Rodman’s Neck Legislation or Political Stunt for State Senate Candidate

 

Assemblyman Michael Benedetto and State Senate candidate Assemblywoman Nathalia Fernandez stood across the water from Rodman's Neck to introduce legislation to have the New York City Police firing range soil, water, and air monitored for pollutants. 

The purpose of Assembly Bill Number A10613 is to amend the general municipal law in relation to municipal shooting ranges that are used to train local law enforcement and directs the Department of Health to conduct a study describing the contaminants and other pollutants in the ground and water bodies adjacent to certain shooting ranges. The bill would also set hours of operation and acceptable sound level measurements delivering its findings in writing to the governor and legislature one year after the bill's enactment and establish a remediation plan if warranted.

Assembly Bill Number A10613 was introduced after the session ended on July 6, 2022 by sponsor Assemblyman Benedetto, co-sponsored by Assemblywoman Fernandez. There are no other sponsors, and A10613 was referred to the Committee on Local Governments on the same day it was introduced by Assemblyman Benedetto. One has to wonder why a bill like A10613 was not introduced before since both Assembly members Benedetto and Fernandez have been in the assembly for several years. One also has to wonder why it was introduced after Assemblywoman Fernandez declared her State Senate candidacy being substituted for Lisa Hofflich who had qualified for State Senate District 36 after Hofflich withdrew.  

When asked why Councilwoman Marjorie Velazquez was not in attendance the answer was that the state had power over the city on this matter. State Senator Alessandra Biaggi also not in attendance was upstate where she has been for the past month campaigning for a congressional seat. 

Assemblyman Michael Benedetto speaking about the legislation he sponsored and Assemblywoman Nathalia Fernandez co-sponsored about Rodman's Neck in the background. They are joined by members of the Spencer Estates and Edgewater Park communities. 

Governor Hochul Announces Update to State Budget Financial Plan Reflecting Changes to the National Economic Outlook

 

Personal Income Tax Collections Projected Downward

Elevated Reserve Deposits and Balances Being Maintained as Planned

 Governor Kathy Hochul announced today that the first quarterly update to the FY 2023 Enacted Budget Financial Plan has been released. The elevated reserve fund deposits and balances planned since October 2021 will continue even in the face of a changing economic outlook, an example of the continued fiscal discipline of the Hochul Administration.

"Like the rest of the country, New York State is facing substantial headwinds with a changing national economy, and our latest update to the Enacted Budget Financial Plan reflects that," Governor Hochul said. "While the Plan incorporates future budget gaps, our commitment to fiscal discipline and planning for a rainy day remains and reserve fund deposits and balances will stay at the elevated levels we have planned."

The Plan update reflects clear signs of economic distress in the national economy, which trickles down to the State economy. Real Gross Domestic Product (GDP) decreased at an annual rate of 0.9 percent in the second quarter of calendar year 2022, which follows a first quarter decrease of 1.6 precent. Consumer prices through June 2022 increased by 9.1 percent over 12 months, the largest increase since the 12 months ending November 1981. Financial sector performance, which is an important source of tax collections in New York State, has continued to weaken in response to unfavorable economic data. Through late July, every major stock index is down more than 10 percent, with the NASDAQ index down over 23 percent and the S&P 500 down 15.1 percent, since the start of calendar year 2022.

Starting in FY 2024, the annual estimates for personal income taxes (PITs) have been reduced substantially from the Enacted Budget in recognition of a weaker economic outlook for both the U.S. and the State. The estimated payment component of PIT, which includes capital gains activity, is reduced by $3.1 billion in FY 2024, $5.1 billion in FY 2025, $5.7 billion in FY 2026, and $8.4 billion in FY 2027. The reduction is partly offset by a $1 billion annual increase in the withholding component of PIT, reflecting growth from a higher expected base in FY 2023.

The updated Financial Plan reflects an additional General Fund surplus of $2.3 billion in FY 2023 and a gap of $310 million in FY 2024, after the planned use of the FY 2023 surplus in FY 2024. The budget gaps in the out-years are estimated at $3.6 billion in FY 2025, $3.5 billion in FY 2026, and $6.2 billion in FY 2027. The budget gaps are almost exclusively attributed to the reductions to the tax receipts forecast.

