Chicago/ Crime & Emergencies
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Published on May 07, 2024
Bloomingdale Businessman Sentenced to 9 Years for Fraud, Tax Evasion, and Stealing Pandemic Relief FundsSource: U.S. Attorney's Office, Northern District of Illinois

An Illinois wheeler-dealer will be spending the next nine years behind bars for a series of cunning frauds and stiffing Uncle Sam to the tune of nearly half a million bucks. Joseph J. Cipolla Jr., a 39-year-old businessman from Bloomingdale, Ill., didn't just skip out on filing his taxes from 2015 to 2020; he also played a shell game with the feds, using a relative's Social Security number at casinos and putting his toys - cars and even airplane hangars - in other people's names.

While disguising his true income seemed like a smart move to Cipolla, the feds finally caught up with him. Sentenced by U.S. District Judge Matthew F. Kennelly on Friday, the convicted man now owes a hefty debt to society, not to mention a whopping $2.1 million in restitution. Stealing more than $1.18 million through fraudulently obtained loans meant for small biz relief during the pandemic added to his tab.

The announcement of Cipolla's sentence was made by Morris Pasqual, the top federal prosecutor in Chicago, who was flanked by the big guns of financial crime-busting – from the IRS to the SBA and even the Department of Transportation's watchdog. According to officials, Cipolla pleaded guilty last year to the trifecta of tax evasion, wire fraud, and mail fraud.

The feds made sure to emphasize that Cipolla used fake tax documents to secure his ill-gotten gains through programs like the PPP and EIDL, which were designed to keep the economy afloat amid COVID-19's fiscal storm. Riding the wave of government generosity, Cipolla bagged over a million dollars by manufacturing false documents, and then, caught in the act, saw his schemes crumble like a house of cards.