Former NYPD Sergeant and union controller Dennis Ostermann entered a guilty plea for his role in filing a false tax return. As reported by the U.S. Attorney's Office for the Southern District of New York, Ostermann admitted to misrepresenting payments amounting to $150,000 as "legal fees" on behalf of the union's ex-president. The Justice Department explained that these actions were aimed at reducing tax liabilities unlawfully.
U.S. Attorney Jay Clayton emphasized that all individuals are subject to these obligations, stating that no rank or position exempts any person or organization. According to the admission made by Ostermann in court, he had utilized funds from HB Consultants Inc., where he was a partner, to make payments which he falsely reported on tax documents. This not only concealed the fund's true destination but also unfairly reduced the tax burden for himself and the company.
Special Agent in Charge of IRS-CI, Harry T. Chavis, Jr., indicated betrayal by Ostermann, who "misrepresented the movement of funds, lied on his taxes and betrayed the confidence of union members." Chavis stated in the press release, "With today’s guilty plea, Ostermann is now taking responsibility for his criminal acts, and he will now face the consequences. This follows a prompt response to an individual who held a position of trust, both within the law enforcement community and in financial oversight as the controller of a major union.
Ostermann, 68, faces up to three years in prison for his charge. His sentencing is currently set for August 29. The case is being handled by Assistant U.S. Attorney Alexandra Rothman as part of the Public Corruption Unit’s ongoing efforts to enforce compliance with legal and ethical standards.
