Sunday, April 22, 2018

Comptroller Stringer Releases Alarming Analysis and Rider Survey of Select Bus Service Showing Poor Bus Lane Enforcement, Slow Speeds, and Unreliable Service


Over one-third of SBS riders dissatisfied with slow and unreliable service, grading SBS a “C” or below
SBS program shows minimal improvement on glacial local bus routes, and poor on-time performance rates
An analysis of bus lane and bus stop violations identified 17,309 individual vehicles with 5+ infractions in the last 18 months alone
New York City Comptroller Scott M. Stringer released a disturbing analysis showing that the City consistently fails to enforce bus lanes, which has led to persistently slow and unreliable SBS routes and contributed to significant rider dissatisfaction with service, according to a new report and survey of SBS riders. Despite the intent of Select Bus Service to offer efficient and modernized bus routes, the Comptroller’s analysis found SBS upgrades barely improve on local bus service with average speeds only slightly faster than local routes (8.9 m.p.h. versus 7.4 m.p.h.) and on-time performance identical to local routes – a paltry 62 percent. As a result, SBS ridership remains flat and the Comptroller’s SBS rider survey exposes how widespread deficiencies leave riders frustrated. Comptroller Stringer’s survey found that nearly forty percent of riders graded SBS service a “C” or worse.
“Select Bus Service was a first step toward modernizing the city’s bus system. But the City and the MTA are failing those who depend on its service. New Yorkers deserve fast, frequent, and reliable public transit, and for that to happen, the status quo must change,” said New York City Comptroller Scott M. Stringer. “If we’re going to build a real and rapid bus transit system in New York City, we need to do it right. No more half measures and cutting corners. Right now, service is unacceptable, we need to do better – and our survey shows riders agree.”
SBS Performance No Better Than Local Bus Routes
Select Bus Service was first introduced to New York City in 2008 to increase the speed, reliability, and appeal of bus service through the implementation of dedicated bus lanes, off-board fare collection, reduced stops, and Transit Signal Priority (technology which links approaching buses with traffic signals). Thus far, the City DOT and MTA have converted local routes to Select Bus Service along fifteen corridors throughout the five boroughs. Yet despite these upgrades, SBS routes perform little better than local routes and offer riders little in the way of relief.
Performance and Speed of SBS Routes Slow and Unreliable
SBS RouteAverage Speed (mph)On-Time Performance
B44 SBS8.365%
B46 SBS7.964%
BX6 SBS6.675%
BX12 SBS9.365%
BX41 SBS8.147%
M15 SBS6.438%
M23 SBS4.360%
M34A SBS4.367%
M34 SBS4.371%
M60 SBS10.337%
M79 SBS4.862%
M86 SBS4.974%
Q44 SBS8.754%
Q70 SBS11.362%
S79 SBS14.570%
SBS Average8.962%
Local Bus Average7.462%
The problem, according to the Comptroller’s analysis, is that many of the basic features of Select Bus Service are only available on a limited basis.
Modernization Efforts are Happening at a Snail’s Pace
  • As of July 2017, Transit Signal Priority (TSP) was installed along the entirety of only three SBS routes and on small sections of two more, leaving the DOT ill-prepared for its 2020 roadmap to expand TSP.
  • The City’s TSP expansion goals are not ambitious enough. Even if the City hits its 2020 target, it would still be three years and two-thirds behind the current progress of cities like London.
  • In addition, many design features that could help protect SBS routes from general traffic have been poorly implemented or insufficiently enforced. As a consequence, cars, cabs, and delivery vehicles frequently and unlawfully drive and park in “exclusive” lanes—forcing SBS buses to slow-down, merge back into traffic, and contend with an endless stream of obstructions.
Survey identifies significant service issues causing SBS delays and contributing to lackluster ridership
In April of 2018, the Comptroller’s Office polled 115 riders along 12 of the City’s 15 SBS corridors. Beyond the overall grades cited above, among those surveyed:
  • 70 percent flagged “traffic congestion on streets” as a key factor for SBS delays;
  • 28 percent credited “vehicles blocking the bus lane/stop,” and
  • 23 percent noted that “buses get stuck at multiple traffic lights.”
  • As a result of these widespread issues detracting from SBS performance, ridership has fallen on five of the nine SBS routes introduced prior to 2016.

