Marcos Daniel Jiménez, United States Attorney for the Southern District of Florida; Eileen J. O’Connor, Assistant Attorney General, Department of Justice Tax Division; and Brian J. Wimpling, Special Agent in Charge, Internal Revenue Service (“IRS”), Criminal Investigation, announced today that defendant, Bruce Stelzenmuller, a/k/a “Bruce Muller,” was sentenced on July 23, 2004, in Ft. Lauderdale, Florida, by United States District Court Judge William P. Dimitrouleas to 57 months’ imprisonment followed by 3 years’ supervised release. Stelzenmuller previously pleaded guilty to a thirteen (13) count Indictment charging him with one (1) count of conspiring to make false statements to the Federal Deposit Insurance Corporation (“FDIC”), in violation of Title 18, United States Code, Sections 371 and 1007; seven (7) counts of making false statements to the FDIC, in violation of Title 18, United States Code, Section 1007; one (1) count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 371 and 1344; one (1) count of bank fraud, in violation of Title 18, United States Code, Section 1344; one (1) count of conspiring to commit tax fraud, in violation of Title 18, United States Code, Sections 371; and two (2) counts of tax fraud, in violation of Title 18, United States Code, Section 7201. Judge Dimitrouleas also order Stelzenmuller to pay restitution to the FDIC, First Union Bank, and Ford Motor Credit in the amount of $2,475,206.90 and to pay back taxes as determined by the IRS.

As alleged in the Indictment, Stelzenmuller owned and operated automobile wholesale businesses under the name Muller Auto Sales in Boca Raton, Florida, and later under the name of Imports of Lighthouse Point Inc., in Pompano Beach, Florida. As an automobile wholesaler, Stelzenmuller was licensed to buy and sell used automobiles at auctions and to do business directly with automobile dealerships. Stelzenmuller routinely did business under the alias “Bruce Muller,” using a false and fictitious Social Security number. Stelzenmuller applied for and obtained financing from lenders using the name “Bruce Muller” and the false and fictitious Social Security number.

From on or about 1992 and continuing through 1999, Stelzenmuller employed co-conspirator Irwin Millstein to perform bookkeeping services and prepare individual and corporate tax returns. At Stelzenmuller’s direction, Millstein prepared false and fraudulent tax returns known as “specials.” Millstein provided “specials” to Stelzenmuller that identifed Stelzenmuller as “Bruce Muller” and relied on the false and fictitious Social Security number. Stelzenmuller, in turn, provided the “specials” to the FDIC in order to settle a $2.4 million outstanding judgment for less than full value. Stelzenmuller owed the $2.4 million judgment as a result of loans obtained from the First Commercial Bank of Florida, which was taken over by the FDIC in December 1990.

Stelzenmuller also used the “specials” to obtain financing for a 1998 Bentley Azure Convertible from First Union Bank. Stelzenmuller then caused First Union’s lien on the Bentley to be fraudulently released before obtaining a second round of financing secured by the same Bentley from Ford Motor Credit Corporation. Stelzenmuller then sold the Bentley without paying off either loan.

Finally, with Millstein’s assistance, Stelzenmuller filed false corporate and individual tax returns for the years 1996 and 1997, substantially understating his taxable income and income tax. At sentencing, the district court found the tax loss attributable to these two years to exceed $1.5 million.

Mr. Jiménez commended the investigative efforts of the Internal Revenue Service. This case is being prosecuted by Assistant United States Attorney Thomas Lanigan and Trial Attorney William J. Lovett of the United States Department of Justice Tax Division.