Comptroller Stringer Analysis: Cost of Hotel Room Shelters Soars by 33 Percent over Four Months

Commercial hotel room bookings for homeless New Yorkers has risen from $400,000 per day to $530,000 per day

More than 160 bookings were made for $400 per night or more, including 10 bookings for $549 per night

The average daily cost for commercial hotel bookings jumped 601% to $576,203 from November 2015 to February 2017

Comptroller Stringer calls for greater transparency from the Department of Homeless Services

   Commercial hotel bookings for homeless New Yorkers have surged by 38 percent over a four-month period, with the City spending $530,000 per day as of February 28, 2017, according to a new analysis released today by New York City Comptroller Scott M. Stringer. The Comptroller’s analysis estimates that the number of individuals now being placed in commercial hotels by the Department of Homeless Services (DHS) has jumped by 33 percent to nearly 7,800 New Yorkers between October 2016 and February 2017.

Commercial hotel shelters often offer limited services, have limited privacy and lack kitchens. As such, they are largely inappropriate long-term solutions for families trying to get back on their feet. The City recently announced a goal to phase out commercial hotel rooms as a form of homeless shelter six years from now.

To ensure the City reaches that goal, openness and benchmarks are critical. Today, the Comptroller called for greater transparency from DHS and a more public approach to solving the challenge. Currently, the Department maintains a Data Dashboard – which has not been updated in over a year – and the Comptroller called on DHS to also share more information publicly on progress around reducing commercial hotel and cluster shelter use. The more transparent the process, the more likely it will be to succeed.

“Homeless New Yorkers don’t belong in hotels – this is a practice that has to end. Hotel Rooms are not only a Band-aid solution to a complex problem, but they’re also very expensive. If families are going to get back on their feet, we need to help get them the services they need,” Comptroller Scott M. Stringer said. “The rising costs are extraordinary, and we are calling for more transparency from the City because the more open we are about our challenges, the more likely we are to solve them. Openness will help deliver results.”

The new analysis shows:

• The cost of commercial hotel bookings for homeless New Yorkers surged from $399,604 on October 31, 2016 to $529,622 on February 28, 2017 – a 33 percent increase.

• The average daily cost for commercial hotel bookings has increased by 601%, rising from $82,214 in November 2015 to $576,203 in February 2017.

• The estimated number of homeless New Yorkers booked in commercial hotels per day soared from 5,881 to 7,790 – a 33 percent jump between October 31, 2016 and February 28, 2017.

• The total number of rooms booked per day from October 31, 2016 to February 28, 2017 rose by nearly 38 percent to 2,852, as the City has increased its reliance on commercial hotels to stem the overall crisis.

• The highest room rate was $549/night at a hotel near Times Square. DHS booked a block of 10 rooms at this rate for a stay on December 30, 2016.

• Daily booking totals exceeded $600,000 twice in December 2016, peaking at an all-time high of more than $648,000 on December 30, 2016.

• Between November 1, 2016 and February 28, 2017, there were a total of 162 room bookings for $400/night or higher in five different Manhattan hotels.

  

Comptroller Stringer has laid out a series of measures that could help mitigate the City’s homeless crisis, including the creation of a New York City land bank that could help to transform some 1,100 City-owned vacant lots identified in a previous audit into more than 50,000 permanently affordable units. The Comptroller has also called for setting aside more NYCHA apartments for families with children who are currently housed in commercial hotels to confront the escalating crisis.

The new data released today updates figures on commercial hotel spending released in a report in November 2016 that covered the period between November 1, 2015 and October 31, 2016.

A recent investigation by Comptroller Stringer’s Office found that the number of homeless children three-years-old and younger placed in commercial hotels skyrocketed 224 percent during the summer of 2016 – despite the fact that they have no on-site child care services at all.

BRONX DISTRICT ATTORNEY DARCEL D. CLARK ANNOUNCES SHE WILL MOVE TO VACATE MURDER CONVICTION OF STEVEN ODIASE AND CONSENT TO HIS RELEASE AFTER SIX YEARS BEHIND BARS

  Bronx District Attorney Darcel D. Clark today announced that she will move today to vacate the conviction of a Bronx man in the 2009 murder of a teenage boy, after a review of the case by the District Attorney’s Conviction Integrity Unit determined that the defendant did not receive a fair trial.  

