Serial Fraudster Sentenced for Role in Multiple Investment Fraud Schemes

 

A California man previously extradited from Mexico was sentenced yesterday to 4 years in prison for his role in two high-yield investment fraud schemes in which he and his co-conspirators defrauded elderly and other vulnerable victims out of millions of dollars.     

According to court documents, Daniel Thomas Broyles Sr., aka Dan Thomas, 66, of Malibu, participated in a high-yield investment fraud scheme involving a sham company named Niyato Industries Inc. (Niyato). Broyles conspired with Niyato’s CEO, Robert Leslie Stencil, 66, of Charlotte, North Carolina, and others to defraud Niyato investors. Together, Broyles, Stencil, and others falsely portrayed Niyato as a leader in electric vehicle manufacturing and converting vehicles to run on compressed natural gas. In reality, Broyles knew, or intentionally avoided learning, that Niyato was merely a sham company that lacked any operational facilities or proprietary technology and virtually all investor funds were being disbursed among the co-conspirators and not used to promote Niyato’s business. In June 2016, after Broyles learned that federal law enforcement agents were investigating Niyato, he relocated to Mexico. When, in August 2016, he learned that he had been indicted, Broyles moved to a new address in Mexico and began using the alias “Daniel Cruz Torrez” to hide from federal law enforcement agents and obstruct the federal government’s prosecution of him.

Broyles also participated in a second high-yield investment fraud involving EarthWater Limited (EarthWater). Broyles conspired with EarthWater’s CEO, Cengiz Jan Comu, 63, of Dallas, and others to sell EarthWater stock. Broyles and others made numerous false and misleading representations, including that EarthWater used the money raised from victim investors to develop and operate the company’s business. In truth, Broyles, Comu, and their co-conspirators had agreed to use the invested victim funds largely for their personal benefit.

Broyles was extradited from Mexico in March 2022. In June 2022, Broyles pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, and one count of money laundering in connection with the Niyato scam. Broyles also pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud in connection with the EarthWater fraud.

Seven other defendants have previously been convicted in connection with the Niyato scam, including Stencil, who was convicted following a three-week jury trial and sentenced to 12 years and three months in prison. 

Eleven other defendants have pleaded guilty in connection with the EarthWater fraud, including Comu, who was sentenced to 10 years in prison.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Dena J. King for the Western District of North Carolina, U.S. Attorney Leigha Simonton for the Northern District of Texas, Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division, and Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group made the announcement.

Mexican officials provided significant assistance in the extradition of Broyles to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Broyles.

USPIS investigated the case. The U.S. Marshals Service transported Broyles from Mexico to the United States.

Attorney General James Announces Settlement with Former NRA Senior Strategist on Eve of Trial

 

Joshua Powell was One of the Defendants in AG James’ Ongoing Case Against the National Rifle Association

Powell Admitted to AG James Claims of Wrongdoing against NRA and Defendants

New York Attorney General Letitia James announced that Joshua Powell, former National Rifle Association (NRA) Executive Director of Operations and Chief of Staff to recently resigned NRA Executive Vice President Wayne LaPierre, has reached a $100,000 agreement with her office. Powell was one of five defendants in the lawsuit brought by the Office of the Attorney General (OAG) against the NRA and senior management in August 2020. As part of the agreement, Powell has admitted to OAG's claims of wrongdoing in its lawsuit. The trial of the claims against the NRA and the remaining defendants will begin on Monday, January 8. 

“Joshua Powell’s admission of wrongdoing and Wayne LaPierre’s resignation confirm what we have alleged for years: the NRA and its senior leaders are financially corrupt,” said Attorney General James. “More than three years ago, my office sued the NRA and its senior management for financial abuse and mismanagement. These are important victories in our case, and we look forward to ensuring the NRA and the defendants face justice for their actions.”

The lawsuit brought by Attorney General James in August 2020 alleged that NRA senior management misappropriated millions of dollars to fund personal benefits, including private jets, expensive meals, and even family trips to the Bahamas. The NRA, as a New York-registered not-for-profit, charitable corporation, has legal obligations to use its funds for charitable purposes, not to support the lavish lifestyles of senior management and organization insiders. The OAG investigation found that instead of serving NRA members, senior management blatantly disregarded New York state and federal laws, and even internal NRA policies.

