MANHATTAN — A heating oil company owner pleaded guilty to taking part in a massive scheme to defraud city residents and building owners that shortchanged them at least $7.4 million in fuel, Manhattan DA Cyrus Vance announced Thursday.
For eight years Gabriel Nortesano, 53, had workers from his company G&D Petroleum Transportation Inc. use a bypass valve to divert millions of gallons of oil back into delivery trucks while overcharging customers for deliveries. More than 15 other people have also pleaded guilty in the scheme, which involved nine companies.
“As temperatures begin to drop, New Yorkers rely on retailers and fuel transportation companies like G&D to deliver the heating oil that keeps themselves and their families warm,” Vance said in a statement. “Gabriel Nortesano directed a scheme to defraud New York City residents, building owners, and taxpayers of millions of gallons of heating oil, which he sold for significant profit on the black market."
Nortesano would tell drivers what customer to short and by how much, prosecutors said. They would also tip terminal dispatchers who would send their trucks to desired locations.
During one five-month period G&D shorted more than one million gallons of heating oil from customers in Manhattan, Brooklyn, Queens and The Bronx. They then resold the oil through another company Nortesano owned, G&D Heating Oil, profiting about $2 million.
Other companies involved included F&S Distribution; Casanova Fuel Oil, Inc.; Express Petroleum, Inc.; 4th Avenue Transport, Inc.; All-Boro Transportation, Inc.; Enterprise Transportation, Inc., and Century Star Fuel Corp.
Nortesano, who lives on Staten Island, pleaded guilty to three felony counts of enterprise corruption in New York State Supreme Court on Thursday.
He is facing three to nine years in prison and is set to be sentenced on Feb. 7 before Judge Arlene Goldberg.
The owner also agreed to pay more than $2 million in restitution, his lawyer, Joseph Conway, told DNAinfo New York.
"Mr. Nortesano pealed guilty today acknowledging his mistakes," said Conway, adding that his client hopes the restitution "helps to make the victims whole."