SDNY COURTHOUSE, July 29 – Near the end of the now-concluded criminal ERISA trial that began with jury selection and an argument to quash subpoenas, on July 25 the government in its summation acknowledged that its witness Zeynep Ekemen not only was arrested for shoplifting and lied to them about being a US citizen but also was unfaithful to her husband with the defendant. But Ekemen, who participated in the scheme but got a non prosecution agreement, is not mentioned in the U.S. Attorney Press release celebrating a victory that was only announced this way, with no exhibits uploaded: "Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that a federal jury found SHIVANAND MAHARAJ guilty of honest services wire fraud, paying kickbacks in connection with an employee benefit plan, and conspiracy, following a two-week trial before U.S. District Judge John G. Koeltl. MAHARAJ’s co-conspirator, ENRICO RUBANO, a/k/a “Rick Rubano,” who was a director of information technology at a large union pension and health benefit fund (the “Funds”), pled guilty in connection with the same crimes shortly before trial. Manhattan U.S. Attorney Geoffrey S. Berman said: “For years, Shivanand Maharaj bribed an insider at a pension and health fund to approve hundreds of invoices for information technology work that was never done at all. He now stands rightly convicted for depriving hardworking individuals out of millions of dollars of health and retirement benefits.” According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court: From 2009 through 2015, RUBANO was the co-head of information technology for the Funds and had the authority to approve the payment of invoices from third-party vendors. Beginning in at least 2009, and continuing through 2015, MAHARAJ and RUBANO devised a scheme in which three different companies MAHARAJ owned or controlled submitted to the Funds invoices for millions of dollars in information technology services that were never performed or that had, in fact, been performed by employees of the Funds or other vendors. RUBANO, in his position as co-head of information technology, approved these fraudulent invoices and received kickbacks from MAHARAJ. MAHARAJ, by submitting hundreds of invoices and recruiting another co-conspirator to receive additional criminal proceeds, fraudulently received in excess of $2 million through this scheme.
MAHARAJ, 39, of Cresskill, New Jersey, was convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years; one count of giving kickbacks to influence the operation of an employee benefit plan, which carries a maximum sentence of three years; and conspiracy to give kickbacks to influence the operation of an employee benefit plan, which carries a maximum sentence of five years. MAHARAJ will be sentenced by Judge Koeltl on December 6, 2019. RUBANO, 50, of Tappan, New York, who engaged in additional kickback and fraud schemes with other co-conspirators, pled guilty to three counts of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison." So what about Ekeman? Why no exhibits uploaded? Why no notice when the jury came back with the verdict? We'll have more on this.
The defense in closing called Ekemen a "cold hearted... shoplifter" whose testimony should be thrown in the garbage. The moment when Ekemen cried and said she had not gone to her father's testimony in Turkey not because she could not get back into the US but because she was sick in bed. How will the jury take it? Why did Ekemen get a non prosecution agreement? Where does it stand now? Watch this site.
On July 23 the defense put into evidence a document showing what appeared to be legitimate, non fraudulent information technology contracts. On July 24 the government responded by showing account statements of identical payments then transfers between defendant Maharaj, non-prosecution agreement Ms. Ekeman and Rick Rubano whose name remains on the case. $3085 dollars in, $3085 dollars out, referring to Government Exhibit 2024 which has still not been provided despite requests.
Meanwhile the defense it trying to get introduced the independent contract agreement between Maharaj Holdings and Raval Snehal, saying it is non-hearsay.
But again the real action was behind the scene: the defense has proposed giving the jury in redacted for a New Jersey court document about the credibility of the government's witness Ms. Ekemen.
On page 9 of the document, surrounded by redactions, the judge wrote that "The court disbelieves that Ms. Ekemen ever expressed to Salameno or his counsel his purported claim that Duffy deserved to receive his compensation, of that if only she knew where Duffy had 'hung his shingle' he might have actually been paid the commission he was due. Rather, I find, she initiated the contact with the seller, as testified to by Salameno, in order to thwart Duff's commission. There are several areas of testimony that impacted negatively on Ms. Ekemen's credibility." And here?
The government, AUSA Matthew Podolsky who is also on the Avenatti case, wrote that while it still objects to the introduction of DX 4009, it wants the jury to be told it is only admitted "for any relevance it may have in assessing Ms. Ekeman's credibility." The trial is wrapping up. Watch this site.
on July 22 a number of invoices to AFTRA Health and Retirement Fund were entered as government exhibits. A typical one was for $4000 from a company called Z Tech for work on two HP hard drives. Except that AFTRA has a service contract with HP, requiring replacement of these hard drives described as "hot swappable" in four hours or less, so why the outside contract? Still, were irregularities in these amounts, about computer invoices and not investments, what ERISA prosecutions were meant to be? Inner City Press has requested the exhibits and is still waiting, notice of eventual jury verdict too.
