NYPD Announces Citywide Crime Statistics for September 2023

 

Shootings, Murders, Robberies, and Burglaries Driven Down across New York City

Mirroring the downward trend experienced through the first nine months of this year, overall index crime declined again in September 2023 compared to September 2022, led by an ongoing reduction in violence and the demonstrable effects of intelligence-driven precision policing.

For the month of September 2023, New York City saw a 34.2% drop in shooting incidents compared to September 2022 (77 v. 117). This distinct decline extended the 27.1% decrease in shooting incidents citywide through the first nine months of 2023 compared to the same period one year ago (760 v. 1,043) – which translated to 378 fewer people shot this year compared to last year. Additionally, the number of homicides in September 2023 dropped by 27.9% (31 v. 43).

In September, the NYPD continued to make hundreds of gun arrests – 413 arrests resulting in 550 illegal firearms seized during the month. Overall, NYPD officers have effected 3,353 gun arrests and seized nearly 5,100 illegal firearms through the first nine months of 2023. Since the start of this administration, police have arrested nearly 8,000 people for illegal gun possession and seized more than 12,200 illicit firearms – each of which will never claim another victim.

The NYPD’s progress in driving down crime reflects the department’s gun-violence reduction strategies, which include building trust, strengthening relationships, and leveraging partnerships in communities across the five boroughs.

Overall index crime declined by 5.6% (10,574 v. 11,207) in September 2023 compared to the same period a year ago. Individual crime increases were driven mainly by grand larceny auto, which rose by 19.5% (1,439 v. 1,204). At the same time, New York City saw a drop in five of the seven index crime categories in September, including a 27.0% reduction in burglary (1,057 v. 1,447), a 9.4% drop in grand larceny (4,155 v. 4,588), and a 7.3% decline in robbery (1,419 v. 1,530). Overall index crime in the city’s transit system decreased by 12.5% (95 v. 157) in September, while the city’s housing developments saw a 6.1% reduction (462 v. 492). The total number of bias incidents investigated by the NYPD Hate Crime Task Force dropped by 14% (43 v. 50) in September, and by 21% (386 v. 486) over the first nine months of this year compared to the same period last year.

NYPD officers made 2.5% more arrests in the seven major crime categories (4,446 v. 4,338) during September 2023. And through the first nine months of this year, officers arrested 12.7% more people (39,885 v. 35,378) for committing major crimes than during the same period last year.

During the NYPD’s 2023 summer initiative, which stretched from the beginning of May through mid-September, and saw hundreds of officers temporarily reassigned to dozens of commands throughout the city, overall index crime dropped by 1.4%, shooting incidents decreased by 25.8%, and overall enforcement – arrests and summonses – exponentially increased compared to the same period in 2022.

Heading into the final three months of 2023, the men and women of the NYPD remain steadfast in their ongoing efforts to drive down crime, improve quality of life, and earn the confidence of everyone who lives in, works in, and visits New York City.

“New York City continues to see a significant, sustained reduction in violent crime,” said NYPD Commissioner Edward A. Caban. “And this is no accident. These public safety gains are the direct result of the relentless, intelligence-driven work of your NYPD officers – and that work will continue every day, in every neighborhood. We will never stop fighting to make New York City better tomorrow than it is today.”

*All crime statistics are preliminary and subject to further analysis, revision, or change.*

Index Crime Statistics: September 2023

	September 2023	September 2022	+/-	% Change
Murder	31	43	-12	-27.9%
Rape	120	144	-24	-16.7%
Robbery	1419	1530	-111	-7.3%
Felony Assault	2353	2251	102	4.5%
Burglary	1057	1447	-390	-27.0%
Grand Larceny	4155	4588	-433	-9.4%
Grand Larceny Auto	1439	1204	235	19.5%
TOTAL	10574	11207	-633	-5.6%

