07-12-04 -- Antolini, III, Daniel A. -- Sentencing -- News Release

Armored Car/ATM Servicing Company Owner Sentenced to 7 Years in Prison for Fraud, Tax Evasion; Forfeits $3 Million

TRENTON - The owner of an armored car and ATM servicing company was sentenced to 84 months in federal prison today for his convictions on charges of wire and bank fraud, cash structuring and tax evasion, U.S. Attorney Christopher J. Christie announced.

In addition, Daniel A. Antolini, III, consented to forfeit $3 million to the United States, which constituted proceeds of the fraud scheme. As part of the forfeiture, Antolini forfeited a five-acre estate in Boca Raton, Fla., estimated to be worth $2.5 million, turned over checks totaling approximately $830,000, and two luxury automobiles.

U.S. District Judge Garrett E. Brown Jr. also ordered Antolini, 48, to serve five years of supervised release upon the completion of his prison sentence and to pay $15,000 in fines and restitution in the amount of $2,599,411.

Antolini the former owner and operator of Executive Cash Services (ECS), an armored car company located in Mays Landing and Hammonton, was convicted in a jury trial on Feb. 17, 2004, of five counts of wire fraud, one count of bank fraud, one count of structuring cash in amounts of less than $10,000 and two counts of tax evasion. The convictions were in connection with his scheme to divert funds from customer banks, including CoreStates Bank (now Wachovia Bank) for business expenses and his own use.

The case against Antolini, currently of Somers Point and formerly of Egg Harbor Township and Boca Raton, Fla., was tried by Assistant U.S. Attorneys Norv McAndrew and Marc-Philip Ferzan.

Antolini consented to forfeit $3 million to the government the day after he was convicted of the charges, rather than proceed before the jury in a separate proceeding on the government's demand for return of the criminal proceeds. As part of the forfeiture, Antolini liquidated $800,000 in a brokerage account in the name of his wife. Antolini also provided the government with an accounting of additional assets that could be liquidated, including the Boca Raton estate, a $75,000 luxury Cadillac sports car, and three horses.

The seven-week trial produced more than 40 witnesses and thousands of pages of documents admitted into evidence. According to the evidence presented at trial, between at least approximately January 1995 and December 1999, Antolini owned and operated ECS, an armored car company that delivered cash to automated teller machines maintained by banks, savings and loans and credit unions in New Jersey, Pennsylvania, Delaware, Maryland and elsewhere. ECS also had other business operations, including a check-cashing business.

In 1997 ECS entered into a contract with CoreStates Bank to replenish approximately 300 ATMs in New Jersey, Pennsylvania and Delaware. Between February 1997 and May 1997, CoreStates entrusted ECS with approximately $100 million cash to replenish CoreStates ATMs. However, according to the testimony of Joseph Gable, a former CoreStates senior vice president, within two months the relationship between ECS and CoreStates became strained and the contractual relationship was terminated. In winding down the arrangement, it was determined that several million dollars of CoreStates funds were missing and unaccounted for by ECS.

The government called approximately 36 witnesses at trial, including former employees of CoreStates Bank, who testified that at no time was CoreStates advised that during 1995 and 1996, Antolini had written checks and executed wire transfer totaling more than $1 million directly out of the Transit Account for business purposes other than replenishing Customer Banks' ATMs. The evidence presented demonstrated that Antolini used customer funds for the acquisition of an airplane, the acquisition of a gas station, and for investments into a Dean Witter Corporate brokerage account (now d/b/a Morgan Stanley).

In addition, from January 1998 through February 1998, Antolini engaged in structuring transactions to evade bank reporting requirements. Specifically, the Indictment described 34 deposits of less than $10,000 made by Antolini during the course of the two months. The total amount deposited by Antolini was approximately $287,800. Evidence also showed that Antolini instructed his wife, Peggy Antolini, to make two additional cash deposits in amounts of $9,000 into an account in her name, during this same time period. During trial, Antolini admitted on cross examination that he hid over $300,000 cash from CoreStates because CoreStates had filed a lawsuit in the Eastern District of Pennsylvania against ECS and Antolini personally.

Finally, evidence at trial demonstrated that Antolini failed to report income on his joint tax returns for calendar years 1998 and 1999. Antolini failed to report approximately $686,154 on his joint tax return for calendar year 1998. Approximately $569,800 went into bank and brokerage accounts in 1998; $80,500 of ECS money was used to pay for a 33 foot boat, and $12,360 in jewelry was paid for by ECS, while Antolini only reported a taxable in come of $49,172. Therefore, Antolini evaded $269,474 in personal income tax for calendar year 1998.

Antolini also failed to report approximately $278,428 on his tax return for calendar year 1999. Approximately $247,217 went into personal brokerage accounts in 1999; $14,290 of ECS money was used to pay the college tuition of his child at Villanova University; $7,000 of ECS money was used to pay for jewelry for and his wife, and $28,372 was charged on corporate credit cards. Therefore, Antolini evaded $98,646 in personal income tax for calendar year 1999.

Under U.S. Sentencing Guidelines, Judge Brown determined the actual sentence based upon a formula that takes into account the severity and characteristics of the offense and the defendant's criminal history, if any.

Parole has been abolished in the federal sentencing system. Defendants who are sentenced to custodial terms must complete nearly all of the sentence before being released.

Christie credited Special Agents of the IRS Criminal Investigations section, under the direction of Special Agent in Charge Patricia J. Haynes, and the FBI Newark Division, under the direction of Special Agent in Charge Joseph Billy, Jr.

Defense Attorneys: William J. Hughes, Jr., Esq. Atlantic City