RealEstateEconomyWatch.com

Bernie Kerik, the former New York City Police Commissioner, was indicted today by a federal grand jury on conspiracy, tax fraud, and false statements on a mortgage application in connection with purchase of his Riverdale, New York apartment.

According to the indictment, Kerik borrowed part of the down payment from a Manhattan Realtor, but falsely denied that he had done so to the bank that extended him the mortgage loan for his purchase of the apartment.

Kerik received approximately $255,000 in renovations to Kerik’s apartment from a company seeking to do business with the city while he was Commissioner of the New York City Department of Corrections and he took steps to convince to convince city regulators that the contractors were free of mob ties and should be approved to do business requiring City permits, according to the indictment filed in White Plains.

The indictment also charges Kerik with impeding the Internal Revenue Service and with multiple counts of false tax returns in connection with: his failure to declare the value of the above renovations as income; his failure to report as income approximately $236,000 in rent payments for a Manhattan apartment, which payments were made by a Manhattan developer with whom Kerik had agreed to conduct business; his failure to report approximately $75,000 in income received from a book publisher; his taking of approximately $80,000 in phony charitable deductions; and his failure to report approximately $20,000 in income received from a computer software company.

Kerick is also charged with making multiple false statements to the White House and other federal officials in connection with his application for positions as advisor to the President’s Homeland Security Advisory Council and in connection with his nomination to be Secretary of the United States Department of Homeland Security.

Kerik faces a maximum aggregate sentence of 142 years in prison and $4,750,000 in fines. If he is found guilty, he will also be required to forfeit $255,000.  He will appear in court this morning.