Ten Defendants Charged With Decade-Long, Multi-Million-Dollar Scheme To Defraud International Cargo Airline

 

Senior Executives of Polar Air Cargo Worldwide, Inc. Engaged in Criminal Conduct that Led to Pervasive Corruption of Nearly Every Aspect of Company’s Operations

 Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Thomas Fattorusso, the Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of a four-count Indictment charging LARS WINKELBAUER, ABILASH KURIEN, CARLTON LLEWELLYN, ROBERT SCHIRMER, SKYE XU, BENJAMIN WEI, a/k/a/ “Ben Wei,” ALVARO LOPEZ, FABIOLA CINO, ORLANDO WONG, and PATRICK LAU, a/k/a “Pat Lau,” in connection with a massive scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of tens of millions of dollars in revenue and the honest services of its employees.  Nine defendants were arrested today.  KURIEN, LLEWELLYN, SCHIRMER, and LAU will be presented in federal court in Manhattan this afternoon.  WEI and WONG will be presented later today in federal court in the Central District of California.  LOPEZ and CINO will be presented later today in federal court in the Southern District of Florida.  WINKELBAUER was arrested today in Thailand and is pending extradition to the United States.  SKYE XU remains at large.

U.S. Attorney Damian Williams said: “As alleged, the 10 defendants charged today conducted a widespread scheme that tainted nearly every aspect of Polar Air Cargo Worldwide’s operations and that cost the company an estimated $52 million in losses.  The defendants, all of whom were either employed in high-level positions by Polar or were vendors reliant on business arrangements with Polar, allegedly showed a blatant disregard for the integrity of their companies in favor of lining their own pockets.  Their pervasive fraud ends today, and each defendant now faces substantial prison time for their alleged crimes.” 

FBI Assistant Director Michael J. Driscoll said: “For more than a decade, the defendants allegedly utilized a complex set of schemes at the expense of Polar Air to line their own pockets.  The indictments today serve as a reminder to any unscrupulous actors attempting complex frauds – the FBI will hold you accountable in the criminal justice system.”   

IRS-CI Special Agent in Charge Thomas Fattorusso said: “Today’s charges are the opening salvo against a decade-long scam by a small group of Polar’s executives and others that allegedly tainted every aspect of its business operations.  These arrests and charges today will hopefully begin the process of righting the alleged wrongs of those charged and put the company on a path to integrity, which its hardworking employees and legitimate customers deserve.”

As alleged in the Indictment:[1]

From at least in or about 2009 through in or about July 2021, LARS WINKELBAUER, ABILASH KURIEN, CARLTON LLEWELLYN, ROBERT SCHIRMER, SKYE XU, BENJAMIN WEI, ALVARO LOPEZ, FABIOLA CINO, ORLANDO WONG, and PATRICK LAU participated in a massive scheme to defraud Polar.  At all relevant times, WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER (collectively, the “Executive Defendants”) were senior executives of Polar.  XU, WEI, LOPEZ, CINO, WONG, and LAU (collectively, the “Vendor Defendants”) owned and operated various Polar vendors and customers.  The Executive Defendants agreed to accept millions of dollars in kickbacks from the Vendor Defendants and also reaped substantial financial benefits as a result of their secret ownership interests in certain Polar vendors, in exchange for ensuring that those vendors received favorable business arrangements with Polar.  The fraud they perpetrated — which involved a substantial portion of Polar’s senior management and at least 10 customers and vendors of Polar — led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations, for over a decade. 

Polar’s business involved numerous outside vendors and customers.  Polar relied heavily on third-party, general sales agents (“GSAs”) in the United States to sell cargo space on its planes.  In turn, the GSAs hired by Polar often sold available cargo space to freight forwarding vendors, which had been hired by downstream customers to coordinate transportation logistics for large quantities of goods.  Polar also contracted with ground handling vendors to load and unload cargo and with trucking vendors to transport cargo from domestic locations to the appropriate airports.  In addition, Polar contracted with other partners for a variety of business reasons, including to secure cargo space on airline routes not serviced by Polar flights.  The scheme to defraud Polar touched on each aspect of these operations.