SBS ridership

RouteYear LaunchedRidership the Year Prior to Launch2016
Ridership
Ridership Change
M34/M34A201118,09214,901-18%
M15201053,07344,797-16%
B44201339,66137,418-6%
M60201417,01316,751-2%
Q44201528,13927,712-2%
M86201523,84624,7464%
Bx12200842,21948,12414%
Bx41201318,94723,55824%
S7920128,96911,37827%
Total 249,959249,385-0.2%

Widespread Traffic Obstruction in Bus Lanes and Bus Stops
The Comptroller’s report provides an extensive analysis of bus lane and bus stop violations in the last 18 months. During that period:
  • Over 683,000 tickets were issued for bus lane and bus stop obstructions.
  • The analysis found that traffic officers issued 447,269 tickets for standing in a bus stop and 32,101 for standing in a bus lane in the last 18 months.
  • Traffic cameras, which are only authorized on a handful of routes, issued an additional 203,892 tickets for bus lane violations.
  • A full 28 percent of all violations were committed by vehicles with five or more infractions – proving the city is falling short at counteracting repeat offenders.
  • In only the last 18 months, a whopping 1,015 vehicles had between 25 and 49 bus stop and bus lane violations, 405 vehicles had between 50 and 99, and 185 received 100 tickets or more.
  • At the top of the list, one commercial vehicle had a stunning 870 violations in the last eighteen months, all for bus stop obstructions.

Bus Lane and Bus Stop Violations, Repeat Offenders

Number of ViolationsType of VehicleGrand Total
PassengerCommercialTaxi/FHVOther
5-94,3952,4025095217,827
10-241,6841,413712933,461
25-4938052411101,015
50-99125241336405
100+39132014185
Total 5+6,6234,71258497412,893
While delivery trucks and other commercial vehicles received only 20 percent of bus lane and bus stop tickets, they were the most likely to be high-frequency offenders. Among those vehicles that received 25 or more violations, 56 percent had commercial licenses.
To effectively improve traffic enforcement and ensure a modern bus system with faster and more reliable bus service, the Comptroller offered the following recommendations:
  • The City should dramatically improve bus stop and bus lane enforcement;
  • The State should authorize fixed-location traffic cameras along more routes in order to increase the enforcement of bus lanes;
  • The City DOT should upgrade the design of bus lanes;
  • The City DOT should expedite the implementation of Transit Signal Priority;
  • The City and MTA should take a more holistic approach to bus enhancements citywide. High-frequency peak and off-peak service, all-door boarding, transit signal priority, curb extensions, efficient stop-spacing, and well designed, enforced, and strategically-located bus lanes should be characteristic of every local bus route, not just select bus service.
Chronic Problems with SBS Fare Payment Machines
Apart from the report, Comptroller Stringer sent a letter to Darryl C. Irick, President of MTA Bus Operations. The letter focused on the functionality of SBS fare payment machines and Reduced-Fare MetroCards.
The Comptroller’s survey of SBS riders found that 40 percent experienced difficulty obtaining a ticket at a fare payment machine in the last year. Among these riders, 77 percent reported that their Reduced-Fare MetroCard had not worked on multiple occasions and over 15 percent reported issues on more than five occasions.
In order to better understand these mounting challenges and ensure future improvements, the Comptroller’s Office requested that the MTA provide the following information: 1) the maintenance protocol for SBS fare payment machines, 2) a full inventory of SBS fare payment machines and the length of time each was out-of-service in the last year, and 3) a list of customer complaints and general issues that have been identified regarding Reduced-Fare MetroCards.
To read the full report, click here.

STATEMENT FROM STATE SENATOR GUSTAVO RIVERA ON THE RALLY HELD BY NEW YORK COMMUNITY ORGANIZATIONS


Community organizations like Citizen Action of New York, Community Voices Heard Power, Make the Road Action, and New York Communities for Change provide critical services to communities across New York State and are tireless advocates for the most pressing issues. Their membership is made up of civically engaged New Yorkers who are dedicated to protecting their rights and making New York a more equitable state by fighting for adequate funding of our public education system, protecting immigrant rights, and securing access to quality and affordable healthcare and housing for all. The work of these organizations is not only crucial to the New Yorkers they serve and represent, but it is an essential component of our democracy. I am proud to stand with these commendable organizations and they can count on my staunch support as they continue to serve communities across our state.

