JimInCO
May 9th, 2009, 04:08 PM
http://www.northcountrygazette.org/2009/05/06/pimp_prosecutor/
Pimp Prosecutor Cuts Deal, Avoids Prison
Posted on Wednesday, 6 of May , 2009 at 7:15 pm
MANHATTAN—More than two years since a former assistant U.S. Attorney and his law clerk were indicted on promoting prostitution, conspiracy and money laundering charges stemming from their participation in a Manhattan escort agency, he has been allowed to plead guilty to two misdemeanor counts and received no jail time.
Paul Bergrin, 53, was indicted in January 2007, and had faced a maximum sentence of 8 1/3 to 25 years if convicted on the top count against him, first-degree money laundering. In all, he was charged with six felonies and two misdemeanors.
The indictments arose from a continuing investigation into the operation of the “NY Confidential” escort agency on Worth Street in lower Manhattan. Bergrin and James Cortopassi, his law clerk who was attending law school, and Hiram Ortiz, the owner of a tavern in Bloomfield, NJ, and former New Jersey state trooper, has also been indicted.
Bergrin and Cortopassi were charged in two indictments connected to “NY Confidential.” The first indictment, spanning a period from July 27, 2004 to Jan. 11, 2005, charged first degree money laundering, third degree promoting prostitution, fifth degree conspiracy, a conspiracy to promote prostitution, and misconduct by an attorney.
The trio were charged together in the second indictment with money laundering, promoting prostitution and a prostitution conspiracy that continued from Jan. 12, 2005 through March 2, 2005. The second conspiracy started after the manager of “NY Confidential,” Jason Itzler, was arrested on Jan. 10, 2005. Itzler was indicted in January 2005 and has pleaded guilty to money laundering and attempted promoting prostitution, and is expected to be sentenced to 1˝ to 3 years in prison.
According to the indictment for the initial conspiracy, Bergin and Cortopassi along with Itzler and others, laundered over $800,000 in credit card proceeds from prostitution dates arranged by “NY Confidential.” The investigation disclosed that credit card charges were processed through Itzler’s shell company, Gotham Steak, LLC, and the money transferred to another shell company, Tribeca Models, LLC.
Checks from Tribeca Models were written to pay escorts and employees, as well as to Itzler, Bergrin, Cortopassi and others involved in the conspiracy. The investigation also revealed that Bergrin received large cash payments from the escort business.
The indictment had alleged that Bergrin and Cortopassi perpetrated a fraud on the New Jersey Parole Board and the New York County Criminal Court. Bergrin falsely claimed that Itzler worked as a paralegal on one of the Abu Ghraib military prosecutions in which he represented a defendant (U.S. v. Sgt. Javal Davis). He did so in order to get Itzler, a parolee, more relaxed curfew restrictions so that Itzler could manage the escort agency at night, prosecutors said. Itzler made the false claim to his parole officers, and Bergrin allegedly corroborated it with letters and fake paychecks sent to parole officers. Cortopassi went to the parole office posing as an attorney when Itzler was arrested for a curfew violation and falsely told a parole officer that Itzler had been working with him at the time.
Bergrin continued the fraud when he represented Itzler at Itzler’s arraignment in New York County Criminal Court in January of 2005. In his bail application, Bergrin falsely claimed that Itzler had been working with him 12-14 hours a day for months.
A second indictment charged the three defendants with operating the “NY Confidential” escort prostitution business from Jan. 12, 2005 though March 2, 2005. The Jan. 10, 2005 arrest of the agency’s owner, Jason Itzler, threatened to close the business down. The continuing investigation revealed that after Itzler’s arrest, Bergrin assumed direct control of the escort agency. He and Cortopassi conspired with Ortiz and a former escort to keep the business going, and they met with some of the escorts who worked for “NY Confidential” and convinced them to keep on working. The new business first used the same 79 Worth Street location, and then moved to an apartment at 247 East 32 Street, which Itzler had leased previously for use as a prostitution “in-call” location.
It is alleged that Ortiz and the former escort handled the telephone bookings of escort-prostitution dates. Most dates were paid for in cash, even though the cost of the escorts was around $1000 per hour. But some dates were paid for by credit card. When this happened, Ortiz submitted the credit card charges to credit card companies using the “merchant processing” account for his tavern, “Scores Sports Café,” in Bloomfield, NJ, as though the charges had been incurred there, and payments were directly deposited into the bank account of the tavern’s parent business, “Ortiz & Kaufman, LLC.” Ortiz also wrote checks from this bank account to pay the rent at 247 East 32 Street, as well as to pay two escort-prostitutes who went on credit card dates. On Jan. 25, 2005, Bergrin filed articles of incorporation for “NY Confidential Escorts, Inc.” listing himself at the 247 East 32 Street address as the person on whom process could be served for the corporation. Bergrin filed dissolution papers on March 2, 2005, and “NY Confidential” shut down.
In the plea deal, Bergin will be sentenced to three years of probation on Sept. 15 if he pays $50,000 in forfeiture by that date.
Ortiz has pleaded guilty to attempted money laundering fourth degree. When he’s sentenced on May 18, he will receive a conditional discharge if has paid $7,500 to the court.
