Arizona Man Charged with Alleged $7 Million Internet Scheme and Tax Evasion

A federal grand jury in Tucson returned an 88-count indictment against Anthony Mark Boscarino, 44, of Phoenix, formerly of Tucson, on August 4, 2010. Boscarino is charged with 51 counts of wire fraud, 17 counts of money laundering, 8 counts of mail fraud, and several tax evasion and firearms charges.

The indictment alleges Boscarino used his sports handicapping Internet business, called Mike’s Lock Club, to solicit customers to invest in several fraudulent schemes.

One alleged scheme involved soliciting money from investors to give to a fictitious high limit slot machine player who made regular trips to Las Vegas to play with investor money. The indictment alleges investors wired the defendant more than $7,688,000 and that he diverted approximately $5,000,000 through various financial institutions for his own personal use.

The indictment also charges the defendant with making false statements to the Securities and Exchange Commission, which was investigating one of his schemes, and with evading paying taxes on more than $2.6 million in income in 2008 and 2009, and failing to pay $400,000 in back taxes he had agreed to pay after failing to file taxes from 1999 to 2006. He was also charged with being a convicted felon in possession of two shotguns and one pistol recovered from his Phoenix residence, and allegedly making false statements on a firearm purchase form about his lack of felony convictions when he bought two firearms from a Tucson gun dealer.

An indictment does not mean that the individual is guilty. In fact, because the indictment is granted by a grand jury that is only presented with the government’s story, there is a high likelihood that much of the allegations are not the truth. Unfortunately, the individual being indicted does not have an opportunity to present their case until trial, and has no power to prevent an indictment against themselves.

A conviction for mail fraud or wire fraud carries a maximum penalty of 20 years, and/or a fine of $250,000 or both; 10 years and/or a fine of $250,000 for money laundering; five years and/or a fine of $100,000 for failure to pay taxes and tax evasion; 10 years and/or a fine of $250,000 for possessing a firearm as a convicted felon; and five years and/or a fine of $250,000 for making false statements on a federal form required for the purchase of a firearm.

If convicted, the judge will most likely follow the U.S. Sentencing Guidelines, even though he is not required to do so. Even if Boscarino is acquitted of most of the charges against him, the judge is permitted to consider those as other bad acts, and apply them to his sentence, which is usually very detrimental to the individual.

Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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