WHITE PLAINS — Federal prosecutors are recommending that former Monsey Fire Commission President Nathan Rothschild get 27 to 33 months in prison at sentencing Tuesday for trying to orchestrate a real estate fraud to help pay off a $125,000 debt to two former business partners.
Rothschild, 54, the ex-fire district chairman and former president of the East Ramapo Board of Education, admitted in federal court that he suggested the partners buy some property for $700,000 and he’d make sure the fire district bought the land from them for $1.2 to $1.3 million.
The fire district eyed the property for a new fire station and housing for volunteers.
Rothschild pleaded guilty in July to engaging in a mail fraud scheme against the fire district in U.S. District Court in White Plains.
He is seeking probation from the judge. He is arguing in legal papers for leniency because he claims he acted under duress and mental illness; he felt guilty and tried to stop the sale; his creditors came up with the idea; and his family would suffer with him in prison.
Prosecutors responded by accusing Rothschild of trying to con U.S, District Court Judge Kenneth Karas and called his acceptance of responsibility “laughable.”
In a 13-page sentencing memorandum filed Thursday, Assistant U.S. Prosecutor Douglas B. Bloom cited tape-recorded conversations Rothschild had with his creditors and documents outlining his attempt to use his position to defraud taxpayers.
“He was a long-serving elected official who attempted to defraud the very people who elected him,” Bloom wrote. “This is not an isolated incident of fraud and his new-found expressions of remorse ring hollow in light of his continued effort to deny facts that are inscribed on tape and paper and are simply incontrovertible.”
Rothschild was caught offering the scenario on audio tape. The potential purchasers were working with federal investigators.
The court papers cite Rothschild saying: “If you can get the other houses you can make a profit on that. Just so we understand this, so at the end of the day, if a transaction like that would happen, my debt to you is reduced by $600,000.”
Rothschild knew such a deal amounted to a felony crime, as he was recorded telling his creditor during a telephone call in April 2010, according to the sentencing memorandum
“I can’t write a plan and I don’t know if you should because we can offer it and you can make any notes you want. It’s a felon,” Rothschild said. “What we’re discussing here is a felony. But, I’m, it’s the only way to get your money back. You have to be creative.
“The simplest one is the fire department is prepared to buy right now,” Rothschild said.
On July 15, 2010, the fire commission approved the purchase at $125,000 above what his creditor paid for it. Rothschild abstained on the vote and told his fellow commissioners about his financial benefit from the sale.
Standing before the judge in April, Rothschild admitted his crime.
"You knew what you were doing was illegal?" Karas asked.
"Yes," Rothschild responded.
Rothschild has been free on $100,000 personal bond.
Just before the federal charges in April 2011, Rothschild resigned from the East Ramapo Board of Education. He had been voted off the Monsey Fire Commission in December 2010 after 15 years on the board.
In a pending civil action, Rothschild also was sued by his two former partners for potentially millions of dollars involving a marketing firm that provided promotional items, such as mugs or T-shirts with a client’s name and logo. He has denied accusations he committed fraud, broke contracts and used other means to cheat his partner out of money and not repay loans.
The lawsuit — filed in July 2009 by Elliot Kahan and Daryl Halger of Ramapo — seeks a minimum $34.7 million judgment against Rothschild, his wife, Toba, and company employee Kathryn Mazzella
No comments:
Post a Comment