Together, the Executive Defendants and the Vendor Defendants defrauded Polar by corrupting Polar’s relationships with GSAs, freight forwarders, and other vendors, including those providing ground handling and trucking services.  Unbeknownst to Polar, the Executive Defendants utilized their positions within Polar to secure, among other things, favorable contracts, valuable cargo space, favorable shipping rates, and enrollment in various incentive programs for the Vendor Defendants and their entities.  In return, the Vendor Defendants paid the Executive Defendants kickbacks in various forms, including, for example, in payments calculated per kilo of cargo shipped with Polar or as a percentage of the revenue earned as a result of a vendor’s relationship with Polar.  In addition, the Executive Defendants, in various combinations, held concealed ownership positions in certain companies which contracted with Polar and that were, in at least one case, associated with the Vendor Defendants.  As a result, the Executive Defendants received ownership distributions based, in large part, on revenue derived from contracts with Polar — contracts that had been secured and, often times, renewed due to, in large part, the recommendation of the Executive Defendants with conflicts of interest.

To conceal the kickbacks and conflicted ownership interests from Polar, and thereby to continue the fraud scheme, WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER often directed the kickbacks and ownership distributions be paid to limited liability companies with non-descript names that they, in fact, controlled.  Additionally, the Executive Defendants communicated amongst themselves and with the Vendor Defendants about the scheme primarily using personal email accounts, while the Vendor Defendants conducted official Polar business with the Executive Defendants primarily using their professional email accounts. 

As a result of the scheme, the Executive Defendants, along with two co-conspirators who also worked as senior executives at Polar, received unlawful payments, either directly or through various limited liability companies they controlled, in excess of approximately $23 million in kickback payments or disbursements received as a result of their ownership of conflicted companies.  Additionally, a financial analysis conducted at Polar’s direction estimates that, as a result of the fraudulent scheme, Polar suffered at least approximately $52 million in losses between in or about 2009 and in or about July 2021.

In the Summer of 2021, Polar discovered documentary evidence of the conflicted ownership arrangements and kickback agreements.  Shortly thereafter, Polar terminated the employment of WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER, and reported the conduct to law enforcement authorities.  Polar has continued to cooperate with law enforcement authorities through the investigation.

WINKELBAUER, 47, of Bangkok, Thailand, KURIEN, 45, of Wilton, Connecticut, LLEWELLYN, 55, of Highland Mills, New York, SCHIRMER, 58, of Port Jefferson Station, New York, XU, 40, of West Covina, California, WEI, 58, of San Marino, California, LOPEZ, 50, of Aventura, Florida, CINO, 45, of Aventura, Florida, WONG, 60, of Manhattan Beach, California, and LAU, 43, of Flushing, New York, are each charged with one count of conspiracy to commit wire fraud and honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER are also charged with one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.   

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding work of the FBI and IRS-CI.  Mr. Williams also thanked the United States Attorney’s Offices for the Central District of California and the Southern District of Florida as well as the Justice Department’s Office of International Affairs and Thai authorities for their assistance in the investigation. 

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

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

NEW YORK CITY LEADS COALITION OF CITIES AND COUNTIES FROM ACROSS NATION TO FIGHT FOR CONTINUED ACCESS TO MEDICATION ABORTION DRUG

 

Filing of Amicus Brief Comes After Texas District Court Ruling That Would Ban Long-Accepted Medication Abortion Regimen Nationwide

 

Brief Supporting Federal Government for Emergency Stay Argues That Ruling Undermines Public Health and Rests on Baseless Claims

New York City Mayor Eric Adams and New York City Corporation Counsel Sylvia O. Hinds-Radix today announced that the City of New York has co-led a coalition of cities and counties from around the nation that operate public health-care systems in a legal filing to protect safe access to medication abortions nationwide. In an amicus brief filed in Alliance of Hippocratic Medicine v. U.S. Food and Drug Administration (FDA) in the U.S. Court of Appeals for the Fifth Circuit, New York City and the coalition of local governments signal their strong support for the federal government’s application for an emergency stay of a federal district court’s ruling that — starting this Friday — would put a hold on the FDA’s 2000 approval of the medication abortion drug mifepristone. In their brief, the coalition argues that the district court’s order undermines public health because it will harm already overburdened public hospitals without realizing the detrimental impact it would have on health care for residents of each locality, as well as makes baseless claims that medication abortion is unsafe.