Wave Hill Events May 4‒May 11


Sat, May 5    Excursion: Birding up the Hudson
Join Gabriel Willow for some bird-watching and scenic hiking along the Hudson River near Bear Mountain, one of the most majestic spots in the Hudson Valley. Stops include Perkins Tower, Iona Island, and Constitution Marsh. This trip includes extended periods of hiking along rocky trails with steep inclines: sturdy shoes required! $75; 10% discount to Wave Hill Members. Transportation provided. Lunch additional locally. Registration required, online at wavehill.org or onsite at the Perkins Visitor Center. 
MEET AT WAVE HILL’S FRONT GATE, 9AM–4PM

Sat, May 5    Family Art Project: Confetti Nests for Bluebirds
At the time of year when little nestlings appear, papermaker Randy Brozen returns to show us how to sculpt little bluebirds and vibrant nests from paper pulp and colorful, shredded confetti. Add raffia, pine needles and sticks and build a nest to keep little birds cozy. Make one bird or make a brood. Free, and admission to the grounds is free until noon
WAVE HILL HOUSE, 10AM‒1PM

Sat, May 5    In The Shop: La Petite Occasion Caramels
Stop by The Shop to meet instore vendor La Petite Occasion—delicious, small batch caramels and toffee crafted in the Hudson Valley. These delectable treats are made from the finest local ingredients: Kreimhild butter, Hudson Valley Fresh heavy cream, sea salt from Montauk Salt Co., apple cider and honey from Harvest Moon Orchards and bourbon from Berkshire Mountain Distillers. A perfect Mother’s Day gift, these traditional, quality caramels are just what your Mom will remember having as a kid!
PERKINS VISITOR CENTER, 10AM‒4PM

Sat, May 5    Garden Highlights Walk
Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.
MEET AT PERKINS VISITOR CENTER, 11AM

Sat, May 5    Gallery Tour
Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. Avifauna: Interplay of Birds + Habitatfeatures artworks that delve into the relationship between birds and their habitats—from the role birds play in propagating plants to changes in how natural and built environments affect migration patterns. Artists working in photography, video, artist books, wall painting, installation, drawing and sound include Tatiana Arocha, Tanya Chaly, Marna Chester, Nina Katchadourian, Paula McCartney, Jeff Mertz, Peter Morgan, Sarah Nicholls, James Proseck, Jenna Spevek and Fred Tomaselli. In the Sunroom Project Space, Adrienne Elise Tarver builds tactile plant sculptures that create an immersive, sheltering landscape. Free with admission to the grounds.
GLYNDOR GALLERY, 2PM

Sun, May 6    Yoga in the Garden
Through July, enjoy Sunday mornings in the garden as the setting for your yoga practice. Classes are led by certified Yoga Haven instructors. All levels welcome; please bring a mat and be on time. Indoor space is provided in case of rain. $25; 10% discount to Wave Hill Members. Registration online suggested, at wavehill.org. 
ON THE GROUNDS, 10–11AM

Sun, May 6    Family Art Project: Confetti Nests for Bluebirds
At the time of year when little nestlings appear, papermaker Randy Brozen returns to show us how to sculpt little bluebirds and vibrant nests from paper pulp and colorful, shredded confetti. Add raffia, pine needles and sticks and build a nest to keep little birds cozy. Make one bird or make a brood. Free with admission to the grounds. 
WAVE HILL HOUSE, 10AM‒1PM

Sun, May 6    Meet the Artist: Adrienne Elise Tarver
Join us at this artist talk in the Sunroom Project Space. Artist Adrienne Elise Tarver will discuss her installation Fiction: Origins of Belonging, with Curator of Visual Arts Eileen Jeng Lynch. Reversing the Sunroom’s traditional function of offering views of the outdoors from an interior shelter, Tarver builds tactile paintings hanging from the ceiling inside the gallery to evoke a tropical landscape and canopy. Tarver’s project examines the physicality of boundaries, as well as the invisible and imaginary ones that exist between us. Free with admission to the grounds.
GLYNDOR GALLERY, 2PM

