3 plead guilty in NJ to tax fraud conspiracy

November 4, 2010 5:43:17 PM PDT
Three Pennsylvania residents who worked for a New Jersey-based financial services firm have pleaded guilty to conspiring to defraud the Internal Revenue Service.

Richard McFarlane of Doylestown and Paula Mariani and Patrick Potopowicz, both of Bensalem, admitted they sold financial products designed to conceal clients' assets from the government and others that falsely promised to eliminate customers' debt.

The three pleaded guilty Thursday in U.S. District Court in Newark. Each faces up to five years in prison.

All worked for Mid-Atlantic Trustees and Administrators, a business formerly located in Bayville, N.J.

Prosecutors say MATA never conducted legitimate business and its activities cost the government hundreds of thousands of dollars in tax revenue.