Thursday, January 28, 2016

NBC NEWS: Long Island Man Sentenced to 15 Years in Prison for $35M Fraud

A Long Island man was sentenced Thursday to 15 years in prison for a $35 million fraud that a judge said wrecked investors' lives.
Mikhail Zemlyansky, 39, was led out of a Manhattan courtroom in shackles after U.S. District Judge J. Paul Oetken sentenced the Hewlett resident a year after a jury convicted him of racketeering conspiracy and other charges at a monthlong trial.
U.S. District Judge J. Paul Oetken called him "sophisticated, deliberate and premeditated" as he carried out frauds that prosecutors said stretched from 2007 through 2012 .
The judge said Zemlyansky spent millions of dollars from investors' on vacations and fancy cars and watches.
Oetken called him "sophisticated, deliberate and premeditated" as he carried out frauds that prosecutors said stretched from 2007 through 2012.

Assistant US Attorney Daniel Goldman addresses Judge Oetken. Mikhail Zemlyansky,seated right. 
Assistant US Attorney Daniel Goldman said Zemlyansky and co-conspirators transferred millions of dollars from investors overseas to shell companies in Eastern Europe, where money was converted into cash and returned to the United States
They said Zemlyansky defrauded car insurance companies of hundreds of millions of dollars by creating and operating medical clinics that provided unnecessary or excessive medical treatments to take advantage of a no-fault insurance law that requires prompt payment for medical treatment.
In court papers, prosecutors said Zemlyansky lived a lavish life, spoiling himself with $100,000 luxury cars and $50,000 watches.
Oetken ordered Zemlyansky to pay a $50,000 fine and $29.5 million restitution.
Becker had asked that his client be sentenced to five years in prison, saying a day more would be excessive. Prosecutors had requested that he be sentenced to prison for well over 25 years, the length of time the Probation Department had recommended.

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