Ohioan Convicted in Tax-Shelter Scam

A federal court jury in Los Angeles convicted an Ohio businessman Tuesday of bilking 1,150 investors of $12.6 million in a tax-shelter scheme featuring audio tapes made by such celebrities as Dodger Manager Tommy Lasorda, actor Vincent Price and singer Pat Boone.

Johnathan D’Orio, 41, of Akron, was convicted of conspiracy, tax fraud and mail fraud. The same jury acquitted former Hollywood record producer C. W. Wilburn, 66, of Ventura, of back-dating tax-shelter records.

Assistant U.S. Atty. David Katz said D’Orio told investors that for $10,000 they could buy into a program that would allow them to take 10% of the tapes’ value off their taxable income, resulting in a write-off of at least $18,000. The tax-deduction claims were disallowed by the Internal Revenue Service.

Katz said the government was defrauded of $20 million in taxes.

Lasorda, Price and Boone testified during the trial that they were paid from $10,000 to $15,000, plus $250 per tape, to make recordings. Lasorda recorded tapes on baseball techniques and strategy, Price made cooking tapes and Boone recorded nursery rhymes.

Katz said the celebrities were “duped.”