With this agreement Powell has admitted to failing in his fiduciary responsibilities and misusing charitable funds, just as Attorney General James alleged in the August 2020 lawsuit.

Since Attorney General James first filed against the NRA and its senior management in August 2020, the organization and senior management have worked to avoid taking responsibility for the serious violations of law. An effort by the NRA to dismiss Attorney General James’ complaint and change the court venue was rejected in January 2021. The NRA even filed for Chapter 11 bankruptcy protection in January 2021 in an attempt to avoid accountability by trying to reorganize the organization in Texas. In May 2021, a federal bankruptcy court in Texas rejected the NRA’s bankruptcy petition, stating, “that the NRA did not file the bankruptcy petition in good faith.”  

In March 2022, a second round of motions brought forward by the NRA, Executive Vice President Wayne LaPierre, and Corporate Secretary and General Counsel John Frazer to try and dismiss the lawsuit was rejected. In June 2022, New York State Supreme Court Judge Joel Cohen held that Attorney General James’ claims against the NRA’s wrongdoing are serious and viable, and are well within her office’s jurisdiction to investigate and prosecute. In September 2022, the Court rejected a third effort by the NRA to challenge the Attorney General’s claims and affirmed that Attorney General James can seek an independent monitor to oversee the NRA’s finances as part of her lawsuit. In January 2024, a final effort to delay the trial was rejected by the New York State Supreme Court, Appellate Division, First Department, and the trial is set to proceed on January 8, 2024, as planned. 

Governor Hochul Updates New Yorkers on Extreme Weather

Governor Hochul: “Plows are ready, we have personnel deployed, we have our emergency operations center stood up – we've been doing this since Wednesday in anticipation. So a lot of it from our end is getting the salt ready, the generators, we need warming centers, if utility crews are necessary, we have 5,000 ready to go.”

Hochul: “[W]e're anticipating a lot of ice and freezing rain… by six o'clock snow will be in the entire Hudson Valley. Four o'clock, it'll start around the Western Hudson area. And we could actually get about 18 inches of snow in areas like the Catskills.”

And so our team has been tracking this closely. We have a brand new first in the nation State Weather Risk Communication Center that gives us up to the minute information, analytics, what's happening in real time. So this is the first real storm we're able to use this and it's been phenomenal. We can track incredible information that's so important for us to pass on to your listeners.

It will be basically a classic Nor'easter. I don't think New York City will be getting the snow, I think they have to wait longer than the 692 days they've gone without a real snowstorm, so it will not be happening. But certainly the Hudson Valley, the Capital Region, Mohawk Valley, Capital Region will be hit, and really about two-thirds to three-quarters of the State will have eight to 12 inches, which is a lot for the first of the year.

Plows are ready, we have personnel deployed, we have our emergency operations center stood up – we've been doing this since Wednesday in anticipation. So a lot of it from our end is getting the salt ready, the generators, we need warming centers, if utility crews are necessary, we have 5,000 ready to go.

That's what you do to handle this, you be ready in advance. Once you get to the water, even if it's like freezing rain and not even snow, it can freeze once the temperatures drop. It's black ice. The bridges can become treacherous. We're advising motorists – don't go out on the roads tonight unless absolutely necessary. We have a lot of warning on our throughway, particularly for our truckers, because you get a jackknife truck, and they can paralyze traffic for hours.

And that's what we're talking about. It is that traditional line. I think the City will be spared, except for some sleet and freezing rain. I don't think they'll get the accumulation. But again, you can have predictions, but we won't know until the storm is over whether we hit the threshold of counting the snow for the City.

But again, just as you said, north and further west, it is going to be a tough night for people on the roads. And so, the best thing to do – this is the night to stay home, watch some movies, take down the Christmas tree, read some of the books you got for the holidays. And that'll help us with our plows, which have already pre-salted all the roads.

So, we're anticipating a lot of ice and freezing rain, but it should really abate by the morning. So, it's perfect timing in that it's hitting on a weekend as opposed to a weekday when people are traveling to work. So, I think by six o'clock snow will be in the entire Hudson Valley. Four o'clock, it'll start around the Western Hudson area. And we could actually get about 18 inches of snow in areas like the Catskills. We want our ski resorts to have plenty of snow, so this is a positive dynamic for them.

