Rapid City Surgeon Sentenced for Tax Evasion

A former Rapid City surgeon has been handed a lengthy prison sentence for his role in a complex tax evasion scheme.

Edward J.S. Picardi, 56, was sentenced by Chief Judge Jeffrey L. Viken to 60 months in custody for his role in evading over $1 million in taxes.

Picardi was convicted of 13 separate counts, including five counts of tax evasion for years 1999 through 2003, five counts of making false statements on each of his tax returns for years 2004 through 2008, and three counts of failing to file required reports with the United States Treasury Department in 2007 through 2009 disclosing his interest in foreign accounts.

His complex scheme involved sending his earnings through a web of entities organized under the laws of Ireland, Hungary, Cyprus, Isle of Man, Jersey, and Guernsey, ultimately depositing the money into various foreign accounts that Picardi controlled through a New Zealand trust.

U.S. Attorney Brendan V. Johnson described Picardi’s actions as ‘criminal activity’ and warned that individuals who attempt to cheat their fellow taxpayers will be fully investigated and prosecuted.

Picardi was also ordered to pay a $1,300 special assessment fee and serve one year of supervised release.

The case was investigated by the Criminal Investigation Division of the Internal Revenue Service and prosecuted by Assistant U.S. Attorney Kevin Koliner.