Governor Hochul Announces Start of Construction on 76 Unit Affordable Housing Development in Yonkers

The St. Clair Will Bring Affordable Homes and Commercial Space to Downtown Yonkers Near Metro North Train Station

Highly Energy-Efficient, All-Electric Building Awarded Part of State’s Clean Energy Initiative

 Governor Kathy Hochul today announced the start of construction on 76 affordable apartments and commercial space in downtown Yonkers as part of the State’s efforts to expand housing opportunities near MTA transit hubs. Known as the St. Clair, the development will be subject to leading environmental standards as part of the New York State Energy Research and Development Authority’s Clean Energy Initiative – a key component of the Governor’s clean energy agenda.

“The St. Clair is proof that we can work hand-in-hand with our local partners to create housing that is affordable, sustainable, and that connects New Yorkers to jobs, to schools, to doctors, and to the services they need to thrive,” Governor Hochul said. “Our ongoing investment in Yonkers’ resurgence is allowing more people to take advantage of all this city has to offer, and it underscores our commitment to transit-oriented, strategic housing growth that strengthens communities and helps combat climate change.”

The St. Clair is also part of Governor Hochul's $25 billion comprehensive Housing Plan that will create or preserve 100,000 affordable homes across New York, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes.

The development is a short walk to the MTA Metro North train station and the Westchester County Bee-Line Bus System, and will offer a fitness room, community room, and an outdoor roof deck.

The St. Clair was developed by MacQuesten Development, LLC. And will be affordable to households earning at or below 80 percent of the Area Median Income.

State financing for $60 million development includes $8.4 million in permanent tax-exempt bonds, $25.2 million in Federal and State Low-Income Housing Tax Credits and $10.6 million in subsidy from New York State Homes and Community Renewal. The construction fulfilled the requirements of the New York State Department of Environmental Conservation's successful Brownfield Cleanup Program, which is expected to result in $9.7 million in tax credits issued by the New York State Department of Tax and Finance. The city of Yonkers awarded $1.1 million in HOME funds and the Westchester County Department of Planning awarded $1.5 million in American Rescue Plan Act funds.

In addition, the all-electric building was awarded $418,000 from NYSERDA’s Clean Energy Initiative, which is putting New York on the path to meeting the Climate Leadership and Community Protection Act’s target of an 85 percent reduction in greenhouse gas emissions by 2050. The building includes renewable energy and energy efficient features such as all-electric appliances, including heat pumps for heating and cooling, weatherization to reduce heat loss, and low flow plumbing fixtures.

In the last five years, HCR has created or preserved 1,266 affordable homes in the city of Yonkers.

Permits Filed For 1682 Weeks Avenue In Concourse, The Bronx

 

Permits have been filed for a six-story residential building at 1682 Weeks Avenue in Concourse, The Bronx. Located between East 173rd and East 174th Streets, the interior lot is near the 174th-175th Streets subway station, serviced by the B and D trains. Klaudio Rroku of New Line Builders is listed as the owner behind the applications.

The proposed 56-foot-tall development will yield 9,621 square feet designated for residential space. The building will have 21 residences, most likely rentals based on the average unit scope of 458 square feet. The steel-based structure will also have a 30-foot-long rear yard.

Fred Geremia Architects & Planners is listed as the architect of record.

Demolition permits were filed in July for the two-story structure on the site. An estimated completion date has not been announced.

Affordable Housing Lottery Launches For 1073 Tiffany Street In Longwood, The Bronx

 

The affordable housing lottery has launched for 1073 Tiffany Street, a four-story residential building in Longwood, The Bronx. Designed by Node Architecture, Engineering, Consulting PC, the structure yields 430 residences. Available on NYC Housing Connect are 14 units for residents at 130 percent of the area median income (AMI), ranging in eligible income from $99,086 to $146,900.

Residences come with intercoms, hardwood floors, air conditioning, split unit heating and cooling, and name-brand kitchen countertops, appliances, and finishes. Amenities include security cameras, accessible entrance, and bike storage lockers. Tenants are responsible for electricity.

