Sam Zherka: Did he actually get sued for fraud? Let’s Find Out (New 2023 Update)
I want to share the story of another fraudster on this site today: Sam Zherka .
In the following points, you’ll learn how this criminal operated his fraudulent scheme and what happened to him afterwards:
What’s the case story of Sam Zherka?
Judge Cathy Seibel of the U.S. District Court remarked to Selim “Sam” Zherka on Tuesday that he appeared to be two distinct individuals: a mobster and an honorable man.
Sam Zherka was given a sentence of 37 months in custody on Tuesday for charges of fraud, so the two parts of him will be pent up together for a lot longer.
After his release from prison, the 48-year-old will be placed under supervision for three years. In addition to the $5.23 million he agreed to give away as part of his plea agreement, he was also given a $1.5 million fine. He now owes the federal, state, and local governments, as well as New York, Connecticut, and Massachusetts, more than $1.2 million in overdue taxes, interest, and penalties.
After admitting to conspiring to file significantly inflated returns for taxes with the IRS and to lying to a bank, Sam Zherka was sentenced just about four months after his admission.
The accusations leveled against Sam Zherka, an author, owner of a strip club, and political functioning, were related to industrial real estate as well as other economic ventures. Since his arrest in September 2014 and the denial of bail, the father of eight has been imprisoned.
Frederick Hafetz, Zherka’s lawyer, expressed disappointment about the sentence’s length in a statement made later.
Seibel had been urged by the prosecution not to pardon Sam Zherka, who might spend up to five years in jail. His lawyers requested a sentence of 20 months in jail, pointing out the difficult conditions he had already experienced while being imprisoned at the Metropolitan Correctional Center in Manhattan.
Seibel chose the middle ground, stating that both sides had strong cases for their positions.
She praised Sam Zherka, who was backed by roughly two dozen relatives and friends in the crowded courtroom, saying, “He is clearly a hard-working man.”
Sam Zherka expressed regret and stated he was humiliated. He pleaded with Seibel to take into account his positive deeds as well.
People frequently wrote to Seibel to express their gratitude for Zherka’s generosity, which included assisting his parents and siblings with their move to the United States from the former Yugoslavia.
It’s a success story for America, she remarked.
That is why, in Seibel’s words, it is unfortunate that Sam Zherka didn’t run his business honestly and instead committed a “breathtaking string of lies.”
The plan was “really quite cunning and brilliant,” according to assistant US attorney Elliott Jacobson.
How did Sam Zherka Run His Fraudulent Scheme?
The plan started in December 2005 when Zherka and his associates wanted to fraudulently buy or refinance Tennessee apartment buildings. Zherka and four other individuals, who had all previously entered guilty pleas to charges linked to this case, plotted to misrepresent the purchase price and a down payment of the property in order to get $63.5 million in loans from Sovereign Bank, now known as Santander.
Additionally, Zherka submitted false tax forms that inflated his capital gains and undervalued his depreciation expenses in order to lower his tax obligations.
Selim “Sam” Zherka, a contentious publisher, owner of a strip club, and political operative, has admitted guilt to accusations relating to his economic endeavors, including his involvement in commercial real estate.
Zherka’s prior bail requests were turned down on the grounds that she posed a risk to the public if she were released and might flee the country. Seibel initially rejected his request for bail in October 2014, stating that he had “shown contempt for the legal system” by repeatedly impeding investigators and threatening witnesses.
With his guilty plea, Selim Zherka has now admitted to what we have been claiming all along that he engaged in a years-long campaign of lying to a bank and the IRS in order to obtain millions of dollars in loans and falsely lower his tax obligations,” said U.S. Attorney Preet Bharara.
The accusations against Zherka originate from a conspiracy that began in December 2005, in which he cooperated with four other individuals—all of whom had previously entered guilty pleas to crimes associated with it—to buy or refinance Tennessee apartment buildings through deception, according to officials.
Sam Zherka: Case History
Plaintiff Selim “Sam” ZHERKA versus Merrick Defendant is B. GARLAND, the Attorney General acting in his official position.
Sam Zherka: A brief account of his violent past
Phil Reisman, a columnist for The Journal News, is the author of this piece.
Sam Zherka played the part of a well-funded political provocateur for nearly ten years as he paraded about the Westchester scene dressed in leisure gym attire.
