Real Estate Developer Charged In Manhattan Federal Court For Operating Years-Long Real Estate Investment Scheme In And Around New York City

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging MICHAEL D’ALESSIO with wire fraud in connection with his years-long scheme to defraud investors in luxury real estate development projects in Manhattan, the Hamptons, Westchester, and elsewhere. D’ALESSIO was arrested this morning in New York, New York, and will be presented this afternoon before Magistrate Judge Barbara C. Moses in Manhattan federal court.  The case is assigned to U.S. District Judge Jessie M. Furman.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Michael D’Alessio, former president and CEO of a real estate development firm, allegedly sought investments to develop specific real estate projects. In reality, D’Alessio allegedly co-mingled investor funds and used them to pay his own debt, fund his own gambling, and pay personal expenses. Michael D’Alessio has lost his alleged gamble to swindle his investors, as he now faces significant time in federal prison.” 

Assistant Director-in-Charge Sweeney said: “Investors believed they would get a return on their money, so they put their faith in Mr. D’Alessio.  Instead of growing those investments, he allegedly used the money for his gambling problem and to pay off his debts.  Even though he attempted to use money from one project to pay monthly installments to investors in another project, investor funds were not used for their stated purpose. Now he will face justice, and the FBI New York will work tirelessly to get investors’ money back.”

According to the Indictment unsealed today in Manhattan federal court:[1]

A career real estate developer and general contractor, D’ALESSIO served as the president and Chief Executive Officer of a real estate investment and development firm specializing in the design, construction, and management of both residential and commercial real estate properties (“Company-1”). D’ALESSIO and Company-1 developed, and purported to develop, luxury residential real estate properties in Manhattan, the Hamptons, Westchester, and elsewhere. 

D’ALESSIO typically followed the same pattern in each real estate investment project:  he sought investments by offering for sale shares in a newly formed limited liability company (“LLC”) named after the location of the parcel of real estate to be developed and sold (the “Target Property”).  In exchange for a purchase of shares in the LLC, D’ALESSIO promised a guaranteed monthly interest payment and a share in the profits from the sale of the Target Property.  In soliciting investors, D’ALESSIO made numerous representations to potential investors, including that investor funds would be used only to develop the relevant Target Property and to cover related business expenses of the relevant LLC. 

In truth and in fact, and contrary to the representations that he made to investors, from at least in or about 2015 through in or about April 2018, D’ALESSIO misappropriated investor funds for his own use and benefit.  Upon receiving investor funds, D’ALESSIO channeled those funds through a series of bank accounts held in the name of shell companies owned and controlled by D’ALESSIO.  D’ALESSIO then used those investor funds for his own benefit, including to pay off debts, and to fund significant gambling and other personal expenses.  D’ALESSIO took additional steps to conceal his fraud, including deceiving investors regarding the progress of development on real estate projects and raising money from new investors to make monthly payments to investors in different projects in the manner of a Ponzi scheme. 

D’ALESSIO, 52, of New York, New York, is charged with committing wire fraud, which carries a maximum sentence of 20 years in prison. 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. Berman praised the investigative work of the Federal Bureau of Investigation.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Amanda Kramer and Daniel G. Nessim are in charge of the prosecution.

The charge contained in the Indictment is merely an accusation, 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 an allegation.

Four Individuals Charged In Widespread Scheme To Defraud Medicare And Other Heatlh Insurance Providers Through Fraudulent Medical Corporations

False Billing Resulting In Tens Of Millions Of Dollars In Losses

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney, Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Scott J. Lampert, Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), and Thomas P. DiNapoli, the New York State Comptroller, announced the unsealing today of an indictment charging JAMES SPINA, JEFFREY SPINA, ANDREA GROSSMAN, and KIMBERLY SPINA with participating in a widespread health care fraud scheme through their fraudulent operation of Dolson Avenue Medical (“DAM” or the “Practice”), a multi-disciplinary medical clinic located in Middletown, New York.  The defendants were all arrested today, and presented in federal district court in White Plains.  This case has been assigned to U.S. District Court Judge Kenneth M. Karas.

Berman also today announced the guilty plea of CHARLES BAGLEY, a licensed medical doctor formerly affiliated with DAM and other businesses, to conspiracy to commit health care fraud, charged in a separate Information unsealed today. 

