by Robin Garr » Mon Feb 12, 2007 8:51 pm
<b>Health of man convicted in wine scam disputed at LA sentencing</b>
JEREMIAH MARQUEZ
Associated Press
LOS ANGELES - A Colorado man who bilked millions of dollars from clients for wine futures is too sick to be imprisoned, his attorney argued Monday. Prosecutors countered that he was healthy enough to work long hours and even ski.
Ronald Wallace, 49, appeared in federal court to be sentenced. After several hours of arguments from the defense and the government, U.S. District Judge Consuelo Marshall said she would issue a sentence later in the day.
Wallace has Crohn's disease, a gastrointestinal condition that causes him chronic pain, internal bleeding and severe anemia, said defense attorney Marilyn Bednarski. 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 sentence Wallace to 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, Colo., 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?" Matthew Sloan, a federal prosecutor, told the court. "That simply can't be."
Sloan also tried rebuff the defense's claim that Wallace would received subpar treatment at a federal prison near the well-known Mayo Clinic in Minnesota.
Wallace pleaded guilty in June 2005 to two counts of mail fraud, four counts of wire fraud and one count of money laundering. The government has recommended he receive between seven and nine years in prison.
Wallace ran an online and mail-order business that specialized in collectable 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.