LI insurance broker charged in kickback scandal

ALBANY -- Prosecutors have charged a Valley Stream insurance executive with multiple counts of money laundering, grand larceny and conspiracy in connection with an alleged kickback scandal involving the influential former leader of the Metropolitan Council on Jewish Poverty.

Joseph Ross, a principal of Century Coverage Corp., benefitted by more than $1 million in the bribery scheme, according to charges filed by state Attorney General Eric Schneiderman.

Ross is a key player in the alleged scandal that centers on former Met Council CEO William Rapfogel, a longtime Manhattan power broker with ties to Assembly Speaker Sheldon Silver (D-Manhattan).

Earlier this fall, Schneiderman charged Rapfogel with multiple counts of conspiracy, money laundering, grand larceny and criminal tax fraud. Prosecutors said Rapfogel conspired with Ross and at least one other person for more than 20 years to overcharge the cost of insurance policies that Century Coverage obtained for Met Council and pocketing the difference between the inflated price and the actual price.

Rapfogel allegedly pocketed more than $1 million. Rapfogel has pleaded not guilty.

Ross was arraigned late Wednesday in Manhattan on similar charges, officials said, and has pleaded not guilty. The criminal complaint filed by Schneiderman alleges Ross "admits he received in excess of $1 million in proceeds from the scheme from in or around 1993 to in or around August 2013."

The charges go on to say Ross deposited checks from Met Council in Century's bank account, then paid "cash kickbacks to himself and the other co-conspirators involved in the larceny scheme."

Some of the kickback money was channeled into political campaign contributions, according to the charges. Ross allegedly "delivered checks for political contributions to Rapfogel, who in turn gave the checks to the various politicians and political organizations," prosecutors said. They noted that Century owners and employers contributed $120,000 to New York City candidates from the mid 1990s to 2013.

The charges also said a greater amount was stolen during the scandal than previously estimated.

Schneiderman's office says the total is at least $7 million, up from $5 million when news of the investigation first broke.

Ross couldn't be reached for comment late Thursday. An assistant to Benjamin Brafman, Ross' attorney, sent an email saying in part that "we intend to address these issues in a responsible manner." Ross was released on his own recognizance without bail, Brafman said.

Rapfogel's wife, Judy, is Silver's longtime chief of staff. Rapfogel has said he's known Silver for more than 40 years, dating to when the powerful politician was his youth basketball coach.