An alleged $2 million kickback scam that may have defrauded several developers - including the Cafaro Company - has resulted in a federal indictment of several men, including a former executive of the Cafaro Company.
Benjamin Viloski, who was vice president of real estate for the Cafaro Company 15 years ago, is accused of helping organize and run the scam. The Aug. 5 indictment was issued out of the Northern District of New York.
The Cafaro Company may have been defrauded of at least $143,000, making payments related to the Dick's Sporting Goods stores at three of it's malls, including $43,000 to location at the Eastwood Mall Complex in Niles.
"We essentially were victimized in the case," said Joe Bell, a spokesman for the Cafaro Company. "Want to make it clear the individucal involved, pointed out in the story, hasn't worked for the company for 15 years."
The indictment alleges that when Dick's Sporting Goods built new stores, money that developers spent on consulting fees instead went to six front companies.
The indictment further states the alleged kickback scheme lasted about seven years and defrauded Dicks Sporting Goods, landlords and developers. Viloski's attorney said his client is innocent of any criminal wrongdoing.
"I think anyone with business knowledge, especially knowledge of the reat estate industry would be rather surprised at the indictment and some of the naive ideas expressed in the indictment," said Mark Mahoney, who represents Viloski.
However, the indictment says Viloski was involved in conduct resulting in over $1.2 million in kickback payments related to the development of about 22 new Dick's stores.
Viloski said he never defrauded anyone and that his companies are legitimate.
