AM 1480 WLEA News

October 12, 2023

From U.S. Attorney Ross: ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Kenyatta Phipps, 47, of Rochester, NY, who was convicted of wire fraud, was sentenced to serve 24 months in prison and pay restitution totaling $376,747.23 by U.S. District Judge Frank P. Geraci, Jr.

Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that in February 2020, Phipps filed a federal income tax return for the tax year 2019, reporting wages and interest income of $13,273.00, which resulted in a refund of $696. In August 2020, Phipps attempted four times to file a second 2019 federal income tax return on which he falsely reported additional income he earned in the amount of $333,522 from a company he operated called Platinum Express Cleaning. If the returns were accepted Phipps would have received a fraudulent tax refund of $164,951. After all four attempts were rejected by the IRS, in September 2020, Phipps filed a fraudulent amended federal income tax return for the year 2019, which was accepted by the IRS. In the fraudulent return, Phipps falsely reported that Platinum Express Cleaning received gross receipts of $455,734 from Eastman Kodak Company and had taxes withheld from such income of more than $355,000. This resulted in Phipps receiving a fraudulent tax refund and tax loss to the IRS of $186,570.

In addition to defrauding the IRS, Phipps used information from the false tax returns to submit three fraudulent loan applications in the name of Platinum Express Cleaning to the Small Business Administration (SBA) in attempts to obtain COVID relief funding through the Economic Injury Disaster Loans (EIDL) program provided by the 2020 CARES Act. Phipps also falsely stated on the EIDL loan applications that Platinum Express Cleaning had more than 120 employees which would have qualified his company for $573,200 on EIDL program loans. Prior to funding the EIDLs program loans, the SBA discovered the fraudulent loan applications and did not fund the loans.

The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso.

August 31, 2023

The U.S. Attorneys Office is going after a man living in Rochester for allegedly sinking his own boat…no one was on the boat at the time, but the cost to the Coast Guard was over $15,000. The charges against the man: destruction of a vessel, making a false statement and sinking of a vessel in a navigable channel. The suspect is 33 years old.

See full press release below:

BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Vyacheslav S. Migitskiy, 33, a Ukrainian national living in Rochester, NY, was arrested and charged by criminal complaint with destruction of a vessel, making a false statement, and sinking of a vessel in a navigable channel. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.

Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on August 26, 2022, the U.S. Coast Guard received a report from a local mariner of a partially submerged vessel, a 1987 25’ Bayliner, approximately a half mile offshore east of Little Pond in Rochester. A Coast Guard small boat responded to the area and an active search and rescue mission began. It was determined that no individuals were on vessel. It was also determined that the propellers and boat plug were missing, and all electronics were removed from the vessel. The total estimated loss of the United States Coast Guard’s search and rescue efforts was $14,194, and the New York State Police rescue helicopter cost recovery was $1,248.00.

Subsequent investigation traced the vessel to Migitskiy, who claimed that he had given the vessel to unknown individuals two weeks prior. According to the complaint, a witness, and a review of surveillance video show Migitskiy placing the vessel in the water, and then using a different boat that he owned to tow the vessel out into the lake, where it was later discovered.

Migitskiy made an initial appearance today before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions.

The complaint is the result of an investigation by the Coast Guard Investigative Service, under the direction of Joshua Packer, Acting Special Agent-in-Charge, Central Region, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the New York State Police, under the direction of Major Brian Ratajczak, and the Gates Police Department, under the direction of Chief Robert Long, the Rochester Fire Department, under the direction of Chief Stefano Napolitano, the Irondequoit Police Department, under the direction of Chief Scott Peters, and the Greece Police Department, under the direction of Chief Michael Wood.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.