Episode 9: The Fall of Steve Martinez: From IRS Employee to Convicted Con Artist Part 2

Tax Crime Junkies

This episode tells the second half of the story of Steve Martinez, an IRS employee turned con artist who committed fraud and tax evasion, and even attempted to hire someone to murder witnesses against him. Martinez made outrageous requests to the court, including asking for permission to go on a Disney cruise with his family, and later claimed he had Asperger's syndrome to avoid responsibility for his actions. He was ultimately sentenced to 24 years in prison and ordered to pay $14 million in restitution. Dom and Tom are back to discuss the consequences faced by Martinez's friends who had signed his bond, including foreclosure proceedings and legal fees.

Talking Points:

• January 2012, Steve’s ankle monitor is removed and he experiences freedom on a Disney Cruise with his family. He decides he’s not going back to jail at any cost, even if that cost is murder.
• When he returns home, he begins to stalk some of the witnesses on his case as he schemes.
• March 2012, Steve slips out early in the morning and goes to the house of Ray, his former gardener. He brings 4 packages filled with documents containing personal identifying information on four individuals, including MaryAnne Harmon and Monique Segal. Steve offers to make Ray rich if he helps him out. He recommends using a silencer and two separate guns, offering to pay him part of the money up front - specifically the $40,000 in cash he had previously given to his limo driver Norman for safe keeping.
• Ray does not take the bait and instead decides to turn the information over to the FBI.
• Recordings are obtained of Steve’s murder-for-hire scheme. Are they too prejudicial to be used?
• Steve’s defense attorney argues that Steve cannot be held accountable for his actions because he has Asperger’s syndrome.
• April 2013, Steve takes a plea deal. 27 people, including Steve’s wife, children, and many clients, show up to support him at his sentencing. They do not believe the charges against him.
• Steve is sentenced to 286 months in prison, $14 million in restitution, and a 500 hour drug program
• His friends who had signed off on his bond are now on the hook for Steve violating the conditions. One friend had put his house up as collateral to secure the bond. The court decides to enforce the lien against the house. The court holds Steve’s other friend, the one who had not been willing to put his house up as collateral, responsible for the ½ million dollar bond. They request that the court remit the forfeiture. Eventually the friends are released of all but $13,000 of the bond.
• Dom does some digging and finds out that back in 1989, Steve’s defense attorney was also disbarred for stealing money from clients!

Podcast production and show notes provided by HiveCast.fm