U.S. Attorney Geoffrey S. Berman said:  “As alleged, these four defendants purported to run a legitimate medical clinic that provides care and rehabilitation to patients.  Instead, the defendants allegedly put aside their medical and fiduciary obligations for greed, attempting to bilk insurance companies and federally-funded Medicare out of more than $80 million.  Thanks to the coordinated efforts of federal and state investigative agencies, the defendants will have to answer for their alleged crimes.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “Patients go to a doctor hoping they will help them get better.  The subjects in this investigation allegedly performed treatments patients didn’t need, double billed for procedures and up-coded. The FBI New York agents and our law enforcement partners uncovered tens of millions of dollars in losses.  This type of fraud eventually ends up costing all patients more money when they seek medical attention.  We will continue to work tirelessly to stop health care fraudsters hoping to make millions while the patients they should be treating continue to suffer.”

HHS-OIG Special Agent in Charge Scott J. Lampert said:  “This indictment should serve as a warning to any health care provider that dares to put personal profit ahead of proper patient care.  HHS-OIG, along with our law enforcement partners, will continue to aggressively pursue those who seek to undermine the federally funded health care programs intended for our most vulnerable Americans.”

New York State Comptroller Thomas P. DiNapoli said:  “The Spinas and their associates allegedly swindled tens of millions of dollars by fraudulently billing health insurers including the NYS Health Insurance Program and the State Insurance Fund.  An alleged theft of this magnitude is appalling when so many hard-working people experience rising health care costs.  Now, their alleged scams have been exposed, thanks to my partnership with U.S. Attorney Berman, the FBI, the U.S. Department of Health and Human Services Inspector General and the Orange County Sheriff's Office.”

According to the allegations in the Indictment unsealed today in White Plains federal court:[1]

From 2011 through September 2017, DAM was a registered medical service corporation in New York State that purported to provide a variety of pain management and rehabilitation services including physical medicine and rehabilitation, chiropractic services, physical therapy, diagnostic testing, and acupuncture.  DAM primarily provided treatment services from its clinic located at 201 Dolson Avenue, Middletown, New York.

In addition to DAM, at least eight other corporations, including four other medical corporations, billed Medicare and other health insurance providers (the “Insurance Providers”) from 201 Dolson Avenue (the “Associated Businesses”).  On paper, DAM and the Associated Businesses appeared to be separate entities owned by multiple different qualified individuals.  But in reality, JAMES SPINA and JEFFREY SPINA, who are doctors of chiropractic - not medical doctors - were the true owners and operators of the different medical service corporations.

According to the indictment, JAMES SPINA and JEFFREY SPINA, together with GROSSMAN, made all corporate decisions for DAM and the Associated Businesses.  In particular, JAMES SPINA and JEFFREY SPINA ran the day-to-day operations of the businesses.  They controlled payroll, the hiring and firing of employees, corporate expenses, like employee compensation and rent, and billing to Insurance Providers.  Further, JAMES SPINA and JEFFREY SPINA were the financial beneficiaries of DAM and its Associated Businesses. 

JAMES SPINA and JEFFREY SPINA, however, went to great lengths to conceal their control and ownership of DAM and the Associated Businesses.  In particular, JAMES SPINA and JEFFREY SPINA recruited medical doctors and other professionals to serve as the nominee owners of DAM and the Associated Businesses.  JAMES SPINA and JEFFREY SPINA further concealed their ownership of DAM and the Associated Businesses by transferring revenues of these companies into other companies they owned.  To further disguise these transfers, JAMES SPINA and JEFFREY SPINA drafted fake lease and marketing agreements between DAM and the Associated Businesses and purported real estate and marketing companies they owned and referred to the payments as “rent” or “marketing fees.”  The defendants also used phony and non-existent addresses for the corporations so that it would appear that DAM and the Associated Businesses were operating out of separate locations.