This could be problematic because when we start getting the snow that does fall from this weekend event starting to melt, and couple that with more rain coming in, it'll be a heavy rain event, we could have significant flooding.

Alright, so start clearing your snow, clear the drains, clearing culverts, we're doing all that ourselves. But we're asking homeowners to keep an eye on that as well, so we don't have any unnecessary flooding. But we're prepared for that as well.

Van Cortlandt Park Alliance - Important Notice About Park Safety

VCPA has learned about a series of muggings throughout the park with a concentration on the following trails: Bike path from Dickinson Ave to the Golf House; Putnam Greenway; Old Croton Aqueduct. 

 

Please be extra cautious when out in the park, especially later in the day as it grows darker. 

 

Follow these tips to increase safety in the park:

• Walk or run in a group–especially in the early or late hours of the day
• Be aware of your surroundings at all times 
• Do not wear headphones 
• Keep your phone out of sight
• Leave valuables at home 

 

Van Cortlandt Park is still the best place in the Bronx to enjoy nature, play sports, and get some fresh air.  We just ask you to be cautious during these times. 

Our Contact Information
Van Cortlandt Park Alliance
80 Van Cortlandt Park South, Ste. E1
Bronx, NY 10463
718-601-1460
http://vancortlandt.org

NEW YORK STATE DEPARTMENT OF LABOR ANNOUNCES BROADENED WORKPLACE VIOLENCE PREVENTION LAW IS NOW IN EFFECT

Law Now Extends to Elementary and Secondary Public Education Facilities that were Previously Exempt

The New York State Department of Labor (NYSDOL) today announced the expansion of the Workplace Violence Prevention Law (Section 27-b of Labor Law) to elementary and secondary public education facilities is now in effect. These facilities must complete a workplace violence policy statement, a workplace risk evaluation, and a workplace violence prevention program by May 3, 2024.

“Our educational facilities are community cores that play a vital role in our economic future," said New York State Department of Labor Commissioner Roberta Reardon. "I commend Governor Hochul and the legislature for protecting students, teachers, and other faculty at schools across New York State.”

This law has been in effect since 2009, but was recently expanded to include public school districts, New York City public schools, Boards of Cooperative Education Services (BOCES), and County Vocational Education and Extension Boards. 

The Workplace Violence Prevention Law requires that covered employers must:

1. Perform a risk evaluation of the workplace and determine the factors that place employees at risk from occupational assaults and homicide.
2. Provide employees with information and training on the risks of occupational assaults and homicides in their workplace or workplaces at the time of their initial assignment and annually thereafter.
3. Establish and implement a system for employees to report incidents of workplace violence.
4. Develop and maintain a Workplace Violence Incident Report and review the report annually.

Additionally, public employers with twenty or more full-time employees must develop and implement a written Workplace Violence Prevention Program. A written policy statement describing the goals and objectives of the Program must be posted where employee notices are usually posted. The Program must be made available, upon request, to employees, the employees’ designated representatives, and NYSDOL.

All newly covered entities must come into compliance on the following timeline:

1. The Employer's Policy Statement must be completed within 30 days of the law going into effect (February 3, 2024).
2. The Workplace Risk Evaluation and Determination must be completed within 60 days of the law going into effect (March 4, 2024).
3. The Workplace Violence Prevention Program must be completed within 75 days of the law going into effect (March 19, 2024).
4. Employers must fully comply with the regulations within 120 days of the law going into effect (May 3, 2024).

Any employee who feels they are experiencing hazardous conditions in the workplace should first provide written notice to a supervisor of the alleged violation and allow reasonable time for correction.

If the matter has not been resolved, employees can file a complaint with the NYSDOL Public Employee Safety & Health Bureau (PESH). Complaints may result in a worksite inspection to determine if the employer has implemented the Workplace Violence Prevention Law requirements. Employers found out of compliance with the law may receive notices of violation. Complaints about public education employers will not be accepted until May 3, 2024, their deadline to come into compliance with the new law.