Sun, May 6    Garden Highlights Walk
Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.
MEET AT PERKINS VISITOR CENTER, 2PM

Tue, May 8    Garden Highlights Walk
Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.
MEET AT PERKINS VISITOR CENTER, 11AM

Tue, May 8    Gallery Tour
Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. Avifauna: Interplay of Birds + Habitatfeatures artworks that delve into the relationship between birds and their habitats—from the role birds play in propagating plants to changes in how natural and built environments affect migration patterns. Artists working in photography, video, artist books, wall painting, installation, drawing and sound include Tatiana Arocha, Tanya Chaly, Marna Chester, Nina Katchadourian, Paula McCartney, Jeff Mertz, Peter Morgan, Sarah Nicholls, James Proseck, Jenna Spevek and Fred Tomaselli. In the Sunroom Project Space, Adrienne Elise Tarver builds tactile plant sculptures that create an immersive, sheltering landscape. Free with admission to the grounds.
GLYNDOR GALLERY, 2PM

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–5:30PM,  March 15–October 31. Closes 4:30PM, starting November 1.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

Saturday, April 21, 2018

13 Members And Associates Of A Transnational Criminal Organization Charged In Federal Court With Firearms And Narcotics Offenses


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), and Richard Conway, Chief of the Port Chester Police Department, announced the unsealing of an Indictment charging CRISTIAN FERNANDEZ, JOHNNY FERNANDEZ, JESUS GONZALEZ, JUAN HERNANDEZ, JUAN PABLO RENDON-INZUNZA, NICOLE MAISONET, GABRIEL ORTIZ, a/k/a “Bebe,” MARIA ROLON, EDGARDO RUIZ, a/k/a “Roro,” HECTOR SANCHEZ, a/k/a “Tito,” GILBERT TORRES, FABIOLA VEGA, and JOHN VIEIRA, a/k/a “John-John,” with firearms and narcotics offenses.  The defendants have been charged as a result of their membership and participation in a transnational criminal organization that trafficked in firearms and narcotics, including heroin and methamphetamine.  Nine defendants were arrested or taken into federal custody on these charges today in various locations throughout the United States, namely Maryland, Massachusetts, Connecticut, and New York.  ORTIZ, who is in custody on state charges in Rochester, New York, will be transferred to federal custody as soon as possible.  ROLON, GONZALEZ, and INZUNZA have not been arrested to date. 

Six of the defendants – CRISTIAN FERNANDEZ, JOHNNY FERNANDEZ, JUAN HERNANDEZ, GILBERT TORRES, FABIOLA VEGA, and JOHN VIEIRA – were arraigned before United States Magistrate Judge Lisa Margaret Smith in White Plains federal court.  Three other defendants –EDGARDO RUIZ, NICOLE MAISONET, and HECTOR SANCHEZ – will be presented in federal courts in Maryland and Massachusetts. 
U.S. Attorney Geoffrey S. Berman said:  “As alleged, these defendants operated a nationwide drug distribution network to push heroin and methamphetamine onto U.S. streets.  Thanks to the dedicated work of the FBI and Port Chester Police, these defendants are behind bars and face significant prison time for their alleged crimes.”
FBI Assistant Director William F. Sweeney Jr. said:  “The members of this criminal organization created a spider web of illegal drug sales, moving their drugs from south of the border and crisscrossing the states allegedly attempting covering their tracks.  These are the types of operations contributing to the deadly epidemic of overdoses in our country, indiscriminately killing people of all ages and races.  The FBI Westchester County Safe Streets Task Force and our law enforcement partners have created such a vital working relationship that we are having a significant impact in stopping the flow of illegal drugs at the source.” 
Port Chester Police Chief Richard Conway said:  “I'm very proud our Department’s role in this investigation, which is perhaps the largest scale operation we have ever undertaken. Today’s arrests represent an example to us all of what can be accomplished when agencies work together.”
According to the Indictment[1] unsealed today in White Plains federal court:
From 2017 to 2018, in the Southern District of New York and elsewhere, CRISTIAN FERNANDEZ, JOHNNY FERNANDEZ, JESUS GONZALEZ, JUAN HERNANDEZ, JUAN PABLO RENDON-INZUNZA, NICOLE MAISONET, GABRIEL ORTIZ, MARIA ROLON, EDGARDO RUIZ, HECTOR SANCHEZ, GILBERT TORRES, FABIOLA VEGA, and JOHN VIEIRA participated in a conspiracy to distribute and possess with intent to distribute controlled substances.  The criminal organization trafficked in both heroin and methamphetamine.  As part of the criminal organization, CRISTIAN FERNANDEZ and FABIOLA VEGA possessed firearms in furtherance of their narcotics trafficking and, together with co-defendants HERNANDEZ, RUIZ, and TORRES, participated in a conspiracy to deal in firearms without a license between 2017 and 2018.
The maximum potential sentences in this case are prescribed by Congress and are provided in the attached table for informational purposes only, as any sentencings of the defendants will be determined by a judge.
Mr. Berman praised the outstanding investigative work of the FBI and the Port Chester Police Department.  Mr. Berman also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Westchester County Police Department, and the Peekskill Police Department for their assistance in this investigation. 
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.                                                     
United States v. Cristian Fernandez, et al.
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
Count One
Narcotics Conspiracy