1073 Tiffany Street in Longwood, The Bronx via NYC Housing Connect

At 130 percent of the AMI, there are 13 studios with a monthly rent of $2,890 for incomes ranging from $99,086 to $146,900.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than October 13, 2023.

DEC and DOH Announce Free Technical Assistance to Protect Drinking Water Sources

 

Volunteer Communities Will Work with Technical Assistance Partners to Develop Programs That Proactively Protect Public Drinking Water Supplies

New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos and State Department of Health (DOH) Commissioner Dr. James McDonald today announced the availability of free technical assistance for municipalities to protect public drinking water supplies through the Drinking Water Source Protection Program (DWSP2). The multi-agency initiative, led by DEC and DOH in collaboration with the Departments of Agriculture and Markets (AGM) and State (DOS), empowers municipalities to take critical actions to improve and protect public water sources and the environment.

“The Drinking Water Source Protection Program empowers communities across New York to assess and protect sources of public drinking water, benefiting both public health and the environment,” said DEC Commissioner Basil Seggos. “DEC is committed to improving water quality and access to clean water for all New Yorkers by working with local communities to protect, manage, and conserve the State's groundwater and surface water supply sources for future generations.”

“We encourage all of New York’s public drinking water suppliers – large and small – to participate in the Drinking Water Source Protection Program for assistance in ensuring that one of their community’s most vital life resources is protected now and in the future,” said State Health Commissioner Dr. James McDonald. “Developing a drinking water source protection plan includes careful consideration of many complicated factors, which is why it is critically important that municipalities have the necessary technical support to safeguard the health of their residents.”

As part of DWSP2, up to 30 volunteer communities will work with technical assistance providers to develop and initiate implementation of each community's unique drinking water source protection program at no cost to the participating municipalities. DWSP2 is open to all community public drinking water supplies in New York regardless of size or water source.

The program is designed to build off previous work, help align priorities, and fill gaps within a municipality’s current and future source water protection efforts.

Participating municipalities will receive assistance in assessing modern day vulnerabilities and engaging in preventative actions to protect drinking water sources from contamination, identifying effective actions to address potential contaminant sources, and implementing source water protection actions. The free technical assistance provided by the Drinking Water Source Protection Program helps take the complexity and guesswork out of developing a drinking source water protection plan.

Community public water suppliers are encouraged to apply for free technical assistance to develop and implement a Drinking Water Source Protection Program by visiting the DWSP2 website and completing an online application. The deadline to apply is Tuesday, November 14, 2023 at 4 p.m.

Municipalities participating in the Drinking Water Source Protection Program

• Promote public health and safety
• Support economic viability
• Enhance environmental protection and recreational opportunities
• Strengthen community partnerships and collaboration

Drinking water source protection plans provide municipalities with a road map to maintaining and protecting sources of drinking water. Each DWSP2 plan is tailored to the goals and concerns of a community and drinking water source to provide a holistic and comprehensive approach that builds off protection efforts a community already has in place.

The DWSP2 process provides updated source water maps, assessments of potential contaminant sources, and identifies effective methods to address potential contaminant sources.

The Drinking Water Source Protection Program has taken big strides protecting drinking water resources across New York State. Seventy-four municipalities, totaling 46 plans, have worked towards creating action-oriented, community-driven DWSP2 plans to protect their drinking water sources. Sixteen of these communities have completed the plan development process and subsequently received State Acceptance, moving forward on implementing their plans.

While there are no out-of-pocket costs to communities for the development of a DWSP2 plan, municipalities are expected to commit time and local knowledge to work with a free technical assistance provider who will guide the DWSP2 plan development. Selected municipalities with a community public water supply must be prepared to work with a technical assistance provider throughout the DWSP2 process and commit to implement their programs.

