Manhattan Man Pleads Guilty To Participating In Multimillion-Dollar Securities Fraud Scheme

Joseph Meli Defrauded More than 130 Investors Who Invested More than $95 Million and Diverted Fraudulent Proceeds to His Own Use and to Repay Prior Investors

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JOSEPH MELI pled guilty today in Manhattan federal court to securities fraud.  Between 2015 and January 2017, MELI conducted a scheme to defraud more than approximately 130 investors who invested a total of more than approximately $95 million through false representations that MELI would use investor funds to purchase tickets to various live events for resale at a profit on the secondary market.  MELI pled guilty earlier today before U.S. Magistrate Judge Barbara Moses.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “As he admitted in court today, Joseph Meli created his own theatrical production – a fictitious business that purported to have access to blocks of tickets to Broadway shows and other events.  In fact, Meli was deceiving investors into giving him money that he pocketed to fund his own extravagant lifestyle.  Now he awaits sentencing for running a Ponzi scheme.”

According to allegations in the superseding Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings:           

From at least in or about 2015 through in or about January 2017, MELI conducted a scheme to defraud more than approximately 130 investors who invested a total of more than approximately $95 million through false representations that MELI would use investor funds to purchase tickets to various live events for resale at a profit on the secondary market.  In fact, MELI utilized a substantial portion of the investor funds he obtained for MELI’s personal expenses – including payments for a $3 million house in East Hampton, New York, a 2017 Porsche convertible, and expensive watches and jewelry – and to make payments, in a Ponzi-like manner, to previous investors in MELI’s ticket fraud scheme and in unrelated hedge fund.

In furtherance of the fraudulent scheme, MELI falsely represented to investors that he had entered into written agreements with production companies for popular Broadway shows and with management companies for popular singers and music bands (together, the “Production and Management Companies”) to purchase large blocks of tickets to the shows and performances.  In truth and in fact, MELI had not entered into such agreements and did not have any contractual rights to purchase such tickets from the Production and Management Companies. 

In furtherance of the scheme, moreover, MELI provided investors with falsified documents purporting to reflect agreements between MELI’s company, Advance Entertainment, LLC (“Advance”), and the Production and Management Companies, in which the Production and Management Companies agreed to sell Advance large blocks of tickets to the shows or performances.  In truth and in fact, the Production and Management Companies had not entered into agreements to sell tickets to MELI or Advance.  These fake agreements listed, as authorized representatives entering into the agreements on behalf of the Production and Management Companies, the names of individuals within those organizations, and furthermore contained fraudulent signatures of these individuals.

MELI, 43, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000.  In addition, pursuant to a plea agreement with the Government, MELI agreed to forfeit proceeds of the offense and to pay restitution to the victims of the offense.  MELI is scheduled to be sentenced by Judge Kimba M. Wood on January 31, 2018.   

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Kim praised the work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission for its assistance.

A.G. Schneiderman Announces Major Settlement With NYC Board Of Elections Over Voter Registration Purges

Settlement Overhauls NYCBOE’s Procedures For Maintaining Voter Rolls, And Establishes Frequent Monitoring And Oversight Of NYCBOE’s Voter List Maintenance Activities

In January, A.G. Schneiderman Filed Suit Against NYCBOE For Knowingly Purging Over 200,000 New Yorkers From The Rolls Before The 2016 Presidential Primary, In Violation Of Federal And State Law

  Attorney General Eric T. Schneiderman today announced the settlement of his lawsuit against the New York City Board of Elections (NYCBOE), overhauling NYCBOE’s procedures for maintaining voter rolls and establishing frequent monitoring and oversight of those procedures in order to protect New Yorkers’ access to the ballot box. The consent decree was filed with the U.S. District Court for the Eastern District of New York late yesterday.

In January, Attorney General Schneiderman filed suit, alleging that the NYCBOE purged over 200,000 voters from its registration rolls in violation of federal and state law. Specifically, the Attorney General alleged that the NYCBOE illegally cancelled the registrations of over 200,000 New Yorkers: over 100,000 on the basis of a voter’s failure to vote, and another nearly 100,000 using a procedure that did not comply with federal and state law. 

Today’s consent decree requires the NYCBOE to overhaul its voter registration and list maintenance policies and procedures, adequately train relevant staff, and submit to regular monitoring and oversight of voter registration and list maintenance activities. Moreover, the NYCBOE has agreed to review every voter registration cancelled since July 1, 2013, determine whether the cancellations were justified under law, and reinstate, to appropriate status, any registrations that were improperly cancelled. 

