Friday, December 15, 2017

Former Comptroller Of Mortgage Lender Charged With Bank Fraud And Wire Fraud


  Joon H. Kim, Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Maria T. Vullo, Superintendent of the New York State Department of Financial Services (the “DFS”),announced today the unsealing of an Indictment charging JOHN REIMER with bank fraud and mortgage fraud in connection with his participation in a scheme to defraud banks of money intended for individuals seeking loans to purchase or refinance their homes.  REIMER was arrested today in Boca Raton, Florida, and was presented in U.S. District Court for the Southern District of Florida earlier today before United States Magistrate Judge James M. Hopkins.

Acting U.S. Attorney Joon H. Kim said:  “As alleged, John Reimer, vice president of a mortgage bank, defrauded several other financial institutions of more than $12 million.  Reimer allegedly falsified documents, kept funding for mortgages that never closed, and even acquired funding multiple times for the same loans as part of the scheme.  Fraud schemes that target money intended for home loans can taint the market for honest homebuyers seeking to secure mortgages.  We will continue to work with our law enforcement and regulatory partners to ensure that schemes like the one charged here are stopped.”

FBI Assistant Director William F. Sweeney Jr. said:  “As alleged, Reimer capitalized on his knowledge of the mortgage-lending industry to exploit its vulnerabilities, causing serious damage to a number of warehouse banks fronting him an advance for the loans his bank was in the business of providing.  Mortgage fraud not only affects individual victims and institutions, it risks the overall stability of the housing market, accumulating losses across the board.  The FBI continues to support partnerships within the mortgage industry and law enforcement as we work together to combat this serious crime.”

Financial Services Superintendent Maria T. Vullo said:  “This defendant allegedly used his position and access as a banker to obtain millions of dollars in fraudulent loans.  As regulator of New York’s Financial Services industry, the Department of Financial Services is proud to have assisted the United States Attorney’s Office for the Southern District of New York in bringing this defendant to justice.”

According to the allegations made in the Indictment:[1]

REIMER, who was the vice-president and comptroller of a mortgage lending institution (the “Mortgage Bank”), participated in a scheme to defraud several financial institutions (the “Warehouse Banks”) by causing the Warehouse Banks to provide funds to the Mortgage Bank, ostensibly to fund mortgage loans for residential properties, based on false and fraudulent documentation and representations made and provided by Reimer to the Warehouse Banks.

The Mortgage Bank was in the business of providing mortgage loans for residential properties (“Loans”).  Pursuant to agreements, the Warehouse Banks advanced sums of money to the Mortgage Bank so that the Mortgage Bank could fund Loans (the “Warehouse Advances”).  Once a Loan closed, the Mortgage Bank typically sold the loan to an investor and used the proceeds of the sale to re-pay the Warehouse Bank for the Warehouse Advance.

In order to obtain a Warehouse Advance for a particular loan, the Mortgage Bank was required, among other things, to provide the Warehouse Bank with certain documents and information about the Loan.  In addition, the notes and mortgages executed by the residential mortgagors were provided to the Warehouse Banks as collateral for the Warehouse Advances.  REIMER was responsible for providing the Warehouse Banks with the information and documents necessary to obtain the Warehouse Advances.

However, according to the Indictment, with respect to certain Loans, REIMER “double-pledged” residential properties by obtaining multiple Warehouse Advances from more than one Warehouse Bank to fund the same Loan, thus misleading each Warehouse Bank into believing that the Warehouse Advance it made to the Mortgage Bank was fully collateralized.

Moreover, according to the Indictment, with respect to certain Loans, REIMER falsely represented to the Warehouse Banks that the Loans were going to close imminently, when, in fact, such Loans were not imminently closing at the time the Warehouse Advances were made.  In some cases, the Loans never closed, but the Mortgage Bank nevertheless retained the Warehouse Advances made for those particular Loans.  In other cases, the Loans did close, but the Mortgage Bank used those Warehouse Advances to repay other Warehouse Advances.

According to the Indictment, in furtherance of the scheme, REIMER provided the Warehouse Banks with fraudulent documents, including mortgage notes on which REIMER falsified the signatures of the purported residential mortgagors.

According to the Indictment, from November 2008 through January 2009, REIMER used fraudulent misrepresentations to cause the Warehouse Banks to wire the Mortgage Company at least over $12 million.

