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Capoccia Federal Indictment

(updated: March 11th, 5:00pm) Andrew Capoccia, his wife Carol, and business associate Howard Sinnott were arraigned in a Vermont Federal Court on charges stemming from their involvement in a Bennington debt reduction law firm. Federal officials say the defendants took money from clients' accounts and put it in their own bank accounts.

Charged with fraud, stealing clients funds, and money laundering, former New York Attorney Andrew Capoccia, and his wife Carol surrender themselves in Federal Court today; this after a grand jury hands up a 40-count indictment.

Tonight the Capoccia's are out on personal recognizance, meaning they did not have to post bail because Judge Neidemeier says they have gone anywhere, even though they had to know these charges were coming. Just to be sure, the pair have turned over their passports.

Andrew and Carol Capoccia beat a hasty retreat from Federal Court this morning, after entering not guilty pleas. Before allowing them to leave his courtroom, the judge ordered them both to stay away from a witness, identified in court as Alana Caprotti, a witness who told the prosecutor that the Capoccias were in touch with her before and after she testified before the grand jury.

Howard Sinnott, Andrew Capoccia's former partner who later bought the law firm from him and set it up in Bennington, Vermont, faces almost the same charges as Capoccia. He too plead not guilty and was freed on his own recognizance.

The federal case is spelled in the indictment. Basically it says even after the law firm changed hands, funds were being drained from client's accounts, with millions of dollars being funneled to Carol Capoccia.

If convicted, Capoccia could spend life in prison.

Stay tuned with NEWS10 starting at 5 o'clock for an exclusive report by NEWS10's Priscilla Ress.