Former E.C. library director agrees to guilty plea in tax case
By Teresa Auch Schultz Post-Tribune correspondent August 2, 2013 4:22PM
Manny Montalvo in 2008. | File Photo~Sun-Times Media
Updated: September 4, 2013 6:13AM
The former director of the East Chicago Public Library is admitting he lied when he claimed on his 2009 federal income tax return that he had more than $40,000 worth of unreimbursed medical and work costs.
Manual “Manny” Montalvo, 38, now faces up to three years in prison in exchange for pleading guilty to one count of lying on his taxes, according to a plea agreement filed Friday in the U.S. District Court in Hammond.
Montalvo was charged in October after federal attorneys claimed he took credits on his federal taxes for costs that had actually been reimbursed by the library and for medical costs he never incurred.
Montalvo admits in the agreement that he claimed $23,282 in unreimbursed business expenses in 2009 when the library actually paid him back for all costs. He also wrongly claimed $17,063 in medical expenses, which he now admits was also a lie.
As part of the agreement, federal attorneys will not press charges against his wife, Estela Montalvo, for any tax violation in 2009 and 2010.
The agreement does not say how much the actual tax loss to the IRS, which handles its own debt collections, was but says that it was between $5,000 to $12,500 for sentencing purposes.
This is not Montalvo’s first run-in with the law. He was convicted in 2010 of battery against two South Shore commuter railroad police officers and had to serve a year of court supervision and 40 hours of community service. He was fired from the library in 2011.
A change of plea hearing had not been scheduled as of Friday afternoon.