Former employee of Colorado non-profit health care system sentenced to more than seven years in federal prison for money laundering

 

Date: December 16, 2020

Contact: newsroom@ci.irs.gov

Denver, CO - IRS Criminal Investigation announced today that David Paul Rietz, of Lakewood, Colorado, was sentenced to serve 92 months in federal prison followed by 3 years of supervised release for conspiracy to commit money laundering. Rietz also was ordered to pay restitution of $4,197,775.83.

According to court records, Rietz defrauded his employer, a nonprofit health care system based in Colorado, of more than 16 million dollars. Rietz organized a scheme whereby inflated quotes for computer services were submitted through another company owned by a co-conspirator. Rietz approved these quotes, whereby millions in inflated payments were approved before the fraud was discovered. Proceeds went back Rietz and his co-conspirators through a third company, which returned profits to Rietz in the form of payments on fake contracts for goods and services, gold coins, and cashier checks

"Honest and law-abiding citizens are fed up with those who use deceit and fraud to line their pockets with other people's money," IRS – Criminal Investigation Special Agent in Charge Andy Tsui said. "The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel. Individuals who engage in this type of financial fraud should know they will be held accountable."

Rietz was sentenced on December 14, 2020, by United States District Court Judge R. Brooke Jackson. The sentence included enhancements for being the leader and organizer of the offense and for obstruction of justice for lying under oath in civil proceedings related to the underlying fraud. Rietz's co-conspirators were previously sentenced. Richard Scott Cartwright was sentenced on August 6, 2019, by Judge Jackson to serve 60 months in prison and also ordered to pay restitution of $4,197,775.83, which is the same amount as Rietz. Lyle Perry, who participated in the money laundering but not the underlying fraud, was sentenced to 36 months' imprisonment by Chief Judge Philip A. Brimmer, and ordered to pay approximately $2.6 million in restitution.

This case was investigated by Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Anna Edgar.