FOR IMMEDIATE RELEASE
FUTURE TECH INTERNATIONAL AND ITS CFO AGREE TO PLEAD GUILTY TO TAX AND CAMPAIGN FINANCE CHARGES
WASHINGTON, D.C. -- Future Tech International, Inc. has agreed to plead guilty to two counts of tax evasion stemming from campaign financing violations, and Juan C. Ortiz, FTI's Chief Financial Officer, has agreed to plead guilty to acting as a strawman or conduit for an illegal campaign contribution and participating in the reimbursement of eight other conduit or strawman contributions, all to Democratic campaigns, announced the Justice Department Campaign Financing Task Force.
The plea agreements, filed in U.S. District Court in Washington, D.C., are related to September's 17-count indictment of Democratic fund-raiser Mark B. Jimenez, FTI's Chief Executive Officer, for organizing, making and concealing illegal conduit contributions to a number of Democratic campaigns. Ortiz is the fifteenth person charged by the Task Force.
According to the statement of facts filed with the FTI plea agreement, the company reimbursed approximately 23 employees for conduit campaign contributions to the 1996 Clinton/Gore Primary Committee in connection with a September 19, 1995, fund-raising event at the Sheraton Bal Harbour in Miami. The company then falsely claimed these costs as deductible payroll expenses on its 1995 corporate income tax return. In addition, on its 1994 corporate income tax return, the company had reported as a charitable contribution deduction a $100,000 donation made by FTI to the Democratic National Committee. In reference to these false deductions, the company agreed to plead guilty to two felony counts of tax evasion. As part of the plea agreement, the company will pay the maximum allowable fine of $1 million, as well as all back taxes and penalties owed.
Ortiz, 34, was one of the conduits whose reimbursement by FTI had been claimed as a deductible business expense. In addition, Ortiz had participated in the reimbursement of eight other conduits, each of whom, like Ortiz, had made a $1,000 contribution to the Clinton/Gore Primary Campaign. Plea hearings will be scheduled for both FTI and Ortiz.
Ortiz is the fifteenth person charged by the Task Force, which was established to investigate allegations of campaign financing abuses in the 1996 election cycle. On November 24, Howard Glicken, a fund-raiser for the Democratic party, was sentenced to 18 months probation, an $80,000 fine, and ordered to perform 500 hours of community service for violating campaign finance laws. On November 4, Franklin Haney was indicted on more than 40 counts of conspiring with another to defraud the United States by impairing and impeding the FEC and conspiring to violate specific provisions of federal election law. On September 30, Democratic fund-raiser Mark B. Jimenez was indicted on 17 counts of organizing, and making and concealing illegal conduit contributions to a number of Democratic campaigns. On August 5, the Task Force indicted Yogesh Gandhi on mail fraud charges in San Francisco.
On July 13, DNC fund-raiser Pauline Kanchanalak and her business associate Duangnet "Georgie" Kronenberg were charged with conspiring to impair and impede the FEC, and causing the submission of false statements to the FEC. Trial is scheduled for March. Maria Hsia was indicted in Los Angeles on July 7, on four tax counts. The case is scheduled for trial in January 1999. On February 18, Hsia was also indicted in D.C. on charges of conspiring to defraud the United States and causing false statements to be submitted to the FEC. On March 16, Johnny Chung pleaded guilty to bank fraud, tax evasion and two misdemeanor counts of conspiring to violate election law. He was later sentenced to probation. On January 29, Charlie Trie and Antonio Pan were indicted on 15 charges, including obstruction of justice and various crimes relating to campaign financing. Trials in the Hsia and Trie cases have been postponed pending an appeal of the dismissal of some of the counts in the indictments. Last year, the Task Force obtained guilty pleas from Democratic fund-raisers Nora and Gene Lum, their daughter Trisha, and Michael Brown for illegal fund-raising activities after their cases were referred from Independent Counsel Daniel Pearson.
The charges made by the government are merely accusations. All criminal defendants are presumed innocent until proven guilty.
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