Saturday, July 15, 2023

International Tax Advisor Arrested For Helping To Conceal Over $100 Million Of Income For High-Net-Worth U.S. Taxpayers

 

 Damian Williams, the United States Attorney for the Southern District of New York, and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the indictment of FRANK BUTSELAAR for participating in a conspiracy to engage in tax fraud over the course of over seven years.  BUTSELAAR was an advisor to high-net-worth DJs and fashion industry clients who earned income all over the world (the “Clients”).  The Clients earned millions of dollars every year.  In certain years, these Clients became U.S. tax residents, meaning they had a legal obligation to pay U.S. taxes on their worldwide income.  BUTSELAAR, working with other professionals, devised a strategy to unlawfully conceal from the U.S. Government millions of dollars of income the Clients were earning outside the United States during years they were U.S. tax residents.  After having been arrested earlier this year following a request from the United States to Italy for provisional arrest for purposes of extradition, BUTSELAAR was taken back into custody earlier this week in Italy following a favorable ruling on the U.S. extradition request. 

IRS-CI Special Agent in Charge Thomas Fattorusso said: “Butselaar thought he was above the law.  It’s alleged he operated this international fraud scheme to conceal millions of dollars in income earned by his high-profile clients around the world.  This wasn’t just a get rich quick scheme, but rather Butselaar sought to play the long game and used a variety of sophisticated techniques to perpetuate this tax fraud over the course of several years.  IRS-CI has a global reach, and we thank our J5 collaborators for their valuable partnership on this case.  For Butselaar, it’s time to pay the tab.”

As alleged in the Indictment unsealed in White Plains federal court:[1]

FRANK BUTSELAAR conspired to defraud the United States and to conceal from the IRS through fraudulent, deceitful, and dishonest means the existence of millions of dollars of worldwide income generated by various clients, including Client-1 and Client-2, who are internationally renowned DJs (the “DJ Clients”).  The DJ Clients, in particular, utilized offshore entities that at all relevant times BUTSELAAR and his co-conspirators knew the DJ Clients beneficially owned and effectively controlled.  These entities were, in turn, held by trusts that the DJ Clients established on the advice of BUTSELAAR and others (the “Offshore Structures”).  As part of their efforts to conceal the DJ Clients’ worldwide income, BUTSELAAR and his co-conspirators created and implemented a fraudulent scheme to use straw beneficiaries to conceal the income held within the DJ Clients’ Offshore Structures from the IRS. 

In addition, FRANK BUTSELAAR and his co-conspirators devised and implemented similar fraudulent schemes for certain fashion industry clients (the “Fashion Industry Clients”) that involved fraudulent transfers of the Fashion Industry Clients’ overseas companies to family members, knowing that the Fashion Industry Clients would maintain beneficial ownership of the overseas companies and the income therefrom. 

The tax evasion schemes, created and implemented by FRANK BUTSELAAR and his co-conspirators, caused to be filed Forms 1040 for the DJ Clients and the Fashion Industry Clients (during the time those Clients were U.S. tax residents) that fraudulently omitted over $100 million in worldwide income earned by those Clients.  

BUTSELAAR, 63, of Naarden, Netherlands, was charged with one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison, and five counts of aiding and abetting the filing of false tax returns, each of which carries a maximum penalty of three years in prison. 

The maximum potential sentences 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. Williams praised the outstanding investigative work of the IRS-CI and the Joint Chiefs of Global Tax Enforcement (“J5”).  Mr. Williams also thanked the Justice Department’s Office of International Affairs and Italy’s Ministero della Giustizia, Arma dei Carabinieri, and Guardia di Finanza for their assistance.

The J5 works together to gather information, share intelligence, and conduct coordinated operations against transnational financial crimes.  The J5 includes the Australian Taxation Office, the Canadian Revenue Agency, the Dutch Fiscal Intelligence and Investigation Service, His Majesty’s Revenue and Customs from the United Kingdom, and the IRS-CI from the U.S.

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 an allegation.

BRONX WOMAN AND HER DAUGHTER SENTENCED TO PAY $681,000 IN RESTITUTION TO ELDERLY WOMAN’S ESTATE

 

Defendants Stole Money from Sale of 92-Year-Old’s Soundview House; She Passed Away in December, 2022

 Bronx District Attorney Darcel D. Clark today announced that a Bronx mother and her daughter pleaded guilty to scheming an elderly woman out of approximately $760,000 and were sentenced to five years of Probation, 500 hours of Community Service and ordered to pay more than $680,000 to the deceased woman’s estate.

