NYPD Internal Affairs Detective Arrested

Rice says Nelson falsified bankruptcy documents and tax filings for ’02 & ’03, cheating NYS out of thousands

MINEOLA, NY - Nassau County District Attorney Kathleen Rice announced today that Leroy Nelson, 47, was arrested and charged with two counts of Offering a False Instrument for Filing in the First Degree, a Class E Felony, Scheme to Defraud in the First Degree, a Class E Felony, and two counts of Filing a False Return, a Class A Misdemeanor.  Mr. Nelson surrendered to the Nassau County District Attorney’s Office yesterday. 

“Cheating the system won’t be tolerated here in Nassau County,” said District Attorney Rice.  “When someone is cheating the system the money needs to be made up, either in cuts in government service or a raise in taxes for those who work hard and play by the rules.”

It is alleged that beginning in 2001, Mr. Nelson participated in a scheme with two other individuals, one of whom owed the NYS Department of Taxation over $200,000 in taxes. In order to help the tax delinquent "hide" property from the NYS tax authorities, Mr. Nelson became the "straw" buyer and owner of a house located at 237 Miller Avenue, Freeport, where the tax delinquent lived and is believed to still be living. Nelson thus became the titled owner of the property. Mr. Nelson lived there for a mere six months before moving out.  At the same time, in 2003, despite the fact that title to the Freeport house was in his name, Mr. Nelson filed for bankruptcy in the Eastern District of New York, stating that he owned no real property, thereby making a false statement to the bankruptcy court.

Despite having the title to the house in his name, and declaring mortgage interest as a deduction on his yearly New York State income tax returns, the mortgage payments on the Freeport house were paid by Mr. Nelson’s co-conspirators.  Mr. Nelson’s tax filings for the year 2002 include deductions for mortgage interest in the amount of $14,980 and $14,642 for the year 2003.  This false interest information led Mr. Nelson to receive in excess of $1,000 more in tax refunds each year from New York State.  Similar information in Mr. Nelson’s 2004 NYS income tax return remains under investigation.

Mr. Nelson has been employed by the New York Police Department for more than 18 years and is currently a detective assigned to the Internal Affairs Bureau.  

A person is guilty of offering a false instrument for filing in the first degree when, knowing that a written instrument contains a false statement or false information, and with intent to defraud the state or any political subdivision, public authority or public benefit corporation of the state, he offers or presents it to a public office, public servant, public authority or public benefit corporation with the knowledge or belief that it will be filed with, registered or recorded in or otherwise become part of the records of such public office, public servant, public authority or public benefit corporation.  (PL §175.35) 

A person is guilty of scheme to defraud in the first degree when he engages in a scheme constituting a systematic ongoing course of conduct with intent to defraud more than one person or to obtain property from more than one person by false or fraudulent pretenses, representations or promises, and so obtains property with a value in excess of one thousand dollars from one or more such person (PL §190.65)

New York State Commissioner of Taxation and Finance Andrew S. Eristoff said, "The Tax Department extends its appreciation to District Attorney Kathleen Rice for her diligence in prosecuting tax fraud cases.  What makes this case particularly egregious is that it involved individuals who enjoyed the public trust, collected taxpayer funded paychecks and who betrayed their responsibility.”

The defendant has been arraigned in First District Court, Hempstead and was released without bail.  ADA Kristen Fexas of the Economic Crimes Bureau will be handling the case.  Mr. Nelson is being represented by Peter Brill. 

District Attorney Rice would like to thank the New York State Department of Taxation and Finance, Office of Inspector General, and New York Police Department Internal Affairs Bureau for their involvement and cooperation in this investigation. 

The charges are merely accusations, and the defendant is presumed innocent until and unless proven guilty.

Name: Leroy S. Nelson
Age: 46
Address: Lists PO Box in Floral Park as return address with NYS
Charges: Offering a False Instrument for Filing 1° (2 counts), Scheme to Defraud 1°, and Filing a False Return (2 counts)