Thursday, December 8, 2022

Chief Technology Officer Of Blockchain Company Charged With Scheme To Defraud The Company Of Over $1 Million And Cryptocurrency

 

Damian Williams, the United States Attorney for the Southern District of New York and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an indictment charging RIKESH THAPA with operating a scheme to defraud a start-up technology company (the “Victim Company”) of over $1 million worth of United States currency, cryptocurrency, and utility tokens.  THAPA used proceeds of his crime on personal expenses, including nightclubs, travel, and clothing, and falsified records and deleted evidence to conceal his theft.  RIKESH THAPA was arrested earlier today in the Southern District of California.  The defendant is expected to be presented before U.S. Magistrate Judge Mitchell D. Dembin this afternoon.  The case is assigned to U.S. District Judge John P. Cronan.

U.S. Attorney Damian Williams said: “Rikesh Thapa allegedly betrayed his company’s trust, as he was responsible for the safeguarding of substantial amounts of money.  Thapa went to great lengths to cover up his frauds, but, thanks to the dedicated work of this Office and our law enforcement partners, he will now have to answer for his crimes.” 

FBI Assistant Director in Charge Michael J. Driscoll said: “As we allege today, the defendant repeatedly stole from and defrauded the victim company - which he cofounded - in order to fund a luxurious personal lifestyle.  In an attempt to hide his crimes, he also deleted and falsified records.  The FBI will continue to work to ensure individuals willing to scam and steal from private businesses are held accountable in the criminal justice system."

As alleged in the Indictment unsealed today in Manhattan federal court:[1]

RIKESH THAPA co-founded and was the Chief Technology Officer (“CTO”) of the Victim Company, which during the relevant period was involved in using blockchain and other technology to provide a ticketing platform for live events.  Between December 2017 and September 2019, THAPA used his position to carry out a scheme to defraud the Victim Company.

In 2018, the Victim Company sought to diversify its banking because of its understanding that certain financial institutions were reluctant to maintain relationships with companies, such as the Victim Company, involved in cryptocurrency transactions.  In furtherance of that effort, THAPA agreed to receive and hold $1 million of the Victim Company’s money in his personal bank account (the “THAPA Account”) while the Victim Company explored banking options.  Soon after receiving the $1 million, however, THAPA began using the funds on personal expenses.  Nevertheless, THAPA repeatedly acknowledged what was supposed to be the temporary nature of his possession of the funds, representing to a colleague, in substance and in part, that the money was “a stationary 1mil in my account” that was held “for safe keeping.”  THAPA then falsified records to conceal his theft, providing the Victim Company with a forged bank statement, which falsely represented that THAPA held over $21 million, approximately $1 million of which was held in a particular savings account (the “Purported Account”).  In fact, THAPA did not have the Purported Account and held much less than $21 million at the relevant bank.  In 2019, THAPA refused to return the $1 million, which he spent on, among other things, nightclubs, travel, and clothing.

In addition, between December 2017 and September 2019, THAPA used his control over the Victim Company’s cryptocurrency holdings to embezzle at least 10 Bitcoin from the Victim Company.  For example, in August 2018, THAPA diverted at least one of the Victim Company’s Bitcoin for his own benefit, selling the Bitcoin for approximately $6,500 and depositing the proceeds into the THAPA Account (the “August 2018 Bitcoin Transaction”).  To avoid detection, THAPA falsified trading records and deleted emails.  In July 2019, THAPA sent the Victim Company’s CEO a fraudulent transaction report that misrepresented the August 2018 Bitcoin Transaction.  After the CEO, copying THAPA, thereafter requested and received a transaction report directly from the Victim Company’s cryptocurrency brokerage, THAPA disabled the CEO’s email account at the Victim Company (the “CEO Email Account”), deleted the cryptocurrency brokerage’s email from the CEO Email Account, and then deleted the entire CEO Email Account.

In yet another facet of the scheme, THAPA stole the Victim Company’s utility tokens.  Such tokens are a type of cryptocurrency that can be used to access particular services, products, or features.  In July 2019, unbeknownst to the Victim Company’s CEO, THAPA set up a meeting in Italy between THAPA and individuals who claimed to be interested in purchasing the Victim Company’s utility tokens.  Before the meeting, THAPA provided account information for the THAPA Account so that the purported investors could wire him funds.  During the meeting, however, THAPA agreed to receive cash in exchange for utility tokens.  After the meeting, THAPA transferred, without authorization, approximately 174,285 of the Victim’s utility tokens to the purported investors.  THAPA later determined that the cash he had received from the purported investors was counterfeit.    

RIKESH THAPA, 28, of San Diego, California, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.

The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the FBI’s New York Field Office.

