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Thursday, February 23, 2023
Bronx Borough President Vanessa L. Gibson - Community Resources & Updates
Former Pharma Executive And Cousin Charged With Insider Trading Of Kodak Stock
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JAMES ANDREW STILES, a/k/a “Andrew Stiles,” and EDWARD GRAY STILES, a/k/a “Gray Stiles,” with multiple counts of securities fraud and conspiracy to commit both wire fraud and securities fraud in connection with a scheme to commit insider trading based on misappropriated information about potential government loans to be made to the Eastman Kodak Company to finance the production of COVID-19-releated pharmaceutical components. ANDREW STILES was arrested this morning in South Carolina, and GRAY STILES was arrested this morning in Virginia.
U.S. Attorney Damian Williams said: “By stealing confidential business information, Andrew Stiles allegedly betrayed the trust and confidence of his employer — a pharmaceutical company working to help the public at the height of the COVID-19 pandemic — and schemed with his cousin, Gray Stiles, to collectively make more than a million dollars of illegal profits. Today’s arrests show that this Office will continue to prosecute those who seek to profit at the expense of the integrity and fairness of our financial markets.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, the defendants are the latest examples of criminal actors relying on material non-public information to trade securities for their own profit. When individuals motivated by greed illegally tip the scales in their favor, public confidence in the integrity of our financial markets is eroded. Investigating and holding accountable the perpetrators of these schemes remains a priority for the FBI.”
According to the allegations in the Indictment unsealed in Manhattan federal court:[1]
Between June and July 2020, ANDREW STILES conducted an insider trading scheme in which he misappropriated material, non-public information (“MNPI”) and used it to trade in the stock of the Eastman Kodak Company (“Kodak”) and further provided that MNPI to his cousin, GRAY STILES, so that GRAY would likewise trade on the MNPI.
During that time, ANDREW STILES was an executive at a company (“Company-1”) that was working with Kodak to collaborate on the production of chemicals for pharmaceutical manufacturing in connection with the COVID-19 pandemic. Company-1 was also assisting Kodak in its application for a significant government loan, which ultimately resulted in the news, on July 27, 2020, of a government “letter of interest” to provide Kodak with a loan of $765 million (the “LOI”). In the following days, Kodak stock rose substantially, at one point increasing to more than 2,500% above the closing price prior to the news of the LOI.
During June and July 2020, ANDREW STILES was kept apprised of Kodak’s efforts to obtain the government loan, and he both traded using that non-public information and passed that information to GRAY STILES. For example, on July 9, 2020, when Kodak had applied for a loan in the amount of $655 million, ANDREW STILES and GRAY STILES exchanged the following coded text messages:
GRAY: Any update on the film we sent off a few weeks ago to get developed
ANDREW: 600+. Maybe 2 weeks out
GRAY: I can live with that hahaha
Between June 2020, after ANDREW STILES learned about the potential loan to Kodak, and July 27, 2020, the date the LOI was first publicized, ANDREW STILES purchased more than 90,000 shares of Kodak stock, including multiple purchases the day before the LOI was scheduled to be announced. GRAY STILES purchased more than 30,000 shares, more than half of which were purchased the day prior to the scheduled announcement of the LOI. In fact, on July 27, 2020, ANDREW STILES texted GRAY STILES, “Tmw,” indicating the expected date of the announcement. Less than one minute later, GRAY STILES responded, “Hot damn.” Following that exchange, and before the news was announced, ANDREW and GRAY STILES each purchased more than 10,000 additional shares.
ANDREW and GRAY STILES each sold the entirety of their shares in the days and weeks after the announcement. ANDREW STILES realized profits of more than $500,000; GRAY STILES realized profits of more than $700,000.
ANDREW STILES, 37, of South Carolina, and GRAY STILES, 37, of Virginia, are each charged with three counts of securities fraud, each of which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit wire fraud and securities fraud, which carries a maximum sentence of five years in prison.
The statutory maximum penalties 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 a judge.
