Ex-HRPT head pleads guilty to tax evasion

Volume 2, Number 6 | The Weekly Newspaper of Chelsea | November 16 - 22, 2007

James A. Ortenzio, former chairman of the Hudson River Park Trust and former chairman of the New York County Republican Party, pleaded guilty on Thursday to felony tax evasion and misdemeanor violation of the Public Officers’ Law.

Ortenzio, chair of the Trust from 1999 to 2003 while he was also chair of the County Republican Party, waived indictment and under the plea agreement will receive five years probation and will file amended and accurate tax returns for 2004 and 2005.

As chairman of the Republican Committee, he had to file a financial disclosure statement with the state ethics commission. But in September 2004, Fisher Bros. Management paid him $100,000 for “certain consulting services” and Ortenzio omitted that payment from his 2004 disclosure statement filed on June 13, 2005.

In addition, Ortenzio was retained in June 2004 to arbitrate a dispute between Air Pegasus and Sightseeing Tours of America, who both fly out of the 30th St. heliport located in Hudson River Park land. He was paid about $80,000 for the arbitration, which he failed to disclose on his 2005 state income tax return. Air Pegasus has been the prime permit holder for the 30th St. heliport for a decade without public bidding.

District Attorney Robert M. Morgenthau said the investigation leading to Ortenzio’s guilty plea began in November 2005 and resulted in several convictions of Cipriani U.S.A. restaurants and its executives.

The D.A. noted that Ortenzio owns several meat processing companies and was a major distributor to Cipriani restaurants.

Cipriani was also on the team, with Witkoff Group, that won the Hudson River Park Trust designation to redevelop Pier 57. Cipriani dropped out of the Pier 57 team in 2006.

— Albert Amateau