The purpose of DWSP2 is to prepare municipalities for plan implementation to provide long-term source water protection. DWSP2 helps with implementation by identifying feasible actions and funding sources to cover potential project costs. The plan will act as a road map that includes:

• Methods to address targeted potential contaminant sources
• Cost analysis for all identified implementation projects
• Potential funding sources that can aid with project costs
• Project partners that can support implementation
• Project timing and schedule

Register now for DWSP2’s upcoming webinar on Wednesday, October 25, 2023 at 11 a.m. to learn more about program benefits and how to apply for free technical assistance to protect your community’s source of drinking water.

To apply, visit the DWSP2 website and complete an online application. The deadline to apply is Tuesday, November 14, 2023 at 4 p.m.

Communities interested in the Drinking Water Source Protection Program can learn more on DEC's website or contact source.water@dec.ny.gov.

New York's Commitment to Clean Water

New York continues to increase its investments in clean water infrastructure. Most recently, the 2023-24 Enacted Budget includes the $500 million in clean water funding proposed by Governor Hochul in January and brings New York's total clean water infrastructure investment to $5 billion since 2017. To leverage these investments and ensure ongoing coordination with local governments, the Governor created Community Assistance Teams to provide proactive outreach to small, rural, and disadvantaged communities to help them access financial assistance to address their clean water infrastructure needs. The initiative was launched earlier this year and outreach meetings are underway. For more information, go to EFC's website.

In addition, voters approved the $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act in November 2022, advancing additional, historic levels of funding to update aging water infrastructure and protect water quality, strengthen communities' ability to withstand severe storms and flooding, reduce air pollution and lower climate-altering emissions, restore habitats, preserve outdoor spaces and local farms, and ensure equity by investing at least 35 percent, with a goal of 40 percent, of resources in disadvantaged communities.

This summer, following a public comment period for draft eligibility guidelines for water infrastructure funding, Governor Hochul announced the availability of the first round of Bond Act monies with $200 million combined with other State water infrastructure funding for a total of $425 million. The application deadline closed after a two-week extension to allow more communities hit hard by flooding in July to apply. Applications are now being reviewed. Other Bond Act programs and funding opportunities will continue, as well as ongoing opportunities for state and federal funding that are offered regularly.

New Yorkers interested in learning more about the Bond Act can find general information about the $4.2 billion landmark initiative at the Bond Act website. The site includes recordings of the two virtual sessions, general information about existing state and federal funding programs that complement the Bond Act objectives and could help leverage Bond Act funds, and a link to the project ideas survey, among other information. The site will continue to be updated and interested individuals can also join a mailing list for updates at BondAct@dec.ny.gov.

Statement from Speaker Adrienne Adams on the Recommendation that No Disciplinary Action be Taken Against NYPD Officers in Killing of Kawaski Trawick

 

“I am deeply disappointed in Deputy Commissioner Maldonado’s recommendation and the rationale behind it. For several years, the Trawick family has waited for a shred of accountability for Kawaski’s killing. After delays and impediments by the NYPD to provide key evidence, those delays now being used as the reason to recommend no discipline is unjustifiable. Commissioner Caban can and must hold these officers accountable for misconduct – it’s what Kawaski’s family, New Yorkers, and officers who have not engaged in misconduct deserve from the NYPD.”

Physician and Two Pharmacists Charged for $170M Fraud Scheme

 

A 13-count indictment was unsealed charging two pharmacists and a physician for their roles in a multimillion-dollar health care fraud, kickback, and money laundering scheme.

According to court documents, Shalondria Simpson, 45, of Houston, is a pharmacist who owned and operated two pharmacies in Houston: Advance Pharmacy (Advance) and TruCare Pharmacy (TruCare). Simpson’s twin sister, physician Lashondria Simpson-Camp, 45, of Allen, Texas, allegedly referred prescriptions to Advance and TruCare in exchange for illegal kickbacks and bribes. Shayla Bryant, 38, of Houston, was a pharmacist and Advance and TruCare’s business manager. 

