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DISTRICTATTORNEY_ NEW YORK COI..INTY
NEWSRELEASE
April 11,2007
Contact:JenniferKushner
2t2-335-9400
ManhattanDistrict Attorney RobertM. Morganthauannouncedtoday the
recoveryof $3 milliorr in tax payments,interestand penaltiesfrom thrreecompaniesand
two individualsassociated
withpopularsingerMarcAnthofly;criminal finesof $180,000
will alsobe paid. The threecompaniesandtwo of their managershave alsopleaded
gurltyto tax crimes.
Marc Anthony (whosereal nameis Marco fuitonio Muniz) contolled the three
companiesthat representedvariousparts of his entertainmentbusiness;
r
ARI ENTERPRISES,LTD. ('AR["), is Anthony's roruing company;
o BOLERO RECORDS,LTD" ("BOLERO"), is Anthony's music
prrblishingcompany;and
.
Marc Anthony Produotions,Inc. ("MAp"), is Anthony's management
company.
The investigationdisclosedthat all tfuee companiesfailed to file New York State
and City corporatetil( returnsand pay their respectivstax liabilities. Specifically,ARI
and BOLERO failed to file New York Stateand City oorporatetax retums and pay taxes
for the tax yearsfrom 2001 through2004. MAP also failed to file for some of those
years and, for the years it did file, MAP farled to report all of its taxable income. In
addition,Marc Anthony failed to file tus personalNew York personalincome talr rerwns
for the tax years 2000 through 2004. For the years in question, the companiesand
Arthony failedto pay til(es on a total of $15.5million of ta"rableincome.
ARI ENTERPRISES,LTD. and BOLERO RECORDS,LTD., eachhas pleaded
guilty to two misdemeanortax offensesfor failure to file their 2003 New York City
general co{poratetax and their 2003 New York State corporate fra:rchise tax return,
Thesepleaswere enteredon April 5,2007 andsentencing
is scheduledfor Jwrc7, 2O07.
As part of a plea agreement,Anthony andMAP wrll not be prosecuted,provided
that Anthony pays a total of $2.5 million in back taxes, interestand penalties. The
paymentis in satisfactionof corporatetax ou'ed by all three conrpaniesand personal
incometax owed by Anthony.
In additionto the misdemeanorpleasby two of Aathony's three companies,two
with the companieshavealsopleadedguiltwr^ tax felonies.
individualsassociated
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BIGRAI\rI ZAYES, Anthony's brother, actedas the companies'generalmanager
from 2000 to early 2Q03, ZAYES failed to file federal and state personal irrcome ta:r
rehtms for the years 2000 through 2004 and did not pay ta:<eson approximately $2.4
million of taxableincome. On April 10,2007,ZAYES pleadedguilty to a classE tar<law
felony f,orhis failure to file andrerrritappropnatetaxes. He will be sentencedon June 12,
2007, to a conditional dischargeupon his payment of approximately$400,000 in back
New York State and City taxes, interest and penaltiesras well as a criminal fine of
$50,000;he must also file federalreturnsprior to sentence.
PHILIP SARNA, an accountant,was the businessmanage[for Anthony and his
threecompanies, SARNA failed to frle federaland statepersonalincome ta:<returns for
?002, 2003, and 2004, and failed to pay tD( on approximately $300,000 of taxable
income. He also failed to file tns 2002,2003 and 2004 New York City rurincorporated
businessta:r retums. SARNA pleadedguilty to a classE ta:cfelony today. He will be
sentencedon Jrure 13, 2007, to a conditional discharge upon his payment of
approximatelyS43,000in back New York Statepersonalincometo< and New York City
unincorporatedbusinesstaJces,interest and penalties. SARNA will also pay a criminal
fine of $50,000andhe must alsofile federalretumsprior to sentence.
Tax law section 1802(a)(Repeatedfailure to file; personalincome and earnings
taxes)is a classE felony, purushableby up to four yearsin stateprison. Tax Law section
l80l(b) (Failwe to file) and New York City Adminishative Code section L1-4002
(Failue to file) areboth misdemeanors
punishableby up to oneyearin jail.
