Statement of Charges Allowed by the Illinois Supreme Court
and Imposing Discipline on Consent

Allowed September 22, 2017

IN THE SUPREME COURT OF ILLINOIS

In the Matter of:

DOMENIC JOSEPH LUPO,

Attorney-Respondent, 

No. 6198541.

 

Supreme Court No. M.R.28917

Commission No. 2017PR00076

 

STATEMENT OF CHARGES PURSUANT
TO SUPREME COURT RULE 762(a)

Jerome Larkin, Administrator of the Attorney Registration and Disciplinary Commission, by his attorney, Shelley M. Bethune, pursuant to Supreme Court Rule 762(a), states that on the date Domenic Joseph Lupo ("Movant") filed a motion requesting that his name be stricken from the Roll of Attorneys, the Administrator was investigating the conduct that formed the basis for Movant's plea of guilty to the offenses of mail fraud and conspiracy to commit tax fraud in the matter entitled United States of America v. Richard Gatto and Domenic Lupo, 15 CR 121, in the United States District Court for the Northern District of Illinois. Had Movant's conduct been the subject of a hearing, the Administrator would have introduced the following evidence, and that evidence would have clearly and convincingly established the misconduct described below.

I.    FACTUAL BASIS

Records from the United States District Court for the Northern District of Illinois would have established the following facts:

1. On March 10, 2015, a federal grand jury, sitting in the Northern District of Illinois, returned a nine-count criminal indictment against Movant and Richard Gatto ("Gatto"). The indictment alleged that Movant and Gatto engaged in a scheme to defraud Gatto's former wife and to obtain money and property by means of materially false and fraudulent pretenses, promises, and representations, and by concealment of material facts. In connection with the

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scheme, the indictment charged that Movant committed five counts of mail fraud, in violation of Title 18 of the United States Code, Section 1341, and one count of conspiracy to commit tax fraud, in violation of Title 18 of the United States Code, Section 371. The matter was docketed as United States of America v. Richard Gatto and Domenic Lupo, case number 15 CR 121.

2. Counts One through Five of the indictment charged that between March 26, 2010 and September 15, 2010, Movant and Gatto knowingly caused falsified Internal Revenue Service ("IRS") forms to be delivered through the United States mail, in violation of Title 18 of the United States Code, Section 1341. Count Six of the indictment charged that Movant knowingly signed and filed with the IRS false S Corporation tax returns for tax years 2005 through 2011 and false individual tax returns for tax years 2006 through 2011, in violation of Title 18 of the United States Code, Section 371. The indictment alleged that Movant falsified his individual and S Corporation tax returns to reflect that Movant's corporation had received payments from entities tied to Gatto, in furtherance of a scheme to hide Gatto's income from his former wife, who was entitled to a portion of Gatto's income pursuant to a judgment order from the couple's dissolution of marriage case.

3. On August 8, 2016, Movant entered into a plea agreement by which Movant pled guilty to one count of mail fraud, in violation of Title 18 of the United States Code, Section 1341, as originally charged in Count One of the indictment, and one count of conspiracy to commit tax fraud, in violation of Title 18 of the United States Code, Section 371. Specifically, Movant admitted that on or about March 26, 2010, he, along with Gatto, knowingly caused an envelope to be delivered through the United States mail to Gatto's former wife that contained a falsified 2009 W-2 form for Gatto. Gatto's former wife relied on the false W-2 in calculating Gatto's maintenance and child support obligations, and she suffered a total pecuniary loss of

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$826,695. Movant also admitted that he knowingly signed and filed false S Corporation tax returns for tax years 2005 through 2013, which falsely reflected that Movant's corporation had earned Gatto's income from a corporation and partnership, and that he knowingly signed and filed false individual tax returns for tax years 2006 through 2014, which were prepared using the information from the false S Corporation tax returns. Movant admitted that his actions caused approximately $4,300,000 to be concealed from the IRS and resulted in a tax loss of approximately $245,000 to the United States. Additionally, Movant admitted that he caused an additional tax loss to the United States of approximately $11,000 as a result of his participation in concealing an additional $71,000 of Gatto's income from the IRS.

4. On December 16, 2016, the Honorable John J. Tharp entered a judgment of conviction in case number 15 CR 121 that, in part, sentenced Movant to three years of probation and 300 hours of community service.

II.    CONCLUSIONS OF MISCONDUCT

5. As a result of the conduct described above, Movant has engaged in the following misconduct:

  1. committing a criminal act that reflects adversely on his honesty, trustworthiness or fitness as a lawyer in other respects, by engaging in mail fraud, in violation of Title 18 of the United States Code, Section 1341, and by engaging in tax fraud, in violation of Title 18 of the United States Code, Section 371, in violation of Rule 8.4(b) of the Illinois Rules of Professional Conduct (2010); and

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conduct involving dishonesty, fraud, deceit or misrepresentation, by engaging in mail fraud, in violation of Title 18 of the United States Code, Section 1341, and by engaging in tax fraud, in violation of Title 18 of the United States Code, Section 371, in violation of Rule 8.4(c) of the Illinois Rules of Professional Conduct (2010).

Shelley M. Bethune
Counsel for Administrator
One Prudential Plaza
130 East Randolph Drive, Suite 1500
Chicago, Illinois 60601
Telephone: (312) 565-2600
Email: sbethune@iardc.org

Respectfully submitted,

Jerome Larkin, Administrator
Attorney Registration and
Disciplinary Commission

By:  /s/Shelley M. Bethune
           Shelley M. Bethune