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 jail

NEW YORK – Attorney General Letitia James today announced the felony beliefs of three people and three organizations, due to a three-year research into fraudulent methods within the scaffolding industry conducted 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), plus the new york class Construction Authority. The joint research — dubbed “Operation Skyfall” — revealed that the six co-defendants involved in a two-year scheme to defraud finance institutions away from huge amount of money, then laundered the proceeds through numerous companies.

“We are all devoted to uncovering and businesses that are prosecuting have actually defrauded their state and various banking institutions away from millions, ” said ny Attorney General Letitia James. “These fraudsters must now must spend straight right back taken funds and stop their operations that are illegal. Allow this be described as a tutorial to every specific and company that individuals shall 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 businesses, 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.

As an element of their responsible pleas, the defendants and their corporations had been bought to cover a complete 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 regarding the Albany income tax situation; he paydayloanhere for you review could be planned become sentenced up to a concurrent term of three to nine years in state jail in the Suffolk loan fraudulence situation on October 17, 2019.

“The result in this situation — in which a company and its particular owner neglected to spend $455,000 in sales taxation gathered from customers — should act as a caution to all or any people who blatantly disregard our tax laws, ” stated nyc State Commissioner of Taxation and Finance Michael Schmidt. “We works with Attorney General James and all sorts of quantities of police force to break straight straight down with this types of fraudulence, which deprives New Yorkers of income required for vital services and programs inside their communities. ”

“I wish to thank the newest 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 company 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 site. Our joint research with all the Attorney General’s workplace, uncovered proof of criminal activity with two other people and businesses. This investigation uncovered a cash laundering scheme and other associated crimes. The Port Authority IG continues to be committed in preventing similar conduct. ”

“This sentencing shows the necessity of police force partnerships in rooting out corruption by contractors in this city, ” said new york Department of research (DOI) Commissioner Margaret Garnett. “This kind of taxation fraudulence, in which the defendants pocketed a huge selection of 1000s of dollars in product sales and employ fees which should have already been remitted to New York State, diminishes profits to your federal government and erodes the capability of federal federal federal government to completely provide the individuals. DOI ended up being happy to join because of the State Attorney General’s Office and our police force lovers with this research, which exposed and stopped these criminal schemes. ”

Metropolitan ended up being considered among 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 in 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 as well as the profits of fraudulently compensated 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.

In line with the felony problem along with 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 a single of Barkol’s entities to Metropolitan. In fact, the purported gear either just 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 back again to Metropolitan within a matter of times of getting the fraudulently acquired funds, totaling very nearly the entire level of the amount of money gotten through the standard bank. 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.

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

• Kenneth Martinez pleaded accountable to cash Laundering within the 2nd Degree, a class C felony;
• Shai Sellam pleaded responsible to cash 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 responsible 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 responsible to cash Laundering within the Degree that is second 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 whenever 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. 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.

Besides the loan fraud scheme, in June 2017, defendants Martinez and Metropolitan joined responsible pleas to Grand Larceny when you look at the Second Degree in Albany County Court, associated with their theft of product product sales and make use of fees. Yesterday, Martinez ended up being sentenced to nine years in State Prison. Also, both defendants performed confessions of judgments for the advantage 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 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, using 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 area of the 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 Forensic Audit part.

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 – workplace for the Inspector General, and, particularly, Investigator Louis Matirko, due to their assistance that is invaluable on research.