United States Attorney Brendan V. Johnson announced that Edward J. S. Picardi, age 56, a former Rapid City surgeon who resides in Sturgis, South Dakota was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court, on May 7, 2013.
Picardi was previously convicted of 13 separate counts, including five counts of tax evasion for years 1999 through 2003; five counts of making false statements on each of his tax returns for years 2004 through 2008; and three counts of failing to file required reports with the United States Treasury Department in 2007 through 2009 disclosing his interest in foreign accounts.
Picardi received the statutory maximum sentence of 60 months in custody for Counts 1-5 of tax evasion; 36 months for Counts 6-10 of making false statements; and 60 months for Counts 11-13 of failing to file required reports. The sentences will run concurrently for a total of 60 months in custody. He also received 1 year of supervised release and was ordered to pay a $1,300 special assessment fee.
"Dr. Picardi's attempt to hide his assets wasn't tax planning, it was criminal activity. This prosecution serves notice that individuals who seek to cheat their fellow American taxpayers will be fully investigated, prosecuted and subjected to the full punishment of the law for their actions," said U.S. Attorney Johnson.
On October 5, 2012 following a multi-week trial, Picardi was convicted by a federal jury after hearing evidence that he sent his earnings through a complicated offshore network. His earnings passed through a web of entities organized under the laws of Ireland, Hungary, Cyprus, Isle of Man, Jersey, and Guernsey. The money was ultimately deposited into various foreign accounts that Picardi controlled through a New Zealand trust, in the name of a corporation set up for him in Nevis, a Caribbean island. Through these offshore transactions, Picardi attempted to hide his income and evade over $1 million in taxes.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service and prosecuted by Assistant U.S. Attorney Kevin Koliner.
Picardi is to report to the U.S. Marshal on May 14, 2013 to begin serving his sentence.