Former MLB All-Star Pitcher Esteban Loaiza Pleads Guilty to Possessing 20 Kilograms of Cocaine with Intent to Distribute

  Former Major League Baseball All-Star pitcher Esteban Loaiza pleaded guilty in federal court today to an Information charging him with possession of 20 kilograms of cocaine with intent to distribute.

In a change of plea hearing before United States District Judge Janis L. Sammartino, Loaiza admitted that on February 9, 2018, he took possession of a silver Mercedes-Benz sport utility vehicle that he knew to contain cocaine. He further admitted that he drove the SUV to a townhouse he rented in Imperial Beach, California, where he transferred 20 kilograms of cocaine to another vehicle in the garage, and that he did so with the intent to distribute the cocaine to another person.

Loaiza will remain on bond and subject to electronic location monitoring pending his sentencing hearing.

Sentencing is scheduled to occur before Judge Sammartino on November 2, 2018 at 10:30 a.m.

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

DEFENDANTS                                            Case 18CR1743-JLS                        

Esteban Antonio Loaiza                                  Age: 46                                   Imperial Beach, CA

SUMMARY OF CHARGES

Possession of Cocaine with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)

Maximum penalty: Life imprisonment and $10,000,000 fine

AGENCIES

United States Drug Enforcement Administration

United States Border Patrol

San Diego Sheriff’s Department

Wave Hill Events August 23‒August 30

Thu, August 23   Stories in the Garden

Each week, Wave Hill educators share some of their favorite nature stories. These stories—classics and more—will come to life through interactive book readings, sing-alongs and movement. Programs are held outdoors. Rain cancels. Ideal for children ages three to six with an adult. Free with admission to the grounds.

ON THE GROUNDS, 11AM

Sat, August 25    Family Art Project: Delicate Dragonfly Wings

Study these ancient insects and see them fly upwards and downwards, backwards and forwards, or hover in mid-air. Collect transparent materials and create delicate, iridescent—even stained-glass-like—shimmering wings that mimic those of the dragonfly! Free, and admission to the grounds is free until noon.

WAVE HILL HOUSE, 10AM‒1PM

Sat, August 25    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, August 25   Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. Ecological Consciousness: Artist as Instigator continues Wave Hill’s efforts to examine the ways that artists engage in ecological projects that present a call to action. The exhibition documents environmental art that explores persistent problems throughout New York City. In the Sunroom Project Space, Priyanka Dasgupta and Chad Marshall’s installation uses traditional landscape architecture, such as a conventional English garden maze, to expose the instability of identity in the United States. Working collaboratively since 2015, Dasgupta and Marshall’s work explores the dichotomy of the sanctuary—its ability to protect as well as restrict. In the Sun Porch, Katie Westmoreland’s presentation of kinetic tapestries responds to the space’s architecture, evoking the patterns cast by sunlight through trees and plants. Her immersive installation utilizes the passing light and shadow patterns of the day as active mediums in her work, calling attention to the sun’s enduring, inspirational qualities. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Sun, August 26    Family Art Project: Delicate Dragonfly Wings

Study these ancient insects and see them fly upwards and downwards, backwards and forwards, or hover in mid-air. Collect transparent materials and create delicate, iridescent—even stained-glass-like—shimmering wings that mimic those of the dragonfly! Free with admission to the grounds. 

WAVE HILL HOUSE, 10AM‒1PM

Sun, August 26    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, August 27

Closed to the public

Tue, August 28    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

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.

Cynthia for New York - New Study Reveals Only 3.2% of NY College Students Receive “Free College” Cuomo Promised

  Cuomo’s fake “Free College” program is all about the headlines, not fairness for students

   After putting out taxpayer-funded ads and campaign ads for months touting his “Free College” program, a new study by the Center for an Urban Future reveals that just 3.2 percent of 633,543 undergraduates in New York State benefit from the Excelsior Scholarship Program.

The analysis also found that a whopping 68 percent of New Yorkers who applied for the Excelsior Scholarship were denied -- a total of 43,513 out of 63,599 applications. The study also found that the Excelsior program’s heavy credit requirements -- at least 30 credits in every year of enrollment -- screened out the majority of Excelsior applicants who need it most.

“For Andrew Cuomo, it turns out that promising ‘free college’ for all is just another way to grab headlines. He attached so many barriers that his Excelsior Scholarship program only serves 3.2 percent of SUNY and CUNY students,” said Cynthia Nixon. “It’s false advertising for him to be running ads on the subway, on television, and online touting his fake free college program. When I am governor, we will have a real free College for All program.”

