US authorities have charged the former head of operations at a brokerage firm in Syosset, New York, with tax crimes for allegedly taking over $500,000 that he was not entitled to.

Dominick Pannitti, formerly of North Bellmore, New York, has been indicted by a grand jury following an investigation by the Internal Revenue Service and the FBI, the US Justice Department said on October 25.

The Justice Department said Pannitti was head of operations at an unnamed securities brokerage firm in Syosset, New York.  

During 2005 and 2006, Pannitti allegedly used the securities firm's automated system designed to adjust customers’ trading accounts to credit his own trading accounts hundreds of times in increments of less than $1,000.

The Justice Department said that Pannitti was not entitled to most of these credits, which totaled over $570,000.

Pannitti allegedly concealed the income he obtained from his accountant and failed to report the income on his tax returns.

The authority said Pannitti faces a potential maximum sentence of eight years in prison and a fine of up to $500,000.

A trial date has not yet been scheduled.