Friday, April 26, 2019

Former S&P Analyst Convicted In Insider Trading Schemes


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SEBASTIAN PINTO-THOMAZ, a former credit ratings analyst at Standard & Poor’s, was convicted today of participating in two schemes to trade on material, nonpublic information in advance of the Sherwin-Williams Company’s acquisition of the Valspar Corporation, following a seven-day jury trial before U.S. District Judge Jed S. Rakoff.

U.S. Attorney Geoffrey Berman said:  “Sebastian Pinto-Thomaz stole confidential information from his employer and passed it to two men he had known for years – and he did it for his own personal benefit.  While the defendant attempted to blame his mother for this conduct at trial, as a unanimous jury found, it was Pinto-Thomaz who committed insider trading.”
According to the evidence presented during the trial and statements made in related court filings and proceedings:
Rating Evaluation Services and the Insider
When a company announces an acquisition, the acquiring company often seeks the opinion of a credit rating agency regarding the potential impact that the acquisition could have on the acquiring company’s creditworthiness.  Therefore, companies often contact rating agencies before an acquisition is publicly announced.  All the major rating agencies offer a service – sometimes known as a Rating Evaluation Service (“RES”) – that provides the company with a rating committee decision with respect to a proposed acquisition.
In March 2016, Standard and Poor’s (“S&P”), a credit rating agency in New York, New York, assigned SEBASTIAN PINTO-THOMAZ, a credit ratings analyst, to work on a RES for the Sherwin-Williams Company (“Sherwin-Williams”) in advance of its contemplated but unannounced acquisition of the Valspar Corporation (“Valspar”).  In connection with this assignment, PINTO-THOMAZ received material, nonpublic information (the “Inside Information”) about Sherwin-Williams’s planned acquisition of Valspar prior to the public announcement of the acquisition.  S&P’s written policies prohibited the unauthorized disclosure of confidential information, which included the Inside Information.  During his tenure at S&P, PINTO-THOMAZ reviewed and certified his duties of loyalty and confidentiality to S&P and its clients.
The Insider Trading Scheme
In March 2016, PINTO-THOMAZ misappropriated the Inside Information about Sherwin-Williams’s acquisition of Valspar and passed it to Jeremy Millul, his friend, and Abell Oujaddou, his hairdresser, so that they could use it to make profitable trades in Valspar stock and options.  On March 21, 2016, the first trading day after the public announcement of the acquisition, the price of Valspar stock increased approximately 23 percent over the prior day’s close.
Millul is a Manhattan jeweler who had a close personal friendship with PINTO-THOMAZ.  After receiving a tip about the impending Valspar deal from PINTO-THOMAZ, Millul opened a brokerage account on March 13, 2016, and shortly thereafter purchased 480 shares of Valspar common stock.  On March 18, 2016, the last trading day before the acquisition was publicly announced, Millul also purchased 75 out-of-the-money Valspar call options.  After the acquisition was publicly announced, Millul sold his Valspar stock and options for approximately $106,806 in profits.
Oujaddou is a Manhattan hairstylist and salon owner who has known PINTO-THOMAZ for years, and who is close friends with PINTO-THOMAZ’s mother.  During a haircut on March 8, 2016, or March 9, 2016, PINTO-THOMAZ provided Oujaddou with the Inside Information about the impending Valspar deal in exchange for a portion of his trading profits.  Then, from March 10, 2016, through March 18, 2016, Oujaddou, who had never previously purchased Valspar or Sherwin-Williams securities, used the Inside Information he had received from PINTO-THOMAZ to purchase 8,630 shares of Valspar stock.  After the acquisition was publicly announced, Oujaddou sold his Valspar shares for approximately $192,080 in profits.  Following his successful trading, Oujaddou met PINTO-THOMAZ in the paint aisle of a hardware store and paid him a kickback.
Later, in June 2016, the Financial Industry Regulatory Authority (“FINRA”) sent S&P a list of individuals and entities that had traded in Valspar in advance of the public announcement of the acquisition (the “List”).  S&P forwarded the List to its employees who had worked on the Sherwin-Williams RES, including PINTO-THOMAZ, asking the employees to respond by stating whether they had a past or present relationship with any individual or entity on the List. Although both Oujaddou and Millul were on the List, PINTO-THOMAZ denied having a relationship with anyone on the List.
SEBASTIAN PINTO-THOMAZ, 32, of New York, New York, was convicted of two counts of conspiracy to commit securities fraud and two counts of securities fraud.  The conspiracy counts each carry a maximum prison term of five years; the securities fraud counts each carry a maximum sentence of 20 years.  The securities fraud charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
PINTO-THOMAZ is scheduled to be sentenced before Judge Rakoff on July 29, 2019, at 4:00 p.m.
Abell Oujaddou and Jeremy Millul each previously pled guilty and await sentencing before Judge Rakoff.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.

Operator Of Online Retailer Sentenced In Manhattan Federal Court For Running Fraudulent Eyewear Business


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that VITALY BORKER was sentenced today in Manhattan federal court to two years in prison for one count of mail fraud, one count of wire fraud, and one count of conspiracy to commit mail and wire fraud in connection with his operation of the eyewear retail and repair website Opticsfast.com. 

BORKER pled guilty on March 20, 2018, before U.S. District Judge Paul G. Gardephe, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman stated:  “Vitaly Borker twice perpetrated criminal schemes involving the online sale and repair of eyewear, and today he was rightfully sentenced to prison for a second time.  Perhaps his second stint in federal prison will impress upon this shady businessman that seeking to make money by fraud and intimidation is a path to prison and not success.”
According to allegations made in the Complaint and Indictment to which BORKER pled guilty, as well as statements made in court proceedings:
BORKER founded Opticsfast.com in 2011 as an e-commerce eyeglass retail and repair business.  From at least 2011 through 2017, the defendant conducted a scheme to defraud individuals by inducing them to send their glasses to Opticsfast.com for repairs, then demanded exorbitant fees for repairs or return shipping, intimidated and harassed customers who requested refunds by subjecting them to a campaign of abusive emails and text messages, and threatened to discard glasses when customers disputed the fees.  In furtherance of the scheme, the defendant posted material false statements on Opticsfast.com’s website, falsely claiming the company used in-house laboratories staffed by trained technicians to perform repair work.  BORKER launched and operated Opticsfast.com after he was charged in a federal criminal case for his fraudulent operation of another eyewear retail and repair website, Decormyeyes.com, for which he was ultimately convicted and sentenced in a separate case.  BORKER continued his involvement in Opticsfast.com from prison even after he was incarcerated, and following his release from prison.
BORKER, 42, of Brooklyn, New York, was sentenced to two years in prison, to be followed by three years of supervised release, a $50,000 fine, and a $300 special assessment.
Mr. Berman praised the outstanding investigative work of the New York Office of the U.S. Postal Inspection Service.

Attorney General James Announces Investigation Into Facebook


Company Harvested 1.5 Million Users’ Contact Databases Without Authorization 

  Attorney General Letitia James today announced an investigation into Facebook’s unauthorized collection of 1.5 million Facebook users’ email contact databases. While Facebook claims that 1.5 million contact databases were directly harvested by its email password verification process for new users, the total number of people whose information was improperly obtained may be hundreds of millions.  

“It is time Facebook is held accountable for how it handles consumers' personal information,” said Attorney General Letitia James. “Facebook has repeatedly demonstrated a lack of respect for consumers’ information while at the same time profiting from mining that data. Facebook’s announcement that it harvested 1.5 million users’ email address books, potentially gaining access to contact information for hundreds of millions of individual consumers without their knowledge, is the latest demonstration that Facebook does not take seriously its role in protecting our personal information.”  
Email verification is a standard practice for online services such as Facebook. Typically, when a consumer signs up to a new service, they are asked to provide an email address, where they then receive an email with a link to verify that the email account belongs to them. Facebook's procedure requested certain users to hand over their password to their personal email account. Additionally, reports indicate that Facebook proceeded to access those user’s contacts and upload all of those contacts to Facebook to be used for targeted advertising. While Facebook has admitted that 1.5 million people's contact books were directly harvested, the total number of people whose contact information was improperly obtained by Facebook may be hundreds of millions, as people can have hundreds of contacts stored on their contact databases.  
The office has previously enforced New York’s consumer protection laws against social networking websites that misappropriated user’s contact lists. In January 2019, Attorney General James announced an investigation into Apple over their failure to warn consumers about the FaceTime bug that jeopardized the privacy of consumers in New York by allowing users to receive audio and video from the device of the person they are calling even before the person has accepted or rejected the call. In March 2018, the Attorney General’s Office opened an investigation into Facebook over the reported misuse of user data with Cambridge Analytica.    

Councilman Ruben Diaz Sr. Prepares to Fight Proposed City Adult Men's Shelter


  Located in a former garage at 2008 Westchester Avenue City Councilman Ruben Diaz Sr. held a pre demonstration that brought out over 100 people to protest a proposed adult men's shelter. Samaritan Village will be in charge of the 165 bed adult men's shelter which Councilman Diaz Sr. says does not belong within walking distance of two schools and across the street from a public library. Councilman Diaz Sr. says that he would rather see a family shelter for the community rather than an adult men's shelter. A full community protest where it is expected that over 500 people will show up is scheduled for Monday April 29th at 6 PM.

87th Male District Leader John Perez who was once homeless after serving his country in the Army agreed that the site is better suited as a family shelter than an adult male shelter. He said that while he was homeless that he went to Samaritan Village for help, but since Mr. Perez was not a drug addict or had a criminal record Samaritan Village would not help him.

 It seems that while construction is under way to convert the once garage into an adult men's shelter run by Samaritan Village, there has been no public meeting as required New York state law. Normally this meeting is with the local community board, but there seems to have been a private meeting on March 15th between Samaritan Village and the District Manager of Community Board 9.

Upon checking with Community Board 9, The minutes of the April 2nd Social Services Committee shows in the DM Report there will be notes from the 2008 Westchester Avenue shelter meeting that happened on March 15th.

Other items include a Town Hall meeting on April 12th at St. Helena's Church, with DHS in attendance. Samaritan Village will do a presentation at the May 7th Social Services Committee meeting. DHS will be coming to the April General Board meeting, and that CB 9 will have nime shelters when 2008 Westchester Avenue opened.


Above - City Councilman Ruben Diaz Sr, reads from a Department of Homeless paper with facts of the number of homeless people in the Bronx.
Below - 87th Assembly District Leader John Perez says that Samaritan Village (who will run the proposed adult men's shelter) that while he was homeless he went to Samaritan Village for help. He was told that he had to be either a drug addict or have a criminal background in order for Samaritan Village to be able to help him. Mr. Perez had neither.



Miracle City Center Presents its Plans to CB 10




Tuesday's Community Board 10 Health Committee brought out a crowd for the presentation by Miracle Mile City Center at 2800 Bruckner Boulevard. The Health and Human Services Committee is chaired by Ms. Nancy Rosario. 

 Chief Compliance Officer Andrea L. Carson gave a vague presentation of what Miracle City was currently doing in the CB 10 community. She said that it is a home based at the moment, but that an 822 application has been submitted to the state to be able to give counseling to people on site at 2800 Bruckner Boulevard. Sessions could be thirty, forty-five, or sixty minutes long depending on the subject and severity of problem. She added that the counseling could be on alcoholism, drug problems, gambling, smoking, opioid, or other addictions. She stressed that there would be no drugs stored on site. 

  Board members first asked questions which were answered that the program is needed in the community and the Bronx. A security guard would be on site, and that Miracle City would only occupy half of the second floor having no more than eighty people including staff in the building. The hours would be 9 AM to 6 or 7 PM, six days a week. The official start date was not known yet as the application still has to be submitted to the state. 

Questions from the public included the need for a facility like this in Throggs Neck, if the facility would dispense any drugs, security to the nearby schools and homes, how are the owners of the building involved. 

Miracle City CCP Corson replied by saying the facility is needed in the community board 10 area of Throggs Neck, Coop-City, as well as the entire Bronx. She repeated that no drugs would be given out. That there would be no security problems with their security on site. Mark Bassori and James Pecletta two of the owners of 2800 Bruckner Boulevard were in attendance and said yes they were involved in Miracle City.

John Collazzi representing Assemblyman Michael Benedetto was very concerned about the TOTS school for special needs children that has an open school yard one block away from 2800 Bruckner Boulevard. He said that Assemblyman Benedetto has three concerns that need to be satisfied.
1 - That Community Board 10 is satisfied with the program.
2 - That the Community Advisory Board is satisfied with the program.
3 - That the Community is satisfied with the program.
From the impression of the public hearing at least the firs two of the three items have been met. It will have to be seen if item three will be met.


It was a long evening for Andrea Corson, but Miracle City by meeting with Community Board 10 during a public hearing of the Health and Human Services Committee has met its requirement to meet with the community.

Bronx Borough President Ruben Diaz Jr. - OFFICIAL BRONX 2020 CENSUS KICK-OFF


Tomorrow is Car Free Day!


Tomorrow, April 27th New York City will go Car Free! We are excited to announce that tomorrow is the 4th Annual Car Free Day NYC. New Yorkers will have the opportunity to roam freely, taking advantage of the good weather while learning to be more environmentally friendly! Washington Heights will open St. Nicholas Avenue from 181st to 190th Street; Midtown will open Broadway between Union Square to 42nd Street.

There will be many activities for people of all ages to enjoy like performances, dance classes, puppet-shows, and much more can be expected. This year we have partnered with close to 100 unique organizations to make this year the biggest one to date! Citi Bike will provide free day passes at both the uptown and downtown locations as well as one location in Brooklyn. I hope to see you all tomorrow! 

Car Free Day Programming

Uptown Car Free Day (10AM - 4PM): 
  • 181st to 182nd Street: Join City College STEM Institute's team to explore robotics and computer programming. Participants can also cross the open space to climb aboard a New York City FDNY truck. WellCare, TD Bank and other partners will have tables to welcome guests with free giveaways.
  • 182nd and 183rd Street: Main stage, offering performances by local partners, such as Dance Project of Washington Height and Jazz Power, as well as acts such as Carnegie Hall and El Chaval.
  • 183rd and 184th Street: Bike New York and DOT have partnered again this year for a Bike Bonanza, from 11:00AM to 2:30 PM. Bring an outgrown children's bike and you can upgrade for a current size. Once again, we will be providing free bike helmets to all participants.
  • 184th and 185th Street: Try out a Citi Bike, learn your route to work with Uptown & Boogie Bike, or challenge yourself to an obstacle course provided by Asphalt Green and The Armory. Participants can also stop by the WellCare to get a free health screening.
  • 185th and 186th Street: Sports all day! Participants can play volleyball with BAMESA USA, tennis with Washington Heights Tennis Association, football with the Van Courtland Titans or soccer with the Charles Street Soccer.
  • 186th St and 187th Street: WeAct for Environmental Justice will be hosting a Swap, Shop, and Repair Fair from 12:00pm - 3:00pm. Bring your old clothes, dishware or toys and swap with neighbors. Attend one of their workshops to learn how to reuse and repair everyday items. You can also chat with many of our citywide agencies, Department of Environmental Protection. Mayor's office of Sustainability, Commission on Human Rights, or the Office of Emergency Management.
  • West 187th Street: The Children will love the performance space! They can enjoy puppet shows by the Wildlife Conservation Society; Bronx Zoo, as well as Repartorio EspaƱol. Participants can also take dance or theater workshops with People's Theatre Project or DPWH.
  • 187th St to 190th Street: More children's activities! Activities include face painting, balloon animals, and environmental design. Children can also make art projects with the mind-blowing Children's Museum of Art. Participants can pick up a free book from Literacy Inc and write a poem with Uptown Stories. At this site, you can learn to row with Row NY or explore sailing with Hudson River Community Sailing. To close it out, there will be amazing Zumba or yoga classes at 190th Street.
Broadway, from Union Square to Times Square from 9 am to 3 pm:  