 

“The decision last week was nothing more than an assault on women’s rights by a Trump-appointed judge in Texas simply set on trampling the law instead of upholding it,” said Mayor Adams. “New York City is proud to lead this coalition in filing an amicus brief in full support of the federal government’s effort to reverse this harmful decision and restore the authority that the FDA has under the law. If the safe and effective two-drug regimen is suddenly removed, our public health care system will have to divert resources to provide alternate options and procedures, which will undoubtedly affect our public hospitals’ ability to provide care to patients seeking abortions and could impact their ability to provide care across the board. This decision was nothing more than an effort to control women’s bodies, their choices, and their freedoms, and we will do everything in our power legally, personally, and politically to fight this ruling and defend the rights of all women.”

 

“As detailed in our amicus brief, this misguided ruling by the Texas court would undermine public health across the nation,” said Corporation Counsel Hinds-Radix. “If the court suspends the FDA’s approval of mifepristone, it will immediately harm pregnant women who will be forced to seek more invasive or less effective care. That burden would be disproportionately borne by the most vulnerable individuals in our communities and further stress overburdened public health-care systems across the country.”

 

“New York City has been and will remain a hub for access to reproductive health care. These services are generations long freedoms that we will fight to restore and maintain,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “Our amicus brief, alongside our counterparts in California, Illinois, and Washington states, show the strength of our coalition to push back against the recent ruling in Texas. Both our Health Department and our public hospital system will remain strong resources for every person seeking guidance and support in their reproductive health care.”

 

“The Texas court ruling goes against an overwhelming body of scientific evidence that says mifepristone is safe, and it could complicate the delivery of abortion services to those who need it most,” said Mitchell Katz, MD, president and CEO, NYC Health + Hospitals. “Depriving our providers of the ability to prescribe mifepristone not only impacts their ability to provide abortion care, but also impacts their ability to treat persons who are suffering the tragedy of a miscarriage. This decision will not deter NYC Health + Hospitals from its commitment to make abortion services available to anyone. We will continue providing this essential service to our patients, and, if needed, we will adapt our protocol to comply with the law in the future.”

 

For more than 20 years, mifepristone, used in combination with the drug misoprostol, has been a safe option for those managing an abortion or miscarriage in the United States, and has now become the most common method to terminate a pregnancy in the country. But, last Friday, Judge Matthew Kacsmaryk of the U.S. District Court for the Northern District of Texas — a Donald Trump appointee — issued a ruling effectively making the prescription of mifepristone illegal nationwide, including here in New York City, starting this Friday, barring emergency relief being ordered by the U.S. Court of Appeals for the Fifth Circuit.

 

In their brief, New York City and the coalition warn that withdrawing federal approval of mifepristone would gravely harm public health care systems across the country that are still struggling with severe funding and staffing challenges following the COVID-19 pandemic. The amicus highlights how the district court’s decision will aggravate those challenges, making it harder for residents, including the most vulnerable, to access care of all kinds, and ultimately undermine the very community health that local governments are charged with protecting.

 

As argued in the brief, if medication abortion is suddenly removed as an option for health-care providers and their patients, demands placed on public hospitals will increase. Public hospitals, in turn, would then have to divert resources to meet the increased demand for emergency care and for procedural abortions from their existing patients and from new patients who otherwise would have sought care from providers who cannot pivot to providing procedural abortions.

 

Because public hospitals operate with limited resources, the impact of the district court’s decision will not be confined to only patients seeking abortions, or even just those seeking reproductive health care. Thousands of patients in need of all kinds of non-emergency surgical care will find themselves facing significant delays in obtaining procedures, and some may forgo care altogether. Reducing the ability of public hospitals to provide resource-effective, high-quality care will erode patients’ confidence in care and make the provision of health care to already-vulnerable patients even more difficult. If left in place, the district court’s decision could undermine public health services across the board.

 

Joining the City of New York and NYC Health + Hospitals in co-leading this amicus brief is Santa Clara County, California. They are joined by Los Angeles and San Francisco counties, California; the city of San Francisco, California; Cook County, Illinois; and King County, Washington.

FundRaiser for Councilwoman Pierina Sanchez

 

With no state budget yet, the members of the state legislature were up in Albany Monday trying to hammer out a deal for a late state budget. Meanwhile at the Bronx Democratic County Headquarters on Williamsbridge Road there was a gathering of friends of City Councilwoman Pierina Sanchez in her reelection bid for the city council. 

