Canada Revenue Agency

Canada Revenue Agency

March 19, 2008 16:51 ET

Canada Revenue Agency: Adult Entertainment Operator Jailed for Tax Fraud

NEWMARKET, ONTARIO--(Marketwire - March 19, 2008) - Riccardo Di Giuseppe, of Vaughan, was sentenced today to six years in jail and fined $2 million. Di Giuseppe was found guilty in the Ontario Court of Justice, under the Criminal Code on August 27, 2007, of one count of fraud over $5,000.

"Tax evasion takes money away from the services that benefit all Canadians," said William V. Baker, Commissioner of the Canada Revenue Agency (CRA). "The CRA takes action against those who try to avoid paying what they owe."

The court determined that Di Giuseppe controlled Bunnies and Fantasia, two adult entertainment clubs that were located in Markham and Richmond Hill.

A CRA investigation determined Di Giuseppe concealed and diverted significant amounts of revenue in order to evade paying $3,492,415 in GST and income tax during the period from 1996 to 1999. The accounting records and other documents obtained during the investigation, including the testimony of former employees, assisted in determining the amount of taxes that were evaded.

Individuals convicted of Criminal Code offences of fraud face a maximum jail term of 10 years.

The information in this news release was obtained from the court records.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra-arc.gc.ca/convictions

Contact Information

  • Canada Revenue Agency
    Peter Delis
    416-512-4135