MAYOR DE BLASIO ATENDS THE GROUNDBREAKING FOR A NEW LAB AT THE BRONX SCHOOL OF SCIENCE

 

MAYOR DE BLASIO AtTENDS THE GROUNDBREAKING FOR A NEW LAB AT THE BRONX SCHOOL OF SCIENCE

By Robert Press

Wednesday afternoon Alumni from the Bronx High School of Science gathered to break ground for a new part of the school that would house a new science lab. This new science lab area would be available to all Bronx high school students however, and not just those who attend the Bronx High School of Science. Bronx public Schools Chancellor Meisha Porter said that, when she spoke. She added that this will level the playing field a little for those students who may not have a science lab in their schools. 

Mayor Bill de Blasio was introduced by Principal Rachel Hoyle to say a few words, and he thanked Bronx Science Alumni Stanley Mann, the Bronx Science Alumni Foundation, Fund for Public Schools, and the Doe fund for Public school, in helping make this new science lab area a possibility. The School Construction Authority will build the new building. 

Mayor de Blasio went on to say a few things about the amazing people in the world who went to New York City public schools, but his bias against Bronx Science High School was evident, when the mayor said that he was a Brooklynite, and that his son went to Brooklyn Tech High School. Stuyvesant High school makes up the original specialized high schools in the city which students must take an exam to be admitted to.

On hand for the groundbreaking were several Bronx elected officials who graduated from Bronx Science High School, Assemblyman Jeffrey Dinowitz, his son Councilman Eric Dinowitz, State Senator Jamaal Bailey, Assemblyman Kenny Burgos, and Queens State Senator and former New York City Comptroller John Liu. Also many other Bronx Science Alumni were in attendance.

Principal Hoyle introduces Mayor Bill de Blasio as he arrives. 

As Mayor de Blasio arrives, you can see the green construction fence behind him.

After speaking to the audience the mayor spoke personally to Alumni Stanley Mann thanking him for his donation, as Principal Hoyle watches.

It was then on to the groundbreaking with Public Schools Chancellor Meisha Porter, and Principal Hoyle.

(L-R) Chancellor Meisha Porter, an unidentified Alumni, Assemblyman Kenny Burgos is behind the women without a helmet, Assemblyman Jeffrey Dinowitz, Alumni Stanley Mann, Mayor Bill De Blasio, State Senator John Liu, State Senator Jamaal Bailey, Councilman Eric Dinowitz, School staff, and Principal Hoyle ready to toss the ceremonial shovel of dirt.

The ground is broken as you can see the dirt flying. 

Two different views of what the new Science Lab building will look like.

Affordable Housing Units Still Available At 2692 Creston Avenue In Fordham

 

The affordable housing lottery has launched for 2692 Creston Avenue, an eight-story residential building in Fordham, The Bronx. Designed by Gerald J. Caliendo, the structure yields 19,111 square feet and 16 residences. Available on NYC Housing Connect are four units for residents at 130 percent of the area median income (AMI), ranging in eligible income from $63,429 to $167,570.

2692 Creston Avenue in Fordham.

Amenities include bike storage lockers, a recreation room, and a shared laundry room. Units include name-brand appliances and finishes, air conditioning, high-speed internet, energy-efficient appliances, and a patio or balcony.

At 130 percent of the AMI, there are two one-bedrooms with a monthly rent of $1,850 for incomes ranging from $63,429 to $139,620 and two two-bedrooms with a monthly rent of $2,200 for incomes ranging from $75,429 to $167,570.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than August 10, 2021.

Manhattan Businessman Charged In Manhattan Federal Court For Fraudulently Obtaining Government Procurement Contract

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, and William W. Richards, Special Agent in Charge of the United States Air Force Office of Procurement Fraud Investigations, Joint Base Andrews, announced today that RAYMOND WHITE,  a/k/a “John Raymond Anthony White,” a/k/a “Raymond Alexander White,” was arrested by agents from the Air Force Office of Special Investigations and the Army Major Procurement Fraud Unit this morning at his residence in New York, New York.  WHITE is charged by complaint with submitting false information regarding WHITE’s general contractor business’s finances and prior performance of contracts in order to obtain a contract to build a munitions load crew training facility at Joint Base Andrews, Maryland, and submitting false information to the United States Small Business Administration (SBA) in order to induce the SBA to guarantee 80% of the performance and payment bonds issued in connection with the contract.  The contract was worth in excess of $4.8 million.

Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Raymond White lied and provided false documentation and credentials to the military and the Small Business Administration in procuring a multimillion-dollar contract he was not qualified to fulfill.  Among other fabrications, White allegedly provided a report from an independent accounting firm that appears not to exist.  White also allegedly provided as a reference the owner of a prior $9 million contracting project, but both the owner and the prior project appear to have been made up out of whole cloth.  As alleged, Raymond White’s actual specialty appears to be the construction of fantastical falsehoods.”

Office of Procurement Fraud Investigations Special Agent in Charge William W. Richards said: “The Office Procurement Fraud Investigations, along with our law enforcement and prosecutorial partners, will work tirelessly to combat fraud threatening the Department of the Air Force.”

According to the allegations in the Complaint unsealed today in Manhattan federal court[1]:

Beginning on or about May 12, 2019, through at least in or about September 2020, WHITE, president and chief executive officer of a construction management and general contractor company (the “Contractor), submitted a bid to the District of Columbia Army National Guard (“DCARNG”) on a contract (the “Contract”) to build a munitions load crew training facility at Joint Base Andrews, Maryland.  Between September 21, 2019, and September 30, 2019, in response to a pre-award questionnaire sent by the contract specialist, WHITE emailed several documents, including an “Independent Accountants’ Report,” a “Construction Contractor Experience Data,” and a “Firm Dossier” to the contract specialist for the DCARNG.  The contract was awarded to September 30, 2019, to the Contractor for $4,801,000.  These documents contained false financial reports regarding the Contractor’s finances, false information regarding past performance of contracts by the Contractor, and false information regarding members of the management team for the Contractor.  The contract was terminated on or about September 16, 2020, for providing false information to the DCARNG, and no construction work had been performed yet on the site.

As required by federal law, WHITE was required to obtain performance and payment bonds provided by an insurer (generally referred to in the business as a surety) for the Contract. On or about October 23, 2019, the Contractor received a performance and payment bond from a bond insurance company (the “Surety”), and the Surety required that the Contractor obtain a guarantee of the bond from the United States Small Business Administration (“SBA”), so that in the event of default on the bond, the Surety would be reimbursed 80%-90% of any loss incurred by the SBA.  In or around October 2019, WHITE emailed the SBA bond guarantee application materials to a surety bond broker to submit to the SBA.  The application materials included, among other documents, financial statements and a statement of personal history for WHITE.  These documents contained fictitious financial reports regarding the Contractor’s finances and false information regarding past contracts performed by the Contractor.  WHITE also falsely represented in the Statement of Personal History that he never had been convicted of any criminal offense, when WHITE was previously convicted on April 21, 2011, in the Southern District of New York of mail fraud (18 USC § 1341), major fraud against the United States (18 USC § 1031), false statements (18 USC § 1001(a)), and tampering with a witness (18 USC § 1512(b)(3)).  WHITE also listed his name as “Raymond Alexander White” and provided a social security number and date of birth different from those listed in his Bureau of Prisons records.  On or about October 31, 2019, the Contractor obtained a guarantee from the SBA of 80% of the payment and performance bond.  As a result of Contract termination, the SBA has fulfilled three claims that the Surety has submitted to the SBA pursuant to the guarantee provided by the SBA to the bonds issued by the Surety, totaling $242,827.53 as of January 26, 2021.

WHITE, 56, of New York, New York, is charged with one count of major fraud against the United States, which carries a maximum sentence of 10 years in the prison, and two counts of wire fraud, each of which carries a maximum 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 defendant will be determined by a judge.

Ms. Strauss praised the work of the Air Force Office of Procurement Fraud Investigations and the Army Major Procurement Fraud Unit in this investigation.

The charges 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 herein should be treated as an allegation as to the defendants charged in the Complaint.

