Federal Judge John Grady has delivered stiff sentences on the convicted perpetrators of a $12 million insurance fraud scheme in Cicero. Reputed local mob boss Michael Spano Sr., whom prosecutors charged with masterminding the fraud, received the harshest sentence, more than 12 years, and was ordered to make restitution of $11 million.
Ex-Cicero town President, Betty Loren-Maltese, who participated in the scheme with her deceased husband, received an 8 year and one month sentence, was fined $100,000 and ordered to make restitution of some $8 million.
The group was charged with setting up a phony company, Specialty Risk Consultants, to handle health claims for Cicero municipal employees. Federal prosecutors charged that between 1992 and 1996 the group diverted some $12 million from town coffers to their own accounts, financing, among other things, a horse farm and a casino.
Earlier in the week Judge Grady sentenced Bonnie LaGiglio, the wife of deceased defendant John LaGiglio, who administered Specialty, to three-and-a-half years in prison for her role in the scheme (See IJ Website Jan. 6). Spano’s son, Michael Jr. received a six-and-a-half year sentence, and was ordered to repay $11 million. Former Cicero public safety director Emil Schullo received a 6-year prison term, and was ordered to make restitution of $6 million.
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