  • Union Square features an intriguing pop-up streetscape intervention by the American Institute of Architects, American Society of Landscape Architects of New York, and the American Planning Association that will help New Yorkers visualize the future of Broadway, in which the street functions as social public space, privileging the pedestrian experience.Future Streets engages Car Free Earth Day participants in an immersive experience focused on public right-of-way design. The design features temporary potted plantings on Broadway's surface; an engagement booth with exhibition boards illustrating potential street designs and precedent images from around the world; places for musicians to entertain, as well as moveable tables and chairs open to the public, and grassy play areas. This rest stop also includes fitness classes all day provided by the NY Health and Racquet Club, and an historical walking tour of Union Square and Gramercy Park provided by Big Onion Walking Tours.
  • At Flatiron, participants can find bike programming sponsored by Citi Bike. Willing participants can learn about Citi Bike and sign up for a membership. New and existing members are also eligible for a special gift. This site has a range of other environmental and sustainability focused programming from organizations such as: Earth Day Initiative, Earth Institute at Columbia and the UN Sustainable Development Solutions Network. The performance area features family fitness classes hosted by WRKNYC, PopFit Kids, Exhale Spa and Vibrate Higher, a dynamic musical performance by Fogo Azul NYC, and our signature Earth Day performance by the Artichoke Dance Company.
  • At Worth Square, there is an abundance of fitness activities including free inline skate rentals provided by Go!Sports USA and  family-oriented parkour activations from The Movement Creative. Big Onion Tours is providing an historical walking tour underscoring the importance of art, literature, and Rock & Roll.
  • This year, the City Zone is a one stop shop for all educational, environmental and sustainability programming. City Agencies including DEP, DSNY, DOH, DCP, TLC, and the Parks Department are hosting information tents in the area. The Mayor's Office of Sustainability is also on site to encourage New Yorkers to think green and learn how to reduce their carbon footprint.
  • Herald Square features various fitness classes including cardio, dance, boot camp and Iron Strength, provided by the 34th Street Partnership. Also, in collaboration with 511 NY Rideshare, Bike New York, and the 5 Borough Bicycle Club, participants can learn more about transportation advocacy and the proper bike check process. DOT Safety Education and Bike and Greenway divisions are also on site to provide participants with bike safety resources. Transportation Alternatives and DOT Transit Development team are showing New Yorkers other viable transportation options---whether by foot, bike, or mass transit.
  • In the Garment District, there are spectacular musical performances by the Rockness Music and The Marching Cobras, a cultural Afro- Brazilian martial arts performance by the New York Capoeira Center, a dance performance by Ori Manea Tahitian Polynesian Dance, and lastly entertainment by the Bryant Park Jugglers.
  • Also in the Garment District, participants can find some environmentally savvy public art by Willie Cole, titled 14000 Reasons, which message is to emphasize the significance of recycling while giving discarded items new life. This installation consists of two works of art, H20 TBR and Big Drink of Water, which both use plastic bottles to convey the artist's message. Other green inspired arts and crafts workshops are available by organizations such as Materials for the Arts and the Manhattan Graphics Center.
  • The Times Square rest stop includes a fascinating walking tour provided by Big Onions Tours. With this being such a vibrant area, it has many layers of identity hidden and this tour will help participants learn about the ups and downs of Midtown--- its transformation from the center of the horse and carriage trade to present day as it stands as the heart of New York City. Stops may include: the former site of the American Horse Exchange, the Astor Hotel, the Paramount Building, the Lamb's Club, the former Aeolian Hall, and sites associated with Elvis Presley, Frank Sinatra, Flo Zeigfeld, Mary Pickford, and many others.
  • Also returning to Times Square this year is Project Dance's annual dance festival offering a variety of local and international dance artistry in ballet, jazz, modern, hip hop and tap from 10 AM to 6 PM.
Outer-Borough Car-Free Events:
  • Car Free Earth Day Downtown Brooklyn: Albee Square West from Willoughby Street to Fulton Street and Albee Square Plaza, Brooklyn (11:00am - 3:00pm) Hosted by Downtown Brooklyn Partnership
  • Songkran Weekend Walk: Woodside Ave from 75th Street to 77th Street, Queens (11:30am - 6:00pm) Hosted by Thai Community USA NYC
  • Earth Day: Forsyth Street and Eldridge Street from Canal Street to East Broadway, Manhattan (9:00am - 3:00pm) Hosted by Chinatown District Management Association
  • Castleton Avenue Street Festival: Castleton Avenue from Oakland Avenue to Davis Avenue, Staten Island (12:00pm - 6:00pm) Hosted by West Brighton Community LDC
  • Circle the Square Earth Day: Lane Avenue from Westchester Avenue to East Tremont Avenue, The Bronx (12:00pm - 3:00pm) Hosted by Westchester Square BID

ENGEL DENOUNCES TRUMP DECISION TO WITHDRAW FROM ARMS TREATY


  Representative Eliot L. Engel, Chairman of the House Committee on Foreign Affairs, today released the following statement after President Trump announced in a speech to the National Rifle Association that he plans to withdraw the United States from the Arms Trade Treaty:

“Today the President withdrew the U.S. from a global treaty to control the trafficking in weapons, as a politically-motivated appeasement of the National Rifle Association. President Trump finds it more important to feed his right-wing base than to exercise U.S. leadership on the world stage.

“It is abhorrent to use international diplomacy for blatant political pandering. It’s even more appalling when that policy decision concerns dangerous weapons that endanger the lives of Americans and people around the world.

“The Foreign Affairs Committee will convene a hearing to shine a bright light on this shameful decision.”