In re Ruggiero
Annotate this Case
In re Ruggiero (2006-154); 179 Vt. 636; 898 A.2d 1251
2006 VT 39
[Filed 20-Apr-2006]
ENTRY ORDER
SUPREME COURT DOCKET NO. 2006-154
APRIL TERM, 2006
In re John Ruggiero, Esq. } Original Jurisdiction
}
}
} Professional Responsibility Board
}
}
} PRB File Nos. 2005-058, 2005-130
In the above-entitled cause, the Clerk will enter:
¶ 1. Respondent John Ruggiero, Esq. has filed an affidavit of
resignation under Rule 19.A of Administrative Order 9. Disciplinary
counsel has submitted a statement of additional facts and supporting
exhibits. Having reviewed the filings, the Court finds by clear and
convincing evidence as follows. In January 2005, the Court issued an order
placing respondent on interim suspension pending the completion of
disciplinary proceedings arising from complaints against respondent
involving the misappropriation of client funds. In April 2005, respondent
entered a guilty plea to a federal information charging him with one count
of mail fraud arising from a scheme to embezzle money from his trust
account. In January 2006, the United States District Court for the
District of Vermont sentenced respondent to 24 months in prison and three
years supervised release upon the completion of his term, and ordered
restitution in the amount of $418,481, representing the funds that
respondent misappropriated from his trust account.
¶ 2. In light of the foregoing, respondent's resignation from the Bar
of the Vermont Supreme Court is accepted. We order that John Ruggiero is
disbarred on consent from the office of attorney and counselor at law
effective from the date of this order.
¶ 3. Respondent shall comply with the requirements of Administrative
Order 9, Rule 23.
FOR THE COURT:
_______________________________________
Paul L. Reiber, Chief Justice
_______________________________________
John A. Dooley, Associate Justice
______________________________________
Denise R. Johnson, Associate Justice
______________________________________
Marilyn S. Skoglund, Associate Justice
_______________________________________
Brian L. Burgess, Associate Justice
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88 PRB
[Filed 10-Mar-2006]
STATE OF VERMONT
PROFESSIONAL RESPONSIBILITY BOARD
In re: John Ruggiero, Esq.
PRB Docket Nos. 2005-058 and 2005 130
Decision No. 88
Upon receipt of the Affidavit of Resignation submitted to the Board
and pursuant to Administrative Order No. 9, Rule 19, we recommend to the
Court that the above referenced Respondent be disbarred. Attached hereto
are the Affidavit of Resignation, Disciplinary Counsel's Statement of
Additional Facts, and Exhibits 1, 2 and 3.
Dated at Montpelier, Vermont this 10th day of March 2006.
/s/
_________________________
Joan Loring Wing, Esq. - Chair
attachments
cc: Michael Kennedy, Disciplinary Counsel
P. Scott McGee, Counsel for John Ruggiero, Respondent
-----------------------------------------------------------------------
STATE OF VERMONT
PROFESSIONAL RESPONSIBILITY BOARD
In Re: John M. Ruggiero, Esq.
PRB File Nos. 2005-058 and 2005-130
Statement of Additional Facts
NOW COMES Disciplinary Counsel and, pursuant to Rule 19(D) of
Administrative Order 9, submits this Statement of Additional Facts for the
Board's consideration in connection with its review of Attorney Ruggiero's
Affidavit of Resignation:
1. Attorney Ruggiero is an attorney licensed to practice law in
Vermont.
2. In September of 2004, Kay Suwczinsky filed an ethics complaint
against attorney Ruggiero. The complaint was docketed as PRB File No.
2005-058 and the file was assigned to Deputy Disciplinary Counsel Beth
DeBernardi.
3. In late December of 2004, as the Suwczinsky complaint was being
investigated, Disciplinary Counsel received information tending to indicate
that Attorney Ruggiero had misappropriated funds belonging to a client
named Teresa DeYoung. The information was docketed as PRB File No. 2005-1
30 and the file was assigned to Disciplinary Counsel Michael Kennedy.
4. On January 3, 2005, having reviewed the DeYoung Matter,
Disciplinary counsel petitioned the Vermont Supreme Court for the immediate
interim suspension of Attorney Ruggiero's license to practice law.
5. On January 5, 2005, the Supreme Court entered an Order immediately
suspending Attorney Ruggiero's license to practice law.
6. Around the same time, the United States Attorney opened a federal
criminal investigation into Attorney Ruggiero's conduct.
7. In mid January of 2005, Attorney Ruggiero filed an Affidavit of
Resignation with the Board.
The Federal Criminal Investigation
8. Attorney Ruggiero waived his right to proceed by Indictment.
Rather, he entered into an agreement with the government under which he
pled guilty to an Information that charged him with violating 18 U.S.C. §
1341. Exhibit 1 is copy of the Information. Exhibit 2 is a copy of the
Plea Agreement.
9. More specifically, Attorney Ruggiero pled guilty "to one count of
mail fraud, in violation of Title 18, United States Code, arising from a
scheme to embezzle money from his attorney trust account from 1999 to
December 2004." Exhibit 2, para. 1.
