Gino of SORCE comes Home

[AFTP]

What about Mark and Rob?

http://www.mailtribune.com/apps/pbcs.dl ... /812300309

An Ashland man accused of promoting tax-fraud schemes and deemed a flight risk by a U.S. District Court judge in Medford last September was released by a Florida federal judge last week.

Eugene "Gino" Casternovia will be allowed to prepare for his trial at home instead of from a jail cell, he said.

The U.S. Department of Justice contends Casternovia presented and sold tax-fraud schemes at various trade shows and conferences around the world, including a presentation for 400 people aboard a cruise ship in the Mediterranean in May 2007. He faces a possible 25-year prison sentence and $750,000 in fines if convicted of conspiracy to commit money laundering.

Casternovia, 60, denies all the allegations.

Casternovia spent Sunday afternoon hosting an open house for friends at his Ashland home on Crispin Street.

After spending the past 114 days incarcerated in various prisons across the nation, Casternovia said he is 30 pounds lighter — and relieved the Florida federal judge released him in time to make it home for Christmas, he said.

"The first thing I did was hug my wife," Casternovia said.

In September, U.S. District Judge Mark D. Clarke ruled that Casternovia, along with Rod Pendell of Ashland and Mark Lyon of Williams, were flight risks because they had successfully moved $3.4 million into offshore accounts, and an additional $1.2 million is unaccounted for.

Casternovia has said the money was spent on fees and business expenses.

The federal criminal injunction alleges Casternovia's company, Southern Oregon Resource Center Educational Services, worked as a vendor for a Florida-based company, Pinnacle Quest International, to promote the scams, which involved the use of fabricated offshore accounts to help customers conceal their assets.

Clarke ruled that the evidence presented by prosecutors shows the men say their permanent residence is Panama, and that they participated in an elaborate offshore tax-evasion scheme designed to defraud the U.S. government of income tax revenues.

Although he immediately appealed Clarke's decision, Casternovia was moved from the Jackson County Jail within days and traveled from one prison to the next — in Eugene, Portland, Seattle and eventually Tallahassee, Fla., he said.

It took 45 days to get from the Jackson County Jail to the Florida penitentiary, Casternovia said.

Other inmates told him the constant traveling is called "diesel therapy," he said.

"They said it's meant to break you down," Casternovia said.

Getting back home to Ashland was a lot faster. And life outside prison is a lot more pleasant, he said.

"The doors obey my commands and I can eat anything I want," said Casternovia.

Casternovia declined to discuss specifics of his case. Preparations for the January 2010 trial is being handled by a Florida public defender, he said.

"I have faith in him," Casternovia said.

Sunday was a day to be grateful to be home with family, and to thank those who have supported him, Casternovia said.

The home on Crispin Street in Ashland filled to overflowing with well-wishers. More than 30 people dropped by during the three-hour open house. Some of them had spoken at Casternovia's September hearing at the federal courthouse in Medford. Some held Bibles. Others hugged each other. One little girl clutched a tiny white teddy bear.

In September, Casternovia's wife, Kathryn, and their daughter, Amanda, had wept and stood as Clarke ruled that the men would remain in custody and marshals escorted the prisoners out of the courtroom.

Sunday they were all smiles.

"I'm glad my father's home," said Amanda Casternovia.

Jeff Golden, an Ashland author and former county commissioner, spoke in court before Clarke's ruling. Saying he had no knowledge of the specifics of the allegations, Golden praised Casternovia's connection with the Ashland community and said he was a "model employer."

Casternovia and his wife have lived in Ashland for 25 years and owned the now defunct Northlight vegetarian restaurant and the Rainforest Cafe.

Golden was among the many well-wishers at the Casternovia home Sunday afternoon.

"I'm feeling great. Really great," Casternovia told Golden.

Casternovia said he is hoping "for justice." He is also hoping his friends' loyalty would not cause them to "become targets of prosecution," he said.

"It's been stressful. The hard part was seeing my friends stand up and defend me and expose themselves," Casternovia said.

Reach reporter Sanne Specht at 776-4497 or e-mail sspecht@mailtribune.com.

[wserra]

they had successfully moved $3.4 million into offshore accounts, and an additional $1.2 million is unaccounted for.
....
Preparations for the January 2010 trial is being handled by a Florida public defender

The docket wasn't helpful as to how that happened. Casternovia's financial affidavit was filed but sealed, as it should be. It always pegs the irony meters when tax dollars pay for the defense of someone who teaches tax evasion.