Hempstead Town Councilman Ed Ambrosino Arrested On Wire Fraud, Tax Evasion Charges

Town of Hempstead Councilman Ed Ambrosino was arrested Friday on charges of wire fraud and tax evasion.

Ambrosino, 52, of North Valley Stream, was charged Friday morning with wire fraud, tax evasion, making and subscribing to false corporate tax returns and failing to file a return or pay tax. According to prosecutors, Ambrosino allegedly diverted more than $800,000 in revenue from a former employer and failed to pay more than $250,000 in federal taxes.

"As alleged in the indictment, the defendant, an elected public official, defrauded his former employer and committed a variety of tax offenses," Acting United States Attorney Bridget Rohde said. "Today’s indictment is a reminder of the obvious, that public officials are not exempt from paying their fair share of taxes and otherwise complying with the laws of the United States, just like any other citizen."

According to prosecutors, Ambrosino created the Vanderbilt Consulting Group, Inc. in 2011. The prosecutors allege that, from 2013 through 2015, Ambrosino diverted legal fees that he was required to pay to the law firm for which he worked into a bank account for Vanderbilt. Among his clients were the Nassau County Industrial Development Agency and the Nassau County Local Economic Assistance Corporation, which paid him more than $1.3 million. Of that money, prosecutors say, Ambrosino allegedly deposited more than $800,000 into his bank account, rather than submitting payments to his law firm as required.

Prosecutors also allege that Ambrosino filed false and fraudulent corporate tax returns in 2011, 2012 and 2013 for Vanderbilt. Ambrosino's alleged fraudulent claims and filings resulted in him not paying $254,628 he owed the federal government in taxes.

"I believe the case revolves around Mr. Ambrosino’s tax returns that he has already amended," Ambrosino's lawyer, Dennis Lemke, told Newsday. "If he was ‘Ed Public’ rather than ‘Ed Politician,’ we wouldn’t be in this situation."

Ambrosino has been a member of the Hempstead Town Board since 2003.

"This arrest is yet another example of how corruption has infected every level of government -- and why we need stronger penalties and oversight to fight it," said state Senator Todd Kaminsky. "It is no surprise that IDAs are once again in the middle of shady deals. Prosecutors are cracking down and breaking up the old boys network that has brought corruption to epidemic levels on Long Island. Unfortunately, there are still roadblocks in Albany to real reform that would cut these problems out at the root. If politicians won't implement the necessary reforms for stronger oversight of IDAs and the tools we need to fight corruption everywhere, then voters will have the final say."

If convicted, Ambrosino faces a maximum prison sentence of 20 years for the wire fraud charge, five years for each charge of tax evasion, three years for each charge of making and subscribing to false corporate tax returns, and one year for failing to file a tax return.

Photo: Ruskin Moscou Faltischek