| In SDNY Kabbaj Gets 51 Month
Deal For $6M Fraud Compared to 262 Months for
Heroin Conspiracy
By Matthew
Russell Lee, Patreon
BBC
- Decrypt
- LightRead - Honduras
-
Source
SDNY COURTHOUSE,
Jan 3 – Among
arraignments and guilty pleas
for heroin conspiracy, on
January 3 in Magistrates Court
of the U.S. District Court for
the Southern District of New
York there was a higher
profile, or at least higher
dollar value, guilty
plea.
After the plea,
which Inner City Press
witness, the US Attorney's
Office announced that "Hicham
Kabbaj, a former senior
manager in Manhattan for a
global internet company
(“Company-1”), pled guilty
before United States
Magistrate Judge Stewart D.
Aaron to one count of wire
fraud."
IRS-CI Special
Agent in Charge Jonathan D.
Larsen said: “Today, Mr.
Kabbaj pled guilty to a
serious felony because he
chose to misuse his position
of trust as a corporate
executive to steal company
funds for his own personal
gain. As a result of the
dedicated work of IRS-CI
special agents, along with our
partners at the U.S.
Attorney’s Office, Mr. Kabbaj
will face the consequences of
his crime when he is sentenced
by a federal
judge.”
There was a plea
agreement, putting the
sentencing guideline at 51 to
63 months. For a $6 million
fraud, 51 months. For a heroin
conspiracy, with a plea
agreement the same morning,
262
months.
According to
allegations in the Information
and other documents filed in
federal court, as well as
statements made in public
court
proceedings:
From at least August 2015
until at least May 2019,
KABBAJ engaged in a scheme to
defraud his employer into
paying a vendor named
Interactive Systems, a
KABBAJ-controlled shell
company, for various
information technology (“IT”)
products and services.
As part of the scheme, KABBAJ
caused Interactive Systems to
send invoices to Company-1
claiming that Interactive
Systems performed services and
purchased firewalls and
servers for Company-1.
In reality, Interactive
Systems did none of that work,
and KABBAJ quickly transferred
the money that Company-1 paid
to Interactive Systems to his
own personal bank
accounts. In total,
KABBAJ defrauded Company-1 of
more than $6 million as a
result of the
scheme.
The case is US v.
Kabbaj, 19-mj-8116
(Aaron).
***
Your
support means a lot. As little as $5 a month
helps keep us going and grants you access to
exclusive bonus material on our Patreon
page. Click
here to become a patron.
Feedback:
Editorial [at] innercitypress.com
SDNY Press Room 480, front cubicle
500 Pearl Street, NY NY 10007 USA
Mail: Box 20047, Dag
Hammarskjold Station NY NY 10017
Reporter's mobile (and weekends):
718-716-3540
Other, earlier Inner City Press are
listed here,
and some are available in the ProQuest
service, and now on Lexis-Nexis.
Copyright 2006-2020 Inner City
Press, Inc. To request reprint or other
permission, e-contact Editorial [at]
innercitypress.com for
|
,