  District Attorney Clark said, “Steven Odiase is serving 25 years-to-life for murder, but the Conviction Integrity Unit has uncovered potentially exculpatory evidence that was not provided to the defense at the time of trial. Because Odiase did not receive a fair trial, I will ask the Court on Monday, April 17, 2017, to vacate Odiase’s conviction in the interest of justice so he can be freed as soon as possible while we determine whether to retry him.

  “The unearthing of the exculpatory evidence highlights the value of a Conviction Integrity Unit (CIU). The unit did an exhaustive re-investigation of this case, which involved the senseless killing of a 15-year-old boy.” 

   The hearing on vacating the conviction will take place at 2 p.m. today before Bronx Supreme Court Justice Steven Barrett in Room 300 in the Bronx Hall of Justice.

  Odiase, 31, was sentenced to 25 years to life in prison after a trial in Bronx Supreme Court in 2013. He was convicted by a jury of second-degree Murder and second-degree Criminal Possession of a Weapon in the fatal shooting of 15-year-old Juan Jerez, who was shot at the corner of Minerva Place and Creston Avenue on June 12, 2009. 

   His co-defendant, Daikwan Giles, confessed to the shooting, and was identified by eyewitnesses. He was convicted in the same trial.

  Odiase’s lawyers filed a post-conviction motion to set aside the verdict in July 2015, and then in 2016, his attorneys Pierre Sussman, Jonathan Edelstein and Robert Grossman asked the CIU to review the case and agreed to stay the motion. 

   Assistant District Attorney Risa Gerson, a veteran appellate defender who joined the CIU in September, 2016, was given the case and reviewed hundreds of documents and interviewed key witnesses. Gerson discovered in the case file a DD5 (a detective’s form summarizing the canvass of the murder scene) that apparently was not provided to the defense. 

   Gerson turned it over to the defense in February, 2017. In March, 2017, Sussman told Gerson that Odiase’s defense team had been given the DD5, but information had been redacted from their version. The missing information was a witness’ description of the shooter that did not match Odiase.

Acting Manhattan U.S. Attorney Settles Civil Lawsuit Against HSBC Bank USA, N.A., Regarding Failure To Disclose Fraud Or Potential Fraud In Guaranteed Loans

Defendant HSBC Bank USA, N.A., Admits Submitting Dozens of Loans for Payment on SBA Guarantees Without Disclosing that Loans Had Been Identified as Fraudulent or Potentially Fraudulent

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Eric S. Benderson, the Acting General Counsel of the U.S. Small Business Administration (“SBA”), announced today that the United States has settled a civil fraud lawsuit against HSBC BANK USA, N.A. (“HSBC”). The Government’s complaint, filed on April 10, 2017 (the “Complaint”), sought damages and civil penalties under the False Claims Act for misconduct in connection with HSBC’s participation in the SBAExpress loan program, which was designed to help start-ups and existing small businesses. The Complaint alleged that, as part of an internal review designed to identify reasons for defaults on loans to small and medium-size enterprises, HSBC identified dozens of SBAExpress loans as fraudulent or potentially fraudulent, since borrowers appeared to have submitted false information to HSBC to obtain the loans. The Complaint further alleged that after 42 of these loans defaulted, HSBC sought reimbursement from the SBA without revealing the facts suggesting that borrowers submitted false information to HSBC to obtain many of the loans, or the fact that HSBC had included the loans on an internal list of fraudulent or potentially fraudulent loans. In the settlement approved today by U.S. District Judge Lorna G. Schofield, HSBC agreed to pay $2,118,861.36 to resolve the Government’s claims, and admitted, acknowledged, and accepted responsibility for conduct alleged in the Complaint.

Manhattan Acting U.S. Attorney Joon H. Kim said: “Lenders must disclose material information for our agency partners like the SBA, who administer federal loan programs. When they fail to do so – as HSBC did here, by submitting loans for repayment on SBA guarantees without disclosing that the loans had been identified as potentially fraudulent – they need to be held to account. This settlement reflects the Office’s continuing commitment to keep lenders who participate in federal lending programs honest.”

