Former Boston Grand Prix CFO sentenced to four years in prison for fraud and tax schemes that brought in nearly $2 million | USAO-MA

BOSTON – The former chief financial officer (CFO) of the Boston Grand Prix was convicted today in federal court in Boston in connection with multiple schemes to defraud equipment and small business finance companies as well as the Small Business Administration (SBA) and the Internal Revenue Service.

John F. Casey, 58, formerly of Ipswich, was sentenced by US District Court Judge Allison D. Burroughs to four years in prison and three years on probation. Casey was also ordered to pay $1,998,097 in restitution and forfeit $1,570,399. On October 21, 2021, Casey pleaded guilty to 23 counts of wire fraud, three counts of aggravated identity theft, four counts of money laundering and three counts of filing false tax returns.

Casey became the Boston Grand Prix CFO in January 2015. The Boston Grand Prix organization made payments to or on behalf of Casey totaling approximately $308,292 in 2015 and $601,073 in 2016 , which Casey did not include in the gross income he claimed on his personal tax returns for those years.

Casey also owned a rink in Peabody from October 2013 until he sold it in June 2016. Between October 2014 and October 2016, Casey secured over $743,000 in funds from equipment finance companies, supposedly for the purchase of equipment for the rink. fact that he no longer owned the rink for four months during this period. Additionally, in August 2016, more than two months after selling the Peabody Rink, Casey secured over $145,000 in small business loans for the rink business. In order to secure the funding, Casey submitted false documents and information, including fake invoices for the equipment, bank statements purporting to show deposits in Casey’s accounts related to the Peabody rink, personal tax returns and ‘inflated business and personal financial statements falsely claiming ownership and value. of various assets. Casey also submitted a forged bill of sale containing a forged signature in support of one of his loan applications. Relying on Casey’s misrepresentations, the finance companies provided financing to Casey in amounts and on terms they would not have otherwise. Most of the funds provided by the victim companies have never been reimbursed.

Additionally, between March 2020 and at least May 2021, Casey orchestrated a scheme to fraudulently obtain Economic Disaster Loans and SBA Paycheck Protection Program loans and an industry-specific relief grant. Massachusetts – available under the Coronavirus Aid, Relief, and Economic Security Act – submitting false claims for companies he created and controlled and misusing loan and grant funds fraudulently obtained for personal expenses. Specifically, Casey submitted at least 14 loan applications to the SBA and intermediary lenders that contained false information regarding, among other things, gross business revenues in the year prior to the COVID-19 pandemic, the average monthly payroll of companies and the existence of certain companies.

During his pandemic assistance fraud, Casey stole the identities of two women and used their personally identifiable information to file fraudulent claims. Finally, in January 2021, while awaiting trial for fundraising fraud, Casey submitted a $70,000 pandemic relief grant application to the Massachusetts Growth Capital Corporation containing false information about the company’s operating expenses. a business that was not in operation in 2019. or 2020. Between April 2020 and April 2021, approximately $676,552 in COVID-19 relief funds were deposited into bank accounts controlled by Casey, and he used the large majority of funds for personal expenses, including a three-carat diamond ring that was ordered lost, a six-month Match.com subscription, private school tuition, residential rent payments, fees subsistence, payments to personal credit card accounts, restaurant meals, car payments and stays in luxury hotels.

Casey also laundered the proceeds of his fraud schemes and did not include income from the Peabody Rink fraud scheme on his 2014, 2015 and 2016 personal federal income tax returns.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, special agent in charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent for Criminal Investigations for the Internal Revenue Service, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Rollins’ Public Corruption and Special Prosecutions Unit prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to mobilize Department of Justice resources in partnership with government agencies to scale up enforcement and prevention efforts. pandemic-related fraud. The task force strengthens efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies administering relief programs to prevent fraud, among other methods, by increasing and integrating coordination mechanisms existing ones, identifying resources and techniques to uncover fraudulent actors and their agendas, and sharing and leveraging information and knowledge gained from previous enforcement efforts. For more information about the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about alleged attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline at 866-720-5721 or via NCDF’s online complaint form at: https://www. .justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Louisa R. Loomis