Contact: Colleen Roche (212) 788-2958 or Dwight Williams (212) 788-2972
According to the Mayor, in April 1995 the Internal Affairs Division of the Housing Police uncovered evidence that a number of police officers were involved in fraudulent tax practices and, in fact, had not paid taxes for some years. After the merger of the Housing and New York City Police Departments, NYPD's Internal Affairs Bureau continued and expanded the investigation. Evidence of the tax scam was reported to the City's Department of Investigation and the Manhattan D.A.'s Office, which began an investigation, and to the United States Attorney's Office, which today announced charges of tax fraud against 15 current or former police officers.
An on-going criminal investigation by the New York City Department of Investigation and the New York County District Attorney's Office has shown the problem to exist in agencies other than the Police Department.
The Mayor said, "I would like to thank the Internal Affairs Bureau for its diligence and professionalism which led not only to today's arrests and indictments, but which shed light on the existence of other serious fraud. Their outstanding work helped uncover a scam which has cost the City, State and Federal governments hundreds of thousands of dollars. And this practice will now be stopped."
Because DOI's investigation is active, the Mayor would not discuss specific details. He assured New Yorkers that tax evasion would not be tolerated. "Every citizen has an obligation to pay taxes. We will seek to fire any City employee found to be participating in this scheme -- or in similar scams."
"I have also asked DOI Commissioner Howard Wilson to conduct a management review to ensure that, as I requested, the proper safeguards are in place in every City agency to prevent this fraud from happening again."