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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
Courthouse1 Suite 9200 I 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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