BEAUMONT, Texas – A gripping tale of financial deceit unfolded in the Eastern District of Texas as Dick Brocato Jr., 68, and his wife Judith L. Brocato, 65, were sentenced to a combined 66 months in federal prison for their audacious scheme to defraud the Internal Revenue Service (IRS).
The couple, both residents of Beaumont, were convicted by a jury on February 2020 of conspiracy to defraud the United States and six counts of making and submitting false tax returns. They were each slammed with a 33-month sentence by U.S. District Judge Marcia Crone, along with restitution orders totaling $617,762 to the IRS and fines of $15,000 each.
The Brocatos’ crime spree began when they conspired to obstruct the IRS’s efforts in collecting income taxes for 2012-2014. They owned Superior Lawn Service, an S Corporation, where Dick was the sole shareholder and Judith served as president, handling corporate books and tax returns. Their fraudulent activities included cashing customer checks instead of depositing them into company accounts, then systematically underreporting their income to the tune of $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014.
On September 4, 2019, a federal grand jury indicted the Brocatos for their criminal activities. Today’s sentencing marks the culmination of a thorough investigation by the IRS Criminal Investigation Division, with Assistant U.S. Attorneys Robert L. Rawls and John B. Ross leading the prosecution.
As the case comes to a close, the Beaumont couple are left to face the harsh reality of their actions, serving time behind bars for their deliberate misuse of the tax system and their betrayal of public trust.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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