Middlesex County, N.J., Dermatologist Charged With Structuring Nearly $850,000 in deposits to avoid reporting requirements
FOR IMMEDIATE RELEASE
May 8, 2014
NEWARK, N.J. - A dermatologist with a medical practice in East Brunswick, N.J., was charged today for allegedly structuring nearly $850,000 by intentionally purchasing numerous money orders for amounts below what would trigger a financial institution’s IRS reporting requirements, U.S. Attorney Paul J. Fishman announced.
Sandy S. Milgraum, 60, is charged in a criminal complaint with one count of conspiring to structure financial transactions to evade currency reporting requirements. Milgraum made his initial appearance in Newark federal court this afternoon and was released on $300,000 bail.
According to the complaint filed in this case and statements made in court:
Milgraum is a licensed and board-certified dermatologist who operates the Academic Dermatology Laser Surgery Center in East Brunswick. From January 2005 through August 2010, Milgraum and others acting at his direction purchased approximately 1,280 money orders and monetary instruments totaling at least $846,092.92.
Each money order was purchased below the $3,000 limit that would require a financial institution to file a Cash Transaction Report with the IRS and disclose the identity of the individual who conducted the transaction, as well as the individual or organization for whom the transaction was completed.
Milgraum and others purchased money orders from various venders including MoneyGram, Western Union, Bank of America and the United States Postal Service and then used them to make mortgage payments, credit card payments, business payments and other personal payments, including payments for various credit card debts incurred by a romantic partner of Milgraum’s.
The charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates, with the investigation leading to the charge.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Michael H. Robertson of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
Defense counsel: Joseph J. Benedict Esq., New Brunswick, N.J.