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Kerik Indictment Expected for Evading Taxes
November 07, 2007 6:16 PM
Federal prosecutors are expected to ask a federal grand jury tomorrow to indict former New York City Police Commissioner Bernard Kerik for failing to pay taxes on free apartment renovations and rent, two federal sources say.
Kerik's reputation took on heroic proportions in the immediate aftermath of the Sept. 11 attacks on the World Trade Center. Side by side with "America's Mayor" Rudolph Giuliani, Kerik was seen as part of the glue that held the city together and soon, owing to the support of Giuliani and a bond he had developed with President George Bush, Kerik was nominated to be "America's Police Commissioner" -- the head of the Department of Homeland Security.
It was not to be. Kerik's fall from grace was swift. It began the same day the appointment was announced with a swirl of allegations of misconduct, including the employment of an undocumented immigrant as a nanny and the acceptance of what amounted to large gratuities, according to ABC News accounts at the time and other published reports. It was just a matter of time before he was the subject of a criminal investigation by a New York prosecutor that led to a 2006 guilty plea in connection with some of the same charges now leveled by the federal government.
THE BLOTTER RECOMMENDS
Kerik, according to sources involved in preparing his defense, has expected the indictment, and his associates have been attempting to raise money for a legal defense fund. Assuming the grand jury sitting in suburban Westchester County federal courthouse votes to indict, Kerik is expected to surrender to the United States Marshals Friday morning.
"The Bernard Kerik Legal Defense Trust has been established to allow Mr. Kerik's friends and supporters to assist him in defending himself against possible charges that may be brought against him by the United States Attorney's Office in the Southern District of New York," an e-mail sent by the defense fund Wednesday evening stated.
The government's case as it has been presented to the grand jury has multiple components that would be reflected in a multiple count indictment.
One component stems from $165,000 worth of renovations to an apartment he owned in an upscale section of the Bronx from a contractor who had sought business with New York City. At the time of the indictment, Kerik was the New York City corrections commissioner. That federal charge -- often short-handed as bribery -- would most likely be for theft of services since the acceptance of the renovations might have clouded his judgment as a public official.
Another component of the case, according to federal sources and sources involved in the defense, stems from a second apartment Kerik used on East 79th Street in Manhattan's posh Upper East Side. In that instance, the rent -- for approximately two years -- was paid by a third party.
Another component of the case stems from the failure to pay taxes on imputed income stemming from the value of the rent and the renovations. According to sources familiar with the case, at least part of that failure to pay taxes component is linked to Kerik's 2000 federal tax return
The expected indictment would be the latest twist in the tale that began when the child of a prostitute rose to police commissioner of New York City through the edict of Rudy Giuliani, then achieved heroic proportions in the shadow of the collapsing World Trade Center, was gifted a diamond-encrusted chief's badge by a supporter, awarded millions of dollars in stun gun stock options by business clients and given the proffer of a presidential appointment by President Bush to head the Department of Homeland Security.
The early chapters were well-documented by Kerik in his autobiographical account "The Lost Son." The final chapters have yet to be written.
They will very likely include a struggle to pay legal bills, as the defense fund e-mail suggests. They also could result in the sale of his multi-million-dollar New Jersey mansion, a long stretch in federal prison and severe damage to his consulting practice, which includes lucrative contracts with U.S. ally Jordan, according to multiple sources involved in the investigation.
Last spring, Kerik turned down a plea bargain in which the government offered a short prison sentence. Now friends of Kerik attempting to raise money for his defense have found the early going difficult, given that many of Kerik's associates may also have relationships with presidential candidate Rudolph Giuliani who is routinely questioned about his relationship with Kerik.
As recently as Monday, Giuliani said that whatever Kerik's failings, he had been an effective corrections commissioner and an effective police commissioner for the city of New York.
"There were mistakes made with Bernie Kerik," Giuliani said in an interview with the Associated Press while in New Hampshire. "But what's the ultimate result for the people of New York City? The ultimate result for the people of New York City was a 74 percent reduction in shootings, a 60 percent reduction in crime, a correction program that went from being one of the worst in the country to one that was on '60 Minutes' as one of the best in the country, 90 percent reduction of violence in the jails."
