Saturday, October 12, 2002
CPA loses license
By John Milgrim
ALBANY The Norwich accountant convicted in July for his part in a $2.8 million federal tax fraud case has lost his license to do business in the state.
James M. Broten, 41, with offices in Norwich and formerly in Cooperstown, surrendered his license to practice as a certified public accountant. His action settled a professional misconduct charge brought against him by the state Board of Regents, the state office in charge of granting professional licenses.
The misconduct charge was based solely on Broten's criminal charges. His license surrender was accepted at the Oct. 3 meeting of the board.
Broten and two others were convicted in Utica on July 23 following a seven-day jury trial before U.S. District Judge David N. Hurd.
U.S. Attorney Joseph A. Pavone previously said the men were involved in a scheme involving 57 fraudulent federal income tax returns and 35 fraudulent state returns, which totaled about $2.8 million in refunds.
Broten was convicted of conspiracy to violate federal law, 38 counts of filing false federal income tax returns, two counts of theft of government funds, eight counts of submitting false documents to the U.S. Postal Service and five counts of mail fraud.
He faces a maximum of five years in prison for each of the conspiracy, false claims, false documents and mail fraud counts, and a maximum of 10 years on each of two convictions for the theft of government funds. He also faces up to $13.5 million in fines and restitution of the money he made through the scheme.
Broten and the two others are scheduled for sentencing Nov. 8 in Utica.
John Milgrim can be reached at email@example.com or (518) 463-1157.