As alleged, in operating the multiple fraudulent businesses, JAMES SPINA and JEFFREY SPINA, routinely showed little, if any, regard for which medical services or treatments were medically necessary, or even whether the services were actually provided to patients, and instead operated DAM and billed Insurance Providers to maximize DAM’s reimbursements and ultimately, their own profits.  In particular, JAMES SPINA and JEFFREY SPINA, with assistance from GROSSMAN, the bookkeeper for DAM and its Associated Businesses, and KIMBERLY SPINA, an administrator at the Practice: (a) submitted and caused to be submitted claims to Insurance Providers for medically unnecessary services and procedures; (b) submitted and caused to be submitted claims to Insurance Providers for medical services that were not rendered; (c) double billed, i.e., submitted and caused to be submitted multiple claims for the same service to two different Insurance Providers; (d) altered and fabricated medical records; and (e) obstructed and impeded audits by Medicare and other Insurance Providers to conceal their fraud.

As a consequence of the above-described scheme, the majority of the claims submitted by DAM and the Associated Businesses to Medicare and other Insurance Providers were false and fraudulent.  The submitted claims during the relevant time period totaled more than $80,000,000, resulting in losses of tens of millions of dollars. 

As alleged in a separate Information filed today in White Plains federal court:

CHARLES BAGLEY, a licensed medical doctor affiliated with DAM and the Associated

Businesses, participated in the health care fraud scheme, whereby BAGLEY, a licensed medical doctor, agreed with others to submit, and cause to be submitted, false claims to Medicare and other health care benefit programs to obtain reimbursement to which he and his co-conspirators were not entitled. 

BAGLEY, 69, of Great Neck, New York, pled guilty today to one count of conspiracy to commit health care fraud, which carries a maximum sentence of 10 years in prison.  The defendant will be sentenced at a future date.  The case is assigned to United States District Judge Nelson S. Román.

JAMES SPINA, 59, of Middletown, New York, JEFFREY SPINA, 56, of Middletown, New York, ANDREA GROSSMAN, 59, of Loch Sheldrake, New York, and KIMBERLY SPINA, 54, of Woodbourne, New York, are each charged with one count of conspiring to commit health care fraud and one count of health care fraud, each of which carries a maximum sentence of 10 years in prison.   In addition, JAMES SPINA and JEFFREY SPINA are charged with one count of obstructing and impeding a federal audit, with carries a maximum sentence of five years in prison.

The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge

Manhattan U.S. Attorney Geoffrey S. Berman praised the outstanding investigative work of the FBI, HHS-OIG, the New York State Office of the State Comptroller, and the Orange County Sheriff’s Office.  He also thanked the Orange County District Attorney’s Office, the Sullivan County District Attorney’s Office, the National Insurance Crime Bureau, Liberty Mutual Insurance, and USAA Insurance for their assistance.

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

 1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

DE BLASIO ADMINISTRATION ANNOUNCES INTENT TO CREATE PASSENGER BOARDING AREAS FOR HORSE-DRAWN CABS IN CENTRAL PARK

  The de Blasio administration announced today it will begin the rulemaking process to establish new passenger boarding areas for horse-drawn cabs at several major Central Park entrances. The new rule will designate specific locations within Central Park as passenger boarding areas for horse-drawn cabs, moving them from heavily-congested nearby locations along Central Park South.

Relocating boarding areas within Central Park will reduce the amount of time that horses spend alongside vehicular traffic, limiting horses’ interaction and potential conflict with vehicular traffic, thereby promoting the safety and well-being of the horses. The proposed rule will not reduce the overall space allotted to boarding areas. None of the proposed boarding areas are located on the Central Park Loop Drive itself.

The proposed designated locations for horse-drawn cab pick-up and drop-offs will be located at:

Grand Army Plaza: In the center lane at the Grand Army Plaza entrance to Central Park.

East 72nd Street Entrance: On the north curb approximately 50 feet west of 5th Avenue

West 72nd Street Entrance: On the east curb approximately 130 feet east of Central Park West.

West 67th Roundabout: On the north curb of the roundabout next to Tavern on the Green.

Seventh Avenue Entrance: On the east curb, approximately 20 feet north of Central Park South.

The proposed rule was drafted by the Department of Transportation, in consultation with other city agencies, and is expected to take effect later this fall. A public hearing is scheduled in October.

“DOT is happy to work with our sister agencies, the Parks Department and Department of Health and Mental Hygiene, to promote the well-being of horses and road users,” said DOT Commissioner Polly Trottenberg. “By limiting boarding of horse-drawn cabs to designated areas within Central Park, the amount of time that horses spend alongside vehicular traffic will be reduced – thus reducing potential harm to the animals.”

