Ex-NYPD Officer Sentenced to 27 Months for Embezzling From Municipal Credit Union
The wrongdoing was related to a criminal corruption probe of MCU and its ex-CEO, Kam Wong, who is currently serving a five-and-a-half-year sentence for defrauding MCU out of nearly $10 million. The investigation also led to the arrest of Sylvia Ash, a Brooklyn state Supreme Court judge charged with trying to cover up Wong's crimes and then lying to authorities.
July 23, 2020 at 06:31 PM
4 minute read
A Manhattan federal judge on Thursday sentenced former New York City Police officer Joseph Guagliardo to 27 months in prison for conspiring to embezzle hundreds of thousands of dollars from New York's oldest credit union.
Guagliardo, who served on Municipal Credit Union's advisory board, was accused last October of diverting the funds to a private security company and a nonprofit organization that were both under his control. He has also admitted to supplying the credit union's former CEO, Kam Wong, with illegal painkillers, and pleaded guilty to one count of embezzlement earlier this year.
The wrongdoing was related to a criminal corruption probe of MCU and Wong, who is currently serving a five-and-a-half-year sentence for defrauding MCU out of nearly $10 million. The investigation also led to the arrest of Sylvia Ash, a Brooklyn state Supreme Court judge charged with trying to cover up Wong's crimes and then lying to authorities.
Ash, who has been suspended from the bench, has pleaded not guilty to the charges.
Guagliardo's sentence, handed down by U.S. District Judge Denise Cote of the Southern District of New York, was in line with prosecutor's request that he serve time at the low end of the federal guidelines. His attorney, Joseph Arlia, had asked for a nonjail sentence, citing his client's age and law enforcement background as reasons to keep him out of jail.
Guagliardo, 63, had suffered from prostate cancer and other conditions that made him particularly vulnerable to complications from COVID-19, if he were to contract the disease in prison, Arlia said during the remote sentencing, which was held via the court's Skype for Business platform.
Guagliardo, who appeared on camera wearing a mask and gloves, said that he was "ashamed, humiliated and broken" for having damaged MCU, the state-chartered credit union which he credited with "saving my life" after he was disabled and forced to retire from the police force in 1993.
MCU has said that it lost at least $1.1 million as a result of Guagliardo's conduct and has been placed under convervatorship as a result of the multiple scandals.
Addressing the court during Thursday's sentencing, Stella Mendez, the credit union's former administrator, painted Guagliardo as a "bully," who used his connections with law enforcement to "exploit" MCU for his own gain.
"He treated the credit union like his own fiefdom," Mendez said in brief remarks to the court.
Arlia argued that Guagliardo was a victim of Wong's temptations, saying that the former CEO had tried to compromise members of MCU's board in order to facilitate his own crimes. Arlia also denied allegations of bullying and that his client had conspired with Wong to defraud the credit union.
Still, Arlia said, Wong had taken "orchestrated, carefully measured" steps to "tempt" those around him.
"Even a state Supreme Court judge fell prey to this," he said.
Cote, however, responded that, "I am not sentencing Mr. Wong. He has been sentenced and was sentenced by another judge."
Cote noted that Thursday's sentencing was the first time she had seen Guagliardo express remorse for his actions at MCU, and said she found it hard to believe Wong had "led the defendant astray" by offering him incentives to break the law.
"This was not negligent conduct by Mr. Guagliardo. This was a decision on Mr. Guagliardo's part," she said. "He took full advantage of the lack of oversight at MCU and [deprived] its members of hundreds of thousands of dollars."
Cote ordered Guagliardo to report to prison by Sept. 4 and ordered him to pay $468,000 in restitution to MCU within the next three weeks.
READ MORE:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrump Picks Personal Criminal Defense Lawyers for Solicitor General, Deputy Attorney General
SEC Under Trump 2.0 Likely to Take More 'Measured' Enforcement Approach, Observers Say
Decision of the Day: Attorney in Social Security Case Awarded Fees, But Must Pay Client Refund Under Equal Access to Justice Act
Trending Stories
- 1From ‘Deep Sadness’ to Little Concern, Gaetz’s Nomination Draws Sharp Reaction From Lawyers
- 2Legal Speak at General Counsel Conference East 2024: Julie Cantor, Associate General Counsel at Studs, Inc.
- 3Legal Speak at General Counsel Conference East 2024: Chris Correnti, President & CEO & General Counsel AGC America, Inc.
- 4‘What’s Up With Morgan & Morgan?’ Law, Advertising and a Calculated Rise
- 5Cravath Matches 'Special' and Year-End Bonuses
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250