U.S. Dist. Chief Judge David A. Ezr sentenced Anthony G. DiPace to a term of imprisonment of 60 months after federal jury convicted him Feb. 8 of all 11 counts of mail fraud charged against him. Specifically, an indictment charged that DiPace executed a scheme to defraud the Hotel Union & Hotel Industry of Hawaii Pension Plan & Trust. Essentially, the indictment charged that DiPace lied about his credentials in an effort to be hired by the Pension Plan as its investment monitor. If DiPace had been successful in obtaining the position, it would have paid him in excess of $300,000 per year. DiPace also received a term of supervised release of three years and a special assessment of $850. Ezr also ordered DiPace to make restitution in the amount of $32,063 to Hotel Employees & Restaurant Employees Int’l Union Local 5.
U.S. Atty. Steven S. Alm and Billy Beaver, L.A. Reg. Director of the Pension & Welfare Benefits Admin. called the sentence appropriate for the type of misconduct engaged in by DiPace. They added that the Pension Fund had more than $200 million in assets and an expert witness called by the government testified that it would have been a disaster for the Pension Fund if it had hired DiPace. Alm and Beaver also stated that they hoped that this strong sentence would send a message to others who might hope to defraud pension funds protected by the federal government pursuant to the Employee Retirement Income Security Act. [USAO D. Haw., Media Release 2/23/01]