CAMDEN, N.J. Dominick Paglione, former president and CEO of the former Lion Trailways of New Jersey and Pennsylvania, has admitted in court he falsified federal tax records for six years to avoid paying at least $440,000 in payroll taxes.

The admission came when Paglione pled guilty to a single charge of falsifying an Employer's Quarterly Federal Tax Return (Form 941) for the fourth quarter of 2003.

During that quarter, Paglione reported to the IRS that employee wages subject to withholding taxes totaled $247,381, and the employment taxes due were $75,569.

However, the actual employee wages subject to withholding were $494,284, which translated into $113,345 in taxes due the Internal Revenue Service. In other words, Paglione underreported wages by $246,903 and taxes by $37,776 for the quarter.

Additionally, Paglione admitted that between March 2001 and March 2006, he signed off on 14 additional false quarterly federal tax returns, resulting in a total tax loss to the IRS of more than $400,000.

The charge of subscribing to a false Employers Quarterly Federal Tax Return carries a statutory maximum sentence of three years in prison and a fine of $250,000.

U.S. Attorney Christopher J. Christie pointed out that parole has been abolished in the federal system and defendants who are given prison terms must serve nearly all of the time to which they are sentenced.

Paglione, 51, who is free on $50,000 bond, will be sentenced by U.S. District Court Judge Joseph E. Irenas on Jan. 25.

The tour and charter bus company that Palione headed has been in business nearly 30 years. It has a fleet of motorcoaches, and midsize and small buses.

Besides tours, it also provides scheduled and casino service in New Jersey and Pennsylvania from its operational facilities in Rio Grande, N.J., and Levittown, Pa.

Lion's affiliation with the Trailways Transportation System had been suspended but with new management and ownership the company is requesting approval to again affiliate with Trailways.

"After an extensive review process, the 'new' Lion meets Trailways' motorcoach operational requirements for membership affiliation," said Gale Ellsworth, president and CEO of Trailways.

"The call for an acceptance vote will soon be distributed to our board for Lion to rejoin Team Trailways . . .," she added.

Until that happens, Lion is not a member of Trailways.