War Stories with Jim Cavanaugh: Roggio Part Two

Read Roggio Part One

Written by Jim Cavanaugh – He did know Roggio and felt that there may be some logical explanation. He would have an inquiry made and contact me.

Helms’ was a business associate of Roggio, although they were not close socially. He told the agent that as all political appointees, he had to place his personal financial dealings in a blind trust during the tenure of his appointment. This is a routine requirement to lessen the chance of a scandal wherein some appointee might gain financially from some government decision he made as an appointee. In Helms’ case, Roggio was tending to his personal finances while he was FAA Administrator.

While waiting for this to happen, I did my own inquiry. Roggio was a shadowy figure. He had a criminal record for impersonation of an attorney, and there were fraud allegations, a bankruptcy investigation. He had a string of corporation shell companies around the US with the headquarters outside of Philadelphia.

J Lynn Helms had been a war hero in Korea and was the second person to fly faster than the speed of sound. He had an excellent reputation and was respected in Washington’s inner circles. Roggio was an unknown, but by checking bank records, I discovered he was amassing a lengthy string of loans at a number of banks all around the country. It seemed Roggio and Helms had a large number of bank accounts and bank loans.

I subpoenaed the records and found a pyramid scheme. Roggio was borrowing from one bank to pay loans he had obtained at previous banks. Each time the total amount he owed increased to the point where he had debts over $160,000,000. These loans were given based on false and fake financial information that Roggio furnished the bank officers. He would supposedly have his “accounting firm” prepare the Financial Statements and provide them to the banks to show that he was worth even more millions and could repay any loan. In truth these financial statements were bogus. His “firm” was Early, Lyman, Gilbert of Philadelphia. The letterhead of the CPA firm looked impressive and was on the cover sheets of the statements.

“Early, Lyman, Gilbert” was actually one man named Early Lyman Gilbert, and not a firm; as all of the financial statements were made to appear. Gilbert was a former CPA that had failed to maintain his accreditation as a CPA and, in fact, worked in Roggio’s office. He was a phony.

As the bank records came in, I quickly saw that Roggio and his crew had financial statements that were given to different banks on the same day, yet the statements would differ by as much as $5,000,000. Roggio and Gilbert would pick and choose what loans and assets they would place on a particular statement to conceal the actual numbers from the banks.

Contacting Dunn & Bradstreet, I learned that Roggio was listed as an attorney and his assistant, Charles Ascenzi, was listed as having an MBA from the Wharton School of Business. Gilbert was shown as a prestigious accounting firm. Dunn & Bradstreet is a mainstay for financial information and banks routinely check out people as well as companies prior to granting loans. Roggio’s entire listing was a fake. Roggio was a high school drop-out. Ascenzi only made it to the 10th grade. The only one that had a college degree was Gilbert, and he had lost his claim as a CPA for failing to maintain his education.

To Be Continued…