10. On January 24, 2006, the United States District Court adjudicated
Attorney Ruggiero as guilty of committing Mail Fraud in violation of 18
U.S.C. § 1341. Exhibit 3 is a copy of the Judgment. Attorney Ruggiero was
sentenced to 24 months imprisonment and ordered to serve 3 years of
supervised release upon leaving prison. In addition, he was ordered to make
restitution in the amount of $418,481.39. That amount represents funds that
Attorney Ruggiero misappropriated from his trust account.
The DeYoung Matter - PRB File No. 2005-130
11. Paragraph 4 of Attorney Ruggiero's Affidavit of Resignation
references two disciplinary investigations. The first reference is to PRB
File No. 2005-130. In that case, Disciplinary Counsel's investigation
revealed as follows:
a. In 2002, Teresa DeYoung hired Attorney Ruggiero to
represent her four children in connection with claims that
they had against their grandmother's Estate ("the Estate");
b. In April of 2003, Attorney Ruggiero provided each of Ms.
DeYoung's children with a check for $27,258.28. In that Ms.
DeYoung has four children, the total amount of money that
Attorney Ruggiero gave to her children was $109,033.12. At
the time, he indicated to Ms. DeYoung that each child could
expect to receive additional funds from the Estate;
c. Between April of 2003 and December of 2005, Ms. DeYoung
repeatedly contacted Attorney Ruggiero to ask whether he had
received additional funds and, if not, when he expected to
receive them. In November of 2004, Attorney Ruggiero told Ms.
DeYoung that the additional funds had yet to arrive, but that
he expected funds to be available around Thanksgiving;
d. As of December 31,2004, Attorney Ruggiero had neither
forwarded any funds to the children nor informed them that he
had received any funds from the Estate;
e. In fact, in 2002, the Estate sent a total of $409,033.12
to Attorney Ruggiero. In July of 2002, the Estate sent
Attorney Ruggiero a check in the amount of $300,0000 and made
payable to Ruggiero Law Office Trust Account. The check was
sent by certified mail, return receipt requested, and was
signed for by L. Vandenburg of the Ruggiero Law Office.
Attorney Ruggiero acknowledged receipt of the $300,000 on
July 10, 2002. The check was cashed by the Ruggiero Law
Office on July 11, 2002;
f. In October of 2002, the Estate sent Attorney Ruggiero a
check in the amount of $46,533.12 and made payable to
Ruggiero Law Office Trust Account. The check was sent by
certified mail, return receipt requested, and was signed for
by Elsie Gilmore of the Ruggiero Law Office. Attorney
Ruggiero acknowledged receipt of the $46,533.12 on October
16,2002. The check was cashed by the Ruggiero Law Office on
October 18, 2002;
g. Finally, in December of 2002, the Estate sent Attorney
Ruggiero a check in the amount of $62,500 and made payable to
Ruggiero Law Office Trust Account. The check was sent by
certified mail, return receipt requested, and was signed for
by Elsie Gilmore of the Ruggiero Law Office. Attorney
Ruggiero acknowledged receipt of the $62,500 on January 8,
2003. The check was cashed by the Ruggiero Law Office on
January 14, 2003; h. In sum, in 2002 and 2003, the Executrix
of the Estate of Betty DeYoung sent $409,033.12 to Attorney
Ruggiero. The money was to benefit his clients, the
grandchildren of Betty DeYoung. As of December 31, 2004,
Attorney Ruggiero had only provided the children with
$109,033.12.
The Suwczinsky Matter: PRB file No. 2005-058
12. The second disciplinary investigation referenced in Paragraph 4 of
Attorney Ruggiero's Affidavit of Resignation is PRB File No. 2005-058.
13. PRB File No. 2005-058 was opened on September 28, 2004, upon the
receipt of a complaint from Kay Suwczinsky. By letter dated October 5,
2004, Disciplinary Counsel informed Attorney Ruggiero of the complaint and
requested that he file an answer by October 26, 2004.
14. On October 26, 2004, Attorney Ruggiero faxed a letter to
Disciplinary Counsel requesting an extension until November 1, 2004 in
which to respond to the complaint. The same day, Administrative Assistant
to Disciplinary Counsel, having checked via Deputy Disciplinary Counsel,
left Attorney Ruggiero a message that he could have an extension until
November 1.
15. Attorney Ruggiero did not respond by November 1, 2004. On November
5, 2004, Administrative Assistant to Disciplinary Counsel, acting under the
direction of Deputy Disciplinary Counsel, wrote to Mr. Ruggiero and
informed him that the failure to respond can be a violation of the Rules of
Professional Conduct and asked him to respond by November 12. Mr. Ruggiero
did not respond by November 12.
16. On November 17, 2004, Deputy Disciplinary Counsel sent Mr.
Ruggiero a certified letter informing him that he would be charged with
failure to cooperate if he did not file an answer by November 29,2004.
