Judge settles on 12-year sentence for $10M accounting fraud

The judge sentencing Don Richard Iley has loosened her grip.

Judge Christine Arguello sentenced the former accountant convicted of stealing around $10 million to 12.5 years in prison.

It’s a lighter sentence than the 15 years Arguello doled out earlier this month. Arguello said she had to knock 30 months off of her original total because of sentencing guidelines.

“I have no disdain for (the guidelines),” Arguello said. “I just think they’re too low.”

Iley’s defense attorney Gary Lozow argued for housing Iley in a prison closer to his family’s new home in Kansas and for a lower prison term, in part due to Iley’s age.

“He’s going nowhere, but back to his house a broken man,” Lozow said.

Then Iley spoke.

With his lawyer to one side and a U.S. Marshall on the other, Iley apologized to his victims, many of whom were seated in court.

“I would like to express, though I do not have the words possibly to do so, the depth of my grief and sorrow as testament to the pain that I’ve caused my clients and friends,” he said. “I truly did consider them friends and did like them.”

Iley pleaded with Arguello to give him a lighter sentence, saying he would make it his “number-one goal” to spend the rest of his life paying the $9.7 million restitution to victims. And he entreated Arguello to let him return to his family for a few days before going to prison.

“Because of my stupidity, my arrogance and my bad acts, (my family has) been ripped from the only town they’ve really known,” he said.

Arguello didn’t bite.

She remanded him to the custody of the U.S. Marshall and said she couldn’t take Iley’s pleas for a shorter prison stay seriously without evidence that he will do what he can to pay victims when he gets out.

“Until I see some conduct that will back that up, it’s just words,” she said.

Iley has 14 days to submit an appeal.

For previous BusinessDen coverage of Iley, click here.

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Phil Bicking
Phil Bicking
3 years ago

I can hardly wait for the sequel to this movie,


Bravo! Bravo!

3 years ago

This is stupid. Don couldn’t place investments into accounts without extreme scrutiny. Why isnt Transamerica Financial Advisors being charged with money laundering?

The branch manager ,Ed Graves, got 5%, Don’s recruiter, Carlos Diaz, received 45% of Don’s earnings, and the Feltons received a percentage.

If a car thief used a shop to hide a car, so why is it ok for those people to profit from stolen money?