The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

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

Statement from Governor Kathy Hochul on Mayor Eric Adams' Strategy to Address Housing Crisis

 Governor Kathy Hochul New York State Seal

"I applaud this announcement from Mayor Adams and the Building and Land Use Approval Streamlining Task Force paving the way for faster, simpler housing production in New York City and transformative, transit-oriented development in the Bronx. New York has become the place where workers and businesses want to be, but limited housing supply and a lack of affordability are costing far too many New Yorkers their 'New York Dream.' With our state staring down a housing crisis, we will need every community, every town, and every city to do its part to make housing accessible and affordable for all. My administration is ready to meet the housing crisis head-on in partnership with Mayor Adams and other local and state officials, and I look forward to sharing our proposals to unlock New York's housing potential in my State of the State address."  

MAYOR ADAMS UNVEILS “GET STUFF BUILT,” BOLD THREE-PRONGED STRATEGY TO TACKLE AFFORDABLE HOUSING CRISIS, SETS “MOONSHOT” GOAL OF 500,000 NEW HOMES

 

“Build Faster” With 100+ Concrete Reforms to Accelerate New Construction Approval Process by Half

“Build Everywhere” With Vision for 6,000 New Homes in Bronx, Ambitious Plan to Add Housing in All Five Boroughs

“Build Together” With State and Federal Policy Agenda Focused on Creating Affordable Housing

New York City Mayor Eric Adams today unveiled “Get Stuff Built,” a comprehensive, three-pronged effort to address New York City’s affordable housing crisis and underlying housing shortage by rapidly accelerating the pace of housing production, with a “moonshot” goal of meeting the need for 500,000 new homes over the next decade. Led by a new report titled “Get Stuff Built,” Mayor Adams’ plan focuses on building housing faster, everywhere, and together in partnership with New York State, the New York City Council, and New Yorkers in all five boroughs.

“If New York is to remain the city we love, we must have places for the people we love. We need more housing, and we need it as fast as we can build it,” said Mayor Adams. “The system has been broken for so long that we have come to view it as our reality. Our city declared a housing emergency five decades ago, yet, we have failed to address it with the same urgency we would any other crisis. That ends now. We can, and we must, do better. We need to add hundreds of thousands of units to address the problem, and that is exactly what we are going to do. Today we are saying yes to more housing and yes to getting stuff built. We are going to build faster, we are going to build everywhere, and we are going to build together.”

“Making our city stronger and bringing opportunity within reach of every New Yorker isn’t something that’s going to happen accidentally,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “We need bold action to address our chronic and acute housing crisis and we cannot leave any stone unturned — from reforming our own processes to building housing near new transit stations and to allowing a wider range of unit types in neighborhoods across the city. I’m looking forward to working with our partners to ‘Get Stuff Built’ and to build everywhere, faster, and together.”

“New York City can and should be a leader in ensuring everyone has access to housing. Today’s announcement is a proud moment that shows we are committed to making government work for our neighbors,” said Chief Housing Officer Jessica Katz. “This means cleaning up our processes, updating the rules, and removing the unnecessary administrative burdens that are holding us back. ‘Housing Our Neighbors’ laid out a blueprint for tackling the city’s homelessness crisis, and today you are seeing the results of that work. We have a long way to go, but we will ‘Get Stuff Built’ together and ensure all New Yorkers have a safe, stable, and affordable home.”

“The future prosperity of our city is dependent upon our collective ability to reform broken practices and replace the status quo with impactful and sustainable policies that reduce burdens and respond to the demand for a more efficient, effective, and equitable delivery of government services,” said Chief Efficiency Officer Melanie E. La Rocca. “These recommendations are a real step forward.”

GSB Report

Cover of the “Get Stuff Built” report. Credit: New York City Mayor’s Office

GSB Rendering

Conceptual rendering of a potential Morris Park Plaza, connecting the existing community to the Metro-North train station. Credit: New York City Department of City Planning

“Get Stuff Built,” a report produced by the Building and Land Use Approval Streamlining Task Force (BLAST) convened in June, includes 111 concrete actions the city will take to create more housing more quickly by cutting red tape, streamlining processes, and removing bureaucratic obstacles that are slowing housing production and economic recovery. These actions will increase the speed and lower the cost of development by accelerating project timelines by 50 percent, ensure environmental protection and meaningful public participation, and stimulate the creation of affordable housing across New York City.

Additionally, Mayor Adams formally kicked off the environmental review process to rezone the areas around two of the four new Metro-North train stations coming to the Bronx, with proposals to create thousands of new homes and family-sustaining jobs. Finally, Mayor Adams announced a series of policy priorities focused on stimulating housing creation, which his administration will pursue alongside partners in New York City, Albany, and Washington, D.C.

All of these initiatives fulfill commitments made in “Housing Our Neighbors,” the Adams administration’s blueprint for housing and homelessness; Rebuild, Renew, Reinvent: A Blueprint for New York City’s Economic Recovery,” the administration’s blueprint for a strong, equitable comeback; and the mayor’s “City of Yes” plan, which includes proposed zoning changes that would allow for the creation of a significant amount of additional housing.