Additional Statistics For September 2023

September 2023	September 2022	+/-	% Change
Transit	175	200	-25	-12.5%
Housing	462	492	-30	-6.1%
Shooting Incidents	77	117	-40	-34.2%

Rape Incident Reporting Statistics: September 2023

(Reports from September 1 – September 30 in years indicated)

Year	Total  Incidents  Reported	Incident  Occurred  Same Year	Incident  Occurred  Previous  Year	Incident  Occurred  2 Years  Prior	Incident  Occurred  3 Years  Prior	Incident  Occurred  4 Years  Prior
2023	120	97	10	6	0	0
2022	144	116	8	6	1	2
2021	131	101	11	3	1	0
2020	145	113	10	3	2	1
2019	172	143	10	4	4	4
2018	145	107	11	3	3	1

Rape continues to be underreported. If you are a victim of sexual assault, please come forward. The 24-hour NYPD Special Victims Division hotline is: 212-267-RAPE (7273).

Hate Crimes Statistics Summary for September 2023

(Representing September 1st – September 30st for calendar years 2023 and 2022)

Motivation	2023	2022	Diff	% Change
Asian	5	2	3	150%
Black	8	5	3	60%
Ethnic	0	13	-13	-100%
Gender	0	1	-1	-100%
Hispanic	1	0	1	100%
Jewish	16	18	-2	-11%
Muslim	1	2	-1	-50%
Religion	2	1	1	100%
Sexual Orientation	10	8	2	25%
TOTAL	43	50	-7	-14%

Note: Statistics above are subject to change upon investigation, as active possible bias cases may be reclassified to non-bias cases and removed from counted data.

EDITOR'S NOTE:

These stats are for reported crimes only, as a former police commissioner admitted much crime goes unreported.

Two Defendants Convicted Of Murder For Hire In Fatal Shooting of Perceived Business Rival in Queens

A federal jury in Brooklyn returned a guilty verdict against Qing Ming Yu, also known as “Allen” and Zhe Zhang, also known as “Zack,” on both counts of an indictment charging them with murder-for-hire and murder-for-hire conspiracy in connection with the February 12, 2019 killing of 31-year-old Xin “Chris” Gu, outside of a karaoke bar in Queens. The verdict followed a two-week trial before United States District Judge Carol Bagley Amon.  When sentenced, each defendant faces a mandatory term of life in prison.

Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.

“The victim worked long hours to start his own company only to be murdered execution-style by these treacherous defendants who thought nothing of snuffing out a human life as part of their own business plan,” stated United States Attorney Peace.  “Thanks to the jury, and the outstanding work of the prosecutors, NYPD detectives and FBI special agents, justice has been served and the defendants will be deservedly punished for this vicious killing.”

 As proven at trial, Allen Yu was the president of Amaco, a multi-million dollar construction company that renovated apartments in New York City. In 2015, Xin Gu joined Amaco as a project manager.  Although Amaco’s business nearly quadrupled after he joined the company, Xin Gu became concerned about the company’s financial viability and resigned in 2018 to start his own property development company called KG Management.  After Xin Gu’s departure, several clients and employees also cut ties with Qing Ming Yu’s business. Multiple companies took their lucrative projects from Amaco to KG Management, including one project valued at $1,000,000. Enraged at Xin Gu’s perceived disloyalty, Qing Ming Yu hired co-conspirator You You and Zhe Zhang to kill Xin Gu in exchange for payment.  Zhang in turn hired another co-conspirator, Antony Abreu, to assist in carrying out the murder. 

On the evening of February 11, 2019, into the following morning, Xin Gu’s new company hosted a celebration of the Lunar New Year at Lake Pavilion restaurant in Flushing. After that dinner, Xin Gu and a smaller group went to a karaoke bar, Grand Slam KTV on Fowler Avenue. The hit team learned of the party and with You You acting as a lookout and Zhe Zhang serving as the getaway driver, Abreu allegedly shot the victim multiple times as he waited for an Uber, killing him. Over the next three months, Qing Ming Yu paid $150,000 to You You for the murder.