 District Attorney Clark said, “We must do more to educate our seniors about Power of Attorney scams, while stepping up to prosecute criminals who prey on our most vulnerable. The victim in this case was a 92-year-old woman, and she lost her home while they refinanced a home, took a European vacation and paid off their credit card bills.”

 District Attorney Clark said the defendants, Maria Garcia, 75, of Seffner, Florida, and Mara Garcia, 39, of Doral, Florida were sentenced July 10, 2023, to five years of Probation and 500 hours of Community Service by Bronx Supreme Court Justice Tara Collins. The defendants pleaded guilty to third-degree Grand Larceny, and third-degree Criminal Tax Fraud on April 21, 2023. As part of the plea agreement the defendants had to return $225,000 in cash followed by an executed confession of Judgement for $456,000.

 They each acknowledged their tax liability: for Mara Garcia it is currently estimated at approximately $155,000 and for Maria Garcia is currently estimated at approximately $58,000.

 According to the investigation, between June 13, 2017, and February 20, 2021, the defendants, who knew the victim through their practice of Santeria, stole approximately $840,000 from Eladia Perez, who was 92 years old at the time, and has since passed away, including $760,000 from the sale of her house in Soundview. The investigation found that the victim unknowingly signed numerous documents and multiple powers of attorney enabling the defendants to access, control and open bank accounts and other financial instruments, unbeknownst to the victim.

 The defendants used the money to pay for personal expenses. Mara Garcia paid off a $18,000 dollar credit card bill and took a European vacation. Maria Garcia paid off a refinance on her home for approximately $102,000. The defendants never paid taxes on money received from selling the stolen property.

 District Attorney Clark also thanked the New York State Department of Taxation and Finance Criminal Investigations Division, as well as Detective Pedro Cortes of the Hillsborough County Sheriff’s Office.

On Shark Awareness Day, Governor Hochul Distributes New Drones to Take a Bite Out of Dangerous Shark Encounters on Long Island Beaches

 Governor Hochul holds a drone during a beach safety event.

Following Increased Shark Sightings in the Atlantic Ocean and Long Island Sound, New York State Offers Resources for Local Governments for Better Monitoring, Communication with Office of State Parks, Department of Environmental Conservation, New York State Police and Park Police

State-Issued Shark Safety Guidance: Be 'Shark Smart'

 Governor Kathy Hochul today announced new shark-monitoring drones are being distributed to coastal areas of Long Island, New York City and Westchester County. These drones will be distributed for an “eye in the sky” response to previous actions taken to address and enhance beachgoers' safety at State beaches. A total of up to 60 will be available to Long Island, New York City and Westchester County beaches. Governor Hochul made this announcement on Shark Awareness Day, celebrated internationally on July 14th.

“As beachgoers are enjoying their summer in New York, spending time on some of the most beautiful beaches in the country, we have added this eye in the sky,” Governor Hochul said. “State personnel will continue to do all we can to keep beachgoers safe. We have the tools and strategies to monitor marine wildlife and protect the health and safety of New Yorkers. These new drones will allow us to scan the water and help local governments across Long Island and New York City keep local beaches safe for all.”

Earlier this year, Governor Hochul put new shark safety protocols into place ahead of the summer season. The New York State Office of Parks, Recreation and Historic Preservation (State Parks) and the Department of Environmental Conservation (DEC) have increased water surveillance since shark sightings over and since the Fourth of July holiday.

State Parks is giving new drones to downstate municipalities, and also covering the cost of training and operation. While most municipalities do not have drone surveillance capability, this investment will assist localities and agencies along the entire Long Island coastline and in New York City to enhance monitoring efforts, looking for dangerous marine wildlife including sharks, schools of fish sharks feed on, plus seals or diving birds.