CRISTIAN FERNANDEZ
JOHNNY FERNANDEZ
JESUS GONZALEZ
JUAN HERNANDEZ,
JUAN PABLO RENDON-INZUNZA
NICOLE MAISONET
GABRIEL ORTIZ, a/k/a “Bebe”
MARIA ROLON
EDGARDO RUIZ, a/k/a “Roro”
HECTOR SANCHEZ, a/k/a “Tito”
GILBERT TORRES
FABIOLA VEGA
JOHN VIEIRA a/k/a “John-John”
As to defendants CRISTIAN FERNANDEZ, GONZALEZ, INZUNZA, ORTIZ, RUIZ, SANCHEZ, VEGA:
Life in prison with a mandatory minimum of 10 years in prison

As to defendants JOHNNY FERNANDEZ, HERNANDEZ, MAISONET, ROLON, TORRES, and VIEIRA:
40 years in prison with a mandatory minimum of five years in prison

Count Two
Conspiracy to Deal in Firearms without a License

CRISTIAN FERNANDEZ
JUAN HERNANDEZ
EDGARDO RUIZ, a/k/a “Roro” GILBERT TORRES
FABIOLA VEGA
Five years in prison

Count Three
Firearms Offense
FABIOLA VEGA
Life in prison with a mandatory minimum of five years in prison
Count Four
Firearms Offense
CRISTIAN FERNANDEZ

Life in prison with a mandatory minimum of five years in prison
 [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 should be treated as an allegation.

New York City Pharmacy Owner Pleads Guilty To Committing $8.5 Million Fraud On Medicare And Medicaid


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SAJID JAVED, an owner and operator of nine different pharmacies in the New York City area, pled guilty to participating in a health care fraud scheme that used his pharmacies to submit more than $8.5 million in fraudulent claims to Medicare and Medicaid.  JAVED was arrested in 2016 as part of an unprecedented nationwide sweep led by the Medicare Fraud Strike Force, resulting in criminal and civil charges against more than 300 individuals for their alleged participation in health care fraud schemes involving approximately $900 million in false billings.  JAVED pled guilty in Manhattan federal court before the Honorable Vernon S. Broderick. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As he admitted in court today, Sajid Javed fraudulently billed Medicare and Medicaid more than $8.5 million for drugs that were never actually dispensed. He did this by inducing others to forego their prescription medications for kickbacks. This scheme not only put patients at risk, it also contributed to the multibillion-dollar theft of federally funded public health care subsidies.”
According to the Complaint and the Superseding Information filed in Manhattan federal court, and statements made in connection with JAVED’s guilty plea:
While owning and operating nine different pharmacies in Brooklyn and Queens, JAVED perpetrated a multimillion-dollar scheme to defraud Medicare and Medicaid programs by seeking reimbursement for prescription drugs that were never distributed to customers.  From January 2013 through July 2015, JAVED obtained more than $8.5 million in reimbursements from Medicare and Medicaid for prescription drugs that his pharmacies never actually dispensed to customers.  JAVED tricked Medicare and Medicaid into paying these reimbursements by obtaining prescriptions from individuals who were willing to forego delivery of the medications in exchange for a share of the reimbursements.  JAVED offered to pay, and in fact paid, such kickbacks in furtherance of the unlawful scheme.           
JAVED, 47, of Fresh Meadows, Queens, pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum sentence of five years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
JAVED is scheduled to be sentenced by Judge Broderick on August 24, 2018, at 2:30 p.m.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the Department of Health and Human Services Office of the Inspector General.

