Flickinger was sentenced to 70 months in prison in 2007 following his conviction for a Ponzi scheme through which he defrauded his clients. After defrauding Flickinger of money he had obtained by fraud, Mounts withdrew more than $250,000 in cash from a bank over two months, taking out just under $10,000 each time to avoid the bank's needing to report the withdrawals two authorities. Mounts and Carlucci spent another $150,000 to buy a 43-luxury boat which Carlucci concealed from the government for more than two years. Mounts was ordered to pay $686,841 in restitution to the victims in Flickinger's case and $80,787.80 in restitution to the IRS. Mounts also was order to forfeit $722,841.

 

Carlucci and Mounts' schemes to steal from Flickinger and his clients included a phony casino project in Antigua. The two defrauded Flickinger of money that was to be used to pay a civil penalty the SEC had levied against Carlucci for a civil securities matter in Utah. They also helped the preparer launder the money through accounts in the Caribbean. After stealing Flickinger's money, they assisted Flickinger to flee to Antigua where he believed funds were hidden by helping him arrange for a private jet. Carlucci then anonymously tipped off authorities, leading to his arrest on July 31, 2004.

Carlucci is scheduled to be sentenced on February 28. He faces a maximum 20 years in prison for conspiracy to commit money laundering; five years in prison for conspiracy to defraud the United States; and three years in prison for filing a false tax return. In the July trial, he was found not guilty of witness tampering. His tax return for 2004 failed to report any of the income from his actions and claimed an earned income tax credit that would entitle him to a refund.
Flickinger and his twin brother Edward were barred from preparing federal tax returns for others in 2005 because of their promotion of fraudulent tax scheme. Edward was not charged in the crimes that involved his brother. In his investment scheme, Joseph admitted stealing $3.6 million from clients and was ordered to pay $2 million in restitution. His actions included the creation of fraudulent trusts and false income tax returns.