Eugene Casternovia, Tax Fraud, Wire Fraud, Money Laundering, Florida 2010
A federal court in Pensacola, Florida, has sentenced three of nine promoters of a fraudulent tax-and-debt-elimination scheme to prison terms for their roles in tax fraud, wire fraud, and money laundering. The Justice Department and Internal Revenue Service (IRS) announced the sentencing today.
The court sentenced Eugene Casternovia to 7 years in prison and Arthur Merino to 3 years and 4 months in prison. Mark Lyon, who cooperated with the government and testified at trial, was sentenced to 18 months in prison.
The scheme involved the promotion of fraudulent tax-and-debt-elimination schemes through Pinnacle Quest International, also known as PQI and Quest International. The promoters sold bogus theories and strategies for tax evasion, including the creation of sham business entities in the United States and Panama.
Other vendors sold fraudulent schemes for eliminating credit card debt, including a product called Financial Solutions. Financial Solutions charged customers thousands of dollars for a series of letters to send to credit card companies disputing the lawfulness of the underlying debt.
The government established that the promoters of the scheme, including Eugene Casternovia, Arthur Merino, and Mark Lyon, acted as a gateway to their fraudulent vendors. Customers seeking the tax evasion and debt elimination vendors could only access the product if they joined PQI first.
The cost of membership ranged from $1,350 to $18,750, depending on the level of access. In May 2008, a federal district court issued a preliminary injunction against the promoters of Pinnacle Quest International.
Defendant: Eugene Casternovia
Criminal Charges: Tax Fraud, Wire Fraud, Money Laundering
Location: Pensacola, Florida
Date: March 31, 2010
Sentence: 7 years in prison
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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