NEW YORK — Damian Williams, the United States Attorney for the Southern District of New York, along with officials from the Justice Department’s Tax Division, the FBI, the IRS-CI, and the DOL-OIG, announced the arrest of five defendants on charges related to a long-running embezzlement and tax fraud scheme. The individuals arrested are Mark Angarola, Allison Angarola, Jose Garcia, Michelle Cox, and Lisa Mincak.
The indictment alleges that from May 2010 to February 2019, the defendants executed a scheme to unlawfully enrich themselves by submitting fraudulent invoices and expenses to an IT services company. Mark Angarola, employed by the company in a senior position, is accused of orchestrating the scheme, which involved hiring unqualified individuals, including family members and friends, for no-show jobs and falsely reporting expenses.
The fraudulent activities reportedly included charging personal expenses such as restaurant meals, hotel stays, transportation fees, a cruise, and visits to gentlemen’s clubs to the company. The total amount embezzled exceeds $7 million. Additionally, three defendants—Mark Angarola, Garcia, and Cox—are charged with tax fraud for failing to report income from the scheme to the IRS.
Mark and Allison Angarola were arrested earlier this week in Point Lookout, New York, and presented in Manhattan federal court. Jose Garcia and Michelle Cox surrendered today and will also be presented in the same court. Lisa Mincak was presented in the Eastern District of Texas.
U.S. Attorney Damian Williams emphasized the brazen nature of the scheme and the commitment of his office to prosecuting financial fraud. FBI Assistant Director James Smith highlighted the deceit involved in the scam, and IRS-CI Special Agent Thomas M. Fattorusso noted the elaborate web of lies created by the defendants.
The charges against the defendants include wire fraud, wire fraud conspiracy, tax evasion, and failure to file individual income tax returns. The statutory maximum sentences for these charges range from one to twenty years in prison. However, these are merely accusations, and the defendants are presumed innocent unless proven guilty.