17. On November 29, 2004, Attorney Ruggiero faxed an answer and also
called to discuss the case with Deputy Disciplinary Counsel. During the
conversation, Deputy Disciplinary Counsel conducted a preliminary interview
of Attorney Ruggiero. She had already interviewed the complainant on
October 21 and November 29 of 2004. Deputy Disciplinary counsel and
Attorney Ruggiero spoke again on December 8, 2004.
18. Deputy Disciplinary Counsel's investigation revealed as follows:
a. On or about January 31, 2003, Ms. Suwczinsky sold her
timeshare condominium unit;
b. Attorney Ruggiero acted as the transfer agent for the
condominium association in the transaction;
c. Because Ms. Suwczinsky lived out of state, Mr. Ruggiero
withheld 2 1/2 percent of the purchase price to send to the
Vermont Department of Taxes, as required by Vermont law.
Out-of-state sellers of real property may file Vermont Income
Tax Returns for the year of withholding and seek a refund of
the withheld funds from the Tax Department the following
year;
d. Attorney Ruggiero did not inform Ms. Suwczinsky that she
could file a tax return and seek a refund of the funds he had
withheld;
e. Ms. Suwczinsky learned from her mortgage officer that she
could file a Vermont Income Tax Return and request a refund
of the funds that had been withheld. She filed a Vermont
Income Tax Return for tax year 2003. When no refund was
forthcoming, Ms. Suwczinsky contacted the Tax Department. The
Tax Department informed her that it had never received the
$750 withheld from the sale of her timeshare unit;
f. Ms. Suwczinsky contacted Attorney Ruggiero on more than
one occasion in the summer of 2004 to ask him to remedy the
error. Attorney Ruggiero repeatedly informed her that he
would take care of the matter by forwarding the funds to the
Tax Department;
g. Attorney Ruggiero did not forward the funds to the Tax
Department until December 13, 2004, five days after speaking
with Deputy Disciplinary Counsel. Ms. Suwczinsky received the
money in January of 2005.
DATED at Burlington, Vermont on March 8, 2006.
Respectfully submitted,
________________________
Michael Kennedy
Disciplinary Counsel
32 Cherry Street, Suite 213
Burlington, Vermont 05403
--------------------------------------------------------------------------------
Case 1:05-cr-00054-jgm Document 1 Filed 04/21/2005 Page 1 of 1
EXHIBIT 1
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF VERMONT
UNITED STATES OF AMERICA )
)
v. ) Criminal No.
)
JOHN M. RUGGIERO, )
Defendant. )
INFORMATION
The United States Attorney charges:
On or about and between 1999 and December 2004, in the District of
Vermont and , elsewhere, the defendant JOHN M. RUGGIERO devised a scheme
and artifice to defraud and to obtain money by means of materially false
and fraudulent pretenses, representations, and promises, to wit: embezzling
money from his attorney trust account, and did for the purposes of
executing such scheme and artifice and attempting to do so knowingly cause
to be delivered by mail a matter and thing, that is: a check for $300,000
payable to the Ruggiero Law Office Trust Account mailed from Dunning &
Kirrane, L.L.P., Shellback Place, 133 Route 28, Box 560, Mashpee, MA 02649
to John M. Ruggiero, Esq., Ruggiero Law Office, 76 Grove St., Rutland, VT
04701.
(18 U.S.C. § 1341)
______________________________
DAVID V. KIRBY (SDK)
United State Attorney
Burlington, Vermont
April 21, 2005
--------------------------------------------------------------------------------
Case 1:05-cr-00054-jgm Document 2 Filed 04/21/2005
EXHIBIT 2
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF VERMONT
UNITED STATES OF AMERICA )
)
v. ) Criminal No.
)
JOHN M. RUGGIERO, )
Defendant. )
PLEA AGREEMENT
The United States of America, by and through the United States
Attorney for the District of Vermont (hereafter "the United States"), and
the defendant, JOHN M. RUGGIERO, agree to the following in regard to the
disposition of pending criminal charges against JOHN M. RUGGIERO.
1. JOHN M. RUGGIERO agrees to waive his right to proceed by Indictment
and plead guilty to an Information charging him with one count of mail bud,
in violation of Title 18, United States Code, Section 1341, arising from a
scheme to embezzle money from his attorney trust account from 1999 to
December 2004.
2. JOHN M. RUGGIERO understands, agrees and has had explained to him
by counsel that the Court may impose the following sentence on his plea:
not more thdup to twenty (20) years imprisonment, pursuant to Title 18,
United States Code, Section 1341; not more than a three year period of
supervised release, pursuant to Title 18, United States Code, Section
3583(b); a fine of not more than a $250,000 or twice the amount of the
fraud, whichever is greater, pursuant to Title 18, United States Code,
Section 3571; and a $100 special assessment pursuant to Title 18, United
States Code, Section 30 13. Full restitution may also be ordered.
3. It is the understanding of the parties to this agreement that the
plea will be entered under oath and in accordance with Rule 11 of the
Federal Rules of Criminal Procedure. JOHN M. RUGGIERO represents that he
intends to plead guilty because he is, in fact, guilty of the crime with
which he is charged.