SBA Acting General Counsel Eric S. Benderson said: “This case is yet another example of the tremendous results achieved through the joint efforts of the SBA and the Department of Justice to uncover and forcefully respond to civil fraud committed by those who participate in SBA’s lending programs. Identifying and aggressively pursuing instances of civil fraud by participants in the Agency’s lending programs is one of SBA’s top priorities.”

The Government’s lawsuit alleged as follows:

In or around 2006, HSBC conducted an internal review to identify reasons for the default rates on loans it had made to small and medium-size enterprises, including but not limited to loans issued pursuant to SBAExpress. HSBC created a list of known fraud accounts as part of the review. HSBC identified many SBAExpress loans as fraudulent or potentially fraudulent in which borrowers may have submitted false information to HSBC in obtaining their loans, including 42 loans (the “Loans”) referenced in an exhibit attached to the Complaint.

After the Loans defaulted, HSBC sought reimbursement from SBA for the guaranteed amount on each of these Loans (up to 50 percent of the principal of the Loans) without telling SBA that many of the Loans were fraudulent or potentially fraudulent. Specifically, HSBC did not inform SBA of all of the facts indicating that borrowers may have submitted false information to HSBC in connection with the origination of many of the Loans, or that HSBC had included these Loans on an internal list of fraudulent or potentially fraudulent loans. HSBC’s failure to disclose that it had determined that many of the Loans were fraudulent or potentially fraudulent rendered HSBC’s reimbursement requests for losses incurred in connection with the Loans false, misleading, and/or fraudulent. The submissions made to SBA in connection with seeking reimbursement on many of these Loans contained half-truths and material omissions by failing to disclose facts about fraud or potential fraud by borrowers when the Loans were originated.

The case was initially brought by a whistleblower under the False Claims Act, and the Government intervened in the case.

Pursuant to the settlement, HSBC will pay the United States $2,118,861.36. As part of the settlement, the bank admitted, acknowledged, and accepted responsibility for the following conduct:

• In or around 2006, HSBC voluntarily commenced an internal effort to gain an understanding of the reasons for the default rates on loans that it had made to small and medium-size enterprises, including but not limited to loans issued pursuant to the SBAExpress program. HSBC’s efforts included an attempt to identify whether any of the loans involved fraud or potential fraud by borrowers;
  
  
• As part of this effort, HSBC identified a number of loans as fraudulent or potentially fraudulent in which borrowers may have submitted false information to HSBC in obtaining their loans, including the Loans;
  
  
• HSBC subsequently sought from SBA the guaranteed amounts on each of these Loans (i.e., up to fifty percent of the principal of the Loans) after the loans defaulted;
  
  
• In submitting the requests for payment to SBA of the guaranteed amounts of certain Loans, HSBC did not inform SBA of all of the facts indicating that borrowers may have submitted false information to HSBC in connection with the origination of these loans, or that as a result HSBC had identified these loans as fraudulent or potentially fraudulent. 

Mr. Kim thanked SBA for its investigative efforts and assistance with the case.

Software Engineer Arrested For Attempted Theft Of Proprietary Trading Code From His Employer

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DMITRY SAZONOV was charged with attempted theft of trade secrets for his alleged attempted theft of proprietary computer code for a trading platform from his employer, a financial services firm with an office in New York, New York, that trades securities and other financial products (“Firm-1”). SAZONOV was arrested yesterday afternoon and presented today before U.S. Magistrate Judge Andrew J. Peck in federal court.

Acting U.S. Attorney Joon H. Kim said:  “As alleged, Dmitry Sazonov attempted to steal valuable proprietary computer code that took his employer years to develop.  Sazonov allegedly took elaborate steps to conceal his attempted theft, including camouflaging pieces of source code within harmless-looking draft emails on his work computer.  Thanks to the FBI, Sazonov has been stopped and is now in custody.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “As we allege, Sazonov went to great lengths to conceal source code for a trading platform in order to steal it from his former employer.  He researched and ultimately used the technique of steganography to hide the code within other PDF files like personal tax and immigration documents on his work computer. He also uploaded encrypted zip files to a third-party website to complete his heist.  Stealing from an employer is a serious offense especially when it comes to proprietary source code that companies have invested heavily in, and that they rely on to generate revenue.  The FBI is committed to enforcing laws that protect U.S. companies from the theft of trade secrets.”

