Ex-Niagara Falls councilman who went to prison for tax fraud to run again

Michael S. Gawel, the 66-year-old owner of the Falls-based accounting firm, Niagara Bookkeeping and Accounting Services, spent 17 months in prison following a guilty plea following accusations of tax fraud in 1995.

Gawel said he hopes voters will view him as a person and a candidate who made a mistake, has made amends and is ready to serve the best interests of the city and its residents.

"I paid my debt to society and I believe in second chances," Gawel said.

Gawel has a degree in accounting from Niagara University and has worked as a certified public accountant since 1980. He also has a law degree from the University at Buffalo. His professional resume also lists stints as chief financial officer for Perfection Vapes, Inc. in Depew, a tax manager for Liberty Tax Service and positions as business development director for J & M Enterprises in the Falls and Smokin' Joes in Sanborn.

Gawel said he believes his background in accounting and business will serve the city well come budget time. He expressed dissatisfaction with what he described as a lack of scrutiny by current council members while reviewing Mayor Robert Restaino's proposed budgets in recent years.

Budgeting for priorities like tackling crime or improving the city's housing stock is one way Gawel believes council members can play a role in restoring vitality to the Falls.

"There was no budget amendments in the last two budgets," he said. "They are not doing their jobs. If they want to effect change, they need to allocate funds or resources to that issue."

While he said crime is clearly the city's most pressing concern at this time, he said blight and the poor overall condition of the city's housing stock is a close second. He advocates for holding in-rem sales more often in an effort to return more city owned properties that have fallen behind on taxes to new owners who may be able to renovate them.

"The market is hot right now," he said. "There's vacant city-owned properties that people would be willing to buy."

While he believes the city could use an arena like the one that is included in Restaino's proposed $150 million Centennial Park project, Gawel believes, for the project to work, the city must secure support from what he views as integral private partners, including Niagara University and the Seneca Nation of Indians.

In his personal life, he is a member of the Frontier Fire Co., Knights of Columbus, Council 247 and the Fraternal Order of the Eagles No. 1411. Gawel also served as president of the Riverside Condominium Association Board of Directors from 2006 to 2016 and from 2019 to 2020 and on the board of directors for a Tobacco Free America Corp. Gawel has also been a group leader and long-time volunteer for Operation Clean Sweep in the Falls.

Gawel, a Republican, said his candidacy has been endorsed by the Niagara Falls and Niagara County Republican committees and the Conservative committees in both Niagara and Erie counties.

In 1993, the FBI indicted Gawel, who was a sitting member of the Falls city council at the time, on charges that he participated in a money-laundering scheme with an associate named Paul Kaczowski. Authorities alleged that Kaczowski, identified by the FBI as a known bookmaker, used a no-show job at a Pine Avenue business in an attempt to secure legitimate income that was intended to cover for profits earned off illegal sports gambling. Gawel was charged with preparing and filing fraudulent tax forms with the IRS and state on Kaczowski's behalf.

Gawel pleaded guilty to helping Kaczowski conceal illegal gambling profits in 1995. He was later sentenced by Judge Richard Arcara to 17 months in prison.

In an interview with the newspaper on Wednesday, Gawel said he learned a lot through the experience, which he noted involved one client whom he suggested, in hindsight, he trusted too much. Gawel stressed that he remains a professional tax preparer and, in the years since completing his prison sentence, he has continued to operate a successful private business in the Falls.

"I have filed thousands of returns with no issues," he said. "I think my clients are happy with the level of service I give to them."

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