“The right to vote is sacred to our democracy. Yet the NYC Board of Elections illegally purged over 200,000 New Yorkers from the rolls, violating the law and New Yorkers’ trust in the institutions meant to protect their rights,” said Attorney General Schneiderman. “This settlement would overhaul NYCBOE’s practices for maintaining voter rolls, ensuring that the issues that led to the purges are addressed, and establishing frequent monitoring and oversight of those list maintenance practices. My office will continue to protect all voters’ access to the polls and continue to fight to expand voting rights.”

OAG’s lawsuit arose out of an investigation by the New York Attorney General’s Office opened shortly after New York’s Presidential Primary on April 19, 2016. OAG opened its investigation after receiving over 1,500 complaints via its Election Hotline of widespread voter issues, including a massive and illegal voter purge in Brooklyn. In early December 2016, OAG published a report, available here, detailing the causes of many of the problems voters across the state encountered at their polling places. After the Attorney General’s report, Common Cause and Lawyer’s Committee amended a complaint they had filed in federal court against the NYCBOE to allege that the purge of voters in Brooklyn violated the Section 8 of the National Voter Registration Act (“NVRA”). In January, Attorney General Schneiderman intervened in this lawsuit, along with the United States Department of Justice.

In its complaint, OAG alleged that the NYCBOE violated state and federal law with three massive registration purges.  First, from 2014 to 2015, officials in the Brooklyn Borough Office of the NYCBOE manually identified and purged over 100,000 voter records on the basis of their failure to vote or submit any updated forms to the NYCBOE since 2008.  Both federal and state law prohibit the cancellation of voter registration records solely on the basis of a failure to vote. In addition, OAG alleged that in 2014 and 2015, the NYCBOE used the National Change of Address database to identify and remove nearly 100,000 additional voters it suspected of having moved outside the City after only 30 days’ notice. Under both state and federal law these voters should have been retained on the registration rolls for at least two federal elections after the NYCBOE gave them notice, i.e. two to four years. 

The consent decree, which is subject to court approval, overhauls the NYCBOE’s procedures for maintaining its voter rolls and requires significant monitoring and oversight by the Attorney General’s Office, the DOJ, and the private plaintiffs of the NYCBOE’s updated voter list maintenance procedures. The NYCBOE is required to:

• Create a plan that details the step-by-step processes for voter list maintenance;
• Appoint officials at the Central and Borough Offices that will be tasked with implementing these policies and conducting regular internal oversight and auditing of these procedures;
• Develop regular training for staff charged with maintaining voter lists;
• Create uniform complaint procedures for voters impacted by improper removal procedures;
• Develop procedures to identify systemic issues if improperly removed voters are identified;
• Provide monthly and annual reports to the Attorney General’s office, DOJ, and the private plaintiffs, including monthly data regarding list maintenance activities;
• Submit to twice-a-year audits by the Attorney General’s Office and DOJ of list maintenance procedures using individual voter records; and
• Review the cancellation of every voter removed since July 1, 2013, identify any improperly removed voters, and reinstate those voters.

The reforms must be summarized in a Comprehensive Remedial Plan that the NYCBOE will submit to the Attorney General, DOJ, and the private plaintiffs for review and agreement.

This matter is being handled by Assistant Attorneys General Ajay Saini, Diane Lucas, and Sania Khan of the Attorney General’s Civil Rights Bureau, which is led by Bureau Chief Lourdes Rosado. The Civil Rights Bureau is part of the Social Justice Division, which is led by Executive Deputy Attorney General for Social Justice Alvin Bragg. 

The Attorney General's Office is committed to the voting rights protecting all eligible New Yorkers. To file a civil rights complaint, contact the Attorney General’s Office at (212) 416-8250, civil.rights@ag.ny.gov or visit www.ag.ny.gov.

RETIRED PRIEST INDICTED FOR HAVING CHILD PORNOGRAPHY ON HIS COMPUTER

Onetime Archdiocese Chancellor Allegedly Viewed Images on Computer at Retirement Home

  Bronx District Attorney Darcel D. Clark today announced that a retired Catholic priest has been indicted for possessing pornographic images of girls as young as eight years old on his computer which he allegedly viewed in front of many individuals at his retirement home in the Bronx. 

  District Attorney Clark said, “This investigation by the Economic Crimes Bureau found that the defendant had dozens of photographs on his computer of girls ages eight to 14 years old performing sex acts with men or posing naked. People at the defendant’s residence were subjected to it when they entered his room. Anyone who views child pornography supports horrific child exploitation.” 

  District Attorney Clark said that Monsignor Harry J. Byrne, 96, who resides at the St. John Vianney Center for Retired Priests in the Bronx operated by the Archdiocese of New York, was indicted on 37 counts of Possessing an Obscene Sexual Performance by a Child and 37 counts of Possessing a Sexual Performance by a Child. He was arraigned today before Bronx Supreme Court Justice Robert Neary and released. He is due back in court on January 17, 2018. If convicted of the top charge, he could face up to four years in prison and would have to register as a sex offender.

