May 21—A Walton man previously arrested for operating a multi-million dollar Ponzi scheme was arrested Thursday, May 19, by State Police and charged with failing to file and pay state income taxes.

New York Attorney General Letitia James and state Department of Taxation and Finance Acting Commissioner Amanda Hiller announced the arrest and arraignment of Carl R. Carro, 60, for allegedly failing to pay more than $75,000 in state taxes over the past six years. Carro was charged with failing to file income taxes from 2017 through 2019 and for filing a false income tax return in 2020, following his arrest on the prior charges, a media release said.

Between 2012 and 2020, Carro and his co-defendant James Doyle allegedly defrauded more than 50 investors in New York and across the nation out of millions of dollars, the release said. Carro and Doyle pretended to be managers of headhunting companies, Endeavor Management Solutions and Endeavor Consultancy. The two allegedly lured victims with false promises of interviews for board positions and offered fake investment opportunities in their firm with guaranteed profit returns. However, instead of investing the funds, they used investors' funds for personal expenses and to pay back previously defrauded investors, the release said. Carro was charged for his failure to report the millions of dollars that he fraudulently solicited from unsuspecting investors as income.

"When businesses and individuals defraud our tax system, it deprives communities of public funds for vital services and programs," James said in a statement. "Not only did Carl Carro allegedly cheat investors out of millions of dollars, he also deceived and stole from our state to conceal his crime. Fraud of any kind is never acceptable, and my office will continue to ensure those who steal from our communities will be held accountable to the fullest extent of the law."

A joint investigation by the Office of the Attorney General and the Department of Taxation and Finance revealed that Carro failed to report taxable income he earned during the course of the Ponzi scheme he allegedly operated, the release said. While the new charges reflect crimes committed from 2015 through 2020, a DTF audit found that Carro underreported his income by more than $2 million and failed to pay more than $100,000 in taxes owed to the state since at least 2012.

Carro is charged with first-degree offering a false instrument for filing, a class E felony, fourth-degree criminal tax fraud, a class E felony, three counts third-degree criminal tax fraud, a class D felony, and three counts failure to file income tax, a class E felony, the release said. If convicted, Carro faces up to 10 to 20 years in state prison.

Carro, who was previously out on bail in the securities fraud case, was arraigned in the village of Sidney court and was remanded pending a bail hearing.