#AceFinanceNews – NEW YORK – (Reuters) – Three men found guilty of engaging in a scheme to line their own pockets while implementing a payroll system for New York City whose costs ballooned to $700 million were each sentenced to 20 years in prison on Monday.
U.S. District Judge George Daniels in Manhattan, in sentencing Mark Mazer, Gerard Denault and Dimitry Aronshtein, also had sharp criticism for the city, which he said for years failed to stop the men’s “brazen scheme.”
The judge called New York’s contracting process an invitation for waste and fraud and said that until changes are made, criminal cases connected to it would remain “routine.”
“The process is in need of significant reform,” he said.
A spokeswoman for the New York City Law Department had no immediate comment on the judge’s remarks.
Mazer, Denault and Aronshtein received the maximum sentence for each count on which they were convicted in November, with the sentences for each man to be served concurrently.
The three were part of what prosecutors called a network of relatives and other conspirators involved in a massive fraud and kickback scheme.
(NYDN) – Gerard Denault, Mark Mazer and Dmitry Aronshtein were found guilty in November of siphoning away nearly $100 million associated with CityTime in a kickback and money laundering scheme.
A Manhattan federal judge gave the men the maximum sentence for each count Monday, but will allow the sentences to be served concurrently, meaning each will spend about 20 years behind bars.
BY Daniel Beekman
NEW YORK DAILY NEWS
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