Councilwoman Sanchez was joined by Congressman Ritchie Torres whose districts now overlap, Bronx Borough President Vanessa L. Gibson, former New York City Schools Chancellor Dr. Meisha Porter, and other supporters of the Bronx Democratic Party and Councilwoman Sanchez. The councilwoman is the lead elected official in the latest attempt to revitalize the Kingsbridge Armory with Bronx Borough President Vanessa Gibson, and State Senator Robert Jackson. Councilwoman Pierina Sanchez is the Chair of the Committee on Housing and Buildings in the City Council. 

Bronx Borough President Vanessa L. Gibson stands with Councilwoman Pierina Sanchez in front of the 'Bronx Dems' sign inside the Bronx Democratic Party headquarters on Williamsbridge Road. 

Congressman Ritchie Torres stands with Councilwoman Pierina Sanchez and Rosa Ayala.

Community Board 7 member Sandra Erickson was on hand to be with Councilwoman Sanchez, as Congressman Torres speaks to some constituent in the background. 

Bronx Borough President Vanessa L. Gibson speaks about her partnership with Councilwoman Sanchez on the Kingsbridge Armory.

Councilwoman Pierina Sanchez speaks about how she is happy to represent her district, her friendships with other elected officials, and about being a new mom to a one year old. 

(L - R) Indhira Mojica of Empire Consulting, Fidel Malena Bronx Regional Representative for Governor Kathy Hochul, Former Schools Chancellor Dr. meisha Porter, Bronx Borough President Vanessa L. Gibson, Yanely Hernandez, Phipps Neighborhood, Councilwoman Pierina Sanchez, Rosemary Jenkins Ordonez, and Rosa Ayala.

CONSUMER ALERT: New York Department of State’s Division of Consumer Protection Releases Guide with Scam Prevention Tips for First-Time Homebuyers

 

Part Two of Five-Part Consumer Alert Series to Help New Yorkers Navigate Housing Scams 

Follow the New York Department of State on Facebook, Twitter and Instagram for “Tuesday’s Tips” – Practical Tips to Educate and Empower New York Consumers on a Variety of Topics 

Secretary Robert J. Rodriguez: “If you’re about to embark on the adventure of finding your first home, make sure to do your research, exercise caution and follow our tips throughout every step of the process so you can recognize a potential scam before it turns into a costly mistake.” 

For this week’s “Tuesday’s Tips,” the New York Department of State’s Division of Consumer Protection announced the release of a comprehensive guide with important scam prevention tips for first-time homebuyers. The guide is part two of a five-part consumer alert series to help New Yorkers navigate housing scams, which are a continuously growing risk for consumers. In the coming weeks, consumers will receive guidance on how to navigate housing scams when renting, buying a first home, protecting their homes, planning a home improvement project or looking for a moving or storage company. Follow the New York Department of State on Facebook, Twitter and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

“Buying a first home is an exciting milestone, but with so many steps and different professionals to work with, scammers often look to take advantage of first-time homebuyers who are new to the process,” Secretary of State Robert J. Rodriguez said. “If you’re about to embark on the adventure of finding your first home, make sure to do your research, exercise caution and follow our tips throughout every step of the process so you can recognize a potential scam before it turns into a costly mistake.”

Below are important scam prevention tips to help new homebuyers:

Research and look for credible resources and referrals. During the homebuying process, buyers are working with lenders, real estate agents, home inspectors and other individuals. It’s important to take the time to do the initial research that will get you started on the right path.

• Take your time assessing all the people you will work with who will guide you through this important milestone.
• Check with your local Better Business Bureau to make certain no complaints have been reported.
• Review our tips on how to verify real estate professionals by reviewing part one of our housing scam consumer alert series.

Avoid digital mortgage comparison-shopping platforms. The Consumer Financial Protection Bureau recently issued guidance warning mortgage borrowers about digital comparison-shopping platforms. If you’re using these platforms, be aware that companies operating these platforms often appear as if they provide objective lender comparisons, but instead may refer people to only those lenders that pay referral fees to the platform. It’s important to note that these types of financial arrangements that influence or manipulate search results for a monetary benefit are illegal.

Be wary of up-front fees for mortgage-related services. Paying up-front fees before you get the loan may be an indicator of a scam. Generally, there are fees associated with the mortgage financing process, such as application fees, appraisal fees and other relevant fees. Below are some tips to help differentiate a real lender from a scammer:

• Real lenders are transparent when it comes to fees and itemize these fees before closing. You should receive clear written disclosures about fees that will be charged and the fees should be tied to services being provided.
• Scammers, on the other hand, may request an up-front fee before any work is done. Once you provide the payment, they disappear. Be very cautious of anyone who requests advance fees in connection with a mortgage loan.

