>His sentence includes three years of supervised release, a restitution payment of $289,000, and a $15,000 special assessment, according to a news release. In addition, US District Judge David Trager of the US District Court for Eastern New York entered a forfeiture judgment in the amount of $300,000.
>Three dozen other defendants have pleaded guilty in connection with the investigation that led to Novak’s conviction, the news release stated.
>Novak was charged and convicted of racketeering, racketeering conspiracy, receiving unlawful labor payouts in violation of the Taft-Hartley Act, mail fraud, making false Employee Retirement Income Security Act (ERISA) statements, money laundering and money laundering conspiracy. The charges stated that Novak lead a racketeering enterprise that lasted over three decades in which he victimized high-rise construction sites throughout the New York area, generating kickbacks for himself and others from no-show elevator construction jobs. Between 1989 and 2001, the court alleged, Novak caused contractors to pay more than $3 million in the names of no-show operators.
>In exchange for the no-show money, the release stated, Novak would provide labor peace and compromised Local One’s rights to insist that contractors comply fully with their obligations.
>Novak must report to prison on February 1, 2005.
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