John J. Burke and Vivian Burke - Page 5

            Insurance Agencies to cash checks and deliver the cash to him.  He would                    
            usually instruct Ms. Romano to transfer funds from the MPC premium account to               
            one of the Burke Insurance Agencies' expense accounts.  She would then write a              
            check that was drawn on one of these expense accounts made payable to an                    
            employee of the Burke Insurance Agencies, John J. Burke, or "cash".  Checks                 
            payable to employees were cashed by the employee who would deliver the cash to              
            Mr. Burke or a person designated by him.  When Mr. Burke needed funds in                    
            excess of $10,000, he would usually instruct Ms. Romano to write multiple                   
            checks in smaller amounts so that a currency transaction report would not be                
            generated by the bank.  On some occasions, Mr. Burke ordered checks to be made              
            payable to a bookmaker with whom Mr. Burke gambled.  On several occasions, Mr.              
            Burke instructed Ms. Romano to write a check payable to Don Balsamo who                     
            supplied Mr. Burke with cocaine.  On other occasions, Mr. Burke directed Ms.                
            Romano to transfer funds to Ard Rhei.  Pursuant to Mr. Burke's instructions,                
            Ms. Romano falsely characterized these withdrawals from the Burke Insurance                 
            Agencies' accounts as expenses, commissions, or premium refunds.                            
                  At some point, Kenneth S. Silver, the accountant for the Burke Insurance              
            Agencies caused Forms 1099 to be issued to employees to whom checks were                    
            issued in order to obtain cash for Mr. Burke.  Upon realizing this, Mr. Burke               
            had the Forms 1099 withdrawn.                                                               
                  On some occasions, checks were drawn directly on the MPC account and                  
            either cashed, made payable to Ard Rhei, or paid to Mr. Burke's bookmaker.                  
            The proceeds of cashed checks, which were drawn on the MPC premium account,                 
            were delivered to Mr. Burke.  Ms. Romano withdrew funds from the MPC premium                
            account and the Burke Insurance Agencies' expense accounts only when                        
            instructed to do so by Mr. Burke.                                                           
                  During 1986 and 1987, the following amounts were withdrawn from the MPC               
            premium account by checks payable to the following payees:                                  









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