  The investigation began about five months ago when officials at the residence notified the Bronx District Attorney’s Office after receiving complaints about Byrne. According to the investigation, the defendant sought out the images of young girls using Google and Bing. Detectives from the NYPD Computer Crimes Squad conducted a forensic examination of his computer and found at least 37 images of child pornography.

  District Attorney Clark thanked the NYPD Computer Crimes Squad for their assistance in the case, as well as the Bronx DA Detective Investigators. 

An indictment is an accusatory instrument and not proof of a defendant’s guilt.

BRONX DISTRICT ATTORNEY DARCEL D. CLARK ANNOUNCES RESULTS OF INVESTIGATION INTO ALLEGATIONS AGAINST FORMER PASTOR

Over $22,000 in Parish Accounts Improperly Reimbursed to Fr. Peter Miqueli for Personal Expenses

  Bronx District Attorney Darcel D. Clark today announced that an extensive investigation into allegations against the former pastor of a Bronx church has found that he was improperly reimbursed for over $22,000 in personal expenses from the parish account.

  The investigation also revealed that the parish did not comply with certain financial controls mandated by the Archdiocese of New York, and the Archdiocese did not scrutinize the finances of the parish to ensure it was in compliance. The District Attorney’s Office has made recommendations to the parish and the Archdiocese to ensure that proper financial controls are in place. The Archdiocese has reimbursed St. Frances de Chantal Church for the funds paid to Father Miqueli. No criminal charges will be filed. 

   District Attorney Clark said, “This investigation by the Economic Crimes Bureau found that Father Miqueli was improperly reimbursed for personal expenses. The Archdiocese has reimbursed St. Frances de Chantal Church for the funds, $22,450 of hard-earned money donated by parishioners for the betterment of the parish. We have made recommendations to the Archdiocese and they have agreed to more oversight.”

  District Attorney Clark said all allegations of criminal behavior alleged to have been committed by Father Miqueli, including that he misappropriated or stole millions of dollars from the parish over a period of several years, were investigated and the allegations of criminal conduct were found to be unsubstantiated. The funds that were improperly reimbursed to Father Miqueli are now being paid back to the parish, taken from sustenance funds that, under Canon Law, were due to Father Miqueli. In effect, this means that Father Miqueli is repaying the $22,450 to the Parish.

  In addition, in the course of its investigation, the Bronx District Attorney’s Office has identified certain important financial and business controls and best practices, many of which are mandated in the Archdiocesan Financial Policies and Procedures Manual (“Manual”) that were not being followed by the parish. The Bronx District Attorney’s made the following recommendations:

1. The Parish must undergo a complete audit and should be audited regularly, and no less than every 3 years. Further, an audit should be conducted whenever a pastor is about to leave the Parish and before a new pastor is assigned; 

2. The Parish’s budget must be submitted by March 15th every year; 

3. The Parish may only have a single general purpose credit card which must have the pastor’s name and the name of the Parish on it, and be used only for Parish expenses; 

4. Weekly collections must be secured in sealed security bags, stored in a safe or lock box, counted by an accounting team of no less than two individuals and must be handled at all times in a manner consistent with the Manual prior to deposit in the bank; 

5. The weekly collection and the Parish’s annual financial statement must be published in the Parish’s bulletin; 

6. A Parish Finance Council, formed from parishioners with fiscal acumen and knowledge of the Parish, must be operational and fully informed of all finances of the Parish; 

7. The pastor and the Parish manager must be trained in the Parish SOFT (formerly “LOGOS”) system of accounting; 

8. The Parish must have two lay trustees who are long-time parishioners and familiar with Parish finances; 

9. There must be a Parish Council; 

10. There must be an annual meeting of the officers of the Parish Corporation; 

11. Only an approved accountant may be used by the Parish and such accountant cannot also serve as the personal accountant for the pastor or any employee of the Parish;

12. Regular operational reviews must be conducted during which every expense incurred by the Parish and its employees, must be examined and reconciled by the parish Finance Council; 

13. All internal controls set forth in the Manual must be fully implemented and operational and must remain in place.

Senator Klein, Assemblyman Dinowitz & Council Member Cohen successful in push for better lighting at Riverdale site where 9/11 memorial plaque was stolen

After Senator Jeff Klein, Assemblyman Jeffrey Dinowitz and Council Member Andrew Cohen wrote a joint letter to the city Department of Transportation requesting the agency conduct a lighting study in a Riverdale community garden where numerous 9/11 memorials have been stolen since June, the agency is taking action.