The State has continued to strengthen reserve funds that serve as a bulwark against precipitous service cuts or tax increases during an economic downturn. At the end of FY 2022, the State's principal reserves totaled nearly $9 billion. Over the next three years, additional deposits of $10.4 billion will bring reserves to $19.4 billion, equal to 15 percent of State Operating Funds spending, the fiscal target set by Governor Hochul in October 2021. Reserves in FY 2025 exceed the projected budget gaps by roughly $6 billion.

The Plan update is available on the Division of the Budget website.

MAYOR ADAMS, CITY OF NEW YORK, COALITION OF STATES SECURE SETTLEMENT WITH USPS TO IMPROVE PRACTICES AGAINST ILLEGAL CIGARETTE SHIPMENTS

New York City Mayor Eric Adams and New York City Corporation Counsel Sylvia O. Hinds-Radix today announced a settlement with the United States Postal Service (USPS) that implements robust measures to end the unlawful practice of mailing cigarettes into the United States by foreign shippers. The settlement resolves a lawsuit filed by the City of New York and four state attorneys general alleging the USPS transported cigarettes in violation of a 2010 federal law.

 

“We were not going to stand idly by as foreign shippers circumvented federal law in an effort to avoid billions in taxes and hook underage kids on nicotine,” said Mayor Adams. “With today’s action, we are not only getting the USPS to agree to address longstanding shortfalls in their practices, but are making clear to foreign shippers that their products may be seized and destroyed if they continue to ship cigarettes illegally through the mail.”

 

“We are pleased the Postal Service has agreed to implement extensive controls to stop the flow of illegal cigarette shipments through its facilities,” said Corporation Counsel Hinds-Radix. “Illegal mail-order cigarette deliveries deprive federal, state, and local government of billions of dollars in tax revenue and allow underage access to cigarettes. The City of New York will continue to hold accountable entities that transport cigarettes illegally and turn a blind eye to the law.”

 

Enacted by Congress in 2010, the Prevent All Cigarette Trafficking (PACT) Act prohibits the USPS from knowingly accepting or transporting cigarettes in the mail unless authorized by certain narrow exceptions. For the most part, the PACT Act appears to have deterred domestic sellers from shipping cigarettes using the USPS, but has been less effective in eliminating cigarettes mailed from overseas.

 

Investigations undertaken by the New York City Sheriff’s Office and multiple state attorneys general from across the country have revealed that hundreds of thousands of packages of cigarettes are estimated to be mailed through foreign postal services, transferred into the U.S. mail system, and delivered to U.S. households each year. These investigations include package audits at USPS international mail facilities and undercover investigations of international cigarette sellers delivering to U.S. households. The investigations demonstrated that the USPS’s practices for detecting and stopping the transport and delivery of cigarettes from overseas sources to consumers have been ineffective over the last decade.

 

Following unsuccessful attempts by the city and others to negotiate improvements to the USPS’s compliance with the PACT Act, in October 2019, the city co-led a lawsuit in federal court in Brooklyn, seeking a permanent injunction prohibiting the USPS from delivering packages known or reasonably believed to contain cigarettes and prohibiting the USPS’s practice of returning identified packages of cigarettes to shippers. The USPS’s attempt to dismiss the lawsuit was denied, and the court ruled that the USPS was subject to suit by state and local governments for violations of the PACT Act and that the USPS’s practice of returning cigarette packages to overseas senders, as alleged in the complaint itself, violated the PACT Act.  

 

In the settlement, the USPS has agreed to implement the following comprehensive reforms:

 

• Upgrade its Advance Electronic Data technology to significantly improve its ability to detect cigarette packages in international mail.
• Permanently discontinue its practice of returning cigarette packages to senders that would often just resend the packages in another attempt to get them delivered. Instead, the USPS has agreed to destroy these cigarette packages as allowed by law, a costly disincentive to these international shippers.
• Provide the identifying information of illegal shippers to plaintiffs’ law enforcement arms so enforcement actions can be taken.
• Designate a compliance manager to oversee and manage PACT Act compliance, including ensuring that the changes in this agreement are implemented.
• Form a joint committee with representatives of each of the plaintiffs that will assess the USPS’ progress on implementing reforms.
• Implement additional policies and employee training to ensure compliance with the PACT Act, and help employees recognize and dispose of packages containing cigarettes.

 

Cigarette smoking is a leading cause of preventable premature death in the United States. Smoking annually kills more than 480,000 people nationwide, a figure that exceeds the combined number of deaths from alcohol, motor vehicle collisions, and firearms. According to the World Health Organization and numerous public health studies, maintaining high taxes on cigarettes is the most effective anti-smoking policy intervention, particularly among youth.  