“This study reveals what students already know — college in New York State isn’t tuition-free,” said Corrinne Greene, a 21-year old rising senior at Brooklyn College. “I was overjoyed at the announcement of Excelsior, but because I took a semester off when I transferred from a private university I couldn’t afford, I don’t qualify. Like so many others, I’m left with a huge gap in financial aid, and panic around how to pay for school, books, and housing on top of my existing student loans. With rising tuition, crumbling campuses and poverty wages for adjuncts, SUNY and CUNY need real investment -- and a governor who believes in education as a right, and not a publicity stunt.”

Cynthia’s College for All program will pay full tuition for students eligible for state TAP grants -- in other words students whose families earn up to $80,000 -- and then allow students to use their Pell grants to cover additional expenses like room and board.

The Center for an Urban Future is an independent think tank focused on helping low-income New Yorkers climb into the middle class.

The study can be viewed HERE.

Cynthia’s Educate NY plan can be viewed HERE.

12 Defendants Charged In Manhattan Federal Court With Nationwide Cellphone Fraud Scheme, Which Caused Losses Of Over $1 Million

This Fraud Ring Used the Dark Web to Purchase Customers’ Personal Identifying Information, Accessed More Than 3,300 Customers’ Accounts, and Fraudulently Obtained More Than 1,200 Cellphones

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent in Charge of the New York Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced charges today against 12 individuals involved in a nationwide fraud conspiracy from 2014 to the present: ISAAC CONCEPCION AQUINO, a/k/a “Kaka,” MARIO DIAZ, a/k/a “Memin,” TOMAS GUILLEN, a/k/a “Diddy,” RONNIE DE LEON, JOSE ARGELIS DIAZ, JOEL PENA, JHONATAN DIAZ, a/k/a “Nino,” EDDY MORROBEL, RUDDY SANCHEZ, MICHAEL ROQUE, RAYNIEL ROBLES, and JOANDRA TEJADA GONZALEZ.  In connection with the fraud, the defendants and their associates improperly accessed more than 3,300 customers’ cellphone accounts, fraudulently obtained more than 1,200 cellphones, and caused losses exceeding $1 million.  Six defendants were arrested in the Southern District of New York and will be presented today before Magistrate Judge Katharine H. Parker: MARIO DIAZ, a/k/a “Memin,” TOMAS GUILLEN, a/k/a “Diddy,” JOSE ARGELIS DIAZ, JHONATAN DIAZ, a/k/a “Nino,” EDDY MORROBEL, and RAYNIEL ROBLES.  In addition, RONNIE DE LEON was arrested this morning in Ohio and will be presented this afternoon, in the Southern District of Ohio, before Chief Magistrate Judge Elizabeth A. Preston Deavers.

The following defendants remain un-apprehended at this time: ISAAC CONCEPCION AQUINO, a/k/a “Kaka,” JOEL PENA, RUDDY SANCHEZ, MICHAEL ROQUE, and JOANDRA TEJADA GONZALEZ.

U.S. Attorney Geoffrey S. Berman said:  “The defendants allegedly engaged in a sophisticated nationwide conspiracy to hack into the accounts of ordinary people and exploit those accounts for their own gain, obtaining valuable electronic devices at others’ expense.  The defendants allegedly perpetrated their scheme through various means, including buying victims’ account information over the dark web.  Thanks to the dedicated work of our partners at HSI, this alleged ring of cellphone fraudsters will now face the call of justice.”

HSI Special Agent in Charge Melendez said:  “Those arrested today were allegedly part of a fraud network operating in New York, the Dominican Republic and the Darknet.  Their activities left a trail of unsuspecting victims across the United States and cost businesses significant losses.  They traveled to 30 states to obtain cellphones that were later sold through fencing operations in the Bronx. Telecommunications fraud is a huge business and where there is a profit to be made by criminals, HSI’s longstanding El Dorado Task Force will follow the money to bring those perpetrators to justice.”

According to the allegations in the Complaint unsealed today[1]:

From at least 2014 to the present, a group of individuals (the “Fraud Ring”) perpetrated a wide-ranging scheme to obtain valuable, new electronic devices – primarily iPhones, but also iPads, tablets, and watches – at others’ expense.  During the course of the conspiracy, the Fraud Ring fraudulently obtained more than $1 million worth of devices.  To facilitate the scheme, the Fraud Ring traveled to at least 30 different states, but often brought or shipped the fraudulently obtained cellphones back to the Bronx, where they regularly sold them.