REIMER, 60, of Boca Raton, Florida, is charged with one count of bank fraud and one count of wire fraud, each of which carries a maximum sentence of 30 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. 

Mr. Kim thanked the FBI and DFS for their outstanding work on the investigation.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
 
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as allegations.

A.G. Schneiderman Leads Coalition Of 11 AGs In Challenging Trump EPA's Illegal Delay Of Clean Water Protections


AGs: Proposed Two-Year Suspension of “Clean Water Rule” Would Violate Federal Law and Rollback Decades of Clean Water Protections
Rollback Would Put At Risk 5,700 Miles Of Streams That Feed Into NY’s Drinking Water Sources – Which Help Provide Drinking Water To 56% Of New Yorkers
Further, Administrator Pruitt Has Illegally Refused to Recuse Himself – Despite Previously Bringing Litigation Against Clean Water Rule and Appearing in Anti-Clean Water Rule Promo Videos While Leading EPA
  Attorney General Eric T. Schneiderman, leading a coalition of 11 Attorneys General, challenged the legality of a Trump Administration proposed two-year suspension of the “Clean Water Rule,” a federal regulation that defines “waters of the United States” under federal law. In comments addressed to the Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (ACOE), the coalition charges that the proposed suspension of the Clean Water Rule – which is designed to ensure the nation’s lakes, rivers, streams, and wetlands receive proper protection under the federal Clean Water Act – would violate federal law in multiple respects.
Click here to read the comments. Joining Attorney General Schneiderman in the comments are the Attorneys General of California, Hawaii, Maine, Maryland, Massachusetts, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia.
“Clean water is a basic right – fundamental to New Yorkers’ health, environment, and economy,” Attorney General Schneiderman said. “The Trump administration’s proposed suspension of the Clean Water Rule is clearly illegal, and would jeopardize the clean, healthy water on which New Yorkers rely. Attorneys General will fight back against this reckless ‘dirty water’ proposal, and the Trump administration’s continued assault on our nation’s core public health and environmental protections.” 
A lake, river, stream, wetland, or any other kind of surface water is afforded protection under the Clean Water Act only if it is a “water of the United States.” Supreme Court decisions in 2001 and 2006, and ambiguity in regulations dating back to 1980, led to substantial uncertainty as to whether some waters – particularly, small, seasonal, or rain-dependent streams, wetlands, and tributaries – are considered waters of the United States. As a result, roughly 20,000,000 wetland acres and 2,000,000 miles of streams in the Continental United States were lost, or were placed in jeopardy of losing, their protections under the Clean Water Act. These at-risk streams help provide drinking water to 117 million Americans – including 56 percent of New Yorkers.
The uncertain protection of waters put at risk 60 percent of our nation’s streams – and at least 55 percent of New York’s stream miles – and millions of acres of wetlands nationwide of federal protection.  This left these waters – and the downstream waters with which they connect – vulnerable to increased flooding, pollution, damage to hunting and fishing habitat, and fouling of the drinking water supplies. 
The 2015 Clean Water Rule, which the Trump Administration wants to suspend, clarified what types of waters are covered by the Clean Water Act, thereby securing their protection. The Rule was based on over 1,200 peer-reviewed scientific studies that demonstrated how many waters are connected by networks of tributaries, intermittent streams, and wetlands. Because of this “interconnectivity,” physical, chemical, and biological pollution from wetlands and relatively small or infrequently-flowing upland streams often impact larger downstream waters, such as rivers, lakes, estuaries, and oceans. All of the lower 48 states have waters that are downstream of other states; New York, for example, is downstream of 13 states. As such, New York and other states are recipients of water pollution generated not only within their borders, but also from upstream sources outside their borders over which they lack jurisdiction.
On November 22, 2017, the EPA and ACOE proposed to suspend applicability of the Clean Water Rule for two years and reinstate the old and inadequate regulations – dating back to at least 1980 – that had been in place prior to the Clean Water Rule. It was these nearly 40-year-old rules, whose dated science and lack of clarity as to which waters are “waters of the United States,” that had led to years of confusing and inconsistent interpretations by agencies and federal courts. If the suspension rule is finalized, the outdated 1980 regulations would replace the Clean Water Rule. 
In their comments, the coalition of Attorneys General state that EPA and ACOE are in “wholesale breach of foundational administrative law principles” and that the suspension rule is “in blatant violation” of federal law requirements, and is otherwise arbitrary, capricious, and exceeds the agencies’ legal authority. The coalition charges that, among other things, the agencies have:
  • Failed to provide a meaningful opportunity for public comment on the substance of the suspension rule – allowing only a 21-day comment period during the Thanksgiving/Christmas holiday season, and specifically rejecting any comments on the content, basis, or impact of the reinstated four-decade-old regulations – demonstrating that the agencies “lack the required flexible and open-minded attitude” necessary for a proper rulemaking;   
  • Failed to consider important aspects of defining “waters of the United States,” including the “well-known ambiguities and inconsistencies that result from applying the 1980 regulations, and the further complications arising from Supreme Court and federal case law interpreting ‘water of the United States’,” and
  • Disregarded the voluminous scientific basis and factual findings supporting the Clean Water Rule, including that the 1980 regulations do not specifically address the interconnectivity of waters and thereby leave many floodplains, wetlands, and tributaries without certain protection under the Clean Water Act. 
Further, the coalition notes that while EPA Administrator Scott Pruitt had pledged to recuse himself from the litigation he brought as Oklahoma Attorney General to repeal the Clean Water Rule, he has refused to recuse himself from this rulemaking involving the very same issues. Since becoming EPA Administrator, Pruitt has appeared in promotional videos for private organizations that have brought suit challenging the Clean Water Rule, and in those ads has clearly misstated the rule’s provisions. The coalition charges that Administrator Mr. Pruitt’s involvement in this rulemaking is “illegal” and “renders a final rule invalid due to his refusal to follow ethics review procedures [under federal law] in light of his lack of impartiality, and because the clear and convincing evidence demonstrates his closed mind on the matter in violation of due process.”
On September 27th, Attorney General Schneiderman, joined by the Attorneys General of California, Maine, Maryland, Massachusetts, Oregon, Vermont, Washington, and the District of Columbia, challenged the legality of a Trump Administration’s previous proposal to outright repeal the Clean Water Rule. The coalition charged that the proposal was “arbitrary and capricious and not in accordance with law.” They also charged that EPA Administrator Scott Pruitt’s involvement in the effort, after suing to negate the Clean Water Rule as Oklahoma Attorney General, was “illegal” and would render any repeal invalid. Click here to read these comments