The case against Cortopassi remains pending. He is due in court on May 21. 5-6-09
Pimp Prosecutor Cuts Deal, Avoids Prison
Posted on Wednesday, 6 of May , 2009 at 7:15 pm
MANHATTAN—More than two years since a former assistant U.S. Attorney and his law clerk were indicted on promoting prostitution, conspiracy and money laundering charges stemming from their participation in a Manhattan escort agency, he has been allowed to plead guilty to two misdemeanor counts and received no jail time.
Paul Bergrin, 53, was indicted in January 2007, and had faced a maximum sentence of 8 1/3 to 25 years if convicted on the top count against him, first-degree money laundering. In all, he was charged with six felonies and two misdemeanors.
The indictments arose from a continuing investigation into the operation of the “NY Confidential” escort agency on Worth Street in lower Manhattan. Bergrin and James Cortopassi, his law clerk who was attending law school, and Hiram Ortiz, the owner of a tavern in Bloomfield, NJ, and former New Jersey state trooper, has also been indicted.
Bergrin and Cortopassi were charged in two indictments connected to “NY Confidential.” The first indictment, spanning a period from July 27, 2004 to Jan. 11, 2005, charged first degree money laundering, third degree promoting prostitution, fifth degree conspiracy, a conspiracy to promote prostitution, and misconduct by an attorney.
The trio were charged together in the second indictment with money laundering, promoting prostitution and a prostitution conspiracy that continued from Jan. 12, 2005 through March 2, 2005. The second conspiracy started after the manager of “NY Confidential,” Jason Itzler, was arrested on Jan. 10, 2005. Itzler was indicted in January 2005 and has pleaded guilty to money laundering and attempted promoting prostitution, and is expected to be sentenced to 1˝ to 3 years in prison.
According to the indictment for the initial conspiracy, Bergin and Cortopassi along with Itzler and others, laundered over $800,000 in credit card proceeds from prostitution dates arranged by “NY Confidential.” The investigation disclosed that credit card charges were processed through Itzler’s shell company, Gotham Steak, LLC, and the money transferred to another shell company, Tribeca Models, LLC.
Checks from Tribeca Models were written to pay escorts and employees, as well as to Itzler, Bergrin, Cortopassi and others involved in the conspiracy. The investigation also revealed that Bergrin received large cash payments from the escort business.
The indictment had alleged that Bergrin and Cortopassi perpetrated a fraud on the New Jersey Parole Board and the New York County Criminal Court. Bergrin falsely claimed that Itzler worked as a paralegal on one of the Abu Ghraib military prosecutions in which he represented a defendant (U.S. v. Sgt. Javal Davis). He did so in order to get Itzler, a parolee, more relaxed curfew restrictions so that Itzler could manage the escort agency at night, prosecutors said. Itzler made the false claim to his parole officers, and Bergrin allegedly corroborated it with letters and fake paychecks sent to parole officers. Cortopassi went to the parole office posing as an attorney when Itzler was arrested for a curfew violation and falsely told a parole officer that Itzler had been working with him at the time.
Bergrin continued the fraud when he represented Itzler at Itzler’s arraignment in New York County Criminal Court in January of 2005. In his bail application, Bergrin falsely claimed that Itzler had been working with him 12-14 hours a day for months.
A second indictment charged the three defendants with operating the “NY Confidential” escort prostitution business from Jan. 12, 2005 though March 2, 2005. The Jan. 10, 2005 arrest of the agency’s owner, Jason Itzler, threatened to close the business down. The continuing investigation revealed that after Itzler’s arrest, Bergrin assumed direct control of the escort agency. He and Cortopassi conspired with Ortiz and a former escort to keep the business going, and they met with some of the escorts who worked for “NY Confidential” and convinced them to keep on working. The new business first used the same 79 Worth Street location, and then moved to an apartment at 247 East 32 Street, which Itzler had leased previously for use as a prostitution “in-call” location.
It is alleged that Ortiz and the former escort handled the telephone bookings of escort-prostitution dates. Most dates were paid for in cash, even though the cost of the escorts was around $1000 per hour. But some dates were paid for by credit card. When this happened, Ortiz submitted the credit card charges to credit card companies using the “merchant processing” account for his tavern, “Scores Sports Café,” in Bloomfield, NJ, as though the charges had been incurred there, and payments were directly deposited into the bank account of the tavern’s parent business, “Ortiz & Kaufman, LLC.” Ortiz also wrote checks from this bank account to pay the rent at 247 East 32 Street, as well as to pay two escort-prostitutes who went on credit card dates. On Jan. 25, 2005, Bergrin filed articles of incorporation for “NY Confidential Escorts, Inc.” listing himself at the 247 East 32 Street address as the person on whom process could be served for the corporation. Bergrin filed dissolution papers on March 2, 2005, and “NY Confidential” shut down.
In the plea deal, Bergin will be sentenced to three years of probation on Sept. 15 if he pays $50,000 in forfeiture by that date.
Ortiz has pleaded guilty to attempted money laundering fourth degree. When he’s sentenced on May 18, he will receive a conditional discharge if has paid $7,500 to the court.
The case against Cortopassi remains pending. He is due in court on May 21. 5-6-09