Emanuel Cohen, Multimillion-Dollar Accounting Fraud, New York 2015
GRAVE CONSEQUENCES: A former Florida-based CEO's taste of power proved fleeting as Emanuel Cohen, 71, of Boca Raton, Florida, pleaded guilty yesterday in Manhattan federal court to orchestrating a multimillion-dollar accounting fraud scheme.
Cohen and his alleged cohort, Jay Sosonko, 68, the former chief operating officer of the Company, engaged in a scheme to fraudulently induce a commercial bank based in New York to lend millions of dollars to the Company.
Between 2012 and March 2014, Cohen and Sosonko knowingly made false representations to the bank, concealed material facts from the bank, and submitted false and fraudulent documents to the bank, including fabricated borrowing base certificates.
The Company ultimately defaulted on its loans from the bank in about March 2014, with an outstanding balance of approximately $4.8 million.
Cohen pleaded guilty to one count of conspiracy to commit bank fraud and one count of bank fraud, each of which carries a maximum sentence of 30 years in prison.
Cohen is scheduled to be sentenced on November 4, 2015, before U.S. District Judge Lewis A. Kaplan.
Sosonko, who was arrested this morning in Boca Raton, Florida, is charged with one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making a false statement to influence bank action, each of which carries a maximum sentence of 30 years in prison.
The FBI worked closely with the U.S. Attorney's Office for the Southern District of New York to bring these charges against Cohen and Sosonko.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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