Public employers can also contact PESH to set up consultation sessions to help them meet compliance standards. PESH’s free consultation services are separate from enforcement and NYSDOL encourages employers to utilize this service.

Prior to the legislation going into effect, NYSDOL has been running a public awareness campaign to bring attention to this new law and the consulting services NYSDOL provides. This campaign will continue through January.

For more information about the Workplace Violence Prevention Law, visit NYSDOL’s Workplace Violence Prevention webpage. 

Justice Department Marks More Than 500 Illegal Firearm Purchases Stopped by New Enhanced Background Checks

 

Expanded Outreach Mandated by the Bipartisan Safer Communities Act Resulted in the 500th Denial of an Unlawful Firearm Purchase by a Person Under the Age of 21 in Late December

On June 25, 2022, President Biden signed the Bipartisan Safer Communities Act (BSCA) into law. Among other provisions aimed at reducing gun violence, BSCA requires the FBI’s National Instant Criminal Background Check System (NICS) to conduct an enhanced background check before any sale or transfer of a firearm to a person under the age of 21 (U21). In addition to the traditional records databases reviewed during a standard background check, these U21 checks involve expanded outreach by the FBI’s NICS Section to state and local officials who may have access to additional disqualifying information.

Since implementing BSCA’s enhanced background checks in October 2022, the FBI NICS Section has conducted enhanced background checks on more than 200,000 transactions. Those checks have kept more than 1,900 firearms out of the hands of dangerous and prohibited persons, and over a quarter of those denials — 527 as of the first week of January — were based solely on information received through the additional BSCA-enabled outreach. Without the enhanced outreach required by BSCA, these 527 U21 transactions would likely have proceeded because the disqualifying information was otherwise unavailable to NICS.

“In the 19 months since the passage of the Bipartisan Safer Communities Act, the law’s expanded background checks have already kept 500 firearms out of the hands of young people who are prohibited from having them,” said Attorney General Merrick B. Garland. “The Justice Department will continue to bring to bear every tool we have to combat the gun violence that plagues our communities.”

The 500th BSCA-specific U21 denial — which was recorded on Dec. 18, 2023 — involved a prospective purchaser whose transaction was denied after a state police officer provided records, otherwise not available to NICS, that showed the prospective purchaser to be an unlawful user of, or addicted to, a controlled substance. Other exemplary U21 denials include:

• A sheriff’s office responded to the NICS Section with an incident report implicating the U21 purchaser in a rape offense. The NICS Section obtained court documentation establishing that the purchaser was convicted of felony rape. The transaction was denied based on the federal prohibitor for persons convicted of a crime punishable by more than one year. 
• A sheriff’s office responded to the NICS Section with an incident report indicating that the U21 purchaser had been arrested for attempted murder and other offenses. The NICS Section obtained court documentation showing that the U21 purchaser was released on bond with court-ordered firearm restrictions pending the resolution of those charges. The transaction was denied based on a state prohibitor for active court-ordered firearm restrictions.
• During BSCA-mandated outreach, a juvenile court provided documentation establishing that a U21 purchaser was found to be mentally ill and involuntarily committed for mental-health treatment. The transaction was denied based on the federal firearm prohibitor relating to mental-health adjudications.
• A police department informed the NICS Section that the U21 purchaser was under felony indictment for sexually exploiting a minor. The transaction was denied based on the federal firearm prohibitor for persons under active felony indictment.
• During BSCA-mandated outreach, a county court provided the NICS Section with documentation that the U21 purchaser had sustained juvenile adjudications for sexual battery, possession of a knife at school, and intimidation. The transaction was denied based on a state prohibitor for disqualifying juvenile adjudications.
• A sheriff’s office informed the NICS Section that a U21 purchaser was currently in jail on multiple pending charges, including domestic violence, robbery, and assault with a dangerous weapon. The transaction was denied based on the federal firearm prohibitor for persons under active felony indictment.
• A police department provided the NICS Section with an incident report for a U21 purchaser who was making suicidal threats and transported for emergency detention at a local in-patient psychiatric center. The transaction was denied based on the federal firearm prohibitor relating to mental-health adjudications.