Mr. Williams praised the outstanding work of the FBI.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Governor Hochul Celebrates Final Phase of the JFK Transformation with Groundbreaking for a New $4.2 Billion Terminal 6
Project Will Create More Than 4,000 Total Jobs Including 1,800 Union Construction Jobs
Terminal 6 to Offer World-Class Passenger Amenities, Expanded Taxiway and Gate Capacity, State-of-the-Art Security and Streamlined Roadway Access
Includes 30 Percent MWBE Goal for Contracts and Financing Interests; Extensive Opportunities for Local Businesses and Job Seekers Guided by Community Advisory Council
Renderings for New Terminal 6 Available Here
Governor Kathy Hochul and the Port Authority of New York and New Jersey today celebrated a key milestone in the Port Authority's transformation of John F. Kennedy International Airport with the groundbreaking for the $4.2 billion project to develop a new Terminal 6. The 1.2 million square foot, state-of-the-art new terminal on the airport's north side will feature 10 new gates — including 9 wide-body gates — and will create 4,000 jobs, including 1,800 jobs in construction. This project is the final piece of the JFK Vision Plan to break ground, and it will complete the transformation of the airport into a 21st century global gateway.
"New York remains committed to providing travelers with a premier experience that includes world-class amenities, expanded and streamlined airport transportation, and state-of-the-art security," Governor Hochul said. "The groundbreaking of Terminal 6 offers a complete vision for the modernized global gateway while adding 4,000 jobs to New York's workforce. Congratulations to everyone who has dedicated years of hard work to making this historic milestone possible."
The new Terminal 6 is a public-private partnership between the Port Authority of New York and New Jersey and JFK Millennium Partners — a consortium that includes Vantage Airport Group, an industry leading investor, developer, and manager of award-winning global airport projects, including LaGuardia's Terminal B; American Triple I, a certified minority-owned investor, owner, developer, and manager of infrastructure assets, which has a 30-percent equity stake in the project; New York real estate operating company RXR; and JetBlue Airways, the project's airline sponsor.
JFK Millennium Partners is developing the new terminal in two phases, with the first new gates opening in 2026 and construction completion in 2028. The new terminal will create an anchor for passenger travel on JFK's north side, spanning the sites of the former Terminal 6 and the existing Terminal 7. JFK Millennium Partners is managing Terminal 7 until the 50-year-old facility is demolished to make way for the second phase of construction.
The new Terminal 6 arrivals and departures hall will feel spacious, bright, and airy thanks to floor-to-ceiling windows and high ceilings throughout the new terminal. Inspiring public art by New York-based artists and architectural elements depicting New York landmarks will create a unique sense of place. Passengers will enjoy more than 100,000 square feet of world-class shopping and dining featuring locally based restaurateurs, craft beverage options and Taste of NY stores.
State-of-the-art technology will improve the customer experience with touchless technology from check-in to gates and digital systems that will streamline the passenger journey throughout the terminal. Advanced security systems will include automated TSA security lanes, biometric-based access control systems and a flexible design to accommodate future technology or regulatory changes. A convenient taxi plaza as well as designated for-hire vehicle pick-up areas will be shared with Terminal 5, substantially reducing traffic congestion on the terminal road frontage and maximizing connectivity across the airport.
As part of the agreement with JFK Millennium Partners, the Port Authority will commit $130 million in capital funding to build enabling infrastructure for the new Terminal 6, including airside improvements and utility enhancements such as electrical support for the project. Enhanced airside aircraft circulation will reduce congestion and delays, while roadway improvements will optimize airport traffic flow.
The development of Terminal 6 is expected to create more than 4,000 jobs, including 1,800 union construction jobs, and direct wages of $1.9 billion. JMP is committed to meeting and exceeding the Port Authority's goal of 30 percent participation by Minority- and Women-Owned Business Enterprises and creating opportunities to foster and grow local businesses through the development. The Terminal 6 project is part of the Port Authority's $18 billion transformation of JFK under the leadership of Governor Hochul, and it is just one component in the Port Authority's overall $30 billion commitment to creating world-class facilities at all of the region's airports. In addition to JetBlue, Lufthansa Group will also make its home in the new Terminal 6, operating international flights out of several gates and creating a world-class lounge experience for guests traveling on its airlines, which include Lufthansa, SWISS, Austrian Airlines, and Brussels Airlines.
Redeveloping JFK Airport in Lockstep with the Local Community
In 2018, the JFK Redevelopment Community Advisory Council was formed. It is co-chaired by U.S. Representative Gregory Meeks and Queens Borough President Donovan Richards, and is composed of elected officials, community boards, business and nonprofit organizations, civic organizations, and clergy leaders from the targeted local communities of Southeast Queens, Southwest Queens, the Rockaways, and western portions of Nassau County.
