Crime Watch

Denenberg pleads guilty to eight counts of mail fraud

Resigns from the legislator's post he held for 15 years

Posted

Dave Denenberg, a longtime Nassau County legislator from Merrick accused by his former law firm of over-billing a corporate client for millions of dollars, pleaded guilty to eight counts of mail fraud Wednesday morning in Central Islip federal court.

Denenberg appeared solemn as he answered Judge Joanna Seybert’s questions, saying he understood the consequences of pleading guilty and was waving his right to a trial. When it came time for his allocution, he spoke hesitantly.

“With respect to those eight counts, I caused invoices to be prepared and sent to [Port Washington computer company] Systemax that included fees for work that wasn’t performed … and the corporation paid,” Denenberg said. He told Seybert that the fraud occurred between late 2006 or early 2007 and early 2014.

About 10 supporters sat behind Denenberg in the gallery, including his wife, Cara. She looked shaken and upset, with her eyes cast on the floor and another woman’s arm around her shoulders.

Denenberg’s sentencing hearing was set for May 22. He faces 41 to 51 months in prison, according to federal sentencing guidelines, said Seybert, who added that she is not bound to adhere to those guidelines.

Denenberg, a Democrat, resigned on Wednesday morning from the Nassau County legislator’s post that he had held for a decade and a half. A special election must be called within 60 days to replace him. Nassau County Executive Ed Mangano will decide later this week when to hold the special election, according to his spokesman Brian Nevin.

“I’m sorry to my family, friends and supporters for all that has happened,” Denenberg said. “I dedicated 15 years to public service.”

Denenberg’s criminal defense attorney, Jason Russo, said, “It’s a sad day for the residents of Nassau County, who lost a faithful servant. Nothing of what transpired today had anything to do with the wonderful work that he has done for decades for the people of Nassau.”

Loretta Lynch, U.S. attorney for the Eastern District of New York and President Barack Obama's nominee for attorney general, said in a statement that "Denenberg used his license to practice law as a license to steal, billing for phantom work to steal real money from a client who trusted him."

"Today’s conviction should serve as a reminder that no one is above the law," Lynch added.

Kevan Abrahams, the County Legislature's Democratic leader, said Denenberg's guilty plea "saddens the caucus."

"I speak for all of them when I say that," Abrahams said. "It was a very difficult day for us, as it will be a difficult time going forward. That being said, we entirely respect the judicial process and its outcome."

Norma Gonsalves, the Legislature's Republican presiding officer, said in a statement that "this is a very sad day for Mr. Denenberg’s family as well as the Nassau Legislature." She pledged to "do all that [she] can" to represent the interests of Denenberg's former district while the seat is vacant.

Denenberg last appeared before Seybert on Dec. 11, when he was expected to plead guilty to the fraud charges. He did not, however. Instead, he asked for and received an adjournment of his case.

Denenberg’s case first came to light when his former law firm sued him in State Supreme Court in Manhattan in September, seeking $3.6 million in damages. The Garden City-based Davidoff Hutcher & Citron LLP charged that Denenberg systemically and fraudulently overbilled a client to the tune of $2.3 million over eight years, and sought a 25 percent annual bonus from the firm based, at least in part, on those billings.

The firm further alleged that Denenberg, an intellectual-property attorney, engaged in a “cold, calculated scheme” that he “willfully executed and concealed.”

Page 1 / 2