CLEVELAND Goldberg faces more prison time

The concealed assets are to be returned, and the IRS can go after the lawyer for back taxes.
By D.A. WILKINSON
VINDICATOR STAFF WRITER
CLEVELAND -- Richard Goldberg didn't keep his word when he agreed to cooperate with authorities.
As a result, he's been sentenced to an additional 16 months in federal prison for diverting funds he promised to turn over and for income tax fraud.
Most of the additional time is for concealing funds, said David Sierleja, assistant U.S. attorney.
Goldberg is serving 41 months in federal prison for defrauding his former clients out of millions of dollars that were used to finance a lavish lifestyle.
Pleaded guilty: The good news for him is that Monday's hearing ends the federal charges. Goldberg pleaded guilty to one count of tax fraud before Judge Dan Aaron Polster in U.S. District Court.
That added several months in prison time under federal sentencing guidelines, said Sierleja.
Goldberg originally entered into a plea agreement involving eight fraud counts totaling $4.5 million. As part of the agreement, he was to turn over money he had taken in unearned legal fees and awards from his legal practice that handled medical malpractice and wrongful death cases.
However, he diverted $235,000 to several people. They will not face charges, Sierleja said. They had legitimate reasons to expect payment from Goldberg.
They were contacted and will turn over the money to the courts.
Goldberg's tax fraud charge was for 1997, in which he reported income of $463,551 but had nearly $1.21 million in unreported income, Sierleja said.
Investigation also showed that in 1995 Goldberg had reported income of $582,576 and unreported income of $890,798. In 1996, he had reported income of $479,321 and unreported income of $798,616.
IRS to be told: That information will be turned over to the IRS, said Sierleja, who declined to comment on whether charges would be brought against anyone for helping Goldberg underreport his income taxes.
About $500,000 of the money Goldberg took has been located by Judge Polster and about $1 million has been located by Judge Timothy P. Malone of Mahoning County Common Pleas Court, Sierleja said.
It's up to federal prison authorities where he will serve the additional time. He has been in a federal prison in Morgantown, W.Va.
Judge Maloney has ordered that Goldberg serve 21 months in the county jail on contempt of court charges.
Goldberg was also indicted in March in county common pleas court on three counts of engaging in a pattern of corrupt activity, 20 counts of forgery, six counts of theft and two counts of taking the identity of another.
He faces a maximum of 83 years in prison if convicted on those charges.