A federal judge in Albany, N.Y. has sentenced a stockbroker on April 12 for stealing more than $400,000 from a union employee benefit fund.U.S. Senior District Judge Thomas McAvoy ordered Anthony DiPace, 47, to serve a prison term concurrent with his 2 ½ year sentence received in January 2004 on a separate conviction for mail fraud in Hawaii.
Anthony DiPace was found guilty of stealing $314,000 from a union benefit fund on Sept. 17.His sentencing has been set for Jan. 15. In Albany, DiPace was convicted of 11-counts incl. embezzlement, fraud and the unlawful collection of commissions between 1993 and 1996 when he was manager of the health and welfare plan of Laborers Intl. Union of North America Local 190.
DiPace stole $314,000 from the union in a series of financial trades through a private brokerage involving excessive commissions. Prosecutors said he violated federal rules that prohibit investment managers from also acting as brokers. An expert witness testified that the 2.09 percent average commissions DiPace charged the union was 16 times higher than the national average.
An union investment manager accused of stealing $314,000 from a laborers union pension fund -- by concealing commissions he made on stock and bond trades -- will now face a federal jury four years after his indictment.Anthony DiPace's embezzlement and wire-fraud trial begins Sept. 14 in Albany before U.S. Dist. Judge Thomas McAvoy (N.D., NY, Reagan).The trial follows two failed requests to dismiss the charges in both U.S. Dist. Court and the 2nd Circ. Ct. of Appeals in Manhattan.
Anthony DiPace, a union investment manager, was indicted Dec. 18 on embezzlement and wire fraud charges for allegedly stealing $314,000 from a union's pension fund by concealing commissions he made on dozens of stock and bond trades. From 1988 to 1996, DiPace managed the health and welfare plan for the Laborers Int'l Union of N. Am. Local 190 in Glenmont, N.Y.
While managing the fund, DiPace allegedly executed a series of trades through his private brokerage practice, Direction Planning. DiPace allegedly collected commissions on the trades without the fund's trustees' knowledge, violating federal rules that bar investment managers from acting as brokers in order to avoid potential conflicts of interest. The trustees paid DiPace to manage the fund based on a formula they had established.