Kenneth Martinez and Metropolitan EnterprisesConvicted for Stealing Over $455,000 in Taxes
Three Defendants and Three organizations 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 Prison
NEW YORK – Attorney General Letitia James today announced the felony beliefs of three people and three businesses, because of an investigation that is three-year fraudulent techniques when you look at the scaffolding industry carried out by the Attorney General’s workplace, with the Port Authority of brand new York and nj-new jersey, the newest 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 with 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 devoted to uncovering and prosecuting organizations that have actually defrauded their state and many banking institutions away from millions, ” said nyc Attorney General Letitia James. “These fraudsters must now need to pay straight straight right back taken funds and stop their unlawful operations. Allow this be a tutorial to each and every individual and company we will never ever stop fighting against people who seek 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 organizations, Metropolitan Enterprises, Inc., brand New Route asking Inc., and Lifting Up Management LLC had been convicted of felonies for participating in a dollar that is three-million fraudulence and cash laundering scheme between October 2013 and April 2015.
The defendants and their corporations were ordered to pay a total of $1.5 million in restitution and judgments to financial institutions and to New York State as part of their guilty pleas. Defendant Martinez had been sentenced to nine years in State Prison in the Albany taxation situation; he could be scheduled become sentenced to a term that is concurrent of to nine years in state prison regarding the Suffolk loan fraudulence situation on October 17, 2019.
“The result in this situation — for which a company as well as its owner neglected to spend $455,000 in product product sales income tax collected from customers — should act as a warning to all or any people who blatantly disregard our taxation laws, ” stated ny 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 straight straight down about this variety of fraudulence, which deprives New Yorkers of income necessary for vital solutions and programs inside their communities. ”
“i would really like to thank the newest York State Attorney General for accepting our recommendation for this matter and their joint effort in investigating and prosecuting the three individuals and associated three organizations, ” 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 is almost certainly not a legitimate Minority Business Enterprise business performing just work at the planet Trade Center web web site. Our joint research utilizing the Attorney General’s workplace, uncovered proof of unlawful task with two other people and companies. This investigation uncovered a cash laundering scheme and other crimes that are related. The Port Authority IG continues to be committed in preventing comparable conduct. ”
“This sentencing shows the necessity of police force partnerships in rooting out corruption by contractors in this town, ” said new york Department of research (DOI) Commissioner Margaret Garnett. “This variety of income tax fraudulence, where in fact the defendants pocketed a huge selection of 1000s of dollars in product sales and make use of fees which should have already been remitted to New York State, diminishes profits towards the federal federal federal government and erodes the power of federal federal government to serve the people fully. DOI had been very happy to join because of the State Attorney General’s workplace and our police force lovers about this research, which revealed and stopped these unlawful schemes. ”
Metropolitan had been considered among the biggest scaffolding and hoisting contractors in brand New York State 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 in the World Trade Center Transportation Hub. During this time period, the defendants utilized unpaid income tax monies and also the profits of fraudulently compensated loans to help keep the business enterprise afloat. Because of the period of the nyc Attorney General’s indictment that is first 2016, Metropolitan Enterprises, Inc. Sought out of company.
In line with the felony grievance 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 just would not exist or existed but had been owned by Metropolitan or currently encumbered by another standard bank.
The defendants laundered the stolen funds through multiple corporate accounts to promote and conceal their loan fraud scheme. Barkol would cut checks from their corporate account back again to Metropolitan within a case of times of receiving the fraudulently acquired funds, totaling nearly the total 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 pay for negative balances, also to spend present and payroll that is outstanding union dues.
A class C felony; Grand Larceny in the Second Degree, a class C felony; and Scheme to Defraud in the First Degree, a class E felony in July 2019, the six defendants were arraigned in the First District Court of Suffolk County on a felony complaint charging Money Laundering in the Second Degree. On August 7, 2019, the defendants joined listed here pleas that are guilty Suffolk County Court:
- Kenneth Martinez pleaded bad to cash Laundering when you look at the 2nd Degree, a course C felony;
- Shai Sellam pleaded accountable to cash Laundering into the Third Degree, a course D felony;
- Hayim Jacob Barkol pleaded accountable to Scheme to Defraud in the 1st Degree, a course E felony;
- Metropolitan Enterprises, Inc. Pleaded responsible to Grand Larceny within the 2nd Degree, a course C felony;
- New Route asking Inc. Pleaded responsible to Money Laundering when you look at the Third Degree, a course D felony; and
- Raising Up Management LLC pleaded accountable to cash Laundering into the 2nd Degree, a course C felony.
Martinez is anticipated to be sentenced up 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 when sentenced on 12, 2020 august. Barkol is anticipated to be sentenced to a phrase of 5 years of probation for their part when you look at the scheme when sentenced on October 17, 2019. Each one of 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 must spend restitution and perform confessions of judgments on the behalf of the finance institutions, totaling $1.5 million.
Besides the loan fraudulence scheme, in June 2017, defendants Martinez and Metropolitan joined bad pleas to Grand Larceny when you look at the Degree that is second in County Court, linked to their theft of product product sales and make use of fees. Yesterday speedyloan.net/reviews/national-payday, Martinez ended up being sentenced to nine years in State Prison. Also, both defendants performed confessions of judgments for the benefit of the NYS Department of Taxation and Finance, more than $455,000.
These instances are increasingly being prosecuted included in ny Attorney General’s Combatting Upstate Financial Frauds and Schemes (CUFFS) Initiative, led by Director Philip V. Apruzzese — an Assistant Attorney General within the Criminal Enforcement and Financial Crimes Bureau. The CUFFS Initiative ended up being implemented by Attorney General James in order to help regional police force and District Attorney’s workplaces when you look at the research and prosecution of complex economic crimes and cash laundering instances.
Assistant Attorney General Apruzzese is prosecuting these full situations, because of 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 the main 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 ended up being carried out by Chief Auditor Edward J. Keegan and Principal Auditor Investigator Jason Blair associated with the Forensic Audit area.
The Attorney General’s Office thanks DTF’s Criminal Investigations Division, DOI’s workplace for the Inspector General when it comes to NYC School Construction Authority, and, especially, Investigator Charles Shevlin and Assistant Inspector General Nicholas Scicutella, plus the Port Authority of NY/NJ – workplace associated with the Inspector General, and, especially, Investigator Louis Matirko, because of their assistance that is invaluable on investigation.