4. JOHN M. RUGGIERO agrees and understands that this agreement is
conditioned upon his providing the United States Attorney, at the time this
plea agreement is executed, a bank cashier's check, certified check, or
postal money order made payable to the Clerk, United States District Court,
in payment for the mandatory special assessment of $100 for which he will
be responsible when sentenced. The United States agrees to safeguard and
pay the special assessment imposed at sentencing to the Clerk of the Court
immediately after sentencing. In the event that this plea agreement is for
any reason terminated or JOHN M. RUGGIERO's guilty plea is not accepted by
the Court, the special assessment shall be promptly refbided to JOHN M.
RUGGIERO. In the event that the tendered bank check is not honored for
whatever reason, JOHN M. RUGGIERO understands that he will still be liable
for the amount of the special assessment which the Court imposes. JOHN M.
RUGGIERO understands and agrees that, if he fails to pay the special
assessment in 111 prior to sentencing, the United States' obligations under
this plea agreement will be terminated, the United States will have the
right to prosecute JOHN M. RUGGIERO for any other offenses he may have
committed, and will have the right to recommend the Court impose any lawful
sentence. Under such circumstances, JOHN M. RUGGIERO will have no right to
withdraw his plea of guilty.
5. JOHN M. RUGGIERO agrees and understands that it is a condition of
this agreement that he refrain from committing any further crimes whether
federal, state or local and that, if on release, he will abide by all
conditions of release.
6. The United States agrees that in the event that JOHN M. RUGGIERO
fully and completely abides by all conditions of this agreement, the United
States will:
(a) not prosecute him in the District of Vermont for any
other criminal offenses known to the United States Attorney's
Office as of the date of the signing of this plea agreement
committed by him in the District of Vermont relative to a
scheme and artifice to embezzle money from his attorney trust
account;
(b) recommend to the sentencing Court that he be sentenced to
a term of imprisonment at the low end of the applicable
Sentencing Guidelines range; and
(c) recommend that he receive credit for acceptance of
responsibility under Guideline Section 3E1.1, provided that
he cooperates truthfully and completely with the Probation
Office during the presentence investigation and abides by the
conditions of his release and further provided that no new
information comes to the attention of the United States
Attorney's Office relative to the issue of his receiving
credit for acceptance of responsibility.
7. If the United States determines, in its sole discretion, that JOHN
M. RUGGIERO has committed any offense after the date of this agreement, or
violated any condition of release, or has failed to cooperate fully with
the Probation Office, or has provided any intentionally false, incomplete
or misleading information to Probation, the United States' obligations
under paragraph 6 of this agreement will be void and the United States will
have the right to recommend that the Court impose any sentence authorized
by law and will have the right to prosecute JOHN M. RUGGIERO for any other
offenses he may have committed in the District of Vermont. JOHN M. RUGGIERO
understands and agrees that, under such circumstances, he will have no
right to withdraw his previously entered plea of guilty.
8. JOHN M. RUGGIERO fully understands that the sentence to be imposed
on him is within the sole discretion of the Court. JOHN M. RUGGIERO may not
withdraw his plea because the Court declines to follow any recommendation,
motion or stipulation of the parties to this agreement other than an
agreement between the parties pursuant to Federal Rule of Criminal
Procedure 1l(c)(l)(C). The United States does not make any promises or
representations as to what sentence JOHN M. RUGGIERO will receive. The
United States specifically reserves the right to allocute at sentencing.
There shall be no limit on the information the United States may present to
the Court and the Probation Office relevant to sentencing and the positions
the United States may take regarding sentencing (except as specifically
provided elsewhere in this agreement). The United States also reserves the
right to correct any misstatement of fact made during the sentencing
process, to oppose any motion to withdraw a plea of guilty previously
entered and to support on appeal any decisions of the sentencing Court
whether in agreement or in conflict with recommendations and stipulations
of the parties.
9. Further, JOHN M. RUCGIERO filly understands that any estimates or
predictions relative to the Guidelines calculations are not binding upon
the Court and fully understands that the Guidelines are advisory and that
the Court can consider any and all information that it deems relevant to
the sentencing determination. Thus, JOHN M. RUGGIERO expressly acknowledges
that in the event that any estimates or predictions by his attorney (or
anyone else) are erroneous, those erroneous predictions will not provide
grounds for withdrawal of his plea of guilty, modification of his sentence,
or for appellate or post-conviction relief.
10. It is further understood and agreed by the parties that should
JOHN M. RUGGIERO's plea not be accepted by the Court for whatever reason,
or later be withdrawn or vacated, this agreement may be voided at the
option of the United States and JOHN M. RUGGIERO may be prosecuted for any
and all offenses otherwise permissible. If the plea is withdrawn or vacated
on motion of JOHN M. RUGGIERO, JOHN M. RUGGIERO herein expressly agrees
that the entire period of time that elapses between the signing of this
agreement and the withdrawal or vacatur of the plea shall be disregarded in
calculating whether the prosecution of any charges is timely under the
applicable statute of limitations. JOHN M. RUGGIERO also expressly agrees
to waive any defense to the reprosecution of charges that he might have
under the Speedy Trial Act, the speedy trial guarantees of the
Constitution, or any other constitutional or statutory provision.