Attorney General James Announces Proposed $26 Billion Global Agreement with Opioid Distributors/Manufacturer

 

New York to Receive Up to $1.25 Billion Under Previously Announced Settlements with Johnson & Johnson, McKesson, Cardinal Health, and Amerisource Bergen

  New York Attorney General Letitia James today announced an historic proposed $26 billion agreement that will help deliver desperately needed relief to communities across New York and the rest of the nation struggling with opioid addiction. The proposed agreement will resolve claims against three of the nation’s largest drug distributors — McKesson Corporation, Cardinal Health Inc., and Amerisource Bergen Drug Corporation — as well as one of the nation’s largest drug manufacturers — Johnson & Johnson (J&J) — over the companies’ roles in creating and fueling the opioid epidemic. New York communities ravaged by opioids will specifically receive up to $1.25 billion to fund prevention, treatment, and recovery programs (the terms of New York’s specific settlements were previously announced with both the three distributors and with J&J). Additionally, today’s proposed agreement requires significant industry changes that aim to end the opioid epidemic and prevent this type of crisis from occurring again.

“The numerous companies that manufactured and distributed opioids across the nation did so without regard to life or even the national crisis they were helping to fuel,” said Attorney General James. “Johnson & Johnson, McKesson, Cardinal Health, and Amerisource Bergen not only helped light the match, but continued to fuel the fire of opioid addiction for more than two decades. Today, we are holding these companies accountable and infusing tens of billions of dollars into communities across the nation, while taking significant steps to hold these companies accountable. Johnson & Johnson will stop the sale of opioids nationwide, and McKesson, Cardinal Health, and Amerisource Bergen are finally agreeing to coordinate and share their data with an independent monitor to ensure this wildfire does not continue to spread any further. While no amount of money nor any action can ever make up for the hundreds of thousands of lives lost or the millions more addicted to opioids, we can take every action possible to avoid any future devastation.”

The proposed global agreement — if approved by a substantial number of states and local governments across the country — would resolve the claims of nearly 4,000 entities that have filed lawsuits in federal and state courts against the four companies. New York has already signed on to today’s agreement, while other states have 30 days to sign onto the deal. Local governments in the participating states will have up to 150 days to join. States and their local governments will receive maximum payments if each state and its local governments join together in support of the agreement.

Global Funding:

• The three distributors collectively will pay up to $21 billion over the next 18 years.
• Johnson & Johnson will pay up to $5 billion over nine years, with up to $3.7 billion paid during the first three years.
• The total funding distributed will be determined by the overall degree of participation by both litigating and non-litigating state and local governments.
• Nationwide, the substantial majority of the money is to be spent on opioid treatment and prevention.
• Each state’s share of the funding has been determined by an agreement among the states using a formula that takes into account the impact of the crisis on the state — specifically, the number of overdose deaths, the number of residents with substance use disorder, and the number of opioids prescribed — and the population of the state.

Global Injunctive Relief:

• The 10-year proposed agreement will result in court orders requiring McKesson, Cardinal, and Amerisource Bergen to:  
• Establish a centralized independent clearinghouse to provide all three distributors and state regulators with aggregated data and analytics about where drugs are going and how often, eliminating blind spots in the current systems used by distributors.
• Use data-driven systems to detect suspicious opioid orders from customer pharmacies.
• Terminate customer pharmacies’ ability to receive shipments, and report those companies to state regulators, when they show certain signs of diversion.
• Prohibit shipping of and report suspicious opioid orders.
• Prohibit sales staff from influencing decisions related to identifying suspicious opioid orders.
• Require senior corporate officials to engage in regular oversight of anti-diversion efforts.

• The 10-year proposed agreement will result in court orders requiring Johnson & Johnson to: 
• Stop selling opioids.
• Not fund or provide grants to third parties for promoting opioids.
• Not lobby on activities related to opioids.
• Share clinical trial data under the Yale University Open Data Access Project.

This proposed settlement comes as a result of investigations by state attorneys general into whether the three distributors fulfilled their legal duty to refuse to ship opioids to pharmacies that submitted suspicious drug orders and whether Johnson & Johnson misled patients and doctors about the addictive nature of opioid drugs.

