Manhattan District Attorney Robert M. Morgenthau announced today the indictment and arrest of VINCENT GRIMALDI, and JAMES CUNNINGHAM and the indictment of V&V CHECK CASHING CORP (“V&V”). V&V is owned by Grimaldi, Cunningham and a third person, who has not been charged. 

GRIMALDI, who had previously owned a construction company, used his personal and professional connection with the owner of a general contractor to introduce subcontractors.  For the introduction, GRIMALDI required a fee, sometimes as much as five-percent of the contract price. 

However, once the subcontractor had fulfilled the initial contract, GRIMALDI insisted that he be paid the same fee on all future contracts between the subcontractor and the general contractor, even though he did nothing to get the subcontractor those jobs. 

One such company was a drywall/carpentry firm. Between 2002 and 2006, this subcontractor paid GRIMALDI $516,194.00 for work they received from the general contractor.  Even after the two owners of the drywall firm split up and formed their own companies in 2006, GRIMALDI insisted that neither could work for the general contractor unless each paid GRIMALDI his “fee” for having made the initial introduction years before. 

Another company that received work as a result of GRIMALDI’S introduction was an electrical subcontractor.  This subcontractor paid Grimaldi $80,000 for its contracts with the general contractor.

To facilitate his payments from both subcontractors, GRIMALDI got the general contractor to pay him $90,000 directly; $30,000 was money the general contractor owed to the drywall subcontractor, $60,000 was an advance for money owed to GRIMALDI by the electrical subcontractor. 

As part of his scheme, GRIMALDI laundered the money he received from some of the contractors.  GRIMALDI required that the subcontractors pay him by making checks out to suppliers commonly used in the construction industry, even though the suppliers had nothing to do with the jobs.  These checks were then falsely listed as materials in the books and records of the subcontractors.  GRIMALDI would take the checks made out to suppliers to V&V to be cashed and would fraudulently endorse the back of the checks.   Additionally, CUNNINGHAM would not file the federally required currency transaction reports (“CTR’s”) in connection with these checks.  Furthermore, CUNNINGHAM advised GRIMALDI to have the checks issued in amounts less than $10,000 so as not to trigger the CTR reporting requirement.

The New York State Banking Department requires that check cashing establishments submit paperwork annually, including a listing of all of the owners of check cashers.  V&V’s submissions in 2004 and 2006 failed to disclose that CUNNINGHAM was a one-third owner of the corporation (the 2005 filing could not be found).

Finally, GRIMALDI is charged with tax crimes.  GRIMALDI falsified his New York State tax returns from 2002 through 2005 by not reporting $1,408,000 in income; he failed to file any tax return in 2006.   V&V and CUNNINGHAM have been charged as accomplices for these crimes.
           
Specifically, the twenty-six count indictment charges GRIMALDI with ten counts of Criminal Possession of a Forged Instrument in the Second Degree, four counts of Falsifying Business Records in the First Degree, and Failure to File.  The indictment further charges GRIMALDI, CUNNINGHAM, and V&V with four counts of Offering a False Instrument for Filing in the First Degree, GRIMALDI and V&V with four counts of Filing a false Personal Tax Return, CUNNINGHAM and V&V with one count of Criminal Facilitation and V&V with two counts of Offering a false Instrument for Filing.

Mr. Morgenthau thanked the New York State Police for their assistance in the investigation, including Superintendent Harry J. Corbitt, and lead Investigator Gary Titus, who was supervised by Senior Investigator Gus Talleur. Mr. Morgenthau also thanks the New York State Banking Department and Superintendent Richard H. Neiman for their assistance.

Assistant District Attorneys Elyse Ruzow and Jean Marie Donohue, who are both assigned to the District Attorney’s Labor Racketeering Unit, are in charge of the prosecution, under the supervision of Michael Scotto, Chief of the Labor Racketeering Unit.  Senior Financial Investigator William Tamparo also participated in the investigation.

 

VINCENT GRIMALDI
D.O.B. 1/07/50
315 West 57th Street
New York, N.Y.

JAMES CUNNINGHAM
D.O.B. 1/1/46
4 Redway Road
Ossining, N.Y.

V&V CHECK CASHING
620-A Castle Hill Avenue
Bronx, N.Y.
and
125 Mamaroneck
White Plains, N.Y.

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