You You pleaded guilty to murder-for-hire conspiracy in June 2023 and is awaiting sentencing.  Abreu is awaiting trial.

Victory Automotive Group Inc. Agrees to Pay $9 Million to Settle False Claims Act Allegations Relating to Paycheck Protection Program Loan

 

Port Richey, Florida-based automotive management company Victory Automotive Group Inc. (VAG) has agreed to pay $9 million to resolve allegations that it violated the False Claims Act (FCA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application it submitted.

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business depended on various factors, including the number of employees, amount of revenues and net worth of the applicant, along with any other corporate affiliates that share common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.

VAG’s application for a PPP loan certified it was a small business with fewer than 500 employees. However, VAG shared common operational control with dozens of automobile dealerships across the country, and VAG and its affiliates had more than 3,000 employees in total. For that reason, VAG was not eligible for the $6,282,362 PPP loan it received, which was later forgiven in full. 

“PPP loans were intended to help small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who undermined the purpose of the PPP program and knowingly obtained PPP funds for which they were not eligible.” 

“Even though the PPP Program has ended, our mandate to investigate and redress the harm from improper PPP loans to companies and sole proprietors continues,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to seek repayment of those loans and, where appropriate, additional sanctions from applicants who obtained a loan to which they were not entitled.”

“This resolution demonstrates the department’s resolve in pursuing businesses that improperly received pandemic relief funds,” said Director Michael C. Galdo of the Justice Department's COVID-19 Fraud Enforcement. “I want to thank the Small Business Association (SBA) and our law enforcement partners for their assistance with the Justice Department’s pandemic fraud enforcement efforts.” 

“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said SBA General Counsel Therese Meers. “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.” 

The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned U.S. ex rel. Jones v. Victory Automotive Group, Inc, et al., No. 8:21-cv-1742 (M.D. Fla.). The whistleblower will receive a total of approximately $1.62 million in connection with the settlement. 

The resolution obtained in this matter was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA's Office of Inspector General.

This matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida, with assistance from Christopher J. McClintock of the SBA.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

DEC Announces More Than $1.35 Million in Grants to Land Trusts to Secure Forest Conservation Easements

Conserving Forested Land Combats Climate Change and Sustains Benefits to Local Communities

New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos today announced more than $1.35 million in grants to six land trusts to help protect local forests that are key to achieving the state’s objectives to protect open space and reduce the emissions that cause climate change. Grant funding will be used to acquire new easements to help keep forests as forests, safeguarding the ecosystem services they provide that include stormwater mitigation, temperature regulation, carbon sequestration, and climate resiliency.

“Working in close partnership with land trusts across New York State is critical to protecting forest lands from the pressures of development,” Commissioner Seggos said. “In the face of the ever-increasing challenges of climate change, the $1.35 million in land trust grants announced today are helping conserve New York’s forests by sustaining their ability to provide wildlife habitat and forest products, reduce air and water pollution, and contribute to the overall health and wellbeing of local communities.”

The grants, managed by DEC in partnership with the Land Trust Alliance, were made available through the Forest Conservation Easements for Land Trusts (FCELT) Grant Program.

“Protecting forests in New York does so much for nature and people,” said Jamie Brown, New York Program Manager for the Land Trust Alliance. “This program helps to ensure that forests will continue to offer many benefits for future generations, both in terms of connected ecosystems and the local economy. The Land Trust Alliance and our nearly 90 New York land trust members appreciate Governor Kathy Hochul, the New York State Legislature, and the DEC's support of this program that will continue to allow land trusts to work with willing landowners to protect their forested lands and benefit all of the people of New York.”

Funded projects include: 

Adirondack Land Trust, Warren County: $350,000 to purchase a conservation easement that will protect 500 acres of forest in the Adirondack Park. The forest is comprised of beech and sugar maples with strands of hemlock-northern hardwoods. In addition to the forest, the easement will protect wild shoreline along the Hudson River, 1.5 miles of streams, and significant wetlands. Additionally, the property will improve recreational opportunities and protect wildlife habitat in the Hudson River corridor, goals established in the New York State Open Space Plan.

