By JOSEPH KELLARD
Barry Drayer, 66, of Wellesley, Mass., and Stephen Barker, 42, of Lake Forest, Calif., were convicted in U.S. District Court in Central Islip on conspiracy to commit money laundering and bank fraud on Feb. 17. Their $28 million scheme revolved around Drayer¹s family-owned medical-equipment leasing firm, the now defunct RW Professional Leasing of Island Park. The senior vice president of the business, Drayer was also convicted on six counts of bank fraud.
Federal prosecutors Linda Lacewell and Steven Tiscione argued that RW Professional Leasing used bank loans to purchase medical equipment, from machines to furniture, and leased them to doctors and dentists. Among these banks providing the loans was the Bank of New York on Long Beach Road. In addition, the prosecutors charged that much of the money the banks loaned them was used to keep the leasing firm solvent. Drayer turned the family business into ³a fraud machine,² prosecutors charged, in which his sister, brother, niece and nephew had previously pleaded guilty on various charges related to the company. Barker, a president of the California-based Carefree Financial Services, was accused of assisting in the scheme.
The guilty verdict was handed down a day and a half after the month-long trial. Drayer was released pending sentencing by U.S. District Judge Arthur Spatt, and Barker was held without bail, since he is a native of South Africa with relatives still living there and thus considered a flight risk. Barker¹s lawyer, Terrence Buckley of Islandia said he planned an appeal and hoped to get the money to bail out his client.
Both Drayer¹s lawyer, Steve Zissou of Bayside, and Tiscione did not return phone calls to comment on the verdict.
In 2005, the Bank of New York was fined $38 million and agreed to have its actions monitored after allowing the Island Park branch to permitting RW Professional Leasing to set up fraudulent business accounts used in the scheme. The bank did not return a phone call for comment.
