Process Skyfall: AG James Announces Convictions In $3 Million Dollar Loan Fraud And Cash Laundering Scheme

Process Skyfall: AG James Announces Convictions In $3 Million Dollar Loan Fraud And Cash Laundering Scheme

Kenneth Martinez and Metropolitan EnterprisesConvicted for Stealing Over $455,000 in fees

<>Three Defendants and Three businesses Plead Guilty to Felony Chargesand Must Pay a complete of $1.5 Million in Restitution and Judgments

Kenneth Martinez, Owner of Metropolitan Enterprises, Sentenced to Three to Nine Years in jail

NEW YORK – Attorney General Letitia James today announced the felony beliefs of three people and three organizations, because of an investigation that is three-year fraudulent techniques when you look at the scaffolding industry conducted by the Attorney General’s workplace, with the Port Authority of the latest York and nj-new jersey, this new York state dept. Of Taxation and Finance (DTF), in addition to new york class Construction Authority. The investigation that is joint dubbed “Operation Skyfall” — unveiled that the six co-defendants involved in a two-year scheme to defraud finance institutions away from huge amount of money, after which laundered the profits through numerous organizations.

“We are all dedicated to uncovering and businesses that are prosecuting have actually defrauded their state and various finance institutions away from millions, ” said ny Attorney General Letitia James. “These fraudsters must now need to pay straight straight right back taken funds and stop their operations that are illegal. Allow this be considered a class to each and every specific and company that people shall never stop fighting against those that try to defraud New Yorkers.

In Suffolk County Court, Kenneth G. Martinez (51, of Lawrence), Shai Sellam a/k/a Sean Green (45, of Woodmere), and Hayim Jacob Barkol f/k/a Kadir Barkol (39, of Brooklyn), with their particular businesses, Metropolitan Enterprises, Inc., brand brand brand New Route asking Inc., and Lifting Up Management LLC were convicted of felonies for participating in a dollar that is three-million fraudulence and cash laundering scheme between October 2013 and April 2015.

Included in their bad pleas, the defendants and their corporations had been purchased to pay for a complete of $1.5 million in restitution and judgments to banking institutions also to New York State. Defendant Martinez ended up being sentenced to nine years in State Prison in the Albany income tax situation; he could be planned become sentenced up to a concurrent term of three to nine years in state jail in the Suffolk loan fraud instance on October 17, 2019.

“The result in this case — by which a small business and its own owner did not spend $455,000 in product product sales tax gathered from customers — should act as a caution to any or all people who blatantly disregard our taxation laws, ” stated nyc State Commissioner of Taxation and Finance Michael Schmidt. “We will work with Attorney General James and all sorts of quantities of police force to break straight down about this types of fraud, which deprives New Yorkers of income required for vital solutions and programs inside their communities. ”

“I wish to thank the brand new York State Attorney General for accepting our recommendation for this matter and their effort that is joint in and prosecuting the three people and associated three companies, ” stated Port Authority Inspector General (IG) Michael Nestor. “The Port Authority IG commenced this research based on allegations that Metropolitan Enterprises, Inc., a scaffolding and business that is hoisting its President, Kenneth Martinez may possibly not be a legitimate Minority Business Enterprise business performing work on the entire world Trade Center web web web site. Our joint research utilizing the Attorney General’s workplace, uncovered proof of unlawful task with two other people and businesses. This investigation uncovered a cash laundering scheme and other crimes that are related. The Port Authority IG stays committed in preventing similar conduct. ”

“This sentencing shows the significance of police force partnerships in rooting out corruption by contractors in this town, ” said new york Department of research (DOI) Commissioner Margaret Garnett. “This style of income tax fraudulence, in which the defendants pocketed a huge selection of 1000s of dollars in product sales and employ fees which should have already been remitted to New York State, diminishes profits into the federal federal government and erodes the power of federal government to completely provide the individuals. DOI ended up being very happy to join aided by the State Attorney General’s workplace and our police lovers with this research, which revealed and stopped these unlawful schemes. ”

Metropolitan had been considered among the biggest scaffolding and hoisting contractors in New York State https://speedyloan.net/reviews/payday-money-center between October 2013 and September 2015. Public records reveal that in 2015, Metropolitan had been a subcontractor for assorted work done from the George Washington Bridge as well as on the Oculus venture during the global World Trade Center Transportation Hub. The defendants used unpaid tax monies and the proceeds of fraudulently paid loans to keep the business afloat during this time. Because of the period of the ny Attorney General’s indictment that is first 2016, Metropolitan Enterprises, Inc. Sought out of company.

