John Visconti, 74, of Beverly Hills, was convicted late yesterday afternoon on multiple counts including tax evasion, conspiracy to defraud the IRS, and filing a false tax return — the final chapter in a years-long looting of Axium International, Inc., once Hollywood’s premier payroll services firm.
The federal jury in Riverside, California, delivered their verdict after a one-week trial that exposed how Visconti, as CEO, helped bleed Axium dry between 2005 and 2007. Under his watch, the company — which serviced major studios, Fortune 500 firms, and media giants — collapsed in 2008 amid more than $100 million in tax delinquencies. The IRS has since assessed a $15 million recovery penalty against Visconti personally.
Prosecutors proved Visconti and Ronald Garber, 62, of Santa Monica, Axium’s former COO, orchestrated a web of fraud that diverted $5.1 million from the company. Visconti also took $1.9 million in unpaid corporate loans. One scheme rerouted IRS tax refund checks into “shadow bank accounts” — hidden accounts under Axium subsidiary names but controlled solely by Visconti and Garber, off the books and invisible to accountants.
Another scam used a fake construction company to bill Axium for phantom services, pulling over half a million dollars from the firm. The duo also arranged weekly cash deliveries from company funds — thousands at a time — while ensuring none of the stolen income appeared on Visconti’s federal tax returns. Payments were often funneled into accounts tied to entities Visconti secretly controlled.
“This defendant and his co-conspirator stole millions from Axium over the course of many years and failed to pay taxes on those amounts,” said U.S. Attorney Eileen M. Decker. “His conduct victimized not only the employees of Axium who lost their livelihoods when the business collapsed, but all American taxpayers who are paying their fair share.”
Visconti now faces up to 13 years in prison and a $750,000 fine at sentencing on January 23, 2017. Garber, who pled guilty to two counts of filing false tax returns, is set for the same sentencing date. Christina Futak, 60, of Orange, California, a former Axium associate and tax pro, pled guilty to tax evasion and will be sentenced December 19, 2016. She also agreed to a permanent ban from tax preparation work.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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