Acting U.S. Attorney Joon H. Kim announced Wednesday the former executive director of United Block Association, a nonprofit dedicated to serving senior citizen, was sentenced to four years in prison for embezzlement of more than $580,000 and defrauding mortgage of about $200,000.
Sixty-one-year-old Kwame Insaidoo and his wife, 63-year-old Roxanna Insaidoo, of Bay Shore, Long Island utilized more than $580,000 in embezzlement money for their own benefit. United Block Associated received federal and taxpayer funds through contracts with New York City. The funds were supposed to be utilized to provide programming and healthy meals to senior citizens at four facilities in Upper Manhattan, according to court documents.
Insaidoo and his wife avoided detection by laundering the money through a shell company that it had created. Both defendants utilized the money to buy a Cadillac and Mercedes Benz and pay mortgage for their property in Long Island. They also sent over $300,000 to family living abroad.
The defendants defrauded their mortgage lender by underreporting assets when applying for a mortgage loan modification. Approximately $200,000 was written off their home mortgage.
Roxanna Insaidoo was sentenced to a 30-year prison sentence for her part in the embezzlement scheme. The defendants were also ordered to forfeit $779,039.62.