11. It is further understood that this agreement is limited to the
Office of the United States Attorney for the District of Vermont and cannot
bind other federal, state or local prosecuting authorities.
12. Both parties are free to move for a departure under the Guidelines
and to argue for a sentence outside the advisory sentencing range, except
as otherwise set forth in this agreement.
13. JOHN M. RUGGIERO agrees that he will provide a copy of any
financial affidavit prepared during the course of the Probation Office's
presentence investigation to the United States at the same time that it is
provided to the Probation Office. In addition, he specifically hereby
authorizes the Probation Office to provide the United States a copy of any
and all financial affidavits submitted to it by him.
14. In voluntarily pleading guilty to the charges in the Information,
JOHN M. RUGGIERO acknowledges that he understands the nature of the charges
to which the plea is offered, He also acknowledges that he has the right to
plead not guilty or to persist in a plea of not guilty; that he has the
right to be tried by a jury and at that trial a right to the assistance of
counsel; that he has the right to confront and cross-examine adverse
witnesses; that he has the right against compelled self-incrimination; that
if a plea of guilty is accepted by the Court, there will be no further
trial of any kind, so that by pleading guilty he waives the right to a
trial and the other rights enumerated here.
15. JOHN M. RUGGIERO expressly states that he makes this agreement of
his own free will, With fill knowledge and understanding of the agreement
and with the advice and assistance of his counsel, Robert F. O'Neill, Esq.
JOHN M. RUGGIERO further states that his plea of guilty is not the result
of any threats or of any promises beyond the provisions of this agreement.
Furthermore, JOHN M. RUGGIERO expressly states that he is fully satisfied
with the representation provided to him by his attorney, Robert F. O'Neill,
Esq., and has had full opportunity to consult with his attorney concerning
this agreement, concerning the applicability and impact of the sentencing
guidelines (including, but not limited to the relevant conduct provisions
of Guideline Section 1B1.3), and concerning the potential terms and
conditions of supervised release.
16. No agreements have been made by the parties or their counsel other
than those contained herein.
17. It is agreed that a copy of this agreement shall be filed with the
Court before the time of JOHN M. RUGGIERO's change of plea.
Dated at Burlington, in the District of Vermont, this 15th day of
April, 2005.
UNITED STATES OF AMERICA
DAVID V. KIRBY
United States Attorney
By: _______________________
STEPHEN D. KELLY
Assistant U.S. Attorney
15 April 2005
____________
Date
______________________
JOHN M. RUGGIERO
Defendant
I have read, fully reviewed and explained this agreement to my client,
JOHN M. RUGGIERO, and I hereby approve of it.
18 April 2005
____________
Date
______________________
Robert F. O'Neill
Counsel for the Defendent
--------------------------------------------------------------------------------
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF VERMONT
UNITED STATES OF AMERICA )
)
v. ) Criminal No.
)
JOHN M. RUGGIERO, )
CERTIFICATE OF SERVICE
I, Stacie Brosky, do hereby certify that I have served a copy of the
foregoing INFORMATION AND PLEA AGREEMENT on the Defendant by mailing a copy
to
Defendant's counsel:
Robert O'Neill, Esq.
Gravel and Shea
PO Box 369
Burlington, VT 05402-0369
DATED and SIGNED at Burlington, Vermont on this 21st day of April,
2005.
_______________________
Stacy Brosky
Legal Assistant
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EXHIBIT 3
-----------------------------------------------------------------------------
AO 245B (Rev. 06/05) Judgment in a Criminal Case
Sheet 1
=============================================================================
UNITED STATES DISTRICT COURT
District of Vermont
----------------------------------------------------------------------------
UNITED STATES OF AMERICA JUDGMENT IN A CRIMINAL CASE
v.
JOHN RUGGIERO
Case Number: 1:05-CR-54-01
USM Number: 04973-082
Robert O'Neill, Esq.
Defendant's Attorney
THE DEFENDANT:
X pleaded guilty to count(s) 1
== =
__ pleaded nolo contendere to count(s)
which was accepted by the court.
__ was found guilty on count(s)
after a plea of not guilty.
The defendant is adjudicated guilty of these offenses:
Title & Section Nature of Offense Offense Ended Count
=============== ================= ============= =====
18 USC § 1341 Mail fraud 12/2004 1
The defendant is sentenced as provided in pages 2 through 6 of this
judgment. The sentence is imposed pursuant to the Sentencing Reform Act of
1984.
__ The defendant has been found not guilty on count(s)
__ Count(s) ________________ __ is __ are dismissed on the motion of
the United States.
It is ordered that the defendant must notify the United States
attorney for this district within 30 days of any change of name, residence,
or mailing address until all fines, restitution, costs, and special
assessments imposed by this judgment are fully paid. If ordered to pay
restitution, the defendant must notify the court and United States attorney
of material changes in economic circumstances.
