Ex-exec gets 11 years for US$10 mil. scam

The China Post - - WORLD BUSINESS - BY AMANDA LEE MY­ERS

As an ac­count­ing ex­ec­u­tive at Gulf­stream Aerospace, Marvin Jay Caukin was pulling in a quar­ter-mil­lion dol­lars a year and had a wife 30 years his ju­nior. He was liv­ing a lav­ish lifestyle that in­cluded split­ting time be­tween two lux­ury Los An­ge­les-area homes, and pay­ing for the com­pany of fe­male es­corts, lux­ury cars and US$800 din­ners, fed­eral in­ves­ti­ga­tors say.

Turns out, Caukin’s salary was hardly fund­ing any of it.

Caukin was sen­tenced to 11 years in prison Mon­day af­ter he ad­mit­ted to em­bez­zling more than US$10 mil­lion from Gulf­stream dur­ing a 13-year pe­riod as part of a plea agree­ment with pros­e­cu­tors.

Caukin’s de­fense at­tor­ney, Mark Werks­man, said t he 66-year-old was dev­as­tated by the sen­tence. Werk­man had ar­gued in court records that a lengthy prison term at Caukin’s age amounted to a life sen­tence, would be in­sult­ing to vic­tims of vi­o­lent crimes, and that Caukin’s fam­ily needs him.

Werks­man had ar­gued that Caukin be sen­tenced to pro­ba­tion or no more than six years in prison.

“He’s a good man who did a bad thing,” Werks­man said. “He’s ex­tremely re­morse­ful.”

Be­fore he was sen­tenced, Caukin apol­o­gized in court and begged Judge John Wal­ter mercy.

Pros­e­cu­tors had asked that Wal­ter sen­tence Caukin to 12 1/2 years in prison, ar­gu­ing that Caukin had pre­vi­ously been con­victed in an em­bez­zle­ment scheme at another com­pany in the early 1990s be­fore he was hired at Gulf­stream on a bo­gus re­sume in 2000.

Caukin served about three years in prison in the pre­vi­ous case, and he clearly didn’t learn his les­son, pros­e­cu­tors said.

“From 1994 un­til 2013, when de­fen­dant was fired (from Gulf­stream), the only years de­fen­dant was not con­tin­u­ally com­mit­ting fraud were those in which he was in­car­cer­ated,” pros­e­cu­tors ar­gued

for in court records.

Gulf­stream hired Caukin in 2000, putting him in charge of fi­nance and ac­count­ing for its fa­cil­i­ties in Las Ve­gas and Long Beach, Cal­i­for­nia, pros­e­cu­tors say. Al­most im­me­di­ately, Caukin had close friends and fam­ily set up shell com­pa­nies while he gave Gulf­stream fake in­voices for nonex­is­tent work, al­ways keep­ing the charges un­der US$100,000 to avoid sus­pi­cion, ac­cord­ing to in­ves­ti­ga­tors.

A Gulf­stream spokesman clined to com­ment.

In ad­di­tion to his prison term, Caukin was or­dered to pay more than US$10 mil­lion in resti­tu­tion and for­feit his two homes, worth an es­ti­mated US$2.4 mil­lion.

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