5 Members Of Slip-And-Fall Scheme Charged With Defrauding New York City-Area Businesses And Their Insurance Companies Of More Than $31.7 Million


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging PETER KALKANIS, BRYAN DUNCAN, KERRY GORDON, ROBERT LOCUST, and RYAN RAINFORD with conspiracy to commit mail and wire fraud, mail fraud, and wire fraud in connection with a scheme to obtain fraudulent insurance reimbursement and other compensation for fraudulent slip-and-fall accidents.  The Indictment also charges PETER KALKANIS with one count of aggravated identity theft.  The five defendants were arrested earlier this morning and will be presented today before United States Magistrate Stewart D. Aaron in Manhattan federal court.  The case has been assigned to United States District Judge Laura Taylor Swain.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, these defendants employed one of the oldest plays in the fraudster handbook – the fake slip-and-fall routine – to develop a network of ‘fall victims’ to obtain an astonishing $31 million in fraudulent insurance and compensation payouts.  Allegedly, some of the ‘victims’ went as far as having unnecessary surgery to increase the likelihood of a higher settlement.  Today, however, these defendants’ fraud careers are over, and they will be forced to answer for their alleged crimes.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “The intentional misrepresentation of an accidental slip and fall, and the subsequent defrauding of businesses and insurance companies, is a reprehensible crime in and of itself.  But perhaps the most shocking allegation revealed today is the fact that additional incentives were offered for participants to undergo surgery in order to receive payment for their involvement. One thing is for sure – the alleged activity carried out by Kalkanis and his co-conspirators was no accident, and neither are our charges today.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
Since 2013, the defendants have been engaged in a widespread fraud scheme through which the defendants defrauded businesses and insurance companies by staging slip-and-fall accidents and filing fraudulent lawsuits arising from those staged slip-and-fall accidents.  The fraud scheme participants recruited individuals to stage slip-and-fall accidents at particular locations throughout New York City and to claim that they injured themselves as a result of their accidents.  The recruited patients were directed to claim that they had injured themselves and to seek medical treatment. 
After the staged slip-and-fall accidents, recruited patients were referred to specific attorneys who would file lawsuits against the owners of the accident sites and/or insurance companies of the owners of the accident sites (the “Victims”).  The lawsuits did not disclose that the recruited patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all.  During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of at least $31,791,000.
The recruited patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors.  The fraud scheme participants advised the recruited patients that if they intended to continue with their lawsuits, they were required to undergo surgery.  As an incentive to getting surgery, the recruited patients were offered a payment after they completed surgery as well as a percentage of any settlement payment from their lawsuit. 
KALKANIS, a former chiropractor, was the organizer and leader of the scheme.  As alleged in the indictment, KALKANIS paid his co-defendants to recruit patients into the scheme and transport the patients to medical and attorney appointments.  KALKANIS also organized the recruited patients’ legal and medical appointments, and assisted in procuring the funding for the recruited patients’ medical treatment and lawsuits.
DUNCAN, GORDON, LOCUST, and RAINFORD helped recruit patients into the fraud scheme, transported patients to medical and legal appointments, identified potential accident sites, and coached recruited patients on faking their injuries. 
KALKANIS, 70, Queens, New York, DUNCAN, 30, Queens, New York, GORDON, 34, Queens, New York, LOCUST, 52, Brooklyn, New York, and RAINFORD, 28, Queens, New York, are each charged with one count of conspiracy to commit mail and wire fraud, which carries a maximum sentence of 20 years in prison; one count of mail fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.  KALKANIS is also charged with one count of aggravated identity theft, which carries a two year mandatory prison sentence.  The maximum potential sentences and minimum sentence in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and the NYPD.  Mr. Berman also thanked the National Insurance Crime Bureau for their assistance in the investigation. 
The charges contained in the Indictment and Complaint 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 should be treated as an allegation.

Third Co-Founder Of Cryptocurrency Company Charged In Manhattan Federal Court With Scheme To Defraud Investors


  Robert Khuzami, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of RAYMOND TRAPANI, a/k/a “Ray,” a co-founder of a cryptocurrency company called Centra Tech, Inc. (“Centra Tech”), and the unsealing of a criminal complaint charging TRAPANI with securities fraud and wire fraud offenses in connection with a scheme to induce victims to invest more than $25 million in investments through material misrepresentations and omissions in connection with an initial coin offering.  TRAPANI was arrested this morning and will be presented in U.S. District Court for the Southern District of Florida.  Two other Centra Tech co-founders, Sohrab Sharma, a/k/a “Sam Sharma,” and Robert Farkas, a/k/a “RJ,” a/k/a “Bob,” were arrested earlier this month based on a criminal complaint charging them with the same crimes.

Deputy U.S. Attorney Robert Khuzami said:  “As alleged, Raymond Trapani conspired with his co-defendants to lure investors with false claims about their product and about relationships they had with credible financial institutions.  While investing in virtual currencies is legal, lying to deceive investors is not.”
According to the allegations in the criminal Complaint unsealed in Manhattan federal court against TRAPANI:[1]
After TRAPANI worked with Sharma and Farkas at a luxury car rental company called “Miami Exotics” in Florida, the three of them co-founded a company called Centra Tech that claimed to have developed a debit card, the “Centra Card,” that purportedly allowed users to spend cryptocurrency to make purchases at any establishment that accepts Visa or Mastercard.  In approximately July 2017, TRAPANI, along with Sharma and Farkas, began soliciting investors to purchase unregistered securities in the form of digital tokens issued by Centra Tech, through a so-called “initial coin offering” or “ICO.”  As part of this effort, TRAPANI and his co-conspirators, Sharma and Farkas, in oral and written offering materials that were disseminated via the internet, represented: (a) that Centra Tech had an experienced executive team with impressive credentials, including a purported CEO named “Michael Edwards” with more than 20 years of banking industry experience and a master’s degree in business administration from Harvard University; and (b) that Centra Tech had formed a partnership with Bancorp to have Bancorp issue Centra Cards licensed by Visa or Mastercard, among other claims.  Based in part on these claims, victims provided more than $25 million in investments for the purchase of Centra Tech tokens. 
The claims that TRAPANI and his co-conspirators, Sharma and Farkas, made to help secure these investments, however, were false.  In fact, the purported CEO “Michael Edwards” and another supposed member of Centra Tech’s executive team are fictional people who were fabricated to mislead investors, and Centra Tech had no relationships with Bancorp, Visa, or Mastercard.
On or about September 29, 2017 – the date on which the United States Securities and Exchange Commission (“SEC”) announced that it filed a civil complaint charging a company called “RECoin” and its founder, among others, with defrauding investors in an unregistered offering of securities styled as an initial coin offering – Sharma asked TRAPANI and Farkas to remove certain materials from Centra Tech’s website that contained “fufu,” or fake information, about Centra Tech’s purported relationship with Visa because, according to Sharma, “I rather cut any fufu . . . Now . . . Then worry . . . Anything that doesn’t exist current . . . We need to remove.”  Later that day, Sharma text messaged TRAPANI and Farkas that “Sec just shut down REcoin . . .  Read the article . . . We gotta clean up every single thing that we can’t do . . . And can’t offer today.”  Shortly thereafter, TRAPANI responded that RECoin “were pitching a straight security,” to which Sharma wrote “Yea . . . I know . . . But [still] fraud can be a word thrown around.”
In a separate action, the SEC filed civil charges against TRAPANI.  Earlier this month, the SEC also filed civil charges against Sharma and Farkas.  
TRAPANI, 27, is a resident of Florida.  TRAPANI is charged in a four-count criminal complaint with one count of conspiracy to commit securities fraud, which carries a maximum potential sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of 20 years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.          
Mr. Khuzami praised the work of the FBI and thanked the SEC for its assistance.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
 [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.