Originally Posted - July 21, 2006

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MANHATTAN---The vice president of Cipriani USA has been indicted on charges of defrauding insurance companies of over $1 million in an insurance fraud scam and stealing over $90,000 from the Social Security Administration.

Dennis Pappas, 59, residing at 55 West 26th Street in Manhattan, began working for the Cipriani companies in 2000, eventually becoming VP of Cipriani, USA, and manager of other Cipriani companies. The Cipriani companies own and operate numerous restaurants and banquet facilities worldwide; in New York, Cipriani operates the Rainbow Room at 30 Rockefeller Plaza, Harry Cipriani at 781 Fifth Avenue, Downtown Cipriani at 376 West Broadway, Cipriani at 55 Wall Street, the Toy Building at 200 5th Avenue, Dolci at Grand Central Station and Cipriani 42nd Street at 110 East 42nd Street.

The indictment charges that Pappas applied for and received disability insurance payments from three insurance companies, Custom Disability Solutions, Cigna Life Insurance Company of New York and MetLife Insurance Company, while he was working for Cipriani. Pappas defrauded Custom Disability Solutions of over $1.086 million; Cigna Life Insurance Company of New York of over $290,000 and MetLife Insurance Company of over $180,000, according to the Manhattan district attorney's office.

The indictment charges that from June 2000 through July 2006, Pappas alleged that he was disabled and could not work. In fact, Pappas was not disabled and was actively involved in Cipriani businesses. While receiving disability payments from the insurance companies Pappas also received payments totaling over $891,855 from Cipriani for his work. Those payments included the use of an apartment which rents for $5,750 per month and a Humvee that Pappas used to drive to and from work in Manhattan. Additionally, during this period of time, Pappas concealed his employment at Cipriani from the Social Security Administration and fraudulently received Social Security disability benefits.

Pappas is also charged with falsifying an application for a cabaret license with the New York City Department of Consumer Affairs. Prosecutors said Pappas lied about his prior conviction record in filing for the cabaret license for the Rainbow Room facility. The application was filed with the Department of Consumer Affairs on Jan. 21, 2005. In 1998, Pappas was convicted in the Eastern District of New York on income tax evasion and RICO charges stemming from an extortion and pension fraud scam. He was sentenced to 46 months in prison with 5 years supervised release, ordered to pay $1.5 million in restitution and a $250,000 fine.

Pappas has been charged with first degree insurance fraud, a class B felony, which is punishable by up to 25 years in prison; second degree insurance fraud and second degree grand larceny, class C felonies, which are punishable by up to 15 years in prison; and offering a false instrument for Filing, a class E felony, which is punishable by up to four years in prison. 7-21-06

© 2006 North Country Gazette