Full Breakdown
Sentencing of Former NYPD Sergeants Union Controller for Tax Fraud
3/25/2026, 8:07:23 AM
Overview of the Case
Dennis Ostermann, the former controller of the New York Police Department's Sergeants Benevolent Association (SBA), received a sentence of two years probation without jail time after admitting to tax fraud. His actions were linked to aiding his former boss, Ed Mullins, who is embroiled in a separate embezzlement scandal. Ostermann's sentencing took place in Manhattan federal court, where he expressed remorse for his actions.
Details of the Fraud
Ostermann pleaded guilty in June 2025 to charges of falsifying tax returns by disguising a $150,000 payment to Mullins' legal team as legitimate business expenses for his consulting firm, HB Consultants. These fraudulent tax returns were submitted for the years 2018 and 2019, coinciding with Mullins' investigation for allegedly embezzling union funds for personal luxuries. Despite his guilty plea, Ostermann retained his position as the union's controller until the day of his sentencing.
Judicial Considerations
During the sentencing, Judge Lorna Schofield noted that Ostermann's continued employment with the SBA until his sentencing influenced her decision to impose probation instead of jail time. She remarked on the union's trust in him, stating, “The union still trusts you, which I think is noteworthy.” However, following the sentencing, Ostermann was terminated from his position within hours.
Financial Penalties
In addition to probation, Ostermann is required to pay $35,052 in restitution and a $4,000 fine. The prosecution had sought a more severe penalty, arguing that a non-custodial sentence would not adequately reflect the seriousness of the offense.
Defense and Character References
Ostermann's defense attorney, Peter Brill, advocated for leniency, portraying him as a hardworking individual who made a poor decision to assist a lifelong friend. Brill highlighted Ostermann's community involvement, including his role as a devoted church member and former altar boy. He also noted that Ostermann continues to provide tax and accounting services as a side business.
Background on Ed Mullins
Ed Mullins, Ostermann's former boss, pleaded guilty to embezzlement charges in June 2023 and received a two-year prison sentence. His case has drawn significant attention due to the nature of the alleged misappropriation of union funds.
Criticism of the Sentence
The decision to impose probation instead of jail time has drawn criticism, particularly from Manhattan federal prosecutor Alexandra Rothman, who argued that a lenient sentence would undermine the seriousness of Ostermann's actions. The lack of incarceration has raised concerns about accountability within union leadership.
Conclusion
The case against Dennis Ostermann underscores issues of trust and accountability within labor organizations, particularly in light of the ongoing scandal involving Ed Mullins. As Ostermann begins his probation, the implications of this case may resonate within the NYPD and the broader labor community.