“We are ready to work with Health, DOT and the Central Park Conservancy to put into effect this plan to better manage the carriage traffic flow in and around Central Park, benefitting the horses and all who come from around the world to experience this city gem,” said NYC Parks Commissioner Mitchell J. Silver, FAICP.

“We look forward to working with DOT, NYC Parks, and other City agencies to implement a comprehensive plan that accommodates horse carriages in Central Park while also ensuring a broad and growing range of park user groups can enjoy the park safely,” Central Park Conservancy President and CEO Elizabeth W. Smith. “As always, our primary concern and focus is working with the city to ensure the stewardship of the Park and the public’s safe enjoyment of it.”

Street Co-Naming In Honor of Mary Vallati |

In Honor of

Mary Vallati

Celebrating the Life and Legacy of a Long-Time Community Activist

Sunday, September 9th at 1:00 PM

The Street Co-naming will take place at East Mosholu Parkway South & Perry Ave.

Wave Hill Events September 13‒September 20

Sat, September 15

Plant Stand Woodworking Workshop

Do you have more plants than windowsill space? Join master carpenter and Wave Hill Director of Facilities Frank Perrone in our Wood Shop to construct a handsome plant stand with plenty of space for your favorite plants. No previous carpentry skills required. Space is limited! Registration required, online at wavehill.org or onsite at the Perkins Visitor Center. $125. Wave Hill Members save 10%.

MEET AT PERKINS VISITOR CENTER, 9:30AM–4PM

Sat, September 15

Family Art Project: In the Path of Monarch Butterflies

The monarch butterfly begins its migration in September, heading thousands of miles south. And some stop at Wave Hill on the way! With bold, painterly marks, make large-scale, printed butterflies with gorgeous, orange-red-black patterned wings. Participate in a group installation on the Conifer Slope, displaying milkweed and butterfly prints that show the inspiring journey of the monarch butterfly. Free, and admission to the grounds is free until noon.

WAVE HILL HOUSE, 10AM‒1PM

Sat, September 15

Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Sat, September 15

Wave Hill History Walk

Discover the fascinating history of Wave Hill’s architecture and landscape on a walk with a Wave Hill Garden Guide. Hear about the people who once called Wave Hill home, among them Mark Twain, Theodore Roosevelt, Bashford Dean and Arturo Toscanini. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 1PM

Sat, September 15

Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. In a new collaboration, Wave Hill is partnering with the American Society of Botanical Artists (ASBA) to produce and host ASBA’s 21st Annual International. ASBA’s mission is to provide a thriving, interactive community dedicated to perpetuating the tradition and contemporary practice of botanical art. This juried exhibition consists of two-dimensional original botanical art, including some specimens found at Wave Hill. In the Sunroom Project Space, Ashton Agbomenou’s new project stems from his time in Wave Hill’s 2018 Winter Workspace. Seeking synchronicity in the African diaspora, Agbomenou constructs visual mementos through his collage-like, layered-painting process, drawing inspiration from Wave Hill’s natural resources. Bronx-born, Dominican-American artist Yelaine Rodriguez works on a new series for the Sun Porch. Using photography, video and performance, Rodriguez creates a unique narrative that examines self-identity and draws inspiration from the colors and textures in nature and from her experience of Wave Hill’s landscape during the 2018 Winter Workspace program. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Sun, September 16

Family Art Project: In the Path of Monarch Butterflies

The monarch butterfly begins its migration in September, heading thousands of miles south. And some stop at Wave Hill on the way! With bold, painterly marks, make large-scale, printed butterflies with gorgeous, orange-red-black patterned wings. Participate in a group installation on the Conifer Slope, displaying milkweed and butterfly prints that show the inspiring journey of the monarch butterfly. Free with admission to the grounds.

WAVE HILL HOUSE, 10AM‒1PM

Sun, September 16

Woodland Restoration Volunteer Event

Join us for a morning restoring and maintaining the Herbert and Hyonja Abrons Woodland. Led by experienced Wave Hill staff, learn to identify and remove invasive species, and apply your new knowledge to helping remove these pesky plants from these wooded slopes. Volunteers may also help with trail maintenance and tree planting. Ages 10 and up welcome with an adult. Free, and admission to the garden is free to volunteers as well. Registration required, online at wavehill.org or onsite at the Perkins Visitor Center.