In late May, Governor Hochul announced enhanced shark monitoring measures for Long Island State Park beaches, which include State Parks' expanded surveillance capabilities:

  • New York State added 10 drones to the eight in operation last year. One new drone assigned to Park Police is a large enterprise model with thermal imaging, laser range finding, and high-quality cameras to allow for night-time surveillance and patrols in adverse weather conditions. This drone can also drop personal flotation devices in emergency situations
  • Currently 24 staff including Park Police officers, State Park operational staff, lifeguards and certified drone operators are trained;
  • State Parks Environmental Educators hold public outreach regarding shark habitats for people at Jones Beach, Robert Moses and Sunken Meadow
  • Two new Yamaha WaveRunners have been assigned to lifeguards to patrol both Jones Beach and Robert Moses State Parks. These personal watercrafts join one already in operation at Sunken Meadow State Park
  • Additional buffer zones were created between swimming areas and surf fishing areas
  • When sightings occur, New York State Police Aviation will be available to respond

To minimize the risk of shark interactions, the Department of Environmental Conservation advises the following shark safety guidance:

  • Avoid areas with seals
  • Avoid areas with schools of fish, splashing fish, or diving seabirds
  • Avoid swimming at dawn, dusk, night
  • Avoid murky water
  • Swim, paddle, and surf in groups
  • Stay close to shore where your feet can touch the bottom
  • Always follow the instructions of lifeguards and Parks' staff
Humans assume risk whenever they enter any wild environment, whether on land or in the water. Although it is impossible to eliminate risk altogether, ocean users can modify their behavior to minimize potential interactions with sharks and reduce overall risk. When in the ocean, follow DEC's shark safety guidelines to minimize the potential for negative interactions with sharks.

Permits Filed For 722 St. Lawrence Avenue In Soundview, The Bronx

 

Permits have been filed for a four-story residential building at 722 St. Lawrence Avenue in Soundview, The Bronx. Located between Lafayette Avenue and Soundview Avenue, the lot is closest to the St. Lawrence Avenue subway station, serviced by the 6 train. Oltjon Abdyli of Soundview Corners is listed as the owner behind the applications.

The proposed 54-foot-tall development will yield 10,056 square feet designated for residential space. The building will have 16 residences, most likely rentals based on the average unit scope of 628 square feet. The masonry-based structure will also have a 38-foot-long rear yard and eight open parking spaces.

Chad Firmstone of C2B Architects is listed as the architect of record.

Demolition permits were filed this month for the existing two-story building on the site. An estimated completion date has not been announced.

Affordable Housing Lottery Launches For The Estela At 414-445 Gerard Avenue In Mott Haven, The Bronx

 

Rendering of Estela - Courtesy of VUW

The Domain Companies has launched an affordable housing lottery for apartments at The Estela, a two-building rental complex in the Mott Haven section of the South Bronx. Located at 414 and 445 Gerard Avenue, the property contains a mix of 380 market-rate units, 164 affordable apartments, 35,000 square feet of tenant amenities, and about 9,000 square feet of ground-floor retail space, which will include a grocery store.

The lottery is now open to low-income families earning between $54,035 up to $115,280, or about 80 percent of the area median income. Available units across both affordable and market-rate components include studios, one-bedroom, and two-bedroom floorplans.

“We’re thrilled to be moving one step closer to providing residents with an unparalleled full-service living experience right in the heart of the South Bronx,” said Matt Schwartz of The Domain Companies. “Domain is committed to delivering high-quality projects that strengthen communities, and we look forward to furthering our mission with Estela.

Rendering of Estela - Courtesy of VUW

Designed by S9 Architecture, both buildings are expected to achieve LEED Platinum certification. Both structures stand 11 stories and feature brick façades, standard punched window systems, and dark metal ventilation fins for in-unit climate control systems.

Unlike 414 Gerard, the façade for 445 Gerard is constructed of dark red brick and features a setback volume above the tenth floor.

Outdoor amenities will include a combines 4,000 square feet of courtyard space and a dog run. Inside the building, tenants will have access to a 24/7 concierge, screening room, a lounge, game rooms, coworking space, multiple gyms, yoga studios, and a pet spa.

Rendering of the Estela coworking suite - Courtesy of VUW

Rendering of the Estela gym - Courtesy of VUW


Rendering of the Estela clubroom - Courtesy of VUW


Bronx Borough President Vanessa L. Gibson - POSTPONED- Bronx Summer Concert at Soundview Park

 

Dear Neighbor,


Due to inclement weather, our Bronx Summer Concert at Soundview Park tomorrow has unfortunately been postponed. We will make sure to share additional information once it is available.


If you have any questions or concerns, please do not hesitate to contact our office at 718-590-3500 or email us at webmail@bronxbp.nyc.gov.

