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Monday, March 9, 2015

DOCTOR RECEIVES CASH PAYMENTS FROM PATIENTS AND 46 MONTHS IN PRISON

FROM:  U.S. JUSTICE DEPARTMENT
Friday, March 6, 2015
Monmouth County, New Jersey, Doctor Sentenced to 46 Months in Prison on Structuring and Tax Charges

A Monmouth County, New Jersey, doctor was sentenced today in U.S. District Court in Trenton, New Jersey, to serve 46 months in prison for structuring cash transactions in order to avoid reporting requirements and for aiding and assisting in the filing of his own false tax returns, U.S. Attorney Paul J. Fishman of the District of New Jersey and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.

Paul DiLorenzo of Ocean Township, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to two counts of a second superseding indictment charging him with structuring financial transactions and aiding and assisting in the filing of false tax returns.  In addition to the prison term, Judge Wolfson sentenced DiLorenzo to three years of supervised release, ordered DiLorenzo to pay restitution to the IRS of $304,293, and ordered DiLorenzo to forfeit nearly $1,000,000 in illegally derived proceeds.

According to documents filed in this case and statements made in court:

Between 2009 and June 27, 2012, DiLorenzo received more than $2 million in cash payments from his patients.  The medical office received payments exceeding $10,000 in a single day on at least 35 occasions.  Between May 28, 2009, and Nov. 2, 2011, DiLorenzo deposited $1 million in cash into banks accounts in his name and in the name of his business.  The deposits included 150 separate transactions, and all transactions but one were for less than $10,000.  Certain currency transactions of more than $10,000 trigger financial institutions to comply with Currency Transaction Report requirements.  DiLorenzo admitted that he made the deposits for less than $10,000 in order to evade the reporting requirements.

On March 29, 2011, DiLorenzo aided and assisted in the filing of a false federal income tax return for the 2010 tax year that reported gross receipts of $444,331.  His actual gross receipts, however, were more than $1 million.  In May 2012, DiLorenzo aided and assisted in the filing of a false tax return for the 2011 tax year in which he reported gross receipts of $537,236, when in fact his actual gross receipts were in excess of $800,000.

U.S. Attorney Fishman and Acting Assistant Attorney General Ciraolo commended special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey; special agents of IRS-Criminal Investigations, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents and task force officers from the Drug Enforcement Administration’s Tactical Diversion Squad, under the direction of Special Agent in Charge Carl Kotowski, who investigated the case, and Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office for the District of New Jersey located in Trenton, and Trial Attorney Yael Epstein of the Justice Department’s Tax Division who prosecuted the case.