2003-04-14 -- Antolini III, Daniel A. and Peggy Lee Antolini -- Indictment -- News Release

Egg Harbor Couple Indicted in Connection with Bank Fraud Cash Structuring and Tax Evasion

TRENTON - A federal grand jury indicted the former owner of an automatic teller machine servicing company for bank fraud, cash structuring and tax evasion, in connection with a scheme to divert funds from customer banks for his own use, U.S. Attorney Christopher J. Christie announced.

Daniel A. Antolini III, 47, the owner and operator of Executive Cash Services (ECS) of Mays Landing, was charged with bank fraud, cash structuring and tax evasion. His wife, Peggy Lee Antolini, was charged with tax evasion in the same Indictment.

The defendants, who live in both Egg Harbor Township and Del Ray Beach, Fla., were not arrested today. They are scheduled to make initial appearances and be arraigned tomorrow, April 15, at 2:30, before U.S. District Court Judge Anne E. Thompson.

Count One of the six-count Indictment charges Daniel Antolini with bank fraud. According to the Indictment, Daniel Antolini owned and operated ECS. The company delivered cash to automated teller machines (ATMs) maintained by banks, savings and loans and credit unions located in New Jersey and elsewhere.

The Indictment states that ECS maintained an operating account which ECS deposited payments for services rendered and paid its expenses. The Indictment further states that ECS maintained a separate escrow account which customer banks deposited funds that ECS was to deliver to the customer bank's ATMs. Once the funds were deposited from the customer banks, via wire transfer or check, into the escrow account, ECS agreed to stock the customer bank's ATMs with the cash.

The Indictment states that from July 1995 to May 1997 Daniel Antolini executed a scheme to defraud customer banks of moneys by diverting funds deposited into the escrow account by customer banks to his own use. The Indictment states that on numerous occasions, Antolini diverted a total of $462,729 from the escrow account to his own use. On few of those occasions Antolini diverted a total of $185,000 from the escrow account into the operating account. The Indictment states that on September 20, 1995 he issued a $250,000 check drawn on the escrow account for the purchase of a gasoline station in Somers Point. Also according to the Indictment, on October 24, 1995, Antolini issued a $27,729.92 check drawn on the escrow account for the down payment on the purchase of an airplane.

According to the Indictment, ECS contracted to receive cash from CoreStates Bank for the purpose of replenishing CoreStates ATMs or bank branches. The Indictment states that the defendant had custody and control of more than $100,000,000 cash from CoreStates Bank and used some of these funds to replace funds taken from the escrow account which belonged to other customer banks.

Count Two of the Indictment charges Daniel Antolini purposely structured currency transactions with Commerce Bank and Sun National Bank for the purpose of evading the reporting requirements of deposits in amounts of $10,000 or greater. According to the Indictment, between Jan. 3 and Feb. 18 of 1998, Antolini deposited approximately $287,800 in 34 separate transactions.

Count Three through Count Six charge both Daniel and Peggy Antolini with tax evasion. Count Three charges that the couple's joint 1996 federal individual tax return failed to report approximately $112,402 in joint taxable income, upon which an additional tax of approximately $40,017 was owed. Count Four charges that the couple's joint tax return for the year 1997 failed to disclose approximately $33,470 in taxable income, with an additional tax liability of $9,721. Count Five charges that the couple's joint tax return for the year 1998 that claimed total income of $49,172 failed to disclose approximately $690,275 in taxable income, with an additional tax liability of $271,155. Count Six charges that the couple's joint tax return for the year 1999 reported only $24,943 in total joint income for the calendar year, failing to disclose approximately $227,637 in taxable income, with an additional tax liability of $78,295.

The charges in the Indictment against Daniel Antolini carry a maximum penalty of 55 years in prison and a $1,350,000 fine. The charges in the Indictment against Peggy Antolini carry a maximum penalty of 20 years in prison and a $400,000 fine.

An Indictment is a formal charge made by a grand jury, a body of 16 to 23 citizens. Grand jury proceedings are secret, and neither persons under investigation nor their attorneys have the right to be present. A grand jury may vote an Indictment if 12 or more jurors find probable cause to believe that the defendant has committed the crime or crimes charged.

Despite Indictment, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt, following a trial at which the defendant has all of the trial rights guaranteed by the U.S. Constitution and federal law.

Christie credited Special Agents of the Internal Revenue Service, Criminal Investigations, under the direction of Special Agent in Charge Anne D. Fahy, and the FBI, Newark Division under the direction of Special Agent in Charge Louie Allen.

Defense Attorney: Jerome A. Ballarotto, Esq. Trenton, New Jersey

William J. Hughes, Jr., Esq. Atlantic City, New Jersey