Judge tosses tax fraud charges from Jasiel Correia's conviction, but sends him a huge bill
FALL RIVER — Disgraced former mayor Jasiel Correia II was acquitted of two more convictions pertaining to his income tax filings, according to documents filed by Judge Douglas Woodlock on Monday. But the judge also gave the government the ability to seize more than half a million dollars of his assets.
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Woodlock has now thrown out 10 of the 21 counts of fraud and corruption of which Correia was convicted in May. Correia remains convicted of 11 counts: three counts of wire fraud pertaining to investments in his smartphone app company SnoOwl, and eight counts of extortion and extortion conspiracy related to a pay-to-play scheme he masterminded as mayor, taking money from marijuana businesses looking to open in Fall River.
On May 14, a jury also convicted Correia of four charges of filing false tax returns: two convictions resulting from his 2013 and 2014 income tax returns, and two resulting from amended 2013 and 2014 returns. The prosecution had argued that Correia knowingly provided false information on those returns, concealing income he had received from SnoOwl investors and disguising lavish personal expenditures as business expenses.
Correia's defense filed a motion after conviction arguing that the prosecution had not offered enough proof that any false information on those tax returns was done “willfully,” as opposed to due to negligence.
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During Correia’s sentencing, Woodlock agreed and tossed out the two tax fraud convictions for Correia's initial tax return filings. He took the other two convictions, for his amended returns, under advisement.
On Monday, Woodlock issued his final order, acquitting Correia of the other two tax fraud charges.
The acquittals won't affect Correia’s sentence. Correia is due to serve six years in federal prison with three years of supervised release.
No new trial for Jasiel Correia, but a big forfeiture order
Woodlock also denied Correia's motion for a new trial. Correia’s defense team of Daniel Marx and William Fick had argued that Correia was entitled to a new trial, saying that the SnoOwl and extortion parts of his trial should have been tried separately. They claimed that trying both portions of his case together improperly prejudiced the jury.
Also on Monday, Woodlock signed a forfeiture order allowing the government to take $566,740 worth of Correia’s assets.
The amount was determined by the U.S. Attorney’s Office, along with an IRS special agent who traced the funds used in Correia’s criminal enterprise. Property that can’t be located, was transferred or sold, or has diminished in value can be substituted with other property up to the value of the forfeited assets.
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With the forfeiture order, the federal government receives added powers to track down assets Correia may have hidden.
“With a forfeiture judgement, the government has the power to take depositions and subpoena records,” said Somerset attorney Steven Sabra.
"The government can keep trying to track down property that he might own," said professor Jonathan Gutoff of Roger Williams University, a legal expert on the subject of asset forfeiture. "The assets gained as a result of asset forfeiture form a not-inconsiderable part of the budget of the Department of Justice. It’s something they count on. This is something they have a real interest in doing effectively."
Dan Medeiros can be reached at dmedeiros@heraldnews.com. Support local journalism by purchasing a digital or print subscription to The Herald News today.