The Fraud Ring regularly engaged in intrusions into existing customers’ accounts with cellular service companies and obtained new phones or “upgrade” phones by paying only a small fee in the store, while charging the vast majority of the purchase price to existing customers’ accounts, without the consent or knowledge of these existing customers.  The scheme’s victims therefore included both customers, whose identities were stolen and/or whose accounts were accessed without authorization, and cellphone service providers, which typically bore financial losses for fraudulently obtained devices.

The Fraud Ring used various mechanisms to perpetrate their scheme, including buying cellphone customers’ personal identifying information (“PII”) over the dark web; phishing, in which the Fraud Ring sent a link to cellphone customers that, if pressed, allowed the Fraud Ring to hack into the customers’ accounts; using fraudulent identifications to persuade retail store employees that conspirators were someone else; and opening accounts using social security numbers that appeared to match conspirators’ names but in fact belonged to victims.

During the course of the investigation, HSI executed a search warrant on a suspected hub of the Fraud Ring in Mt. Vernon, New York (the “Residence”).  Law enforcement encountered six of the 12 charged defendants in the Residence and seized (among other things) approximately 47 electronic devices, including 12 computers.  Two IP addresses associated with the Residence were used to access at least approximately 3,300 cellphone company customer accounts, and to fraudulently purchase at least approximately 1,294 cellphones.  The seized computers contained various indicators of involvement in the fraud, including:

• A 15-minute-long “How-to” video, which detailed the steps necessary to commit cellphone fraud, including how to use victim PII to fraudulently purchase devices;
• Many indicators that the computers had accessed the darkweb, several websites where victim PII is sold (sometimes for as little as $3), and cryptocurrency exchanges, including for Bitcoin; and
• Numerous Google searches in furtherance of the fraud (e.g., “best buy upgrade checker phone,” “att activate phone,” “verizon.com check order status,” “check my order status sprint,” “add authorized user last name,” “California driver license number format,” “Utah driver license photo,” and “most common last names for Spanish rich people”).

Each of the 12 defendants is charged with one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum penalty of two years in prison, which must run consecutively to any other term of imprisonment imposed.  The maximum and mandatory minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

The charges contained in the Complaint 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.

Brooklyn Man Charged In Connection With String Of Arsons In Midtown Manhattan

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Daniel A. Nigro, the Commissioner of the New York City Fire Department (“FDNY”), announced today the arrest of JAMAL DEESE in connection with a string of arsons in New York, which occurred from August 5, 2018, through August 7, 2018.  DEESE was arrested yesterday evening, and was presented today in Manhattan federal court before the U.S. Magistrate Judge Katharine H. Parker.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Jamal Deese set more than a dozen fires in midtown Manhattan locations during a three-day span.  His alleged serial arsons threatened public safety and necessitated the deployment of valuable firefighting and law enforcement resources.  Thanks to the work of the ATF, NYPD, and FDNY, Deese is in custody and will be prosecuted.” 

ATF Special Agent-in-Charge Ashan M. Benedict said:  “The defendant’s alleged conduct placed New Yorkers, commuters, and visitors at extreme and indiscriminate risk of injury or worse, and had the potential to cause extensive damage to businesses and property.  While we are fortunate that there were no known injuries, the defendant will nonetheless face the consequences for his alleged arson spree.  I’d like to thank the members of ATF’s SEAR Task Force and the U.S. Attorney’s Office for their efforts thus far in this investigation.”

NYPD Commissioner James P. O’Neill said:  “The potential for serious injury or death was very real as Jamal Deese allegedly went on a spree across a swath of Midtown Manhattan.  Fortunately, the collaborative efforts of our city and federal partners stopped him before further mayhem could occur.  Today’s arrest is the result of the type of quick and effective investigative work performed each day in New York City.”

FDNY Commissioner Daniel A. Nigro said:  “I’m proud of the outstanding collaborative investigation by the Arson Response Task Force to apprehend an individual whose alleged crimes needlessly put many lives in danger.  Arson is a dangerous, potentially deadly crime; and thanks to our Fire Marshals, NYPD Detectives and ATF agents, an alleged serial arsonist has been stopped before anyone could be injured.”

According to the allegations in the Complaint sworn out in Manhattan federal court:[1]

From August 5, 2018, through August 7, 2018, DEESE set trashcan fires in the bathrooms of at least four midtown restaurants.  He also set trashcan fires outside and inside the Amtrak terminal at Penn Station.  During the course of his arson spree, DEESE ignited at least 14 fires at Penn Station and in the restaurants.  DEESE was apprehended when he returned to one of the restaurants in which he had previously ignited a fire.

