Employees Of Brooklyn Nonprofit Indicted In Alleged $500K Kickback Scheme

This should never happen....

Three men, including two ex-employees of an unidentified nonprofit organization serving New York City’s homeless population, have been indicted in a scheme that allegedly misappropriated over $500,000 in public funds, Brooklyn Paper reports.

Jonathan Velazquez, Luis A. Camarena, and Gary DSilva, also known as “Pankaj DSilva,” were listed as defendants in an unsealed indictment on Nov. 21. U.S. Magistrate Judge Vera M. Scanlon arraigned all three men on conspiracy to commit wire fraud, bribery, and money laundering charges. Prosecutor Breon Peace says money schemes only hurt the people of New York. “These defendants misappropriated public funds through a brazen kickback scheme. When corrupt employees siphon public funds to line their own pockets, the neediest New Yorkers bear the brunt,” the U.S. Attorney for the Eastern District of New York said.

“My office will relentlessly pursue those who try to compromise the integrity of our community organizations.”

Prosecutors allege the scheme started when DSilva and Velazquez started working for the management information systems department of a nonprofit based in Brooklyn that operated several homeless shelters. Between 2017 and 2021, both men allegedly conspired with Camarena, who held the title of principal of a vendor contracted to install security cameras at the shelters. The vendor allegedly received $1.6 million in payments from the nonprofit for the installation projects, totaling more than $500,000 of those funds being sent back to DSilva and Velazquez.

The payments were reportedly made to credit cards in the names of both men and their spouses and to shell companies registered with DSilva’s spouse.

According to the Brooklyn Eagle, an investigation revealed hidden emails between defendants scheming on how to allegedly divide the profits. Prosecutors highlighted the emails as “clear evidence” of DSilva, Velazquez, and Camarena’s intentions to use their positions within the nonprofit to benefit themselves at the expense of public funds. “These employees of a City-funded nonprofit participated in an illegal kickback scheme, enriching themselves by stealing from their employer, an entity providing critical services to New Yorkers in need, as alleged in the indictment,” Commissioner of the New York City Department of Investigation, Jocelyn E. Strauber said.

FBI Assistant Director in Charge James E. Dennehy shared similar thoughts: “The FBI will never tolerate corrupt individuals who selfishly steal public funds intended to support our city’s vulnerable populations.” “This alleged quid pro quo agreement only enriched the involved parties and deprived the city of vital infrastructural improvements,” Dennehy said.

All three defendants entered not-guilty pleas.