Chuck Bangle talks to prospective employees at an Ocean City High School job fair in February 2015. Bangle awaits trial on tax evasion charges related to his business, Manco & Manco pizza.
Lawyers for the owners of Manco & Manco pizza are asking a federal judge to exclude statements made by the defendants and to dismiss parts of the indictment against them in a multiple-count tax evasion case.
Charles and Mary Bangle, owners of Ocean City’s popular Boardwalk pizza chain, were arrested by Internal Revenue Service special agents in April 2014. They have pleaded not guilty and are awaiting trial on a 30-count indictment that alleges the Bangles did not report $981,000 in income to IRS.
A pre-trial motion filed on Friday (April 17, 2015) focuses largely on the events of May 20, 2012, when IRS special agents made an unannounced 8 a.m. visit to the Bangles' home in Somers Point.
After questioning the Bangles, the agents left the home, only to return five minutes later to confront them about their prior statements about unreported cash deposits, according to the pre-trial motion filed by Vincent P. Sarubbi (representing Charles Bangle) and Rocco S. Cipparone Jr. (representing Mary Bangle).
"During the course of the Second Interview, the Agents prominently displayed their side arms," they write. "The Agents were interrogating the Moving Defendants and using their weapons and Agent Maguire’s position blocking the front door to physically and mentally intimidate and coerce the Moving Defendants. The Agents never informed the Moving Defendants that the purpose of the interview was a criminal investigation until after the end of the second interview. At no time did the Agents inform the Moving Defendants that they had a right to an attorney."
The lawyers argue that the Bangles' Miranda and Fifth Amendment rights were denied.
They also suggest that the IRS made no effort to distinguish which statements were made by Charles Bangle and which by Mary Bangle. Instead, the evidence statements were presented as an amalgamation of what "The Bangles" said. As such, preparation of a defense is impossible, the lawyers wrote.
The pre-trial motion says the Bangles do not necessarily admit to anything in the IRS investigation, but the agents reported:
"Both BANGLE and Mary Bangle apologized for lying to the Agents earlier about taking cash from the business. They both said they were relieved that this is coming out because they have been concerned about getting caught for a long time. BANGLE stated that he wants to resolve the matter and would make an effort to pay back taxes, penalties and interest on the unreported income. The Agents reminded them that they were assisting the USAO with an official criminal investigation and they were investigating potential criminal violations and it is not a civil matter. BANGLE and Mary Bangle both said they understood and want to work with the Agents to resolve the matter."
If the Bangles were to make such a recantation just five minutes after a first interview, then a count related to making a false statement to federal agents should be dismissed, the lawyers argue.
The motion goes on to argue for the release of Grand Jury transcripts and to not consider multiple bank deposits as multiple counts in the indictment, among other requests.
The U.S. Attorney's Office will have an opportunity to reply to the motion before U.S. District Judge Robert B. Kugler makes a ruling. The response is due by April 27. A trial date will be set after the motions are complete.
The indictment against the Bangles includes five counts of income tax evasion for 2007 through 2011 and one count of making false statements to the IRS. Charles Bangle is also charged with 23 counts of structuring financial transactions to avoid reporting requirements.
“Between 2007 and 2011, Charles and Mary Bangle skimmed large sums of cash from the business,” according to a 2014 news release from the U.S. Attorney’s Office. “Charles Bangle deposited significant amounts of that cash into their personal bank account at TD Bank in amounts less than $10,000, the amount which triggers a Currency Transaction Report from financial institutions to the U.S. Department of Treasury.”
“The Bangles then used the money to pay for personal expenditures. They concealed approximately $981,000 in income from the IRS, which they had a legal obligation to report on their personal income tax returns. Had they accurately reported all their income to the IRS, the Bangles would have owed an additional $336,273.”
Manco & Manco has three locations on the Ocean City Boardwalk and another on the mainland in Somers Point. For most of the iconic chain’s 58-year history in Ocean City, visitors knew the spot as Mack & Manco. Anthony Mack and Vincent Manco founded the chain in 1956. The partnership between the two families ended and the name changed in 2011. Chuck Bangle, the son-in-law of former co-owners Frank and Kay Manco, purchased a controlling interest at that time.
Each of the 30 counts of the indictment carries a maximum potential penalty of five years in prison and a $250,000 fine.
Read the full text of the Bangle indictment.
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