Have your own attorney review all contracts and loan documents before you sign. Hiring a real estate attorney is important to streamline the legal transfer of property. It is not a good idea to use an attorney provided by the seller or the lender. Ask your attorney about any provision you do not fully understand. To find an attorney in New York State, search or contact the New York State Bar Association Lawyer Referral Service.

Avoid home inspection scams. Home inspections are vital to the homebuying process because they can expose hidden problems in the home you plan to buy, such as deferred maintenance, structural issues, mold or faulty wiring that could cause a fire. In a home inspection scam, a provider may hide potential problems with the home to increase referrals or as part of a collusive arrangement. To prevent this type of fraud:

• Avoid using home inspectors referred through real estate agents or others who may not share your interests.
• Make sure the home inspector is licensed in New York by searching the NYS Department of State’s Public License Search database.
• Check references. Even with an experienced licensed home inspector, it is good practice to ask questions and look for signs of irregularities.
• Make sure the inspector can access all areas of the property and make sure you receive a copy of the report.

Prevent mortgage closing scams. Scammers are increasingly taking advantage of homebuyers during the closing process. When you’re about to close on your new home, scammers posing as a real estate agent or a lender attempt to divert your closing costs and down payment funds by sending last-minute changes to your wiring instructions. Don’t fall for this phishing scam. Before you do anything:

• Always verify any changes by contacting a trusted representative.
• Avoid clicking on any links or sending financial information via email. Email is never a secure way to send sensitive information.

About the New York State Division of Consumer Protection

The New York State Division of Consumer Protection provides resources and education materials to consumers, as well as voluntary mediation services between consumers and businesses. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumer-protection.

For other consumer protection tips and consumer alerts, consumers can visit the DCP website or follow DCP on social media via Twitter at @NYSConsumer or Facebook at www.facebook.com/nysconsumer

Robot Police Dogs are Back in NYC

 

Technology is here and New Yorkers shouldn’t be afraid of it, New York City Mayor Eric Adams said this morning as he and police leaders announced that the city would resurrect the controversial canine-like cyborgs to be used in high risk situations like a bomb threat or a barricaded shooter.

 

The use of the four-legged robot that the New York City Police Department calls Digidog was axed by the previous administration after it garnered fierce backlash from civil rights advocates. But it made its return in Times Square alongside two new technologies that the NYPD plans to pilot as part of its ongoing plan to utilize emerging, innovative, technologies to better keep officers and the public safe.

With Increased Fire Danger, DEC Reminds New Yorkers: Annual Residential Brush Burning Prohibition in Effect Through May 14

Spring Burn Ban Reduces Wildfire Risks, Protects Lives and Property

The New York State Department of Environmental Conservation (DEC) reminded New Yorkers today about the annual statewide ban prohibiting residential brush burning that lasts March 16 through May 14. With warmer temperatures and lower humidity, the risk of fire increased across the state this week. The Fire Danger Map for the 2023 fire season on DEC's website is updated with the latest fire conditions.

DEC enforces the annual brush burning ban to prevent wildfires and protect communities during heightened conditions for wildfires. Open burning of debris is the single-largest cause of spring wildfires in New York State. When temperatures warm and the past fall's debris and leaves dry out, wildfires can start and spread easily, further fueled by winds and a lack of green vegetation. Each year, DEC Forest Rangers extinguish dozens of wildfires that burn hundreds of acres. In addition, local fire departments, many of which are staffed by volunteers, all too often have to leave their jobs and families to respond to wildfires caused by illegal debris fires.

New York first enacted strict restrictions on open burning in 2009 to help prevent wildfires and reduce air pollution. The regulations allow residential brush fires in towns with fewer than 20,000 residents during most of the year, but prohibit such burning in spring when most wildfires occur. Backyard fire pits and campfires less than three feet in height and four feet in length, width, or diameter are allowed, as are small cooking fires. Only charcoal or dry, clean, untreated, or unpainted wood can be burned. People should never leave these fires unattended and must extinguish them. Burning garbage or leaves is prohibited year-round in New York State. For more information about fire safety and prevention, go to DEC's FIREWISE New York webpage.