DEESE, 24, of Brooklyn, New York, is charged with four counts of arson, each of which carries a mandatory minimum sentence of five years in prison and a maximum 20 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 the judge.

Mr. Berman praised the outstanding investigative work of ATF, NYPD, FDNY, and the Strategic Explosive and Arson Response Task Force. 

The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

BRONX MAN SENTENCED TO ONE YEAR IN JAIL FOR PAYING 13-YEAR-OLD GIRL FOR SEX

  Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to one year in jail for paying a 13-year-old girl for sex. 

 District Attorney Clark said, “It’s rare that someone who patronizes a prostitute gets jail time. This sentence shows we will not stand for this type of degradation of a minor. The defendant paid the victim, who was 13-years-old at the time, for sex. For his actions, the defendant will spend one year in jail.”

 District Attorney Clark said Steven Valdez, 29, of 3550 Bivona Street, pleaded guilty to Endangering the Welfare of a Child on June 27, 2018. He was sentenced today to one year in jail by Bronx Criminal Court Judge Bahaati Pitt.

 According to the investigation, the defendant paid the 13-year-old sex trafficking victim for sex and also engaged in sexually graphic conversations, including talks about pricing for services. The connection between the defendant and the victim was confirmed by the complainant, as well as communications records obtained by the Bronx District Attorney’s Office. The case derives from a November 2017 sentencing of a defendant who pimped young girls, including the 13-year-old victim who was paid for sex by Valdez.

 District Attorney Clark thanked Detective George Munoz of the NYPD/FBI Joint Task Force on Human Trafficking and Hubert Olszewski, Digital Forensic Examiner of the Bronx District Attorney’s Office, for their assistance in the case.

Cynthia Nixon, Jumaane Williams, Melissa Mark Viverito to Meet With Childcare Providers in the South Bronx

Democratic candidate for governor Cynthia Nixon, democratic candidate for lieutenant governor Jumaane Williams, and former Speaker of the New York City Council Melissa Mark-Viverito joined childcare providers on Friday, today at Esther’s Beauty Salon on Walton Avenue to celebrate the vital commitment of home child care providers who care for our children. Together, with small business owners, they also addressed the racist ad released by Governor Cuomo and his running mate Kathy Hochul.

Cynthia and Jumaane support the greatest expansion of child care in the history of New York State by adding 100,000 subsidized child care slots, and once elected, Governor Nixon will invest in supporting the workforce in order to improve the quality of child care opportunities.

Above - Candidate for New York State Governor Cynthia Nixon talks about the problems which child care providers face in trying to run the small business they are providing to the community.

Below - Councilman Jumaane Williams and candidate for Lieutenant Governor addresses a question from a New York 1 reporter about his closing of a small business, and the debt he owes on the business.

Above - Candidate for Governor Cynthia Nixon, Candidate for Lieutenant Governor Jumaane Williams, and former City Council Speaker Melissa Mark-Viverito listen to the problems of not only running a business in the Bronx, but a child care business.

Below - Former City Council Speaker Melissa Mark-Viverito speaks to some of the regulations the state places on child care facilities.

Cynthia Nixon: "Cuomo is so incompetent that he literally can’t make the trains run on time."

"Today alone, I will ride the subway more than Andrew Cuomo has in eight years. He has no idea what it’s really like"

As the cover of today's New York Post calls attention to the complete meltdown happening daily on #CuomosMTA..

...Democratic candidate for governor Cynthia Nixon has released the following statement: 

"The governor wants to make this race about qualifications and experience? Great. Let’s talk about his. Andrew Cuomo is so incompetent that he literally can’t make the trains run on time.

"Andrew Cuomo is so out of touch that he’s only taken the subway twice as governor. Both were staged photo ops. Today alone, I will ride the subway more than Andrew Cuomo hasin eight years. He has no idea what it’s really like to ride the subway these days. He doesn’t understand what a nightmare it’s become. 

"Well I do. I ride the subway every day. And when I’m governor, I will do what Andrew Cuomo has utterly failed to do: make rescuing our subway a priority. 

"No more excuses. Stop passing the buck. Either do your job, or get out of the way."