The FBI continues to engage in extensive education and outreach efforts to improve the state and local partnerships necessary to the success of these enhanced background checks, including by hosting trainings for over 500 law-enforcement agencies and more than 2,000 state criminal-justice officials.

Former Pharmaceutical Executive And Doctor Sentenced For Insider Trading Around Alexion Pharmaceuticals’ Acquisition Of Portola Pharmaceuticals

 

Joseph Dupont, Former Vice President of Alexion, Misappropriated Deal Information and Tipped Another Individual; Slava Kaplan Used Misappropriated Information to Trade and to Tip Others

Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSEPH DUPONT and SLAVA KAPLAN, a/k/a “Stanley Kaplan,” were sentenced to three years’ probation and five months in prison, respectively, for securities fraud in connection with their participation in an insider trading scheme surrounding the announcement of Alexion Pharmaceutical, Inc.’s acquisition of Portola Pharmaceuticals, Inc.  DUPONT and KAPLAN were arrested June 2023 and pled guilty before U.S. District Judge Gregory H. Woods in September 2023. 

U.S. Attorney Damian Williams said: “This Office continues to keep a watchful eye over Wall Street, and we will work quickly to prosecute those who choose to cheat to make a quick buck.  These sentences reflect our commitment to ensuring fairness in the stock market and combatting corruption.” 

According to the allegations in the Indictment and statements made in public court proceedings:

In 2020, DUPONT, KAPLAN, and others engaged in an insider trading scheme surrounding the announcement of Alexion’s acquisition of Portola.  DUPONT was a vice president at Alexion and, on January 31, 2020, was informed of Alexion’s upcoming acquisition of Portola.  Before that acquisition was publicly announced, in April 2020, DUPONT provided material, non-public information (“MNPI”) that he misappropriated from Alexion about the acquisition to a friend so that the friend could use the information to trade profitably in securities.

In turn, DUPONT’s friend provided KAPLAN, who was also known to DUPONT, the MNPI about Portola’s pending acquisition, both so that KAPLAN could trade in advance of the acquisition and so that KAPLAN would assist DUPONT’s friend in formulating trading strategies to maximize DUPONT’s friend’s own trading profits.  KAPLAN further shared MNPI about the upcoming acquisition with a family member and a friend and colleague.  After Alexion’s acquisition of Portola was publicly announced on the morning of May 5, 2020, causing Portola’s stock price to increase significantly, KAPLAN and others who had purchased shares and options based on DUPONT’s inside information sold their shares of Portola and call options for Portola stock, reaping millions of dollars of illegally obtained trading profits.

Additionally, JOSEPH DUPONT, 45, of Rehoboth, Massachusetts, was fined $75,000.  SLAVA KAPLAN, 45, of Hopewell Junction, New York, was sentenced to three years of supervised release and was ordered to forfeit $472,053.61.  

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.  Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.

Statement from Attorney General James on Resignation of NRA Executive Vice President and CEO Wayne LaPierre

New York Attorney General Letitia James released the following statement on the resignation of National Rifle Association (NRA) Executive Vice President Wayne LaPierre. LaPierre, who has spent decades working for the NRA, and has been Executive Vice President and CEO since 1991, is one of five defendants in the lawsuit brought by the Office of the Attorney General (OAG) against the NRA and senior management in August 2020. 

“While the end of the Wayne LaPierre era is an important victory in our case, our push for accountability continues. LaPierre's resignation validates our claims against him, but it will not insulate him or the NRA from accountability. All charities in New York state must adhere to the rule of law, and my office will not tolerate gross mismanagement or top executives funneling millions into their own pockets. Our case will move ahead, and we look forward to proving the facts in court.”

The lawsuit brought by Attorney General James in August 2020 alleged LaPierre and NRA senior management misappropriated millions of dollars to fund personal benefits, including private jets, expensive meals, and even family trips to the Bahamas. The NRA, as a New York-registered not-for-profit, charitable corporation, has legal obligations to use its funds for charitable purposes, not to support the lavish lifestyles of senior management and organization insiders. The OAG investigation found that instead of serving NRA members, senior management blatantly disregarded New York state and federal laws, and even internal NRA policies. The trial is set to begin on January 8. 

