(WNY News Now) – James Leonardo, 56, of Rochester, has pleaded guilty to filing a false tax return in connection to underreporting income and overstating deductions tied to his luxury yacht business. The plea, made before Chief U.S. District Judge Elizabeth A. Wolford, could result in up to three years in prison and a $250,000 fine.
Leonardo, owner of MY PI, LLC, was responsible for reporting profits or losses from renting his 110-foot yacht, Pure Insanity. According to Assistant U.S. Attorney Richard A. Resnick, Leonardo intentionally inflated his tax deductions by falsely claiming that the yacht was used exclusively for business between 2015 and 2018. In reality, the yacht was used for business purposes only one-third of the time. This fraudulent claim allowed Leonardo to avoid paying $872,869 in taxes.
The investigation was conducted by the IRS Criminal Investigation Division, led by Special Agent-in-Charge Thomas Fattorusso of the New York Field Office. Sentencing is set for December 17, 2024.
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