Former Philadelphia Wholesale Produce Market CEO Sonny DiCrecchio was sentenced Monday to 10 years in federal prison and ordered to repay over $8 million to the market after he plead guilty to stealing millions from the market over several years..
The charges came almost three years after his departure from Philadelphia’s bustling Wholesale Produce Market, now located in Southwest Philadelphia.
The 60 year old DiCrecchio, from Voorhees, was charged with two counts of wire fraud, one count of conspiracy, one count of money laundering conspiracy, one count of aggravated identity theft and four counts of tax evasion. He’s was facing a possible 20 year sentence on several of the charges.
All stemming from a widespread $7.8 million fraud scheme uncovered in 2018 by the FBI agents who say DiCrecchio, the former President and CEO, used his complete power over the sprawling market to take millions for himself and his friends.
In a press release Monday, federal authorities said DiCrecchio defrauded the Market by using company funds to pay $1.9 million in rent on his Stone Harbor, New Jersey shore house; converting into cash $1.1 million in checks drawn on the Market’s bank account and using the cash for his own benefit; causing $1.7 million in checks to be issued from the Market operating account payable to his friends or relatives.
In addition, causing the Market to pay for the DiCrecchio’s personal credit card expenditures; converting $320,000 in checks that were payable to the Market and cashing them for his own benefit; skimming $2.6 million in cash from the pay gate at the Market’s parking lot, which he used to pay Market employees ‘under the table’ while keeping a substantial portion for his own use; and using Market funds to provide a $180,000 loan to a Market vendor, which the vendor repaid directly to DiCrecchio.
Prosecutors say the defendant concealed these expenditures in the Market’s books and records by directing that these payments be reflected as legitimate business expenditures, for example: notated as maintenance, snow removal, insurance, legal fees and other false expenditure entries.
DiCrecchio committed aggravated identity theft by cashing checks at a currency exchange using the name of an unwitting victim as the payee. Further, DiCrecchio conspired to engage in money laundering by agreeing with two unnamed individuals to conduct repeated money laundering transactions using money orders drawn on Market accounts and cashed at a currency exchange so that he could pay the rent at his shore house. In total, DiCrecchio laundered approximately $319,736 by purchasing money orders at the currency exchange using Market funds.
DiCrecchio also willfully evaded federal income tax over several years, by failing to report more than $2.1 million in income for tax years 2014 through 2017. DiCrecchio failed to report as income the proceeds of his fraud on the Market, as well as a car allowance, a pension allowance, and consulting income that he received from the Market.
“As the President and CEO, DiCrecchio had a fiduciary duty to steward the Philadelphia Wholesale Produce Market honestly,” said U.S. Attorney Jennifer Arbitter Williams. “Instead, he stole small amounts here and there from various sources over many years in an attempt to hide the enormous scale and severity of his fraud: a more than $7.8 million loss. Our Office is committed to prosecuting this type of complicated financial fraud so that justice can be served for all victims.”
“For years, Caesar DiCrecchio used the Philadelphia Wholesale Produce Market like his own ATM, to the tune of almost $8 million,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “I’d call that wholesale fraud. Holding DiCrecchio responsible for his crimes is imperative, to send the message that stealing business funds for personal use isn’t such easy money after all.”
“Instead of accurately filing and paying his fair share of taxes, Mr. DiCrecchio chose to hide his income and use his business as his personal ATM,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Justice has been served today, as Mr. DiCrecchio is sentenced to federal prison.”
According to the US Attorney, a bookkeeper at the 700,000 square foot market, Patricia Pumphrey, was also charged separately in this case.
DiCrecchio is also charged with using the name of an unwitting victim as a payee to cash checks. He faced charges for laundering money with two unnamed individuals by converting market funds into money orders at a currency exchange.
Williams announced the charges earlier this year saying “Complexity will not hide crime from law enforcement. Further, and as alleged here, nickel and dime theft, skimming small amounts here and there over many years, is just as illegal as stealing one large lump sum.”
FBI Special Agent Michael Driscoll said, “stealing business funds for personal use is fraud, plain and simple, and anyone padding their paycheck like this can expect a whole lot of attention from the FBI.”
While there is no mention of organized crime or the Mob in this case, it was investigated by the FBI’s Squad One, the Organized Crime Task Force, the IRS, and the Pennsylvania State Police.
Also charged in a separate criminal information was Thomas del Borrello, 42 of Sewell, N.J. He faces eight counts of aggravated false filing of currency transaction reports and aggravated failure to file a currency transaction report.
Del Borrello is a supervisor at United Check Cashing on South Broad Street in South Philadelphia where DiCreechio made financial trnsactions. Del Borrello allegedly caused the filing of false cash transaction reports, or CTRs.
He faces 90 years in prison if convicted and fines up to $4.5 million.
