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CPA Isabella sentenced to five years in federal prison for wire fraud

December 19, 2012
Morning Journal News

Former Salem businessman Raymond G. Isabella, 55, was sentenced to more than five years in federal prison and ordered to repay more than $1.1 million for wire fraud, bank fraud, money laundering and aggravated identity theft, federal officials announced.

Isabella, whose address had been listed on Lexington Avenue in Salem, had previously pleaded guilty to one count each of wire fraud, bank fraud, money laundering and aggravated identity theft, according to a press release.

Isabella had been a Certified Public Accountant licensed by the State of Ohio, and was the Chief Financial Officer of Intrasee Inc., a privately owned corporation, according to the federal indictment against him.

The indictment alleged that Isabella charged Intrasee excessive accounting fees totaling $335,000 beginning in 2010 and obtained three loans from Huntington Bank in Intrasee's name without permission or authorization from the company's owners, falsely claiming the loans had been signed and approved by the Intrasee owners. The three loans together totaled $1,075,230. The owners discovered what he had been doing in 2011. The indictment came out late last year.

"This defendant abused his position of trust," Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, said in a press release. "Economic crimes and identity theft threaten our nation and we will do everything within our power to stop them."

Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office, added in the press release, "The Federal Bureau of Investigation is committed to protecting the viability of our businesses and financial institutions by rooting out fraud and theft."

The case was prosecuted by Assistant U.S. Attorney Matthew B. Kall, following investigation by agents of the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the Avon Police Department.

Isabella could have faced up to 32 years in prison for all the charges in the indictment.

Isabella had been listed as the contact for Isabella & Company CPAs at 2789 E. State St., Suite 7, Salem, a location in the plaza on Cunningham Road across from the Walmart entrance, according to the Salem Area Chamber of Commerce website list of members when he was indicted. Many years ago he had been a member of the firm Arnold and Isabella on East Second Street and had left the area, returning in November 2011, according to a spokesman with the chamber.

According to Avon Lake Municipal Court online records, Isabella was originally charged with theft by Avon Police on Dec. 12, 2011. The case was dismissed Dec. 15, 2011, noting the case was being handled by the FBI. A Salem Police report on Dec. 12, 2011 noted a city police officer stood by while members of the Columbiana County Drug Task Force and Avon Police executed a search warrant at the apartment on Lexington Avenue.

Mary Ann Greier can be reached at mgreier@salemnews.net

 
 

 

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