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

Firm-1 acts as a market maker, facilitating trading and liquidity in a variety of financial markets.  A substantial portion of the trading done by Firm-1’s employees is facilitated by a proprietary computer trading platform (the “Trading Platform”), which deploys a computer program to take in many different pieces of market data, to use that data to develop trading strategies, and then to generate orders and automatically submit those orders to an exchange or market center.  Firm-1’s use of the Trading Platform accounts for a substantial volume of Firm‑1’s total trading activity.  For example, Firm-1 executes approximately $300 million in options trades through the Trading Platform every day.  The strategies and efficiency resulting from Firm-1’s use of the Trading Platform contribute substantially to Firm-1’s market share in the financial markets in which Firm-1 trades and to its overall trading profits. 

For at least approximately five years, Firm 1 has been in the process of developing an updated and improved version of the Trading Platform (the “Updated Trading Platform”).  Firm‑1 has, to date, invested more than approximately $5 million in the development of the Updated Trading Platform.  The Updated Trading Platform is expected by representatives of Firm-1 to continue to enhance the position of Firm-1 in the markets in which it participates and to contribute substantially to Firm-1’s market share and profits.  Accordingly, Firm-1 has put in place measures designed to protect the computer source code (the “Source Code”) underlying the Updated Trading Platform.

From July 2004 through February 6, 2017, SAZONOV was employed as a software engineer by Firm-1.  In that role, SAZONOV was involved in the development of trading strategies to be implemented in conjunction with the deployment of the Updated Trading Platform; as a result, SAZONOV had access to the Source Code.  On February 2, 2017, SAZONOV learned that his immediate supervisor at Firm-1 had resigned and began looking for a new job outside of Firm-1.  On Friday, February 3, 2017, SAZONOV learned that he would be meeting with another supervisor about the future of his role at Firm-1 the following Monday.   

Before that meeting took place, SAZONOV took various steps to attempt to steal the Source Code.  On the morning of February 6, 2017, SAZONOV downloaded the Source Code to his Firm-1 computer.  He ran Internet searches and viewed websites related to steganography, the practice of concealing messages or data within other files, among other things.  SAZONOV then deployed a computer program that appears to have used steganography, in order to break up a PDF file believed to contain the Source Code, and append pieces of the PDF file to various apparently innocuous documents and files contained in a folder on SAZONOV's desktop computer, including personal tax and immigration documents and images taken from the Internet, among others (the “Payload Documents”).  The program also appears to have produced a manifest, permitting the reassembly of the Source Code from the various Payload Documents.  SAZONOV used his Firm-1 computer to upload an encrypted zip file containing the manifest to a third-party website.  He also saved two draft emails to his Firm-1 email account, attaching the encrypted zip file containing the manifest to one email and a zip file containing the Payload Documents to the other email; the draft emails were addressed to an email address associated with SAZONOV.  SAZONOV did not send the emails before reporting to the meeting with the supervisor.  In the course of that meeting, SAZONOV was fired by Firm-1.  After being fired, SAZONOV repeatedly asked to be permitted to return to his desk to retrieve files from his computer.  Pursuant to Firm‑1 policy, however, SAZONOV was not permitted to return to his desk prior to being escorted out of Firm-1’s New York, New York, office.    

On multiple occasions following his termination by Firm-1, SAZONOV contacted individuals employed by Firm-1 by telephone and by email seeking the return of computer files on his Firm-1 desktop computer, which he claimed were personal documents.  Indeed, SAZONOV repeatedly requested that Firm-1 return to him the documents contained in the file in which the Payload Documents were saved.  On April 12, 2017, SAZONOV reported to the lobby of the building in which the New York, New York, office of Firm-1 is located and retrieved a disk he believed contained those files.  He was subsequently arrested.

