Source: Office of United States Attorneys
Jay Clayton, the United States Attorney for the Southern District of New York, and Harry T. Chavis, Jr., the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced today that DENNIS OSTERMANN, a former Sergeant with the New York City Police Department (“NYPD”), pled guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. income tax return. OSTERMANN pled guilty today before U.S. Magistrate District Judge Ona T. Wang. The case is assigned to U.S. District Judge Lorna G. Schofield.
“At the direction of a senior union official, Ostermann reported payments as ‘legal fees’ when they were not,” said U.S. Attorney Jay Clayton. “We all share the responsibility for reporting income and expenses accurately on our tax returns, and no rank or position exempts any person or organization from these obligations.”
IRS-CI Special Agent in Charge Harry T. Chavis, Jr. said: “Ostermann misrepresented the movement of funds, lied on his taxes and betrayed the confidence of union members. He violated the trust of his position as controller for a law enforcement union and as a return preparer. With today’s guilty plea, Ostermann is now taking responsibility for his criminal acts, and he will now face the consequences.”
According to the allegations contained in the Information and statements made in public filings and in public court proceedings:
OSTERMANN served as Controller of a union that represents all current and former sergeants of the NYPD (the “Union”). OSTERMANN also served as a partner of HB Consultants Inc. (“HBC”).
In 2018 and 2019, OSTERMANN paid $150,000 from HBC’s bank account to a third party on behalf of the former President of the Union. OSTERMANN then prepared HBC’s U.S. income tax returns, and falsely reported that the $150,000 payment was for legal fees. This false information not only disguised that OSTERMANN had used HBC-funds to make payments on behalf of the former President of the Union, but also fraudulently reduced the tax liability of HBC and its partners, including OSTERMANN.
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OSTERMANN, 68, of East Rockaway, New York, pled guilty to one count of aiding and assisting in the preparation of a false and fraudulent U.S. income tax return, which carries a maximum sentence of three years in prison. OSTERMANN is scheduled to be sentenced by Judge Schofield on August 29, 2025.
The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the outstanding work of the IRS-CI and Federal Bureau of Investigation.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Alexandra Rothman is in charge of the prosecution.