For their participationin the investigation,Mr. Morgenthauthankedthe New
York StateDepartmentof Taxation andFinance,andActing CommissionerBarbaraG.
Billet, DeputyCommissionerWilliaxnJ. Comiskey,AssistantDeputy Comrnissioner
PeterP. Farrell,Revelps CrimesDirectorBruceK. Kato, Tax Audit AdminjstratorChief
Auditor Tommy Chan,Chief Auditor NicholasCapkovicandAuditor
Alan Maier.
Mr. Morgenthaualso thankedthe New York City Departmentof Finartce,and
Commissioner
Maf,thaStark,AssistantCommissiorer,Tax EnforcementCarltonT.
Bultsr, Director of Enforcement,Oflice of Tax EnforcementMaueen Kokeas,Manager
CrirninalTax Audit Robert Stahl,and Audit Group Chief Michael Schenk.
Mr. Morganthaualsothankedthe New York City Police Departmentand
Commissioner
RaymondKelly arrdDishict Attomey SquadCommanderCaptainJoseph
Finn,Sgt.GiovanniPorcelliarrdDetectiveRobenMishetta.
The casewas handledby AssistantDistict Attomey Gilda L Mariani, Chief of the
Money Launderingand Tax CrimesUnit.
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Defendant lnformetion:
LTD.
ARIENTERPRISES,
c/o GuggenheimParhers
135E. 57thSheet
New Yorh Nl-Y10022
LTD.
BOLERO
RECORDS,
Partners
cioGuggenheim
Street
135E. 57rn
York,IIY
10022
New
lnc.
MarcAnthonyProductions,
Partners
c/o Guggenheim
135E. 57rnStreet
NewYork, I.ry 10022
BIGRAMZAYES (49)
NewYork,I\ry10016
PHILIPSARNA(43)
vvooooury,New yel1all /9'l
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DISTRFCTATTORNEY
I OP TEtr
COUNTIYOF NEW XORK
PLACE
ONENOGAITI
Newf,or|roN.Y. 10013
qrq33s+ooo
I
ROBENTM- MORGEI{TUAU
DiskictAnomey
April3,20trl
Baftan T, Kaplan,Esq.
Traurig,LLP
G'reenbcrg
200Pak Avgnuc38e Ftoor
New York lS( 10165
Re: Ari Enterprises, [jtd., Bolero Rcco$s, Lt4, l.4art
anthonv hoctuctims.,[lg"- and Marco Arnonio MWiz
Deartvts.Ifuphn:
TIG lefier sas forth thc tcrus of a plf agrecrncnt(.furconr,nf) botweendte New YortcCmnry
Ld. (*Ad"), Bolerc Recorrds,
Distict Attorrney'sOfrcc (this Officd) md lyour cliant' ri Erdeqpdses,
Ltd. (?olao"I lvtmcAathony hoducUoDs,hrF-(-MAI-), urd N{arcoAntonio Mruriz m\4ut[/?.
Thel+.ns ofbcAsecsreot qc ss foflbrrrs;
-i
hcrs of Guifty
.l
l, An- welving prbecctrtionby Infd,rmatiorqpwsuaotto Ctiminal Frocedrue Lew St70-65(3),
rnd corrscntingo be prosccuiedby misdeo{auu camplarntqgreesto plcrd ptlty to rwo mMeoeanor
ofiqres: a) ote counrof Tax Law $l80lQ) Sailure o fitc arcturn or r€por,r.-,) releting ro ib 2003Nel,l
York Stc corporntef'aucbise tax retrrD and b) cnc countof New York City Adminiftmive Code 011a0@ (Failwe to 6le r rEturqor rcporr...,) rHuing to its 2003New York C)ty gcocral corporatioatax
rei'.rn I Art Srsqgh oormscLwlll sfuitto fti a[egdions in theni3demeauorcogrplcirt
pursurntto Cdminsl hocedrxe Lar $ 170.65(3),
complair4 ryroes rc plcad grn1ryto lwo rpisdeme{pr
e) mr countof Tax Law $ltOl(b) (Faifurero filc e rctutr o{ Fpoyt - -_)rEIJtiAgto its 2003New
orEicrrses:
York StatecorporateAanchiset&x retum an{ U) onc cor6t of Nc'n York City Administafive Codc gl l4002 (Failureto file a rdurD or repo<l.. .) ftlat'urf to ib 2003 New tofl6 Ciry general corponriofl ar
nmrm" Bolcro,throughcounsel will dmit to jfle alqglthns iu Orcnris&rnegnoxcooplaim.