SAZONOV, 44, of Rockland County, New York, is charged with one count of attempted theft of trade secrets, which carries a maximum sentence of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Kim praised the outstanding investigative work of the FBI. 

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

New Community Board 8 District Manager to be Michael Heller

  It seems that Assemblyman Jeffrey Dinowitz has been able to get his choice for District Manager of Community Board 8 voted in at the monthly Community Board 8 meeting. But wait the normal second Tuesday full Community Board meeting is being held on Wednesday April 19th, so how would I know that Michael Heller was (or is going to be) voted in as the new District Manager?

  As you have seen on this blog I had left up a writing sample of the Traffic and Transportation Chair's minutes, which he submitted to be approved. If you went over the September 2016 minutes you found several mistakes. How could a non board member who was not even present at the September T & T meeting vote not once, but twice during the meeting as if they were a full board member. How could a board member who was no longer on the T & T committee (and listed as such) vote as a committee member. How could the vote be 9 - 0 - 0 when there were only eight voting members of the committee. When you subtract myself and the one board member who was not able to vote that leaves only seven committee members who voted (if they did) leaving out a long time female committee member who was in attendance. Could it be that the T & T chair Mr. Heller thought that the missing female committee member was me, or was Mr. Heller hallucinating when he wrote the minutes of the meeting. 

  What makes this worse is the fact that at the October 2016 T & T committee meeting the September 2016 Minutes were approved unanimously without any changes, but no names of who voted are mentioned. To make matters even more strange the T & T committee in its November meeting voted to approve the minutes of the October meeting without any changes once again unanimously without any changes, and no names of who voted again. To make sure these minutes were not changed at the last minute I received a certified copy of the September, October, and November Traffic and Transportation Committee minutes from the Chair of CB 8 who certified them.

  It seems that this type of problem happened once before on Community Board 8 by the Economic Development committee chair who had a problem submitting minutes, and there were calls for his removal. I guess if you have Assemblyman Jeffrey Dinowitz in your corner and when you screw up royally like the T & T chair Michael Heller has done you get voted in as the new District Manager.

  

Assemblyman Jeffrey Dinowitz Supports Michael Heller for new CB 8 District Manager

At the October 2016 meeting of Traffic and Transportation committee Mr. Michael Heller chairs the following is in the minutes of the meeting as taken from the CB 8 website.

The meeting opened at 7:40 PM. The September 2016 minutes were reviewed. The Committee approved unanimously. 

Below are the minutes (all three pages as noted) of the September 20, 2016 Bronx Community Board 8 Traffic and Transportation meeting as taken off the boards website on Saturday April 13th at 7:00 PM that were submitted by Mr. Michael Heller the committee chair. 

Please read my comment at the bottom.

PENDING COMMITTEE APPROVAL

BRONX COMMUNITY BOARD NO. 8, Traffic and Transportation Committee Minutes of September 20, 2016 

Meeting Committee Attendance: 

M. Heller 

D. Fuchs 

A. Creaney 

E. Bell 

N. Friedman 

S. Alexander 

G. Santiago 

Myra Joyce Community Committee member 

Committee Absences: 

M. Donato 

S. Sarao 

J. O’Brien 

Board Attendance: 

Paul Ellis 

Amy Joy Robateau 

David Gellman 

Bob Bender 

Herb Young 

Guests: 

Maria Nochimson – local resident 

Richard Nochimson – local resident 

Michael McCormick – Horace Mann School 

Peter Clancy – Horace Mann School 

Walter Hickey – MTAB&T 

Joyce Mulvaney – MTAB&T 

Cassandra Edgehill – MTAB&T 

Richard Campisi – MTAB&T 

Bruce Furman – local resident 

Joshua Stephenson - Office of Councilman Cohen 

Hugh Keenan – St. Margaret of Cortona School 

The meeting was conducted at the Fieldston Lodge Care Center, 666 Kappock Street, and was called to order at 7:40 PM by Chairman M. Heller, with a quorum present. The minutes of the March meeting were approved 9 – 0 – 0 by members M. Heller, R. Press, A. Creaney, D. Fuchs, E. Bell, N. Friedman, H. Young, G. Santiago, M. Joyce. 

