The Brooklyn DA Inflates Recovered Costs of Prosecution in Exchange for Not Reporting Tax Violations

Cash Register 1The Office of the Kings County District Attorney (KCDA) is aflood with rumors about an imminent financial scandal involving Ken Thompson. Naturally, the rumors are originating on the 19th and 17th floors of the executive suite and the rackets division, and like all effluent, leaking down. Nice try Hynes loyalists but let’s get real. We all know that if you had good stuff you would have used it before the all-important September Democratic primary.  By now, as all realists know, it is over. The only question for bookies is whether Hynes will lose by more or less than Joe Lhota. The campaign is further under-water than beachfront property in the Rockaways or Breezy Point during Sandy or McMansions in Las Vegas.

Nevertheless, these rumors about Thompson’s criminality serve a few purposes. They feed the delusions of the remaining Hynes loyalists who have turned the campaign into a racist drumbeat of allegations that excuse Hynes for breaking his election night promise of a “smooth transition” to Thompson.  They also go together nicely with the new, white-ethnic, southern-Brooklyn-strategy of appealing to racists with the idea that the Thompson campaign is all-black, all-corrupt, all-Clarence Norman, all-thug, all-gun runner. It is pathetic how the Schmetterer operation ignores Thompson’s white supporters and cannot criticize a single white associated with Thompson. After I spend too much time reading the stuff that Brad Gerstman and David Schwartz Tweet about me, I need to check myself out in the mirror to be sure I am Caucasian. Brad and David also made like they were the Anti Defamation League and accused Mr. Frum of being insensitive to the holocaust and vile in my anti-Semitic handling of Joe in my Downfall parody. I will not tell you what I checked to be sure I was still Jewish.

The campaign strategy is doomed to fail because people of color outnumber whites in Brooklyn. Every time he wins another vote with his racist innuendos he loses two black votes. Many of his true friends have begged him not to squander his legacy as the man who prosecuted the race-motivated Howard Beach murder. But there are those in his office who pushed him to run on the Republican ticket, including Mary Hughes, Henna White, Michael Vecchione, and Dino Amoroso. Some have speculated that they wanted another two months free of snoopy Thompson transition personnel in which to try and efface some of the traces of their prosecutable misconduct.

Deputy District Attorney Dino Amoroso is probably concerned about prosecutable conduct in the money laundering division. The scam is simple. When doing a plea bargain, exaggerate the “Costs of Prosecution (COP)” which are kept by the Office of the DA in exchange for lesser sentences and fines. The kicker on the deal is violating the law requiring KCDA to report relevant information to the Tax Commission. Tax fraud virtually goes hand-in-hand with money laundering and exposes the defendants to serious financial and criminal liabilities. Naturally, this makes defendants especially amenable to gross overestimates of costs of prosecution. According to a source, John Steffy handled the tax cases along with financial investigator Robert Stahl and ADA Steve Kramer. (Kramer is also alleged to have had a role in seizing the assets of Judge John L. Phillips). They regularly threatened alleged defendants by telling them they would report them to the Tax Commission. The defendants would respond immediately by asking what the office wanted. That is how the DA got the money. There is no record of anything and everyone leaves happy. Not surprisingly, many of the deals filed with the courts conveniently left out the amount charged for costs of prosecution

I am told that according to Dino Amoroso, this last year was ‘a good year’ with profits of four million, ‘but Vecchione and McCarthy could have done better.’ I imagine some ADAs may have gone a step further and pocketed some money for themselves in exchange for “adjusting” the costs of prosecution. I can understand Dino’s distress. That would be wrong. It would be plundering his public treasury.

Folks in money laundering are scared and distancing themselves. ADA Casey Taylor who worked on the financial cases in rackets recently left. Deputy ADA Mike Morelli, Jr. (son of Angelo Morelli in Investigations) formally requested a transfer out of money laundering. He was placed in the Labor Law Bureau. The Bureau’s Chief, Joe McCarthy, was just given an office on the 20th floor and will be in the Health Care Fraud Unit. Going from Chief of Money Laundering to an ADA in Health Care Fraud is not a step up in one’s career. It is probably not due to his afternoon imbibing, since even with time off for health reasons, his career has progressed till now. Toni Lichstein – Deputy Bureau Chief of Money Laundering – has also moved out of the 17th floor.

I think the folks who are scattering are wise. The alternative might be staying around and being maneuvered into covering things up. That can only mean destroying evidence, a crime that would compound their problems. I would hope everyone is smart enough to stay calm. If they are really astute they will start talking to feds, so they can be at the front of the line for the leniencies afforded to cooperating witnesses.

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23 thoughts on “The Brooklyn DA Inflates Recovered Costs of Prosecution in Exchange for Not Reporting Tax Violations

  1. This one is so wildly fantastical that it doesn’t even merit serious commentary. You were on a roll for a while, with some good inside sources and decent analyses of that semi-secret information, but this is really out there, even for you.

  2. I daresay come November 6th along the certainty of the Boss and his Goon Squad’s employment status, and with the DA Elect waiting in the wings, the Feds will have little reason to hold back. They know enough to make a move so don’t be shocked if Boss Hynes and his Goon Squad are soon treated to a perp walk of their own. It’s been a long time coming.

    Maybe the Boss can prepare some poster sized photos of himself and each of the Goons. It’ll help with the media.

  3. As we’ve said before, we shall see. The kind of wild allegations being printed by Lopin, if true, couldn’t lead to any other outcome.

