NY Businessman Guilty in Miami-Dade Kickback Scheme

The co-founder of a New York computer services company has pleaded guilty to participating in an illegal kickback scheme in South Florida.

Court records show Paul Raifaizen of Great Neck, New York, pleaded guilty last week in Miami federal court to filing a false tax return in connection with the scheme. Raifaizen faces up to three years in prison and a $250,000 fine at sentencing May 1.

Raifaizen's company, Data Industries, provided information technology to Miami-Dade County between 1998 and 2012. Prosecutors say Raifaizen paid a county employee kickbacks in exchange for approval of consulting work that was never performed.

The Internal Revenue Service says Raifaizen failed to pay up to $400,000 in income taxes from the scam. The employee, Jesus Pons, pleaded guilty and got a four-year prison sentence.

Copyright AP - Associated Press
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