Another expert takedown by the anonymous Redditor, incorruptible_bk. Visit the NXIVM Case subreddit for more.

TL;DR: Nope

Longer story: In 2015, Parlato was charged with wire and mail fraud in an alleged tax avoidance scheme centering on his management of the One Niagara building, a tourist center near Niagara Falls. Yesterday, Parlato agreed to a plea deal for the lesser charge of failing to file a mandatory form (IRS 8300) after collecting rent from vendors of One Niagara. The 8300 form is required for cash transactions above $10,000.

Since word of the deal came out yesterday, Parlato has started testing the waters to see how he can spin things. To read Frank Report today, it appears he would like his public to believe that he “only” got busted on a technical infraction akin to removing the tag from your mattress, and this is supposedly the only thing the Feds could prove.

That is not truthful.

First and foremost, the IRS 8300-related charge Parlato plead guilty to is basic sounding but serious felony charge with a 5-year maximum imprisonment. It is only “simple” in the sense that it is easily proven; and along with other “check the box” tax offenses (concerning foreign and crypto assets), it’s that way by design.

As for the old fraud charges, are they (as Parlato insists) “dropped?” No, not yet.

The last superseding indictment against Parlato stays active until he is sentenced. It is only after the sentencing that the government makes a motion to dismiss. If the Feds believe Parlato has screwed up before then, or they suddenly find new evidence, they are free to revive the old charges. Parlato, on the other hand, cannot undo his guilty plea.

Even on track for dismissal, the fraud charges could have an afterlife.

While limited to a sentencing of only the 5 years of the IRS 8300-related charge, the Feds can cite the fraud as a reason to give Parlato the max. They need only prove this wrongdoing by the preponderance of evidence for it to be considered by the judge.