January 24, 2006
_____________________________
Date of Imposition of Judgment
_______________________________________
Honorable J. Garvan Murtha, U.S. District Judge
January 30, 2006
-----------------------
Date
JUDGEMENT ENTERED ON DOCKET
Date: 1-31-2006
-------------------------------------------------------------------------------
AO 245B (Rev. 06/05) Judgment in a Criminal Case
Sheet 2
==============================================================================
Judgment-Page 2 of 6
DEFENDANT: JOHN RUGGIERO
CASE NUMBER: 1:05-CR-54-01
IMPRISONMENT
The defendant is hereby committed to the custody of the United States
Bureau of Prisons to be imprisoned for a total term of: 24 months
X The court makes the following recommendations to the Bureau of Prisons:
==
That defendant be designated to serve his sentence at the satellite
camp at FMC Devens.
That if defendant qualifies for placement in a half-way house, that he
be designated to a half-way house in New York state.
__ The defendant is remanded to the custody of the United States Marshal.
__ The defendant shall surrender to the United States Marshal for this
district:
__ at __________________ __ a.m. __ p.m. on _____________________
__ as notified by the United States Marshal.
The defendant shall surrender for service of sentence at the
institution designated by the Bureau of Prisons:
X before 2 p.m. on 4/25/2006
==
__ as notified by the United States Marshal.
__ as notified by the Probation or Pretrial Services Office.
RETURN
I have executed this judgment as follows:
Defendant delivered on ____________________ to ___________________________
a ___________________________, with a certified copy of this judgment.
__________________________________
UNITED STATES MARSHAL
BY________________________________
DEPUTY UNITED STATES MARSHAL
-------------------------------------------------------------------------------
AO 245B (Rev. 06/05) Judgment in a Criminal Case
Sheet 3 - Supervised Release
==============================================================================
Judgment-Page 3 of 6
DEFENDANT: JOHN RUGGIERO
CASE NUMBER: 1:05-CR-54-01
SUPERVISED RELEASE
Upon release from imprisonment, the defendant shall be on supervised
release for a term of : 3 years
The defendant must report to the probation office in the district to
which the defendant is released within 72 hours of release from the custody
of the Bureau of Prisons.
The defendant shall not commit another federal, state or local crime.
The defendant shall not unlawfully possess a controlled substance. The
defendant shall refrain from any unlawful use of a controlled substance.
The defendant shall submit to one drug test within 15 days of release from
imprisonment and at least two periodic drug tests thereafter, as determined
by the court.
X The above drug testing condition is suspended, based on the court's
== determination that the defendant poses a low risk of future substance
abuse. (Check, if applicable.)
__ The defendant shall not possess a firearm, ammunition, destructive
device, or any other dangerous weapon. (Check, if applicable.)
X The defendant shall cooperate in the collection of DNA as
== directed by the probation officer. (Check, if applicable.)
__ The defendant shall register with the state sex offender registration
agency in the state where the defendant resides, works, or is a
student, as directed by the probation officer. (Check, if applicable.)
__ The defendant shall participate in an approved program for domestic
violence. (Check, if applicable.)
If this judgment imposes a fine or restitution, it is a condition of
supervised release that the defendant pay in accordance with the Schedule
of payments sheet of this judgment.
The defendant must comply with the standard conditions that have been
adopted by this court as well as with any additional conditions on the
attached page.
STANDARD CONDITIONS OF SUPERVISION
1) the defendant shall not leave the judicial district without the
permission of the court or probation officer;
2) the defendant shall report to the probation officer and shall
submit a truthful and complete written report within the first five days of
each month;
3) the defendant shall answer truthfully all inquiries by the
probation officer and follow the instructions of the probation officer;
4) the defendant shall support his or her dependents and meet other
family responsibilities;
5) the defendant shall work regularly at a lawful occupation, unless
excused by the probation officer for schooling, training, or other
acceptable reasons;
6) the defendant shall notify the probation officer at least ten days
prior to any change in residence or employment;
7) the defendant shall refrain from excessive use of alcohol and shall
not purchase, possess, use, distribute, or administer any controlled
substance or any paraphernalia related to any controlled substances, except
as prescribed by a physician;
8) the defendant shall not frequent places where controlled substances
are illegally sold, used, distributed, or administered;
9) the defendant shall not associate with any persons engaged in
criminal activity and shall not associate with any person convicted of a
felony, unless granted permission to do so by the probation officer;
10) the defendant shall permit a probation officer to visit him or her
at any time at home or elsewhere and shall permit confiscation of any
contraband observed in plain view of the probation officer;
11) the defendant shall notify the probation officer within
seventy-two hours of being arrested or questioned by a law enforcement
officer;
12) the defendant shall not enter into any agreement to act as an
informer or a special agent of a law enforcement agency without the
permission of the court; and
13) as directed by the probation officer, the defendant shall notify
third parties of risks that may be occasioned by the defendant's criminal
record or history or characteristics and shall permit the probation officer
to make such notifications and to confirm the defendant's compliance with
such notification requirement.