ON THE GROUNDS, 10AM

Sun, September 16

Butterfly Walk

A bevy of butterflies (and their caterpillars) animate Wave Hill’s gardens in early fall. Join naturalist Paul Keim for a short introduction to butterfly behavior, then head out for a walk to observe monarchs and other butterflies in the gardens. Learn about their habits and habitat, food sources and adaptations for survival. Ages 10 and older welcome with an adult. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 1PM

Sun, September 16

Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

Mon, September 17

Closed to the public.

Tue, September 18

Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Tue, September 18

Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. In a new collaboration, Wave Hill is partnering with the American Society of Botanical Artists (ASBA) to produce and host ASBA’s 21st Annual International. ASBA’s mission is to provide a thriving, interactive community dedicated to perpetuating the tradition and contemporary practice of botanical art. This juried exhibition consists of two-dimensional original botanical art, including some specimens found at Wave Hill. In the Sunroom Project Space, Ashton Agbomenou’s new project stems from his time in Wave Hill’s 2018 Winter Workspace. Seeking synchronicity in the African diaspora, Agbomenou constructs visual mementos through his collage-like, layered-painting process, drawing inspiration from Wave Hill’s natural resources. Bronx-born, Dominican-American artist Yelaine Rodriguez works on a new series for the Sun Porch. Using photography, video and performance, Rodriguez creates a unique narrative that examines self-identity and draws inspiration from the colors and textures in nature and from her experience of Wave Hill’s landscape during the 2018 Winter Workspace program. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Thu, September 20

Early Closing: Annual Wave Hill Gardeners’ Party

Wave Hill closes at 3PM to dress for this annual benefit, an evening that raises crucial funds to support our renowned gardens and horticulture program. Also, the Kate French Terrace in Wave Hill House will be closed all day.

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–5:30PM,  March 15–October 31. Closes 4:30PM, starting November 1.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

  

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

CAROLYN MALONEY ENDORSES ALESSANDRA BIAGGI FOR STATE SENATE

  Congresswoman Carolyn Maloney is endorsing Alessandra Biaggi for State Senate in District 34 in the Democratic primary on Thursday, September 13.

“Just as we need to retake the House, it’s essential that the New York State Senate become and remain truly Democratic,” Maloney said. “It’s way past time to pass a state Equal Rights Amendment, provide access to family planning, fix the tenant protection rules, strengthen our public education system, and so much more that a solid Democratic State Senate can do to protect all New Yorkers. I’m endorsing Alessandra Biaggi because I know she will be a leader in passing that legislation and in standing up for her district and all New Yorkers.”

“It is an exceptional honor to be endorsed by Rep. Carolyn Maloney, a ground breaking woman legislator with a long list of accomplishments,” Biaggi said. “I hope to learn from her how to be an effective fighter for New Yorkers.”

ASSEMBLYMAN DINOWITZ STATEMENT ON STOP-GAP SPEED CAMERA RESOLUTION

   Five weeks after inaction from the New York State Senate Republicans resulted in the shutdown of speed camera enforcement near 140 schools throughout New York City, the Governor and NYC Council have implemented a workaround for New York City to enforce speed camera violations using state DMV records. Assemblyman Jeffrey Dinowitz issued the following statement applauding the temporary solution and continuing his call for the State Senate to pass an expansion of the life-saving speed camera program:

“While the failure of New York’s State Senate majority to do their jobs has put children’s lives in danger, I am happy to see that Governor Cuomo and Council Speaker Johnson were able to come up with a temporary solution that will cause drivers to think twice before speeding near schools. A speed camera extension still should be passed through the state legislature to ensure longevity and to clarify any questions on legality, but I thank our local Councilman Andrew Cohen for his help in pushing for this compromise to protect kids right now.

However, I cannot ignore the blatant disregard by Republican State Senate leadership for the safety of our children in the Bronx and all over New York City. Their insistence on using life-saving speed cameras as a pawn is reprehensible and a dereliction of their moral and constitutional responsibility to protect the lives of all New Yorkers – regardless of political affiliation or geographic region.

