New York, NY - Architect and Floor Distributor Charged for Demanding Kickbacks

New York, NY - An architect, accused of demanding kickbacks from contractors and others in exchange for work, and a flooring distributor were arrested, for larceny and bribery charges.

Prosecutors said John Passaretti of the Kurland Passaretti Group (KPG) and a distributor from flooring company carried out the scheme on at least seven commercial projects in which KPG was the architect, collecting more than $300,000 in kickbacks. Almost all of the kickbacks providers gave the architects were paid by the clients in inflated bills.

Passaretti, 49, of Oradell, N.J., and the distributor 47, of Monroe, N.Y., surrendered to Morgenthau's office, and they are charged with second- and third-degree grand larceny, commercial bribe receiving, money laundering, restraint of trade and falsifying business records.

The Manhattan-based KPG used the distributor and his flooring company in Brooklyn on most of the architects' projects to facilitate the scheme, Morgenthau said. He said contractors were told to inflate purchase orders on Millennium's work and pay the inflated cost, or to issue checks to flooring company for work that was never done.

Morgenthau said neither flooring company nor the distributor had filed city state or federal taxes for the past six years.