STATEMENT FROM MAYOR DE BLASIO ON THE GOP TAX PLAN


  “It appears Congressional Republicans and President Trump are in full agreement: what the country needs right now is tax cuts for the wealthy and the world’s biggest corporations. Never mind rampant wealth inequality or stagnant wages. All that matters to the GOP is increasing corporate profits and setting the stage for cuts to Social Security, Medicare and Medicaid.

“Now is the time to get even louder. In the coming days, Republicans will continue their unprecedented rush to stick middle class taxpayers with the bill. Make your voices heard and remind your congressional leaders who they work for.”

Serrano, Engel, Espaillat, and Crowley Urge Mayor de Blasio to Open LGBT Community Center in the Bronx


Bronx is only Borough in NYC without an LGBT Community Center
Bronx Members also Urge Mayor to Address Other LGBT Needs As It Sets Priorities for Second Term

  Bronx U. S. Representatives Serrano, Engel, Crowley, and Espaillat today sent a letter to Mayor Bill de Blasio urging him to make a priority addressing the LGBT community needs a priority in his upcoming terms as Mayor. Among the recommendations, the members emphasized the need to open an LGBT community center in the Bronx – the only borough that doesn’t have one to this date. The members also urged Mayor de Blasio to address the issues of homelessness and other housing needs that affect the LGBT community and those who are gender non-conforming (TGNC), particularly teenagers; as well as the rise in violence and other human rights violations against LGBT people. 

“The Bronx remains without an LGBTQ Community Center, and continues to be the sole borough in New York City without one. As you may know, community centers play a vital role in enriching the lives of residents and the neighborhoods they call home. Whether providing easy access to quality, safe programs and services or directing families to the appropriate channels to receive the much-needed assistance they are seeking, community centers are a crucial safety net for many. We strongly believe that no one should be forced to travel outside of their neighborhood in order to obtain essential care readily accessible in neighboring communities. For these reasons, we ask that you work to improve LGBTQ services in the Bronx by helping open an LGBTQ community center,” the members wrote. 

