By Jeff Lipton
Named as defendants in the 17-count indictment, unsealed on July 25, were William DeRespino, 43, of Rose Lane in Rockville Centre; Louis Renzo, 49, of Channel Road in Woodmere; and James Gass, 64, of Arthur Avenue in Chester, N.Y.
Manhattan District Attorney Robert Morgenthau and New York State Banking Department Superintendent Diana Taylor announced the indictments of the three suspects, along with those of five related corporations owned by Renzo. They are accused of bribery, money laundering and other charges involving former New York State Banking Department (NYSBD) officials and CLB Check Cashing Inc., the second-largest check-cashing company in the state, which operates 34 storefronts in the five boroughs.
Gass is a former NYSBD bank examiner; Renzo is owner and president of CLB; and DeRespino is CLB's senior vice president and a former NYSBD bank examiner.
Gass left the NYSBD in 2003, five years after DeRespino, according to prosecutors, who added that the charges revealed that Gass, Renzo and DeRespino took part in corrupt dealings in which Gass supplied them with confidential NYSBD information in exchange for benefits, including cash and employment. According to the indictment, Renzo and DeRespino laundered some bribe payments through gas stations owned by Renzo. In addition, the defendants committed perjury to conceal their corrupt relationship, the indictment said.
In exchange for providing confidential NYSBD information to CLB, Gass received at least $35,000 in cash and an $85,000-a-year job, according to the indictment. Gass received three checks while he was at NYSBD, each for $5,000, from gas stations owned by Renzo.
These three checks were then cashed at CLB, and as a result, Renzo and the three gas station companies were charged with money laundering, officials said. Gass also received an $85,000-per-year job as the CLB "compliance officer," which he started immediately after he retired from the NYSBD at the end of March 2003. After joining CLB, Gass received another $20,000 - a $15,000 check from CLB Management Corporation, which was cashed at CLB, and a $5,000 check from CLB Management Corporation, which was deposited into his personal account, authorities said.
No bail was requested, since all three suspects surrendered after the 17-count indictment was unsealed, and they were released on their own recognizance, according to Barbara Thompson, a spokeswoman for Morgenthau. They are next scheduled to appear in criminal court in Manhattan on Aug. 21 before Judge Arlene Goldberg.
Morgenthau commended Taylor for her cooperation with the investigation and her efforts to uncover and respond to corruption within her own agency.
"We're closely looking at this type of industry," said Morgenthau of check-cashing businesses. "It's part of our continuing investigation. Some of these [check-cashing] locations are particularly lucrative."
He said CLB could lose its license to operate upon a conviction.
Roger Stavis, an attorney for DeRespino, said, "The charges are without any substance whatsoever. We will vigorously challenge them, and at the end of the day, we will be vindicated."
Steven Kobre, an attorney for Gass, questioned the strength of the government's case because the allegations have been investigated for at least three years. "That certainly should have been an indication of the strength of evidence," Kobre said. "[Gass] looks forward to his day in court."
Ira Lee Sorkin, Renzo's attorney, said, "The banking authorities have known of most of these allegations for several years now. We intend to defend against the charges. Mr. Renzo did nothing illegal or improper."
Check-cashers are subject to rigorous examination and monitoring by NYSBD bank examiners. Gass was a bank examiner in the Licensed Financial Services Division, responsible for overseeing and monitoring the compliance of many check-cashers, including CLB. The investigation revealed that Gass allegedly misused his position as a bank examiner to benefit CLB, Renzo and DeRespino by interfering in contract negotiations between CLB and a rival check-casher, Rockaway Kennedy Check Cashing on Rockaway Boulevard in Jamaica, Queens, and using his authority inappropriately to influence those negotiations. As a result, Renzo and CLB were able to purchase the competitor at an advantageous price.
Rockaway Kennedy was ultimately sold to CLB for significantly less than the originally agreed upon purchase price.
It is alleged that Gass also violated his role as a bank examiner by providing Renzo and DeRespino with confidential NYSBD information on other rival check-cashers.
The investigation also uncovered that Renzo and CLB allegedly participated in schemes to cheat New York City and state out of sales tax on pre-paid phone cards that were sold at CLB.
Renzo and DeRespino are each charged with one count of second-degree bribery, two counts of second-degree rewarding official misconduct, three counts of fourth-degree money laundering and one count of first-degree scheme to defraud. Renzo is also charged with one count of first-degree offering a false instrument for filing and one count of third-degree grand larceny, and DeRespino is additionally charged with three counts of first-degree offering a false instrument for filing.
Gass is charged with one count of second-degree bribe receiving, two counts of receiving reward for official misconduct, three counts of fourth-degree money laundering, two counts of first-degree perjury, one count of first-degree scheme to defraud and one count of defrauding the government.
CLB and gas stations owned by Renzo were hit with a host of similar bribery and money laundering charges.
If found guilty, they each face a maximum five to 15 years in state prison, as well as penalties of up $4 million, which is twice their gain from the offenses committed, prosecutors said
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Comments about this story? JLipton@liherald.com or (516) 569-4000 ext. 210.