The politicians in Westchester were unsure of how to view him. They appeared to be confused by him. He was courted by several who stole his money. Others attempted to restrain him but were utterly unable. A few people made the mistake of attempting to include him in the group.
They were only made fun of by him in court and in The Westchester Guardian, his weekly publication.
He once referred to him as a chaos agent. However, federal prosecutors are painting a much worse picture of him because they want to jail him for allegedly falsifying loan applications to secure $146 million in bank loans.
They assert in a 24-page court affidavit that Zherka, 46, “is physically violent” and a “habitual liar.” They describe him as “a danger to the community at large.”
The feds claim, citing unnamed sources, that his extracurricular activities have included extortion and the sale and distribution of drugs. They described his claimed escapades on page 6 of the document, under the heading “Zherka’s Boasts of Involvement in Violence.”
In the basement of one of his Manhattan strip clubs, Vertigo, a dead man was once discovered strapped to a chair. The prosecutors claim that when he called his brother Ali, Ali informed him that he had “roughed up someone.” According to the prosecution, Zherka gave his brother instructions to remove the body.
According to the feds, Zherka is more violent and tough than Mafiosi. Members of an organized crime family allegedly requested protection money at the VIP Club, another one of his topless hangouts. Since he was willing to die to prevent them from gaining it, Zherka allegedly inquired if they would die for the chance to take his money.
Prosecutors claimed that Zherka and his companions then assaulted the men after stripping them of their clothing.
When his daughter introduced him to an African-American guy she was dating, Zherka allegedly waited until she left the room before pointing a shotgun in the man’s direction and threatening to “blow his (expletive) head off” if he didn’t back off. The affidavit also states that.
As more evidence of Zherka’s aggressive proclivities, prosecutors also brought up the case of a man named Robert S. Ryan, who ran a nightclub on West 20th Street.
The documents state that on April 12, 1996, Ryan was challenged by Zherka and his brother in the club’s basement office, where “(t)hey repeatedly struck Ryan in the head until he bled, punched him in the ribs, pulled him by the hair, and finally threw him into a bathroom.”
In his testimony before the court, Ryan said that Zherka had threatened to rape his wife and three daughters if he reported the incident to the police and had held a gun to his head.
A Synopsis of Sam Zherka’s Past
It includes the following points:
- After dropping it one month earlier, Zherka launches a federal complaint in June 2013 against the FBI and the IRS. He asserts that his Tea Party actions made him the focus of “an unconstitutional witch hunt.”
- A five-year dispute is resolved in April 2013 when former Yonkers mayor Phil Amicone publicly apologizes to Zherka. The apology was a component of a $100,000 settlement in Zherka’s complaint over Amicone’s alleged comments against him during a 2007 campaign event, including that he labeled him “a convicted drug dealer,” a “Albanian mobster,” and a “thug.
- The Journal News reported in February 2013 that Zherka was using the $45,000 BMW SUV that Mount Vernon Corporation Counsel Nichelle Johnson was driving, raising concerns about possible ethical lapses. At least two recent lawsuits filed by Zherka against the city were partially defended by Johnson. No impropriety was discovered by a city ethics board.
- Terrance Raynor, the Westchester County District Attorney Janet DiFiore’s senior investigator, is the target of a lawsuit brought by Zherka in August 2012 on the grounds that Raynor overpaid for school tax rebates, defrauding the taxpayers. Zherka had been DiFiore’s longtime foe. Raynor subsequently consented to repay approximately $20,000 in full.
- In Zherka’s lawsuit against Yonkers, a federal jury decided to award him $8 million in October 2010. He asserted that Zherka’s Westchester Guardian newspaper’s racks had been forcibly taken by local officials. Later, the parties came to a $100,000 settlement, with Yonkers taxpayers footing the bill.
- During a heated argument with Yolanda Robinson, the mayor’s spokeswoman, in November 2008, Zherka was accused of disruptive behavior at Mount Vernon City Hall. The following year, after his trial, he was convicted of the charges.
Who is Sam Zherka?
Sam Zherka highlights himself as a seasoned real estate investor, developer, and consultant with a sizable portfolio of completed homes. He claims that he started working in real estate at the age of 17 and now has more than 30 years of expertise.
Finally, after learning about all the incidents and information involving Sam Zherka, is it possible to simply determine how violent and dishonest he really is? And whether it’s for business or any other reason, believing him would be incredibly wrong.