James R. Lisa, 68, of Jersey City, was found guilty of cheating his clients of well over $2 million and committing several other connected offenses. This is a major example of legal malpractice, and Lisa has been sentenced to 66 months in prison. The sentencing, announced by U.S. Attorney Philip R. Sellinger, marks the culmination of a complex investigation revealing a web of deceit and criminal activity.
After James R. Lisa entered a guilty plea to superseding information charging him with wire fraud, aggravated identity theft, impeding the IRS, failing to file an individual income tax return, and conducting wire fraud while on pretrial release, details of his illegal activities became public. In Newark federal court, U.S. District Judge Julien X. Neals handed down the punishment, delivering a strong message to Lisa about her betrayal of his clients’ confidence and legal obligations.
The Fraudulent Scheme of James R. Lisa
Lisa’s fraudulent scheme began in 2014, when a family contacted him to help repatriate millions of dollars that had been moved to offshore bank accounts decades before. The family also sought his assistance with resolving the tax implications of these funds. Lisa successfully repatriated more than $6 million in 2015, but she misled the family by informing them that the money was still overseas. By 2017, he had returned $4 million to the family while fraudulently claiming the remaining $2 million was out of his control.
Lisa created fabricated IRS closure agreements to conceal his activities. In 2016, he presented the family with a phony agreement requiring them to pay $3 million in taxes and penalties for the returned assets. In 2018, he sent another false agreement suggesting a $2 million tax and penalty payment for the purportedly repatriated $4 million. The IRS never entered into these agreements, and the signatures on the documents were forged.
Obstructing the IRS Investigation
Lisa proceeded with his fraud by providing fictitious documents in response to an IRS summons when one of the family members was audited by the agency. In an effort to impede justice and further complicate the IRS’s inquiry, these documents falsely claimed that the agency had valid closing agreements with the family.
Additional Crimes While on Pretrial Release
Lisa’s criminal activity went beyond his initial fraud. He perpetrated another wire fraud in January 2023 while still on pretrial release. He filed for a $22,000 loan using a forgery that appeared to be a letter from his counsel regarding his criminal trial. This document was designed to mislead the lender about his legal status in order to secure loan approval.
Failure to File Tax Returns
Lisa acknowledged that he had engaged in fraud as well as neglected to complete individual income tax returns from 2015 to 2022. The IRS lost at least $550,000 in taxes as a consequence of this oversight. His inability to pay his taxes increased the severity of his legal issues and played a major role in the accusations made against him.
Sentencing and Restitution
Lisa’s penalty reflected the seriousness of his crimes. Judge Neals sentenced him to 66 months in jail, followed by three years on supervised release. Lisa was also ordered to pay $2.05 million to his fraud victims and $550,000 to the IRS. These financial penalties are intended to provide some restitution to those damaged by his acts while also penalizing his failure to comply with his tax obligations.
Investigation and Prosecution
Special agents from the IRS Criminal Investigation, Newark Field Office, and the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, put in a great deal of work in the investigation that resulted in Lisa’s sentence. Their work was essential in determining the full scope of Lisa’s deceitful actions and in ensuring his prosecution. U.S. Attorney Philip R. Sellinger gave these agencies credit for their diligence and commitment to the case’s investigation.
The government was represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden in this case. Bender made sure that Lisa’s victims received justice and emphasized the grave ramifications of such egregious legal misconduct.
James R. Lisa’s sentence serves as a reminder of the severe consequences for attorneys who breach their clients’ trust and engage in illegal activity. His case highlights the value of integrity in the legal profession as well as the federal authorities’ unwavering pursuit of justice. The sentence not only punishes Lisa for his crimes but also aims to deter similar conduct by others in the legal community.
