Paul DiLorenzo, Structuring and Tax Charges, New Jersey 2015

TRENTON, N.J. – A Monmouth County, New Jersey, doctor, Paul DiLorenzo, was sentenced to 46 months in prison for structuring cash transactions in order to avoid reporting requirements and for filing false tax returns.

Paul DiLorenzo, 46, of Ocean Township, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to Counts Two and 12 of a second superseding indictment charging him with structuring financial transactions and aiding and assisting in the filing of false tax returns.

According to documents filed in this case and statements made in court, DiLorenzo received more than $2 million in cash payments from his patients between 2009 and June 27, 2012. The office received payments exceeding $10,000 in a single day on at least 35 occasions.

Between May 28, 2009, and Nov. 2, 2011, DiLorenzo deposited $1 million in cash into banks accounts in his name and in the name of his business. The deposits included 150 separate transactions, all but one for less than $10,000. Transactions of more than $10,000 require financial institutions to file Currency Transaction Reports.

DiLorenzo admitted he made the deposits for less than $10,000 to evade the reporting requirement. On March 29, 2011, DiLorenzo helped his accountant file a U.S. Individual Income Tax Return, Form 1040, for the 2010 tax year, reporting gross receipts of $444,331, knowing his gross receipts were $1 million.

In addition to the prison term, Judge Wolfson sentenced DiLorenzo to three years of supervised release, ordered DiLorenzo to pay restitution to the IRS of $304,293, and ordered DiLorenzo to forfeit nearly $1 million in illegally derived proceeds.

U.S. Attorney Fishman and Acting Assistant Attorney General Ciraolo credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of IRS-Criminal Investigations, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents and task force officers from the Drug Enforcement Administration’s Tactical Diversion Squad of the, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton and Trial Attorney Yael Epstein of the Justice Department’s Tax Division. Defense counsel: Robert J. DeGroot Esq., Newark.

Defendant: Paul DiLorenzo, Crime: Structuring and Tax Charges, City: Trenton, State: New Jersey, Date: March 29, 2011 and May 28, 2009, Sentence: 46 months in prison, Restitution: $304,293, Forfeiture: $1 million.

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