December 14, 2017

Dear Mayor de Blasio:
Thank you for all that your administration has done to date with regard to helping the LGBTQ community in our city.  Great progress has been made in the past several years at both the national and local levels, and we appreciate your role in helping our constituents.  As you begin to set priorities for your second term in office, we hope you will consider these issues important to our LGBTQ constituents in the Bronx.
First, the Bronx remains without an LGBTQ Community Center, and continues to be the sole borough in New York City without one. As you may know, community centers play a vital role in enriching the lives of residents and the neighborhoods they call home. Whether providing easy access to quality, safe programs and services or directing families to the appropriate channels to receive the much-needed assistance they are seeking, community centers are a crucial safety net for many. We strongly believe that no one should be forced to travel outside of their neighborhood in order to obtain essential care readily accessible in neighboring communities. For these reasons, we ask that you work to improve LGBTQ services in the Bronx by helping open an LGBTQ community center.
We would also like to stress the overwhelming experience of homelessness that transgender and those who are gender non-conforming (TGNC) face within our City. As you may know, TGNC individuals are more than twice as likely to experience homelessness as those who are non-transgender. Unfortunately, a significant amount of the City’s TGNC homeless population are teenagers. Typically, these individuals become homeless under traumatic family circumstances, including being thrown out of their homes, being abandoned, or because they feel forced to run away. According to the Human Rights Campaign in 2017, across the nation 27 TGNC individuals were brutally murdered and most victims TGNC people of color.  It is clear that we must act to address the devastating impact violence has on TGNC individuals and their families.  A recent study authored by Strength in Numbers and published by the LGBT Health and Human Services Needs showed that both people of color and TGNC individuals were much more likely to experience homelessness at some point in their lives relative to their white and non-TGNC counterparts. 
Right now, New York City only has one LGBTQ-specific shelter, Marsha’s House, and it only has 90 beds, which falls well below meeting the needs of the LGBTQ homeless community. It is for these reasons that we ask the City to take greater strides to ensure everyone has equal access to affordable and supportive housing regardless of their socioeconomic background, gender, or sexual orientation.
It is important to recognize the structural and systemic barriers that both LGBTQ and TGNC people face especially those of color who are disproportionately marginalized. Additionally, we must remain steadfast and committed to implementing programs that seek to address and remove these harmful obstacles. This can only be accomplished by working with those who directly understand the challenging times we currently find ourselves in.
With that, we ask that as the City begins implementing policies to address TGNC specific housing needs, that it strongly considers employing members of the LGBTQ community and collaborate with local LGBTQ community leaders and activists to establish LGBTQ specific housing projects.  Lastly, we ask that wherever possible priority be given to people of color and those who are historically marginalized – since many of these individuals are our constituents. 
  

We appreciate all the steps taken over the past four years, and we look forward to working with you to protect the lives and livelihoods of our LGBTQ constituents in the Bronx. 
Thank you for your attention to this matter and we look forward to your response.

NYC EMERGENCY MANAGEMENT ISSUES TRAVEL ADVISORY FOR FRIDAY EVENING


Snow expected to cause slippery conditions during the evening commute

  The New York City Emergency Management Department today issued a travel advisory for Friday evening. The National Weather Service has issued a Winter Weather Advisory for New York City through 10 p.m. Friday. A total of 1 to 3 inches of snow is forecast, with locally higher amounts possible. Light snow is expected to develop Friday between 2 p.m. and 4 p.m., and is forecast to continue through the evening commute. Snow will taper off after 7 p.m., and is expected to end around midnight. A Winter Weather Advisory for snow means periods of snow will primarily cause travel difficulties. New Yorkers should prepare for snow covered roads, slippery conditions and possible limited visibilities, and are advised to exercise caution when driving, walking, or biking.

“We are expecting snow that can cause slippery road conditions during this evening’s rush,” saidNYC Emergency Management Commissioner Joseph Esposito. “Take it slowly during the evening commute home and allow for extra travel time.”

