Nypd Officer Involved in Federal Financial Fraud Probe, Including Possible Money Laundering, Accepting Gifts

By John Annese, John Marzulli, Rocco Parascandola
New York Daily News
April 5, 2016

http://www.nydailynews.com/new-york/nyc-crime/exclusive-nypd-involved-money-laundering-probe-article-1.2588702

An NYPD officer tangled in the snare of a federal probe has been put on modified duty and stripped of his badge and gun, the Daily News has learned.

Michael Milici, a longtime community affairs detective in the 66th Precinct, was placed on restricted detail after he refused to answer questions from a grand jury, sources said Monday.

The trouble began when the feds launched a financial fraud inquiry within the NYPD. It grew out of an earlier probe by the FBI and the Manhattan U.S. Attorney’s Office that involved fraud and possible money laundering, sources said.

Now investigators are also trying to determine if some NYPD officers accepted gifts from Jewish community leaders — including a Borough Park activist with close ties to city officials, sources told The News.

Some officers were suspected of doing favors for at least two prominent local businessmen — including providing police escorts for Jewish funerals.

The cops might have received gifts, like paid vacations, in return, sources said. Under NYPD rules, officers are not permitted to accept free meals, much less vacations.

A number of NYPD brass have been interviewed. Additionally, a former chief appears to be part of the investigation, as well as another retired NYPD supervisor with ties to the 66th Precinct.

Roy Richter, head of the Captains Endowment Association, said he knew of a federal investigation that focused on a member of the Orthodox community.

“A number of my members have been interviewed by federal investigators. All of them fully cooperated and were told they were not the targets or subjects of the investigation,” the union leader said.

The probe into illicit favor trading was sparked by a comment caught on a wiretap by a Jewish businessman, who was under investigation for something entirely different, sources said.

Sources said the feds suspect he gave gifts to cops and bought meals for at least some of them.

Milici’s lawyer said he and his client were in the dark about the feds’ investigation.

“He asserted the Fifth to the grand jury completely,” attorney Patrick Parrotta said of Milici.

“We don’t know exactly what their theory is ... we don’t know what’s on their minds, he said.

Asked if his client had taken any gifts, Parrotta had an immediate adamant response.

“No, of course not,” he said.