Man convicted in tax scheme faints in court

A Canadian man appeared to faint in court Wednesday as U.S. District Judge Philip Pro was sentencing him to 30 months in prison for pulling off a fraudulent tax scheme worth more than $850,000.

While Pro was speaking from the bench, Gaetano Fiore, 52, who had been standing, slumped over and had to be helped up by his lawyer and U.S. marshals.

Paramedics were called to the courtroom, and Fiore was given some water and allowed to sit down, as Pro inquired about his health.

Fiore, dressed in jail garb and chains, said he felt dizzy and weak but was able to continue with the sentencing.

According to authorities, Fiore has had other apparent fainting spells in the case - once when federal agents arrested him 15 months ago in Chicago and again at his initial appearance on the charges before a Las Vegas magistrate a couple of weeks later.

Pro also ordered Fiore to pay $99,316 in restitution and serve three years of supervised release after he gets out of prison.

Paramedics arrived after the sentencing but determined that Fiore didn't need any medical attention.

Earlier, Fiore apologized to Pro, saying he used "extremely bad judgment" and was ready to accept "full responsibility" for his actions.

The Italian-born Fiore, who most recently lived in Montreal, pleaded guilty in January to two counts of receipt of stolen public money.

He admitted helping two people with Canadian addresses fraudulently obtain tax refund checks totaling more than $850,000, according to his plea deal.

Fiore caused the checks to be sent to an unidentified Las Vegas attorney with instructions for the attorney to deposit the checks in the attorney's escrow account and then wire the funds to an account in Panama, according to the plea agreement.

Fiore also admitted filing a fraudulent 2006 tax return seeking a $99,316 refund for himself.

"The essence of the scheme is the claim that individuals, even those living outside of the United States, can obtain tax refunds from the Internal Revenue Service through a convoluted and fraudulent process," the plea agreement said.

Defense lawyer Michael Gowdey told Pro on Wednesday that he brought a $99,316 check to court from Fiore to pay back the IRS in the hopes of getting less prison time for his client. The money came from a second mortgage Fiore's 87-year-old father had taken out on his home in Montreal, Gowdey said.

But Pro was not impressed.

"This is a serious crime that does cry out for a punishment that is meaningful," Pro said, adding that he didn't understand how people can think they're entitled to a tax refund from a country in which they had not paid taxes.

Afterward, Paul Camacho, special agent in charge of IRS-Criminal Investigation in Las Vegas, issued a statement praising the sentence Pro handed out.

"Let this be a lesson to anyone thinking they can outwit IRS criminal investigators by traveling in and out of the country," he said. "We relentlessly follow the money wherever it leads us. It's our Al Capone legacy."

Assistant U.S. Attorney Gregory Damm argued in court that Fiore had ties to the anti-government "sovereign citizens" movement. The group's members have declared themselves above the government's jurisdiction and not obligated to pay taxes.

Over the years, members have tried to disrupt government and other forms of authority by using "paper terrorism" tactics, intimidation, harassment and violence, law enforcement authorities have alleged.

Damm said several of the letters of support Fiore submitted came from people who appeared to be sovereign citizens.

But Gowdey insisted that Fiore was not part of the movement and had demonstrated that all along through his respect of the court process.

Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135.