Bonnie LaGiglio, who was found guilty of tax fraud after other charges were dismissed for lack of evidence, was ordered to serve a 3 ½ year term in federal prison for her part in the insurance fraud that bilked Cicero Ill. out of $12 million in a phony health insurance scheme (See IJ Website Jan. 2).
One of 7 defendants charged with participating in a plan to set up and run a phony insurance agency, which kept around $12 million paid by Cicero for town employees health insurance between 1992 and 1996, La Giglio was ordered to begin her sentence on April 1, and will serve two years on probation following her release.
The six other defendants, including former town president Betty Loren-Maltese, Michael Spano Sr., a reputed Cicero mob boss, and ex-Cicero police Chief Emil Schullo, were convicted on more serious charges of racketeering, and will be sentenced later this week.
LaGiglio claimed that she acted only as a “pawn” for her husband John, who established and managed Specialty Risk Consultants, the principal vehicle through which the fraud was conducted. Prosecutors were unable to prove that she participated directly in the scheme, but were successful on the tax fraud allegations, as she apparently spent most of the ill gotten gains.
Topics Fraud
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