Saratoga PLAN, Saratoga County: $301,497 to purchase a conservation easement on a 435-acre forested property located in the towns of Greenfield and Wilton. The property is a key project in the PLAN’s initiative to protect the 40,000 Palmertown Range that is part of the southeastern corner of the Adirondack Foothills. Saratoga County is under extreme development pressure, and the Palmertown Range represents an area critical for the movement of wildlife, providing climate resilient habitat, and recreational opportunities. The conservation easement will allow the landowners to sustainably harvest the forested tract while ensuring it will remain a forest and continue to provide these benefits for future generations.

Western New York Land Conservancy, Cattaraugus County: $227,474 to purchase the Perrysburg Headwater Forest conservation easement consisting of approximately 152 acres of forested area within the headwaters of the Allegheny River. The property contains both mature hemlock-northern hardwoods forest and maple basswood forests, as well as mature beech trees free from any diseases. The land is also a part of the Western New York Wildway, an initiative to protect and connect the region’s largest and most climate resilient forests to benefit people and wildlife.

Dutchess Land Conservancy, Dutchess County: $189,605 to purchase a conservation easement on the 71-acre Johnston Forest property, which is adjacent to the Appalachian Trail and West Mountain State Forest. The property is in a critical forested corridor that connects the northern and southern Appalachians. The forest offers great value for habitat connection and a portion of the land has been classified as “Important Foraging Area for Rare Bat” by the New York Natural Heritage Program. Protection of the land will help ensure that important water sources remain safe and clean, as it contains nearly 2,000 feet of DEC Class A stream and several springs that supply local drinking water to nearby communities. Mature and undisturbed oak and hickory are the predominant trees on this forested parcel.

Tug Hill Tomorrow Land Trust, Lewis County: $181,150 to purchase a conservation easement that will protect 375 acres of forest and wetlands within the core of the Tug Hill Plateau forest – an area listed as a priority for protection in the New York State Open Space Plan. The Campell Conservation Easement property is surrounded by thousands of acres of protected forest owned by The Nature Conservancy, New York State, and Tug Hill Tomorrow Land Trust. The easement will protect a beech-maple mesic forest, a marsh headwater stream, and a spruce-fir swamp, along with significant wetlands.

Mohawk-Hudson Land Conservancy, Montgomery County: $104,609 to purchase a conservation easement in the town of Esperance that will protect 102 acres of mostly forested land. The forest contains a wide variety of species, including red pine, mature Eastern hemlock, birch, aspen, and healthy beech trees. The land offers breeding habitat for several birds listed as “species of greatest conservation need,” including American woodcock, American kestrel, eastern meadowlark, and bobolink. It also is located within a “pinch point” of climate resiliency and wildlife movement that connects the Adirondacks with the Catskills. The landowner is committed to using the property for environmental education and as a catalyst for additional future forest protection in an area under increasing development pressure.  

Funding for this grant program was provided by the State's Environmental Protection Fund (EPF). In the 2023-24 State Budget, Governor Kathy Hochul maintained EPF funding at $400 million, the highest level of funding in the program's history. The EPF also provides funding for critical environmental programs such as farmland protection, invasive species prevention and eradication, enhanced recreational access, water quality improvement, and an aggressive environmental justice agenda.

Founded in 1982, the Land Trust Alliance is a national land conservation organization that works to save the places people need and love by strengthening land conservation across America. The Alliance represents more than 950-member land trusts and their 6.4 million supporters nationwide. The Alliance is based in Washington, D.C., and operates several regional offices. More information about the Alliance is available at the Land Trust Alliance website.

