The key witness in the case against Sen. Malcolm Smith and other political figures is at the heart of a massive fraud case in which he allegedly owes $126 million to Citigroup, sources tell the Daily News.
Moses "Mark" Stern was sued in 2009 by the mega-bank after his scheme to borrow millions to buy 11 shopping centers in the Georgia, Alabama and other southern states fell apart, records show.
One of Stern's associates, Ephraim Frenkel, has already been charged with lying to Citigroup about where some of the mortgage money was supposed to go, court records show.
Frenkel was indicted in December 2010 and records indicate he has been cooperating with the FBI.
Democratic state Sen. Malcolm Smith and City Councilman Dan Halloran face charges they tried to buy Smith a spot on the Republican ballot in the 2013 mayoral election.
Stern pleaded guilty on March 11 to unspecified charges that have been sealed at the request of prosecutors, according to sources familiar with the case.
Stern lives in Rockland County.
In the blockbuster corruption case surrounding Smith, City Councilman Dan Halloran and other political figures, Stern recorded months of conversations at the heart of the criminal complaint filed on Tuesday.
He claimed to have political connections that allowed him to reach out to GOP leaders on behalf of Smith, according to the complaint and sources familiar with the matter.
Moshe Mark Stern, who was the FBI informant in the cases against Smith and the other politicians, lives in this uncompleted home.
He became a confidential witness, wearing a secret device to record conversations with Smith about obtaining taxpayer money for a real estate project in the Village of Spring Valley, Rockland County.
The project was actually a fictional development dreamed up by the FBI as part of a sting into political corruption. An undercover FBI agent posed as Stern's partner, sources say.
On Wednesday Smith's attorney, Gerald Shargel, questioned the use of a witness with a history of fraud, stating, "Yesterday the U.S. Attorney made it seem the roof had been blown off the presumption of innocence. Now 24 hours later we're seeing the case is based on a shaky foundation."
Citigroup has sued Stern to recover the money from his company, First Republic Group, and a Manhattan Supreme Court justice has entered to judgments against him for $111 million and $15 million. Stern has since appealed and the case is unresolved.
The case against Frenkel is also unresolved, with the courts adjourning the case on March 11 - the same day Stern pleaded guilty in White Plains Federal Court, sources say.
By Greg B.smith / NEW YORK DAILY NEWS
Moses "Mark" Stern was sued in 2009 by the mega-bank after his scheme to borrow millions to buy 11 shopping centers in the Georgia, Alabama and other southern states fell apart, records show.
One of Stern's associates, Ephraim Frenkel, has already been charged with lying to Citigroup about where some of the mortgage money was supposed to go, court records show.
Frenkel was indicted in December 2010 and records indicate he has been cooperating with the FBI.
Democratic state Sen. Malcolm Smith and City Councilman Dan Halloran face charges they tried to buy Smith a spot on the Republican ballot in the 2013 mayoral election.
Stern pleaded guilty on March 11 to unspecified charges that have been sealed at the request of prosecutors, according to sources familiar with the case.
Stern lives in Rockland County.
In the blockbuster corruption case surrounding Smith, City Councilman Dan Halloran and other political figures, Stern recorded months of conversations at the heart of the criminal complaint filed on Tuesday.
He claimed to have political connections that allowed him to reach out to GOP leaders on behalf of Smith, according to the complaint and sources familiar with the matter.
Moshe Mark Stern, who was the FBI informant in the cases against Smith and the other politicians, lives in this uncompleted home.
He became a confidential witness, wearing a secret device to record conversations with Smith about obtaining taxpayer money for a real estate project in the Village of Spring Valley, Rockland County.
The project was actually a fictional development dreamed up by the FBI as part of a sting into political corruption. An undercover FBI agent posed as Stern's partner, sources say.
On Wednesday Smith's attorney, Gerald Shargel, questioned the use of a witness with a history of fraud, stating, "Yesterday the U.S. Attorney made it seem the roof had been blown off the presumption of innocence. Now 24 hours later we're seeing the case is based on a shaky foundation."
Citigroup has sued Stern to recover the money from his company, First Republic Group, and a Manhattan Supreme Court justice has entered to judgments against him for $111 million and $15 million. Stern has since appealed and the case is unresolved.
The case against Frenkel is also unresolved, with the courts adjourning the case on March 11 - the same day Stern pleaded guilty in White Plains Federal Court, sources say.
By Greg B.smith / NEW YORK DAILY NEWS
No comments:
Post a Comment