Auto dealer facing federal charges; Manager on south side accused of money laundering

Posted: May 24, 2006

The manager of Diamond Jim's Auto Sales on Milwaukee's south side has been indicted on two money laundering charges in federal court in Milwaukee.

James Letizia Jr., also known as "Turk," is the namesake son of the dealership's founder. If convicted on both charges, he faces a maximum penalty of 23 years in prison and $350,000 in fines.

According to the indictment, Letizia was the target of an undercover operation by the Criminal Investigation Division of the Internal Revenue Service. The charges stem from the September 2003 sale of a Cadillac Escalade for $19,600 in cash.

In buying the car, the undercover agent represented the cash to be the "proceeds of specified unlawful activity," according to the indictment. In most cases, such wording means that the agent was posing as a drug dealer.

The indictment alleges that Letizia knew the money came from illegal activity and agreed to sell the car to help conceal that fact.

Accused of lying on tax form

The second charge has to do with lying on IRS Form 8300. That form allows the IRS to track cash transactions over $10,000. By signing it, merchants and bankers certify that the information on it is true. Letizia is accused of falsifying the form by putting a false name on it, according to the indictment.

Reached Tuesday, Letizia said he had no idea he was under investigation. He said he had not yet hired an attorney.

Letizia's first court date has not yet been set.

Source: www.jsonline.com;  by GINA BARTON;  gbarton@journalsentinel.com

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