Brooklyn man Menachem "Max" Lieberman has been hit with a 52-month prison sentence for orchestrating fraud schemes that siphoned millions from federal childcare programs. According to a press release from the United States Attorney's Office for the Southern District of New York, Lieberman's criminal activities exploited funding meant to support low-income families’ access to childcare services.
"Max Lieberman defrauded federal childcare programs that provide vital services to our most innocent and vulnerable," U.S. Attorney Jay Clayton stated. The deceit ran from 2019 to January 2023, involving a non-profit named Project Social Care Head Start Inc. (PSCHS), which Lieberman secretly controlled. Despite non-profits being legally barred from private ownership, Lieberman paid $4.7 million to gain "ownership" of PSCHS, funneling the nonprofit's Head Start money to his profitable ventures, as per the U.S. Attorney's Office.
Lieberman not only misrepresented the independence of PSCHS's board to the Department of Health and Human Services but also submitted false testimony to obstruct the department's oversights. In a separate scheme, he duped the New York City Administration for Children’s Services (ACS) with falsified signatures and notarizations, resulting in over $1.8 million in unmerited funds for a non-existent childcare program.
In addition to prison time, the 48-year-old from Brooklyn must face three years of supervised release, and he's been ordered to pay hefty sums in fines and restitution—totalling over $1.8 million to ACS, and forfeiting a nearly identical amount. Acknowledgment for cracking the case goes to the collaborative efforts of various agencies including the FBI and IRS-Criminal Investigation, as noted by Mr. Clayton.
The prosecution of Lieberman's fraud was managed by the Office’s Public Corruption Unit with Assistant U.S. Attorneys Daniel H. Wolf, Catherine Ghosh, Jacob R. Fiddelman, and Stephanie Simon at the helm, supported by Paralegal Specialist Nandita Vasantha.
