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Ex-Daley Aide's 'Unsophisticated' Accounting Led to $90K Swindle: Attorney

By Casey Cora | August 29, 2014 5:39am
 Former mayoral aide Gene Lee is facing prison time, but attorneys say he deserves a second chance.
Former mayoral aide Gene Lee is facing prison time, but attorneys say he deserves a second chance.
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DNAinfo/Casey Cora

CHINATOWN — It wasn't greed that led Gene Lee to embezzle nearly $100,000 from a nonprofit's coffers. It was blinding loyalty to the public and bad bookkeeping.

That's what attorneys for the disgraced former deputy chief of staff to Mayor Richard M. Daley have argued in documents filed in federal court ahead of Lee's sentencing on tax fraud and embezzlement charges.

Lee's sentencing was scheduled for Thursday but has been pushed back to Sept. 18.

Casey Cora said letters of support from the community were the reason the sentencing was delayed:

Lee, 65, pleaded guilty to the felony charges in April after admitting to taking money — some $92,000 — raised for the Chinese Consolidated Benevolent Association and the Chinatown Dragons athletics and events group. Prosecutors said Lee cashed donation checks at a local restaurant, kept some of the money for himself and didn't pay taxes on it.

The guilty plea has subjected Lee, a Vietnam War veteran and the founder of the Chinatown Dragons youth basketball teams, to a "very public shaming, jeopardizing his life's work, reputation, legacy and good name," attorney Anthony Masciopinto wrote in court documents.

Lee admitted misusing the funds but says the total was only about $43,000, which his lawyers say were used to buy "very mundane items," like business suits and gasoline, which Lee saw as part of his role as a community leader who kept kids out of trouble.

What's more, his attorneys say, Lee's accounting methods are "unsophisticated and quite disorganized," leading to more confusion in his bookkeeping.

Lee faces a maximum sentence of 10 years in prison on the theft count and three years on the tax count, but prosecutors will likely seek a lesser sentence of 18 to 24 months, according to the plea agreement.

But Lee's attorneys are asking Judge John Darrah to forgo jail time and instead put him on probation. Lee would also have to pay the restitution to the nonprofit groups within a year — he owes $92,841 to the groups, plus thousands more in interest and criminal fines.

In the wake of Lee's guilty plea, many Chinatown residents have lined up to support him. They're calling Lee an "angel" and "mentor" and "father figure" who tirelessly led efforts to host events like the Chinatown Summer Fair and popular Chinese New Year Parade.

In court papers, attorneys have included more than 150 letters from the community supporting Lee, who they say is in poor health after a recent quadruple bypass, among other health concerns.

"I am without a doubt a better person because of Gene, and I can honestly say that no one has done more for the Chinese community than Gene Lee," one letter reads.

Says another: "I do not know who could do a better job or would sacrifice so much of his time to help people."'

The letters were sealed, however, and the names of Lee's supporters were not included in the court filing.

The Benevolent Association and Dragons did not return messages seeking comment.

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