Based on the felony problem as well as other papers, the defendants perpetrated their loan fraudulence scheme by publishing fake invoices and a phantom deposit check purporting to market scaffolding and hoisting equipment from a single of Barkol’s entities to Metropolitan. In fact, the purported gear either merely would not exist or existed but had been owned by Metropolitan or currently encumbered by another institution that is financial.

To market and conceal their loan fraudulence scheme, the defendants laundered the taken funds through numerous business records. Barkol would cut checks from their business account back into Metropolitan within a matter of times of getting the fraudulently acquired funds, totaling very nearly the entire number of the amount of money gotten through the institution that is financial. Monies had been then relocated between Metropolitan’s reports and utilized to pay for debts owed to many other finance institutions, to cover negative balances, and also to spend present and payroll that is outstanding union dues.

In July 2019, the six defendants had been arraigned in the 1st District Court of Suffolk County for a felony problem asking cash Laundering into the 2nd Degree, a course C felony; Grand Larceny within the 2nd Degree, a course C felony; and Scheme to Defraud in the 1st Degree, a course E felony. On August 7, 2019, the defendants joined the next pleas that are guilty Suffolk County Court:

  • Kenneth Martinez pleaded responsible to cash Laundering into the Degree that is second course C felony;
  • Shai Sellam pleaded guilty to cash Laundering when you look at the Third Degree, a course D felony;
  • Hayim Jacob Barkol pleaded bad to Scheme to Defraud in the 1st Degree, a course E felony;
  • Metropolitan Enterprises, Inc. Pleaded accountable to Grand Larceny into the 2nd Degree, a course C felony;
  • New Route asking Inc. Pleaded bad to cash Laundering into the Third Degree, a course D felony; and
  • Lifting Up Management LLC pleaded bad to cash Laundering when you look at the 2nd Degree, a class C felony.

Martinez is anticipated to be sentenced to a of three to nine years in State Prison on October 17, 2019. Sellam faces as much as two to six years in State Prison whenever sentenced on August 12, 2020. Barkol is anticipated to be sentenced to a term of 5 years of probation for their part when you look at the scheme when sentenced on 17, 2019 october. All the entities is anticipated to be sentenced to a three-year conditional release whenever sentenced on October 17, 2019. As an element of their sentences, the defendants need to pay restitution and perform confessions of judgments with respect to the banking institutions, totaling $1.5 million.

As well as the loan fraudulence scheme, in June 2017, defendants Martinez and Metropolitan joined responsible pleas to Grand Larceny within the 2nd Degree in Albany County Court, associated with their theft of product product sales and employ fees. Yesterday, Martinez had been sentenced to nine years in State Prison. Also, both defendants performed confessions of judgments for the advantage of the NYS Department of Taxation and Finance, more than $455,000.

These instances are increasingly being prosecuted included in New York Attorney General’s Combatting Upstate Financial Frauds and Schemes (CUFFS) Initiative, led by Director Philip V. Apruzzese — an Assistant Attorney General when you look at the Criminal Enforcement and Financial Crimes Bureau. The CUFFS Initiative ended up being implemented by Attorney General James so that you can assist neighborhood police force and District Attorney’s workplaces into the research and prosecution of complex monetary crimes and cash laundering instances.

Assistant Attorney General Apruzzese is prosecuting these full situations, aided by the support of Legal Support Analysts Kira M. Russom and Supervising Analyst Paul Strocko. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Stephanie Swenton and Deputy Bureau Chief Joseph D’Arrigo, and it is an element of the Criminal Division, led by Chief Deputy Attorney General Josй Maldonado.

The Attorney General’s research had been carried out by Investigator Mark J. Terra, underneath the direction of Supervising Investigator Mark Spencer and Deputy Bureau Chief Antoine Karam. The Investigations Bureau is led by Chief Oliver Pu-Folkes. Forensic accounting had been carried out by Chief Auditor Edward J. Keegan and Principal Auditor Investigator Jason Blair for the Forensic Audit part.

The Attorney General’s Office thanks DTF’s Criminal Investigations Division, DOI’s workplace associated with Inspector General when it comes to NYC School Construction Authority, and, especially, Investigator Charles Shevlin and Assistant Inspector General Nicholas Scicutella, along with the Port Authority of NY/NJ – workplace for the Inspector General, and, particularly, Investigator Louis Matirko, for his or her assistance that is invaluable on research.



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