Bay Shore Couple Found Guilty Of Embezzling, Money Laundering: U.S. Attorney

A Bay Shore couple has been found guilty of embezzling from a federally funded program and money laundering, according to the U.S. Attorney's office.

Kwame Insaidoo, 60, the former executive director of the New York-based non-profit United Block Association (UBA) and his wife, Roxanna Insaidoo, 63, were both convicted during their indictment on Tuesday.

According to the U.S. Attorney, between 2008 and 2015 while Kwame was executive director, the organization received over $8.7 million in funding from New York City's Department for the Aging to provide healthy meals and program at four senior centers in Manhattan.

Kwame, with help from Roxanna, embezzled over $580,000 of that money, according to the U.S. Attorney.

The two were both signatories on a UBA bank account that was not subject to audits by the City, wrote hundreds of checks from that account to themselves, their son, and a fake charity they used to launder some of the money, the U.S. Attorney said.

The couple used the stolen funds to pay for personal expenses, including their home mortgage, the purchase of a Mercedes Benz and a Cadillac, and telephone bills and other personal utilities, the U.S. Attorney said.

They also wired more than $300,000 abroad, the U.S. Attorney said.

In addition, in 2011, the couple defrauded their mortgage lender when they modified their mortgage under the federally sponsored Home Affordable Modification Program by underreporting their income and assets, the U.S. Attorney said.

This scheme led to a write-off of almost $200,000 from their home mortgage.

Both were found guilty of embezzlement from a federally funded program, conspiracy to commit money laundering, wire fraud of their mortgage lender, conspiracy to embezzle from a federally funded program, and conspiracy to commit wire fraud of their mortgage lender, the U.S. Attorney said.

Kwame was also found guilty of defrauding the City of New York, the U.S. Attorney said.

They face over 20 years in prison.

Kwame and Roxanna are scheduled to be sentenced on Aug. 11.