Giuliani was a staunch supporter of Kerik's nomination by President Bush to head the Homeland Security Department. That nomination fell apart amid allegations that Kerik, while corrections commissioner, paid less than $18,000 to a contractor for nearly $200,000 worth of renovations to his apartment. In 2006, Kerik pleaded guilty to misdemeanor charges related to the renovation.
"It was a mistake not checking him out as thoroughly as I should have," Giuliani told the AP about the failed nomination.
Longtime Kerik attorney Joseph Tacopina did not return a call for comment.
Kerik's tax attorney, Ken Breen, was not immediately available for comment, his office said.
The U.S. Attorney's Office for the Southern District of New York said it does not confirm or deny the existence of the investigations.
Do you have a tip for Brian Ross and the Investigative Team?
November 7, 2007 | Permalink | User Comments (41)
Why, if the story is about Kerik and tax evasion, does it show Bush? Were there no pictures available of Kerik alone?
Posted by: Dennis G | Nov 7, 2007 6:47:10 PM
Once again, you are repeating what Giuliani is saying without verifying the facts. Please stop allowing politicians to lie without presenting the truth.
Posted by: cg | Nov 7, 2007 6:53:36 PM
Another crook masquerading as a "Hero of 911".
Posted by: Dutch | Nov 7, 2007 7:25:00 PM
Bush in the picture because Bush wanted to nominate him to head Homeland Security.
Posted by: JT | Nov 7, 2007 7:42:20 PM
I guess every person in the country that ever commits a crime, commits a crime because of gw. what a loaded crappy story typical of abcnews
Posted by: MarinesCallmeDoc | Nov 7, 2007 7:57:21 PM
talk about going after some petty stuff ! what ridiculous allegations.
Posted by: Jefferson | Nov 7, 2007 8:01:37 PM
yeah, like the person who wrote this story never cheated on their taxes. or speeds when they drive.
kerik is a dirtbag, but so are most people.
nothing to see here.
Posted by: rich b. | Nov 7, 2007 8:03:30 PM
typical ab*c n*ews liberal agenda article. i guess every criminal in the country choose to become a criminal because of gw. this has to be the worst reporting I have seen here since this morning.
Posted by: MarinesCallmeDoc | Nov 7, 2007 8:21:34 PM
I am so glad to see the government spending so much of my money on Kerik- next thing we will hear is that he drove the planes on 9/11.
He may have made mistakes, he may have broken the law- but you have to look at everything not just a few quick lines of an indictment.
Posted by: James | Nov 7, 2007 8:29:48 PM
Why not go after Jesse Jackson, Sharpton, they misuse funds also.
Posted by: Robert | Nov 7, 2007 8:39:22 PM
Kerik was fabulous regarding everything with 9/11 and with N.Y. in general in reducing the crime.
He is gifted in that respect and this redecorating crap needs to be thrown under the table.
There are many cities in the U.S. that needs talented well educated men like Kerik and it's a shame with crime as abundant as it is that we are focusing on this petty crap.
We need good people like Kerik and I wished we had him in our crime filled, crack city Nashville, TN. Murders everyday.
Good Luck Kerik, I for one am praying for you to beat this.
Posted by: kerik fan | Nov 7, 2007 8:40:19 PM
If all the crooked cops were imprisoned, then the prison population would rise from 2.3MILLION to 3MILLION.
Posted by: kenny | Nov 7, 2007 8:59:07 PM
That's it? Not paying taxes on free renovations and rent? And this shows what about Giuliani's judgemnt for hiring someone?
I mean I could understand if people questioned his judgement if he had hired Kerik after he was caught doing something like "Stealing and Destroying Classified Documents from the National Archive before he had to testify in front of a Select Commission about his failure as the National Security Adviser to prevent 9/11.
Posted by: Foncool | Nov 7, 2007 9:19:54 PM
I know why Bush is in the picture...because its his fault like everything else! Are you libs happy now?
Posted by: cbeargal65 | Nov 7, 2007 9:27:43 PM
Atop the article, it says "Richard Esposito Reports". I'm sorry, but this really reads like more of a commentary. Very disappointing news standards here.
