Superseding Indictment Adds New Defendants, Charges Against Kushner Managing Partner and Two Accountants

NEWARK - A Superseding Indictment was returned today charging a prominent member of the real-estate partnerships controlled by Charles Kushner and two members of the partnerships' outside accounting firm with conspiracy and tax fraud, U.S. Attorney Christopher J. Christie announced.

The Superseding Indictment returned today adds as defendants Richard Stadtmauer, 47, of Livingston, the Vice Chairman, Managing Partner, and Vice President of the Kushner Companies; Stanley Bekritsky, 57, of Teaneck, a former partner at a Roseland accounting firm specializing in servicing the real estate industry; and Anne Amici, 44, of Point Pleasant, an accountant at the Roseland accounting firm. Stadtmauer is Kushner's brother-in-law.

The original Indictment was returned on April 11, 2005, and charged only Marci Plotkin, 49, of North Caldwell, who at the time of the alleged offenses was a certified public accountant employed by the Roseland accounting firm. In the Superseding Indictment, Plotkin faces the same 31 counts as in the original Indictment.

The Superseding Indictment alleges that all of the defendants conspired in a scheme to mischaracterize $5 million worth of charitable and political contributions, capital items and gift-and-entertainment charges as business expenses.

"What we've alleged here is the use of pervasive accounting fraud by sophisticated individuals, followed by multiple efforts to obstruct a lawful investigation into their practices," said Christie. "No one, particularly not powerful, rich, successful individuals and their hired professionals, should believe that their tax crimes will go undetected and not prosecuted to the fullest of our ability."

Stadtmauer, Bekritsky and Amici are scheduled to make initial appearances before U.S. Magistrate Judge Ronald J. Hedges tomorrow at 2:30. An arraignment date would follow for each of them and Plotkin on the new indictment.

Each of the defendants is charged with one count of conspiracy to impede and impair the function of the IRS and to aid and assist the preparation of false partnership tax returns. In addition, Plotkin faces 24 counts of aiding and assisting in the preparation of false partnership tax returns, four counts of subscribing to false personal tax returns, and two counts of obstruction of justice; and Stadtmauer faces 17 counts of aiding and assisting in the preparation of false partnership tax returns. Bekritsky faces seven counts of aiding and assisting in the preparation of false partnership tax returns and one count of obstruction of justice; and Amici faces 11 counts of aiding and assisting in the preparation of false partnership tax returns.
Kushner, a real estate mogul and national and state political contributor, was sentenced on March 4, 2005, to a 24-month sentence for his convictions on charges of assisting in the filing of false tax returns, retaliating against a cooperating witness and making false statements to the Federal Election Commission.

The Superseding Indictment alleges that between 1997 and 2002, Plotkin, Bekritsky, Stadtmauer and Amici participated in a scheme to create false partnership tax returns for the properties controlled by the Kushner Companies by intentionally mischaracterizing $5 million worth of charitable and political contributions, capital items and gift-and-entertainment charges as business expenses. The scheme had the effect of creating millions of dollars worth of deductible expenses, which the partnerships and partners could use to offset earnings in current and future years.

Plotkin and Bekritsky are also charged with obstruction of justice for failing to turn over documents to an investigating federal grand jury. These documents were later recovered by federal agents in searches of the accounting firm's offices and Plotkin's home in December 2003, according to the charges.

Plotkin also has been charged with cheating on her personal tax returns by claiming fraudulent Schedule C deductions, failing to pay employment taxes for a household employee and failing to claim income received from Kushner's real estate properties in the form of private school tuition payments for a dependent relative. Those counts cover the tax years 1999 to 2002.

According to Assistant U.S. Attorneys Thomas J. Eicher and Rachael A. Honig, who are prosecuting the case, the conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine; the substantive tax charges each carry a maximum penalty of three years in prison and a $100,000 fine, while the obstruction counts have a maximum penalty of 20 years in prison and a $250,000 fine on each count.

Under the advisory U.S. Sentencing Guidelines, the judge to whom this case is assigned would, upon a conviction, determine an actual sentence based upon a formula that takes into account the severity and characteristics of the offense, and the defendant's criminal history, if any. The Sentencing Guidelines are advisory only, and a judge can sentence within, below or above an eligible sentencing range.

Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

Despite indictment, all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

Christie credited Special Agents of the IRS, under the direction of Special Agent in Charge Patricia J. Haynes, and Special Agents of the FBI, under the direction of Special Agent in Charge Leslie Wiser, Jr., with developing the case against Plotkin, Bekritsky, Stadtmauer and Amici.

The Government is represented by Assistant U.S. Attorneys Eicher and Honig of the U.S. Attorney's Special Prosecutions Division, in Newark.

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Defense Counsel:

Justin Walder, Esq. (Plotkin) (Roseland, NJ)

Robert J. Cleary, Esq. (Bekritsky) (New York, NY)

Paul J. Fishman, Esq. (Stadtmauer) (New York, NY)

Edward J. Plaza, Esq. (Amici) (Red Bank, NJ)