CENTRAL ISLIP, NY — In a recent federal court hearing in Central Islip, United States District Judge Joanna Seybert sentenced Lorraine Pilitz, 65, of Merrick, New York, to 33 months in prison. Pilitz’s sentencing follows her November 2022 conviction for illegally structuring financial transactions, obstructing the Internal Revenue Service (IRS), and filing false tax returns. Additionally, she has been ordered to pay $324,702.78 in restitution to the IRS and forfeit a commercial property in Lindenhurst, New York.
United States Attorney for the Eastern District of New York, Breon Peace, and IRS Criminal Investigation New York (IRS-CI) Special Agent-in-Charge, Thomas Fattorusso, announced the sentence.
United States Attorney Peace emphasized the gravity of Pilitz’s actions, highlighting her years of hiding significant cash amounts and income, impeding the IRS, and cheating employees. Special Agent-in-Charge Fattorusso pointed out Pilitz’s scheme of structuring cash deposits just under $10,000 to evade Currency Transaction Report filings, and her methods of concealing income through “off-the-books” payrolls and false tax returns.
Evidence presented at trial showed Pilitz’s involvement in operating several automobile-related businesses in Long Island, where her activities led to the concealment of hundreds of thousands of dollars from the IRS.
The prosecution was managed by the Office’s Long Island Criminal Division, with Assistant United States Attorneys Burton T. Ryan, Jr., Adam R. Toporovsky, Madeline O’Connor, and Diane Leonardo leading the case, aided by Paralegal Specialist Michael Compitello.