May K. Toney
07-15-2003, 04:17 AM
Bizman's Dreams Flushed Away
By Patricia Hurtado
Staff Writer
July 14, 2003, 6:50 PM EDT
A businessman convicted of being part of a scheme that defrauded the city out of $1.3 million in a toilet-rebate program, saw his dreams of a reduced prison term flushed away Monday.
U.S. District Judge Richard Casey sentenced Avi Markowitz, 46, to serve a 33-month prison term and pay nearly $1 million in restitution, rejecting requests for a lesser term so Markowitz could care for a son with Downs Syndrome.
Markowitz, of Brooklyn, pleaded guity to federal conspiracy, money laundering, tax evasion and program fraud stemming from an investigation called "Operation Super Bowl," which probed the city Department of Environmental Protection's low-flush toilet program that ran from 1993 to 1997.
The program paid $300 million in rebates to city landlords who installed low-flush toilets. Each rebate ranged from $150 to $240 per toilet.
Prosecutors said that Markowitz, an owner of Bayit Plumbing and Heating in the Bronx, was an integral part of the fraud scheme.
Assistant Manhattan U.S. Attorney Stanley Okula told Casey yesterday that Markowitz was the "key linchpin" who worked with corrupt plumbing firms that schemed with Volt Viewtech, the firm contracted by the DEP to run the program.
Prosecutors said the owners of the toilet bowl companies bribed Volt into giving rebates for toilets that were never installed.
Markowitz Monday asked for a lesser term saying that his handicapped 11-year-old son would suffer. "I think I can take whatever punishment is given to me, but my son David might be institutionalized," he said.
Casey denied the request saying the child's mother and siblings could care for the boy.
"The defendant acted as the sole intermediary among the co-conspirators in the scheme," Casey said. "Accordingly, his central role in this conspiracy weighs against his motion."
While the defendant has already paid $80,000 in restitution, Casey further ordered Markowitz to pay $900,000 and ordered him to make a $7,500 payment and a court fee of $400 Monday.
Casey also ordered Markowitz to pay any outstanding federal income taxes owed after the IRS conducts an audit.
Markowitz was permitted to surrender to prison authorities on Oct. 16 to begin his term.
By Patricia Hurtado
Staff Writer
July 14, 2003, 6:50 PM EDT
A businessman convicted of being part of a scheme that defrauded the city out of $1.3 million in a toilet-rebate program, saw his dreams of a reduced prison term flushed away Monday.
U.S. District Judge Richard Casey sentenced Avi Markowitz, 46, to serve a 33-month prison term and pay nearly $1 million in restitution, rejecting requests for a lesser term so Markowitz could care for a son with Downs Syndrome.
Markowitz, of Brooklyn, pleaded guity to federal conspiracy, money laundering, tax evasion and program fraud stemming from an investigation called "Operation Super Bowl," which probed the city Department of Environmental Protection's low-flush toilet program that ran from 1993 to 1997.
The program paid $300 million in rebates to city landlords who installed low-flush toilets. Each rebate ranged from $150 to $240 per toilet.
Prosecutors said that Markowitz, an owner of Bayit Plumbing and Heating in the Bronx, was an integral part of the fraud scheme.
Assistant Manhattan U.S. Attorney Stanley Okula told Casey yesterday that Markowitz was the "key linchpin" who worked with corrupt plumbing firms that schemed with Volt Viewtech, the firm contracted by the DEP to run the program.
Prosecutors said the owners of the toilet bowl companies bribed Volt into giving rebates for toilets that were never installed.
Markowitz Monday asked for a lesser term saying that his handicapped 11-year-old son would suffer. "I think I can take whatever punishment is given to me, but my son David might be institutionalized," he said.
Casey denied the request saying the child's mother and siblings could care for the boy.
"The defendant acted as the sole intermediary among the co-conspirators in the scheme," Casey said. "Accordingly, his central role in this conspiracy weighs against his motion."
While the defendant has already paid $80,000 in restitution, Casey further ordered Markowitz to pay $900,000 and ordered him to make a $7,500 payment and a court fee of $400 Monday.
Casey also ordered Markowitz to pay any outstanding federal income taxes owed after the IRS conducts an audit.
Markowitz was permitted to surrender to prison authorities on Oct. 16 to begin his term.