Former CFO of Not-For-Profit Organization Sentenced to 24 Months in Prison for Wire Fraud and Making a False Tax Return
Defendant Embezzled More than $1.3 Million from United States Council for International Business
Earlier today, United States District Judge Raymond J. Dearie sentenced defendant Paul Cronin to 24 months’ imprisonment at the federal courthouse in Brooklyn, New York. In May 2017, Cronin pleaded guilty to a criminal information charging him with one count of wire fraud and one count of making and subscribing a false tax return, in connection with his conduct as Chief Financial Officer (CFO) of United States Council for International Business (USCIB), a not-for-profit organization that advocates for international business and trade. As part of the sentence imposed by the Court, Cronin was ordered to pay more than $1.3 million in restitution to USCIB and $229,364 in outstanding taxes.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI), announced the sentence.
“The defendant abused his position as Chief Financial Officer of a not-for-profit by misappropriating the very funds he was charged with managing,” stated Acting U.S. Attorney Rohde. “Together with our law enforcement partners, this Office will prosecute individuals like the defendant to the fullest extent of the law.”
“Cronin didn’t serve his organization with honor; he instead engaged in criminal activity to the detriment of its cause,” stated FBI Assistant Director-in-Charge Sweeney. “Today’s sentence should send a message that this type of behavior won’t be tolerated, especially when those in positions of trust break the law.”
“Stolen money is taxable in the United States,” stated IRS-CI Special Agent-in-Charge Robnett. “Stealing money from an international business advocacy group and not paying tax on such income not only harms the citizens here at home, but has worldwide economic impact. Today Mr. Cronin has been held accountable, and the IRS is proud to share its financial expertise to such a far reaching investigation.”
As detailed in court filings, Cronin abused his position as the CFO of USCIB to misappropriate more than $1.3 million in funds to pay for personal expenses. Cronin perpetrated this scheme to defraud in several ways, specifically by using company funds to pay his personal credit card debts, writing checks from USCIB to himself, and making purchases on USCIB credit cards for personal purposes. In order to conceal his illegal scheme, the defendant falsified entries in USCIB bookkeeping records. Cronin further sought to conceal his criminal conduct by failing to report the embezzled funds as income to the Internal Revenue Service.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Alexander A. Solomon is in charge of the prosecution.
Daniel Island, South Carolina
E.D.N.Y. Docket No. 17-CR-190 (RJD)