Mr. Heller welcomed everyone and gave an overview of the next several months, including meeting on west 254 street, north Riverdale transportation plan and TA bus issues.

Minutes of the Traffic & Transportation Meeting, September 20, 2016 Page 2 

He Announced presentation by Joyce Mulvaney, director of community affairs of MTA B&T who introduced her staff to talk about the Henry Hudson Parkway (HHP) toll booth and other projects. 

She described the previous conversion to open road tolling, HHP cashless pilot since 2012 and we were the first. The goal is convert all MTA bridges and remove HHP tool booths starting at the end of 2016. A gantry system will read all ez passes and license plates. The Upper level will start at the end of 2016, lower level will take longer. 

Skew backs, which secure the bridge arch are to be rehabilitated starting early next year. Concrete pedestals will also be replaced over a 33 month period with all work at ground level and no impact on traffic. There will be an incentive for contractor to reduce duration to take off three months. Work is to be done only 8-4 pm weekdays on Bronx side. 

Replacement of bridge plazas, upper and lower: 45 months total contract period for both decks. The lower level is a much larger job requiring 31 months and reduction to 2 lanes. The upper deck will require five months. There will be incentives to shorten work on the lower level by 9 months and the top by 2 months bottom to three lanes. 

The bike path will be closed during lower level work. A bus shuttle service will run from Kappock to Dyckman during daylight continuously from March 1 through November, not during winter months due to low usage. 10.6 in lanes. 

Representatives confirmed the MTA jurisdiction is from Kappock to Dyckman Street. 

There was discussion as to the feasibility of turning over a lane to the Hudson River Greenway or somehow expanding the existing walkway. TBTA staff has rejected giving up a lane. Traffic too heavy, 1800 vehicles per hour requires three lanes to relieve congestion and requires a small shoulder. 

Bob Bender and David Gellman say the only issue is where the two lanes of the southbound HHP turn to three lanes, on bridge or south of it. MTA looked at a possible cantilever for an additional lane, but of course it would be a huge cost though the bridge is ready. Low bike usage does not justify such an expense. 

Gellman suggested move the Jersey barrier slightly over, to which they said no. He also objected to length of pedestrian path closing, saying nothing is being given back to the community. MTA staff also said they cannot create a path to Dyckman Street. 

Mr. Heller said the community board is not altogether happy with a lack of flexibility on bike path issues, and may engage in further correspondence with the MTA. 

The meeting turned toward discussion of requests to install Play Street in various locations. 

1- St. Margaret of Cortona: The principal discussed the merits of the application, safety provided, etc. Approved 9 – 0 – 0 by members M. Heller, R. Press, A. Creaney, D. Fuchs, E. Bell, N. Friedman, H. Young, G. Santiago, M. Joyce. 

2- PS 307, Eames Place: Mr. Heller mentioned the difficulty of the plan as it blocks access to Claflin Avenue, one way northbound from the T intersection with Eames. DI O’Toole agreed that street configuration is difficult. A teacher Rochelle Matera (?) from the school spoke and reiterated the situation, with a bit of disagreement as to how it could happen. There could be a plan to reverse part of Eames but that would have to be an application to DOT. It was mentioned that reduction of their application from full day to one hour in the morning and evening might be more acceptable or mid-day even better. Sylvia 

Minutes of the Traffic & Transportation Meeting, September 20, 2016 Page 3 

Alexander reiterated the need for the closing due to the poor condition of school facilities. After discussion, it was recommended that a meeting take place with the school staff to see if compromise is possible. 

3- Horace Mann: Mr. Heller spoke about how the application is not in compliance with the intent of the application. Mike McCormick, Director of Security told about current configuration of staging on parts of Tibbett Avenue by using the whole street. School security regulates street traffic. The question is, is it necessary to formalize the process, which DOT will not accept. It was asked whether the PD had another process they could implement, or if the traffic flow could be reversed. The current process is in compliance with what FPOA wants. Residents of Tibbett Avenue spoke and said Horace Mann staff has been very cooperative. CB member Paul Ellis spoke and advocated for a solution, even approving the application though it does not fit with the intent. After much discussion, a two tiered approach was selected to continue to flag cars through and explore if the PD or DOT has another methodology. 