NYC Emergency Management also advised New Yorkers to prepare for cold temperatures, as the arctic air continues into the weekend. Temperatures remain below freezing Friday night, hovering around the upper 20s, with wind chill values between 15 and 20 degrees. Temperatures are forecast to return above freezing Saturday, with highs in the upper 30s, but strong winds will cause wind chill values to remain in the 20s. Winds Saturday are expected to be between 15 mph to 20 mph, with gusts up to 30 mph. Saturday night temperatures and wind chill values are expected to be in the 20s.  Temperatures increase above freezing Sunday, with highs near 40 degrees.
Cold weather can cause or worsen health problems. Certain individuals, including the unsheltered homeless, people with disabilities and those with access and functional needs are at an increased risk for injuries, illness or death. Others at an increased risk also include people who drink heavily or use drugs and become incapacitated outdoors, or those who live in homes without heat, and:
·         Are 65 years of age or older.
·         Are infants.
·         Have certain medical conditions such as heart or lung disease, high blood pressure, diabetes.
·         Have serious mental health conditions or developmental disabilities.
·         Have disabilities or access and functional needs (e.g. limited mobility, trouble leaving home).
New Yorkers are also encouraged to check on neighbors, friends, and relatives. Please take the following precautions:

Safety Tips

For Motorists
·         Drive slowly. Vehicles take longer to stop on snow and ice than on dry pavement.
·         Four-wheel drive vehicles may make it easier to drive on snow-covered roads, but they do not stop quicker than other vehicles.
·         Use major streets or highways for travel whenever possible.
·         Know your vehicle’s braking system. Vehicles with anti-lock brakes require a different braking technique than vehicles without anti-lock brakes in snowy conditions.
·         If you are driving and begin to skid, ease your foot off the gas and steer in the direction you want the front of the car to go. Straighten the wheel when the car moves in the desired direction. If you have an anti-lock braking system (ABS), apply steady pressure to the brake pedal. Never pump the brakes on an ABS equipped vehicle.
·         Try to keep your vehicle’s gas tank as full as possible.
·         Keep the name and phone number of at least one local towing service in your car in case you break down or become stuck.

For Pedestrians

·         Exercise caution and avoid slippery surfaces; some ice may not be visible. Wear sturdy boots that provide traction to reduce slipping. Use handrails when using stairs.
·         Seniors should take extra care outdoors to avoid slips and falls.
·         Have heightened awareness of cars, particularly when approaching or crossing intersections.
·         If you have to go outdoors, wear dry, warm clothing and cover exposed skin. Keep fingertips, earlobes, and noses covered. Wear a hat, hood, scarf, and gloves.
·         Shivering is an important first sign that the body is losing heat. Shivering is a signal to return indoors.
·         Be careful when shoveling snow. Follow your doctor’s advice if you have heart disease or high blood pressure. Cold weather puts an extra strain on the heart.
·         Be safe at work. Workers who spend a lot of time outdoors are at risk for cold-related health impacts. If you are an employer, implement safe work practices, provide appropriate protective equipment, and train workers on how to stay safe during cold and winter weather.
·         Limit alcohol intake. Drinking alcohol may make you feel warmer but it causes your body to lose heat faster. Alcohol also impairs your judgment which limits your ability to take appropriate precautions or remove yourself from a dangerously cold environment in time. As a result, alcohol actually increases your chances of hypothermia and frostbite.

Prolonged exposure to cold can lead to hypothermia, frostbite, and can worsen existing medical conditions such as heart and lung diseases.

Hypothermia occurs when the body temperature drops to a dangerously low level. It can lead to death. Symptoms include:

·         Intense shivering
·         Dizziness
·         Trouble speaking
·         Lack of coordination
·         Sluggishness
·         Drowsiness
·         Confusion
·         Shallow breathing

                                   
Frostbite occurs when parts of the body freeze, such as finger, toes, ears, nose, and cheeks. It can cause permanent damage. Symptoms include:

·         Red or painful skin
·         Pale skin
·         Unusually firm or waxy skin
·         Numbness


Call 911 and follow instructions, or go to the emergency room if you see symptoms of hypothermia or frostbite.

Department of Sanitation

The NYC Department of Sanitation is pre-deploying 693 salt spreaders Friday. PLOWNYC will be activated and with 500 plows will be dispatched when more than two inches of snow accumulates, with additional plows available if necessary.