Since its inception, the Council has been working with the Port Authority to expand community outreach efforts and develop community-focused programs, ensuring that this ambitious project solicits ongoing feedback from local stakeholders and provides meaningful opportunities for local businesses, MWBEs, students, and jobseekers.
This includes programming to advance the Port Authority's commitment to a 30 percent MWBE contracting goal in all categories of work, and a special focus on opportunities for local businesses across all aspects of the JFK Redevelopment program, including this terminal project, which will be built by union labor under a full project-labor agreement. Other community development initiatives prioritized by the Council focus on job opportunities and workforce development programs for local residents, small business outreach and development, and educational programming for local students.
Transforming JFK Into a World-Class Global Gateway
In January 2017, the JFK Vision Plan was announced to transform John F. Kennedy International Airport into the world-class airport that New Yorkers deserve. The Vision Plan provides a strategic framework for the Port Authority and its partners to completely redevelop, modify and expand existing facilities and infrastructure. The new Terminal 6 builds on the momentum of the other three major components of the airport's transformation already underway. The $9.5 billion development of a state-of-the-art New Terminal One that will anchor the airport's south side broke ground in September 2022. The $1.5 billion expansion of Terminal 4, led by Delta Air Lines and JFK International Air Terminal, is now under construction. Additionally, the $400 million modernization and expansion of Terminal 8, led by American Airlines, which operates the terminal, and British Airways, which relocated to Terminal 8 late last year, was substantially completed in November 2022.
All of the privately financed terminal projects combined with the Port Authority's roadway, parking and infrastructure projects represent an $18 billion transformation of JFK International and an extraordinary series of public-private partnerships. The Port Authority capital investment of $2.9 billion is leveraging private investment at a rate of more than five to one when taking into account the full private investment of more than $15 billion that has been committed to the four projects comprising the full JFK redevelopment program.
NYC Planning Agency Adds New Division for Community Engagement
First new division since 2016, putting communities at forefront of planning conversations about the future of their neighborhoods
Department of City Planning Director Dan Garodnick today announced the creation of a seven-member Community Planning and Engagement (CPE) division – the agency’s first new division since 2016 – that will transform the way the agency works with communities and ensure that their voices are at the center of all planning work.
“Community engagement is critical to our planning efforts and I am thrilled the Department of City Planning is taking bold steps to ensure we get it right in building the housing and services that New Yorkers need the most,” said Maria Torres-Springer, Deputy Mayor for Economic & Workforce Development.
“The work of City Planning is built with local communities – and that means from the ground-up. We created this new division to make sure New Yorkers’ voices are front and center on our work. As a former Council Member, I understand how important it is to make this connection with our neighbors. We are serious about our collaboration with community residents, workers, advocates, and elected officials, as we tackle our city’s biggest challenges,” said Department of City Planning Director Dan Garodnick.
“This is a great next step in making sure New Yorkers are involved in our planning work from day one. By expanding how we think about community engagement, we can make sure that good planning policy is crafted hand-in-hand with members of the public, leading to better results and a better future for all,” said Lara Mérida, Senior Director of Community Planning and Engagement.
“Inclusive community participation in neighborhood planning and development are critical to our city’s success in building more housing,” said New York City Council Speaker Adrienne Adams. “This is why expanding input from diverse stakeholders to balance local needs with long-term citywide goals is one of the core pillars of my Planning and Land Use Toolkit. This new Community Planning and Engagement Division is an exciting addition to the Department of City Planning that has already taken important steps to engage young people as new voices in planning conversations. It is essential that these efforts are expanded to residents facing some of the greatest barriers to housing and economic opportunity, who aren’t always heard to the same degree as others in the community input process. Elevating more intentionally inclusive engagement of residents who traditionally lack influence can empower more New Yorkers and help us confront our city’s greatest housing and economic challenges.”
“New Yorkers deserve a say over the future of the neighborhoods they love and call home,” said Brooklyn Borough President Antonio Reynoso. “I’m glad that DCP has made it a priority to better engage residents in the planning process through the launch of their new Community Planning and Engagement Division. I am hopeful that this is the start of a new chapter that puts community voices first, and I look forward to working together toward true community partnership.”
“To be successful, any efforts at city planning must take the needs, interests, and concerns of all of a city’s residents into account,” said Queens Borough President Donovan Richards Jr. “That’s why I am thrilled the Department of City Planning is showing its commitment to acting on New Yorkers’ needs, interests, and concerns by launching its Community Planning and Engagement Division. This new division will get more residents involved in the city planning process and lead us to a better and more equitable New York City.”