It was recommended that the committee take another look at north Riverdale proposal on their website. 

At the next meeting of the committee, scheduled for October 19, there will be discussion of the West 254 street sidewalk issue. 

The meeting was adjourned at 9:30 PM. 

Minutes submitted by Michael Heller. 

Editor's Note:

As the former Vice-Chair of the Traffic and Transportation Committee from June 2014 until May 31, 2016 when I was not reappointed by Bronx Borough President Ruben Diaz Jr. to CB 8, I took the minutes of the meetings, and sent them to the chair Mr. Heller for any revisions or changes. 

I was not present at the September 2016 meeting as I am not listed in the attendance log. However note that I voted twice on two different issues (which are highlighted in bold) as a Community Board 8 member. 

As full disclosure I applied for the vacant position of District Manager of Bronx Community Board 8, and I was the only person to openly admit that I had applied. The Riverdale Press had a front page article for the past two weeks about the secrecy of the process, and revealed that Mr. Michael Heller also applied for the position of District Manger which became known when he and another applicant from the board were asked to leave an Executive Session to discuss the screening committee results since it would be a conflict of interest if they were to be in the room during the discussion.

Rockland County Man Indicted In White Plains Federal Court For Narcotics Trafficking

   Joon H. Kim, Acting United States Attorney for the Southern District of New York, and James J. Hunt, Special Agent in Charge, New York Field Division of the Drug Enforcement Administration (“DEA”), today announced that an indictment was returned by a grand jury charging MATTHEW DRAPER, a/k/a “Mata,” a resident of Haverstraw, New York, with allegedly trafficking wholesale amounts of cocaine in and around Rockland County, New York. DRAPER was arrested on a criminal complaint on October 6, 2016, and has been in custody since that date.

According to the allegations contained in the Indictment and the Complaint[1] charging DRAPER:

DRAPER was part of a cocaine distribution conspiracy responsible for transporting wholesale amounts of cocaine from the Dominican Republic to the New York area on commercial airline flights. The conspiracy relied on contacts working in airports both in the Dominican Republic and in the United States to facilitate the deliveries. From in or around September 2016 through October 5, 2016, DRAPER worked with a confidential informant and a supplier in the Dominican Republic to facilitate the transport of approximately 20 kilograms of cocaine from the Dominican Republic to New York. DRAPER intended to have the confidential informant retrieve the cocaine from the airport and provide it to DRAPER at a predetermined location. On October 5, 2016, DEA agents learned from the confidential informant that the 20 kilograms of cocaine DRAPER purchased from the Dominican Republic had been secreted in luggage, and placed on an airplane scheduled to arrive at JFK Airport. DEA agents were able to locate the airplane and the luggage in question. DEA agents recovered approximately 20 kilograms of cocaine that had been wrapped and sealed in a clear vacuum-sealed bag. DRAPER was arrested that same day attempting to obtain the cocaine from the confidential informant at the predetermined location. Upon his arrest, law enforcement recovered approximately $23,000 in cash and what appeared to be an additional kilogram of cocaine from DRAPER’s vehicle. Law enforcement agents also executed a search warrant on DRAPER’s residence. During the search, agents recovered an additional half-kilogram of a substance that appeared to be cocaine.

DRAPER, 49, of Haverstraw, New York, is charged with one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison, and one count of possession of narcotics with intent to distribute, which also carries a maximum sentence of life in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.

Mr. Kim praised the outstanding investigative work of the Drug Enforcement Administration. Mr. Kim also thanked the Rockland County Drug Task Force and the Town of Haverstraw Police Department Street Crime Unit for their cooperation and assistance in this investigation.

The charges contained in the Indictment and Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. 

