Jay Clayton, the United States Attorney for the Southern District of New York, and Harry T. Chavis, Jr., Special Agent in Charge of the IRS Criminal Investigations in New York, announced that Dennis Ostermann has pled guilty to filing a false tax return. Ostermann, a former Sergeant with the NYPD, admitted guilt before U.S. Magistrate Judge Ona T. Wang.
U.S. Attorney Jay Clayton stated, “At the direction of a senior union official, Ostermann reported payments as ‘legal fees’ when they were not.” He emphasized the importance of accurate reporting on tax returns for all individuals and organizations.
Harry T. Chavis, Jr., Special Agent in Charge at IRS-CI, remarked that Ostermann “misrepresented the movement of funds,” betraying both his role as controller for a law enforcement union and as a return preparer. He noted that with this guilty plea, Ostermann is now accepting responsibility for his actions.
Ostermann served as Controller for a union representing NYPD sergeants and was also a partner at HB Consultants Inc. In 2018 and 2019, he paid $150,000 from HBC’s account to another party on behalf of the Union’s former President but falsely reported it as legal fees on HBC’s tax returns. This act reduced HBC’s tax liability fraudulently.
Ostermann pled guilty to aiding and assisting in preparing a false tax return which carries up to three years in prison. His sentencing is scheduled for August 29, 2025.
The case is managed by the Public Corruption Unit with Assistant U.S. Attorney Alexandra Rothman leading the prosecution efforts.
