September 5, 2003

PRESS RELEASE

IRS PRESENTS OVER $74,000 IN FEDERALLY FORFEITED FUNDS TO
BERKSHIRE COUNTY DISTRICT ATTORNEY'S OFFICE

Pittsfield, MA... United States Attorney Michael J. Sullivan; IRS Criminal Investigation Special Agent in Charge Joseph A. Galasso; Berkshire County District Attorney Gerard D. Downing, and Colonel Thomas J. Foley, Superintendent of the Massachusetts State Police, announced today that a check has been issued to the Berkshire County District Attorney's Office in the amount of $74,947.31, representing proceeds from a federal civil forfeiture of the illicit proceeds of a gambling operation. The forfeiture is the direct result of the cooperation between the U.S. Attorney's Office, Berkshire County District Attorney's Office, IRS Criminal Investigation, and Massachusetts State Police.

Giovanni Trotta, age 55, of 56 Chickering Street, Pittsfield, Massachusetts, was charged September 12, 2002, in a six-count indictment with money laundering and money laundering conspiracy. The indictment alleged that during the late 1990's, Trotta had income as a bookmaker, and attempted to conceal the source of the funds through a series of structured transactions to his E*Trade securities account. The indictment also alleged that Trotta conspired to engage in financial transactions intended to promote the gambling business.

According to affidavits filed in the case, the Massachusetts State Police, in March, 1999, intercepted and recorded a substantial number of telephone conversations relating to Trotta's illegal sports betting activities. In addition, the existence of Trotta's E*Trade account was uncovered. The government seized the E*Trade account in 1999. Analysis of the account by an IRS Special Agent showed five wire transfers to the account, totaling $42,000. According to the affidavit, the transactions appeared to be structured to avoid the filing of Currency Transaction Reports.

On May 29, 2003, Trotta pleaded guilty to one count charging him with filing a false income tax return. In addition, Trotta and the government also reached a settlement in a parallel civil case. Under the terms of the civil settlement, Trotta agreed to the forfeiture of $107,457.85 to the United States, which represented 80% of the total funds ($118,036.68) contained in the E*Trade account, along with 80% of the interest earned on the funds.
"In this instance, crime does pay – for law enforcement," stated U.S. Attorney Michael Sullivan. "Thanks to the cooperative efforts of federal, state and local law enforcement, Mr. Trotta's illegal profits will be put to good use at the District Attorney's Office."

"This is an outstanding example of the cooperation between federal and state law enforcement agencies," stated Joseph Galasso, Special Agent in Charge of IRS, Criminal Investigation in Boston. "There was a coordinated effort between the U.S. Attorney's Office, Berkshire County District Attorney's Office, IRS Criminal Investigation, and Massachusetts State Police to ensure that federal forfeiture remedies were available to deprive the guilty parties of the proceeds of their illegal acts."

"The forfeiture money could not have come at a better time. My office has been cut three times in the last two years, and we are presently operating at FY99 funding levels," stated District Attorney Gerard D. Downing. "We expect to use this to support training, equipment and investigative expenses for law enforcement. Much credit for the hard work belongs to Lt. Timothy Alben and his specialized Massachusetts State Police Unit, Lts. Joseph McDyer and Richard Smith of the Berkshire Detective Unit, First Assistant District Attorney David F. Capeless and the IRS Special Agents. It bears repeating that coordinated, multi-jurisdictional efforts can and do work to the mutual benefit of not only the agencies involved, but for the citizens who expect nothing less."

Additional information about tax fraud schemes can be found on the IRS Criminal Investigation website at: http://www.treas.gov/irs/ci

Press Contacts:
Steven Hickey, IRS Public Information Officer, at 508-793-0297
Samantha Martin, U.S. Attorney's Office Public Information Officer, at 617-748-3139