Kenneth Martinez and Metropolitan EnterprisesConvicted for Stealing Over $455,000 in fees
<>Three Defendants and Three organizations 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 jail
NEW YORK – Attorney General Letitia James today announced the felony beliefs of three individuals and three businesses, due to a three-year research into fraudulent methods 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 latest York state dept. Of Taxation and Finance (DTF), therefore the 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 banking institutions away from vast amounts, after which laundered the profits through numerous companies.
“We are all devoted to uncovering and prosecuting companies that have actually defrauded hawaii and numerous banking institutions away from millions, ” said nyc Attorney General Letitia James. “These fraudsters must now need to pay right straight back taken funds and stop their operations that are illegal. Allow this be described as a course to every specific and company that people shall never stop fighting against those that make an effort 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 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.
As an element of their guilty pleas, the defendants and their corporations had been purchased to pay for an overall total of $1.5 million in restitution and judgments to banking institutions and also to New York State. Defendant Martinez had been sentenced to nine years in State Prison in the Albany income tax 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 situation on October 17, 2019.
“The result in this situation — for which a company and its own owner neglected to spend $455,000 in sales taxation gathered from customers — should act as a warning 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 split straight straight straight down about this kind of fraudulence, which deprives New Yorkers of income necessary for vital solutions and programs inside their communities. ”
“I wish to thank the brand new York State Attorney General for accepting our recommendation of the matter and their joint work in investigating and prosecuting the 3 people and related three organizations, ” stated Port Authority Inspector General (IG) Michael Nestor. “The Port Authority IG commenced this investigation 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 just work at the whole world Trade Center web site. Our joint research utilizing the Attorney General’s workplace, uncovered proof of unlawful task with two other people and organizations. This investigation uncovered a cash laundering scheme and other crimes that are related. The https://nationalpaydayloans.net 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 types of income tax fraudulence, in which the defendants pocketed a huge selection of 1000s of dollars in product product sales and make use of fees which should have now been remitted to New York State, diminishes profits to your federal federal government and erodes the capability of federal federal government to serve the people fully. DOI had been happy to join because of the State Attorney General’s Office and our police force lovers with this research, which revealed and stopped these criminal schemes. ”
Metropolitan had been considered among the scaffolding that is largest 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 in the George Washington Bridge as well as on the Oculus venture during the global World Trade Center Transportation Hub. During this period, the defendants utilized unpaid income tax monies therefore the profits of fraudulently paid loans to help keep the business enterprise afloat. Because of the period of the nyc Attorney General’s very first indictment in 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 invoices that are fake a phantom deposit check purporting to offer scaffolding and hoisting equipment from 1 of Barkol’s entities to Metropolitan. The truth is, the purported gear either merely failed to occur 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 case of times of getting the fraudulently acquired funds, totaling very nearly the entire number of the amount of money gotten through the standard bank. Monies were then relocated between Metropolitan’s reports and utilized to pay for debts owed with other finance 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 listed here pleas that are guilty Suffolk County Court:
- Kenneth Martinez pleaded accountable to cash Laundering when you look at the 2nd Degree, a course C felony;
- Shai Sellam pleaded bad 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 responsible to Grand Larceny into the Degree that is second course C felony;
- New Route asking Inc. Pleaded responsible to cash Laundering into the Third Degree, a course D felony; and
- Raising Up Management LLC pleaded responsible to cash Laundering when you look at the 2nd 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 whenever sentenced on 12, 2020 august. Barkol is anticipated to be sentenced to a term of 5 years of probation for their role when you look at the scheme when sentenced on 17, 2019 october. Each one of the entities is anticipated to be sentenced up to a three-year discharge that is conditional sentenced on October 17, 2019. Included in 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 bad pleas to Grand Larceny within the Degree that is second in County Court, linked to their theft of product sales and employ fees. Yesterday, Martinez had been sentenced to nine years in State Prison. Furthermore, both defendants performed confessions of judgments for the main benefit of the NYS Department of Taxation and Finance, more than $455,000.
These situations are now 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 when you look at the Criminal Enforcement and Financial Crimes Bureau. The CUFFS Initiative ended up being implemented by Attorney General James in an attempt to help regional police force and District Attorney’s workplaces into the research and prosecution of complex economic crimes and cash laundering instances.
Assistant Attorney General Apruzzese is prosecuting these instances, utilizing 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 ended up being carried out by Investigator Mark J. Terra, underneath the guidance 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 regarding the Forensic Audit part.
The Attorney General’s Office thanks DTF’s Criminal Investigations Division, DOI’s workplace of this 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, particularly, Investigator Louis Matirko, with regards to their priceless support about this research.
