Tag: sentencing
Pharmed Execs’ Sentencing Postponed
by admin on Dec.06, 2008, under Criminal defense news
The sentencing of former Pharmed executives Carlos and Jorge de Cespedes set for Thursday has been postponed so a federal judge can hear arguments on whether their crimes should be linked to calculate their sentences under the federal guidelines.
The difference could be significant – increasing to a possible sentence of more than 10 years from the almost five years, which is what the brothers expected.
Instead of holding a sentencing hearing, US District Judge Patricia Seitz in Miami will hear arguments on a prosecution request to link the brothers’ guilty pleas on wire fraud and tax evasion charges for sentencing purposes. She also will determine if an evidentiary hearing is needed.
The executives pleaded guilty lasts summer to charges filed separately by the US Attorneys office. Pharmed, a Doral-based medical supply company that was once one of the nation’s largest Hispanic-owned businesses, filed for bankruptcy protection.
The brothers admitted bilking Kendall Regional Medical Center of more than $5 million for supplies that were paid for but never delivered by Pharmed. Prosecutors say the executives were behind the scam, but the brothers say three hospital employees led the fraud.
Attorneys for the brothers also argue $20 million hidden by the duo from the IRS was not derived from the fraud and should be treated as a separate crime for sentencing purposes.
The brothers were expected to get about 4.5 year prison terms each, but only if the recommendation for each crime is calculated separately and only if Seitz imposes the sentences concurrently.
If the fraud and tax evasions crimes are calculated together, the guidelines stipulate a sentence of more than 10 years.
A joint motion by the defense and government asked to reset sentencing for late January or early February.
