PREET BHARARA, the United States Attorney for the
Southern District of New York, JANICE K. FEDARCYK, the Assistant
Director-in-Charge of the New York Field Division of the Federal
Bureau of Investigation ("FBI"), and CHARLES R. PINE, the Special
Agent-in-Charge of the New York Field Office of the Internal
Revenue Service ("IRS"), Criminal Investigation Division,
announced that VINCENT L. LEIBELL, III, pled guilty today in
White Plains federal court to obstructing a federal grand jury
that was investigating whether he had extorted cash payments from
lawyers working in Putnam County and to failing to report on his
income tax returns tens of thousands of dollars in cash payments
he had received from those lawyers.
Manhattan U.S. Attorney PREET BHARARA said: "This is a
sad day for the citizens of Putnam County and a scene that has
become all too familiar in New York state. Vincent Leibell
betrayed the trust of his constituents and now stands convicted
of two federal felonies. Leibell has only himself to blame for
the fact that, after 28 years in public office, this conviction
will be the capstone to that career. He is the latest in a long
line of public officials who have placed themselves above the law
and have been brought before the bar of justice in the Southern
District of New York. Along with our law enforcement partners,
we will fight corruption wherever we find it and prosecute those
who abuse the public trust wherever we find them."
FBI Assistant Director-in-Charge JANICE K. FEDARCYK
said: "It is inexcusable when public officials abuse the trust
that the public has placed in them to make our communities
better. Mr. Leibell made it very clear that he did not have the
public’s best interest in mind when he repeatedly took part in
the activities that led to today’s charges. The FBI remains
committed to investigating and bringing to justice all corrupt
public officials, whose actions tarnish their offices and
undermine public confidence."
IRS Special Agent-in-Charge CHARLES R. PINE stated:
"Receiving corrupt payments in the form of cash and then getting
others to lie about and cover up the true reasons they were
obtaining large sums of cash is a classic technique that tax
evaders use to cover up criminal activity. What is truly
astonishing is that an elected official who has been in politics
for many years, and has known about other elected officials
arrested and convicted for financial related crimes, has not
learned the lesson that crime does not pay."
According the Information filed in White Plains federal
court and statements made during the plea proceeding:
Since April 2010, a federal grand jury sitting in the
Southern District of New York, the FBI, and the IRS had been
investigating allegations that, as a New York state senator,
LEIBELL had unlawfully extorted cash payments from attorneys
doing business in Putnam County under color of official right.
The investigation focused on whether LEIBELL had demanded and
received cash payments from an attorney, described in the
Information as Attorney #1, who provided legal services to a
Putnam County based not-for-profit organization (the "NFP") that
received millions of dollars in New York state senate member item
grants that LEIBELL sponsored as a state senator. According to
the Information, the investigation focused on whether LEIBELL had
threatened to cause the NFP to refuse to pay the invoices
ATTORNEY #1 submitted to the NFP for legal services that ATTORNEY
#1 had rendered to the NFP unless ATTORNEY #1 agreed to give half
of the invoiced amount of money to LEIBELL in cash.
LEIBELL became aware of the investigation in late April
2010 when FBI and IRS agents began approaching, subpoenaing, and
interviewing witnesses about the allegations. After LEIBELL
learned about the investigation, he began meeting with ATTORNEY
#1 to discuss what ATTORNEY #1 should say when approached by
federal agents.
On June 6, 2010, at LEIBELL’s request, ATTORNEY #1 met
with LEIBELL on a street in Carmel, New York, to discuss the
pending federal investigation. During the June 6, 2010 meeting,
LEIBELL repeatedly directed ATTORNEY #1 to lie to federal
investigators about the cash payments ATTORNEY #1 had previously
made to LEIBELL. LEIBELL instructed ATTORNEY #1 to falsely say:
(1) that he had never made cash payments to LEIBELL; (2) that
when investigators question him about cash withdrawals ATTORNEY
#1 made from his bank account to pay LEIBELL, ATTORNEY #1 should
falsely say that he withdrew the money to have around in case of
a national or family emergency and that he used the money for
living expenses, including caring for his elderly mother.
During the meeting, LEIBELL repeatedly urged ATTORNEY
#1 to maintain their false denials: "You and I say there was
never any cash relationship. Period... Since you and I are in
agreement, it didn’t happen... All I know is, as long as you and
I are consistent, I’m fine, you’re fine. There was never any
cash between you and I, Okay?"
During the plea allocution, LEIBELL also admitted to
filing false federal income tax returns with the IRS for the tax
years 2003 through 2006. LEIBELL acknowledged that he failed to
report at least $43,000 in cash he received during these years
from ATTORNEY #1 and ATTORNEY #2, also mentioned in the
Information, both of whom did business in or for Putnam County.
LEIBELL also acknowledged that he failed to advise the accountant
preparing his income tax returns that he had received the cash
payments.
LEIBELL, who resigned his New York state senate seat
effective on December 3, 2010, is scheduled to be sworn in as
Putnam County Executive on January 1, 2011.
LEIBELL pled guilty today before Chief U.S. Magistrate
Judge GEORGE A. YANTHIS to a two-count Information charging him
with actively obstructing a pending Southern District of New York
grand jury investigation involving special agents of the FBI and
the IRS. The grand jury was investigating allegations of
extortion by public officials in Putnam County and LEIBELL’s
failure to report all his income. The case was assigned to U.S.
District Judge WARREN W. EGINTON and sentencing has been set for
March 7, 2011. The maximum sentence of imprisonment for the
crimes to which LEIBELL pled guilty today is 13 years.
Mr. BHARARA praised the work of the FBI and the IRS
Criminal Investigation Division. He added that the investigation
is ongoing.
This case is being handled by the Office’s White Plains
Division. Assistant U.S. Attorneys PERRY A. CARBONE and JASON
P.W. HALPERIN are in charge of the prosecution.
FBI New York Special Agent in Charge (SAC) for the Criminal Division Diego Rodriguez addresses attendees of this afternoon's press conference. To the immediate right of SAC Rodriguez are U.S. Attorney Preet Bharara and FBI Assistant Special Agent in Charge Peter Grupe.
Photo Credit: FBI New York
Former New York State Senator and Putnam County Executive-Elect Pleads Guilty in White Plains Federal Court
Amplify’d from newyork.fbi.gov
See this Amp at http://amplify.com/u/hu8e
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment