Ex-lawmaker Miranda admits fraud, tax evasion
Could face up to 25 years in prison
by Alia Beard Rau - Mar. 14, 2012 06:00 PM
The Republic | azcentral.com
Former Arizona Rep. Richard Miranda, who resigned from the Legislature last month citing family and health reasons, pleaded guilty Wednesday in federal court to felony wire fraud and attempted tax evasion.
The 56-year-old Democrat from Tolleson will be sentenced in June, and could face up to 25 years in federal prison for selling a Surprise building owned by a non-profit he ran and pocketing the money. He'll also likely have to pay several hundred thousand dollars in restitution to the non-profit, Centro Adelante Campesino Inc., and tens of thousands of dollars in unpaid federal taxes to the IRS.
"I have accepted all responsibility for my actions," Miranda said following the court hearing. "I would like to thank my family, friends and supporters in the community. I hope in the future I can overcome the hurt and disappointment I have caused."
Miranda was required to tell U.S. District Court Judge Roslyn Silver what crimes he had commited. Miranda said he falsified documents to indicate that he had authorization to sell a building the non-profit owned. He then illegally had one bank wire the money from the sale to an Arizona account belonging to the group. Miranda had also given himself sole control of the nonprofit's two bank accounts.
"I did not have the authority to sell the building, to acquire the monies," Miranda said. "The board never authorized the sale."
Miranda's attorney, Jose Montano, told the judge that Miranda took the plea because "we believe the likelihood of conviction is very high."
The plea suggests 21 to 27 months in prison, but Silver has the discretion to sentence Miranda to just probation or as many as 25 years.
Montano said he thinks probation is a possibility, but admitted jail time is also a possibility.
Miranda abruptly resigned from the Legislature on Feb. 16. According to the court, the resignation was part of his plea deal. He also had to resign from Centro Adelante Campesino and the Arizona Latino Caucus Foundation.
Weeks before, an individual from the IRS' criminal investigations division filed a public-records request with the Arizona Secretary of State's Office asking for Miranda's financial-disclosure reports for 2006, 2007, 2008, 2009, 2010 and 2011.
Lawmakers are required to file these reports each year, disclosing companies or organizations that paid them a salary, any property owned other than their primary residence and other business dealings.
Miranda refused to answer questions about why he did what he did. Montano denied that Miranda's actions were a violation of the public's trust.
"This was a personal matter," he said. "This had nothing to do with his job at the Legislature."
Montano said Miranda used the money from the sale on "personal debt."
"He was in debt. It was a crime of opportunity," Montano said. "He needed the money and he took it from the wrong place."