 

Senator Luis Sepulveda - TORNADOES IN THE BRONX? YES AND WE NEED TO PREPARE

Last week Bronx and Queens residents received a tornado warning from the National Weather Service.  Minutes later a Category EF1 tornado hit Queens with winds close to 90 miles per hour, destroying some 50 trees and causing some damage to property. While it might seem unlikely and uncommon, the rise in severe weather all over our planet has been causing tornadoes to land in New York City. According to data compiled in a report on severe weather by the New York State Assembly Puerto Rican/Hispanic Task Force, 10 of the 13 tornadoes ever recorded in New York City have occurred in the past 17 years.  Prior to 1985, only three had ever been recorded. The Bronx has been hit by two tornadoes in recent memory. One in 1974 and one in 2010. The Task Force’s report showed an increasing frequency with closer proximity to population centers that should raise a warning signal of this growing danger.  Most concerning is the fact that the vast majority of New Yorkers are NOT prepared to deal with such a situation. The urgency to address this problem is highlighted by a Federal Emergency Management Administration (FEMA) study, which has found that on average only 14% of individuals had participated in school-based shelter-in-place drills and 10% in home-based shelter-in-place drills, while only 14% have participated in a home evacuation drill.  The FEMA study also found that virtually all low-income homes were completely unprepared to deal with a major natural disaster and did not have emergency food, water, medication or cash on hand when ATMs go offline due to power loss. The American Red Cross has provided some very useful tools and advice on how to be prepared for an emergency or major disaster.  Here is some useful information in English and in Spanish to help you and your family be better prepared for the dangerous and imminent severe weather our State will face. English:             https://www.redcross.org/get-help/how-to-prepare-for-emergencies.html Spanish:           https://www.redcross.org/cruz-roja/obtener-ayuda/tipos-de-emergencias.html The danger we all face is very real.  The updated data clearly shows 69% of over 410 tornadoes impacting New York State have been reported since 1986.  Over the past 15 years alone, over 150 tornadoes have hit our State. Preparing your family for the unexpected is more necessary now than ever before.  The information I provided above is the first step in protecting yourself and your family and our communities.

MAYOR DE BLASIO AND SPEAKER JOHNSON ANNOUNCE INVESTMENT TO BRING THREE ACRES OF NEW PARKS TO HUDSON YARDS

  The de Blasio administration announced that the City will begin the process of acquisition, design and construction of Phase II of the City’s Master Plan for Hudson Yards.  This final phase includes approximately three acres of all-new parkland, created by extending Hudson Boulevard and Park over the Amtrak rail cut which currently runs from West 36^th Street to West 39^th Street.

“Every New Yorker deserves well designed public space,” said Mayor de Blasio. “In a growing neighborhood like Hudson Yards, three acres of new parks is a vital investment in the wellbeing of residents for generations to come.”

“Today’s approval for additional investment in Hudson Yards allows us to fulfill our commitment to deliver to the Hudson Yards community three acres of new parkland – and demonstrates a smart approach to building density. I want to thank Speaker Johnson and the Council for their partnership in this effort,” said Deputy Mayor for Housing and Economic Development Alicia Glen.

“Completing this park has been a goal of the West Side community for years,” said City Council Speaker Corey Johnson. “Securing this financing is an important step in ensuring that this neighborhood has essential public green space as Hudson Yards grows. All New Yorkers and people from around the world will one day enjoy this remarkable public park in what is currently a rail-cut. I want to thank Mayor de Blasio, Community Board 4 and everyone else who helped make this a reality.”

“The history of development in NYC is based on the creation of great public places. As building continues at a record pace, this critical funding ensures that a huge gap in the public infrastructure and open space network of Hudson Yards will be completed,” said Angela Cavaluzzi, President of Hudson Yards Development Corporation.

“We are excited to see Phase II more than double the acres of green space at Hudson Yards,” said NYC Parks Commissioner Mitchell J. Silver, FAICP.  “Projects like this increase our access to health, happiness and fun, and that’s a win for everyone.”

Phase II includes the investment of up to $500 million to complete infrastructure projects in the Hudson Yards Financing District, including the expansion of Hudson Boulevard and Park three blocks north from West 36^th Street to West 39^th Street.  The construction of the Park and Boulevard will provide vital public space, and unlock the commercial development of the northern area of Hudson Yards. The addition of the new parkland expands Hudson Yards’ parkland by 75 percent.

The Hudson Yards Development Corporation will manage the acquisition, design, and construction process. Once completed, the land will be transferred to NYC Parks and the Department of Transportation, who will collaborate with the Hudson Yards Hell’s Kitchen Business Improvement District on daily management. The design process will begin this fall.