The city’s action against the USPS follows prior successful actions against Federal Express, United Parcel Service, and LaserShip, among others, for shipping cigarettes in violation of the PACT Act.  

 

Joining the City of New York in announcing this settlement are the attorneys general of California, Connecticut, Illinois, and Pennsylvania.

  

Attorney General James Announces Indictment of Long Island Physician for Defrauding Medicaid and Subjecting Patients to Invasive and Medically Unnecessary Testing

 

Payam Toobian, M.D., Allegedly Paid Kickbacks to Physicians for Patient Referrals and Subjected Medicaid Patients to Unnecessary Radiological Tests 

New York Attorney General Letitia James today announced the indictment of Payam Toobian, M.D., 52, of Kings Point, New York, and his company, America’s Imaging Center, Inc. (America’s Imaging), for defrauding Medicaid by forcing patients to get unnecessary and invasive medical tests. For years, Toobian allegedly ran a kickback scheme where he bribed other physicians for patient referrals, subjected some of those patients to tests and procedures that they did not need, and then caused false claims to be submitted to Medicaid for those tests. Toobian, through his corporation America’s Imaging, operated Empire Imaging, a diagnostic radiology center in Forest Hills, Queens. Toobian was charged with Grand Larceny in the Third Degree, Health Care Fraud in the Third Degree, eight counts of Falsifying Business Records in the First Degree, and three counts of violating the Social Services Law statute prohibiting the payment of kickbacks related to the provision of services under the state’s Medicaid program, all felony charges. 

“New Yorkers should be able to trust that their doctors are working to heal them, not profit off of their suffering,” said Attorney General James. “Bribery and kickback schemes corrupt our healthcare system and make it impossible for patients to receive the care that they need. The idea that a licensed physician would subject patients to unnecessary testing to line their pockets is unconscionable, and my office will continue to go after medical providers that jeopardize the health and safety of New Yorkers.” 

From January 2006 to August 2017, Toobian allegedly gave gift cards, cash, and checks totaling more than $547,000 to three physicians in exchange for the physicians’ referral of patients (including Medicaid beneficiaries) to Empire Imaging. Empire Imaging received more than $1 million in paid claims relating to patient referrals from those physicians. In addition to this kickback scheme, from January 2014 to August 2017, Toobian allegedly directed his employees at Empire Imaging to add additional, unordered radiological procedures to orders submitted by referring physicians to increase the amount of money Empire Imaging would receive from Medicaid. 

Toobian allegedly defrauded Medicaid, and subjected patients to medically unnecessary and often invasive radiological testing without the direction, consent, or approval of the referring physicians responsible for the underlying care of those patients. The additional, unnecessary tests included MRIs of the brain, cervical spine, and lumbar spine, all “with contrast,” which required subjecting patients to unnecessary and invasive injections. Toobian then directed his staff to submit claims for payment to Medicaid for those medically unnecessary tests.  

The Office of the Attorney General (OAG) is also, in a separate civil lawsuit filed in the United States District Court for the Eastern District of New York, seeking damages from Toobian and America’s Imaging, among other defendants, for violating the Federal and New York State False Claims Act and for other civil causes of action. 

The OAG would like to thank the U.S. Department of Health and Human Services, Office of the Inspector General, New York State Department of Health, and Medicaid MCOs, HealthFirst, MetroPlusHealth, and United Healthcare, for their cooperation and valuable assistance throughout the investigation. 

MFCU’s investigation was led by Detectives Thomas Bolen, Robert Hatt, Dawn Scandaliato, and Michael McNally, with the assistance of Supervising Detective Ronald Lynch, Deputy Chief Kenneth Morgan, and Deputy Chief William Falk. The underlying financial analysis was completed by Senior Auditor-Investigator Deowattie Persaud and Auditor-Investigator Khristian Diaz, with assistance from Regional Chief Auditor Stacey Millis. 

The charges filed in this case are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law. 

New York MFCU’s total funding for federal fiscal year (FY) 2022 is $59,918,216. Of that total, 75 percent, or $44,938,664, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $14,979,552 for FY 2022, is funded by New York state.   