“From day one of this administration, Mayor Adams was clear that our city’s recovery and future depended on our ability to cut red tape and make government work for our partners and all New Yorkers,” said First Deputy Mayor Lorraine Grillo. “I am tremendously proud of the team’s work in this area, and I know that this ambitious plan will deliver real results and put our city on the right path for generations to come.”

“We can’t ‘Get Stuff Done’ when existing unnecessary and complex regulatory hurdles stop even the simplest of projects from getting off the ground. With today’s announcement, we remedy this wrong,” said Deputy Mayor for Operations Meera Joshi. “Today’s report will result in streamlined processes and clarity for New York City builders of every size, from single-family homeowners to large developers.”

“Our plan to build housing faster, everywhere, together with our communities will help ensure more New Yorkers can find affordable places to live or stay in the neighborhoods they love,” said Deputy Mayor for Strategic Initiatives Sheena Wright. “It also addresses one of the most pressing crises facing our city. Our NYC Speaks community survey asked 50,000 New Yorkers their number one priority for creating safe neighborhoods, and housing was the number one response across every income level. This plan is a step in the answer to their call and demonstrates that their voices have been heard loud and clear by this administration.”

Build Faster

The “Get Stuff Built” report includes 111 specific actions that will improve efficiency and effectiveness of three governmental processes that have slowed housing production: City Environmental Quality Review (CEQR), land use approvals, and the city’s building permitting process. These improvements will shorten the time needed for these processes by 50 percent, accelerating the creation of new housing and reducing costs. City actions will include:

  • Speed up the pre-certification process and make it more transparent: Historically, land use review applications can get stuck in review and revision loops at several points. The pre-certification process — which must be completed before the Uniform Land Use Review Procedure (ULURP) can begin — has no mandated timeline and can take two years or longer. Through a series of actions and measures, the New York City Department of City Planning (DCP) will remove and eliminate certain requirements and actions that will allow applicants to complete the pre-certification process much more quickly. ULURP application materials will also become available to community boards and the public earlier in the pre-certification stage.
  • Exempt small housing projects from Environmental Assessment Statement: Most housing projects subject to land use approvals or public financing must conduct an environmental review that takes six to eight months to complete and can cost hundreds of thousands of dollars. Yet, nearly all of these smaller projects are found to have no significant impacts on the environment. Exempting small housing projects from environmental review will decrease overall cost and help open new homes to New Yorkers more quickly.
  • Improve traffic analysis: Proposals to build housing beyond current zoning limits must generally go through the CEQR process. Revising the methodology for traffic analysis could significantly improve the environmental review process and shorten the overall time required on a project. The city will update the current guidelines in the CEQR Technical Manual to replace the existing methodology of predicting possible vehicle delays at every nearby intersection and, instead, use simple modern data tools and reach conclusions based on typical neighborhood congestion patterns and the size and type of the proposed project.
  • Streamline construction inspections of fire protection systems: Currently, the New York City Department of Buildings (DOB) performs examinations, permitting, and inspections for construction-related activities of buildings, and the Fire Department of the City of New York (FDNY) monitors operation, maintenance, and compliance for fire safety of buildings after completion of construction. The city will make near-term systems improvements to coordinate plan review between DOB and FDNY, and, in the long-term, will consider transferring FDNY’s construction-specific permit responsibilities to DOB — while maintaining FDNY’s authority in operation and maintenance of buildings for fire safety compliance — to remove the redundancy of separate inspections during the construction process without compromising the safety of building occupants.
  • Expand DOB NOW to create a centralized city “one-stop shop” construction portal: This portal will process construction-related transactions across all city agencies involved in construction approval, permitting, and sign-off. This new system will break down silos between city agencies, create a single point of contact for an applicant, and allow applicants to track their approvals in real-time.

City agencies have already completed implementation of several improvements outlined in “Build Faster,” with approximately half of the identified improvements to be implemented over next 12 months. Most of the remaining recommendations will generally be implemented over the following 12-24 months. Several actions — namely those requiring ULURP review or major technology upgrades — may take up to 36 months to fully implement.

Build Everywhere

Taking the next steps in the “City of Yes” plan, and delivering on a core commitment in “Rebuild, Renew, Reinvent,” to invest in business districts and emerging job hubs across all five boroughs, the Adams administration is advancing two major neighborhood planning efforts.

The first is aimed at leveraging four brand-new Metro-North train stations set to open in the East Bronx in 2027, for which scoping documents are now available. The City of Yes Bronx Metro-North Plan would bring a projected 10,000 jobs; major new public and private investments, including by large health care institutions already in Morris Park; and as many as 6,000 new homes — at least 1,500 of which will be permanently affordable. To support the environmental review process for this project, public information meetings are set for December 13 and 15, 2022, and a public scoping meeting will be held on January 9, 2023. The project is set to be certified and begin ULURP in summer 2023.

