Nov 20, 2009 9:41 am US/Eastern
Allentown Lawyer Convicted Of Money Laundering
PHILADELPHIA (AP) ―
A high-profile Allentown lawyer accused of hiding $500,000 in income by steering it through several charities has been convicted of money laundering and mail fraud.
U.S. District Judge Lawrence Stengel said Thursday that 59-year-old John Karoly Jr. "knowingly and willfully" participated in a scheme to defraud the Lehigh Valley Community Foundation and Dubbs Memorial United Church of Christ in Allentown.
Prosecutors said Karoly gave the money to the community group but then had it steered to his church, which sent most of it back to him in the name of a private wilderness foundation he created.
Karoly testified during the non-jury trial in Philadelphia that he believed his money was merely being held "in escrow." No sentencing date has been set. In July, Karoly pleaded guilty to failing to pay taxes on $5.2 million in income.
Information from: The Morning Call, http://www.mcall.com
(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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