In March 2019, Attorney General James filed the nation’s most extensive lawsuit to hold accountable the various manufacturers and distributors responsible for the opioid epidemic. The manufacturers named in the complaint included Purdue Pharma and its affiliates, as well as members of the Sackler Family (owners of Purdue) and trusts they control; Janssen Pharmaceuticals and its affiliates (including its parent company Johnson & Johnson); Mallinckrodt LLC and its affiliates; Endo Health Solutions and its affiliates; Teva Pharmaceuticals USA, Inc. and its affiliates; and Allergan Finance, LLC and its affiliates. The distributors named in the complaint were McKesson Corporation, Cardinal Health Inc., Amerisource Bergen Drug Corporation, and Rochester Drug Cooperative Inc.

The cases against Mallinckrodt and Rochester Drug Cooperative are now moving separately through U.S. Bankruptcy Court. The case against Purdue and the Sacklers is also moving through U.S. Bankruptcy Court, but, earlier this month, Attorney General James and a majority of states announced their approval of an agreement that would force the Sacklers and entities they control to pay more than $4.5 billion for opioid abatement, as well as shut down Purdue, and ban the Sacklers from ever selling opioids again. The agreement is pending court approval.

The trial against the three remaining defendants — Endo Health Solutions, Teva Pharmaceuticals USA, and Allergan Finance — is currently underway and will continue in state court.

Separately, but related to her work on opioids, this past February, Attorney General James co-led a coalition of nearly every attorney general in the nation in delivering more than $573 million — more than $32 million of which was earmarked for New York state — toward opioid treatment and abatement in an agreement and consent judgment with McKinsey & Company. The agreement with one of the world’s largest consulting firms resolved investigations by the attorneys general into the company’s role in working for opioid companies, helping those companies promote their drugs, and profiting millions of dollars from the opioid epidemic.

Combined, Attorney General James’ negotiations have yielded the potential for New York to receive over $1.6 billion to combat the opioid crisis.

Joining Attorney General James in leading the state negotiations were the attorneys general of California, Colorado, Connecticut, Delaware, Florida, Georgia, Louisiana, Massachusetts, North Carolina, Ohio, Pennsylvania, Tennessee, and Texas.

TWO DEFENDANTS, INCLUDING AN HRA EMPLOYEE, ARE CHARGED IN SCAM THAT STOLE $1,500 FROM A NEW YORKER ON THE VERGE OF HOMELESSNESS

 

 Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), issued a statement on the indictment unsealed today that charges an employee of the City Human Resources Administration (“HRA”), and another individual, for their participation in a scam that tricked an HRA client seeking rental assistance to provide them with blank money orders valued at a total of $1,500, which the defendants allegedly cashed and stole. DOI began its investigation after it was alerted by HRA about allegations involving the scam, and then worked with the Bronx District Attorney’s Office, which is prosecuting this matter. 

 LUIS RODRIGUEZ, 56, of the Bronx, N.Y., an Associate Job Opportunity Specialist employed by HRA, and ELSIE MERCADO, 50, of the Bronx, N.Y., were each charged with Grand Larceny in the Fourth Degree, a class E felony, and Petit Larceny, a class A misdemeanor. RODRIGUEZ was also charged with Official Misconduct, a class A misdemeanor. Upon conviction, a class E felony is punishable by up to four years in prison and a class A misdemeanor is punishable by up to a year’s incarceration.

 RODRIGUEZ has been employed with HRA since February 1988 and receives an annual salary of approximately $69,996. He works for HRA’s HomeBase program, a homelessness prevention program. 

 DOI Commissioner Margaret Garnett said, “This indictment highlights the damaging and deeply personal toll that corruption and greed can cause. Here, a New Yorker on the verge of homelessness sought assistance from the City and instead became the unwitting target of a theft scheme perpetrated by two defendants, including the very City employee assigned to help her, according to the charges. To anyone, most especially City employees who use City services as a way to con others, today’s arrests are a stark warning that criminal conduct will be exposed and those associated with it held accountable. DOI thanks HRA for reporting these allegations and the Bronx District Attorney’s Office for its partnership on this investigation.”

 Bronx District Attorney Darcel D. Clark said, “New Yorkers in need must be able to trust City employees whose job it is to help them get assistance. We will hold accountable those who would cheat vulnerable people and betray that trust.” 