The second major planning effort is a neighborhood development initiative in Central Brooklyn known as the Atlantic Avenue Mixed-Use Plan. It promises to bring thousands of new homes, and permanently income-restricted homes, commercial and industrial jobs, infrastructure, and other improvements to Atlantic Avenue and its neighboring blocks in Crown Heights and Bedford-Stuyvesant. A steering committee formed to help shape the plan held its first meeting on December 1, 2022. Six months of public engagement is expected to begin in January and run through June 2023, followed by the release of a report. Certification is expected in 2024.

Beyond these two neighborhood planning efforts, the administration has proposed Zoning for Housing Opportunity, a citywide zoning text amendment as part of Mayor Adams’ “City of Yes” plan. Scoping for this proposal will begin at the end of 2023 and will stimulate the creation of tens of thousands of new homes in neighborhoods across the entire city. The text amendment would:

  • Expand opportunities for affordable and supportive homes for New Yorkers by increasing the floor area ratio for all types of affordable housing, similar to the allowance already afforded to affordable housing for seniors;
  • Broaden the acceptable variety of housing types and sizes, including studios, to accommodate a wider range of families and households where appropriate;
  • Ease conversions of underutilized commercial buildings into homes; and
  • Reduce or eliminate unnecessary parking requirements that add cost and reduce the number of homes being built.

Build Together

Recognizing that New York City can only meet the scale of the housing crisis in partnership with allies at the federal, state, city, and community level, Mayor Adams committed to working in partnership with Governor Kathy Hochul, legislative leaders and members of the State Legislature in Albany, the City Council, borough presidents, federal partners, and community leaders — including the faith-based community — to advance a shared regional agenda.

Priorities for the administration include:

  • Prohibiting exclusionary zoning practices and encouraging appropriate density near jobs and public transit;
  • Legalizing existing basement apartment units and allowing homeowners to create other accessory dwelling units;
  • Providing New York City the ability to allow additional residential density in high-density neighborhoods;
  • Allowing the New York City Department of Housing Preservation and Development (HPD) to finance and preserve more affordable housing, secure longer affordability, encourage affordable homeownership, and enable affordable housing to include critical resources like child care and senior centers;
  • Facilitating the conversion of obsolete office buildings into housing;
  • Creating a tax benefit that enables multifamily rental development while requiring affordable housing;
  • Establishing an incentive to preserve housing quality and ensure healthy, safe living conditions for tenants; and
  • Streamlining approval processes and environmental review as outlined in the “Get Stuff Built” plan.

Mayor Adams will also continue to work with federal partners to secure financial support regulatory changes. This includes working towards an increase in the value of tax credits and tax-exempt bonds and reducing the “50-Percent Test” to stretch federal housing dollars further.

“Cutting red tape and reducing unnecessary bureaucratic obstacles will not only get needed housing and projects built faster but will also spur significant economic growth across the five boroughs,” said New York City Economic Development Corporation President and CEO Andrew Kimball. “Mayor Adams is truly the ‘Get Stuff Done’ mayor, and the ‘Get Stuff Built’ report outlines a critical path forward to address needed reforms in our development and construction process. Thank you to the report’s co-chairs — Deputy Mayor Maria Torres-Springer, Chief Housing Officer Jessica Katz, and Chief Efficiency Officer Melanie La Rocca — for leading the way, and a big thank you to the entire BLAST task force, especially executive director Rob Holbrook, for their dedication and help to bring this report to life.”

“This is an all-hands-on-deck moment,” said DCP Director and City Planning Commission Chair Dan Garodnick. “By cutting down on red tape, speeding up housing approvals, and advancing significant citywide and neighborhood plans, we will enable a quantum leap in the creation of new homes throughout the city. This has to be our highest priority.”

“New York City has been in a housing emergency for decades. The time has come to act boldly, build more housing, and alleviate the pressure and stress all New Yorkers feel,” said HPD Commissioner Adolfo Carrión Jr. “Thanks to the leadership of Mayor Adams, we are rethinking old processes that obstruct our efforts to build the housing this city so desperately needs. Our agency is committed to continuing to streamline services to deliver on behalf of New Yorkers.”

“This interagency approach to streamlining the construction process in our city is an important step towards tackling the housing crisis,” said Acting DOB Commissioner Kazimir Vilenchik, P.E. “I would like to commend the entire BLAST task force on their willingness to discuss breaking down bureaucratic barriers between agencies and implementing new and more efficient workflows in the name of good government.”

“Housing and safety are what every New Yorkers deserves, and they are essential to the prosperity of our city,” said FDNY Commissioner Laura Kavanagh. “The department is proud to work with our fellow agencies to develop more efficient processes for the creation of housing and greater economic growth, while not compromising safety.”

“The 111 reforms recommended by the task force will cut red tape, speed environmental reviews, and simplify building permitting all while preserving the health and safety of New York City’s environment and residents,” said Chief Climate Officer and New York City Department of Environmental Protection Rohit Aggarwala. “From digitizing and streamlining sewer applications and inspections, to updating air and noise environmental analyses based on advances in data and technology, to expediting the purchase of land to create nature-based ways to mitigate flooding, these new initiatives will help us be more efficient environmental stewards.”

