FORMER DOMECQ PRES. SENTENCED TO 10 YRS. IN PRISON
The former president and co-owner of Domecq Importers Inc. of New York and Conneticut was sentenced to 10 years in prison for conspiring to commit tax fraud and to defraud Allied Domecq, the Department of Justice announced today. Michael Domecq, sentenced today in the U.S. District Court in Manhattan, will serve two consecutive 60 month sentences. Domecq will also pay more than $4.5 million in restitution.
Domecq, who was originally indicted on Sept. 5, 2000, pleaded guilty to the charges on June 26, 2007, in U.S. District Court in Manhattan. According to the indictment, Domecq and other top executives at Domecq Importers, with the assistance of certain outside vendors of advertising materials and services, diverted more than $14.6 million from Domecq Importers into their personal offshore bank accounts. The conspiracy took place from at least as early as 1989 until October 1995. Domecq and the co-conspirators also failed to pay income taxes on most, if not all, of the diverted money.
In accordance with the plea agreement, Domecq filed amended tax returns with the Internal Revenue Service (IRS) from 1989 through 1994, as well as original tax returns for 1995 though 2006.
It gets worse. Michael Domecq was extradited from the UK in 2007 following his 2006 arrest and conviction for possessing a false Spanish passport and illegally obtaining a United Kingdom driver's license. Formerly a resident of Greenwich, Conn., he moved to Spain in 1997 while the investigation was pending.
Three former top executives of Domecq Importers -- CFO Alfredo Valdes, VP of marketing Gabriel Sagaz, and VP of sales Thomas Kaminsky -- previously pleaded guilty to charges related to the same conspiracy. They were all sentenced to serve anywhere from 6 months to five years in prison, along with hefty fines and restitutions to the IRS.
Pernod acquired Allied Domecq in 2005, gaining brands like Stoli and Beefeater. Pernod then sold some brands to Fortune, including Sauza Tequila.
Domecq, who was originally indicted on Sept. 5, 2000, pleaded guilty to the charges on June 26, 2007, in U.S. District Court in Manhattan. According to the indictment, Domecq and other top executives at Domecq Importers, with the assistance of certain outside vendors of advertising materials and services, diverted more than $14.6 million from Domecq Importers into their personal offshore bank accounts. The conspiracy took place from at least as early as 1989 until October 1995. Domecq and the co-conspirators also failed to pay income taxes on most, if not all, of the diverted money.
In accordance with the plea agreement, Domecq filed amended tax returns with the Internal Revenue Service (IRS) from 1989 through 1994, as well as original tax returns for 1995 though 2006.
It gets worse. Michael Domecq was extradited from the UK in 2007 following his 2006 arrest and conviction for possessing a false Spanish passport and illegally obtaining a United Kingdom driver's license. Formerly a resident of Greenwich, Conn., he moved to Spain in 1997 while the investigation was pending.
Three former top executives of Domecq Importers -- CFO Alfredo Valdes, VP of marketing Gabriel Sagaz, and VP of sales Thomas Kaminsky -- previously pleaded guilty to charges related to the same conspiracy. They were all sentenced to serve anywhere from 6 months to five years in prison, along with hefty fines and restitutions to the IRS.
Pernod acquired Allied Domecq in 2005, gaining brands like Stoli and Beefeater. Pernod then sold some brands to Fortune, including Sauza Tequila.
posted at 12:22 PM
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