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COURIER L 16 IFE, OCT. 18-24, 2019
OVERRULED
Brooklyn judge arrested for allegedly
aiding embezzlement scheme
PERP WALK: Judge Sylvia Ash models a fl oor-length dress in February, eight months ahead
her arrest for allegedly destroying evidence. Photo by Stefano Giovannini
BY AIDAN GRAHAM
Federal authorities arrested a Brooklyn
judge at Laguardia Airport on Friday
for allegedly obstructing an investigation
into a multibillion-dollar
fi nancial institution — where she once
served as chairwoman of the board.
Supreme Court Justice Sylvia Ash
allegedly destroyed evidence and lied
to investigators about millions of dollars
of embezzled funds from Municipal
Credit Union — the largest credit
union in New York State — according
to prosecutors at the Southern District
of New York.
Ash — who was fi rst elected as a
Civil court judge in 2006 — had worked
a side-gig on the credit union’s board
of directors between 2008 and 2016,
which paid her “tens of thousands of
dollars” annually, prosecutors said.
Even after her resignation from the
board, Credit Union leadership continued
to provide Ash with various benefi
ts, “such as Apple devices,” according
to authorities.
In 2018, prosecutors approached the
judge about an investigation into Municipal
Credit Union’s President and
CEO Kam Wong — who allegedly perpetrated
an elaborate fraud scheme to
steal millions of dollars in funds from
the fi nancial institution, authorities
said.
But instead of cooperating, Ash
allegedly provided false testimony
to cover for Wong, and destroyed her
credit union-issued cell phone to hide
evidence from investigators, according
to prosecutors.
“As alleged, Sylvia Ash, a sitting
state court judge, took repeated steps
to obstruct a federal investigation into
signifi cant fi nancial misconduct at
Municipal Credit Union during Ash’s
tenure as chair of the board of directors,”
said United States Attorney
Geoffrey Berman.
Wong ended up pleading guilty to
one count of embezzlement in 2018, according
to prosecutors.
The judge was out of town when investigators
notifi ed Ash about a warrant
for her arrest on Thursday, and she
boarded an inbound fl ight to LaGuardia
Airport, where she was arrested on
Friday morning, authorities said.
She was charged along with a former
New York City police offi cer, 62-yearold
Joseph Guagliardo, who is separately
charged with operating a fraudulent
security company which took over
$450,000 from the credit union — in exchange
for performing no actual work.
Ash — who was slapped with obstruction
and conspiracy charges —
faces up to 45 years in prison if she is
found guilty of all charges.
Prior to her arrest, Brooklyn Paper’s
Standing O column saluted the
Supreme Court justice on several occasions,
including for her work educating
attorneys regarding the state’s
jury-selection process , distinctions
she received from the Brooklyn Bar
Association in 2018, and her brief
stint as a fashion model earlier this
year.
CHANTÉ JORDAN
VP Marketing
Zwanger Pesiri
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