NYS Office of the Comptroller DiNapoli: Wall St. First Half Profits Total $13 Billion, Down from 2022

 

Tax Revenues Strong But Far From Pandemic Boom Concern Persists About Possible Job Cuts and High Interest Rate

Wall Street’s 2023 first half profits of $13 billion were down 4.3% from the same period last year but tracked the industry’s return to pre-pandemic levels of revenue after record profits in 2020 and 2021, according to State Comptroller Thomas P. DiNapoli’s annual report on the performance of New York City’s securities industry.

“The securities industry’s two years of record profits helped stabilize New York’s economy in difficult times,” DiNapoli said. “Since then the industry has maintained profits consistent with pre-pandemic levels. But these are volatile times in America and globally, and Wall Street’s relatively stable profits and employment levels could change quickly. Further declines could weaken New York’s tax revenue from the securities industry and have repercussions for our state and city budgets.”

Securities industry performance is traditionally measured by the pretax profits of the broker/dealer operations of New York Stock Exchange (NYSE) member firms. There are now 132 member firms, down from more than 200 in 2007, before the global financial crisis.

Profits

In 2022, the city’s securities industry profits of $25.8 billion were a 55.8% drop from the previous year, but they were on par with pre-pandemic performance when annual profits averaged $22.3 billion from 2015 to 2019. That trend continued through the first half of 2023. If the rate of decline in profits in the first half of 2023 holds steady for the rest of the year, annual profits could fall to $24.7 billion, from $25.8 billion in 2022. However, economic uncertainties could cause profits to decline even more in the second half.

As the Federal Reserve has tightened monetary policy to fight inflation, the industry has seen a 46% decline in revenue from commissions and underwriting activities over the past two years, due to the higher cost of credit and a significant fall off in debt and equity issuances and mergers and acquisitions. Financial firms’ interest expenses were seven times higher in 2022 than in 2021.

Market expectations are generally that interest rates will remain elevated for some time, which could further increase borrowing costs and reduce market activity. However, conditions could change rapidly given the uncertainties of the current geopolitical situation, the political turmoil in Washington and changes in inflation and employment.

Employment, Bonuses and Salaries

The 195,100 jobs in the city’s securities industry, averaged through August 2023, are the most in the city in over 20 years and reflect the hiring that took place as profits soared in 2021. The industry fared better than most during the pandemic, losing just 1.6% or 2,900 jobs in 2020, compared to 12.2% overall in the private sector. It remains to be seen if the industry will keep these positions as profits ebb.

Despite losing some of its industry jobs to other states, New York remains far and away the nation’s largest employer in the securities industry. New York state was home to 207,500 securities industry jobs in 2022. By comparison, California had the second highest number of industry jobs at 97,100.

After two years of record highs, bonuses have declined alongside profits. In March, DiNapoli’s office estimated the bonus pool for 2022 was $33.7 billion, 21% smaller than the previous year. It estimated the average bonus for 2022 was 26% smaller at $176,700 and in line with pre-pandemic levels. Bonuses account for an estimated 38% of securities industry wages, more than any other industry in the city.

The average pay for securities industry workers in New York City, including bonuses, was $497,420 in 2022, which was the second highest on record after 2021’s peak of $516,520 ($548,040 when adjusting for inflation). Employees in tech and information services industries have the second highest average salary in the city at $272,410. The average salary in the securities industry in New York State was $473,750, more than twice the average in the rest of the nation ($225,620).

In the first half of 2023, NYSE member firms have increased their compensation expenses by 2.1% over the previous year, which is less than the rate of inflation. It is likely that the overall bonus pool for the year will be smaller than in 2022 as profits decline. Despite an expected decline in the overall average bonus for 2023, the changes will likely vary widely among the various finance subsectors.

DiNapoli is expected to release his annual estimates of the average bonus and bonus pool for New York City securities industry employees in March 2024.

CEO compensation has soared meanwhile, despite declines in profits and average salaries this year and last year, but the jump is likely fueled by incentive packages from high profits during the pandemic. CEOs at New York financial firms took home 328 times the median of all company employees in 2022. In 2021, CEO compensation was 261 times more than the median of all employees at their firms.

Tax Contributions

DiNapoli’s office estimates Wall Street was responsible for $5.4 billion in city tax collections during its Fiscal Year (CFY) 2023, down 16% from its record high of $6.4 billion in 2022. The majority of the $5.4 billion (74%) came in personal income tax collections, which accounted for 23% of the city’s total personal income tax collections. However, the industry’s overall share of city tax revenue declined from 9.3% in CFY 2022 to 7.5% in CFY 2023, although it was still higher than its pre-pandemic levels. DiNapoli’s report estimates that tax revenue from Wall St. could decline further in CFY 2024 to levels seen in the five years prior to CFY 2021, when it averaged $2.7 billion a year and 6.7% of total tax collections.

In addition to personal income tax collections, the securities industry contributes to city property-related tax revenues as the largest segment of financial services office space tenants in the city. The financial services sector is estimated to occupy approximately 30% of all office space in the city and tends toward the higher-value Class A properties. The office sector accounts for over one-fifth of overall property tax revenues, which are forecast to be $32.6 billion in FY 2024. If the move to hybrid work or cost cutting maneuvers causes financial firms to reduce their office footprints, it could impact city tax revenues significantly.

New York state relies more heavily than the city on tax collections from Wall St. because of its greater dependence on personal income taxes. The industry accounted for $28.8 billion (27.4%) of all tax collections in State Fiscal Year (SFY) 2023, which ended March 31, 2023. About 89% of this came through personal income taxes.   

Economic Contributions

In 2021, the most recent year for which county-level data is available, the securities industry was responsible for 16.4% of New York City’s and 7.3% of the state’s total gross product. The industry has contributed less over time;  it was responsible for 18% of all economic activity in 2012. Data for 2022 will likely show a decline in its economic contribution to pre-pandemic levels (14.5% in NYC in 2019), reflecting the drop in firms’ profitability.

Report

The Securities Industry in New York City

Other References

Securities Sector Dashboard

Permits Filed For 521 East Tremont Avenue In Crotona, The Bronx

 

Permits have been filed for a 14-story mixed-use building at 521 East Tremont Avenue in Crotona, The Bronx. Located at the intersection of 3rd Avenue and East Tremont Avenue, the corner lot is near the Tremont station, serviced by the MetroNorth train on the Harlem line. Emanuel Kokinakis of MEGA Development under the 521 Tremont Owner LLC is listed as the owner behind the applications.

The proposed 144-foot-tall development will yield 184,512 square feet, with 162,845 square feet designated for residential space, 12,533 square feet for commercial space, and 9,133 square feet for community facility space. The building will have 213 residences, most likely rentals based on the average unit scope of 764 square feet. The structure will also have a cellar, a 46-foot-long rear yard, and 17 open parking spaces.

SLCE Architects is listed as the architect of record.

Demolition permits have not been filed yet. An estimated completion date has not been announced.

Ten Individuals Charged for $950,000 COVID-19 Relief Fraud Schemes

 

A federal grand jury in the Western District of Tennessee returned an indictment yesterday charging 10 individuals for their roles in schemes to defraud the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. 

According to court documents, the defendants allegedly obtained funds under the EIDL program and PPP by submitting false and fraudulent loan applications that collectively sought over $950,000. The defendants are alleged to have submitted applications on behalf of businesses and entities they purportedly owned, knowing that the applications contained materially false statements and misrepresentations concerning, among other things, the purported entities’ number of employees, gross revenues, costs of goods sold, average monthly payroll, and the date on which the entities were established. The defendants then allegedly used the loan funds for purposes not authorized by the EIDL program or PPP, including for personal expenses.

