Leroy J. Pelicci, Currency Transaction Conspiracy, Pennsylvania 2023
A Scranton physician and his wife have been charged with a $431,500 currency transaction conspiracy. Leroy J. Pelicci, owner/operator of the “Pelicci Pain Relief Center” in Scranton, and his wife Ann Pelicci were indicted by a federal grand jury in Scranton, according to the United States Attorney’s Office for Middle District of Pennsylvania.
The indictment alleges that the Peliccis conspired to evade federal currency transaction reporting requirements by structuring a series of cash transactions at several Northeast Pennsylvania banks between 2011 and 2013. The alleged crime is “structuring,” the conducting of transactions in currency at one or more financial institutions for the purpose of evading federal currency transaction reporting requirements.
Banking institutions are required to file currency transaction reports (CTRs) with the Internal Revenue Service for each deposit, withdrawal or exchange of currency or other payment that involves currency of more than $10,000. The law also prohibits evading or attempting to evade the reporting requirements or attempting to cause banks to fail to file CTRs.
The indictment alleges that the Peliccis began transferring funds from a Fidelity Investment account after the patient and billing records of the Pelicci Pain Relief Center became the subject of an inquiry by agencies of the Commonwealth of Pennsylvania. The defendants allegedly opened multiple bank accounts individually in the name of Ann Pelicci and moved large amounts of cash from the investment account into those individual accounts.
Beginning in January 2012, the defendants allegedly began withdrawing cash, mostly in amounts of $9,000, from the individual accounts at the four banks listed above. The maximum criminal penalty provided for structuring transactions to evade CTR reporting requirements is imprisonment of not more than five years and a fine of $250,000. If the structuring involves more than $100,000 in a 12 month period, as is alleged in this case, the penalty is increased to a maximum of 10 years imprisonment and a fine of $500,000.
The investigation is being conducted by the Scranton office of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Michelle Olshefski with the assistance of the United States Attorney’s Office’s Victim Rights and Asset Recovery Unit. The indictment also includes a count alleging that the $431,500 total amount of the currency involved in the structuring is subject to forfeiture to the United States plus “all property real or personal, involved in the offense, and all property traceable to such property.”
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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