Posted by: lar | Nov 7, 2007 9:29:10 PM
Heck, he's not the only police official who doesn't always obey the law(s). The police chief of Fletcher, NC, pulled out of the town hall parking lot and crossed the lanes without signalling on the afternoon of Oct 18th. Of course he'd deny it, but based on his past history, I wouldn't believe much of what he says. That's in addition to his being the most incompetent police officer I've met in my 76 years.
Posted by: DanNC | Nov 7, 2007 9:33:10 PM
Good heavens - the guys a crook.
Posted by: Melissa | Nov 7, 2007 10:33:57 PM
i thought you conservatives are "tough" on crime? sounds like you are all hypocrits to me
Posted by: keith gorla | Nov 7, 2007 10:57:26 PM
I would suggest Bernie and Rudy get dressed up in " Drag " and get married .
Posted by: John Rowland | Nov 7, 2007 11:04:01 PM
Kerik is a crook, plain and simple. He is typical of many of the east coast politicos who think that petty graft is somehow a right because they hold public office.
Posted by: Hattie Caraway | Nov 8, 2007 12:03:09 AM
The good things done by Bernie Kerik are in no way erased by his supposed crimes. Interesting how the politicized prosecutors attack with little or no reason. Good lesson for anyone interested in politics: If you ever spit on the sidewalk the democrats will find out about it and crucify you. To the gentleman in NC. Who cares what you think about your local Police Chief. What did your Chief's driving have to do with Kerik? Get a life.
Posted by: Alan Yates | Nov 8, 2007 12:06:45 AM
Kerik is a crook just like his former boss. I'm so tired of listening to people say what a wonderful job these guys did in NYC. All they did was ride the coat tails of an economy which produced all the results they are now being credited for. When the economy booms more people work, and when more people work they have more money, when people have more money there is less crime. It was a national trend at the time and now people are too dumb to figure it out. These guys are bullies and they are crooks and I'm glad to see one of them getting their just desserts.
Posted by: dk | Nov 8, 2007 12:28:30 AM
Once he's found guilty, MAKE HIM AN EXAMPLE (meaning, "THROW THE BOOK AT HIM")!!!
Posted by: mod rit | Nov 8, 2007 2:21:37 AM
wow, a lot of nothing excuses from people who can't seem to handle the truth -- that this sworn law enforcement official and Giulani main man is a criminal... and about to go down. too bad, he coulda been a contenda'!
Posted by: the doc | Nov 8, 2007 3:12:03 AM
Interesting that Brian Ross reports has anti-Republican candidate reports, anti-Obama reports, but can't find any shadyness with Hillary. Maybe if those archived documents were released at the Clinton Library Brian might have something to report. Might have are the key words - will he - probably not. Brian Hillary Ross keep up the bias you apparently have that going for you.
Posted by: Cincyman | Nov 8, 2007 3:27:00 AM
Don't you love it when the W Worshiping dirtballs link in from the DRUDGE REPORT.
The Guy is a criminal just like Mob Boss Gouhliani and Coke Dealer Bush.
Posted by: Todd Stallion | Nov 8, 2007 4:21:00 AM
Seems to me I have seen this fellow in a photo with Hillary Klinton, too. Why wasn't that photo shown, since she is his Senator. I am far from an unabashed apologist for Bush, but come on! Any other pathological way to bash this guy, ABC?
Posted by: JiminPA | Nov 8, 2007 5:06:07 AM
Kerik's willingness to give up his INTEGRITY…., his senses that he was "entitled" as all the MOVERS believe they are “entitled” allowed this to happen. A shame? Yes. A lesson to be learned….. “Just do the next right thing” comes to mind. We all need a buffer, someone who will tell us the truth in our behavior. He must go thru this, (fessing up to this mistake) as we all must in life.
Oh…. and George….? He was just shooting from the hip, nothing new there. The decision was based on other people’s thoughts….. an a assumption. We all know what that brings.
Lets all move on……
Posted by: Jim O'Connor | Nov 8, 2007 5:16:34 AM
Good for ABC for even reporting this story, the pic of him next to Bush is relevent in that Bush's friends do seem to all be criminals found out eventually. Look at his Vice President!
The media has a responsibility to report all of the facts, not just those that please this administration. Now if we could get ABC to investigate Bush's crimes against humanity. Don't believe me, READ the U.N. Charter that the US signed. Bush has broken articles 8, 9, 10, 12, 18, 19, 20, and the 21st article.Look it up, then decided why it's not important to investigate this administrations actions "on our behalf". Shameful abuse of power..
