A month ago, we opined that J. Garvan Murtha, Chief Judge of
the U.S. District Court, Vermont, seems far too lenient to lawyer-
felons. We gave examples from two recent cases.
Well, he’s done it again, in the Andrew J. Capoccia Debt Reduction
fraud case — giving a one-month sentence to Thomas J. Daly, who
was one of the three main actors in a scheme that has left thousands
of clients with ruined financial histories and over $25 million in futile
claims for misappropriated monies by the Capoccia Law Centers of
Albany, N.Y., and (after Capoccia’s disbarment), its successor Law
Centers of Consumer Protection, in Bennington, Vermont.
The Rutland Herald reported yesterday (“Lawyer Admits Guilt in
Fraud,” Feb. 2, 2006):
“A former lawyer for a bankrupt debt-reduction firm in Bennington
is heading for a month in federal prison on fraud and tax evasion
charges. ‘I am so sorry,’ Thomas J. Daly, 44, of Bennington, told
Judge J. Garvan Murtha on Wednesday in U.S. District Court in
Rutland. ‘I did commit these crimes. I’m sorry for it’.”
” ‘You certainly played a role in the victimization of the people who
depended on you to do something for them'” Murtha told Daly . .
“The judge then sentenced Daly to one month in prison followed
by three years of supervised release, with three months of that time
to be served on house arrest. In addition, Daly was ordered to pay
$200,000 restitution.
“emptypocketsS”
“In his plea agreement, Daly acknowledged that he accepted nearly
$200,000 in bonuses — in addition to his $200,000 salary — at a
time when clients were demanding refunds of at least $1 million and
creditors of the firm were seeking even more.
“The money for the bonuses came from an escrow account and the
firm’s general accounts. According to federal prosecutors, Daly knew
or should have known that the firm was not capable of supporting those
payments, given that the firm had been embezzling client money to pay
its day-to-day expenses.”
As with the sentencing of his disbarred co-conspirator Howard Sinnott in
December, Daly’s role in this complicated, well-planned rip-off of consumers
who were trying to avoid bankruptcy (and the subsequent hiding of millions of
dollars sought by NYS and the federal government to compensate the victims
and creditors), was blamed on a personal flaw. Here, Daly’s defense counsel
told the court “that his client’s life had been ravaged by alcoholism, contributing
greatly to his legal problems.”
According to today’s Albany Times Union, Andrew J. Capoccia the disbarred
mastermind of the debt reduction scheme (explained in a prior post), is expected
to be sentenced today by Judge Murtha. (“Capoccia faces sentencing today,”
Feb. 3, 2006). Although Capoccia, who was convicted after trial last year,
could receive up to 20 years, Judge Murtha’s wrist-slaps to his co-conspirators
suggests we may see more “professional courtesy” mercy. We’ll keep you
apprised.
update (Feb. 3, 2006): See Capoccia gets 15 years for swindling clients .
“snowflakeS” For better judgment, consider the haiku and
senryu of our Honored Guest buddy Ed Markowski:
roller coaster
we have no advice
to offer the newlyweds
county fair…
the downcast eyes
of a blue ribbon steer
midwinter dusk
a fireman turns
to face the flames
“midwinter dusk” – Mainichi Daily (#680, Feb. 2, 2006)
February 3, 2006
more misplaced mercy from judge murtha
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