DOT’s Street Lighting Division concluded in a survey that the area did indeed lack sufficient lighting. DOT informed the elected officials that they would be installing additional street lighting at West 253rd Street and Fieldston Road in order to correct this issue. In all, six new street light brackets will be installed at that intersection in the vicinity of the community garden. Four existing street light brackets at the intersection will also be replaced with new LED lights.

“I want to applaud the New York City Department of Transportation for quickly determining that additional street lighting is warranted around Endor Community Gardens. The thefts over the summer of several 9/11 memorials were utterly disrespectful to the victims, their families and our community. I’m confident that these new measures will increase safety and help prevent future crimes from occurring in the area,” said Senator Jeff Klein.  

“The Endor Community Garden is a beautiful nook in our neighborhood that local residents have worked very hard to maintain and preserve to honor police officers and firefighters killed in the 9/11 attacks. This beautiful memorial has been vandalized on more than one occasion and we must take action to make sure this does not happen again. Providing better lighting discourages vandalism and so I am thankful that the DOT is taking the necessary steps to correct this problem,” said Assemblyman Dinowitz

“A memorial honoring the lives lost in 9/11 is especially sacred and should  never be tampered with,” said Council Member Andrew Cohen. “These new measures will help deter any future act of vandalism in the area.  I applaud the Department of Transportation for taking the issue seriously and taking the proper next steps.”

The thefts at Endor Community Gardens occurred over a span of several weeks this summer. A plaque honoring local police officers and firefighters killed in the Sept. 11 terror attacks was the first memorial taken. A local resident temporary replaced the plaque with American flags, but those too were taken on five separate occasions.

The elected officials sent their joint letter in September, and the DOT concluded their lighting survey about a month later.

Friends of VCP's November Events

Fall Wetland Volunteer Day
Saturday November 4th meeting at 10am
Did you know there are only 98 acres of freshwater wetlands left in the Bronx and 56 of them are in Van Cortlandt Park? Volunteers will help with native species planting, removal of non-native invasive plants and trash clean up within Tibbetts Wetlands. Meet inside the park near the last stop of the 1 train at Broadway and W. 242nd Street.

Volunteer Trails Restoration CrewSaturday November 4th from 10am to 3pm
Crew Members will work alongside trails professionals, developing skills in various areas of trail construction while improving the various trails in Van Cortlandt Park.  Projects include building boardwalks, clearing waterbars and drainage swells and installing drainage dips.  No prior trails experience is necessary; all training will be offered in an on-the-job format.  Interested? Contact john@vancortlandt.org for more information. Must be 18 years of age to join.

Woodlawn Playground BeautificationSaturday November 4th from 10:30am to 1pmJoin the Friends and the Women of Woodlawn as we continue our efforts to beautify the area around Woodlawn Playground. Meet at Van Cortlandt Park East and just south of Kepler Avenue.

Get Active Hiking Series in VCPSaturday November 18th meeting at 10am, Seven Wonders of VCP Tour.  Please wear appropriate shoes and bring plenty of water and a snack for hike. meet at FVCP Compost Site- enter the Park at Broadway and Mosholu Ave.

End of Season CelebrationSaturday November 18th from 10am to 1pmHelp with our final harvest to prepare the garden and compost bins for the winter through adding collected leaves and food scraps.  Projects suitable for all ages.  Volunteers will get a final chance to taste some of the produce from our garden.  Meet at FVCP’s Compost Site- enter the Park at Broadway and Mosholu Ave.

Friends of Van Cortlandt Park

vancortlandt.org

718-601-1553

info@vancortlandt.org

80 Van Cortlandt Park South Ste. E1

Bronx, NY 10463

FOLLOWING DEADLY NEW YORK TERROR ATTACK, COUNCIL TRANSPORTATION CHAIR YDANIS RODRIGUEZ TO CALL ON NYC TO INSTALL MORE SAFETY BOLLARDS

  Tomorrow, Thursday, November 2nd  at 12:00 pm Noon on the steps of City Hall, Council Transportation Chair Ydanis Rodriguez, elected officials, and transportation advocates will call on the City of New York to install pedestrian safety bollards along sidewalks in key areas with high pedestrian volume and other pedestrian safety measures to prevent potential attacks in NYC.

Council Member Rodriguez is the sponsor of  Introduction 1658 that would require the installation of bollards in front of schools, plazas and vision zero priority corridors, however, the call will be to begin installation now before the legislation goes to a vote.

The heightened urgency of protecting pedestrians comes after a driver identified as Sayfullo Saipov, 29, ran down a bike lane in a rented Home Depot pickup truck killing nine people and injuring eleven. There have similar attacks in France, Spain, the United Kingdom, and Times Square where vehicles have been used a weapons.