Between 2016 and 2022, Simpson, Simpson-Camp, and Bryant allegedly conspired with others to submit false and fraudulent claims to the Department of Labor’s Office of Workers’ Compensation Program (DOL-OWCP), which administered workers’ compensation benefits on behalf of the Federal Employee’s Compensation Act (FECA), for high reimbursing drugs that were often medically unnecessary and induced by kickbacks and bribes. Further, Simpson, Simpson-Camp, Bryant, and others allegedly conspired to pay and receive these kickbacks. Simpson and Bryan allegedly paid illegal kickbacks and bribes, often through shell entities or in cash, directly to physicians like Simpson-Camp, a clinic owner, a medical assistant, and other marketers. In total, Simpson’s pharmacies allegedly submitted approximately $170 million in fraudulent claims to FECA through DOL-OWCP. 

To conceal the scheme and disguise its proceeds, Simpson also allegedly conspired to launder the proceeds of the criminal activity through financial transactions greater than $10,000. According to the indictment, after learning of the investigation, Simpson attempted to cover her tracks by converting criminal proceeds to cash, and transferring funds among over ten bank accounts and a cryptocurrency wallet. She also allegedly solicited others’ help in liquidating assets and concealing her ownership and control of those assets. 

The indictment charges Simpson, Simpson-Camp, and Bryant with one count of conspiracy to defraud the United States and pay and receive health care kickbacks and one count of conspiracy to commit health care fraud. Simpson is also charged with five counts of paying health care kickbacks, one of which also charges Bryant. The indictment further charges Simpson with conspiracy to launder monetary instruments and five counts of money laundering. If convicted, Simpson, Simpson-Camp, and Bryant each face a maximum penalty of five years in prison for conspiracy to defraud the United States and pay and receive health care kickbacks, and 10 years in prison for conspiracy to commit healthcare fraud. Simpson and Bryant each face a maximum penalty of 10 years in prison for each count of paying health care kickbacks. Simpson faces a maximum penalty of 20 years in prison for conspiracy to launder money instruments and 10 years for each count of money laundering.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG), Acting Special Agent in Charge Casey Howard of the Department of Labor Office of Inspector General (DOL-OIG), Acting Special Agent in Charge David L. Martinez of the FBI Houston Field Office, and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.

The USPS-OIG, DOL-OIG, FBI, and VA-OIG are investigating the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

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

Governor Hochul Announces Request for Proposals to Transform Manhattan’s Former Bayview Correctional Facility Into Affordable and Supportive Housing

Site RFP Requires Significant Commitments for Permanently Affordable and Supportive Housing and Prioritizes Services and Amenities for the Local Community

Project Aligns with Governor Hochul’s Executive Actions to Redevelop State-Owned Sites That Can Increase New York’s Housing Supply

View Request for Proposals Here, Due December 13 by 5 p.m. ET

 Governor Kathy Hochul today announced a request for proposals to redevelop the former Bayview Correctional Facility, located at 550 West 20th Street in West Chelsea, Manhattan into a primarily residential development providing supportive housing, affordable housing, and onsite community uses that will benefit area residents and reintegrate the structure into the surrounding neighborhood. Applicants can view the Request for Proposals document here and submit a proposal to Empire State Development by December 13, 2023 at 5:00 p.m. ET.

"By reimagining the Bayview facility as affordable housing, we are not only creating more housing options for New Yorkers – we are expanding the possibilities of what former prisons and other unused state properties can become,” Governor Hochul said. "New York’s future depends on increasing the state’s housing supply, and between the recommendations of the Prison Redevelopment Commission and executive actions I announced earlier this year, our state is taking leaps forward to repurpose these vacant facilities and leverage them as critical tools to address the housing crisis.”

The state-owned 100,000 square-foot site is an opportunity to aggressively advance Governor Hochul’s unprecedented efforts to increase the state’s housing supply, particularly in New York City. Built in 1931, the art deco brick masonry building became a state-run medium-security women’s correctional facility in 1974, that was eventually closed due to flooding sustained during Superstorm Sandy in 2012. Recognizing that the West Chelsea neighborhood has a critical shortage of affordable housing options, the redevelopment of Bayview will be a key catalyst for inclusive and sustainable urban development, provide much needed housing for New Yorkers who require services within a supportive living environment, and enhance neighborhood vibrancy and quality of life for residents in the surrounding area.

