A Manhattan-based garment wholesaler from Great Neck stole more than $800,000 from lenders using fake or altered invoices, Manhattan prosecutors said Wednesday.
Payman Kafash, also known as Peter Kafash, 42, is charged in New York State Supreme Court with one count each of second-degree grand larceny and first-degree scheme to defraud and 75 counts of first-degree falsifying business records, according to a news release from Manhattan District Attorney Cyrus R. Vance Jr.
According to the indictment and court documents, between April 2006 and May 2010, Kafash, a midtown wholesaler of garments, turned in fake or altered invoices to several factoring companies "in order to receive cash advances on the customer invoices due to his company, Modeani Group Ltd., and family-owned companies he operates, including Beinoni of NY Inc. and Bapaz Garments Corp.," the release said.
A factoring company, the release said, purchases accounts receivables from a business at discount rates and, over time, collects the full invoice amount.
After advancing Kafash cash, lenders later discovered that many of the submitted invoices were either fake or overbilled, the release said.
In that span, Kafash "allegedly stole more than $800,000 from Coface Credit Management North America Inc. by selling the company fake and overbilled invoices, and by selling invoices also sold to another lender," the release said.
As part of the scheme, Kafash provided false financial statements and filed false claims with a company that insured the invoices.