“These concrete actions will chart an easier path to energy efficiency in buildings, ensure that traffic impact is a key factor in project design, and help us create much-needed housing — an essential component of responding to climate change,” said Mayor’s Office of Climate and Environmental Justice Executive Director Kizzy Charles-Guzman. “I am proud that the Adams administration has taken these steps toward reducing emissions and creating a cleaner and more efficient New York.”

“The Adams administration’s continued efforts to cut red tape and improve the way government delivers for New Yorkers will benefit this city for years to come,” said Chief Technology Officer Matthew Fraser. “I applaud Deputy Mayor Torres-Springer, Chief Efficiency Officer La Rocca, and Chief Housing Officer Katz for their leadership on the BLAST task force and for producing this thoughtful, action-oriented roadmap that will support growth across New York City.”

“Small businesses are the economic engines that power our city forward and need clear government guidance to start, operate, grow,” said New York City Department of Small Business Services Commissioner Kevin D. Kim. “The work of the BLAST task force is yet another clear example that this administration is prioritizing the cutting of red tape to help create more housing, prosperous businesses, and opportunities for workers.”

“The BLAST task force report offers a much-needed view on how to streamline processes, while also increasing transparency and addressing housing disparities,” said New York City Housing Authority Interim CEO Lisa Bova-Hiatt. “We are excited to lend our voices to this vital interagency initiative and look forward to seeing how the recommendations that come out of this program can be implemented across our portfolio and serve to improve the quality of life for our residents.”

“We play a critical role in assessing open space and tree impacts from new developments. As such, we were happy to participate in the BLAST task force,” said New York City Department of Parks and Recreation Commissioner Sue Donoghue. “We welcome the opportunity to improve efficiencies, flow of information, and interagency cooperation, which all support economic development and enhance our park system and millions of trees under our jurisdiction.”

“I applaud Mayor Adams, Deputy Mayor Maria Torres-Springer, Chief Housing Officer Jessica Katz, and Chief Efficiency Officer Melanie LaRocca for taking on this important initiative. LPC joined a dozen agencies to develop actionable steps it can take to cut red tape in the building process,” said Landmarks Preservation Commission (LPC) Chair Sarah Carroll. “LPC’s initiatives include streamlining our rules to allow for more efficient permitting, eliminating some interagency handoffs, and creating of new digital tools that help applicants. These measures will ensure that our landmarks and historic districts continue to support the economy and vitality of the city.”

“The Public Design Commission has adopted a resolution regarding delegation of certain minor projects to the executive director. By shortening our review cycle from a month to two weeks, the delegation has saved our applicants’ time and helped move important building system projects forward faster,” said New York City Public Design Commission (PDC) Executive Director Sreoshy Banerjea. “This will result in additional time savings and expediting overall project schedules, including filing at DOB earlier, shortening lead times for purchasing, and reducing delays during construction. It’s paramount that we center design excellence while getting things done.”

“Though a wide variety of factors have contributed to our affordable housing crisis, it is clear that it takes far too long to build in the city, and the delay is driving up costs and contributing to the lack of units,” said Jolie Milstein, president and CEO, New York State Association for Affordable Housing. “What the mayor is proposing will allow us to build more and build faster, which will drive down costs for builders and renters alike.”

“We are in the grip of a housing crisis in New York that will not remedy itself. Our recent ‘Construction Outlook’ report shows we are hundreds of thousands of units behind where we should be,” said Carlo A. Scissura, president and CEO, New York Building Congress. “We must build faster. We must build better, safer, bolder, stronger — and we must build together. We applaud Mayor Adams and his administration for their bold actions to speed up processes, cut red tape, and coordinate agencies. Our members stand ready to build across the city, in all boroughs, and there can be no such thing as ‘not on my block’ in a ‘City of Yes.’ Let’s get stuff done, together.”

“The mayor’s announcement includes an exciting package of policies that, if implemented, would be significant and necessary steps in the right direction toward addressing our housing crisis,” said Annemarie Gray, executive director, Open New York. “We look forward to working with the mayor, the City Council, the governor, and the State Legislature on enacting many of these pro-housing reforms in 2023.”

“The BLAST task force undertook the first comprehensive review of the bureaucratic procedures that slow the pace and add to the cost of development in the city,” said Kathryn Wylde, president and CEO, Partnership for New York City. “It came up with recommendations that will enhance safety as well as make the approval process more efficient. Congratulations to the mayor on yet another initiative that will make it easier to ‘Get Stuff Done’ in our city.”

“This is an impressive and much-needed effort to tackle New York’s housing crisis,” said Jonathan Bowles, executive director, Center for an Urban Future. “It will help make New York more affordable and reduce homelessness, but it is also key to keeping the city’s economy competitive in this age of remote work.”