 

In partnership,

Bronx Borough President Vanessa L. Gibson



Friday, July 14, 2023

Governor Hochul Requests Major Disaster Declaration from President Biden to Secure Federal Assistance for Communities Impacted by Devastating Flooding

 heavy rain

Governor Hochul Also Requests Expedited FEMA Damage Assessment Process, As State Disaster Representatives Already on Ground Conducting Damage Assessments in Hardest Hit Communities

Governor Kathy Hochul today requested a Major Disaster Declaration from President Biden to support the ongoing recovery of communities impacted by devastating flooding stemming from this week's heavy rainstorms, which spanned across much of Upstate New York. If granted, this declaration would release critical federal financial assistance that will support recovery and reconstruction efforts in Albany, Clinton, Dutchess, Essex, Hamilton, Ontario, Orange, Oswego, Putnam, Rensselaer, Rockland, and Westchester counties, with the opportunity for additional counties to be added in the coming weeks as the damage assessment process continues. Additionally, Governor Hochul is requesting federal support for homeowners in Ontario and Orange Counties, as well as an expedited damage assessment process. New York will also be engaging with the U.S. Small Business Administration to pursue low-interest recovery loans for impacted private businesses in the coming weeks.

"My administration is no stranger to extreme weather events and the weather of this past week has shown that not only do we need federal assistance to help recover from these storms, but government leaders at all levels need to prioritize making our infrastructure more resilient," Governor Hochul said. "I have spoken with The White House, our Senators, and FEMA leadership about the need for a swift approval of this disaster declaration, so we can help New Yorkers recover quickly and efficiently."

A Major Disaster Declaration secures financial assistance from the federal government, primarily through FEMA's Public Assistance Program, to provide funding to local governments, tribes and eligible non-profits for debris removal, protective measures, and repairs to buildings and infrastructure, including roads, bridges, water and wastewater treatment facilities, critical infrastructure sites, schools, parks and other facilities.

Following a disaster, the Division of Homeland Security and Emergency Services' (DHSES) Disaster Recovery Unit works directly with counterparts at the Federal Emergency Management Agency (FEMA) and impacted local governments to assess damages caused by, and costs related to, the disaster. Once these assessments are complete, FEMA validates whether the state and impacted counties have reached the required federal damage thresholds for a Major Disaster Declaration.

Division of Homeland Security and Emergency Services Commissioner Jackie Bray said, "New York was devastated with heavy rains and destructive flooding this week and we need to access federal funding to support the long term recovery of impacted communities. Thanks to the leadership of Governor Hochul, our teams are working hand in glove with our local and federal partners to support recovery efforts as quickly and efficiently as possible."

From July 9-10, more than eight inches of rain was reported in parts of the Mid-Hudson Region and more than five inches of rain in Ontario County, in the Finger Lakes Region. From July 10-11, parts of the North Country saw several inches of rain in a short period of time, which caused devastating flooding, closing roadways and damaging infrastructure across impacted regions.

In advance of the storm, Governor Hochul directed State agencies to prepare emergency response assets and stay in constant communication with local governments to monitor weather impacts and respond to requests for assistance. As the storms moved across the state, the Governor continued to deploy disaster resources to impacted areas, including additional Department of Transportation staff, who worked to get State highways and bridges open as quickly as possible.

Additionally, Governor Hochul deployed staff from the State Department of Financial Services (DFS) to provide insurance assistance to residents affected by the flooding in Rockland and Orange Counties. Individuals can also call the DFS Disaster Hotline at (800) 339-1759.

About the State Division of Homeland Security and Emergency Services
The Division of Homeland Security and Emergency Services provides leadership, coordination and support for efforts to prevent, protect against, prepare for, respond to, and recover from terrorism and other man-made and natural disasters, threats, fires and other emergencies. For more information, visit the DHSES Facebook page, follow @NYSDHSES on Twitter and Instagram, or visit dhses.ny.gov.

Council Member Marjorie Velázquez - This Week in District 13


Dear Neighbor,


Summer is in full swing, and I’m excited to be hosting outreach events, including the ever-popular Mobile Office Hours! This is a fantastic way for me and my office to go to all the corners of the District. As your representative, I am committed and excited to continue working with the community to ensure its needs are addressed.


I am also happy to share that in this week’s ‘Legislative Corner,’ you will find information about legislation I have introduced and sponsored. If you miss our weekly email, you can also find this information on social media. As always, I am committed to advocating for my community with common-sense legislation that addresses its needs.


In this week’s email, you will find information regarding this year’s Rain Barrel Giveaway, NYC’s Summer Meals Program, youth and community resources, upcoming events, and more. I’m also excited to share that NYC Restaurant Week has commenced accepting reservations for this year’s event. If you’re interested in treating yourself to incredible food or supporting one of the hundreds of local restaurants, scroll to ‘Commerce Corner.’