Reporting Medicaid Provider Fraud: MFCU defends the public by addressing Medicaid provider fraud and protecting nursing home residents from abuse and neglect. If an individual believes they have information about Medicaid provider fraud or about an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online or call the MFCU hotline at (800) 771-7755. If the situation is an emergency, please call 911.  

NYS Office of the Comptroller DiNapoli: State Pension Fund Posts 9.5% Annual Investment Return

 

New York State Comptroller Thomas P. DiNapoli today announced that the New York State Common Retirement Fund’s (Fund) investment return was 9.51% for the state fiscal year that ended March 31, 2022. The return on investments increased the Fund’s value to $272.1 billion. “There has been tremendous volatility in the markets in recent months, but thanks to the state pension fund’s diverse investments, it finished the year above our assumed rate of return,” DiNapoli said. “Still, the turmoil in the markets since Russia’s invasion of Ukraine has sent shockwaves through the financial world with repercussions that are ongoing. With inflation and supply chain issues continuing to impact the economy, we expect a challenging investment environment for the foreseeable future.” The Fund's value reflects retirement and death benefits of $14.7 billion paid out during the fiscal year. Employer contribution rates are determined  by investment results over a multi-year period along with numerous other actuarial assumptions, including wage growth, inflation, age of retirement and mortality. Integral to the Fund’s strength have been the state and local governments, which consistently pay their contributions. As of March 31, 2022, the Fund had 49.70% of its assets invested in publicly traded equities. The remaining Fund assets by allocation are invested in cash, bonds, and mortgages (21.18%), private equity (13.64%), real estate and real assets (10.00%) and credit, absolute return strategies and opportunistic alternatives (5.48%). The Fund’s long-term expected rate of return is 5.9%. The timing of Fund’s annual valuation date is tied to the state fiscal year. Every three years the Fund is required to undergo an independent Fiduciary and Conflict of Interest Review. The review, most recently performed by Kroll LLC, found the Fund “continues to be a leader amongst its peers for management and operational transparency.”   Links Fund’s historic value and rate of return in prior years Third quarter results Return for 2021 Independent Fiduciary and Conflict of Interest Review

Governor Hochul Announces $682 Million in Financing for Affordable Housing

 Funding will Create or Preserve 1,600 Sustainable, Affordable, Supportive Homes Across New York State

 Governor Kathy Hochul today announced $682 million in bonds and subsidies have been awarded to create or preserve more than 1,600 affordable, sustainable, and supportive homes across the state. The developments will leverage an additional $218 million in private funding to create an overall investment of nearly $901 million to further local economic development efforts, reduce homelessness, and advance New York's commitment to expanding safe, secure and healthy housing opportunities for individuals and families.

"We are working tirelessly to expand much-needed affordable housing across New York State, and these new developments will help us build toward a more stable and equitable future for the next generation," Governor Hochul said. "When we invest in modern and healthy housing, we strengthen our communities and provide new opportunities for New Yorkers to thrive and succeed, and today is a significant step in helping secure and preserve safe, livable, and quality affordable housing for all New Yorkers."

The awards are part of Governor Hochul's sweeping plans to make housing more affordable, equitable, and stable. The Governor has introduced and successfully secured, in the 2022-23 State Budget, a new $25 billion, five-year, comprehensive housing plan that will increase housing supply by creating or preserving 100,000 affordable homes across New York including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes.

The financing is made possible through New York State Homes and Community Renewal's June 2022 bond issuance which provided $463 million in taxable and tax-exempt housing bonds and $219 million in subsidy, including $5 million in financing though the Clean Energy Initiative pilot program

Awards include:

Capital Region

$21 million for Yates Village Phase II, Parcel 3 in the city of Schenectady's Goose Hill neighborhood. The project will demolish and replace six existing public housing rental buildings along Van Vranken Avenue originally constructed in 1948. Once all phases of the project are complete, the 37 new two-story buildings will offer 211 affordable homes, including 43 apartments reserved for individuals with physical disabilities. These residents will have access to onsite services provided by the Schenectady Community Action Program. Phase I of the Yates Village redevelopment, also financed by HCR, was completed in 2021 and rebranded as Northside Village. The development team for Phase II consists of Pennrose Holdings, Duvernay + Brooks, LLC, and the Schenectady Municipal Housing Authority.