The New York State Assembly passed two bills – one to extend the existing speed camera program along with several regional tax extenders and another to extend and expand the program (which I support and am a co-sponsor of). The Democratic State Senate conference, including minority leader Andrea Stewart-Cousins and deputy minority leader Jeffrey Klein (who also led the charge to create the original speed camera program in 2013) have lined up enough votes in the State Senate to pass a speed camera renewal. The only thing stopping this common sense legislation is the malfeasance of the State Senate majority who refused to even hold a vote before they adjourned for their summer vacation and their subsequent unwillingness to correct this mistake.”

EDITOR'S NOTE:

This sets an unprecedented situation which now usurps the legislative power of the State Senate and State Assembly if the governor can just make an executive order like this. This is exactly what Governor Cuomo says is being done by President Trump to bypass Congress and the U.S. Senate. 

For a member of the State Assembly to approve of this measure to go around the State Senate and State Assembly says only one thing - that the State Senate and State Assembly are not needed and should be abolished because the state legislature can not do its job, and Assemblyman Dinowitz is saying that he approves of this.

Assemblyman Dinowitz since you are no longer needed as are your fellow members of the State Assembly and State Senate will you step down because all the governor has to do is sign an Executive Order. 

CUOMO’S TEMPER ERUPTS AS CYNTHIA CLEANS HIS CLOCK, NAILING HIM ON CORRUPTION, CENTRISM & MISMANAGEMENT

The governor displays why he’s refused to do any 1:1 debates while in office

As Cynthia described her positive, progressive agenda, Angry Cuomo lied, dodged, and blew up multiple times during debate

  In just the display his advisors were hoping to avoid, angry Andrew Cuomo showed his classic temper, growing testy as Cynthia Nixon contrasted her positive, progressive vision with his failings and lies for 60 minutes during tonight’s debate at Hofstra.

“Now we know why Andrew Cuomo hates debates so much,” Cynthia for New York spokeswoman Lauren Hitt said tonight. “The governor was visibly angry about Cynthia contrasting his corrupt, centrist administration with her progressive vision for New York -- and his resulting temper flare-ups and rants told the story.”

Throughout the debate, Cynthia pressed the governor on a range of uncomfortable topics, like the multiple guilty verdicts on public corruption against his top aides; his work behind the scenes to help create and maintain Republican state senate; his gross mismanagement of the MTA; and his obsession with pleasing his billionaire and corporate donors.  She also displayed a detailed knowledge of the inner workings of the state government, and a positive vision for all New Yorkers, not just the wealthy.

On multiple occasions, Angry Cuomo lost his cool, wagging his finger at Cynthia, telling her to stop talking, and correcting a moderator on the premise of his question. He even went on a bizarre rant about how Cynthia was not actually a person, but a corporation - in a reprise of Mitt Romney’s famous line. The Governor even refused to answer a question at the end of the hour, instead trying to take over the debate and ask Cynthia questions like he was the moderator.

The debate win for Cynthia comes on the heels of major endorsements from progressive leaders and organizations throughout the state and nation, including Alexandria Ocasio-Cortez, council member Brad Lander, Lt. Governor candidate Jumaane Williams, former Speaker of the City Council Melissa Mark-Viverito, Council Members Menchaca, Van Bramer and Reynoso, Assemblymember Andrew Hevesi, Assemblymember Thomas Abinanti, Assemblymember O’Donnell, senate candidate Jessica Ramos, senate candidate Julia Salazar, senate candidate Robert Jackson, and a slate of elected officials in the Capital District and Hudson Valley. Nixon has also been endorsed by major progressive groups including Indivisible, New York City DSA, Buffalo DSA, Syracuse DSA, Brooklyn Young Democrats (BYD), the Muslim Democratic Club of New York (MDCNY), Indivisible Brooklyn, Tenants PAC, the Jewish Vote, Our Revolution, Justice Democrats, the Progressive Change Campaign Committee, Make the Road Action, New York Communities for Change, Citizen Action, the New York Progressive Action Network, 350 Action, and the Working Families Party.

In just five months, Cynthia’s people-powered campaign has received over 42,960 individual contributions, which sets a record for the highest number of contributions for any Democratic candidate for governor in New York history. The number of contributions also surpasses the total Gov. Cuomo has received in 16 years spanning four separate gubernatorial campaigns. (More detail here). Cynthia’s social media following has also ballooned in recent weeks, and seriously outpaces the 8-year incumbent governor.