  4. Congratulations, you are now finally getting me to respond to your Gene Gold “point”. There really is no way to “spin” this here, since in the current climate, it is easily made to look (by people like you) like Hynes is “pro-molester” because he honored former DA Gene Gold. There’s no argument that you’ll accept, but perhaps the few sensible people reading this may understand that someone who did so much for a community might be worthy of some forgiveness decades later. Gene Gold was a legendary prosecutor in his day. His accomplishments were many. He committed a horrible crime and he lost everything as a result. DA Hynes has always believed in rehabilitation and the value of paying a debt to society. This partially explains his many programs geared toward helping people reintegrate after aberrant behavior. If there is no room in this world for allowing someone to pay their debt, serve their sentence, and live a life, then all crimes should be punishable by death. Hynes’ honoring of Gold had nothing to do with endorsing his criminal behavior. But that doesn’t play well now, under the Frum Follies microscope. You see, since he has never helped or fixed or sold a sex case, nor would he ever, he didn’t think back then in 2002 that he’d have to defend how honoring Gold would “look” later on to people like you.

    • By 2002 he had already fixed the case of Rabbi Lipa Brenner with the usual sweetheart deal of no time in jail. Of course there are others we do not know about because dismissed cases do not show up on the record.

      • YL, why do you bother answering Hynes’ sock puppet? Hynes spits in us and his alter-ego ‘Truther’ would like us to thank Hynes for making it rain.

        Guve it up. ‘Truther’ is as interested in the truth as Hynes is interested in ethical standards and sending (only) guilty people to prison.

        I say ignore the little creep and start prepRing for an election night bash.

        And Truther, don’t forget the Kleenex. The Boss is going to need boxes of it.

    • Truther. That was nothing but spin. Poorly spun at that. There is no way to spin the DA honoring a child molestor no matter how great said molestor’s prior deeds. If the DA thinks that honoring such a man is acceptable, then he speaks with a forked tounge. The irony of it all is that if we are to accept the DA’s rationale for going back on his word and actively campaigning as a Republican, a sex predator of children can find redemption and be honored by the highest ranking law enforcement official in this county, yet a man convicted for what amounted to a campaign finance violation is unworthy of such redemption. You were better off remaining silent on this matter.

      • Truther would be better off remaining silent in general.

        Come election day, we the voters will have the final say and the last laugh.

  5. In order to have “the last laugh,” you will need to be proven right about Hynes selling out Hasidic sex cases for votes or other political favors or whatever. When it becomes apparent that no such thing occurred (by virtue of how the same old problems will recur under a new administration), the laugh will be on you, for distracting yourselves and your feeble following from the real problem: your own community.

  6. Not the victim. Not at all. The community. The “leaders,” the “rabbis,” the family members who don’t want to be “shamed” by their own relative who is a victim in need of support. Sick.

    • Victims and their families are afraid to go through with prosecution because your spineless, ethically-challanged, morally-bankrupt Boss has failed to protect them and the rule of law by prosecuting even the most egregious instances of obstruction of justice.

      On the other hand, I am glad you’ve decided to compensate for your cruel joke of an online identity by signing your most recent digital dump of factual distortion with an accurately descriptive disclosure of your mental, intellectual, spiritual, moral and ethical state.

      YL, can we get an official Frum Follies countdown to Election (a.k.a. Bye Bye Charlie) Day started?

      • There is no point in counting down to November. The race was over when Hynes lost the Democratic primary in September by 11%. It is about a half a century since a Democrat lost a county-wide race in Brooklyn. It is especially unlikely this year. The Republican ticket is headed by Mayoral candidate Joe Lhota who is down 50% in the polls.

        The Hynes campaign is the dying gaseous gasp of a demented has-been who can’t admit that voters own the office of the District Attorney.

        To dignify it with a count down is giving this farce of a campaign more credit than it deserves.

        Charles Joe Hynes is already politically dead. Suit yourself if you choose to dance on his political grave on in November when his political death certificate is signed by the election officials.

        I favor the Jewish approach to the dead: no embalming and rapid burial. But if Joe’s declining clique of cloying sycophants insists on an extended wake, so be it.

  7. Sad to see a once useful site turned into a propaganda machine withe ZERO credibility in the survivor community anymore

  8. Lopin can verify that I’m not juhj. Sorry, not everyone who reads this is brainwashed and/or brain dead.

    • Alas, the inaptly named Truther is right this time about not being juhj but wrong in thinking most of the readers are brainwashed or brain dead. They are just tired of being taken to the laundry by Hynes.

  9. “I imagine some ADAs may have gone a step further and pocketed some money for themselves in exchange for “adjusting” the costs of prosecution.” Did you literally just make this up? i guarantee you have no proof of this wild allegation. Individual ADAs aren’t pocketing money…and you are foolish for insinuating it without a shred of support. I read this blog on occasion.Sometimes, it seems that you have some inside information (Never any top-level stuff, but probably lower level disgruntled staff who take guesses, some of which may end up being correct) and other times it seems like you are stretching because your “sources” have failed to bring you anything to play with. But this story is weak. and the allegation that line assistants are taking cash is absurd. YOu will lose all credibility if you continue down this path.

    • Top count. There is no way of your knowing that there is no proof of the allegation unless you have NSA quality data on everyone in the office. If so, you must be inside the office or working for the Feds. Are you?

  10. Trust me, i have far better information and basis for my opinion then you do. I say that because it is an easier and more fair position to take that ADAs are not literally stealing funds..Rather than accusing hard working individuals of a crime that have u have virtually no evidence of. What allows you to say that line assistants are pocketing cash? I wager you have no legit information other than speculation. and for the record, i was inside the office, for a very long time, and in a fairly high ranking position.

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