Results tagged “embezzlement”

Two former aides of City Councilman Kendall Stewart will plead guilty to fraud charges related to embezzling nearly $200,000 of Council funds. Asquith Reid, Stewart's former chief of staff, and Joycinth Anderson, a former staffer, were indicted after an investigation revealed that money, which Stewart directed to three community groups (controlled by Reid and Anderson), was being used for cash or wired to relatives; the scheme was discovered during a probe of the Council's slush fund practices. Councilman Stewart (pictured) told the Times, "I hope they will not be serving any time. With all honesty, I don’t think they have done anything wrong. I think they are being punished for not keeping correct paperwork." But Jumaane Williams, who is challenging Stewart for his Council seat, said Stewart should resign, "At the worst, Mr. Stewart had to have been complicit and known what was going on. At the minimum, he signed off on things without reading it and wasn’t paying attention to what was going on in his office. Either one is very bad."

According to the U.S. Attorney's Office, the president and director of SBCC Management Corporation, which manages HUD-subsidized properties in the Bronx, stole $200,000 from the non-profit—and SBCC's president is Richard Izquierdo Arroyo, grandson of State Assemblywoman Carmen E. Arroyo and nephew of City Councilwoman Maria del Carmen Arroyo (SBCC director is Margarita Villegas). Almost $15,000 from the non-profit were given to campaigns for someone believed to be Carmen Arroyo and Running Scared details some of the other spending: "The pair, along with an unnamed relative, ran up tabs worth $15,000 at clothing stores including Ralph Lauren, Tommy Hilfiger, and --our favorite-- Promgirl. They also ran up bills of $66,000 with fine dining at the likes of Portofino, A Venice Restaurant, Tavern on the Green, and -- go figure -- IHOP. Another $48,000 went for airfares and hotels in San Juan, and Brooklyn (!). Another $34,000 was plunked down for car rentals, garages, and parking tickets in Puerto Rico, the Dominican Republic and around the Empire State." Richard Arroyo and Villegas were indicted; City Councilwoman Arroyo, who apparently directed at least $50,000 in funds to SBCC, said, "I am confident that in the end, they will be able to clear their names."

In Manhattan federal court yesterday, a judge sentenced former Queens Assemblyman Brian McLaughlin to ten years in prison for taking in over $3 million in embezzlement, bribes from taxpayers and other illegal means. McLaughlin even stole $95,000 from a Queens Little League, promising voters that their donations meant that "A Child in Sports Stays Out of the Courts." Judge Richard Sullivan said that McLaughlin harkened back to the era of Boss Tweed and accused the former president of the nation’s largest municipal labor council of validating “the harshest critics of organized labor who accuse the leadership of corruption, and point to you as an example of that corruption.” Prosecutors had asked the judge for leniency, in part because of McLaughlin's cooperation in the recent indictment of another pol, Queens Assemblyman Anthony Seminerio. At the sentencing, McLaughlin, who has entered into Alcoholics Anonymous in recent years, said, "I'd like to say I make no excuses for it. But over the past three, 3-1/2 years I've had the opportunity to live the way I'd like to live my life."

Last year, we mentioned that a financial firm secretary was suing her boss for sexual harassment, claiming he suggested she have an affair with his ex-wife, bring him his erectile dysfunction medicine, and add "F--- Services" to her business card. But now Fatima Monahan is dropping the charges, admitting she made those stories up to "deflect attention" from former boss Frederick Iseman's claims that she charged various items to his credit card (last year, Iseman's lawyer called her a "total liar and a thief"). Monahan, who the Sun says made $125,000 as Iseman's assistant, admitted her allegations "were and are entirely untrue." She pleaded guilty to stealing $45,000 from Iseman (to buy luxury clothing, etc.), must pay restitution and is serving 5 years probation. Iseman said, "She's extremely devious and extremely dangerous."

Two former staffers under City Council member Kendall Stewart were "arrested and charged on mail fraud and money laundering charges" from the U.S. Attorney's office, according to WNBC.