EDITOR'S NOTE:

It should be noted that this came from Cynthia for New York.

DE BLASIO ADMINISTRATION GREENLIGHTS BQX STREETCAR AND ANNOUNCES ENVIRONMENTAL REVIEW WILL BEGIN THIS WINTER

Proposed streetcar will serve neighborhoods with 400,000 residents along growing Brooklyn- Queens Corridor; generate $30 billion in economic impact

  The de Blasio Administration announced that it will move forward with the proposed Brooklyn Queens Connector (BQX) streetcar following the completion of a two-year feasibility study. Despite two decades of rapid growth in population and jobs on the Brooklyn-Queens waterfront, public transit has not kept pace. At full implementation, the state-of-the-art streetcar will increase public transit options for neighborhoods with over half a million New Yorkers living and working along the growing Brooklyn-Queens waterfront corridor, including 40,000 New York City Public Housing Authority residents. The revised route will connect Astoria, Long Island City, Greenpoint, Williamsburg, the Brooklyn Navy Yard, Downtown Brooklyn, and Red Hook. The full report is available here.

“The Brooklyn-Queens waterfront has experienced incredible growth. Now it's time for our transit system to catch up,” said Mayor Bill de Blasio. “The BQX is one of the biggest, most ambitious projects in a generation. It will be a challenge, but New York City is taking it on.”

“BQX taps into state-of-the-art transit tech to respond to and build upon the evolution of the Brooklyn Queens Waterfront,” said Deputy Mayor for Housing and Economic Development Alicia Glen. “With more than half a million people now living and working along the projected line and further growth to come, BQX will transform how our city moves.

Construction and implementation of the streetcar is estimated to cost $2.73 billion and generate $30 billion in economic impact and approximately $1.4 billion in value capture to finance its construction. The City announced it will seek federal funding, among other sources, to deliver the project. First-year ridership is expected to be 50,000 per day.  The BQX represents an opportunity to proactively invest in a modern, resilient mode of public transportation that will:

• Connect mixed-income neighborhoods to jobs and transit hubs
• Provide affordable, reliable, and accessible service
• Support transit-oriented development and safer streets

“As the Brooklyn-Queens waterfront continues to grow, adding new residents and jobs each year, the City must pursue multiple transportation solutions,” said New York City Department of Transportation Commissioner Polly Trottenberg. “The BQX has the potential to be an integral part of our city’s expanding transportation system.  It will complement and connect to our subway and bus system, the NYC ferry, and bike share, while transforming city streets.”

“The Brooklyn-Queens Connector will serve over half a million New Yorkers who live and work along the East River waterfront and need modern transportation options that meet their everyday needs,” said NYCEDC President James Patchett. “The BQX will link long-disconnected neighborhoods, shorten commutes to school and work, and provide a 21st century solution to our city’s transit challenges.”

The BQX will bring much-needed connectivity to other existing modes of mass transit, including subways, buses, ferries, and CitiBike. The expanded connections will generate economic activity and boost access to emerging job clusters, cultural centers, academic institutions, world-class waterfront parks and more. 

Community stakeholders will have opportunities to provide input as the proposal advances to the environmental review and advanced design stages. The City will also further analyze project delivery methods, streetcar operations, and project implementation. 

The environmental impact study process will commence this winter, followed by ULURP in 2020. Construction is expected to begin in 2024 and end in 2029.

Since the Mayor announced the proposal at a State of the City address in 2016, the BQX City team has studied key aspects of designing, building, and operating a streetcar service. The study was informed by robust public engagement conducted through a numerous community meetings and workshops, and input from elected officials and community organizations along the corridor.

Bronx Dems Barbecue and Softball Game Rescheduled to Sunday September 9th

This came in from the Bronx Dems.

Eleven Individuals Indicted For Social Security Fraud Related To Puerto Rico

The total loss for SS is $728,062.40; One Defendant Charged with Defrauding FEMA for Hurricane Maria Relief

  SAN JUAN, P.R. – On Aug. 23 and 24, 2018, a Federal Grand Jury in the District of Puerto Rico returned seven separate indictments charging 11 individuals with fraud against the Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced U.S. Attorney Rosa Emilia Rodríguez Vélez for the District of Puerto Rico. These cases were investigated by the Social Security Office of Inspector General (SS-OIG) with the collaboration of the Department of Homeland Security Office of Inspector General, U.S. Health and Human Services-Office of Inspector General, and the Puerto Rico Police Department.