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AO 245B (Rev. 06/05) Judgment in a Criminal Case
Sheet 3A - Supervised Release
==============================================================================
Judgment-Page 4 of 6
DEFENDANT: JOHN RUGGIERO
CASE NUMBER; 1:05-CR-54-01
ADDITIONAL SUPERVISED RELEASE TERMS
The defendant shall make restitution payments until the financial
obligation is paid in full. The court prefers that the outstanding
restitution be paid in full before defendant commences his term of
imprisonment. If he is unable to do so, he shall make restitution payments
as his real estate properties are sold. In the event the real estate is not
sold, he shall make restitution payments in an amount of at least 10% of
his gross monthly income until the financial obligation is paid in full.
The defendant shall permit the U.S. Probation Officer access to any
requested financial information, until the obligation is paid in full.
The defendant shall participate in a mental health program approved by
the U.S. Probation Office, if deemed advisable by the probation officer.
The defendant shall contribute to the cost of services rendered in an
amount to be determined by the Probation Officer based on ability to pay or
the availability of third party payment.
The defendant shall maintain employment and any employment must be
authorized by the probation officer.
The defendant shall not engage in the business of handling legal
affairs or handling of monetary instruments for the period of supervision,
without permission of the probation officer.
-------------------------------------------------------------------------------
AO 245B (Rev. 06/05) Judgment in a Criminal Case
Sheet 5 - Criminal Monetary Penalties
==============================================================================
Judgment-Page 5 of 6
DEFENDANT: JOHN RUGGIERO
CASE NUMBER: 1:05-CR-54
CRIMINAL MONETARY PENALTIES
The defendant must pay the total criminal monetary penalties under the
schedule of payments on Sheet 6.
Assessment Fine Restitution
========== ==== ===========
TOTALS $ 100.00 $ $ 418,481.39
__ The determination of restitution is deferred until _____. An Amended
Judgment in a Criminal Case(A0 245C) will be entered after such
determination.
__ The defendant must make restitution (including community restitution) to
the following payees in the amount listed below.
If the defendant makes a partial payment, each payee shall receive an
approximately proportioned payment, unless specified otherwise in the
priority order or percentage payment column below. However, pursuant to 18
U.S.C. § 3664(i), all nonfederal victims must be paid before the United
States is paid.
Name of Payee Total Loss* Restitution Ordered Priority or %
============= ========== =================== =============
Teresa DeYoung $300,000.00 paid in full
Edwin Wayne Alley $ 41,000.00 priority ahead
of Anthem Health
Plan of NH & VT
Health Access
Vermont Health Access $ 64,149.57
Anthem Health Plan of New $ 13,331.83
Hampshire
TOTALS $ 0 $418,481.39
____________ ___________
__ Restitution amount ordered pursuant to plea agreement $______________
__ The defendant must pay interest on restitution and a fine of more than
$2,500, unless the restitution or fme is paid in full before the
fifteenth day after the date of the judgment, pursuant to 18 U.S.C. §
3612(f). All of the payment options on Sheet 6 may be subject
to penalties for delinquency and default, pursuant to 18 U.S.C.
§ 3612(g).
__ The court determined that the defendant does not have the ability to pay
interest and it is ordered that:
__ the interest requirement is waived for the __ fine __ restitution.
__ the interest requirement for the __ fine __ restitution is
modified as follows:
* Findings for the total amount of losses are required under Chapters
109A, 110, 110A, and 113A of Title 18 for offenses committed on or after
September 13, 1994, but before April 23, 1996.
-------------------------------------------------------------------------------
AO 245B (Rev. 06/05) Judgment in a Criminal Case
Sheet 6 - Schedule of Payments
==============================================================================
Judgment-Page 6 of 6
DEFENDANT: JOHN RUGGIERO
CASE NUMBER: 1:05-CR-54
SCHEDULE OF PAYMENTS
Having assessed the defendant's ability to pay, payment of the total
criminal monetary penalties are due as follows:
A. X Lump sum payment of $418,581.39 due immediately, balance due
===
not later than ___________________, or
__ in accordance __C, __D, __E, or __F below; or
B. __ Payment to begin immediately (may be combined with __C, __D, or
__F below); or
C. __ Payment in equal _____ (e.g., weekly, monthly, quarterly)
installments of $ _______ over a period of _____________
(e.g., months or years), to commence ________ (e.g., 30 or 60 days)
after the date of this judgment; or
D. __ Payment in equal _____ (e.g., weekly, monthly, quarterly)
installments of $ __________ over a period of _____ (e.g., months
or years), to commence _____ (e.g., 30 or 60 days) after release
from imprisonment to a term of supervision; or
E. __ Payment during the term of supervised release will commence within
_____ (e.g., 30 or 60 days) after release from imprisonment.
The court will set the payment plan based on an assessment of
the defendant's ability to pay at that time; or
F. X Special instructions regarding the payment of criminal monetary
=== penalties:
Restitution owed Edwin Wayne Alley shall be given priority ahead
of Anthem Health Plan of New Hampshire and Vermont Health Access.