The CPE will support all policy and neighborhood planning proposals, as well as discussions on the city's civic infrastructure – to increase and diversify participation in decisions about the future of neighborhoods and the city at large.
The new division will build on recent successes, such as a youth engagement program that supports young people in becoming civic leaders and advocates in their communities, and the Equitable Development Data Explorer, an interactive website designed to facilitate public engagement around issues of housing affordability, racial equity, and community displacement.
“Hallelujah! Planners, policy-makers, and New Yorkers who love their neighborhoods have long waited for this day to come. As an urban planner myself, I'm thrilled to imagine that the days of top-down planning – of planning for communities instead of with communities – will soon be a distant memory," said Betsy MacLean, Chief Engagement Officer. “The creation of the Community Planning and Engagement Unit is a big step in the direction of equity and justice and builds on the efforts of dedicated community members and intrepid community planners across City agencies, at community-based organizations, Community Boards, and urban planning schools across the city. Huge congratulations to DCP Director & CPC Chair Garodnick, Lara Mérida, Elizabeth Hamby, and the rest of the CPE crew for making this community engagement imperative a reality.”
“The new Community Planning and Engagement division at the Department of City Planning will incorporate community input into all aspects of the agency’s work, including discussions around the affordable housing we build. By better understanding community needs, we are better equipped to meet citywide goals and community-specific aspirations,” said Department of Housing Preservation and Development Commissioner Adolfo Carrión Jr.
“We’re excited that the work of the Civic Engagement Studio is being expanded in this newly formed division,” said NYC Parks First Deputy Commissioner Iris Rodriguez-Rosa. “We look forward to working more closely with the newly formed Community Planning and Engagement Unit as we continue our efforts to put planning data at the public’s fingertips.”
“To center equity in our work, we must ensure that not just the loudest voices are heard during the planning process. DCP’s new Community Planning and Engagement Division is an innovative approach to bring more New Yorkers together to build a better future for their neighborhoods,” said Department of Transportation Commissioner Ydanis Rodriguez. “We’re proud to support our sister agency’s work and applaud Commissioner Garodnick for advancing this important effort.”
First Brand-New Division since 2016
CPE is the first brand-new division at the agency since the creation of the Regional Planning division in 2016. Led by Senior Director Lara Mérida, CPE builds on the work of the Civic Engagement Studio, which was officially established in 2021.
The Studio serves as an incubator for innovative projects, including DCP’s youth engagement curriculum.
- Last year, the inaugural year of the program, more than 60 high school seniors from the Bronx’s Laboratory School of Finance and Technology (MSHS223) focused on planning issues in their neighborhood related to affordable housing, their local St. Mary’s Park, and safety at and around the future borough-based jail coming to their community.
- This year’s curriculum kicked off on Feb. 6 at the same school but with this year’s seniors, who are focused on enhancing the quality of life in their neighborhood through solutions to challenges around affordable housing, transportation, and sustainability & resiliency. CPE is looking for opportunities to expand the program to other schools as well.
“Our collaboration with DCP’s Community Planning and Engagement division meant so much to our seniors last year. They worked on real world projects with experts from DCP who came to their classes regularly and showed that they believed in them and their ideas. This turned the power dynamic upside down, with those in positions of power listening while high school seniors shared their solutions to community challenges. For students who often feel marginalized and not taken seriously, this was a powerful moment, and one I do not think they will ever forget,” said Emily Haines, U.S. Government Teacher at the Laboratory School of Finance and Technology.
“MAS believes effective community engagement leads to effective city planning. Demystifying land use processes and providing accessible tools goes a long way towards building public trust and fostering participation. I am happy that NYC’s Department of City Planning will now have a division devoted to that critical work,” said Elizabeth Goldstein, President of The Municipal Art Society. “At MAS, we have collaborated with DCP to make planning processes, tools, and data – including the Equitable Development Data Explorer – more accessible to New Yorkers. We look forward to deepening that partnership with the new Community Planning and Engagement team.”
“We at Regional Plan Association have long believed that community input and engagement are critical to the success of neighborhood planning projects and we wholeheartedly support the creation of the Community Planning and Engagement Division, which does just that,” said Tom Wright, President and CEO of Regional Plan Association. “We are particularly eager to see the work of the Civic Engagement Studio, and to see how this new division will involve young New Yorkers in community planning, helping them become decision makers and leaders in their own communities. We look forward to working with the team at DCP as they roll out this new division and continue working towards Mayor Adams’ City of Yes goals.”
