October 11, 2002

ACCOUNTANT CHARGED WITH FABRICATING FINANCIAL DOCUMENTS USED TO DUPE INVESTORS IN DFJ ITALIA

 A certified public accountant who was hired to create phony financial records and tax documents for DFJ Italia was charged today in a federal case related to the scheme that cost investors approximately $45 million.
 Stephen A. Ceparano, 62, of Northport, New York, was named in a criminal information filed this morning in United States District Court in Los Angeles. The three-count information accuses Ceparano of conspiracy, mail fraud and wire fraud.
 In addition to the documents used to dupe investors in DFJ Italia, Ceparano is accused of fabricating personal and corporate income tax returns for DFJ Italia , related entities and company executives. The bogus documents were used in loan applications made to lenders such as Wells Fargo Bank and Cendant Mortgage.
 The false documents were used to apply for a business line of credit for DFJ Media Group in 1996 and a home loan for a DFJ Italia executive in 1998.
 The information alleges that Ceparano committed the fraudulent acts from 1995, when an unindicted co-conspirator who participated in the operation of the purported business entity known as DFJ Italia Ltd. relocated from New York to Southern California, until mid-1999. DFJ Italia ceased operation in March 2000.
 The case against Ceparano is the result of an ongoing investigation by the Federal Bureau of Investigation and IRS-Criminal Investigation.

 Release No. 02-148

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