| FOR IMMEDIATE RELEASE September 8, 2009 WWW.USDOJ.GOV/USAO/CAN |
OAKLAND, Calif. – Brice Carrington pleaded guilty in federal court Friday to wire fraud and tax evasion as part of an investment fraud scheme, United States Attorney Joseph P. Russoniello and Special Agent in Charge, IRS Criminal Investigation, Scott O’Briant announced.
In pleading guilty, Carrington admitted that he devised a scheme for obtaining money by false or fraudulent pretenses. To carry out his scheme, he falsely represented to investors that he was a three-time Oscar winning sound effects designer who was well-established in the entertainment industry and had been involved in many Hollywood productions. To add credibility to his claims, Carrington paid a jeweler to make an Oscar statuette. He then used that statuette, along with an additional fake statuette, to lure investors into investing money. Carrington displayed the fake Oscar statuettes and photographs of himself with the fake Oscar statuettes in his home during investor fund raising parties. To further his scheme, he used investors’ money without their knowledge to purchase three vehicles: a Lamborghini Murcielago, a Hummer H2 and a Mercedes SL 500R. These vehicles were used as props to help lure new investors into investing money with him.
Carrington admitted that he entered into written and oral agreements with at least ten investors, promising them double and even triple returns on various sound effects design projects. Between 2001 and 2005, Carrington received approximately $4,042,480 from investors but used nor more than $430,000 of those funds towards designing sound effects. He used a substantial portion of the investors’ funds for personal expenses although the agreements did not allow for that use.
Carrington also admitted that he failed to report $581,500 in gross receipts on his 2003 tax return. Instead he filed a false Form 1040 reporting zero taxes owed.
Carrington, 46, of Ojai, Calif., formerly of Pleasanton, Calif., was charged by a criminal information on August 4 with five counts of wire fraud in violation of Title 18 U.S.C. § 1343 and four counts of tax evasion in violation of Title 26 U.S.C. § 7201. Under the plea agreement he pled guilty to one count of each.
Carrington has agreed to a prison term of 48 months and restitution of $4,184,367. Carrington has also agreed to forfeit his interest in the Lamborghini, Hummer and Mercedes.
The defendant’s next scheduled appearance is at 10 a.m. on Jan. 8, 2010, for sentencing before Judge Jensen.
The maximum statutory penalty for each count of wire fraud in violation of Title 18 U.S.C. § 1343 is 20 years in prison and a fine of $250,000. The maximum statutory penalty for each count of tax evasion in violation of Title 26 U.S.C. § 7201 is five years in prison and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Moore is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service – Criminal Investigation.
Further Information:
Case #: CR-09-0791-DLJ
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