$600 Million Dollar Man

The New York Appellate Division for the Second Judicial Department struck from its rolls an attorney convicted of a federal offense

Pursuant to Penal Law § 190.65, a person is guilty of this crime by engaging in a scheme with intent to defraud one or more persons by false pretenses, thereby obtaining property in excess of $1,000. In the indictment filed in United States of America v Rastogi, et al, Indictment No. 02-Cr-00673 (RMB), it was alleged that the respondent and 14 codefendants conducted an elaborate scheme to secure fraudulent loans from financial institutions by creating shell corporations engaged in international metal trading. During the respondent’s plea allocution, he admitted that once he learned of the fraudulent loan agreements, he voluntarily conspired with his employers to continue the scheme. Specifically, when forensic auditors began investigating some of the loans, he provided false information to the auditors in an effort to perpetuate the fraudulent loan scheme. The respondent agreed to the forfeiture of more than $600 million in funds and was held jointly and severally liable for this amount.

The court rejected proffered mitigation

The respondent opposes the motion to strike, contending that a lesser sanction should be imposed based upon, inter alia, his sacrifice in leaving a successful law practice in Bangalore, India, to practice in New York, his integrity during the course of his criminal proceeding, and his character references.

The crime was “essentially similar” to a New York state felony. (Mike Frisch)