I
3. Thcseplccs of guilty are rn full {nisfactioo of an irvastigili@ relati4t to a) Ari and Bolcro's
failrre to file tcir 2001 trougi 20M Nenr {oft Statecorporatcfreaa6* ra)(rot:rns andNan Yorft City
gorerll corponrionux renuDs;b) IMAP's fiflrrB o frle js 2002Qrcugh 20O4New Yod( S@ oorporip
fracbisc rac r€urns and 2001 ilrtnigfi 200a pew York Crty Fncrdl corporal€tar rehrms; ald c) Mudz's
guilry alsocsvo
ftilure to Oc his 2000 fuough 200aNq'v Yc*k personalincornetE( rptums- ilro plas
"f
2 Bolqo, waiviog prosccudsn [y
aod conscndng b be prosecr.dedby
I
i
I
' Thcduecycar$ahrtoof limit rionsforttse cr{mes,prrrruanttoCtiornal hocedrm Law 510.10(3)(d), \es bocr
tollodto rrurcl:. 200i.
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DIS TRICT
BarbuaT-Ituplar,,Esq-
A TTORN EY COUNTY OF NEW YORK
-?.
Aprill,2007
auy dirrcpancics on MAP's filed 2!0O
fOOt Ncw Yo*. Starecorpcrae facbi<e rar(Icfurtrs rud the
"ua
axxituflL
2000NorvYoA Clty poorrl corporailion
!
4. ,hovided &at rhere is futl cooqlfucc witr all of drc conditionsof tis Agracrocnt lvlAp atrd
M'rni- will not be criminally prorccrfed by thi,sOfftce. This Agrees€nl no( to prcsegrrlalvL{p and Muniz
isbindirrg on thir Ofice qnly, eod norupe aril o0ra local, slateq fede,ralprosccutor'soffice.
Seqicnce
5. Ari acloowledtae Oat 6c Pcoplf will repommeoAaod Ari ry1ccsro
tbc follqwiqg
^wg\I-aw
seqtcrrDe:
a) a conditiooaldisclurye;b) p"ynqit of $20,000crirninrl fn", prsuant ro Tq
01900(c)oq
the To< Law charge,on the datcof satene; O)plyprru o{r 520,000crininal finc, pursrnnt to Ncw yqk
City Adrnitisuaive Code 9t 119911"1oo thc [Ncw yonk crry A&dnistativc codc cbargc,o rtc do of
sentrnce;ard d) ary qmcdarorysrqchwga dr{tha cou{ mry imposcpunuantto Paral I-arv f6O3S(l )6. Bolcro acknowlcdgrsthat the P14il. rryill reconncntl, and Eolcro agrees to acocp( tbe
a) a cuditional drscbageib)gzymenrof $20,000crirninaltr'*, prts,ru loTALarlt
followilg sentgnce:
SlBMc) on &c Ta.xkw chrge, onttc dan of santaocc;c) peprwt of a $20090 crfuig fine, pursnnr ro
New Yorrt Clty Adninisu-aivoCodc $1I-4001(c)m the New York City adnioisqetivc Codecharyg on
the drp of scutcncc;dtd d) ary manrtrnorysrirsbarges
thd tlre conl gray inpor plrsuart to p€nrl-Lilr
$60.35(l).