"New York City’s dire housing crisis requires bold, creative action on all fronts,” said Sarah Watson, interim executive director, Citizens Housing & Planning Council. “We have to be a ‘City of Yes’ to make any headway on our housing shortage. We laud Mayor Adams for this multifaceted plan to accelerate the expansion of our housing options. We desperately need these reforms to our inefficient development processes to speed up housing production, and new neighborhood and citywide rezonings that allow our city to grow sustainably. We are very excited about the upcoming state legislative session that promises to prioritize housing, and we look forward to continuing to work closely with the administration to provide analysis and recommendations to actualize our shared vision of a New York City that is accessible and stable for all.”

Wednesday, December 7, 2022

Russian Intelligence Agent Charged with Fraud and Money Laundering in Connection with Purchase and Use of Luxury Beverly Hills Real Estate

 

Defendant Was Sanctioned in 2020 for Attempting to Interfere in the U.S. Presidential Election

 A seven-count indictment was unsealed today in federal court in Brooklyn charging Andrii Derkach with conspiracy to violate the International Emergency Economic Powers Acts (IEEPA), bank fraud conspiracy, money laundering conspiracy and four counts of money laundering in connection with the purchase and maintenance of two condominiums in Beverly Hills, California.  Derkach allegedly purchased the properties in violation of new U.S. sanctions imposed earlier this year and concealed his interest in the transactions. Derkach remains at large.

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Andrew Adams, Director of Task Force Kleptocapture announced the charges.

“The conduct of this Kremlin asset, who was sanctioned for trying to poison our democracy, has shown he is ready, willing, and capable of exploiting banking system in order to advance his illicit goals.  The U.S. will not be a safe haven where criminals, oligarchs or sanctioned entities can hide their ill-gotten gains or influence our elections,” stated United States Attorney Peace.  “This Office, together with our law enforcement partners, will use every tool available to prosecute those who evade sanctions and abuse the U.S. financial system, and we will identify, freeze and seize criminal proceeds whenever and wherever possible.”

“Kremlin-backed Ukrainian politician and oligarch, Andrii Derkach, was sanctioned for his efforts to influence the 2020 U.S. Presidential election on behalf of the Russian Intelligence Services. While participating in a scripted Russian disinformation campaign seeking to undermine U.S. institutions, Derkach simultaneously conspired to fraudulently benefit from a Western lifestyle for himself and his family in the United States. The FBI will continue to use all the tools at its disposal to identify Russian intelligence operations, disrupt Russian information laundering networks, and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of U.S elections and evade U.S. sanctions,” stated Assistant Director-in-Charge Driscoll. 

“Attempting to enjoy the safety, security, and freedoms of an open society, while secretly working to undermine that very society, is a hypocrisy that runs through every sanctions charge announced by the Task Force.  It is a particularly egregious hypocrisy in the case of Andrii Derkach – sanctioned for attempts to undermine American democracy, while corruptly seeking to benefit from its protections,” said Task Force KleptoCapture Director Andrew C. Adams.

Since 1998, except for a hiatus from November 2006 to November 2007, Derkach was a member of the Verkhovna Rada (Rada), Ukraine’s Parliament.  During his time in the Rada, Derkach was a member of the Party of Regions, a pro-Russia political party, which was the ruling party in Ukraine from 2010 until the 2014 Ukrainian Euromaidan Revolution.  On September 10, 2020 the United States Department of Treasury’s Office of Foreign Asset Control (OFAC) sanctioned Derkach and several companies he controlled pursuant to Executive Order 13848, calling him “an active Russian agent for over a decade, maintaining close connections with the Russian Intelligence Services” who “waged a covert influence campaign” to undermine the 2020 U.S. presidential election.

As alleged in the indictment, beginning in 2013, Derkach and a co-conspirator devised a scheme to purchase and maintain two luxury condominiums in Beverly Hills while concealing his interest in the transactions from U.S. financial institutions.  Specifically, Derkach used the services of a corporate nominee, a multi-tiered structure of California-based shell companies, and numerous U.S. bank and brokerage accounts. Using this framework, Derkach wired approximately $3.92 million to the nominee from overseas accounts in Latvia and Switzerland belonging to companies registered in the British Virgin Islands.  The money was then used to pay $3.2 million in cash in the name of a corporate entity set up by the nominee, with Derkach having no visible affiliation with the purchase.  The remaining $800,000 was invested in a brokerage account maintained by the nominee for Derkach’s benefit and used to pay expenses on the condominiums, including taxes, homeowners’ fees, and utilities.  Because Derkach had fraudulently obscured details about his identity and involvement from the financial institutions holding the aforementioned bank and brokerage accounts, he prevented those financial institutions from moving funds into blocked accounts, and instead caused those financial institutions to engage in transactions involving blocked funds and transactions for the benefit of the condominiums, which were blocked property pursuant to the sanctions.

A parallel civil forfeiture action has been initiated to seize the condominiums and the remaining funds in the U.S. brokerage and bank accounts that Derkach controls. 

If convicted, Derkach faces a maximum of 30 years’ imprisonment.  The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.

