Caronna Pleads Guilty To Mail Fraud, Insurance Fraud, And Money Laundering
Memphis, TN – Joseph G. Caronna, 48, of Cordova, TN, pleaded guilty today to four counts related to defrauding clients of his investment and insurance business, announced U.S. Attorney Edward L. Stanton III.
Caronna pleaded to one count of mail fraud, two counts of insurance fraud and embezzlement, and one count of money laundering. He could receive up to 50 years in prison, a fine of up to one million dollars, three years supervised release, and a special assessment of $400. His sentencing is set for May 28, 2013, before U.S. District Judge S. Thomas Anderson.
As outlined in the indictment, beginning in or about 2001 and continuing up to and including May 31, 2009, Caronna systematically embezzled money from insurance customers of his business, Joe Caronna Investments. He had the money diverted to private mail facilities where he obtained mail boxes in the names of his clients. The total loss to the victims was approximately $788,144.53.
It was revealed during his plea hearing that Caronna used the proceeds of his crimes to finance the purchase of a collection of sports cars and vehicles, including a 1971 Chevrolet Chevelle, a 1969 Corvette, a 1983 Porsche 911, a 1985 Porsche 930, a 1980 Chevrolet Corvette, a 2006 Hummer, and a 2002 Honda Blue Shadow motorcycle. He agreed to the forfeiture of those vehicles during today’s plea hearing.
“Joe Caronna abused his clients’ trust and stole from them for his own gratification,” said U.S. Attorney Stanton. “Today’s guilty plea demonstrates to his victims that he is being held accountable and that justice will be served.”
This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service and the Bartlett Police Department. Larry Laurenzi represented the government.