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

<>Three Defendants and Three Companies 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 people and three businesses, due to an investigation that is three-year fraudulent techniques within the scaffolding industry carried out by the Attorney General’s workplace, with the Port Authority of the latest York and nj-new jersey, the brand new 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 dedicated to uncovering and prosecuting companies that have actually defrauded their state and various finance institutions out of millions, ” said ny Attorney General Letitia James. “These fraudsters must now need to pay straight straight straight back taken funds and stop their unlawful operations. Allow this be a class to every specific and company that people shall never stop fighting against people who 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 respective businesses, Metropolitan Enterprises, Inc., brand brand brand 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.

Included in their bad pleas, the defendants and their corporations were bought to cover a complete 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 in the Albany income tax situation; he could be planned to be 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 small business and its particular owner did not spend $455,000 in product sales taxation collected from customers — should act as a caution to all or any people who blatantly disregard our income tax laws, ” said ny State Commissioner of Taxation and Finance Michael Schmidt. “We will work with Attorney General James and all sorts of amounts of police to break straight down about this kind of fraudulence, which deprives New Yorkers of revenue required for vital solutions and programs within their communities. ”

“i would really like to thank the latest York State Attorney General for accepting our referral with this matter and their joint work in investigating and prosecuting the 3 people and associated three companies, ” stated Port Authority Inspector General (IG) Michael Nestor. “The Port Authority IG commenced this research based upon allegations that Metropolitan Enterprises, Inc., a scaffolding and business that is hoisting its President, Kenneth Martinez might not be a legitimate Minority Business Enterprise business performing work on the planet Trade Center web web site. Our investigation that is joint with Attorney General’s workplace, uncovered proof of unlawful task with two other individuals and businesses. 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 sort of income tax fraud, where in fact the defendants pocketed a huge selection of 1000s of dollars in product sales and employ taxes that will have already been remitted to New York State, diminishes profits into the federal government and erodes the power of federal federal government to completely provide the folks. DOI had been very happy to join using the State Attorney General’s workplace and our police force lovers with this research, which revealed and stopped these unlawful schemes. ”

Metropolitan ended up being considered one of the biggest scaffolding and hoisting contractors in brand 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 regarding the George Washington Bridge as well as on the Oculus venture during the World Trade Center Transportation Hub. During this period, the defendants utilized unpaid taxation monies additionally the profits of fraudulently paid loans to help keep the business enterprise afloat. Because of the period of the ny Attorney online payday loan General’s very first indictment in 2016, Metropolitan Enterprises, Inc. Sought out of company.

In line with the felony issue as well as other papers, the defendants perpetrated their loan fraudulence scheme by publishing fake invoices and a phantom deposit check purporting to offer scaffolding and hoisting equipment in one of Barkol’s entities to Metropolitan. The truth is, the purported gear either merely would not occur or existed but had been owned by Metropolitan or currently encumbered by another institution that is financial.

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 once again to Metropolitan within a question of times of receiving the fraudulently acquired funds, totaling nearly the total level of the amount of money gotten through the institution that is financial. Monies had been then relocated between Metropolitan’s reports and used to pay for debts owed with other finance institutions, to pay for negative balances, and also to pay present and payroll that is outstanding union dues.

In July 2019, the six defendants were arraigned in the 1st District Court of Suffolk County for a felony problem recharging cash Laundering when you look at the 2nd Degree, a course C felony; Grand Larceny into the Second Degree, a course C felony; and Scheme to Defraud in the 1st Degree, a course E felony. On August 7, 2019, the defendants entered the next pleas that are guilty Suffolk County Court:

• Kenneth Martinez pleaded responsible to cash Laundering within the Degree that is second course C felony;
• Shai Sellam pleaded bad to Money Laundering into 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 bad to Grand Larceny when you look at 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 guilty to cash Laundering within 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 August 12, 2020. Barkol is anticipated to be sentenced to a phrase of 5 years of probation for their part within the scheme when sentenced on October 17, 2019. All the entities is anticipated to be sentenced to a three-year discharge that is conditional sentenced on October 17, 2019. As an element of their sentences, the defendants need to pay restitution and perform confessions of judgments on the behalf of the banking institutions, totaling $1.5 million.

Aside from the loan fraudulence scheme, in June 2017, defendants Martinez and Metropolitan joined accountable pleas to Grand Larceny into the 2nd Degree in Albany County Court, associated with their theft of product sales and make use of fees. Yesterday, Martinez ended up being sentenced to nine years in State Prison. Also, both defendants executed confessions of judgments for the benefit of the NYS Department of Taxation and Finance, more than $455,000.

These situations 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 had been implemented by Attorney General James in an attempt to help law that is local 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 situations, with all 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 ended up being conducted 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 area.

The Attorney General’s Office thanks DTF’s Criminal Investigations Division, DOI’s workplace associated with the Inspector General for the NYC School Construction Authority, and, particularly, Investigator Charles Shevlin and Assistant Inspector General Nicholas Scicutella, plus the Port Authority of NY/NJ – Office regarding the Inspector General, and, particularly, Investigator Louis Matirko, because of their assistance that is invaluable on research.