Town Of Hempstead Councilman Edward Ambrosino Indicted For Wire Fraud And Tax Evasion

Department of Justice
U.S. Attorney's Office
Eastern District of New York

Defendant Diverted Over $800,000 in Revenue From Former Employer and
Failed to Pay Over $250,000 in Federal Tax Due
An eight-count indictment was unsealed today in United States District
Court for the Eastern District of New York charging Edward Ambrosino
with wire fraud, tax evasion, making and subscribing to false
corporate tax returns, and failing to file a return or pay tax. The
indictment was returned under seal by a federal grand jury sitting in
Central Islip, New York on March 28, 2017. Ambrosino was arrested this
morning and will be arraigned this afternoon before United States
District Judge Joanna Seybert at the federal courthouse in Central
Islip, New York.
The charges were announced by Bridget M. Rohde, Acting United States
Attorney for the Eastern District of New York, William F. Sweeney,
Jr., Assistant Director-in-Charge, Federal Bureau of Investigation,
New York Field Office (FBI), and Acting Special Agent-in-Charge Kathy
A. Enstrom, Internal Revenue Service-Criminal Investigation (IRS-CI).
"As alleged in the indictment, the defendant, an elected public
official, defrauded his former employer and committed a variety of tax
offenses," stated Acting United States Attorney Rohde. "Today's
indictment is a reminder of the obvious, that public officials are not
exempt from paying their fair share of taxes and otherwise complying
with the laws of the United States, just like any other citizen."
"In this case as charged, Ambrosino's crimes claimed as a victim, the
law firm for whom he worked," stated Assistant Director in Charge
Sweeney. "As alleged, he also committed tax fraud, all the while
serving as an elected public official. The FBI is committed to working
with our law enforcement partners to ensure this type of behavior
ceases to exist, no matter who is at fault."
"The IRS enforces the nation's tax laws, but also takes particular
interest in cases where someone, for their own personal benefit, has
taken what belonged to others. The indictment alleges, Mr. Ambrosino
intentionally sought to undermine the tax laws of the United States,
violate the public trust while ignoring the fiduciary responsibility
he has with his employer," stated Acting Special Agent-in-Charge
Enstrom.
As detailed in the indictment, Ambrosino was an attorney licensed to
practice in New York State, specializing in economic and industrial
development and financings. Between approximately November 2001 and
December 2015, he was "Of Counsel" at a law firm based in Uniondale,
New York (the "Law Firm"). In addition, since March 2003, Ambrosino
has served as a Councilman for the Town of Hempstead, New York. Since
2010, he has also acted as Special Counsel to the Nassau County
Executive.
In 2011, Ambrosino incorporated Vanderbilt Consulting Group, Inc.
("Vanderbilt"). Ambrosino was the sole shareholder for Vanderbilt. In
September 2012, Ambrosino opened a bank account in the name of
Vanderbilt (the "Vanderbilt Bank Account"), and he was the sole
authorized signer on that account.
As alleged in the indictment, from 2013 through 2015, in contravention
of his compensation agreement with the Law Firm, Ambrosino diverted
legal fees that he was required to provide to the Law Firm and
deposited them into the Vanderbilt Bank Account. Among Ambrosino's
clients from whom he received legal fees were components of Nassau
County, New York, including the Nassau County Industrial Development
Agency (the "NCIDA") and the Nassau County Local Economic Assistance
Corporation (the "NCLEAC"). Between 2013 and 2015, Ambrosino received
more than $1.3 million in payments from the NCIDA and NCLEAC. Of this
amount, Ambrosino deposited more than $800,000 into a bank account,
for which he was the sole signatory, rather than submitting the
payments to the Law Firm as required under his compensation agreement.
As further alleged in the indictment, Ambrosino evaded substantial
income tax due and owing by him and filed false and fraudulent
corporate tax returns on behalf of Vanderbilt. For the 2011, 2012 and
2013 tax years, Ambrosino evaded the assessment of income tax by,
among other things, deducting rent expenses on the Vanderbilt
corporate tax returns that he knew were not business expenses.
Specifically, Ambrosino claimed rent for a Manhattan apartment paid
for by him on behalf of a third-party as a business expense.
Ambrosino's personal tax returns included the losses flowing from
Vanderbilt for the 2011 and 2012 tax years. In addition, for the 2013
tax year, Ambrosino failed to claim approximately $315,000 in funds he
diverted from the Law Firm on either his personal income tax return or
the Vanderbilt corporate tax return. With respect to the 2014 tax
year, Ambrosino did not timely file his personal tax return or the
corporate tax return for Vanderbilt. As a result of Ambrosino's
conduct, the IRS suffered a tax loss of approximately $254,628.
If convicted, Ambrosino faces a maximum term of imprisonment of 20
years for the wire fraud charge, five years for each charge of tax
evasion, three years for each charge of making and subscribing to
false corporate tax returns, and one year for failing to file a tax
return. The charges in the indictment are merely allegations, and the
defendant is presumed innocent unless and until proven guilty.
The government's case is being prosecuted by the Office's Long Island
Criminal Division. Assistant United States Attorneys Catherine M.
Mirabile and Raymond A. Tierney are in charge of the prosecution.
The Defendant:
EDWARD AMBROSINO
Age: 52
North Valley Stream, NY
E.D.N.Y. Docket No. 17-CR-162 (JS)
USAO - New York, Eastern