KZA Realty Group And RM Friedland Affiliation Provides The Bronx With Unparalleled Service Opportunities

  Two of the most renowned commercial real estate firms in The Bronx announce a new affiliation agreement that will bring unprecedented expertise and client service benefits to property and business owners.

Commercial real estate brokers KZA Realty Group and RM Friedland will join forces on select assignments to add value for clients. The alliance combines the strength of RM Friedland’s brokerage team and staff resources with KZA’s strong ties to the Bronx community.

“Our companies offer tremendous resources, market knowledge and a peerless track record in The Bronx,” said Sarah Jones-Maturo, president of RM Friedland. “Together, we have a tremendous breadth and depth of experience in the borough, not to mention a combined 75 year track record.”

The new arrangement reflects the borough’s booming business climate. KZA and RM Friedland are the exclusive commercial brokers for the massive La Central development in The Hub, for example, the revitalized shopping district in the heart of the borough. The largest development currently underway in The Bronx, La Central will create more than 1.1 million square feet of residential and commercial space. In addition, the two firms are leasing space at 354 East 149th Street, also located in the downtown Hub.

KZA Realty Group is one of the driving forces behind the economic revitalization of The Bronx. In addition to helping national brands find suitable locations in the borough, Zamechansky served as the first president of the Bronx Overall Economic Development Corporation and as executive director of the Bronx Chamber of Commerce. She is the recipient of many awards, including Businesswoman of the Year by the Bronx Chamber of Commerce (2018), the President’s Award from the Bronx Manhattan North Association of Realtors (2018) and recognition as one of the 25 Most Influential Bronx Leaders by the City and State of New York (2017).

Congressman Christopher Collins And Others Charged In Manhattan Federal Court With Insider Trading And Lying To Federal Law Enforcement Agents

  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 Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of CHRISTOPHER COLLINS, a Congressman representing the 27th District of New York, CAMERON COLLINS, the son of CHRISTOPHER COLLINS, and STEPHEN ZARSKY, the father of CAMERON COLLINS’s fiancée, on charges of participating in a scheme to commit insider trading relating to securities of Innate Immunotherapeutics (“Innate”), an Australian biotechnology company on whose Board of Directors CHRISTOPHER COLLINS served.  As alleged in the Indictment, in June 2017, CHRISTOPHER COLLINS, who possessed material, nonpublic information through his service on Innate’s board of directors, betrayed his duties of trust and confidence to Innate by providing inside information to his son, CAMERON COLLINS, about confidential drug trial results so that his son and others, including ZARSKY, could trade before the drug trial results were publicly announced.  As a result of CHRISTOPHER COLLINS’s illegal tips, CAMERON COLLINS, ZARSKY, and others who received the inside information avoided a total of approximately $768,000 in losses.  When later interviewed by the FBI, CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY each made false statements to cover up their participation in the insider trading scheme. 

CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY are each charged with conspiracy, securities fraud, wire fraud, and making false statements to the FBI.  All three defendants surrendered this morning and will be presented and arraigned at 2:30 p.m. today before United States District Judge Vernon S. Broderick in federal court in the Southern District of New York. 

In a separate action, the United States Securities and Exchange Commission (“SEC”) filed a civil action against CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY.

U.S. Attorney Geoffrey S. Berman said:  “Congressman Christopher Collins is charged with insider trading and lying to the FBI, as are his son, Cameron Collins, and Stephen Zarsky, the father of Cameron’s fiancée.  As alleged, Christopher Collins tipped confidential corporate information to his son, who traded on the inside information and passed it on to others, including Zarsky.  Zarsky allegedly also traded on the information and tipped others.  Representative Collins, who, by virtue of his office, helps write the laws of this country, acted as if the law did not apply to him.  These charges are a reminder that this is a nation of laws, and everyone stands equal before the bar of justice.  The charges demonstrate again that no matter what the alleged crime, or who allegedly committed it, we stand dedicated to the pursuit of justice, without fear or favor.” 

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “Congressman Christopher Collins sat on Innate Immunotherapeutics’ Board of Directors for a period of more than three years, spanning the run-up to the company’s clinical drug trial announcement in 2017.  When he received confidential information that the drug had failed its trial, he tipped off investors with whom he shared a personal relationship, as we allege.  Congressman Collins thought giving his family and friends a heads-up about material, nonpublic information would benefit them in the long run, but here's a better inside tip for those who think they can play by different rules:  Access to this kind of information carries with it a significant responsibility, especially for those who hold a position of trust in our society.  Act honorably and in accordance with the law, and do not lie to a special agent of the FBI.” 

