Tuesday, June 25, 2013

Fat Joe Sentenced On Tax Evasion

Fat-Joe-122012

NEWARK — Rap star “Fat Joe” was sentenced today to four months in prison for failing to pay taxes on more than $2 million of income in 2007 and 2008.
Joe Cartagena, whose hits including “What’s Luv,” earned him millions, admitted in December to failing to file a tax return in 2007 and 2008.
He earned nearly $2.46 million during that time period, he told to U.S. Magistrate Judge Cathy Waldor.
But this wasn’t a case of malice or of the privileged looking to cut corners, said Jeffrey Lichtman, Cartagena’s attorney.
Rather it was a story of a financially illiterate man led astray by wayward accountants.
“He was badly served by his accountants,” Lichtman said after the sentencing.
“He’s not a sophisticated financial guy.”
Cartagena, 42, has already paid more than $700,000 to the federal government to make restitution.
He owes another $1.6 million, his attorney said.
Cartagena earned millions from his musical performances as well as royalties on his music.
Cartagena left the courtroom without speaking to the press.
The Tenafly resident is the second New Jersey recording star to be sentenced for tax fraud in the last few months.
In May, Lauryn Hill was sentenced to three months in federal prison for failing to pay taxes on millions of dollars in income, Hill handed over more than $970,000 in back taxes and penalties to the federal government and the state of New Jersey.
Lichtman said he wondered why Hill received less time than his client, even though she owed more money and showed less contrition during her federal sentencing.
Lichtman suggested that Waldor was sending a message and making an unfair example of Cartagena because of Hill’s light sentence.
“There is no other explanation for what happened today,” he said.
Waldor also sentenced Cartagena to one year of supervised release and fined him $15,000.

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