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How a ‘Liar and a Felon’ Became the Government’s Best Witness in Decades ‘Liar,’ and Star Witness in City Graft Cases, Gets 10-Month Sentence
(32 minutes later)
Mayor Bill de Blasio called him a “liar and a felon.”Mayor Bill de Blasio called him a “liar and a felon.”
The man, Jona S. Rechnitz, was a wealthy real estate scion who made large donations to the mayor’s political campaigns and causes, gaining access to key officials. The man, Jona S. Rechnitz, was a wealthy real estate scion who made large donations to the mayor’s political campaigns and causes, gaining access to key officials, including Mr. de Blasio.
But Mr. Rechnitz became an instant pariah in City Hall after pleading guilty in 2016 to corruption-related charges. He admitted that those contributions — as well as direct bribes given to police officials — were a means to gain influence.But Mr. Rechnitz became an instant pariah in City Hall after pleading guilty in 2016 to corruption-related charges. He admitted that those contributions — as well as direct bribes given to police officials — were a means to gain influence.
His admissions formed the core of a cooperation agreement in which he became a key government witness in three federal corruption trials, leading to the convictions of half a dozen people, including a powerful correction officers’ union boss, a hedge fund mogul, a police official and a Brooklyn businessman. His admissions formed the core of a cooperation agreement in which he became a key government witness in three federal corruption trials, leading to the convictions and guilty pleas of half a dozen people, including a powerful correction officers’ union boss, a hedge fund mogul, a police official and a Brooklyn businessman.
Mr. Rechnitz became, according to federal prosecutors in Manhattan, “one of the single most important and prolific white-collar cooperating witnesses in the recent history of the Southern District of New York.”Mr. Rechnitz became, according to federal prosecutors in Manhattan, “one of the single most important and prolific white-collar cooperating witnesses in the recent history of the Southern District of New York.”
On Thursday, Mr. Rechnitz was sentenced to 10 months in prison by Judge Alvin K. Hellerstein, an outcome that contrasted sharply from the possible 20 years in prison he faced when he was first arrested and charged. On Thursday, Mr. Rechnitz was sentenced to five months in prison and five months of house arrest, followed by three years on parole, an outcome that contrasted sharply from the possible 20 years in prison he faced when he was first arrested and charged. The start of his sentence has been suspended pending the outcome of an appeal.
Before he was sentenced, Mr. Rechnitz apologized for his “criminal and moral” behavior, and asked the judge for leniency. Before he was sentenced, Mr. Rechnitz apologized to Judge Alvin K. Hellerstein for his “criminal and moral” behavior, and asked the judge for leniency.
“I cannot express, your honor, how distraught I am at how I desecrated my religion,” he said, acknowledging that he had “made many poor choices, and many people suffered because of them.”“I cannot express, your honor, how distraught I am at how I desecrated my religion,” he said, acknowledging that he had “made many poor choices, and many people suffered because of them.”
Branded a liar, and a “wannabe big shot,” Mr. Rechnitz had endured intense public scrutiny as a government witness, federal prosecutors said. He met with prosecutors more than 80 times, often traveling to New York City from the West Coast, where he lived. Mr. Rechnitz had endured intense public scrutiny as a government witness, federal prosecutors said. He met with prosecutors more than 80 times, often traveling to New York City from the West Coast, where he lived.
His testimony in one of the trials helped expose years of sordid and petty corruption within the New York City Police Department — officials who had provided favors in exchange for junkets, prostitutes and expensive gifts — that reached the highest echelon of the department.His testimony in one of the trials helped expose years of sordid and petty corruption within the New York City Police Department — officials who had provided favors in exchange for junkets, prostitutes and expensive gifts — that reached the highest echelon of the department.
The cases cast a cloud over City Hall and the mayor, who was never accused of wrongdoing.
In asking for leniency, prosecutors compared Mr. Rechnitz to Todd Howe, the government’s star witness in a scandal that brought down several people close to Gov. Andrew M. Cuomo, including his aide, Joseph Percoco, who was sentenced last year to six years in prison for soliciting bribes.
Mr. Rechnitz’s testimony, the government wrote, had “exposed the sordid underbelly of multiple New York City institutions, exposed serious crimes and held powerful people who fell short of their obligations to the broader public to account.”Mr. Rechnitz’s testimony, the government wrote, had “exposed the sordid underbelly of multiple New York City institutions, exposed serious crimes and held powerful people who fell short of their obligations to the broader public to account.”
He played a key role in the prosecution of Norman Seabrook, 58, the former president of the Correction Officers’ Benevolent Association, who was convicted last year on bribery and conspiracy charges. The evidence showed that Mr. Seabrook had steered $20 million from the union into a risky hedge fund in exchange for a promised kickback worth more than $100,000. The cases cast a cloud over City Hall and the mayor, who was never accused of wrongdoing. Mr. Rechnitz asserted that he had bought access to City Hall with his donations to Mr. de Blasio’s campaigns and causes; the mayor said that Mr. Rechnitz was “exaggerating in many, many ways,” characterizing him as a “horrible human being.”
Ultimately, prosecutors said, Mr. Seabrook received $60,000 in bills crammed inside of a designer bag purchased from his favorite luxury goods store, Salvatore Ferragamo. Mr. Rechnitz said he arranged for the payoff, and recalled on the witness stand in Federal District Court that the union president had commented, “It’s time Norman Seabrook got paid.” Mr. Rechnitz had undoubtedly hoped to make a different kind of impact when he moved to New York City from Los Angeles in 2008 to follow in his father’s footsteps in real estate.