Department of Social Services

A Code Blue Weather Emergency notice is issued when the temperature is forecast to drop to 32 degrees Fahrenheit or less between 4 p.m. and 8 a.m., including National Weather Service calculations for wind chill values.  No one who is homeless and seeking shelter in New York City during a Code Blue will be denied. Should you see an individual who appears to be homeless and in need out in the cold, please call 311 and an outreach team will be dispatched to offer assistance. During Code Blue Weather emergencies, experienced outreach teams work to connect homeless New Yorkers with the following resources:

·         Shelters: During a Code Blue, shelter is available system-wide to accommodate anyone who is reasonably believed to be homeless and is brought to a shelter by outreach teams. Accommodations are also available for walk-ins.
·         Drop-in centers: All drop-in centers are open 24-hours per day, including when Code Blue procedures are in effect, and will assist as many people as possible for the duration of the emergency. Drop-in staff and the dedicated outreach teams they work closely with each and every day can also make arrangements for homeless individuals at other citywide facilities.
·         Safe havens and stabilization beds: Chronically homeless individuals may be transported directly to these low-threshold housing programs.
·         Street homeless outreach: Teams will contact vulnerable individuals on their Code Blue Priority Lists a minimum of once every four (4) hours beginning at 8 p.m. during Code Blue Alerts and once every two (2) hours beginning at 8 p.m. for Enhanced Code Blue Alerts to encourage them to accept services, including transportation to a shelter placement. DSS coordinates borough-level Code Blue efforts directly with partner City agencies, including but not limited to NYPD, DSNY, and the Parks Department.
For more information, visit nyc.gov/emergencymanagement. New Yorkers are encouraged to sign up for Notify NYC, the City’s free emergency communications program. To sign up for Notify NYC, download the free mobile application, visit NYC.gov/NotifyNYC, call 311, or follow @NotifyNYC on Twitter.

FIVE-BOROUGH BIKE SHARE: MAYOR DE BLASIO ANNOUNCES NYCDOT PLANS TO EXPAND PUBLIC BIKE SHARE WITH NEW “DOCKLESS” TECHNOLOGY


City will review and select ideas to complement Citi Bike system by bringing bike sharing to more outer-borough neighborhoods, including in the Bronx and on Staten Island

  Mayor Bill de Blasio announced that the NYC Department of Transportation is today releasing a Request for Expressions of Interest aimed at bringing bike sharing to outer-borough neighborhoods that Citi Bike has not yet reached — including in the Bronx and on Staten Island. The RFEI seeks innovative companies and ideas around next-generation “dockless” public bike share systems. The City will continue to support and strengthen Citi Bike, and prioritize new systems that complement existing service. Citi Bike has had more than 53.5 million trips since its launch in 2013.

“New Yorkers have embraced public bike sharing faster than anyone expected. These past four years, we’ve strengthened Citi Bike and doubled its size. Now it’s time to take the next big step and bring safe, reliable and affordable bike sharing to even more of the city,” said Mayor Bill de Blasio.

“Citi Bike has been a unparalleled success story in providing New Yorkers affordable, safe and green transportation, but as we are learning from around the U.S. and the world, the next generation of bikeshare in New York City may not even require that the bikes themselves be parked in docks,” said DOT Commissioner Polly Trottenberg. “With so many companies anxious to prove their skills in serving our City’s diverse, demanding and lucrative market, this RFEI allows us to create different pilots and evaluate what works best, allowing us to move far beyond the limited neighborhoods in Manhattan, Brooklyn and Queens that Citi Bike now so ably serves.”

The RFEI seeks ideas from innovative companies that can provide additional bike sharing outside of the current Citi Bike service area. This will ensure new systems do not undermine current bike share service, and bring bike share to underserved areas.

The new RFEI will allow the City to evaluate emerging dockless models for bike share service that have lower capital and operating costs and may help bring bike share service to more outer borough neighborhoods, at a faster rate, than is possible under the current model for Citi Bike expansion.  The priorities of the new RFEI will include:

·         Exploring the concepts of “dockless” models for providing bike share services and investigate the feasibility of instituting such options in areas of New York City not currently served by the City’s existing Citi Bike Program.
·         Examining the practicality of a “free-locking” bike share in New York City. Free-locking bicycles include mechanisms that unlock bikes via mobile phone and render  them inoperable when not in use.  They are otherwise free-standing, i.e. not locked to a dock, bike rack, or any other fixed object. 
·         Seeing that dockless bike share operations are safe for both riders and pedestrians, and that vendors can ensure their bikes do not obstruct other street and sidewalk uses.
·         Examining vendors’ plans and capabilities for keeping bicycles within a designated service area.
·         Determining standards for “rebalancing” (making sure bikes are evenly distributed across a service area to meet community demand) ahead of any pilot launch.
·         Exploring bike share models that are both sustainable and affordable for New Yorkers.  (In other American cities with dockless systems, trips are often priced at $1 per 30-minute ride.)