Focus on Community Planning & Engagement
DCP has heard from New Yorkers on the need for there to be more community planning in all the agency’s work, not just rezonings. CPE is charged with transforming the way New York City government plans with communities across all different types of policies and projects, including for affordable housing, job development, investments in infrastructure and community-supporting services, and coordinating funding to address service-related issues, like clogged drains and park maintenance.
This new division will work internally and externally with DCP’s sister agencies to enable active community engagement, holistic neighborhood planning, and participatory policy development readily available for New Yorkers to access, and continually improve DCP’s online tools to put planning data at the public’s fingertips, and more.
City of Yes and Neighborhood Plans
DCP will lean on this division in support of Mayor Eric Adams’ City of Yes, three citywide text amendments to make New York City greener, more prosperous, and more equitable, as well as current and future neighborhood plans, such as Bronx Metro-North and the Atlantic Avenue Mixed-Use Plan. For DCP’s initial public info sessions on these initiatives, the CPE division took the lead in these meetings to make City of Yes as clear as possible and maximize opportunities for questions from the public.
In addition, DCP supports the City Planning Commission in its annual review of approximately 450 land use applications for a variety of discretionary approvals. The Department also assists both government agencies and the public by advising on strategic and capital planning and providing policy analysis, technical assistance and data relating to housing, transportation, community facilities, demography, zoning, urban design, waterfront areas and public open space.
Recent Reporting on COVID Supply Auctions Included Significant Inaccuracies, Lacked Context
Auctions Featured Non-Medical Grade Items Purchased for 80% Less than Reported
The NYC Department of Citywide Administrative Services (DCAS) today issued the following statement on inaccurate reporting by news outlet The City on the City of New York’s auctions of surplus non-medical grade supplies originally purchased for COVID-19 response efforts.
“Recent reporting indicated that $224.5 million worth of COVID supplies were auctioned by the city for pennies on the dollar. After a thorough review, we determined these numbers were inaccurately calculated by a reporter who refused to wait for a proper calculation by DCAS. After the analysis was completed, we took this information to the reporter who refused to make changes to his story. In reality, the items sold at auction were non-medical grade and many items up for auction were nearing expiration dates. To be clear, this distorted reporting did a disservice to the facts and the dedicated public servants who succeeded in obtaining emergency supplies amidst a once-in-a-century pandemic.” - Nick Benson, DCAS Executive Director of Communications and Public Affairs The Facts: · The items sold at auction were originally purchased for $42,421,625, just 18.9% of the $224,504,000 figure the reporter inaccurately claimed.
· The items sold at auction were non-medical grade. When medical-grade supplies were difficult to come by amidst collapsing supply chains in early 2020, some non-medical grade supplies were purchased as a stop-gap measure and held in reserves as supply chain issues resolved.
· The New York City Department of Health & Mental Hygiene, NYC Health + Hospitals, and others advised that these non-medical grade supplies are no longer needed with medical-grade supplies now widely available.
· Some of the items up for auction were nearing expiration dates and the only alternative to donating or auctioning items was to destroy them. Over 17 million items were previously donated to Ukraine, Indonesia, Ghana, Haiti, South Africa, and more than two dozen local community-based organizations/non-profits to support others in need and avoid waste. Some items that haven’t been donated have been placed for auction to recover as much revenue as possible for taxpayers. Because the global COVID supply market is flooded with excess supplies being sold by governments all over the world, sale prices are a fraction of what governments had to pay at the beginning of the pandemic amidst extremely limited supplies and failed leadership at the federal level.
· If the City opted not to donate or auction non-expiring items, it would have to pay to warehouse non-medical grade items that medical professionals advised are no longer needed. About the NYC Department of Citywide Administrative Services
The NYC Department of Citywide Administrative Services (DCAS) makes city government work for all New Yorkers. Our commitment to equity, effectiveness, and sustainability guides our work providing City agencies with the resources and support needed to succeed, including: · Recruiting, hiring, and training City employees. · Managing 55 public buildings. · Acquiring, selling, and leasing City property. · Purchasing over $1 billion in goods and services for City agencies. · Overseeing the greenest municipal vehicle fleet in the country. · Leading the City’s efforts to reduce carbon emissions from government operations.
