pleaded guilty to tax evasion in September 2018.

According to a release from the U.S. Attorney’s Office, Canino “was employed by, and had an ownership interest in, Innovative Concepts Corporation,” a company “that manufactured and distributed small power and hand tools.”

As part of its work, the company contracted with Asian factories through arrangements that were administered by intermediaries in Taiwan, the release said. The Taiwanese intermediaries “negotiated with the factories in Asia, ensured the shipment of manufactured products to ICC, and invoiced ICC for the manufacturing of its products,” officials said.

“From 2008 through 2011, Canino engaged in fraudulent billing using two of ICC’s intermediaries in Taiwan,” said Tom Carson of the U.S. Attorney’s Office in the release. “Canino instructed the intermedi- aries to charge ICC an inflated price and kick back the overage to Canino using overseas bank accounts and an overseas corporate entity.”

Canino received approximately $633,000 in this way, according to the release, which he did not report on his taxes. The Internal Revenue Service lost $186,358 as a result.

Canino was ordered to pay more than $430,000 in back taxes, interest and penalties, according to the release.

He is required to report to prison June 5.