Brooklyn man pleads guilty in scheme that diverted funds from homeless shelters

A man has pleaded guilty to taking part in a scheme that diverted money from a New York City nonprofit by steering security work at homeless shelters in return for undisclosed payments, according to prosecutors.

The plea was entered on Monday in a federal court in Brooklyn. Prosecutors said Luis Camarena admitted that his company received payments for camera installations and that he conspired to send part of that money to two employees at the nonprofit who approved the contracts.

Camarena, 58, of the Bronx, is the fourth and final defendant to plead guilty in the case, according to the U.S. Attorney’s Office for the Eastern District of New York.

Earlier this month, prosecutors said co-defendants Gary DSilva, 47, of Manalapan, New Jersey; Jonathan Velazquez, 55, of Massapequa Park, New York; and Pradeep Nigam, 63, of Edison, New Jersey, entered guilty pleas to the same or similar charges.

Prosecutors said DSilva and Velazquez worked in the nonprofit’s information systems department in Brooklyn, where they were responsible for selecting vendors and authorizing payments.

According to the filings, they steered contracts to Camarena’s business and authorized payments for his work. In return, Camarena agreed to send them a portion of the revenue he received. Prosecutors said the arrangement allowed the employees to secretly profit from the contracts they awarded.

Camarena admitted that he participated in the agreement and agreed to forfeit about $224,000, identified as his share of the illicit proceeds.

“Camerena’s schemes enriched himself, DSilva, and Velazquez at the expense of the non-profit Organization, showing glaring disrespect towards the honest work of others,” stated United States Attorney Joseph Nocella Jr.

Camarena faces up to five years in prison. Prosecutors said DSilva and Velazquez each agreed to forfeit about $714,000. All four defendants will also pay more than $1 million in restitution to the nonprofit.