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MANHATTAN---A Manhattan accountant is facing grand larceny charges for stealing $4.1 million from three men's clothing companies during a four-year period.
Stephen Schor, 42, had been the accountant for Andre Romanelli, Incorporated, Andre Romanelli International, Incorporated, and Van Gils International, Incorporated from 1996 to August 2004. The three businesses, operated by the CEO and president from offices at 159 West 53rd Street, specialize in importing designer men's and boys' suits, formalwear, coats, and sportswear.
Prosecutors say that in total, the Schor stole $4,147,883 in two separate schemes. The investigation leading to the indictment revealed that from May 19, 2000 to Aug. 9, 2004, Schor allegedly funneled over $3,840,153 out of Andre Romanelli, Incorporated and Andre Romanelli International, Incorporated. Schor allegedly secretly opened an account in the name of "Andre Romanelli, Inc. c/o Stephen Schor," giving himself signature authority and having the monthly statements sent to him at his own business address located at 1560 Broadway (Schor worked with his father, a CPA).
Schor then allegedly vastly overstated the amount of company funds needed to pay taxes and fraudulently induced the victim to authorize the issuance of company checks to pay the inflated expenses, and turn over any tax refund checks to Schor. He allegedly deposited the checks and tax refund checks into his secret account, transferred the money to other private accounts he controlled, and spent it on himself.
From April 27, 2001 to Aug. 18, 2004, prosecutors say Schor engaged in a similar scheme to funnel over $307,730 out of Van Gils International, Incorporated. After secretly opening an account in the name of "Van Gils International, Inc. c/o Stephen Schor" he allegedly fraudulently inflated the amount of money needed to pay company taxes and again tricked the victim into authorizing the issuance of checks that Schor allegedly diverted and stole. Prosecutors says Schor used the stolen money to make credit card payments, loan payments, cash withdrawals, payments for a Mercedes Benz automobile, pay medical bills, car insurance, and utilities, and fund his personal business accounts.
The fraud was discovered in August 2004 when the Internal Revenue Service notified the CEO for the three companies that a $25,000 check, which had been sent to the IRS from the (secret) account "Andre Romanelli, Inc. c/o Stephen Schor," had been returned for insufficient funds. The IRS contacted this executive since there was no address listed on the face of the returned check. The victim began to investigate, discovered the other secret accounts, and referred the matter to the District Attorney's Office. 2-27-07
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© 2007 North
Country Gazette
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