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Former Top Cop Sentenced for Tax Fraud

Kelly Phillips ErbFebruary 22, 2010

Disgraced former New York City Police Commissioner Bernard Kerik, once hailed as a hero in New York, was finally sentenced after a lengthy investigation. Surprisingly, Kerik received more than the maximum sentence and will spend four years in federal prison as a result of a plea bargain. Kerik pleaded guilty to eight of the fifteen charges related to preparing false tax returns and lying to the IRS; he was expected to spend between two and three years in prison under the plea.

Kerik made headlines for his calm demeanor and leadership following the 9/11 attacks. He was praised by his friend, Mayor Giuliani, for his actions and appeared with Giuliani in a number of public appearances after the tragedy.

Two and half years later, Kerik testified before the 9/11 Commission in New York City, outlining his recommendations for the future based on what he had learned in the aftermath of the attacks. He publicly endorsed President Bush at the 2004 Republican National Convention. President Bush, in turn, tapped Kerik to lead the revamped Department of Homeland Security. During the vetting process, it was revealed that Kerik failed to pay payroll taxes for his “undocumented” nanny and his nomination was thrown out. But the vetting process had opened the door to what prosecutors painted was a life of entitlement as the chief law enforcement officer for the nation’s largest city.

In 2006, Kerik pleaded guilty to ethics violations and was ordered to pay $221,000 in fines. The charges were related to accepting gifts from members of organized crime.

Kerik has since admitted that he accepted “free” renovations from Interstate Industrial Corp, a waste management company that was hoping to get contracts with the City of New York worth tens of millions of dollars. The company was later found to have ties to the Gambino mob family and was barred from contracting with the City. Despite questions about his involvement, Kerik was named Commissioner by Giuliani in 2000 – without so much as completing a background check.

Those renovations – and other issues – led to charges of lying to the White House and the IRS about his financial situation and the sources of his revenue. Eventually, more information about Kerik’s dicey finances came to light including tens of thousands of dollars taken as a charitable deduction for speaking fees related to his post 9/11 appearances. District Judge Stephen Robinson said about Kerik’s actions that the fact that he “would use that event for personal gain and aggrandizement is a dark place in the soul for me.” Robinson also noted that some of Kerik’s crimes were committed while Kerik was “the chief law enforcement officer for the biggest and grandest city this nation has.”

Kerik apologized for his actions but said that he had learned from his mistakes and hoped that he would be judged not on these actions but “for 30 years of service I’ve given to the country and the city of New York.” Robinson was apparently not impressed, sentencing Kerik to more than the recommended sentence.

Reportedly, Kerik made an appeal to President Bush for clemency in 2008; the appeal was not successful. In addition to prison time, Kerik must pay $188,000 in restitution and outstanding taxes, penalties and interest on six years of tax returns. His lawyer has said that they will appeal.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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