Unless the court has expressly ordered otherwise, if this judgment
imposes imprisonment, payment of criminal monetary penalties is due during
imprisonment. All criminal monetary penalties, except those payments made
through the Federal Bureau of Prisons' Inmate Financial Responsibility
Program, are made to the clerk of the court.
The defendant shall receive credit for all payments previously made
toward any criminal monetary penalties imposed.
__ Joint and Several
Defendant and Co-Defendant Names and Case Numbers (including defendant
number), Total Amount, Joint and Several Amount, and corresponding payee,
if appropriate.
__ The defendant shall pay the cost of prosecution.
__ The defendant shall pay the following court cost(s):
__ The defendant shall forfeit the defendant's interest in the following
property to the United States:
----------------------------------------------------------------------------
VERMONT PROFESSIONAL RESPONSIBILITY BOARD
In Re John M. Ruggiero PRB DOCKET NOS. 2005-
2005-058
AFFIDAVIT OF JOHN M. RUGGIERO
NOW COMES John Ruggiero, upon oath and deposes and states as follows:
1. I am making this affidavit pursuant to Rule 19 of Supreme Court
Administrative Order 9 governing resignation by Vermont licensed attorneys
under disciplinary investigation.
2 . I have received notice that I am under investigation by
disciplinary counsel for violations of the Rules of Professional Conduct,
and I am currently disqualified as an attorney under an order issued on
January 5, 2005, by the Vermont Supreme Court which effected the immediate
interim suspension of my license to practice law.
3. This resignation is freely and voluntarily rendered. 1 am not being
subjected to coercion or to duress. I am fully aware of the implications of
submitting this resignation. I have discussed its terms and the
consequences with my attorney and am submitting this resignation affidavit
after advice of counsel and with full understanding of the legal and
practical implications.
4. As noted above, I am aware that there are presently pending
investigations into allegations that I have been guilty of professional
misconduct. Specifically, in Docket No. 2005-0___ I am alleged to have
misused for my own benefit and contrary to the entitlement of my clients,
client trust funds and monies delivered to me in trust for distribution to
estate beneficiaries.* The amount of the funds so misused totals
approximately $300,000. Additionally, in Docket No. 2005-058 I am alleged
to have failed to timely file with the Vermont Tax Department an
out-of-state seller's witholding tax form accompanied by payment of the
taxes that should have been witheld and to have not properly accounted for
the witheld funds in my client's trust account.* Further, I have
self-reported three other instances of misuse of client funds. Each is
described below in subparagraphs (1) - (3).
(1) I failed to timely negotiate the settlement of a medicaid lien
against proceeds of a personal injury settlement. Instead, I used and
disbursed for my own purposes monies escrowed from the proceeds of the
settlement to cover the medicaid lien. The amount of escrowed funds was
approximately $60,000.*
(2) I retained a portion of the client's share of the proceeds of a
personal injury settlement and co-mingled and used those monies to benefit
my own personal and business interests without disclosing to my former
client that I was making such use of the funds. My former client knew that
I was withholding the funds from his share of a personal injury settlement,
bur he believed that I was investing the funds for him to generate a higher
return than available through bank deposits and CD's; whereas, in truth and
in fact, I used the funds for my business purposes without disclosing to my
client that I was doing so and co-mingled the funds with my own assets and
used them as my own without maintaining any identity of ownership or
interest in the funds for my former client.*
(3) I entered into a business arrangement with a client under which I
retained the client's share of the net proceeds of the sale of real
property and the client's distribution from an estate. The total combined
amount involved was approximately $125,000. We had no written agreement,
but the client expected that I would put the funds in escrow to draw upon
for his agreed one-half share contribution to the costs of our planned
business ventures going forward. In fact, I used the funds for my own
personal and business purposes, intending to fund the client's share and my
share of our business ventures from other income sources that were
available to me.*
5. I hereby acknowledge the truth of the facts set forth above and of
my understanding of the investigation as set forth above and acknowledge
that the material facts upon which the investigation into the above three
matters is based are true. 1 acknowledge the correctness of the allegations
of misappropriation of funds with respect to all four matters referenced
above and agree that my conduct violates multiple rules of professional
conduct. I understand that the three self-reported instances of misconduct
have not yet been the subject of a client complaint, but 1 acknowledge that
my self-report constitutes a complaint and that the matters self-reported
are withing the scope of this resignation affidavit.
6. I am submitting my resignation because I know that if charges were
predicated on the misconduct under investigation, including the
self-reported conduct, I would not successfully defend against them.
*A11 client names are being provided separately to disciplinary
counsel.
________________________________
John M. Ruggiero
Date: 1/12/04
--------------------------------------------------------------------------
John M. Ruggiero
STATE OF VERMONT
COUNTY OF Rutland, SS.
At Rutland in said County this 12th day of January, 2005, personally
appeared John M. Ruggiero, under oath, and he swore to the truth of the
foregoing.
____________________________
Lois Vandenburg
Notary Public
Comm. Expires 2/10/07
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