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Date: 09-18-2020
Case Style:
Case Number: 1:20-cr-00036-RJJ
Judge: Robert J. Jonker
Court: United States District Court for the Western District of Michigan (Kent County)
Plaintiff's Attorney: United States District Attorney�s Office, Grand Rapids, Michigan
Defendant's Attorney:
Description: The United States of America charged Paul Patrick Piper, ate 58, with bank fraud and filing false tax returns.
Piper served for many years as the financial controller for Lake Michigan Carferry, the company operating the SS Badger ferry between Ludington, Michigan, and Manitowoc, Wisconsin. Piper embezzled in excess of $1,700,000.00, between 2007 and May 2018, by overriding normal company accounting systems and writing checks directly to himself and to two of his affiliated businesses, Piper Tax & Accounting and Piper Group. Piper either forged the signatures of company owners on these checks or used a signature stamp without the authorization of the owners. Piper hid these transactions in the accounting system by booking these checks to an insurance expense code and by otherwise making false entries to balance company accounts. Additionally, Piper filed false personal income tax returns with the Internal Revenue Service because he knowingly failed to include the income he stole from the Carferry, and other income earned from his tax business, on his federal income tax returns.
"Piper violated the trust of the company that hired him and endangered the financial well-being of one of Ludington�s largest employers," said Special Agent in Charge of the FBI in Michigan, Steven M. D�Antuono. "Financial crime is not a victimless crime. The FBI and our law enforcement partners will continue to pursue anyone who uses their position of trust for personal gain."
"For over a decade Mr. Piper repeatedly took advantage of his position as controller and committed criminal financial crimes that resulted in a large tax due and owing," said IRS-CI Special Agent in Charge Sarah Kull. "Of course activity like this hurts the �Carferry,� but it also hurts every U.S. taxpayer. IRS-CI will continue to work with our law enforcement partners to investigate tax fraud committed by trusted professionals."
As part of his sentence, the court imposed a forfeiture money judgment in the amount of $1,740,037.91. Pursuant to prior forfeiture efforts, Piper forfeited a 2018 Ram Truck, a 2008 Glacier Bay 5th Wheel Recreational Vehicle, and cash in lieu of forfeiture of other assets. The court will impose mandatory restitution for the victim in an amount of at least $1,740,037.91 after receiving information and arguments from the parties about possible additional losses within the next 30 days.
Assistant United States Attorney, Ronald M. Stella, conducted the prosecution of the case. The Internal Revenue Service�s Criminal Investigation Division and the Federal Bureau of Investigation, with significant assistance from the Mason County Sheriff�s Office, handled the investigation of the case.
18:1344(1) and (2) BANK FRAUD
(1)
26:7206(1) FRAUD AND FALSE STATEMENTS; making and subscribing to a false U.S. individual income tax return
(2)
Outcome: Defendant was sentenced to 63 months custody, 3 years supervised release, $100.00 special assessment.
Plaintiff's Experts:
Defendant's Experts:
Comments: