Wednesday, October 01, 2008

Frank Amodeo & Mirabilis: Will USA get $172 Owed From Mirabilis Founder Frank Amodeo?

Will U.S. get $172M owed from Mirabilis founder Frank Amodeo?
Rene Stutzman

Sentinel Staff Writer

September 24, 2008

Federal prosecutors on Tuesday got their man: Big-spending, high-living Frank L. Amodeo pleaded guilty to cheating the government out of $172 million in taxes.

But will the government get its money? That is an open question.

Amodeo's plea deal calls for him to surrender millions of dollars worth of assets, including homes, a jet, two luxury cars and everything owned by Mirabilis Ventures Inc., the company he was trying to build into a worldwide financial powerhouse.

But Mirabilis didn't plead guilty, Amodeo did. So the government's drive to be paid now shifts to bankruptcy court.

In May, the company filed for Chapter 11 bankruptcy protection. On Tuesday, Assistant U.S. Attorney I. Randall Gold filed paperwork asking a judge to throw Mirabilis out of bankruptcy court.

Mirabilis has about $60 million in assets, said its bankruptcy attorney, Elizabeth Green.

It also has creditors other than the federal government, and they've filed claims totaling $180 million.

Who should get what's left of the company? And is Mirabilis even entitled to bankruptcy protection? Those are issues now before U.S. Bankruptcy Judge Karen Jennemann.

Already, federal authorities have seized assets worth more than $13 million.

Amodeo, 48, appeared in federal court in Orlando and pleaded guilty to five felony counts: conspiracy, failure to pay taxes and obstructing an Internal Revenue Service investigation. He faces a maximum of 25 years in prison and fines that could top $360 million.

He remains free on $500,000 bond until sentencing. That hearing has not yet been set.

Amodeo admitted Tuesday to cheating the federal government out of $172 million worth of payroll taxes. The government says it was really $182 million, one of the biggest employment-tax-fraud cases in IRS history.

A former bankruptcy attorney, Amodeo created Mirabilis and began buying distressed companies, including those that provided payroll services and at least one that had serious tax problems.

According to his plea deal, Amodeo never got around to paying off that tax debt. The bigger crime, though, was ongoing: Mirabilis subsidiaries that specialized in payroll services collected federal withholding taxes but never passed them on to the IRS, according to the plea deal.

Tuesday's hearing lasted a painstaking two hours. Much of it was a section-by-section rehash by U.S. Magistrate Gregory J. Kelly of Amodeo's 37-page plea deal.

Did he understand that he could go to prison, the judge asked.

Did he understand each count and what he was admitting, the judge asked.

Yes, Amodeo answered.

Finally, the judge asked, "Sir, do you want to plead guilty because you are guilty or for some other reason?"

"Because I am guilty," Amodeo said.

The judge also asked several questions about Amodeo's mental health and medication. Amodeo suffers from bipolar disorder, a mental illness.

On Monday, defense psychiatrist Jeffrey Danziger testified that although Amodeo is mentally competent, he's still seriously mentally ill and believes that he will, at some point, dominate the world economy.

Defense attorney Harrison "Butch" Slaughter Jr. told the judge Tuesday that Amodeo was clearheaded. At times, during his two years of representing his client, Amodeo has believed he could forecast the future and telepathically communicate with people, Slaughter said.


Rene Stutzman can be reached at rstutzman@orlandosentinel.com or 407-650-6394.




Frank Amodeo & Mirabilis: Mirabilis Founder Pleads Guilty In Tax-Fraud Case

Mirabilis founder pleads guilty in tax-fraud case
Rene Stutzman

Sentinel Staff Writer

12:32 PM EDT, September 23, 2008

Orlando financier Frank L. Amodeo today pleaded guilty to defrauding the federal government out of at least $172 million in payroll taxes.

He remains free on $500,000 bond, awaiting sentencing.

It's not clear when Amodeo will be sentenced, but he faces a maximum of 25 years in prison and fines that could top $360 million.

Amodeo is the formerly high-flying entrepreneur who created Mirabilis Ventures Inc., a conglomerate that bought up distressed companies, including those that provided payroll services.

According to his plea deal, those subsidiaries collected payroll taxes but never passed them on to the Internal Revenue Service.

The federal government sets the amount of fraud at $182 million. Amodeo says he only kept $172 million. The rest, he contends, was legitimately earned fees.

Amodeo signed the plea deal yesterday, but U.S. Magistrate Gregory J. Kelly postponed until today a plea hearing.

That took place this morning in Orlando federal court.

Amodeo appeared, in a blue suit and his electronic monitor. He said he was clear-headed and understood everything that was going on.

That's important because he suffers from bipolar disorder, a mental illness. Yesterday one of his psychiatrists testified that although Amodeo is mentally competent to enter the plea, he's still seriously mentally ill and believes that he will, at some point, come to dominate the world economy.

Defense attorney Harrison "Butch" Slaughter Jr. said that at times, during his 2 ½ years of working with Amodeo, the defendant has believed he could forecast the future and could telepathically communicate to people.

Frank Amodeo & Mirabilis: Amodeo Set To Plead Guilty In Mirabilis Tax-Fraud Case

Amodeo set to plead guilty in Mirabilis tax-fraud case
Rene Stutzman

Sentinel Staff Writer

September 23, 2008

Frank L. Amodeo, the Orlando financial wizard who built Mirabilis Ventures Inc. into a multimillion-dollar conglomerate, signed a plea deal Monday and walked into court, ready to admit he was guilty.

But a federal magistrate would not accept his plea.

So Amodeo is to return to the same courtroom today. This time, U.S. Magistrate Gregory J. Kelly has indicated he will listen to the details.

In the plea deal, made public Monday, Amodeo admits to being one of the biggest employment-tax cheats in the history of the Internal Revenue Service. He has agreed to plead guilty to conspiracy, tax fraud and lying to obstruct an IRS investigation.

He could be sentenced to a maximum of 25 years in prison.

Amodeo, 48, puts the total owed the federal government at $172 million. Federal prosecutors, including Assistant U.S. Attorney I. Randall Gold, say the amount is just under $182 million. The total is something a judge will settle later.

Also to come later: Amodeo's sentence. But the plea deal spells out what Amodeo admits to doing and how he did it.

He assembled a group of companies, many involved in payroll services, and intentionally hung onto employee withholding taxes that should have gone to the IRS. He then used that money to buy more companies, many of them financially distressed.

Before Mirabilis began to unravel in 2006, it had become a conglomerate of approximately 70 companies.

Amodeo's goal, according to the plea deal, was to grow Mirabilis into a publicly traded company. Once that happened, he'd repay the IRS.

Amodeo was in court Monday. He said nothing to the judge, but one of his psychiatrists testified that Amodeo is mentally ill and delusional.

Dr. Jeffrey Danziger said Amodeo is bipolar, spent two weeks in a mental hospital in Massachusetts and has gotten better. He is competent to enter a plea but still thinks he eventually will achieve world-economic domination, Danziger said.

Amodeo realizes, Danziger testified, that he may spend several years in prison. He hopes it will be just five years, the psychiatrist said.

The former tycoon has cooperated with authorities for months. They already have seized, or Amodeo has surrendered, at least $13 million worth of property, including a Mercedes-Benz, BMW, jet and Harley Davidson.

How much the federal government can recapture was not clear Monday, but in the deal, Amodeo admits he owes at least $172 million and agrees to make full restitution.

A federal grand jury last month indicted Amodeo on 27 counts.

He could face a maximum of 370 years if he went to trial and were convicted on all counts.


Rene Stutzman can be reached at rstutzman@orlandosentinel.com or 407-650-6394.