The RFEI defines a dockless system as a network of publicly available bicycles with technology that allows for all essential system and locking components to be installed in the bicycles themselves, and thus eliminates the need for docking stations. Bikes may be parked and rented from any point within the service area boundary where bicycle parking is permitted.  Bicycles may also be required to meet functional standards set by DOT and the City would define standards for any permissible parking areas as part of its role in prioritizing the safe and orderly management of public space.

The RFEI could be followed by pilots that would allow the City to determine the practicality of the service, evaluate individual vendors and their equipment, observe how multiple operators interact and coordinate in area served by multiple vendors, and monitor the rates at which New Yorkers adapt to dockless formats.

"The people of The Bronx have shown incredible enthusiasm for bike sharing programs, and this RFEI represents an excellent opportunity to explore and examine innovative new ideas that could finally make bike sharing a reality in our borough,” said Bronx Borough President Ruben Diaz Jr. “As we continue to advocate for the expansion of Citi Bike to The Bronx we should explore other potential bike sharing possibilities that could also meet the demand of Bronxites who patiently wait for such opportunities to come to our borough. I look forward to seeing the responses to this RFEI, and I will continue to work with partners at all levels to bring bike sharing to The Bronx." 

Since its arrival in 2013, bike share has proven an effective and popular component of advancing the Citys transportation, traffic safety and sustainability goals, alongside the de Blasio Administration’s commitment to double cycling by 2020.  More than 60,000 Citi Bike trips are taken per day during peak season.  Annual Citi Bike subscriptions stand at over 130,000.

The newest RFEI comes as New York City nears full implementation of the de Blasio administration’s expansion of Citi Bike, which in 2017 has expanded its reach to Upper Manhattan, brownstone Brooklyn and into Long Island City and Astoria in Queens.  In 2014, Administration officials created a new management structure for Citi Bike, bringing in Motivate, the company that has stabilized and improved Citi Bike, doubled its size to 12,000 bikes and 750 stations.  Supporting and enhancing existing Citi Bike service remains among the City’s top priorities.

The RFEI can be found here.  For more information on New York City’s bike share system please go to www.nyc.gov/bikeshare

Thursday, December 14, 2017

Nigerian Man Sentenced To 41 Months In Prison For Participating In Business Email Compromise Scams


  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that DAVID CHUKWUNEKE ADINDU was sentenced today in Manhattan federal court to 41 months in prison for participating in a wire fraud conspiracy and identity theft conspiracy.  These charges stemmed from ADINDU’s participation in fraudulent business email compromise scams that targeted thousands of victims around the world, including the United States.  Collectively, the scams attempted to defraud victims of more than $25 million.  Today’s sentence was imposed by U.S. District Judge Paul A. Crotty.

Acting U.S. Attorney Joon H. Kim said:  “As part of a business email compromise scam, David Chukwuneke Adindu tricked thousands of victims around the world into fraudulently wiring him over $25 million.  As Adindu learned today, building a business based on fraud can come with a steep price, and that is years in a federal prison.”
           
According to publicly filed court documents and statements made at public court proceedings:

Between 2014 and 2016, ADINDU participated in Business Email Compromise scams (“BEC scams”) targeting thousands of victims around the world, including in the United States.  As part of the BEC scams, emails were sent to employees of various companies directing that funds be transferred to specified bank accounts.  The emails purported to be from supervisors at those companies or third party vendors that did business with those companies.  The emails, however, were not legitimate.  Rather, they were either from email accounts with a domain name that was very similar to a legitimate domain name, or the metadata in the emails had been modified so that the emails appeared as if they were from legitimate email addresses.  After victims complied with the fraudulent wiring instructions, the transferred funds were quickly withdrawn or moved into different bank accounts.  In total, the BEC scams attempted to defraud over $25 million from victims.

ADINDU and others carried out BEC scams by exchanging information regarding: (1) bank accounts used for receiving funds from victims; (2) email accounts for communicating with victims; (3) scripts for requesting wire transfers from victims; and (4) lists of names and email addresses for contacting and impersonating potential victims.                

In addition to the prison term, ADINDU, 30, of Lagos, Nigeria, and Guangzhou, China, was ordered to pay over $1.4 million in restitution. 

Mr. Kim praised the investigative work of the Federal Bureau of Investigation.  Mr. Kim also thanked the Yahoo! E-Crime Investigations Team, and noted that the investigation is continuing.