Mr. Rechnitz was an up-and-comer from Los Angeles when he moved to New York in 2008 to follow in his father’s footsteps in real estate.
He got his start with Africa Israel USA, an international real estate development firm owned by Lev Leviev, an Israeli real estate and diamond mogul. Mr. Rechnitz wanted badly to be a “big shot,” federal prosecutors said during one of the trials.He got his start with Africa Israel USA, an international real estate development firm owned by Lev Leviev, an Israeli real estate and diamond mogul. Mr. Rechnitz wanted badly to be a “big shot,” federal prosecutors said during one of the trials.
Mr. Rechnitz eventually met Jeremy Reichberg, an enterprising Brooklyn businessman who had built a reputation as a “fix-it guy” who used his police connections to help friends and associates with moving and parking violations for a fee. Mr. Rechnitz eventually met Jeremy Reichberg, an enterprising Brooklyn businessman who had built a reputation as a “fix-it guy” who used his police connections to help friends and associates with moving and parking violations for a fee. (He was sentenced to 48 months in prison in May.)
The men bonded, it seemed, over a shared desire to secure access to New York City’s most powerful and influential officials.The men bonded, it seemed, over a shared desire to secure access to New York City’s most powerful and influential officials.
“He had all these connections to police,” Mr. Rechnitz testified. “I didn’t know many people that had connections with police, growing up in Los Angeles, and I thought this would be an awesome tool for me personally and for my business.”“He had all these connections to police,” Mr. Rechnitz testified. “I didn’t know many people that had connections with police, growing up in Los Angeles, and I thought this would be an awesome tool for me personally and for my business.”
Mr. Rechnitz and Mr. Reichberg became partners, federal prosecutors said, trading gifts with police officials for favors. Mr. Rechnitz testified that he spent hundreds of thousands of dollars on meals at luxury restaurants, sporting events, on private jets, jewelry, hotel stays, all-expense paid trips and prostitutes for officers. The men became partners, federal prosecutors said, trading gifts with police officials for favors. Mr. Rechnitz testified that he spent hundreds of thousands of dollars on meals at luxury restaurants, sporting events, on private jets, jewelry, hotel stays, all-expense paid trips and prostitutes for officers.
The men used their connections to officers in one instance to shut down a lane in the Lincoln Tunnel to allow a police escort to take Mr. Leviev, Mr. Rechnitz’s boss, to his Manhattan hotel.The men used their connections to officers in one instance to shut down a lane in the Lincoln Tunnel to allow a police escort to take Mr. Leviev, Mr. Rechnitz’s boss, to his Manhattan hotel.
“This will earn me lots of points,” Mr. Rechnitz recalled thinking.
Three years later, he launched his own firm, JSR Capital, in midtown on Fifth Avenue.
By 2013, their police connections included four deputy chiefs in commands throughout the city.
Emboldened, they chartered a $60,000 jet to Las Vegas in February 2013 with a prostitute on board for an all-expense-paid Super Bowl weekend with two police officials.
On Christmas Day that year, they dressed as Santas and delivered expensive gifts to high-ranking police officials. In exchange, they got favors and police escorts.
Around the same time, they began courting Philip Banks III, a former chief of the department. They bought him a ring that once belonged to Muhammad Ali, took him to cigar bars and on trips to Israel, the Dominican Republic, Los Angeles and Las Vegas.
In return, they asked Mr. Banks for a parking placard, and to promote a police official — which Mr. Banks did. Mr. Banks was not charged with a crime. He resigned in 2014 citing unspecified personal and professional reasons.
Mr. Banks introduced Mr. Rechnitz to Norman Seabrook, the longtime leader of the Correction Officers’ Benevolent Association, who was one of the most politically connected figures in the city.
Mr. Rechnitz played a key role in the prosecution of Mr. Seabrook, who was convicted last year on bribery and conspiracy charges. Mr. Seabrook had steered $20 million from the union into a risky hedge fund in exchange for a promised kickback worth more than $100,000. The union lost $19 million of its investment.
Still riding a wave of “unbridled ambition,” prosecutors said Mr. Rechnitz turned his attention to City Hall.
“We’re going to become significant contributors, but we want access,” Mr. Rechnitz told Mr. de Blasio’s chief fund-raiser. “When we reach out for things, we want them to get done.”
Over the next several months, Mr. de Blasio received more than $150,000 in contributions for his political campaigns and causes. In return, Mr. Rechnitz had the mayor’s personal cellphone number and email, which he used to invite the mayor to a Knicks game.
At his sentencing, Mr. Rechnitz who now operates a jewelry store in Los Angeles that is frequented by celebrities, told the judge that if he were given a lengthy prison sentence, he doubted that he could “start over a third time.”
Judge Hellerstein cited the Seabrook case in how he determined what sentence to give Mr. Rechnitz. He ordered Mr. Rechnitz to pay $10 million in restitution for the correction officers’ union’s loss.
“All of us do bad things,” the judge said. “Some of those bad things are criminal acts for which we must account.”
Emily Palmer contributed reporting.Emily Palmer contributed reporting.