Ex-staffers of homeless nonprofit indicted in alleged kickback scheme

Three men, including two former employees of a nonprofit organization serving New York City’s homeless population, have been charged in a yearslong kickback scheme that misappropriated more than $500,000 in public funds.

An indictment unsealed Nov. 21 in federal court in Brooklyn names Gary DSilva, also known as “Pankaj DSilva,” Jonathan Velazquez, and Luis A. Camarena as defendants. They face charges of conspiracy to commit wire fraud, bribery, and money laundering, among others.

The defendants were arraigned Thursday before U.S. Magistrate Judge Vera M. Scanlon.

“These defendants misappropriated public funds through a brazen kickback scheme,” said Breon Peace, U.S. Attorney for the Eastern District of New York. “When corrupt employees siphon public funds to line their own pockets, the neediest New Yorkers bear the brunt. My office will relentlessly pursue those who try to compromise the integrity of our community organizations.”

According to prosecutors, DSilva and Velazquez worked for the management information systems department of a Brooklyn-based nonprofit that operated multiple homeless shelters and other services for vulnerable New Yorkers. The nonprofit’s name was not disclosed in the indictment.

From 2017 to 2021, the two allegedly conspired with Camarena, the principal of a vendor contracted to install security cameras at the shelters.

Prosecutors allege the vendor received $1.6 million in payments from the nonprofit for security camera projects during that time, with more than $500,000 of those funds funneled back to DSilva and Velazquez as kickbacks. Payments were reportedly made to credit cards in the names of DSilva and Velazquez and their spouses, and payments were made to shell companies registered to DSilva’s spouse.

In one email obtained during the investigation, the three men allegedly discussed dividing the “profit” from the contracts awarded to Camarena’s company.

“These employees of a City-funded nonprofit participated in an illegal kickback scheme, enriching themselves by stealing from their employer, an entity providing critical services to New Yorkers in need, as alleged in the indictment,” said Jocelyn E. Strauber, commissioner of the New York City Department of Investigation.

FBI Assistant Director in Charge James E. Dennehy added, “This alleged quid pro quo agreement only enriched the involved parties and deprived the city of vital infrastructural improvements. The FBI will never tolerate corrupt individuals who selfishly steal public funds intended to support our city’s vulnerable populations.”