The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits.

Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence would then be evaluated by SSA to determine the individual’s medical impairments and determine the effect of the impairment on the claimant’s ability to work on a sustained basis.

Six indictments charged 10 individuals with theft of government property, concealment, or failure to disclose work activity to SSA, and false statements or representations to the SSA. These defendants knowingly and willfully embezzled, stole, and converted to their own use the Social Security Disability Insurance Benefit payments to which the defendants knew that they were not entitled. The seventh indictment charges Teresa González-Hernández with 40 counts of wire fraud against SSA.

The defendants who are alleged to have accepted by fraud the Social Security Disability Insurance Benefit payments, knowing that they were not entitled to the same, are: Evelyn Morales-Calderón and Victor Soriano-Morales (son of Evelyn Morales) received $190,110.00; Mario Zayas-Rodríguez and Elvin Santiago-Rodríguez (employer of Mario Zayas) received $118,098.20; José Alcazar-Román received $97,004.80; Alvin Alvelo-Crespo received $92,101.50; Abraham Burgos-Torres and Karla Burgos-Colón (daughter of Abraham Burgos) received $90,335.50; Nelson Concepción-Santana received $41,261.00; Wanda Rivera-Martínez received $41,204.40; and Teresa González-Hernández received $57,947.00.

Defendant Alvin Alvelo-Crespo was also charged with healthcare fraud. The defendant fraudulently caused Medicare to pay approximately $8,545.33 based on fraudulent claims. This defendant is also facing one count of Fraud in Connection with Major Disaster (Hurricane María) or Emergency Benefits. Alvelo-Crespo falsely represented to FEMA that his combined family pre-disaster gross income was $9,264.00 and that the residence located at Almirante Norte in Vega Baja, Puerto Rico was his primary residence when Hurricane María struck Puerto Rico. In fact, however, the defendant’s combined family pre-disaster gross income was higher than $9,264.00 and the residence located at Almirante Norte was not his primary residence at the moment Hurricane María struck Puerto Rico. The defendant received $500.00 for Critical Needs Assistance; $14,282.79 for Home Repair Assistance; $10,431.15 for Personal Property Assistance; and $1,486.00 for Rental Assistance, for a total of $26,699.94. All this assistance was authorized, transported, transmitted, transferred, disbursed or paid by, electronic fund transfers into his bank account.

Defendant Teresa González-Hernández was a social worker at Entity A, an entity located in San Juan, Puerto Rico that assists homeless individuals. Her victim with initials J.L.M, was a client or beneficiary of Entity A. On or about Sept. 4, 2008, González-Hernández abused her position of trust as a social worker for J.L.M. and opened a joint account with J.L.M. at Scotiabank of Puerto Rico. On Oct. 28, 2010, J.L.M. requested SSA that his disability benefits, which were later automatically converted to retirement benefits, be directly deposited into the joint account. After J.L.M. died on Nov. 19, 2010, González-Hernández failed to notify SSA about his death, and the DIB and Retirement benefits belonging to J.L.M. continued to be deposited into the joint account. González-Hernández embezzled the benefits that SSA issued to J.L.M., benefits which she knew she was not entitled to. As a result of the scheme, between Jan. 26, 2011, and continuing through Nov. 23, 2016, SSA made 71 electronic payment transactions to the joint account totaling $57,947.00.

If convicted, the defendants charged with SSA fraud could face a maximum penalty of 10 years in prison; the defendant charged with Fraud in Connection with Major Disaster (Hurricane María) or Emergency Benefits faces a maximum penalty of up to 30 years in prison and the defendant charged with wire fraud faces a maximum penalty of up to 20 years in prison. All defendants are subject to a fine of up to $250,000.00. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.

The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.

Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims, and to be especially cautious of anyone who contacts you seeking personal identifying information or financial information. Members of the public who suspect fraud involving disaster relief efforts, or who believe that they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov. Learn more about the NCDF at www.justice.gov/disaster-fraud