Opinion ID: 762144
Heading Depth: 3
Heading Rank: 4

Heading: January-August 1989: Federal investigation and indictments

Text: 20 In January 1989, federal law enforcement agents seized all available records of the Campgrounds and related corporations. The seizure was part of a widespread investigation into the illegal activities of the LiVorio-Sabatini Group, the corrupt Bank One officials, and others. 21 On August 14, 1989, William LiVorio, the Group's head, was indicted for violations of 18 U.S.C. § 1344 (scheme to defraud a bank) and 26 U.S.C. § 7206(1) (income tax evasion). Significantly, the indictment charged LiVorio with: (i) drawing cash receipts from Ponderosa Park Music, Inc.; (ii) making disguised payments for his own benefit; and (iii) paying himself huge profit and salary distributions despite the Campgrounds' declining financial condition and the mounting indebtedness to Bank One. LiVorio pleaded guilty on September 6, 1989. 22