The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine.  Announced by Attorney General Merrick Garland on March 2, 2022 under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

Bronx Metro-North Info Session - Dec 13, 6:30 pm - 8 pm Videoconference or phone

 

Dec 13, 6:30 pm - 8 pm

Videoconference or phone

Learn about the plan to bring to life the community's vision for new Metro-North stations coming to the East Bronx. 

The plan comprises community-driven recommendations to ensure the stations coming to Morris Park and Parkchester/Van Nest will best serve their neighborhoods, including with:

  • Workforce development programs
  • Investments in public space
  • Land use changes to support much-needed housing

Join this info session to learn more and share your feedback.

Visit the Bronx Metro-North webpage to see a summary of past planning work.

Planning conversations for Co-op City and Hunts Point, where Metro-North stations are also coming, will continue in spring of 2023. 

How to participate:

To join via videoconference, use this link: Info Session.

To join by calling from any phone, dial any of the following numbers:​

  • (877) 853-5247 (Toll-free)
  • (888) 788-0099 (Toll-free)
  • (213) 338-8477 (Toll)
  • (253) 215-8782 (Toll)

Enter the following information when prompted:

  • Meeting ID #832 8069 7434
  • Passcode: 1

If you have technical difficulties during the event, please dial either of the above numbers and enter the following information when prompted:

  • Meeting ID #: 863 504 3104
  • Passcode: 1

Accessibility:
Spanish language and ASL interpretation will be available. 

Please email reasonable accommodations or foreign language request to AccessibilityInfo@planning.nyc.gov by December 2, 2022. If you have any questions, please submit them to: bmns@planning.nyc.gov.

Pelham Parkway Hosts Chanukah Concert and Party

 

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Its the event of the year. On Sunday Dec. 18 starting  at 2:00 pm. A Chanukah Party and concert featuring world famous Eitan Katz and his band.There will be food, donuts, children's programs and dreidel's, dreidel's and what else? How about loads of fun!! You  just  have  to be there!
The Bronx Jewish Center @ Pelham Parkway  is located at 900 Pelham Parkway South Bx NY 10462.

Please RSVP to: rabbi@bronxjewishcenter.org OR phone 718-812-1701. You  can also visit our website at Bronxjewishcenter.org

Governor Hochul Signs Legislation to Protect Nursing Home Residents from Infection and Keep Loved Ones Informed

 

Legislation (S.1785A/A.6052) Requires Nursing Homes to Give Residents, Authorized Family Members and Guardians Timely Notice When an Infection is Detected

Ensures Facilities Have a Plan to Accommodate Exposed or Infected Residents to Stop the Infection from Spreading to Others


 Governor Kathy Hochul today signed legislation that will require residential health care facilities to swiftly update residents as well as their family members and guardians when an infection is detected within the facility. It also requires nursing homes to have a plan in place to accommodate exposed or infected residents to stop the spread of the infection.

"New Yorkers living in nursing homes deserve the highest quality of care, and their families deserve to know that their loved ones are safe," Governor Hochul said. "With this legislation, we will ensure every facility is prepared to protect residents from exposure after an infection is detected, while also improving communication to make sure residents and family members are notified of the situation in a timely manner. This is a critical step to ensure nursing homes are taking the right measures to protect the most vulnerable New Yorkers."

Legislation (S.1785A/A.6052) will expand the existing pandemic emergency plan to improve communication by requiring nursing homes to inform residents and their loved ones of an infection. It will also require facilities to prepare a plan or procedure for accommodations for residents during an infectious disease outbreak, which will help ensure every nursing home is ready and able to effectively place residents in the event of an infection for their safety and the safety of others.

This legislation builds on Governor Hochul's continued efforts to protect residents of long-term care facilities. In December 2021, the Governor signed a package of four pieces of legislation to support long-term care facilities and provide assistance to the system. The legislation directed the Commissioner of Health to implement an infection inspection audit and checklist on nursing homes, enacted a series of reforms to the State Long-Term Care Ombudsman Program and related programs to increase accessibility for residents of nursing homes and residential care facilities, established the "reimagining long-term care task force" to study the state of long-term care services in the state, and directed the Commissioner of Economic Development, in consultation with the Commissioners of Health, Labor and the Office of Children and Family Services to study, develop, and implement a long-term strategy to support the growth of the caregiving industry in New York State. Governor Hochul has also supported investments in the Long-Term Care Ombudsman program, reimbursement for nursing homes, additional funding for staffing as well as capital funding for nursing home transformation, including the promotion of the nursing home green house model, to promote high-quality long-term care for all.

