Los Angeles – A Colorado man who bilked millions of dollars from clients for wine futures was sentenced Monday to five years of probation and two years of home confinement and ordered to pay $11.2 million in restitution.
Ronald Wallace, 49, learned his punishment after his attorney argued against prison on grounds that he wouldn’t receive proper treatment for his Crohn’s disease. The prosecution, which sought between seven and nine years in prison, countered that Wallace has been healthy enough to work long hours and even ski.
U.S. District Judge Consuelo Marshall decided against imprisonment because the Bureau of Prison Terms couldn’t say where Wallace would be confined and she wasn’t satisfied that the bureau could provide the level of care he may require.
“The court is not convinced that the Bureau of Prison Terms can provide the appropriate treatment,” Marshall said.
The judge did restrict Wallace’s recreational activities, a reference to skiing.
Wallace said afterward he was grateful that he wasn’t sent to prison.
“I’m really sympathetic to the victims. … I feel real ly bad,” Wallace said. “I’m looking forward to making the restitution and having the opportunity to do that.”
“It’s a shame”
Federal prosecutor Matthew Sloan was dissatisfied.
“It’s a shame. I think the record reflected that the Bureau of Prisons could provide the necessary medical treatment,” he said.
Crohn’s disease, a gastrointestinal condition, causes Wallace chronic pain, internal bleeding and severe anemia, defense attorney Marilyn Bednarski argued. He wouldn’t receive adequate care if imprisoned, seriously jeopardizing his health, she said.
“The crime is serious,” Bednarski said as she urged the court to choose probation, restitution and home detention instead of prison. “But it’s not a crime deserving of death or serious pain.”
The prosecution noted that testimony in the case showed Wallace was working 50-hour weeks in Aspen on real-estate projects and playing recreational sports.
“Mr. Wallace is hardy enough to play golf, to ski … to go biking, but he’s not well enough to go to prison?” Sloan asked. “That simply can’t be.”
Rarely delivered on promises
Wallace pleaded guilty in June 2005 to two counts of mail fraud, four counts of wire fraud and one count of money laundering.
Wallace ran an online and mail-order business that specialized in collectible wines.
Prosecutors said he promised wine futures to his clients but rarely delivered. Wine futures allow customers to purchase a specific vintage years before it’s bottled and publicly released.
Hundreds of clients claimed they were owed as much as $13 million worth of wine between 1999 and 2003. Among Wallace’s victims were Guess Inc. co-founders Paul and Maurice Marciano, Philadelphia Phillies pitcher Jamie Moyer and “Rush Hour” movie producer Arthur Sarkissian.
