Former Arizona State Representative Sentenced to 27 Months in Prison for Wire Fraud and Tax Evasion Related to the Misuse of More Than $140,000 in Charity Funds

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WASHINGTON—Former Arizona StateRepresentative Richard David Miranda was sentenced today to 27 months in prisonfor defrauding a charity of more than $140,000 and evading income tax relatedto those unlawfully obtained funds, announced Assistant Attorney General LannyA. Breuer of the Justice Department’s Criminal Division; Special Agent inCharge James L. Turgal of the FBI’s Phoenix Field Office; and Special Agent inCharge Dawn Mertz of the Internal Revenue Service-Criminal Investigation(IRS-CI), Phoenix Office.
Miranda, 55, of Tolleson, Arizona,served as a member of the Arizona House of Representatives for the 13thDistrict from 2011 until his resignation, effective February 20, 2012. Miranda previouslyserved as a member of the Arizona State Senate from 2002 until 2011 and theArizona House of Representatives from 1999 until 2002. Since July 2002, Mirandaalso served as executive director of Centro Adelante Campesino Inc., anon-profit charitable organization that provided food, clothing, andeducational assistance to persons in need, including migrant farm workers, inand around Maricopa County, Arizona.
On March 14, 2012, Miranda pleadedguilty to a two-count information charging him with defrauding Centro of morethan $140,000 and evading income tax related to those unlawfully obtainedfunds. As part of his plea agreement, Miranda agreed to resign from office.Miranda was also ordered to pay a total of $230,342 in restitution ($212,220for funds he unlawfully obtained from Centro, along with an additional $18,122he unlawfully obtained from the Arizona Latino Caucus Foundation).
During his plea, Miranda admitted that,in May 2005, he initiated a scheme to wind down Centro, sell Centro’s soleremaining asset (a building), and use the proceeds of the sale for personalexpenses. To do so, Miranda removed the charity’s longstanding volunteeraccountant as an authorized signer on the charity’s bank and credit unionaccounts, and assumed sole control of the charity’s accounts and financialrecords. He also told the volunteer accountant that the proceeds of the salewould be used to fund scholarships. In March 2007, the building was sold for$250,000, and on March 7, 2007, a significant portion of the profits of thatsale, $144,576, were wired across state lines into Centro’s credit unionaccount.
Miranda also admitted that within oneweek of the wire transfer, he began to withdraw the proceeds from Centro’scredit union account without the authorization or knowledge of Centro’s boardof directors. For example, Miranda obtained two checks payable to himself,totaling $37,000, and paid off personal credit card debts totaling more than$60,000. By December 31, 2007, Miranda had withdrawn the remaining proceeds(approximately $46,836) using checks, withdrawals, and electronic fundstransfers, and used the funds to pay off additional personal debts and makenumerous purchases for personal travel, services, clothing, food, and householditems. Miranda also failed to report the proceeds of the sale as income on hisIRS Form 1040 for calendar year 2007.
This case is being prosecuted by TrialAttorneys Monique T. Abrishami and Brian A. Lichter of the Public IntegritySection in the Justice Department’s Criminal Division and Assistant U.S.Attorney Frederick A. Battista of the District of Arizona. The case is beinginvestigated by agents from the FBI Phoenix Field Office and IRS-CI PhoenixOffice.