Bookkeeper Embezzled $744,000 Using Collection Agencies as Front

by Mike Bevel, CollectionIndustry.com

For eight years, Dominic J. Iorio ran the office at Hackensack Anesthesiology Associates, supervising the staff, keeping the books and records, making bank deposits ? oh, and from 1998 until 2001, embezzling more than $744,000. Which means that on top of his legitimate salary, Iorio was also pulling in what? An extra $90-some thousand a year?

Not bad for a 60-year-old ? except for that getting caught part.

Under a plea agreement with the government, Iorio wasn’t charged with theft. Instead, he pleaded guilty to tax evasion, for which he could face up to five years in federal prison and a $250,000 fine. He already has begun making restitution.

Iorio funneled his ill-gotten gains into his own personal bank account (which: not so smart) as well as into the accounts of fictitious collection agencies he also controlled (that?s a little bit smarter). Iorio said he concealed the scheme from the practice’s accountants, doctors and staff by crediting the embezzled accounts with other monies paid to the practice, and used the embezzled funds to pay for various personal expenses. (All of that, though, just sounds exhausting.)

Asked why Iorio wasn’t prosecuted for the embezzlement, Thomas R. Calcagni, Assistant U.S. Attorney, said the attempt to evade taxes on the ill-gotten gains “was the most readily provable offense for us, and it did come with a five-year statutory maximum, which is something we thought appropriate given the conduct.”

In his plea, Iorio admitted that he falsely declared on his 1999 tax return that he had income of $107,945 and a tax overpayment of $7,999 — when, in fact, he had failed to report an additional $200,588 and owed $72,459 in taxes. But tax season can be so hectic, it?s possible that Iorio meant all along to report his ill-gotten gains.

No, no: you?re right.

As part of the plea deal, Calcagni said Iorio agreed to make full restitution to his former employer and pay all the taxes and penalties on the illicit income.