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

The Insider Trading Scheme

The Scheme

In or about June 2017, CHRISTOPHER COLLINS, who, in addition to serving on Innate’s board of directors, was also one of Innate’s largest shareholders, participated in a scheme to commit insider trading.  Specifically, on or about June 22, 2017, CHRISTOPHER COLLINS learned that MIS416 – a multiple sclerosis drug that Innate was developing – had failed a critical drug trial that was meant to determine the drug’s clinical efficacy (the “Drug Trial”).  The negative Drug Trial results were highly confidential, and, as an insider who owed duties of trust and confidence to Innate, CHRISTOPHER COLLINS was obligated to keep the Drug Trial results secret until Innate publicly released them.  Instead, in breach of those duties, CHRISTOPHER COLLINS tipped his son, CAMERON COLLINS, who was also a substantial Innate shareholder, so that CAMERON COLLINS could make timely trades and tip others before Innate publicly released the Drug Trial results.  CAMERON COLLINS traded on the inside information and passed it to ZARSKY, as well as to three conspirators not named in the Indictment (“CC-1,” “CC-2,” and “CC-6”), so that they could utilize the information for the same purpose.  ZARSKY, in turn, traded on the information and used it to tip three more conspirators not named in the Indictment (“CC-3,” “CC-4,” and “CC-5,”) so that they too could engage in timely trades in Innate stock.  All of the trades preceded the public release of the negative Drug Trial results.

In total, these trades allowed CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY, as well as CC-1 through CC-6, to avoid over $768,000 in losses that they would have otherwise incurred if they had sold their stock in Innate after the Drug Trial results became public. 

The Drug Trial Results

In or about October 2014, Innate initiated a Phase 2B clinical trial of its primary drug, MIS416.  Successful completion of the Drug Trial was a necessary prerequisite to the commercialization of MIS416.  Because Innate had no other significant products in development, its stock price was tied to the success of MIS416.

The Drug Trial was widely expected to be completed around the summer of 2017.  For example, on or about June 9, 2017, Innate’s chief executive officer (“CEO”) sent various individuals, including CHRISTOPHER COLLINS, an email stating that “the delivery date for [the] review and ‘verdict’” of the Drug Trial “will [] occur at COB on US Thursday June 22nd.”  As the summer progressed, individuals within Innate remained optimistic that MIS416’s Drug Trial results would be positive.  The initial Drug Trial results were made available by trial administrators to Innate’s CEO on June 22, 2017.  These results established that MIS416 lacked therapeutic value in the treatment of multiple sclerosis.  The results were not publicly released at that time.  Instead, they were released publicly on June 26, 2017, after the U.S. markets had closed (the “Public Announcement”).  Innate’s stock price subsequently crashed, dropping 92% on the first trading day following the Public Announcement. 

Dissemination of the Drug Trial Results

On or about June 22, 2017, at approximately 6:55 p.m., Innate’s CEO sent an email describing the Drug Trial results to the company’s board of directors, including CHRISTOPHER COLLINS.  The email explained to Innate’s board of directors for the first time that the Drug Trial had been a failure.  The email began, in part, “I have bad news to report,” and continued to explain that “the top line analysis of the ‘intent to treat’ patient population (ie every subject who was successfully enrolled in the study) would pretty clearly indicate[s] ‘clinical failure.’”  The email continued, “Top-line 12-month data . . . show no clinically meaningful or statistically significant differences in [outcomes] between MIS416 and placebo,” and concluded by stating, “No doubt we will want to consider this extremely bad news. . . .” 

At the time CHRISTOPHER COLLINS received this email, he was attending the Congressional Picnic at the White House.  At 7:10 p.m., CHRISTOPHER COLLINS replied to the email, stating, in part, “Wow.  Makes no sense.  How are these results even possible???”  After responding to the Innate CEO’s email, CHRISTOPHER COLLINS called his son, CAMERON COLLINS.  They traded six missed calls between 7:11 p.m. and 7:15 p.m..  At 7:16 p.m., CHRISTOPHER COLLINS and CAMERON COLLINS spoke for more than six minutes.  During that six-minute phone call, CHRISTOPHER COLLINS told CAMERON COLLINS, in sum and substance, that MIS416 had failed the Drug Trial.