Below are the 10 defendants and their charges:

• Rodrick Flowers, 47, of Memphis, Tennessee, is charged with 12 counts of wire fraud. Flowers was the owner of Ezential Consulting & Management Firm LLC and Rodrick Flowers. He allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of Ezential Consulting & Management Firm LLC, for which he obtained approximately $37,000 in EIDL proceeds and approximately $74,450 in PPP loan proceeds. Flowers also submitted or caused to be submitted eight fraudulent EIDL applications and two fraudulent PPP applications on behalf of entities owned by each of his co-defendants.
• Stephen Brown, 44, of Memphis, is charged with two counts of wire fraud. Brown was the owner and pastor of Light of Glory International Church and Stephen Brown Ministries. He allegedly submitted a fraudulent EIDL application on behalf of Light of Glory International Church and a fraudulent PPP application on behalf of Stephen Brown Ministries, for which he obtained approximately $149,900 in EIDL proceeds.
• LaTonya Herman, 44, of Memphis, is charged with two counts of wire fraud. Herman was the owner of LaTonya Herman. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $93,800 in EIDL proceeds.
• Jarvys Jones, 38, of West Memphis, Arkansas, is charged with two counts of wire fraud. Jones was the owner and pastor of The Temple of Refuge, also referred to as Temple of Refuge Inc, and Refuge. He allegedly submitted a fraudulent EIDL application on behalf of Refuge and a fraudulent PPP application on behalf of Temple of Refuge Inc, for which he obtained approximately $20,000 in EIDL proceeds.
• Brian Mays, 40, of Olive Branch, Mississippi, is charged with one count of wire fraud. Mays was the owner of A-Mays-in-Trucking. He allegedly submitted a fraudulent EIDL application on behalf of his business, for which he obtained approximately $107,400 in EIDL proceeds.
• Diane Moss, 60, of Blytheville, Arkansas, is charged with two counts of wire fraud. Moss was the owner of The Station, Diane’s Boutique, and Diane Moss. She allegedly submitted a fraudulent EIDL application on behalf of The Station and a fraudulent PPP application on behalf of Diane Moss, for which she obtained approximately $99,300 in EIDL proceeds and approximately $28,420 in PPP loan proceeds.
• Mary Payne, 61, of Memphis, is charged with two counts of wire fraud. Payne was the owner of Right Now Staffing LLC. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $4,000 in an EIDL advance.
• Krystal Sherrod, 34, of Memphis, is charged with one count of wire fraud. Sherrod was the owner of Krystal Sherrod. She allegedly submitted a fraudulent EIDL application on behalf of her business for which she obtained approximately $83,300 in EIDL proceeds.
• Frederick Smith, 54, of Cordova, Tennessee, is charged with two counts of wire fraud. Smith was the owner and pastor of New Life Holiness Church. He also owned Fred Smith Ministries and Frederick Smith, and was the owner and trustee in bankruptcy for New Life Holiness BK. Smith allegedly submitted a fraudulent EIDL application on behalf of Fred Smith Ministries and a fraudulent PPP application on behalf of New Life Holiness BK, for which he obtained approximately $150,275 in PPP loan proceeds.
• Cleveland Wells, 65, of Memphis, is charged with two counts of wire fraud. Wells was the owner and pastor of Glory to God Ministries. He also owned Don’t Worry About it Home Solutions, aka Cleveland Wells Jr. dba Don’t Worry About it Home Solutions. Wells allegedly submitted a fraudulent EIDL application on behalf of Glory to God Ministries and a fraudulent PPP application on behalf of Cleveland Wells Jr. dba Don’t Worry About it Home Solutions, for which he obtained approximately $149,900 in EIDL proceeds.

If convicted, they each face a maximum penalty of 20 years in prison on each wire fraud count.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Mark H. Morini Jr. of the Treasury Inspector General for Tax Administration (TIGTA), Special Agent in Charge Edwin Bonano of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), and Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.

TIGTA, FHFA-OIG, and FDIC-OIG are investigating the case.

Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Carroll Andre for the Western District of Tennessee are prosecuting the case.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.

Anyone with information about attempted fraud concerning COVID-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.