Three Men Charged in Kickback Scheme
Over $500,000 in Illegal Payments
Three men, including two former employees of a nonprofit organization serving New York City’s homeless population, have been charged in a yearslong kickback scheme that misappropriated more than $500,000 in public funds.
Indictment Unsealed
An indictment was unsealed on November 21 in federal court in Brooklyn, naming Gary DSilva, also known as "Pankaj DSilva," Jonathan Velazquez, and Luis A. Camarena as defendants. They face charges of conspiracy to commit wire fraud, bribery, and money laundering, among others.
Defendants Arraigned
The defendants were arraigned on Thursday before U.S. Magistrate Judge Vera M. Scanlon.
U.S. Attorney’s Statement
"These defendants misappropriated public funds through a brazen kickback scheme," said Breon Peace, U.S. Attorney for the Eastern District of New York. "When corrupt employees siphon public funds to line their own pockets, the neediest New Yorkers bear the brunt. My office will relentlessly pursue those who try to compromise the integrity of our community organizations."
Nonprofit Organization and Vendor Involved
According to prosecutors, DSilva and Velazquez worked for the management information systems department of a Brooklyn-based nonprofit that operated multiple homeless shelters and other services for vulnerable New Yorkers. The nonprofit’s name was not disclosed in the indictment.
Kickback Scheme
From 2017 to 2021, the two allegedly conspired with Camarena, the principal of a vendor contracted to install security cameras at the shelters. Prosecutors allege that the vendor received $1.6 million in payments from the nonprofit for security camera projects during that time, with more than $500,000 of those funds funneled back to DSilva and Velazquez as kickbacks. Payments were reportedly made to credit cards in the names of DSilva and Velazquez and their spouses, and payments were made to shell companies registered to DSilva’s spouse.
Email Exchange
In one email obtained during the investigation, the three men allegedly discussed dividing the "profit" from the contracts awarded to Camarena’s company.
Reactions from Authorities
"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," said Jocelyn E. Strauber, commissioner of the New York City Department of Investigation.
"This alleged quid pro quo agreement only enriched the involved parties and deprived the city of vital infrastructural improvements. The FBI will never tolerate corrupt individuals who selfishly steal public funds intended to support our city’s vulnerable populations," said FBI Assistant Director in Charge James E. Dennehy.
Conclusion
The charges filed against these three men highlight the importance of holding public officials accountable for their actions. The alleged kickback scheme deprived the city of much-needed funds and resources, which could have been used to support the vulnerable populations they were intended to serve.
FAQs
Q: How much money was involved in the kickback scheme?
A: Over $500,000 in public funds was misappropriated.
Q: Who were the defendants?
A: Gary DSilva, also known as "Pankaj DSilva," Jonathan Velazquez, and Luis A. Camarena.
Q: What charges were filed against the defendants?
A: Conspiracy to commit wire fraud, bribery, and money laundering, among others.
Q: What is the alleged scheme?
A: The defendants allegedly conspired with each other and with a vendor to funnel public funds intended for security camera projects at homeless shelters back to themselves as kickbacks.
