Assembly Speaker Sheldon Silver’s longtime pal pleaded guilty Wednesday to stealing $9 million from a top Jewish charity he headed by inflating insurance premiums over two decades.
William Rapfogel, former president and CEO of the Metropolitan Council on Jewish Poverty, copped to felony grand larceny, money laundering and tax-fraud charges in exchange for a 3 1/3- to 10-year sentence in state prison. He also must pay $3 million in restitution.
“I knowingly helped steal more than $1 million … as part of a scheme in which insurance premiums were inflated,” said Rapfogel, who appeared in Manhattan Supreme Court.
Rapfogel, who has already paid back $1.4 million to Met Council, will be sentenced July 16. He could face up to 12 years if he fails to follow the plea agreement.
The disgraced former CEO, who led the anti-poverty agency since 1992, was accused in a scheme of directing Met Council’s insurance firm, Century Coverage, to overcharge the charity and then split the proceeds from the scam with the company owner, Joseph Ross.
He also allegedly directed Ross and other employees at Century Coverage to make numerous donations to political campaigns and politicians – including the powerful Assembly speaker.
And he directed that the donations be made in small amounts to maximize the amount of “matching funds” that would come from the city.
Ross previously copped a plea to grand larceny, money laundering and tax fraud and was believed to be cooperating with prosecutors from state Attorney General Eric Schneiderman’s office.
Also Wednesday, Rapfogel’s predecessor, David Cohen, who headed Met Council until 1992, pleaded guilty to first-degree grand larceny, third-degree grand larceny and conspiracy.
Cohen can withdraw his guilty plea to the top charge, first-degree grand larceny, if he cooperates with prosecutors and pays $650,000 in restitution and will receive a year in jail time.
“If Mr. Cohen violates the agreement, he will not be able to withdraw his plea of guilty,” said Manhattan Supreme Court Justice Michael Obus, adding that he could face up to 4 1/2 years on the first-degree grand larceny charge.
His lawyer, Alan Abramson, said Cohen has already paid $500,000.
“Your Honor, today I take responsibility for my role,” mumbled Cohen, who returns to court July 9. “Over the course of two decades … I personally received $650,000 in funds and kickbacks…”