To contact our office for additional information or concerns, please call us at  (718) 931-1721 or email us at District13@council.nyc.gov.


Wishing you all a safe and wonderful weekend.


Sincerely,

Council Member Marjorie Velázquez


Boogie Down to the Sound

This Saturday, July 15, from 11 AM to 4 PM, join SUNY Maritime College for this year’s Boogie Down to the Sound! This interactive event connects residents to the Long Island Sound/East River to increase the use, appreciation, and support for our local waters. There will be a variety of maritime activities to participate in; this event is free and open to the public.


Construction Advisory

Hutchinson River Parkway Bridge

The NYCDOT Division of Bridges will continue maintenance of the Hutchinson River Parkway Bridger over the Hutchinson River. As a result, two alternating, northbound lanes will be closed two weekend nights each week through Friday, August 4, 2023 from 11 PM to 5 AM.


Shore Road Bridge

The NYC Department of Transportation Division of Bridges will continue routine maintenance of the Shore Road Bridge over the Hutchinson River. As a result, single-lane closures will continue through Friday, July 28, according to the below schedule. 


Single Lane Closures

  • Northbound - 7 AM to 9 AM

  • Northbound and Southbound - 9 AM to 1 PM

  • Northbound and Southbound - 10 PM to 7 AM

No Parking

The NYC Department of Design and Construction has announced a ‘No Parking’ advisory for Pelham Parkway North Service Road between Eastchester Road and Bronx Park East; and Pelham Bay Parkway Westbound Main Road between White Plains Road and Stillwell Avenue; through July 28 from 7 AM to 4 PM. This restriction is necessary to facilitate ‘end of construction’ work and is a moving operation. 


The NYC Department of Design and Construction has announced a ‘No Parking’ advisory for Pelham Parkway North Service Road between Eastchester Road and Bronx Park East through July 28 from 7 AM to 4 PM. This restriction is necessary to facilitate ‘end of construction’ work and is a moving operation. 


Night-Time Lane Closures

The NYC Department of Design and Construction has announced a ‘Night-Time Lane Closure’ advisory on Pelham Parkway Eastbound Main Road between White Plains Road and Stillwell Avenue from now through July 28, from 9 PM to 5 AM. This restriction is necessary to facilitate roadway reconstruction and is a moving operation.


Rain Barrel Giveaway

Don’t miss this year’s Rain Barrel Giveaway, taking place on Saturday, August 5! Register now to reserve your free rain barrel to save water and help the environment. This is a great way to support sustainable living and make a positive impact in your community. To register, click the link below or call 718-931-1721.


Bringing the MTA to You!

You asked, and we listened! The MTA Mobile Sales Van will be at 3033 Middletown Road, from 1 PM to 3 PM, on the fourth Friday of each month. This is a great opportunity to ask questions about your MetroCard, apply for a reduced fare rate, replace expired or damaged cards, and more.


DSNY - Food Business Notice

Beginning Tuesday, August 1, the Department of Sanitation will begin enforcing its new rule to mitigate the citywide rat issue. Food related businesses (restaurants, grocery stores, delis, caterers, and businesses who sell or handle food), must use lidded containers. Containers must be kept inside, outside along the building, or within three feet of the building line.


As a reminder, containers may be set our after 8 PM or an hour before closing.


Learn More

VCJC News & Notes 7/14/23

 

Van Cortlandt Jewish Center
News and Notes

Here's this week's edition of the VCJC News and Notes email. We hope you enjoy it and find it useful!

Reminders

  1. Shabbos

    Shabbos information is, as always, available on our website, both in the information sidebar and the events calendar.
    Here are the times you need:  
    Shabbos Candles Friday 7/14/23 @ 8:08 pm
    Shabbos morning services at 8:40 am.  Please join the services if you can do so safely. 
    Shabbos Ends Saturday 7/15/23 @ 9:11 pm
     

  2. Blood Drive, Sunday July 30 from 9:30 to 2
    Full information is on our blog.

  3. Attention Members!  VCJC committees are now being formed.
    Committee membership is open to all VCJC members.  The committees are a vital part of operating VCJC. Read about them here.

  4. Several new shiurim have been posted
    Take a look and give us your thoughts!  See the sidebar of the website or the Blog & News page.

Van Cortlandt Jewish Center
3880 Sedgwick Ave
Bronx, NY 10463