Justice Triumphs

Deputy Assistant Attorney General Ronald A. Cimino for the Tax Division of the Department of Justice and U.S. Attorney Preet Bharara for the Southern District of New York announced that Paul M. Daugerdas, 63, a tax attorney and certified public accountant, was sentenced today in Manhattan federal court to serve 15 years in prison for orchestrating a massive fraudulent tax shelter scheme in which he and his co-conspirators designed, marketed and implemented fraudulent tax shelters used by wealthy individuals to evade over $1.6 billion in taxes owed to the Internal Revenue Service (IRS). 

Earlier today, Barry Stephen Zornberg pleaded guilty at the federal courthouse in Central Islip, New York, to lying to federal investigators about his role in a million-dollar foreclosure rescue fraud scheme. The scheme ensnared at least 10 families, defrauding them of approximately $1.3 million in home equity and caused some of them to lose their homes.

A former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese yen derivatives trader pleaded guilty today for his role in a conspiracy to commit wire and bank fraud by manipulating Rabobank’s Yen London InterBank Offered Rate (LIBOR) submissions to benefit his trading positions.

San Juan, Puerto Rico - U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), working jointly with the Caribbean Border Corridor Strike Force (CCSF) seized Monday 1774 kilograms of cocaine near Dorado and arrested two Venezuelan nationals for drug trafficking. The seized contraband has an estimated street value of $50 million.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Scot Zarkiewicz, the co-founder and former president, chief executive officer, treasurer, and principal owner of SingleClick Systems Corp. (SingleClick), a Delaware-incorporated, New Jersey-based software company, was sentenced today in Manhattan federal court to 63 months in prison for perpetrating a scheme to defraud SingleClick investors.