2002-02-08 - Richardson, John F. - Guilty Plea - News Release
NEWARK - Former Somerset County Superior Court Judge John F. Richardson pleaded guilty today, admitting that he failed to maintain records relating to his receipt of cash from a client in amounts in excess of $10,000, U.S. Attorney Christopher J. Christie announced.
Richardson admitted receiving in excess of $160,000 in cash from a client that was deposited into his attorney trust account in connection with the purchase of real estate, Assistant U.S. Attorney Perry Carbone said.
Richardson, 59, pleaded guilty today to a one-count Information, charging failure to maintain tax records, before U.S. Magistrate Judge Stanley R. Chesler.
Although the conduct charged in the Information occurred while Richardson was in private law practice, he agreed under terms of a plea agreement to resign from his judicial post. Richardson submitted a letter of resignation on Monday.
"Our office will be vigilant in enforcing the law to ensure that attorneys privileged enough to hold a position of public trust obey the law," Christie said.
"Lawyers in particular should know that they have a strict obligation to comply with the law, including the reporting of large cash transactions," said Christie. "Attorneys should take notice that there are consequences for failing to abide by this requirement."
According to the Information, when specific trades or businesses receive cash in amounts of more than $10,000 relating to a single transaction, the Internal Revenue Code requires that such trades or businesses file a report with the Internal Revenue Service. The reports specify the individual from whom the cash was received, the person on whose behalf the transaction was conducted, the description of the transaction and method of payment, and the business reporting the transaction. Lawyers are required to file such forms, known as Form 8300s, with the IRS so that large cash transactions can be tracked.
Richardson represented a client, who is unnamed in the Information. Richardson admitted that between September 1998 and December 1998, he received in excess of $160,000 in cash from the client that was later used in a real estate transaction. Richardson admitted to wilfully failing to maintain a Form 8300 which would have disclosed the transaction to the IRS.
When he is sentenced by Judge Chesler, Richardson faces a maximum sentence of one year in prison and a $25,000.00 fine, together with the costs of prosecution. Judge Chesler set sentencing for May 21 at 10:00 a.m.
Under U.S. Sentencing Guidelines, Judge Chesler will determine Richardson's actual sentence based on a formula that takes into account the severity and characteristics of the offense and Richardson's criminal history, if any.
Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.
Richardson remains free until sentencing on a $10,000 personal recognizance bond.
Christie credited special agents of the IRS Criminal Investigation section, under the direction of Anne D. Fahy, Special Agent in Charge; and Postal Inspectors of the U.S. Postal Inspection Service, under the direction of Kevin Burke, Postal Inspector in Charge in Newark, with developing the case against Richardson.
The Government is represented by Assistant U.S. Attorney Carbone of the U.S. Attorney's Office Special Prosecutions Division in Newark.
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Defense Attorney: John McDonald, Esq., Somerville