$50.7 million for The Lion Factory in the city of Troy. The historic industrial building will be adapted into 151 affordable apartments and nearly 9,000 square feet of ground floor commercial space. Occupying an entire city block, the six-story building is on the National Register of Historic Places. The building's historically and architecturally significant design elements will remain intact, while also incorporating new energy efficiency measures including all-electric heating and cooling systems. Twenty-five homes will be reserved for homeless families in need of supportive services provided by the Unity House of Troy and funded through the Empire State Supportive Housing Initiative. The developer is Regan Development Corporation.

Finger Lakes

$70 million for Tailor Square in the city of Rochester. The project will convert the historic four-story manufacturing building home to Hickey Freeman into 134 affordable apartments, including 45 homes for seniors in need of supportive services funded through the Empire State Supportive Housing Initiative. Originally constructed in 1910, the building will undergo a gut renovation that will preserve the historic architecture and retain approximately 77,000 square feet of manufacturing space and an outlet store for continued use by Hickey Freeman. The energy-efficient design will incorporate geothermal and photovoltaic solar technology to manage the heating and cooling systems. The developer is Home Leasing.

$46 million for Canal Street Apartments in the city of Rochester. The project will convert a vacant factory and warehouse known as the Utz and Dunn Shoe Company Building into 123 affordable apartments. Located in the Susan B. Anthony historic neighborhood, the century-old building's original architectural details and industrial character will be carefully preserved. Seventy apartments will be reserved for adults experiencing homelessness who will have access to on-site supportive services funded through the Empire State Supportive Housing Initiative and administered by the New York State Off. The developer and service provider is East House.

Mid-Hudson

$80 million for West View Apartments in the city of New Rochelle. The 24-story building at 26 Garden Street in the city's historic downtown will offer 186 affordable apartments and residential parking. The development is the result of New Rochelle's transit-oriented rezoning designed to make downtown more economically vibrant and pedestrian friendly. The developer is MJ Garden Affordable Developer, a joint venture between Mark Stagg and Joseph Simone.

$32 million for the La Mora Senior Apartments in the city of Yonkers' Hollow neighborhood located southwest of the Central Business District. When complete, the newly constructed building will feature 60 apartments for seniors aged 62 and older who will each receive Section 8 Project-Based Voucher Housing Assistance administered by the Municipal Housing Authority of the city of Yonkers. The development incorporates sustainable design elements and is expected to achieve Passive House certification. The developer is The Mulford Corporation.

New York City

$65 million for Logan Fountain in the Cyprus Hills neighborhood of Brooklyn. The 13-story U-shaped building will offer 174 affordable apartments, including 105 with supportive services. The building's east wing will contain a separately owned and financed transitional housing facility for families being served by the NYC Department of Homeless Services. The building will also include a nearly 10,000-square-foot residential courtyard and 7,600 square feet of ground floor retail space along Atlantic Avenue. The development team is a joint venture between The Hudson Companies and DCV Holdings, Inc.

$104 million for Phase 1B of the redevelopment of the Brooklyn Developmental Center. The redevelopment of this 35-acre property in East New York is part of the Vital Brooklyn Initiative, a comprehensive community development initiative that is addressing chronic social, economic, and health disparities in Central Brooklyn. The six-phase redevelopment is expected to ultimately create 2,400 affordable homes with other mixed-uses on a campus with walkways, streets, and open space. Phase 1B consists of a six-story building with 124 apartments designed to be all-electric and achieve Passive House standards. The development team is Apex Building Company, Inc., and L+M Development Partners, LLC.

$123 million for Starhill Phase I in the Morris Heights section of the Bronx. The newly constructed development will offer 326 apartments, including 200 with supportive services funded through the Empire State Supportive Housing Initiative and administered by the New York State Office of Addiction Services and Supports. Residents will benefit from free internet access in each unit, and several building-wide amenities. The developers are Bronx Pro and Services for the Underserved.

Southern Tier

$58 million for the rehabilitation of three public housing developments operated by the Ithaca Housing Authority to create 118 modern and affordable homes in the city of Ithaca. Overlook Terrace and Southview Gardens will undergo extensive upgrades while Northside Apartments will be demolished and replaced with 82 townhouse-style apartments and two new playgrounds. The new construction of Northside Apartments is designed to meet HCR's Stretch Sustainability Standards for energy efficiency and was awarded additional subsidy through the Clean Energy Initiative. The development team consists of the Ithaca Housing Authority and 3D Development Group LLC.

