Fraud charges denied - Woman accused of raiding trust funds
By Adam Silverman
The Burlington Free Press
A 55-year-old Williston woman pleaded not guilty Tuesday to a 12-count federal indictment that accuses her of raiding the trust funds of two of her 21 adopted daughters.
Marian DiMaria also is accused of attempting to defraud the Social Security Administration. She was released on personal recognizance after the morning hearing in U.S. District Court in Burlington. She declined to comment as she left the courthouse.
Government prosecutors accuse DiMaria of lying to a Pennsylvania bank to obtain $168,000 from trust funds established for DiMaria's daughters by her wealthy grandfather and concealing assets on applications for Social Security benefits. The charges -- five of wire fraud, three of mail fraud and four of Social Security fraud -- carry a total of up to 30 years in prison.
According to the indictment, DiMaria and her husband, John, moved to Vermont in 1999 and settled at a Jericho ranch they named the Gypsy Grace Ranch. The couple had about 21 adopted daughters, most of whom were from Russia and China and had hearing impairments.
DiMaria was the beneficiary of a family trust fund established by her grandfather, inventor L. Drew Betz, according to the government. Her trust was worth about $7 million, according to prosecutors. Six of the adopted children also were beneficiaries of Betz trusts, which specified the money was only for the beneficiary's health, education, maintenance and support, according to the indictment.
By 2002 DiMaria's trust "had been substantially depleted," according to the indictment. That's when, the government alleges, DiMaria began to obtain and use money from the trusts of two daughters for ranch and household expenses.
The Gypsy Grace Ranch Web site says the ranch is the largest breeder of Gypsy horses in North America. A woman who answered the phone Tuesday afternoon at the ranch said she had no comment.
The nine-page indictment says DiMaria called and sent letters to Mellon Bank of Pittsburgh requesting $10,000 to buy one daughter a golf cart; $62,000 to buy that daughter a mobile home and a car; and $96,000 to buy another daughter a mobile home and a car.
The bank sent checks in response to DiMaria's requests, according to the indictment.
In April 2003, DiMaria applied for supplemental Social Security income for four other daughters, but on the applications concealed the existence of the trust funds for those children, according to the federal indictment.
Some of the daughters are living on their own, while others are in the care of the Vermont Department for Children and Families, attorneys said in court. John DiMaria is serving a prison sentence on unrelated state charges.
During Tuesday's hearing, Marian DiMaria spoke softly when questioned by U.S. Magistrate Judge Jerome Niedermeier. She answered his questions with simple, brief responses.
Niedermeier released DiMaria on conditions, including that she obtain a job if physically able, surrender her passport, not move from her Williston home and not travel outside Vermont and New York.
Contact Adam Silverman at 660-1854 or asilverm@bfp.burlingtonfreepress.com