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Three men convicted of fraud, laundering
The elaborate Ponzi scheme involved taking money from new investors to pay old investors. Each man faces up to 15 years in prison.
By CANDACE RONDEAUX
Published April 23, 2005
TAMPA - A federal jury has convicted an Oldsmar man and two others of conspiracy to commit securities fraud and money laundering for their role in what investigators said was an $18.4-million investment scam.
The jury deliberated for a full day in U.S. District Court in Tampa before returning a guilty verdict Thursday afternoon against Joseph Cuciniello. Also convicted were Fort Myers resident Dean A. Sinibaldi and Gene A. Tyrrell of Glendale, Ariz.
In addition to the fraud charges, Cuciniello, 55, was convicted of several counts of mail fraud and money laundering for his role in a scheme that fleeced more than 300 investors.
He and others behind Millennium Investment Inc., First Dominion Venture Capital and Stonehedge Group Inc. sold the companies' clients worthless promissory notes and unregistered securities by falsely claiming the money would be used to purchase high-quality securities, authorities said.
Federal prosecutors called the companies Cuciniello. His associates operated an elaborate Ponzi scheme in which money from hundreds of new investors was used to pay old investors from late 1996 to 2000.
Sinibaldi, 45, also was convicted of two counts of securities fraud, three counts of sale of unregistered securities, four counts of mail fraud and 15 counts of money laundering. The jury additionally convicted Tyrrell, 56, of several counts of securities fraud, mail fraud and money laundering.
Cuciniello's Tampa attorney, Daniel Castillo, said he was surprised by the conviction of his client, calling the jury's decision "lightning quick." He said Cuciniello plans to appeal.
Cuciniello maintained his innocence Friday.
"The government took nine weeks to put on a case that put the jury to sleep. We did not put on an elaborate defense because we felt we did nothing wrong," Cuciniello said. "The jury did not understand the case at all."
The three men each face up to 15 years in prison and a $500,000 fine. A sentencing hearing has yet to be set.
Attempts to reach Tyrrell and Sinibaldi's attorneys Friday evening were unsuccessful.
Candace Rondeaux can be reached at 727 771-4311 or rondeaux@sptimes.com
[Last modified April 23, 2005, 00:54:19]
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