i
7. An arrdBolero agleeto execute
naivcr sf their dght to appealfr,omrhcir respoctive
"l*i*,odsuilg esserfoilh in paragrrphsI ad 2, ere+
cqrvictions reurlting fom their rcspactiraptcir
i
Addtfiud Conditions
.i
8. As a cmdilion dthis ageacd, Fp m letorc Mry 31, Z}O'1,\vhruzagreesto arange for the
Peymat of his Nar York pxsmal incometai liabilt). ad Ari, Bolcro and )"{AP's New Yqk Str.b and
Ncw York City corporaretarc liabilidcs forlthe tet years 2000 lbough 2003, W cherfrs in a fgrm
acceptableto tbe New yqd( SlEc Deprrt+enl oI Taxalio'rrand Fin$ce rnd the New Yo* City
Dcptnoat of Finanoo. Thc aggt€Sateunpaidtax liability on apgroximately$I5.5 rnflllon of tqable
hcome is appmrimaiely $2.5 mr'Uiqr (whiphiincludcsrex. rccrucd inErest tbroug! May 3t,2OO7 ioi
pcnaltia)i
9. As e frrrdrerconditiqr of dris fur{rgleDq oD or befort May 3 t, zml , Mwizagrces to a) file
psy lDy co{Pora|e1axlinbillv for 2004(rnctudiriUeccnrcdinrerestthm$r lvlay3l , 7007 anCafl epplicdle
penalties);eodb) 6lc hit 20A4New York pcrs4mlincotle tax rorro and ro pay any ta{ lilbiD?y (ncluding
sccruedineret flrrot4b lvlty 31,2A07 sndappficablepepattics).llc f.udrcr agrc€sro make his besrofioits
to tiocp fle dl fttrrre pcrscral rud
rEfifDs, a reqqred by law.
10. As a fiqftq cqndhisnoffiis
Muoiz agreesto sign all sivil agrecsuCItrrcquirod by
Itrc Ncw Yok Sras Dcprru?Dr of Tncationrird FioanceandrbeNow Yrt City DzFrtmcm of Finance
wi6 rtspect to thc pcrsoud md corpcnzl€tai tialitities nferellce.din paragrryh 8 of this AgreerneotEli*f as providedin sucbdocr.qrent+tbis Ag/pcmeutin no rqmoarbindsrbeNEr,vYczk StarcDeprirtuenr
of f*uiou
and Finauce cr lhe Ncw Ysrk City gcp<tocra o,fFirnnce fiom corrting crut its rEspcctir. at"s
nnd rtspursrailitics, Acludiqg scEking fulI pa{meat of frry uqaid a< liabili$cs d',r arrd oving by &t
Eolcro,lvlA?eudMuoiz
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D IS T R IC T A T T OR NFY
Parbra T" Krylm, Esq.
|
COUNTY OF NEW YORK
-:-
Apttl1,20o7
I
$encret Terms
I
I I. No sdditiotnl promisesor conditiins havcbecrrenterodinb o(hq thao rlosc sct for6 abo.,r,
aldnonc will beerrerodirrto unlessi" .r-itin5 pd tip, ty alt prrics.
yo* clicm, it is reguescddrt yol aoat€aEhof thernsip
If fre forcgoingis acocptrbleb you
"tia
asddatethis lctterbcloq
II
AssislarrtDisaict AnDmt:l^
Clrl4, Moncy l.sundodqg & Tax
CrimcsUqit
I havereadtln foaogoirrgtfinsad moilirioos,I
agEb
Biktli
n rl
'/
o * * W 7 .^
l'
l.td ed lvlarc,lnthoqy FroduCmr Ine.
By; keddalL lvlarooArloio Mrniz
I hve read the forcgoiqg tcrms and
and bavc firlly rzglainod them o my clicrts-
f,aoo7
MaifilA^,.L
v
BarbraT.
Esc.
Cor.$cl ftn Ari EnteprisesLtd,.Boloo
IlL,
I\4arc Are@y
R*ord+
hodrrtions,
Mnoiz
Inc. ad
lvlaeo
Autmio