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Case Number: 18-cr-00479 & 18-cr-00480
Judge: R. Brooke Jackson
Court: United States District Court for the District of Colorado (Denver County)
Plaintiff's Attorney: United States District Attorney’s Office, Denver, Colorado
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Description: Denver, Colorado criminal defense lawyer represented defendant charge with money laundering.
David Paul Rietz, age 60, of Lakewood, Colorado was sentenced to serve 92 months in federal prison followed by 3 years of supervised release for conspiracy to commit money laundering. Rietz also was ordered to pay restitution of $4,197,775.83. IRS Criminal Investigation and the Federal Bureau of Investigation joined in this announcement.
According to court records, Rietz defrauded his employer, a nonprofit health-care system based in Colorado, of more than 16 million dollars. Rietz organized a scheme whereby inflated quotes for computer services were submitted through another company owned by a co-conspirator. Rietz approved these quotes, whereby millions in inflated payments were approved before the fraud was discovered. Proceeds went back Rietz and his co-conspirators through a third company, which returned profits to Rietz in the form of payments on fake contracts for goods and services, gold coins, and cashier checks
“Our office is committed to uncovering and prosecuting complex fraud schemes,” said U.S. Attorney Jason Dunn. “Through great partnerships with IRS-Criminal Investigation and the FBI, our prosecutors are unwinding tangled webs of fraud and bringing justice for Coloradan victims.”
“Honest and law-abiding citizens are fed up with those who use deceit and fraud to line their pockets with other people’s money," IRS – Criminal Investigation Special Agent in Charge Andy Tsui said. "The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel. Individuals who engage in this type of financial fraud should know they will be held accountable."
"FBI Denver works closely with our law enforcement partners to combat money laundering and white collar crimes in our community,” said FBI Denver Special Agent in Charge Michael Schneider. “The sentencing of Mr. Rietz should serve as a deterrent to those who seek to prey on innocent victims that their criminal acts will not be tolerated and they will be brought to justice. Special thanks to the IRS and U.S. Attorney’s Office for their dedication and hard work on this investigation.”
Rietz was sentenced on December 14, 2020, by United States District Court Judge R. Brooke Jackson. The sentence included enhancements for being the leader and organizer of the offense and for obstruction of justice for lying under oath in civil proceedings related to the underlying fraud. Rietz’s co-conspirators were previously sentenced. Richard Scott Cartwright was sentenced on August 6, 2019, by Judge Jackson to serve 60 months in prison and also ordered to pay restitution of $4,197,775.83, which is the same amount as Rietz. Lyle Perry, who participated in the money laundering but not the underlying fraud, was sentenced to 36 months’ imprisonment by Chief Judge Philip A. Brimmer, and ordered to pay approximately $2.6 million in restitution.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Anna Edgar.
18:1956 MONEY LAUNDERING - FRAUD, OTHER
Outcome: Defendant shall be imprisoned for a term of 92 months, 3 years supervised release, $100 special assessment fee, joint and several restitution in the total amount of $4,197,775.83.