Former CEO of Hollywood Payroll Company Convicted for Tax Fraud Conspiracy
https://www.justice.gov/usao-cdca/pr/former-ceo-hollywood-payroll-company-convicted-tax-fraud-conspiracy
Department of Justice
U.S. Attorneys Office
Central District of California
FOR IMMEDIATE RELEASE
Wednesday, October 26, 2016
Former CEO of Hollywood Payroll Company Convicted for Tax Fraud Conspiracy
Millions Diverted from Axium International Before Bankruptcy
RIVERSIDE, California The former CEO of Axium International, Inc., a leading Hollywood payroll services company until its 2008 collapse, was convicted late yesterday afternoon of tax evasion, conspiracy to defraud the IRS, and filing a false tax return. John Visconti, 74, of Beverly Hills, was convicted by a federal jury following a one-week trial. United States District Judge Jesus G. Bernal, who presided over Viscontis trial, set sentencing for Visconti on January 23, 2017.
Axium was one of the largest payroll services companies serving the entertainment industry, and its clients included a list of high profile studios, Fortune 500 companies, television and cable companies, and media outlets. At its height, Axiums gross revenues were well over $1 billion per year.
As the payroll services provider and employer of record for its client entities, Axium regularly submitted payroll tax returns to the IRS and to the taxing authorities of several states. In several instances, those tax returns generated refunds in six-figure dollar amounts. Axium collapsed in 2008, after revelations that its tax delinquencies exceeded $100 million and that, as a result, Axiums lender foreclosed on its bank accounts. Axiums tax delinquencies resulted in the IRS assessing a recovery penalty against Visconti of $15 million.
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The various schemes presented during the trial resulted in the diversion of millions of dollars from Axium, and Visconti reported none of the funds pocketed by him on his federal income tax returns. Visconti in several instances arranged for his cut to be paid to bank accounts held in the names of entities that Visconti controlled.
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