Carl Carro, previously arrested for operating a multi-million dollar Ponzi scheme,
Now charged with tax evasion for evading over $75,000 in taxes

NEW YORK – New York Attorney General Letitia James and Acting Commissioner of the New York State Department of Taxation and Finance Amanda Hiller announced the arrest and indictment of Carl Carro (60) of Walton, NY, for failing to pay over $75,000 in New York State taxes. over the past six years. Carro – who was once arrested for mining a multi-million dollar Ponzi scheme – is now charged with failing to file tax returns from 2017 to 2019 and filing a false tax return in 2020, following his arrest on the previous charges. Between 2012 and 2020, Carro allegedly defrauded investors tens of millions of dollars through a scheme involving false promises of prospect interviews and investment opportunities. Instead of investing funds, he reportedly diverted them for personal expenses, including paying credit card bills, pet expenses, and more. Carro was accused of failing to report as income the millions of dollars he had fraudulently solicited from unsuspecting investors.

“When businesses and individuals cheat our tax system, it deprives communities of public funds for vital services and programs,” said Attorney General James. “Not only did Carl Carro allegedly cheat millions of dollars from investors, but he also deceived and robbed our state to cover up his crime. Fraud of any kind is never acceptable, and my office will continue to ensure that those who steal from our communities are held accountable to the fullest extent of the law.

“The tax crimes alleged in this case show a flagrant disregard for our tax laws and for all New Yorkers who depend on the vital services and programs these taxes fund,” said Acting Commissioner Hiller. “We will continue to work with Attorney General Letitia James, her office and all levels of law enforcement to root out all forms of tax evasion.”

A joint investigation by the Office of the Attorney General (OAG) and the Department of Taxation and Finance (DTF) revealed that Carro had failed to declare the taxable income he had earned during the Ponzi scheme he would have exploited. While the new charges reflect crimes committed from 2015 to 2020, a DTF audit found Carro underreported his income by more than $2 million and failed to pay more than $100,000 in taxes owed. in New York State since at least 2012.

In January 2021, Carro was indicted for his role in a Ponzi scheme that defrauded more than 50 investors in New York and across the country out of millions of dollars. As alleged in the previous complaint, Carro and his co-defendant James Doyle posed as directors of headhunting companies, Endeavor Management Solutions and Endeavor Consultancy. The two individuals allegedly lured victims with false promises of interviews for board positions and offered bogus investment opportunities in their business with guaranteed profits. However, instead of investing the funds, they used the investors’ funds for personal expenses and to reimburse previously defrauded investors. The two individuals allegedly spent nearly $600,000 on cash withdrawals, more than $200,000 paying credit card bills, squandered nearly $120,000 on pet expenses, and spent more than $350,000 on pay previously defrauded investors.

Carro is charged with multiple counts of third degree criminal tax evasion (Class D felony), fourth degree criminal tax evasion (Class E felony), offering a false instrument of deposit in the first degree (Class E felony), and Repeated failure to file personal income tax returns (Class E felony). If convicted, Carro faces up to 10 to 20 years in state prison.

Carro, who was previously out on bail in the securities fraud case, was brought before the Honorable Andrew Z. Skrobanski in the Village of Sidney, acting as Walton Town Judge, and was remanded in custody pending a bail hearing. If convicted on all counts, Carro faces up to 10 to 20 years in state prison.

The charges against the accused are allegations and he is presumed innocent until proven guilty.

The MPC would like to thank the Criminal Investigations Division of the DTF for their invaluable assistance in this investigation.

This case is being prosecuted by Assistant Attorneys General Philip V. Apruzzese and Maureen L. Grosdidier, with the assistance of legal support analyst Jamirah Williams-Johnson, under the supervision of supervising analyst Paul Strocko and analyst assistant supervisor Jayleen Garcia. The forensic accounting was conducted by Principal Investigator Meaghan E. Scotellaro, under the supervision of Chief Auditor Kristen Fabbri and Deputy Chief Auditor Sandy Bizzarro of the Forensic Audit Section. The OAG’s Law Enforcement and Financial Crimes Bureau is headed by Bureau Chief Stephanie Swenton and Deputy Bureau Chief Joseph G. D’Arrigo.

The criminal investigation was led by Detective Supervisor Mitchell J. Paurowski, Detectives Dennis Churns and Timothy R. Sicko, and Acting General Manager Samuel Scotellaro, under the supervision of Deputy Chief and Acting Commanding Officer Edward Carrasco of the ‘Major Investigations Unit. The Bureau of Investigations is headed by Chief Investigator Oliver Pu-Folkes and First Deputy Chief John Reidy. The Bureau of Criminal Enforcement and Financial Crimes and the Bureau of Investigations are both part of the Criminal Justice Division, which is headed by Chief Deputy Attorney General José Maldonado and overseen by Senior Deputy Attorney General Jennifer Levy.