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 jail
NEW YORK – Attorney General Letitia James today announced the felony beliefs of three people and three organizations, as a consequence of a three-year research into fraudulent techniques into 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), plus the new york class Construction Authority. The investigation that is joint dubbed “Operation Skyfall” — revealed 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 hawaii and many finance institutions away from millions, ” said ny Attorney General Letitia James. “These fraudsters must now need to pay straight back taken funds and stop their unlawful operations. Allow this be a tutorial to each and every specific and company that people will never ever stop fighting against people who 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 organizations, Metropolitan Enterprises, Inc., New Route asking Inc., and Lifting Up Management LLC had been convicted of felonies for participating in a three-million dollar loan 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 was sentenced to nine years in State Prison regarding the Albany taxation instance; he could be planned become sentenced to a term that is concurrent of to nine years in state jail in the Suffolk loan fraudulence instance on October 17, 2019.
“The result in this situation — by which a company and its own owner neglected to spend $455,000 in product sales income tax collected from customers — should act as a caution to any or all people who blatantly disregard our income tax 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 down with this sort of fraudulence, which deprives New Yorkers of income necessary for vital solutions and programs within their communities. ”
“I wish to thank this new York State Attorney General for accepting our recommendation for this matter and their joint work in investigating and prosecuting the 3 people and related 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 is almost certainly not a legitimate Minority Business Enterprise company performing work on the entire world Trade Center web web web site. Our investigation that is joint with Attorney General’s workplace, uncovered proof of unlawful task with two other people and organizations. This investigation uncovered a cash laundering scheme and other relevant crimes. The Port Authority IG continues to be committed in preventing comparable conduct. ”
“This sentencing shows the necessity of police partnerships in rooting out corruption by contractors in this town, ” said new york Department of research (DOI) Commissioner Margaret Garnett. “This form of income tax fraudulence, where in actuality the defendants pocketed a huge selection of 1000s of dollars in product product product sales and employ fees which should have now been remitted to New York State, diminishes profits towards the government and erodes the power of federal federal federal government to serve the people fully. DOI had been very happy to join aided by 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 scaffolding that is largest and hoisting contractors in brand New York State between October 2013 and September 2015. Public records show that in 2015, Metropolitan ended up being a subcontractor for assorted work done regarding the George Washington Bridge as well as on the Oculus venture in the global World Trade Center Transportation Hub. During this period, the defendants utilized unpaid income tax monies in addition to profits of fraudulently paid loans to help keep the company afloat. Because of the period of the nyc Attorney General’s very first indictment in 2016, Metropolitan Enterprises, Inc. Sought out of company.
In accordance with the felony grievance as well as other documents, the defendants perpetrated their loan fraudulence scheme by publishing invoices that are fake a phantom deposit check purporting to offer scaffolding and hoisting equipment in one of Barkol’s entities to Metropolitan. In fact, the purported gear either merely would not occur 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 returning to Metropolitan within a question of times of getting the fraudulently acquired funds, totaling almost the entire level of the amount of money received through the institution that is financial. Monies had been then relocated between Metropolitan’s reports and utilized to pay for debts owed with other banking 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 the next pleas that are guilty Suffolk County Court:
- Kenneth Martinez pleaded bad to cash Laundering when you look at the Second Degree, a course C felony;
- Shai Sellam pleaded accountable to cash Laundering when you look at the Third Degree, a course D felony;
- Hayim Jacob Barkol pleaded responsible to Scheme to Defraud in the 1st Degree, a course E felony;
- Metropolitan Enterprises, Inc. Pleaded accountable to Grand Larceny when you look at the Degree that is second course C felony;
- New Route Consulting Inc. Pleaded bad to cash Laundering into the Third Degree, a course D felony; and
- Raising Up Management LLC pleaded bad 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 whenever online payday loan sentenced on 12, 2020 august. Barkol is anticipated to be sentenced to a phrase of 5 years of probation for their role 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 bad pleas to Grand Larceny into the Degree that is second in County Court, pertaining to their theft of product sales and make use of fees. Yesterday, Martinez ended up being 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 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 when you look at the Criminal Enforcement and Financial Crimes Bureau. The CUFFS Initiative had been implemented by Attorney General James so that you can help law that is local and District Attorney’s workplaces within the research and prosecution of complex economic crimes and cash laundering instances.
Assistant Attorney General Apruzzese is prosecuting these instances, with all 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 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 associated with 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, particularly, Investigator Charles Shevlin and Assistant Inspector General Nicholas Scicutella, along with the Port Authority of NY/NJ – workplace regarding the Inspector General, and, particularly, Investigator Louis Matirko, because of their indispensable assistance with this research.