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NYC Comptroller, Public Advocate, Council Members, Advocates Rally for New Vision for Housing
Ahead of City Council oversight hearing, legislation sponsors, NYC Community Land Initiative, Housing Justice For All, and non-profit affordable housing developers made the case for transformative social housing bills
Nigerian Man Sentenced To Five Years In Prison For Multimillion Dollar Fraud Scheme In Which He Impersonated Procurement Officials Of U.S. State And Local Governments And Educational Institutions
Damian Williams, the United States Attorney for the Southern District of New York, announced that FATADE IDOWU OLAMILEKAN, a/k/a “Fatade Olamilekan Idowu,” a/k/a “Olamilekan Idowu Fatade,” a/k/a “Idowu Fatade,” a citizen of Nigeria, was sentenced to five years in prison in connection with a scheme to fraudulently obtain and attempt to obtain millions of dollars of medical equipment, laboratory products, computer equipment and hardware, and other merchandise from suppliers of such merchandise across the United States by impersonating, among other individuals, procurement officials of U.S. state and local governments and educational institutions. OLAMILEKAN was arrested in Nigeria on October 1, 2021, and extradited from Nigeria to the United States on July 14, 2022, and he has been detained since his arrest. The defendant previously pled guilty to wire fraud before U.S. District Judge Valerie E. Caproni, who imposed the sentence.
U.S. Attorney Damian Williams said: “Fatade Idowu Olamilekan carried out a sprawling criminal scheme from Nigeria to fraudulently obtain medical equipment and other merchandise by impersonating government officials, including the Chief Procurement Officer for New York. Olamilekan will now face substantial prison time for his criminal conduct. This case demonstrates that we will go to great lengths to pursue defendants located abroad who seek to defraud American businesses and individuals.”
According to the allegations in the Indictment and other court documents:
From at least in or about 2018 through at least on or about September 14, 2020, OLAMILEKAN engaged in a scheme to fraudulently obtain and attempt to obtain millions of dollars of medical equipment, laboratory products, computer equipment and hardware, and other merchandise from suppliers of such merchandise across the United States by impersonating, among other individuals, procurement officials of U.S. state and local governments and educational institutions. In particular, during the COVID-19 pandemic, OLAMILEKAN impersonated the Chief Procurement Officer of New York State in an effort to fraudulently obtain medical equipment, including defibrillators. OLAMILEKAN engaged in the following conduct to carry out his criminal scheme:
First, OLAMILEKAN engaged in extensive research to identify specific procurement officials of U.S. state and local governments and educational institutions to impersonate and U.S. suppliers of medical, laboratory, and computer equipment to target as part of the scheme. This research included obtaining information about the current suppliers to the state and local governments and educational institutions OLAMILEKAN sought to impersonate and targeting those suppliers in order to avoid arousing suspicion. For example, OLAMILEKAN appears to have specifically targeted a medical supplier that was already providing medical equipment to New York State in or to avoid suspicion when OLAMILEKAN, who was impersonating the Chief Procurement Officer of New York State, contacted the supplier to obtain medical equipment.
Second, after OLAMILEKAN identified procurement officials to impersonate, he used aliases and a Lithuanian web hosting company to register email accounts with domains that had slight variations from the legitimate email accounts used by procurement officials in order to “spoof” or impersonate those officials’ email accounts (the “spoofed emailed accounts”). The spoofed email accounts used by OLAMILEKAN usually had the same username as the procurement official’s email account but added an extra letter or common domain name to the domain of the email account. These spoofed email accounts were therefore specifically designed to trick suppliers to impersonated procurement officials into thinking the spoofed email accounts were authentic. In total, OLAMILEKAN registered and used spoofed email accounts impersonating at least (i) eight different procurement officials of state and local governments in California, Illinois, Minnesota, New York, North Carolina, Pennsylvania, Texas, and Vermont; and (ii) three procurement officials of educational institutions located in Georgia and New York.
Third, OLAMILEKAN used the spoofed email accounts to send emails impersonating the procurement official and seeking quotes for medical, laboratory, and computer equipment from targeted suppliers. These emails typically indicated that the payment terms would be “net 30 days,” which is a standard term of trade credit for government and educational entities that only requires payment for the goods within 30 days of delivery. OLAMILEKAN therefore impersonated the identities of procurement officials of government entities and educational institutions in order to exploit this industry standard and fraudulently obtain equipment without providing any advance payment information or deposit prior to delivery of the equipment.