Some towns, primarily in and around the Adirondack and Catskill parks, are designated "fire towns." Open burning is prohibited year-round in these municipalities unless an individual or group has a permit from DEC. To find out whether a municipality is a designated fire town or to obtain a permit, contact the appropriate DEC regional office. A list of regional offices is available on DEC's website.

Forest Rangers, DEC Environmental Conservation Police Officers (ECOs), and local authorities enforce the burn ban. Violators of the State's open burning regulation are subject to criminal and civil enforcement actions, with a minimum fine of $500 for a first offense. For search and rescue, reporting a wildfire or illegal activity on state lands and easements, call 1-833-NYS-RANGERS (1-833-697-7264). To report environmental law violations, call 1-844-DEC-ECOs (1-844-332-3267).

Interview soundbites/quotes from Forest Ranger Lieutenant Scott Jackson is available here, https://www.dec.ny.gov/fs/programs/press/ForestRangers/Lt.ScottJacksonBurnBanReminder.mp4

 

Restaurateur Sentenced To 57 Months In Prison For Over $6 Million Pandemic Loan Fraud And Interstate Threats

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced today that restaurateur BESIM KUKAJ was sentenced to 57 months in prison for orchestrating a sprawling loan fraud scheme, including while he was on pretrial release, whereby he fraudulently sought at least $6.14 million and received $1.5 million in Government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic.  KUKAJ was also sentenced for attempting to intimidate a creditor as part of an interstate threats scheme with his already sentenced co-defendant Abduraman Iseni, a/k/a “Diamond.”  U.S. District Judge Andrew L. Carter imposed today’s sentence.

U.S. Attorney Damian Williams said: “Manhattan restaurateur Besim Kukaj took advantage of the hardships created by the COVID-19 pandemic and the federal government’s efforts to help those in need by lining his own pockets with seven figures of illegally obtained funds.  He did this out of pure greed, sending some of this money to a Florida real estate developer and using it to buy luxury items from Cartier and Hugo Boss.  He even continued to commit the same crimes while he was on bail.  And he didn’t stop there.  He directed his co-conspirator to physically threaten a victim to whom he owed money.  For his brazen crimes, Kukaj will serve meaningful time in prison.”

According to court filings and statements made in court proceedings:

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Small Business Administration’s Paycheck Protection Program (“PPP”) and additional billions for the separate Economic Injury Disaster Loan program (“EIDL”).  Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined in significant part by the number of employees employed by the business and their average payroll costs.  The amount of a loan under the EIDL program is determined in part by a formula based on the date the borrower began operating and the borrower’s gross revenue and cost of goods sold during a period before the pandemic.  The loans can be used only for working capital and other normal operating expenses.  Businesses applying for loans under the PPP and EIDL program must confirm the accuracy of their loan statements. 

From at least in or about April 2020 through at least in or about July 2020, KUKAJ, working with others, submitted applications for loans under the EIDL program and the PPP to multiple banks on behalf of various restaurants KUKAJ or a relative of his owned.  He did so on behalf of restaurants that were no longer operating or that had far less revenue and far fewer employees than were listed on the loan applications.  KUKAJ and his co-conspirators applied for dozens of loans, totaling at least $6.14 million, from numerous financial institutions, using many different corporate entities, and they successfully received at least $1.5 million in loans. 

KUKAJ was arrested in October 2020 and charged with bank fraud conspiracy and later indicted for the same charges in December 2020.  He was released on pretrial release under a court order that notified him of the potential effect of committing a crime while on pretrial release.  KUKAJ violated the terms of his bail for continuing to file false loan applications while on pretrial release for the same conduct.  Specifically, in 2021, while on pretrial release, KUKAJ filed additional false loan applications that inflated the businesses’ number of employees and payrolls and falsely claimed that he was not under indictment. 

Separately, on November 6, 2019, at the urging of KUKAJ, co-defendant Abduraman Iseni placed a telephone call to a victim, in which Iseni threatened physical violence against the victim.  KUKAJ instructed Iseni to place this call because KUKAJ owed money to the victim.

In addition to the prison sentence, KUKAJ, 43, of Fort Lee, New Jersey, was ordered to pay forfeiture of $1,500,000 and restitution in the amount of $1,500,000 to the U.S. Small Business Administration.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation New York’s Balkans and Middle East Organized Crime Squad, as well as the Small Business Administration Office of the Inspector General, the Social Security Administration Office of the Inspector General, and the New York State Liquor Authority for their investigative efforts and ongoing support and assistance with the case.  

