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By Matthew Russell Lee, Patreon Maxwell Book

SDNY COURTHOUSE, July 31 – In the U.S. District Court for the Southern District of New York on February 23, a detention or release proceeding was held by Magistrate Judge Gabriel W. Gorenstein on former NYPD Sargeant and union official Ed Mullins, who was released on $250,000 personal recognizance bond and had no comment (unlike Sarah Palin) out on Worth Street.

Another condition of release: "no contact with members / officers of SBA relating to the allegations in the Information."

  The US Attorney's Office says, "Damian Williams, the United States Attorney for the Southern District of New York announced today that EDWARD D. MULLINS, the former President of the Sergeants Benevolent Association (“SBA”), the union that represents all current and former Sergeants of the New York City Police Department, was charged with one count of wire fraud in connection with a scheme to steal hundreds of thousands of dollars from the SBA, through the submission of fraudulent expense reports.  MULLINS surrendered to the FBI in Manhattan this morning, and was presented before U.S. Magistrate Judge Gabriel W. Gorenstein.  The case has been assigned to United States District Judge John G. Koeltl."

On March 17, Inner City Press went to cover the case before Judge Koeltl and live tweeted, here:

OK - for NYPD's Mullins, now outside Judge's door for listed 2:30 proceeding. Three prosecutors here.  But it's locked.

Now in courtroom, Mullins and two lawyers, one in a 3-piece suit. He's Mark Mukasey.  All rise!

AUSA says parties agree to 45 day continuance, for discovery seized from SBA HQ under warrants.

Judge: So conference in 60 some days. Mukasey: Mr Mullins was a cop for 40 years and honorably for most of it.

On July 13, Judge Koeltl held another conference in the case, and Inner City Press covered and live tweeted it, here:

OK - now US v. Ed Mullins. Assistant US Attorney: The parties are working toward a pre-trial disposition in this matter. So please set the next date 45 days out. We'll be able to update then. Defense counsel: That's accurate.

 Judge Koeltl: The Court doesn't get involved in pre-trial disposition, that's up to defendant with advice of counsel. Next date: Sept 13 at 4:30?

Defense counsel Marc Mukasey : I have a trial before Judge Ramos on Sept 12 that is mostly certainly going. [US v. Trevor Milton, which Inner City Press is also covering]

Jump cut to October 7, when the next conference was scheduled. Mullins changed lawyers, from Mukasey - who is on a one week break from US v. Milton after a positive COVID test - to Thomas A. Kenniff. The conference was held; Judge Koeltl proposed another 45 days out. Kenniff counter-proposed 60 days. Discovery is still limited. The next conference was set for January 5, 2023.

But on December 30, Mullins' new lawyer Thomas A. Kenniff wrote to Judge Koeltl that "the parties are still engaged in ongoing plea negotiations" and asked that the conference be pushed into March.

In fact, the plea agreement was dated that day, and signed on January 18. On January 19, the ritual proceeding. Inner City Press went and live tweeted, thread here:

OK- now at SBA (expected to be) change of plea proceeding of Ed Mullins.

Judge Koeltl: I have before me a plea agreement signed Jan 18.

Mullins: I'm 61, with a graduate degree. No alcohol in last 24 hours. Judge: Do you wish to plead guilty to Count 1 of the Information? Mullins: Yes.

 Judge: The Sergeants Benevolent Association was defrauded by you, the Information charges, from at least 2017 to Oct 2021, over $1 million. Do you understand?

Mullins: Yes

Judge Koeltl is demostrating with his hands for Mullins how he could vary UPward or DOWNward from the sentencing guidelines.
"Do you understand?"

Mullins: Yes. Judge: The plea agreement specifies a sentencing guideline of 33 to 41 months.

Mullins: I submitted false and inflated expense reports by email and put the funds in local banks here in Manhattan. 

Judge: Where did you send the emails from? Mullins: I have no idea.

AUSA Rothman: We have the emails. Judge: How do you plead? Mullins: Guilty

 Judge: Sentencing May 25 at noon.

Postscript: Afterward, Mullins didn't speak but his (new) lawyer Tom Kenniff said he'd speak on Worth Street. It was raining; Inner City Press shot phone video and asked if $600,000 forfeiture is set in stone. He didn't say yes - but phone failed in the rain...

Here is the plea agreement on Inner City Press' DocumentCloud here

  In the run-up to the sentencing set for August 3, 2023, the US asked for 41 months. Inner City Press obtained redacted search warrant returns, for example "14. Based on my review of financial records provided by Citibank, TD Bank, and American Express in response to grand jury subpoenas issued in connection with this investigation, I have  learned the following, among other things:  a. The SBA maintains a bank account at TD Bank for the deposits associated with the Contingent Fund. As noted above, the Contingent Fund is primarily funded by dues payments  from SBA members, (see supra ¶ 9.e); however, between in or about 2019 and in or about 2021,  the City of New York deposited $1.8 million dollars into the Contingent Fund.4 b. Mullins maintains a checking account at Citibank (the “Citi Account”). Between in or about January 2017 and in or about August 2021, Mullins deposited into the Citi Account  approximately $260,000 in salary from the NYPD; approximately $400,000 in Stipend; and  approximately $990,000 in reimbursement checks.  c. Mullins also has an American Express credit card (the “Amex Card”). Between in or about January 2017 and in or about August 2021 (i.e., the same time period above), Mullins  made payments totaling approximately $820,000 from his Citi Account to his Amex Card. In other  words, Mullins appears to have used hundreds of thousands of dollars from the SBA to pay off his  credit card bills. It further appears that approximately sixty percent of all purchases on the Amex  Card during the same time period (i.e., from January 2017 until August 2021) were for retail items,  such as clothing, jewelry, and electronics, and that a significant portion of these purchases were  4  I further know, from my training, experience, and involvement in this investigation, that the City  of New York receives a significant amount of federal funds, well in excess of the $10,000 threshold  under 18 U.S.C. § 666. See 18 U.S.C. § 666(b).  17  12.06.2018 made at high-end retailers, including Hermes, Apple, and Tiffany & Co., as well as at P.C.  Richards, a home appliance store. In addition, Mullins appears to have used his Amex Card to  make college tuition payments for his children. Based on my training and experience and my  review of SBA activities and bylaws, very few, if any, of the above-listed expenses appear to have  a justifiable connection to the SBA or to qualify for reimbursement by the SBA.  d. In addition, from my review of Mullins’s bank records, it appears that Mullins  typically pays his Amex Card shortly after receiving his reimbursement checks from the SBA.  However, Mullins rarely pays off the exact amount received from the SBA. Rather, Mullins  typically pays off his Amex Card in an amount that is approximately two or three thousand dollars  less than the amount received from the SBA. Based on my training and experience, I believe that,  if Mullins were submitting actual SBA-related expenses for reimbursement, Mullins would use  the full amount of the SBA reimbursement to pay off his credit card bill. That he is not doing so  suggests to me that Mullins may be stealing additional money from the SBA (in addition to stealing  money through the submission of non-SBA related expenses)." Inner City Press has published this on its public DocumentCloud here

 It can be contrasted to the barebones, non-case specific Pen Register warrants that began to be put on SDNY PACER on July 24. These do not say what case they are related to; all there is is the AUSAs name and even that leads nowhere. While any move forward is to be appreciated, as a media that covers the SDNY and other Federal districts daily, this must be further. We'll have more on this.

The case is US v. Mullins, 22-cr-120  (Koeltl).

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