Court records filed in May show federal prosecutors charged Anson with “conspiracy to defraud the United States” in an alleged scheme that resulted in a tax loss to the U.S. Treasury of approximately $9 million.
Anson recently pleaded guilty to the federal charges.
]]>According to one news report, before being sentenced on Monday, Cohn told Los Angeles U.S. District Judge Philip Gutierrez: "I wish I could erase all the bad things I did. No amount of apologies can correct or take away the pain I caused others. I will work hard to pay back the victims I have harmed."
Cohn, who now resides in Arizona, was charged with conspiracy and wire fraud last October. He pleaded guilty to the charges and faced a maximum of 10 years in federal prison.
Several victims spoke at Monday's sentencing hearing, describing how Cohn had ruined their financial lives, and urged the Court to impose a ten year maximum sentence.
Instead, Judge Gutierrez gave Cohn five years probation, two years home detention and ordered him to perform 2,500 hours of community service. He was also ordered to attend mental health and substance abuse counseling, and pay $23 million in restitution to victims. However, prosecutors have acknowledged in court filings that in light of existing judgments against Cohn totaling at least $100 million, the Four Star executive is unlikely to "substantially" pay the restitution.
]]>According to the sentencing recommendation, Four Star executives Jack Garrett and Ronald Anson have also pleaded guilty to federal felony charges stemming from a tax evasion scheme.
To read the sentencing agreement, please click here.
Court records filed in May show prosecutors charging Anson with “conspiracy to defraud the United States” in an alleged scheme that resulted in a tax loss to the U.S. Treasury of approximately $9 million. The U.S. Attorney’s Office accused Garrett of “aiding and assisting preparation of false tax return.” In its filing, federal prosecutors asserted that the total amount of government tax loss from Garrett’s “preparation and signing of these false returns is $357,906.”
Both Anson and Garrett initially pleaded not guilty to the government allegations, but recent court filings indicate the two Four Star executives may be in the process of changing those pleas to guilty.
In addition to serving as Four Star executives, Anson and Garrett were both certified public accountants.
Prosecutors filed the charges in U.S. District Court for the Central District California. To read the charges against Anson, please click here. To read the charges against Garrett, please click here.
Reasons for the postponement were spelled out in newly filed court papers. Here’s an extended excerpt:
“… (rescheduled) to permit the parties to fully review recently obtained trial transcripts, trial exhibits, and financial records, to determine whether to object to the Pre-Sentence Report (“PSR”). The parties anticipate that the additional time will permit the parties to limit issues for the Court’s determination, including related-conduct issues of first impression.
The PSR was disclosed on March 13, 2008. Objections to the PSR would have been due on March 27, 2008, based on this disclosure date. The Court previously granted one extension of the sentencing date to permit the government sufficient time to obtain information related to possible PSR objections. The lengthy recommendation letter and PSR include a recommendation for reducing any sentence by the 57-month sentence imposed on defendant in a District of Maryland case. In addition, the PSR includes a 42-month recommended downward variance based on defendant’s health issues, caretaking issues for his children and wife, and post-offense rehabilitation.
This second requested delay is directed at obtaining and analyzing further information to determine whether the Maryland telemarketing scheme is related to the instant Ponzi scheme, which may turn, in part, on the financial connection between the two schemes. This means the factual record will have to be further developed so that the parties and the Court will have sufficient information to determine the schemes’ factual interrelatedness. The parties are working toward limiting or eliminating factual disputes before filing any objections to the PSR.
In the period since the Court granted the first continuance, the government has obtained hundreds of pages amounting to a partial transcript of defendant’s 20-day Maryland trial, plus trial exhibits. In addition, an IRS Special Agent has recently completed a weeks-long analysis of financial records. Defense counsel and government counsel met with the agent on June 6, 2008 and identified further possible financial analyses, which may necessitate obtaining additional exhibits from the Maryland trial.”
For more information, please contact:
Evan J. Davis, AUSA
phone: (213) 894-4850
email: Evan.Davis@usdoj.gov
The PSR was disclosed on March 13, 2008, although each party received its copy on March 14, 2008. Objections to the PSR would be due on March 27,2008, based on this disclosure date.
The lengthy recommendation letter and PSR include a recommendation for reducing any sentence by the 57-month sentence imposed on defendant in a District of Maryland case. In addition, the PSR includes a 42-month recommended downward variance based on defendant’s health issues, caretaking issues for his children and wife, and post-offense rehabilitation.
To determine whether to challenge the PSR, the government will need to perform additional legal research, obtain portions of defendant’s trial transcript, and review defendant’s sentencing transcript. The government may also seek to obtain a psychiatric expert to evaluate defendant, as the PSR refers to a report provided by defendant’s psychiatric expert.
Government counsel has a week-long trial scheduled to begin on March 25, 2008, and an oral argument before the Ninth Circuit on April 8,2008. Given the press of these matters and the difficulty in obtaining required information with which to evaluate the PSR, the government is requesting additional time in which to file objections to the PSR. In so doing, to allow parties the full time allowed in which to file sentencing positions, the parties are also requesting that defendant’s sentencing date be moved.”
In other developments, the bankruptcy Trustee for Four Star has filed a motion seeking “partial summary judgment” against Four Star insider David Roberts. The Trustee alleges that “intentionally fraudulent transfers” (payments)from Four Star to Roberts totaling $12.9 million dollars were made between 2000 and 2002. The Trustee is seeking full recovery of the $12.9 million. A hearing has been scheduled to consider the motion on April 30th.
The Four Star executive entered a guilty plea to fraud and conspiracy charges in late 2007. He faces up to ten years in federal prison for his role in the Four Star case.
According to papers filed in U.S. District Court-Central District California, the government and Cohn agreed to postpone the sentencing "... until after the government has resolved how to proceed with other targets in this action, which resolution should occur by April 2008."
Cohn remains under “supervised release” in Arizona after serving a four year prison term on a separate conviction of telemarketing fraud.
]]>The postponement comes after Cohn’s attorney filed a motion stating, “…(Cohn) has had difficulty obtaining and requires additional time in which to obtain documents relevant to his sentencing from the Federal Bureau of prisons and various medical professionals … “
Medical issues were a point of controversy in 2004 during Cohn’s last criminal sentencing. In January 2004, Cohn was sentenced to more than four years imprisonment after being convicted of telemarketing fraud and money laundering.
To learn more about Cohn's 2004 sentencing (including the dispute over his medical issues), please click here to read a court transcript of the 2004 sentence proceeding.
Cohn’s current sentencing on conspiracy and wire fraud charges, stemming from the Four Star Ponzi case, will now take place on March 17, 2008 at 10 a.m. before Judge Philip S. Gutierrez, Courtroom 790, Roybal Federal building, 255 E. Temple Street, Los Angeles.
However, according to the letter, the $19 million in restitution will be limited to the approximately 100 victims who invested in the so-called “arbitrage” deals. Even so, the letter goes on to say that the U.S. Attorney doubts the government can collect on the $19 million because of numerous existing civil judgments against Cohn.
The U.S. Attorney letter states that victims of Four Star interested in expressing their feelings to the federal court about the sentencing of Mark F. Cohn (which is scheduled for March 17, 2008) can submit correspondence to the following contact and address:
Elizabeth Morony
U.S. Probation Officer
600 U.S. Courthouse
312 North Spring Street
Los Angeles, CA 90012
To read the U.S. Attorney’s full letter, please click here.
To read the change of plea filing, please click here.
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