Copyright © 2008, Orlando Sentinel

Frank Amodeo & Mirabilis: Ex-Mirabilis Businessman Frank Amodeo signs Plea Deal In Tax Fraud Case


Ex-Mirabilis businessman Frank Amodeo signs plea deal in tax-fraud case
Rene Stutzman
Sentinel Staff Writer
3:51 PM EDT, September 22, 2008

Frank Amodeo, the Orlando financial wizard who built Mirabilis Ventures Inc. into a financial powerhouse, today signed a plea deal and walked into federal court, ready to admit he was guilty, but a federal magistrate would not accept his plea.So Amodeo is to return to the same courtroom tomorrow. That's when U.S. Magistrate Gregory J. Kelly indicated he would accept the plea.Amodeo, 48, is expected to plead guilty to five felony counts, including conspiracy, failure to collect and pay taxes and obstructing an agency proceeding. He could be sentenced to a maximum of 25 years in prison.The plea deal, made public today, calls for Amodeo to forfeit $172 million to $182 million and several pieces of real estate, two luxury cars, a jet and a Harley Davidson.Amodeo is charged with cheating the IRS out of $182 million in one of the biggest employment tax fraud case in IRS history.Mirabilis controlled several payroll service companies that worked with small- and medium-sized employers. Those Mirabilis subsidiaries withheld from employees the appropriate amount of tax but didn't forward the money to the IRS, according to federal officials.Amodeo is charged with 27 counts that carry a maximum penalty of 370 years in prison and fines of $6.8 million.Amodeo was in court today. He said nothing to the judge, but one of his psychiatrists testified that Amodeo is manic depressive and delusional.Dr. Jeffrey Danziger said Amodeo is competent to enter a plea but still believes he will eventually achieve world economic domination. He realizes, Danziger testified, that he's about to enter a plea that may send him to prison for several years.Amodeo hopes, Danziger said, that it will just be for five years.

Frank Amodeo & Mirabilis: Businessman Frank Amodeo To Be Monitored Until Trial

Businessman Frank Amodeo to be monitored until trial
Rene Stutzman
Sentinel Staff Writer
September 3, 2008

Businessman Frank Amodeo surrendered to federal authorities Tuesday, and a judge ordered him released on $500,000 bond. Amodeo, 48, former head of Mirabilis Ventures Inc., was indicted by a federal grand jury last month, accused of failing to pay $182 million in payroll taxes. If the allegations are true, he is one of the biggest payroll-tax cheats in Internal Revenue Service history. Amodeo is to enter a plea Monday. Tuesday morning, he surrendered at the federal building in downtown Orlando. Tuesday afternoon, he made his first appearance before U.S. Magistrate Gregory J. Kelly. Assistant U.S. Attorney I. Randall Gold and defense attorney Harrison "Butch" Slaughter Jr. both recommended that Amodeo be released on $500,000 bond. Amodeo will be monitored by satellite, but during the next two or three days, until authorities can get him fitted, he is to live with his ailing 68-year-old father, who took out a $500,000 mortgage on his Orlando home to secure the bail bond. Once satellite monitoring begins, Amodeo is to live at his own Orlando home, Gold said. The government alleges that several payroll service companies that were subsidiaries of Mirabilis failed to forward tax withholdings to the IRS.

Frank Amodeo & Mirabilis: Former Head of Mirabilis Surrenders To Federal Authorites

Former head of Mirabilis surrenders to federal authorities
Rene Stutzman Sentinel Staff Writer
5:48 PM EDT, September 2, 2008

Businessman Frank Amodeo surrendered to federal authorities today, and a judge ordered him released on $500,000 bond.Amodeo, former head of Mirabilis Ventures Inc., was indicted by a federal grand jury last month, accused of failing to pay $182 million in payroll taxes. If the allegations are true, he's one of the biggest payroll tax cheats in Internal Revenue Service history.Amodeo is to enter a plea Monday.This morning, he surrendered at the federal building in downtown Orlando. This afternoon, he made his first appearance in this case before U.S. Magistrate Gregory J. Kelly.

Assistant U.S. Attorney I Randall Gold and defense attorney Harrison "Butch" Slaughter Jr. both recommended that Amodeo be released on $500,000 bail. The magistrate agreed.Amodeo will be monitored by satellite, but in the next two or three days, until authorities can get him fitted, he's to live with his ailing 68-year-old father, who took out a $500,000 mortgage on his Orlando home to secure the bond.Once satellite monitoring begins, Amodeo is to live at his own Orlando home.The government alleges that several payroll service companies overseen by Mirabilis failed to forward tax withholdings to the IRS.