CHRISTOPHER COLLINS did not trade himself, and his Innate stock ultimately declined by millions of dollars in value when the Drug Trial results were made public on June 26, 2017.  As CHRISTOPHER COLLINS well knew, however, he was virtually precluded from trading his own shares for practical and technical reasons.  For example, CHRISTOPHER COLLINS was already under investigation by the Office of Congressional Ethics (“OCE”) in connection with his holdings in, and promotion of, Innate.  Indeed, he had been interviewed by OCE personnel on or about June 5, 2017, just 17 days earlier.  Accordingly, he did not trade his own stock and instead tipped CAMERON COLLINS.

Trading and Tipping by CAMERON COLLINS and ZARSKY

CAMERON COLLINS began placing orders to sell his Innate shares the morning after he received inside information from CHRISTOPHER COLLINS.  Between the morning of Friday, June 23, 2017, and the close of the market on Monday, June 26, 2017, CAMERON COLLINS sold approximately 1,391,500 shares of Innate stock.  These sales allowed CAMERON COLLINS to avoid approximately $570,900 in losses. 

Furthermore, after learning the Drug Trial results from CHRISTOPHER COLLINS, on or about the night of June 22, 2017, CAMERON COLLINS provided the Drug Trial results to at least the following three sets of individuals so that they could trade in advance of the Public Announcement:  (1) his now fiancée, CC-1; (2) ZARSKY and ZARSKY’s wife, CC-2; and (3) CAMERON COLLINS’s friend, CC-6.  Collectively, these individuals avoided approximately $186,620 in losses as a result of their trading on inside information. 

On or about the morning of June 23, 2017, ZARSKY provided the negative Drug Trial results that he had learned from CAMERON COLLINS and CC-1 to at least the following individuals, among others, or otherwise caused them to trade or attempt to trade in advance of the Public Announcement: (1) his brother, CC-3; (2) his sister, CC-4; and (3) his longstanding friend, CC-5.  Collectively, these individuals avoided approximately $10,900 in losses as a result of their trading on inside information.

Concealment of Trading

After the Public Announcement, CHRISTOPHER COLLINS took steps to prevent the public from learning that CAMERON COLLINS had sold significant portions of his Innate stock on or about June 23, 2017, and June 26, 2017, before the Public Announcement.  For example, on or about June 28, 2017, one of CHRISTOPHER COLLINS’s staff members issued a statement to a local reporter.  This statement stated that “Neither Christopher Collins, [nor] his daughter . . . have sold shares prior, during or after Innate’s recent stock halt,” and that “Cameron Collins has liquidated all his shares after the stock halt was lifted, suffering a substantial financial loss.”  This statement was written in a manner designed to mislead the public into believing that CAMERON COLLINS had not sold any Innate shares prior to the Public Announcement.  As CHRISTOPHER COLLINS explained in an email about press coverage surrounding Innate, “We want this to go away.”

False Statements to the FBI

On or about April 25, 2018, Special Agents from the FBI separately interviewed CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY.  During these interviews, and as detailed in the Indictment, CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY made false statements to the FBI to cover up their participation in the insider trading scheme. 

A chart identifying the charges and the maximum penalties applicable to CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARKSY is below.

Count	Charge	Defendants	Maximum Penalty
1	Conspiracy to commit securities fraud (18 U.S.C. § 371)	All	5 years in prison
2	Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)	CHRISTOPHER COLLINS; CAMERON COLLINS	20 years in prison
3	Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)	All	20 years in prison
4	Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)	CHRISTOPHER COLLINS; CAMERON COLLINS	20 years in prison
5-7	Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)	All	20 years in prison
8	Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)	CHRISTOPHER COLLINS; CAMERON COLLINS	20 years in prison
9	Conspiracy to commit wire fraud (18 U.S.C. §§ 1349)	All	20 years in prison
10	Wire fraud (18 U.S.C. §§ 1343 & 2)	All	20 years in prison
11	False Statements (18 U.S.C. §§ 1001 & 2)	CHRISTOPHER COLLINS	5 years in prison
12	False Statements (18 U.S.C. §§ 1001 & 2)	CAMERON COLLINS	5 years in prison
13	False Statements (18 U.S.C. §§ 1001 & 2)	STEPHEN ZARSKY	5 years in prison

Defendants’ Ages and Residences

Defendant	Residence	Age
Christopher Collins	Clarence, New York	68
Cameron Collins	Morristown, New Jersey	25
Stephen Zarsky	Summit, New Jersey	66

  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.

Mr. Berman praised the work of the FBI and thanked the SEC for its assistance. 

The allegations 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.