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U.S.
Department of
Justice |
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United
States Attorney |
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Main Reception (617)
748‑3100 |
Unites States Courthouse Suite
9200 1 Courthouse
Way Boston. Massachusetts
02210 |
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January 27,
2000 |
PRESS
RELEASE
FORMER LABOR UNION PRESIDENT
CHARGED AND AGREES TO PLEAD
GUILTY TO DEFRAUDING RHODE
ISLAND AND MUNICIPALITY OF
APPROXIMATELY
$100,000
IN
TAXES
Boston, M.A... The former
General President of the Laborers' International Union of North America (LIUNA)
has been charged in an Information with engaging in a scheme to defraud the
State of Rhode Island and the Town of Barrington, Rhode Island, of approximately
$100,000 in taxes. He has agreed to plead guilty to the
charge
Donald K, Stern, United
States Attorney for the District of Massachusetts and John R. McGlynn, Regional
Inspector General for Investigations of the U.S. Department of Labor's
Division
of Labor Racketeering, announced
today the filing
of a one-count Information charging ARTHUR A.
COIA, age 56, of Payne Road, Barrington, Rhode Island, with mail fraud in
connection with the scheme, and a plea agreement.
The Information alleges that
from 1991 through 1997, COIA, with the assistance, of a group of
automobile businesses operating under the name of Viking, purchased various
expensive Ferrari automobiles that ranged in price from $215,000 to $1,050,000.
The Information further alleges that COIA, with the assistance of
Viking, engaged in a scheme to defraud Rhode Island of
taxes due and owing on the purchase of those automobiles, and Barrington of taxes due and
owing on
the possession
of those automobiles.
The Information specifically
alleges the following:
-In
1990, COIA purchased a 1972 Ferrari Daytona for $1,050,000, from a
dealership in Florida. In 1993, COIA fraudulently registered The Daytona to
Viking's address in Middletown in order to avoid paying the higher excise tax
rate to Barrington, where COIA lived and the car was actually garaged. As a
result of this scheme COIA defrauded Barrington of $57,865.01 in
taxes.
-In
1991, COIA purchased a 1991 Ferrari F‑40 in Viking's name for $450,000,
from a.
dealership in Cohasset,
Massachusetts. lie then purchased the F-40 from Viking some two years later for
$275,000. Although the State of Rhode
Island
imposes
a
7% use tax on
the purchase of all automobiles, COIA never paid any use tax whatsoever
on the purchase of the F-40, thereby defrauding the State of
$19,250.
In 1993, COIA purchased a 1973 Ferrari 365 GTB4 for
$215,000, from a dealership in California. Shortly after purchasing the vehicle,
COIA used a fraudulent invoice from Viking, which falsely stated that he
had purchased the car for $2,160, to register the Car in Rhode Island. By using
the fraudulent invoice, COIA was able to pay Rhode Island a tax of 7% of $2,160,
or $151.20, rather than the $15,050 tax that he properly owed. In
addition,
COIA again registered the car to Viking's address in
Middletown to avoid paying
the higher
excise tax
in Barrington,
As a result of this
fraudulent registration COIA defrauded Barrington of an
additional $7,632.98 in excise taxes
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In the plea agreement filed
today, COIA and the government agree
to recommend a two year
term of
probation, restitution to Rhode Island and Barrington of the approximately $
100,000 in taxes owed by COIA, and a $10,000 fine In addition, as part of
the plea agreement, COIA agrees to be barred from
any future role
in LIUNA or its subordinate entities in any capacity, and to be barred from
being an employee of any other union for a period of five years COIA
retired as General President of LIUNA on January 1, 2000; he now serves
in an
honorary
position that involves no service as a consultant or advisor. The plea agreement
is subject to approval by the Court.
U.S. Attorney
Stern
stated that:
"While holding Important leadership positions at LIUNA including the office of
the General President, Mr. Coia engaged in an extensive scheme to cheat Rhode
Island and Barrington of approximately $100,000 in taxes. Although he spent well
over a million dollars on Ferrari automobiles, Mr. Cola repeatedly found ways to
shirk his duty to pay his taxes."
The case was investigated by the
U.S. Department of Labor's Division of Labor
Racketeering and the Office
of Labor Management Standards. The case
is being prosecuted
by
Assistant U.S. Attorneys
Alex Whiting of Stem's Public Corruption and Special
Prosecutions
Unit
and Ernest S. DiNisco of Stem's Organized Crime
Strike Force Unit..
Press Contact- Samantha
Martin, (617) 748-3139
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