Posted by: Lynda | Nov 8, 2007 5:17:37 AM
A picture emerges in which shows Bush rewarding those who helped pull off 911, when he wanted to make him Homeland Commissioner. Guiliani is as much involved. Bush will pardon the Libby clone.
Posted by: djermano | Nov 8, 2007 5:28:57 AM
I cannot understand the excuse that other people have done it or do it.
He apparently has broken the law on several occassions.
Is that behavior something we should find acceptable? Please let me know so that I can begin taking $100 to 300K a year in kickbacks from contractors.
Posted by: geek | Nov 8, 2007 5:40:17 AM
Just because he had a failing in one part of his life doesn't mean that he couldn't do good and shouldn't be recognized for doing great things in another. Look at all the people in the Bible that screwed up, but God still used them to do great things in other areas. King David sent a man on a suicide mission in war so that he could steal the mans wife!
Posted by: john in jackson | Nov 8, 2007 6:27:06 AM
Dennis G.:
Because ABC news is biased against the Bush Admin. They could easily have cropped the photo, just like the A.P. likes to make up their own news photos. It's obviously not hard to edit photos.
Posted by: Joe in TX | Nov 8, 2007 7:39:21 AM
It's funny how you apologists want to make it seem that it is a "liberal" conspiracy to get Kerik.
I guess having your apartment renovations paid for by mob-connected firms while being Corrections/Police Commissioner is okay?
Hiring an illegal immigrant, then lying?
Come on, you Conservatives no better than that.
Posted by: Anthony M | Nov 8, 2007 8:15:22 AM
Seems like a nonsense case. not paying taxes on rent paid by someone else? What B.S. We are becoming a police state.
Posted by: CB | Nov 8, 2007 9:17:01 AM
This guy is a national hero and they are going to send him to jail for not paying enough taxes on an apartment???
I would have more respect for Mr. Guiliani if he pointed that out instead of bailing on his friend and a true patriot... Very sad...
Posted by: Brent Wright | Nov 8, 2007 9:54:15 AM
Bernie's buddy, Steakhouse Eddie Norris, who was once NYPD's Chief of Detectives, did the same thing when he came to Maryland and became head of the State Police and Baltimore Police. He pled guilty to Federal charges of using widow's & ophan's money to pay for $3K steakhouse dinners and gifts for his girlfriends. He did a year in the federal pen and is now claiming he was railroaded. High ranking NYPD officials believe that a little graft/criminal misconduct is the norm. It always comes back to haunt them.
Posted by: Eric | Nov 8, 2007 9:57:57 AM
Ok sounds great, but can anyone demonstrate proof that any law, regulation, congressional action exists to pay a mandatory income tax?
Posted by: CG | Nov 8, 2007 10:30:41 AM
Rudy had it all planned. Get Bernie the Homeland gig. Imagine the billions in security-related contracts he would have steered to greedy profiteers lined up by Giuliani Partners. They would have been building fences to keep immigrants out of the US, selling high-tech surveillance equipment to domestic government agencies and foreign nations/clients by the shipload--and playing on their fear (Giuliani's diabolical trump card). Bernie would there giving the nod to the favored profiteer business men and corporations, while Guliani lined them up and, for a considerable fee, made sure that Bernie awarded them inflated contracts, guaranteed to come with over-runs. Bernie could have had all the woman he wanted and free renovations in 50 homes, where he would have taken them for R&R. You know, you need a lot of relaxation when you're so busy protecting everyone from terror.
Posted by: Little Carmine | Nov 8, 2007 11:49:45 AM
Why does everyone have to make a such a big political issue over the matter? The story is of interest because of the high political connections, but it doesn't implicate anyone other than Kerik. Plain and simple - he did something he wasn't supposed to be doing and now he is being held accountable. The fact that he was a high level official makes it even more so. If you are in that position don't do those kind of things.
Posted by: Craig Attanasio | Nov 8, 2007 1:03:38 PM
He and his friend Giuliani should both be in jail, they are morally deficient and self-serving, preying on the fears of New Yorkers after those attacks.
Posted by: Billy Wilson | Nov 8, 2007 1:23:37 PM
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