Finally, once OLAMILEKAN received a response from a targeted supplier, he provided the supplier with a purchase order containing the forged signature of the impersonated procurement official and an address for a warehouse located in the United States for delivery and storage of the equipment purchased. Once the purchased items shipped to the warehouse provided by OLAMILEKAN, he typically had the warehouse re-ship the items to another warehouse and, ultimately, from the United States to locations in Australia, the United Kingdom, and/or Nigeria. OLAMILEKAN also coordinated with the warehouses receiving the shipments from the targeted suppliers using the stolen identity of at least one U.S. resident, thereby further concealing his own identity and avoiding detection of his criminal activity. Because payment was not due to the suppliers until 30 days after delivery of the equipment, OLAMILEKAN was able to take possession of the equipment prior to detection of the fraud, which typically occurred after payment was not received by the supplier within the 30-day period.
In addition to the prison sentence, OLAMILEKAN, 41, of Lagos, Nigeria, was sentenced to three years of supervised release and ordered to pay restitution and forfeiture of $306,852.18.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked Nigeria’s Federal Ministry of Justice, Nigeria’s Economic and Financial Crimes Commission (“EFCC”), the Central Authority Unit of Nigeria’s Ministry of Justice, and the Attorney General of the Federal Republic of Nigeria for their assistance in the investigation. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Nigeria.
Governor Hochul Urges Freight Rail Industry, Congress, and Federal Regulators to Take Additional Actions to Prevent Freight Rail Hazmat Disasters in the Wake of East Palestine Toxic Train Derailment
Actions Include Expediting the Implementation of Safer Tank Cars for Hazardous Materials
Modernizing Braking Regulations and Systems to Prevent Potential Collisions
Requiring Rail Roads to Provide Advance Notice to State Emergency Response Teams of Hazard Cars Moving Through States
Expanding Access and Funding to Training and Preparedness Planning for Freight Rail Hazmat Events
Governor Kathy Hochul today urged the freight rail industry, Congress, and federal regulators to take additional actions to prevent freight rail hazmat disasters in the wake of the toxic train derailment in East Palestine, Ohio that has threatened the health and safety of residents. The comprehensive actions outlined by the Governor will help create a safer hazardous material transportation industry, while increasing state emergency response capabilities through improved federal oversight.
"The health and safety of New York residents remains my administration's top priority. The train derailment that took place in East Palestine, Ohio emphasizes the need for preventative regulations and the adequate prepositioning of emergency response resources," Governor Hochul said. "New York remains committed to leading on freight rail hazard preparedness and response, and I'm calling on our partners in the freight rail industry, Congress, and federal regulators to curb future disasters by modernizing transportation methods for hazardous materials and strengthening resources for hazard preparedness planning and response."
Specifically, Governor Hochul called on the freight rail industry, Congress, and federal regulators to take the following actions:
- Expedite the phase-in of safer tank cars (DOT 117's) for hazardous materials in advance of the Congressionally mandated 2029 deadline.
- Modernize braking regulations and increase the use of electronically controlled pneumatic brakes (ECP) to prevent potential rail derailments.
- Require rail roads to provide advance notification to State emergency response teams of hazardous cars moving through their state.
- Expand state and local grants specifically for hazmat preparedness and response planning.
New York State Department of Environmental Conservation Commissioner Basil Seggos said, "Through Governor Hochul's leadership, New Yorkers should know that the State is ready to respond whenever emergencies occur. The actions outlined by the Governor today will ensure the federal government is prioritizing rail safety improvements that will better protect our residents and ensure the nation has the most stringent rail transportation oversight. DEC looks forward to working with our federal, state, and local partners as we review and build upon our nation-leading response capabilities."
New York State remains a leader in freight rail hazard preparedness and response. In the aftermath of the Lac-Megantic crash in 2013, New York State initiated a comprehensive response planning and prepositioned response assets to prepare for a freight rail hazmat disaster, focusing specifically on crude oil. Through a multi-agency effort, with the Department of Environmental Conservation in the lead, New York State created Geographic Response Plans (GRPs) that guide local, county, state, federal and industry response operations in the event of an emergency - serving as a model for the rest of the nation. While New York continues to lead the nation in freight rail hazard preparedness, these additional measures the federal government and the rail industry can take to prevent disasters like the one in Ohio and ensure our response capabilities are sound.