meghan heckman, 2019 election

Story - News

May 27, 2009 10:47 AMPublication: The Southampton Press

Trial date is set for case against Quogue mayor

May 27, 2009 10:47 AM

A trial date has been set for the case involving Quogue Village Mayor George Motz, who was indicted last year on charges that he “cherry picked” accounts for his Manhattan investment firm and then altered documents to impede the ensuing criminal investigation.

Mr. Motz, 67, and his attorney, G. Robert Gage of Manhattan, are scheduled to appear before Judge Arthur Spatt in federal court in Central Islip on October 20, according to a spokesperson for the U.S. Attorney’s Office.

Mr. Motz, who serves as the chief executive officer of Melhado, Flynn & Associates, was indicted in August 2008 on one count of security fraud and one count of document alteration, both felonies. Prosecutors are alleging that he illegally earned more than $1.4 million for the investment company from November 2000 until June 2005.

Mr. Motz, who pleaded not guilty to both charges during his arraignment, could face up to 45 years in prison if convicted on all counts. He was released after posting $500,000 bond.

Melhado, Flynn & Associates was indicted on the same charges in November. If convicted, the investment firm could be forced to pay a penalty of up to $2.8 million.

The indictment charges that Mr. Motz “engaged in a fraudulent scheme in which he retroactively allocated profitable trades to MFA’s proprietary account,” while allotting unprofitable trades to clients’ accounts over a four-year period.

The indictment goes on to explain that Mr. Motz would wait until the end of the day to see which accounts were profitable before deciding to allot them to his investment company’s propriety account or to the accounts of other clients. He has also been charged with attempting to cover his tracks after officials with the U.S. Securities and Exchange Commission began investigating him.

Authorities have stated that the charges are unrelated to Mr. Motz’s work as the mayor of Quogue Village, a position he has held since 2002. Mr. Motz, who is married to Quogue Village Justice Kittric Motz, has indicated in past interviews that he has no intention of stepping down from his elected post.

You've read 1 of 7 free articles this month.

Already a subscriber? Sign in

power tools, home improvements, building supplies, Eastern Long Island