Empire State Development President, CEO and Commissioner Hope Knight said, "The Bayview Correctional Center's redevelopment offers a unique, forward-thinking opportunity to address New York’s long-term economic and housing priorities. Inspired by Governor Hochul’s unwavering commitment to enhance affordability in New York, this RFP aims to maximize the creation of both affordable and supportive housing, and address real needs expressed by the community.”

The primary development objectives for the Project are to provide affordable and supportive housing in partnership with New York State Homes and Community Renewal (HCR), to provide Short Term Transitional Housing in partnership with the New York State Office of Mental Health (OMH), and to improve the wellness and economic opportunities in the neighborhood. The RFP requires respondents to consider the site’s historic art-deco design and the neighborhood’s character and include an onsite community use facility that supports the needs of the surrounding neighborhood, both of which are consistent with Manhattan Community Board 4’s Bayview redevelopment plan.

Specifically, proposals should meet the following objectives:

• Benefit the West Chelsea neighborhood and surrounding communities including benefit to low- and moderate-income individuals and families and chronically homeless populations.
• Provide permanent low-income affordable housing and at least 60 units of supportive housing targeting families and individuals who are both homeless and who are identified as having unmet housing needs, as specified in the RFP.
• Provide community facility use.
• Provide for adaptive reuse of the historic building and features to the extent feasible.
• Provide in-kind replacement of the historic façade to the extent feasible; if determined not feasible, provide replacement with compatible substitute material, as determined in consultation with New York State Parks, Recreation & Historic Preservation.
• Comply with all OPRHP requirements.
• Incorporate sustainable and resilient building practices in accordance with the goals of the New York State Climate Leadership and Community Protection Act.
• Ensure meaningful participation by Minority Owned Business Enterprises, Women Owned Business Enterprises and Service-Disabled Veteran-Owned-Business.
• Ensure at least 51 percent Nonprofit Ownership, as compliant with HCR’s SHOP Term Sheet.
• Ensure greater Nonprofit Ownership by incentivizing greater ownership percentages.

The redevelopment of Bayview Correctional Facility complements Governor Hochul’s comprehensive agenda to address New York’s housing crisis. In July 2023, Governor Hochul announced a package of executive actions to promote housing growth across the state, including a directive calling on New York State agencies to review state-owned properties for potential housing opportunities. As part of the FY 2024 Budget, the Governor secured a $391 million investment in rental assistance to expand New York’s Emergency Rental Assistance Program, a $50 million investment for tenant legal services, and additional funding to expand the Tenant Protection Unit. Governor Hochul also secured a 5-year, $25 billion Housing Plan to build 100,000 affordable homes as part of the FY 2023 Budget.

This project also continues Governor Hochul's efforts to reimagine closed prisons for innovative redevelopment opportunities across New York State. In recent months, Governor has announced requests for proposals to redevelop two former correctional facilities: Lincoln Correctional Facility in Harlem and Downstate Correctional Facility in Fishkill. In December 2022, Governor Hochul released the New York Prison Redevelopment Commission recommendations that details analyses of 12 closed prisons and considers redevelopment opportunities for each site to help them better serve the State's economic needs.

Co-Founder Of Global Multimillion-Dollar Cryptocurrency Ponzi Scheme “AirBit Club” Sentenced To 12 Years In Prison

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced  that PABLO RENATO RODRIGUEZ, the co-founder of AirBit Club with GUTEMBERG DOS SANTOS, was sentenced to 12 years in prison for orchestrating the massive global AirBit Club pyramid scheme.  RODRIGUEZ and his co-conspirators deceived individuals into investing in AirBit Club, a purported cryptocurrency mining and trading company, and executed a sophisticated money laundering operation to hide their illegal profits pilfered from AirBit Club. RODRIGUEZ’s co-defendants, DOS SANTOS, SCOTT HUGHES, CECILIA MILLAN, and KARINA CHAIREZ have pled guilty and are awaiting sentencing. RODRIGUEZ and his co-defendants collectively have been ordered to forfeit their fraudulent proceeds of AirBit Club, which include seized or restrained assets consisting of U.S. currency, Bitcoin, and real estate currently valued at approximately $100 million.  U.S. District Judge George B. Daniels imposed today’s sentence.

