The co-owner of a New Rochelle real estate management company wants a court to shut down the business to disentangle it from a relative’s $2.7 million tax fraud mess.
Michael J. Colasuonno petitioned Westchester Supreme Court on March 6 to dissolve 86 Drake Realty Inc.
He claims that the government might put a lien on property that 86 Drake owns to satisfy taxes owed by Philip Colasuonno.
Former accountant Philip Colasuonno pleaded guilty in 2007 to preparing false tax returns and evading taxes owed by American Armored Car Ltd., an Elmsford company that he and other family members owned.
He was sentenced to 46 months of home confinement and ordered to pay $781,467 in restitution. According to the government, he has failed to make good faith efforts to pay restitution, and as of May 2023 the tax debt had grown to $2.7 million.
The petition does not explain Michael’s familial relationship to Philip, but according to court records they have been business partners. At one time, for example, they co-owned the building at 86 Drake Ave., New Rochelle, where Philip Colasuonno & Associates is based.
In 2007, the property was transferred to 86 Drake Realty Inc., owned 50-50 by Michael and by Philip’s wife, Maria.
Now Michael, an accountant, claims that Maria has taken control of 86 Drake Realty Inc., opening a bank account with herself as the sole signatory and transferring corporate funds into the account.
She collects rents and leases the building, according to the petition, while Philip’s business pays less than fair market rent.
Michael says Maria has rejected his requests for bank statements and corporate records.
Maria has “stunted the growth of the corporation” he claims, “to promote her own best interests and those of her husband.”
He argues that Maria is deferring to Philip to prevent her interest in the corporation from being used to pay his debts.
Michael is asking the court to dissolve 86 Drake Realty Inc. and appoint a receiver.
Meanwhile, the government’s 17-year-effort to collect taxes from Philip continues.
The U.S. Attorney’s Office filed a civil case in 2021 to convert the tax assessment to a court judgment.
There is no genuine dispute, assistant federal prosecutor Dana Walsh Kumar argued in a motion for summary judgment filed this past November. He pleaded guilty to tax fraud.
But Philip’s attorney, Erin K. Flynn, stated in a March 7 filing that the motion should be denied.
“There are disputes as to whether the government has collected this debt from another defendant in this criminal action,” she said, “whether the government relieved Mr. Colasuonno of liability … and whether the collection is fair.”