Seven Chilton County Residents Sentenced for Felony Violations of the Animal Welfare Act, Ending One of the Largest Cockfighting Operations in the Country

 

A seventh and final Verbena, Alabama, resident was sentenced yesterday for violating the Animal Welfare Act’s prohibition against animal fighting ventures in connection with an expansive cockfighting operation. This marks the end of a series of sentencings in which the Court held four Alabama residents accountable for their roles in operating a large-scale cockfighting arena (cockfighting pit) and massive fighting-bird breeding businesses, and for conspiring to violate the Animal Welfare Act and to operate an illegal gambling business. The Court determined that the illegal conduct involved animal fighting on an “exceptional scale” and imposed sentences which reflect the unusual cruelty of a business model that relies on the death or injury of thousands of birds for entertainment and profit.

The court issued the following sentences for four defendants who pleaded guilty to multiple felonies on August 5:

  • On Dec. 6, George William “Billy” Easterling, 56, was sentenced to 22 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
  • On Nov. 30, Brent Colon Easterling, 38, was sentenced to 24 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the L&L Gamefarm fighting-bird breeding operation.
  • On Nov. 30, William “Tyler” Easterling, 30, was sentenced to 20 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
  • On Nov. 30, William Colon “Jim” Easterling, 77, was sentenced to two years of home detention — rather than incarceration which the court determined would be “extremely detrimental” to his declining health — and a fine of $8,000 for violating the Animal Welfare Act’s prohibition against animal fighting ventures and for conspiring with others to violate the Act and to operate an illegal gambling business in connection with the cockfighting pit.

 Three other residents of Verbena, Alabama, who are also members of the Easterling family, pleaded guilty on June 3 to conspiring to violate the Animal Welfare Act or to a substantive violation of the Act.  On Oct.13, the following individuals were sentenced:

  • Kassi Brook Easterling, 39, was sentenced to two years of probation, including six months of home detention, for conspiring with others to violate the Animal Welfare Act’s prohibition against animal fighting ventures, including the sale of cockfighting knives, and for her involvement with the L&L Gamefarm fighting-bird breeding operation. 
  • Amber Nicole Easterling, 25, was sentenced to one year of probation for her involvement with the cockfighting pit. 
  • Thomas Glyn “Junior” Williams, 34, was sentenced to one year of probation for his involvement with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.

“These sentences demonstrate the importance of enforcing the Animal Welfare Act to ensure the humane treatment of animals and prohibit cruel practices such as cockfighting,” said United States Attorney Sandra Stewart for the Middle District of Alabama.

“As these sentences vividly show, the Department of Justice will continue to hold accountable those who encourage and profit from forcing animals to fight each other for human entertainment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. 

“The U.S. Department of Agriculture Office of Inspector General (USDA-OIG) actively investigates allegations of animal abuse and any associated gambling activities,” said Special Agent in Charge Jason Williams of the USDA-OIG. “This agency has made animal fighting a high priority to demonstrate that these blatant acts of cruelty to animals will not be tolerated. We would like to thank the Justice Department for aggressively prosecuting perpetrators of animal fighting and our federal, state, and local law enforcement partners for assisting in enforcing these federal statutes.”

According to court documents and information in the public record, from at least January 2018 through June 11, 2021, illegal cockfighting events were held at the cockfighting pit, which consisted of an arena with stadium-style seating for approximately 150 people which faced several cockfighting pits and several nearby outbuildings including a merchandise stand. The illegal derbies involved a series of cockfights in which at least two or more roosters fought each other, each with a sharp blade attached to its leg. These fights were conducted for the purpose of sport, wagering, and entertainment. Participants were charged expensive fees to enter their birds in the derbies – such as $1,500 to fight seven roosters – and told what weapons to strap to the roosters’ legs, such as short knives, long knives, or spurs. Consistent with his plea agreement, William Colon Easterling dismantled and destroyed the entire cockfighting arena and associated outbuildings.

Near the cockfighting pit, members of the Easterling family ran two large fighting-bird breeding businesses known as Swift Creek Gamefarm and L&L Gamefarm at which thousands of birds were bred and sold to be used in fights between two or more birds for the purposes of sport, wagering, or entertainment. 

Combined, the seven convicted members of the Easterling family helped run one of the largest cockfighting enterprises in the country. With the help of six of his family members, Jim Easterling owned and operated the cockfighting pit for many years, even enlisting his granddaughter, Amber Easterling, to sell weapons used to kill birds in cockfights at the merchandise stand. Brent Easterling was one of the most widely known fighting-bird breeders in the country, running L&L Gamefarm with his wife Kassi Easterling and charging $1,500 for three chickens because they were birds of select fighting pedigrees. Brent Easterling also promoted the cockfights at his father’s, Jim, cockfighting pit. Tyler Easterling helped his father, Billy Easterling, operate a vast fighting-bird breeding business known as Swift Creek Gamefarm where they employed their in-law, Junior Williams, and others to help maintain and ship fighting birds. Tyler Easterling also promoted several cockfights at his grandfather’s, Jim, cockfighting pit.

The USDA-OIG and Homeland Security Investigations investigated the case with assistance from the U.S. Postal Inspection Service. The Alabama Law Enforcement Agency and the Greenville County Sheriff’s Office in South Carolina provided invaluable assistance to federal law enforcement officers.