U.S. Attorney Damian Williams said: “Rodriguez co-founded and led an international multimillion-dollar pyramid scheme that preyed on mostly unsophisticated investors with false promises that their money was being invested in cryptocurrency trading and mining.  Instead of investing on behalf of investors, Rodriguez hid victims’ money in a complex laundering scheme using Bitcoin, an attorney trust account, and international front and shell companies and used victims’ money to line his own pockets.  Rodriguez is one of many recent examples of individuals exploiting cryptocurrency to commit fraud, and today’s sentence should deter anyone who may be tempted to defraud others with false promises of cryptocurrency investments.”   

According to public court filings and statements made in Court:

RODRIGUEZ and DOS SANTOS co-founded AirBit Club in 2015.  They coordinated a scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the false promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”).  AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN and CHAIREZ, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry.  Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.

RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and CHAIREZ traveled throughout the United States and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships.  In furtherance of the AirBit Club Scheme, the Victims were fraudulently induced to buy memberships in cash, including in the Southern District of New York.  Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”).  While Victims saw “profits” accumulate on their Online Portal, those representations were false; no Bitcoin mining or trading on behalf of Victims in fact took place.  Instead, RODRIGUEZ and his co-conspirators enriched themselves and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims. 

In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all.  In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the AirBit Club Terms and Conditions, due to the economic and financial crisis caused by (COVID-19).”  This excuse regarding the COVID-19 pandemic was false.

RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”).  The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds.  Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds.  Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, CHAIREZ, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme. 

Before AirBit Club, RODRIGUEZ and DOS SANTOS were sued by the Securities and Exchange Commission (“SEC”) for perpetrating another pyramid investment scheme known as Vizinova and paid $1.7 million in disgorgement and fines. HUGHES, an attorney licensed to practice law in California, represented RODRIGUEZ and DOS SANTOS in the Vizinova SEC action.  HUGHES then aided RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet. 

RODRIGUEZ, 40, of Irvine, California, was also sentenced to three years of supervised release.  RODRIGUEZ was further ordered to pay a forfeiture of $65 million and to forfeit various items of property, including: (i) $999,936.22 formerly held in escrow by Insured International Aircraft Title Service LLC for the Gulfstream Jet with Tail Number N370Z and Serial Number 2082; (ii) 1,322.98963846 in BTC seized from various Bitcoin wallets; (iii) $896,483.00 in United States currency seized from RODRIGUEZ’s California residence; (iv) RODRIGUEZ’s residence located at 117 Amber Sky in the City of Irvine, California 92618; (v) various watches and jewelry seized from RODRIGUEZ’s California residence; and (vi) 2,499.997 in BTC seized from various Bitcoin wallets.

DOS SANTOS, 48, of Panama City, Panama, MILLAN, 41, of Greensboro, North Carolina, CHAIREZ, 47, of Modesto, California, and HUGHES, 47, of Newport Beach, California, have pled guilty to charges including wire fraud conspiracy, which carries a maximum potential sentence of 20 years in prison; money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; and bank fraud conspiracy, which carries a maximum potential sentence of 30 years in prison.  MILLAN, CHAIREZ, and HUGHES are scheduled to be sentenced on October 3, 2023.  DOS SANTOS is scheduled to be sentenced on October 4, 2023.  

Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force.  Mr. Williams further thanked the New York Waterfront Commission for its assistance in the forfeiture process and the attorneys and investigators at the SEC whose expertise and diligence were integral to the development of this investigation.

If you believe you are a victim of the AirBit Club fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here.