---

[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint, and the descriptions of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

A.G. Schneiderman Announces Arrests Of Two Tax Preparers For Allegedly Filing False Returns

Schneiderman: We Will Not Allow Unscrupulous Individuals To Line Their Own Pockets At The Expense Of Honest Taxpayers

  Attorney General Eric T. Schneiderman and Acting Taxation and Finance Commissioner Nonie Manion today announced the arrests of tax preparers Anibell Perez, 33, of New York, and Sorangel Carrasco, 34 of the Bronx, for charges related to the filing of fraudulent tax returns. According to documents filed in court, both women are alleged to have fraudulently filed tax returns on behalf of taxpayers in which they claimed deductions for false dependent nieces and nephews and requested refunds in excess of what the taxpayers were entitled to receive.

Attorney General Eric Schneiderman said, “We will not allow unscrupulous individuals to line their own pockets at the expense of honest taxpayers. Those who cheat the tax system are stealing from their fellow New Yorkers, and I am pleased to work with my partners in law enforcement as we continue to root out tax fraud.”

Both defendants were arraigned on felony complaints filed in Albany City Court.  Carrasco, a registered tax preparer located in Bronx, NY, has been charged with five counts of Offering a False Instrument for Filing in the First Degree (a Class E Felony), one count of Attempted Grand Larceny in the Third Degree (a Class E Felony), and one count of Grand Larceny in the Fourth Degree (a Class E Felony).  Perez, also a registered tax preparer in Bronx, NY has been charged with four counts of Offering a False Instrument for Filing in the First Degree and one count of Attempted Grand Larceny in the Third Degree.

These arrests are the result of a concerted enforcement effort carried out by the NYS Tax Department to crack down on tax preparers filing fraudulent returns. Attorney General Schneiderman partnered with the NYS Department of Taxation and Finance, Manhattan District Attorney Cyrus R. Vance Jr., Acting Brooklyn District Attorney Eric Gonzalez, Bronx District Attorney Darcel Clark, and Richmond County District Attorney Michael McMahon. The allegations against other individuals by other law enforcement agencies include the following:

Thomas Keeley, 59, of Staten Island

• Prepared several thousand returns since 2011, but nearly half claimed what appeared to be unsubstantiated itemized deductions with usually high job expenses;
• Failed to file his own income tax returns from 2008 through 2015;
• Faces 49 new felony counts for Criminal Tax Fraud and Offering a False Instrument for Filing;
• Pleaded guilty to similar crimes in 2008.

Kevin Webb, 58, of The Bronx

• Filed more than 20 suspicious tax returns with unverified data;
• Faces Criminal Tax Fraud charges;
• Failed to file his own income tax returns from 2013, 2014, and 2015. 

Lorenzo Almanzar, 61, of White Plains

• Filed returns with inflated job expenses on clients’ returns without the client’s knowledge;
• Faces Criminal Tax Fraud charges and;
• Offering a false instrument for filing.

Chatise Thomas, 41, of Brooklyn

• Accused of engaging in schemes aimed at providing her clients with deductions that fraudulently lowered their tax liability;
• Faces both felony and misdemeanor counts of offering a false instrument for filing;
• This year, several of her clients were interviewed, all denying they gave her permission to claim inflated itemized deductions as claimed on their state income tax returns.

Jefferson Sanchez, 33 of New York, Wanda Ramirez, 23 of New York

• Accused of adding false dependents to clients’ tax returns to inflate refunds;
• Both face felony charges of offering a false instrument for filing and; 
• Misdemeanor criminal tax fraud charges. 

Carol Rati, 61, of Brooklyn

• Faces felony counts of offering a false instrument for filing;
• She allegedly filed fraudulent tax returns for her clients claiming false deductions to either increase the refund amount or reduce their tax liability;
• Investigators interviewed more than a dozen of her clients who all said their returns contained false information that they never provided.

“Everyone loses when a tax preparer commits tax fraud, including honest citizens and NYS communities deprived of revenue needed to fund vital services. We will continue to work with all our partners in law enforcement to ensure that unethical tax preparers are held accountable and face justice,” said Acting Commissioner Nonie Manion.

The charges against the defendants are merely accusations and they are presumed innocent unless and until proven guilty.

The Attorney General encourages all New Yorkers to review his tax day tips to avoid frequent tax season frauds.

The Attorney General thanks the New York State Department of Taxation and Finance for their assistance in this investigation.