Rapper Fat Joe Cops Guilty Plea to Tax Charges

Alicia Cruz 
The Black Urban Times

Hip-hop artist, Fat Joe, pleaded guilty in Newark federal court today to two counts of failure to file tax returns.

In a press release issued today, U.S. Attorney Paul J. Fishman said the rapper was initially charged under a four-count indictment accusing him of willfully withholding payments from the Internal Revenue Service beginning in 2007.
Fat Joe, born Joseph Cartagena in New York City, appeared before U.S. Magistrate Judge Cathy L. Waldor to plead to Counts One and Two of a four-count indictment that charged Cartagena with failing to file returns for tax years 2007 to 2010. Those two counts correlate to tax years 2007 and 2008.

 Under the terms of a plea agreement, however, the tax loss for all four years, including 2009 and 2010, will be taken into account at sentencing, which Judge Waldor scheduled for April 3, 2013.

Court documents show that income Cartagena earned from performances and royalties on his music sales came from three different sources: Terror Squad Production Inc., Miramar Music Touring Inc., and FJTS Corporation.

The 42-year-old "Lean Back" artist owned Terror Squad and Miramar, both of which are corporations based in Somerville, New Jersey.

In open court, Cartagena admitted to having grossed more than $2 million during tax years 2007 and 2008. He further admitted that during tax years 2009 and 2010 he received more than $300,000 and $600,000, respectively.

In all, the federal government suffered a tax loss of approximately $718,038.00.

Cartagena, who now lives in Miami Beach, was released on $250,000 bail pending sentencing where he could receive a maximum of two years in prison, a $200,000 fine and court costs. Cartagena has agreed to file true and accurate tax returns and to pay to the IRS all taxes and penalties owed.

 Fishman credited special agents with IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to Cartagena's guilty plea.

Assistant U.S. Attorney Joseph Mack of the U.S. Attorney’s Healthcare and Government Fraud Unit prosecuted the case. Jeffrey Lichtman, of New York served as counsel for the defense.

Cartagena, who is of Cuban and Puerto Rican descent, was a member of hip-hop groups, D.I.T.C. and Terror Squad.

The Boricua sensation released his first album "Represent," in 1993 and the single, "Flow Joe"climbed to the top of the Billboard charts the same year. Cartagena's career took off from there.

The South Bronx native scored a major hit with "Lean Back," a duet with fellow rapper, Remy Ma, during the summer of 2004. In addition to his music career, Cartagena delved in several business ventures, which included launching his own clothing label, "FJ560", in 1997; a Bronx clothing store called, "Fat Joe’s Halftime: Phat Hip Hop Gear", and a barber shop.

In 2009, Cartagena found himself facing accusations that he stole money from the very rapper he credited for inspiring him to go into the rap industry, Big Pun.

Cartagena fought back and vehemently denied the allegations, which were made by Big Pun's widow, Liza Rios. He addressed the issue by appearing on the air with New York City's Hot 97 radio station saying he actually gave Mrs. Rios money and tried to help her after her husband died in February 2000 of respiratory failure and a massive heart attack while in White Plains, New York.