Clearwater man convicted in $60 million tax fraud conspiracy
Article published on Wednesday, May 28, 2008
CLEARWATER – A Clearwater man and five other men have been convicted by a federal jury of a nationwide $60 million tax fraud conspiracy.
Edward Bartoli, 78, of Clearwater and five others from across the country were convicted for a nearly decade-long scheme to market and sell sham domestic and foreign trusts through The Aegis Company, now defunct and formerly based in Palos Hills, Ill., to some 640 wealthy taxpayer clients throughout the United States, according to a press release from United States Attorney Patrick Fitzgerald from Illinois.
The defendants diverted income from businesses into sham trusts for clients and hid hundreds of millions of dollars in income for them, Fitzpatrick wrote.
Bartoli is a former attorney who helped found Aegis and was the legal director and a principal in the company, according to the press release.
The defendants were indicted in 2004 and were convicted in May after an 11-week trial before U.S. District Judge Charles Norgle in Chicago. Bartoli and the other defendants were each found guilty of one count of tax fraud conspiracy, tax fraud regarding their own individual tax returns for 1997 through 2000, and additional charges. Bartoli is free on bond but still faces an allegation seeking forfeiture of several million dollars in illegal proceeds.
Each count of tax fraud conspiracy, tax evasion, mail fraud and wire fraud carries a maximum penalty of five years in prison and a $250,000 fine, except Bartoli and two other defendants each face a maximum of 20 years in prison on one of the mail fraud counts. Each count of filing a false tax return or aiding and assisting the preparation and filing of a false tax return carries a maximum penalty of three years in prison and a $250,000 fine. There could also be further fines.
The other defendants are Michael Vallone, 48, of Orland Park, Ill.; Robert Hopper, 62, of Gadsden, Ala.; Timothy Dunn, 48, of Chesterton, Ind.; William Cover, 72, of Naperville, Ill.; and Michael Dowd, 34, of Glenview, Ill.
Sentencing is scheduled for August and September 2008.
Article published on Wednesday, May 28, 2008
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