Western New York

$31 million for Whitney Apartments in Buffalo's West Village Historic District. Ten historic multifamily buildings with 135 apartments will undergo substantial repairs and improvements designed to enhance quality of life, improve safety, and reduce energy consumption. Twenty-one homes will be reserved for veterans experiencing homelessness who will have access to supportive services from Soldier On. All 135 apartments will be covered under a Project-Based Section 8 Housing Assistance Payment contract administered by the federal Department of Housing and Urban Development. The developer is Winn Companies.

MAYOR ADAMS ANNOUNCES EMERGENCY PROCUREMENT DECLARATION TO RAPIDLY PROCURE SHELTER, SERVICES FOR ASYLUM SEEKERS

 

Emergency Procurement Declaration Will Allow City to Rapidly Contract With Shelter and Service Providers  

City in Discussions With Federal Government to Seek Reimbursements for Emergency Costs 

 New York City Mayor Eric Adams today announced an emergency procurement declaration to rapidly procure shelter and other services for people seeking asylum in New York City. 

  

“New York is a city of immigrants, and we will always welcome newcomers with open arms. Over the past two months, we have seen a significant increase in the number of asylum seekers arriving in our city’s shelter system,” said Mayor Adams. “To fulfill our city’s legal and moral mandate to provide quality shelter to anyone experiencing homelessness, and to ensure we are providing appropriate services to asylum seekers, we are immediately issuing an emergency procurement declaration to rapidly procure additional shelter and services to serve these individuals and families. We are working across city agencies and with not-for-profit partners to ensure these individuals have access to a range of services, including legal support, health care, and education. We can no longer wait — and this declaration will allow the city to procure sorely needed additional resources as quickly as possible. We are deeply committed to providing shelter and support to everyone who needs it, and we cannot do this work alone. We will continue to work with federal and state partners to procure additional financial resources immediately.”  

 

“New York’s commitment to providing shelter is an essential part of what makes our city a welcoming safe haven," said New York City Comptroller Brad Lander. "We will work closely with the administration to appropriately expedite contracts and ensure New York City can deliver the shelter and services that families seeking asylum here urgently need.” 

  

Approximately 4,000 asylum seekers have entered the New York City shelter system since late May — the primary driver of the approximately 10 percent increase in the New York City Department of Homeless Services’ census. Additionally, on average, the city’s shelter system is currently receiving over 100 additional asylum seekers looking for some form of housing per day. To protect individuals from federal detainment or deportation, and because the city provides shelter to all who need it — regardless of immigration status — the city does not track individuals’ immigration status on intake forms. Accordingly, this is a conservative estimate based on comprehensive interviews of people entering the city shelter system. An influx of approximately 4,000 individuals requires a significant number of new shelter sites to ensure appropriate capacity. 

 

"Boiler Room" Operator Pleads Guilty to International Securities Fraud Conspiracy

 

Defendant and Co-Conspirators Manipulated the Price and Trading Volume of a Publicly Traded Stock in the United States

 Earlier today, in federal court in Brooklyn, Lee Cohen, a citizen of the United Kingdom, pleaded guilty to conspiracy to commit securities fraud for his role in a scheme to manipulate the price and trading volume of HD View, 360, Inc. (HDVW), a publicly traded company that purported to distribute and install security surveillance systems.  In connection with his plea, Cohen also admitted that he agreed to launder money that was purported to be the proceeds of similar securities fraud schemes.  The proceeding was held before United States District Judge Kiyo A. Matsumoto.  When sentenced, Cohen faces up to five years in prison.

Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty plea.

“Cohen ran his scam from a ‘boiler room’ more than 8,000 miles from the federal courtroom in Brooklyn where he pleaded guilty today to defrauding investors, proving that distance will never protect criminals from the reach of our Office’s outstanding attorneys and FBI Special Agents who brought the defendant to justice,” stated United States Attorney Peace.

Mr. Peace thanked the United States Securities and Exchange Commission, New York Regional Office and Washington, D.C. Office, for their assistance in the case. 

As set forth in court filings, Cohen operated a self-described “boiler room” in the Philippines.  Cohen and his co-conspirators used the boiler room to defraud investors and potential investors in HDVW by inducing investors to buy HDVW shares at particular prices.  At the same time, Cohen coordinated with a co-conspirator who controlled the majority of HDVW’s shares, then sold the shares for a profit.  During the scheme, over 1,000 investors purchased shares of HDVW and lost more than $1.2 million.   

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.