Governor Hochul Announces Final Sexual Harassment Model Policy to Strengthen Protections for New York Workers

 

Policy Includes New Guidance to Protect Remote Workers; Adds New Online Training Resources to Help New Yorkers Better Understand Their Rights

Builds on Governor's Commitment to Improve Safety and Accountability in the Workplace

View Final Sexual Harassment Prevention Policy and Training Video

 Governor Kathy Hochul today announced that the New York State Department of Labor has finalized updates to the State's Sexual Harassment Model Policy, a template document that New York State provides to employers to help them comply with State laws and access state-of-the-art policies on sexual harassment and related topics to protect employees in the workplace. The New York State Department of Labor collaborated with the New York State Division of Human Rights on the strengthened guidance, which addresses remote workers, gender discrimination, retaliation, and other new guidance for workers in New York State. The New York State Department of Labor also unveiled a new interactive training video and online resources to help employers and employees statewide understand and comply with the newly enhanced policy and mandatory training requirements.

"New York State is taking a tremendous step in modernizing our Sexual Harassment Prevention Model Policy to ensure that every worker has equitable access to resources that will foster safe and inclusive work environments," Governor Hochul said. "When I took office, I promised to overhaul our state's policies to give New Yorkers the strongest protections against workplace harassment and abuse. Now, thanks to the efforts of the Department of Labor and feedback from countless New Yorkers, these policy changes and resources will help businesses adapt their policies to the modern workplace and solidify New York's standing as a national leader for worker protection."

The new model policy and training resources include information, case studies, and real-world examples of how sexual harassment may emerge in a newly remote world of work and in a wider array of work experiences beyond the typical office space, as well as how gender discrimination, including gender role stereotyping and treating employees differently because of their gender, is sexual harassment. These tools help public and private sector employers comply with New York State laws that require employers to provide all employees with a sexual harassment and workplace discrimination prevention policy, annual sexual harassment and discrimination prevention training, and a copy of the policy on paper or by email at the time of hiring and annually during training.

Governor Hochul announced plans to update New York's Sexual Harassment Model Policy in July 2022 to ensure that New York continues to lead the nation in protecting its workers from harassment, discrimination, and retaliation. The new Sexual Harassment Prevention Model Policy was created with input from New Yorkers, advocates, stakeholders, and others statewide both online during an extensive public comment period, as well as in-person through meetings and a public hearing. The feedback was instrumental in drafting the new, modern, and plain-language policy, ensuring New York's workforce receives the utmost protections while on the job.

New York State Department of Labor Commissioner Roberta Reardon said, "New York State continues to be an economic powerhouse because we are backed by a strong and committed workforce. The new sexual harassment prevention policy and model training ensure the state's workers are protected. I thank Governor Hochul for her endless support for workers and for her commitment to ensure that New York State continues to be a leader in safeguarding the workforce."

New York State implemented its first Sexual Harassment Prevention Model Policy in 2018 as part of groundbreaking legislation enshrining New York State's commitment to establishing safer and more equitable workplaces. This legislation requires all employers, regardless of size, to adopt a sexual harassment prevention policy and provide annual training to employees and for New York State to provide a model policy and training to assist employers in meeting this requirement. The legislation also requires that the model policy provided by the State be reviewed and revised every four years.

In addition to a new training video available to all employers statewide, the New York State Department of Labor will also launch a public education campaign to help New Yorkers and businesses understand the newly strengthened policy. New York State has also updated its Combating Sexual Harassment resource page to include new toolkits for workers and employers, updated Frequently Asked Questions, as well as a new training slide deck and accompanying script, and other assets that businesses can utilize for employee training purposes to ensure compliance.

New York State Division of Human Rights Commissioner Maria L. Imperial said, "These important actions from the State Department of Labor will help build more equitable and inclusive workplaces, including those that are remote and hybrid. Governor Hochul has made eliminating sexual harassment a priority and the Division is proud to enforce our state's workplace harassment laws. We will continue to use every tool at our disposal to uphold the dignity and safety of every worker across New York State."

For more information on the current Sexual Harassment Prevention Model Policy and to access all training resources, visit the Combating Sexual Harassment in the Workplace website. If you or someone you know is experiencing sexual harassment in the workplace, file a report online or call NYSDHR's new toll-free sexual harassment hotline at 1-800-HARASS-3 Monday through Friday, 9:00 a.m. to 5:00 p.m.