BRONX WOMAN WHO SCAMMED IMMIGRANTS IN APARTMENT SCHEME PAYS $60,000 RESTITUTION, IS SENTENCED TO THREE YEARS PROBATION

 

 Bronx District Attorney Darcel D. Clark today announced that a Bronx woman has been sentenced to three years probation after paying restitution in the amount of $60,346 stolen from 21 immigrants in a scheme promising affordable apartments in city-owned buildings.  

 District Attorney Clark said, “The defendant preyed on hardworking immigrants desperate for affordable housing, taking amounts from $1,620 to $3,240 for deposits on apartments, which were enormous sums for the victims. We are pleased to recover more than $60,000 for them.” 

 District Attorney Clark said the defendant, Jennifer Ricardo, 42, of Decatur Avenue, the Bronx, was sentenced today to three years probation after paying restitution in the amount of $60,346, including processing fees, by Bronx Supreme Court Justice Guy H. Mitchell. On November 16, 2022, Ricardo pleaded guilty to third-degree Grand larceny was re-sentenced to petit larceny after paying back the stolen funds. 

 According to the investigation, between June 2019 and September 2020, Ricardo posed as a real estate broker or an employee of city housing agencies. She targeted Spanish speaking immigrants, primarily from the Dominican Republic, accepting rent payments and security deposits for apartments in Bronx buildings. The would-be renters never received keys or got the apartments and could not get in contact with Ricardo after they paid her. 

 District Attorney Clark thanked Police Officer John Istorico of the NYPD Bronx Grand Larceny Squad for his assistance in the investigation. District Attorney Clark also thanked the New York City Department of Investigation, New York City Housing Preservation and Development, New York City Housing Development Corporation, and Safe Horizon for their assistance.  

Governor Hochul Announces Limited Service to be Restored at 5:00 P.M. on 1 and 3 Lines Following Subway Derailment

2 Train will Continue to Run on the 5 Line

Restoration Comes One Day After Derailment

Governor Kathy Hochul today announced the Metropolitan Transportation Authority New York City Transit will resume limited subway service on the 1 and 3 lines to and from a reopened 96 Street Station at 5:00 p.m. today. The restoration comes one day after passengers were finished being safely evacuated from the derailed trains. The incident, at 96 Street 1 2 3 station, involved a passenger train carrying approximately 300 customers and a vandalized train that had been taken out of service at another station.

“MTA has been working around the clock to safely restore this essential subway service to New Yorkers,” Governor Hochulsaid. “I am grateful to all our first responders who were able to evacuate passengers quickly yesterday, and to the workers continuing to ensure that full-service is restored as soon as possible.”

MTA Chair and CEO Janno Lieber said, “New York’s subway system is incredibly resilient and over and over has shown an ability to quickly bounce back. In this case, MTA teams have worked 24 hours straight to reestablish service, and we’ll keep at it until full service is restored.”

The 1 and 3 trains will run limited service in two sections with shuttle bus service provided at skipped stations. The 1 train will run in both directions from its northern terminus at Van Cortlandt Park-242 Street to 96 Street, and from Times Sq-42 Street to South Ferry. The 3 train will run in both directions from its northern terminus at Harlem-148 Street to 96 Street, and from Times Sq-42 Street to New Lots Av. Shuttle buses will provide service for customers in both directions between 96 Street and Times Sq-42 Street. The 2 train will continue to run on the 5 line. These service changes will be in effect until additional tracks can be cleared and any necessary repairs completed.

At approximately 3:00 p.m. on Thursday, Jan. 4, two trains were traveling northbound leaving 96 Street Station at slow speeds at which time the trains bumped into each other and both derailed. There were no reported serious injuries.

Following the incident, crews made substantial progress overnight and through the day on Friday to rerail three cars that had left the tracks. The train that had been in service with passengers was removed and crews are currently addressing the vandalized non-passenger train that derailed on the local track and conducting an inspection of the area and making any necessary repairs to the tracks and infrastructure to enable resumption of full service on the 1 2 3.

The National Transportation Safety Board (NTSB) is on scene and their investigation into this incident is ongoing. Customers are advised to check mta.info and the MYmta app for the latest service updates.