Memphis, TN – Joseph G. Caronna, 48, of Cordova, TN, was sentenced today to 85 months in federal prison on four counts related to defrauding clients of his investment and insurance business, announced U.S. Attorney Edward L. Stanton III.
On February 26, 2013, Caronna pleaded to one count of mail fraud, two counts of insurance fraud and embezzlement, and one count of money laundering. U.S. District Judge S. Thomas Anderson ordered that his federal sentence run consecutive to his state sentence. Caronna is currently in state custody serving a life sentence, following his first-degree murder conviction for his role in the death of his wife, Tina. There is no parole in the federal system.
As outlined in the indictment, beginning in or about 2001 and continuing up to and including May 31, 2009, Caronna systematically embezzled money from insurance customers of his business, Joe Caronna Investments. He had the money diverted to private mail facilities where he obtained mail boxes in the names of his clients. The total loss to the victims was over $500,000.
It was revealed during his plea hearing that Caronna used the proceeds of his crimes to finance the purchase of a collection of sports cars and vehicles, including a 1971 Chevrolet Chevelle, a 1969 Corvette, a 1983 Porsche 911, a 1985 Porsche 930, a 1980 Chevrolet Corvette, a 2006 Hummer, and a 2002 Honda Blue Shadow motorcycle. He agreed to the forfeiture of those vehicles.
“Motivated by unscrupulous greed and deceit, Joe Caronna abused his position of trust to steal hundreds of thousands of hard earned funds from his clients, many of whom were his friends,” said U.S. Attorney Stanton. “Today’s prison sentence imposed by the Court underscores our unwavering commitment to bringing to justice individuals who engage in financial crimes, especially when they prey upon innocent and unsuspecting victims.”
This case was investigated by the United States Postal Inspection Service, the Internal Revenue Service and the Bartlett Police Department. Larry Laurenzi represented the government.