NYC Tax Assessor Scandal Involves Le Parker Meridien Hotel

NEW YORK— As a result of a 35-year bribery scheme that resulted in the undervaluing of commercial properties for the purpose of gaining illegal tax breaks, taxes on such well-known commercial Manhattan properties as 1 United Nations Plaza, the Le Parker Meridien Hotel and 9 W. 57th St., which has a huge red sculpture “9” in its plaza, were reduced illegally. More than one-third of the current 36-member Manhattan tax assessor staff was implicated, according to a report today on abcnews.com. Sixteen Big Apple tax assessors and two property owners, both former assessors, have been indicted on racketeering, bribery and fraud charges, and 17 more people were arrested Monday, with an additional defendant was expected to surrender Tuesday on charges of taking or giving more than $10 million in bribes to alter the assessed values of commercial properties. The indictment sought the forfeiture of the lost revenues— including lost tax revenues estimated at $160 million since 1997— and an additional $10 million allegedly obtained through bribes. The indictment, filed in U.S. District Court in Manhattan, accused the assessors of accepting bribes for at least 35 years to alter the assessed values of more than 500 properties worth a total of $8 billion. Keith Schwam, a spokesman for the city Department of Investigation, said the corruption may lead to reassessments of 500 properties and a “broad review” extending to other properties. Of the 16 assessors indicted, 13 currently work in the Manhattan assessors office; one is retired; and two others currently work in other boroughs. Investigators learned of the scheme in early 2000 during the prosecution of someone involved in the plot. Authorities said two individuals accused in the indictment of paying bribes to tax assessors included Albert Schussler, 85, a major property manager, owner and former long-time assessor who allegedly engaged in the plot since 1967. SOURCE: abcnews.com