 According to the indictment and the investigation, between May 4 and 6, 2017, RODRIGUEZ directed a client of HRA’s HomeBase program, which assists tenants on the verge of eviction, to provide him with two signed money orders left blank in the payee section, to show that she could provide some funding for rent. As requested, the client provided to RODRIGUEZ the two money orders, each valued at $750. RODRIGUEZ worked with MERCADO to cash the money orders at a check cashing establishment in the Bronx and then pocketed the money, according to the indictment and investigation.

 Please note that HRA will never ask rental assistance clients to provide a money order that is left blank in the payee section.

 Commissioner Garnett thanked Bronx District Attorney Darcel D. Clark, and her staff, for their prosecution of the case, specifically Assistant District Attorneys Sean McCauley and Rossana Gallego-Manzano of the Public Integrity Bureau, under the supervision of Omer Wiczyk, Chief of the Public Integrity Bureau, and Ilya Kharkover, Deputy Bureau Chief. Commissioner Garnett also thanked HRA Commissioner Steven Banks for his and his staff’s cooperation in this investigation

 The investigation was conducted by DOI’s Office of the Inspector General for HRA, specifically Assistant Inspector General Jeremy Reyes, under the supervision of Deputy Inspector General Audrey Feldman, Inspector General John M. Bellanie, Deputy Commissioner/Chief of Investigations Dominick Zarrella, and First Deputy Commissioner Daniel Cort; and with the assistance of DOI’s Squad of NYPD Detectives.

 An indictment is an accusation. Defendants are presumed innocent until proven guilty

7 Defendants In Nationwide Money Laundering Organization Charged For Laundering Over $28 Million For Drug Trafficking Organizations

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, and Ray Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced charges today against seven individuals involved in laundering tens of millions of dollars for drug trafficking organizations selling illegal narcotics throughout the United States.  YING SUN, JIAN WANG, FRANK LIU, DIELONG WU, LARRY LAI, and JIE LIN, are charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmission business; STEVEN WOO was also charged as part of the conspiracy to operate an unlicensed money transmission business.  SUN, LIU, and WOO were arrested in California and will be presented in the Central District of California this afternoon before Magistrate Judge John D. Early.  WU and LAI were arrested today in New York and will be presented in the Southern District of New York before Magistrate Judge Katharine H. Parker.  WANG and LIN remain at large.  During the investigation, law enforcement agents seized over $6.5 million from the defendants’ money laundering organization, and, in coordination with unsealing the charges today, seized an additional $8 million in assets traceable to the illicit proceeds laundered by the organization.  The case is assigned to U.S. District Judge Sidney H. Stein.

U.S. Attorney Audrey Strauss said: “Like drug dealers, those who launder the proceeds of drug trafficking profit from the sale of dangerous narcotics that wreak havoc in communities throughout the United States.  As alleged, the individuals arrested today facilitated drug traffickers by concealing millions of dollars of their ill-gotten profits.  Our Office will continue to work closely with the DEA and our law enforcement partners to go after the money networks that are necessary to the operations of the international drug trade.”

DEA Special Agent in Charge Ray Donovan said: “One of the most powerful criminal elements of transnational drug trafficking organizations is money laundering. Like any business, the ultimate goal of drug trafficking is to profit. These money laundering networks provide an invaluable service to traffickers, transferring their ill-gotten gains across the globe. The men and women of the DEA are focused on bringing to justice not only drug traffickers, but anyone who facilitates the drug trade.”

According to the allegations in the Indictment unsealed today[1]:

From at least November 2019 through May 2021, SUN coordinated the activities of a money laundering organization (“MLO”), communicating with drug trafficking organizations (“DTOs”) throughout the United States and in Mexico to receive large quantities of cash to be laundered.  From April 2020 through April 2021, SUN organized more than 130 money pickups in 23 states involving over $20 million in drug trafficking proceeds.  WANG, LIU, WU, LAI, LIN, and WOO facilitated the MLO’s operations by conducting these money pickups, transporting the cash, depositing the money into the retail banking system, and/or transferring the money to different individuals or entities.

During the course of the investigation, law enforcement agents conducted numerous seizures of bulk currency in connection with the money pickups conducted by the MLO, and seized over $6.5 million.

SUN, 65, of Arcadia, California, WANG, 52, of Rosemead, California, LIU, 65, of Yorba Linda, California, WU, 58, of Staten Island, New York, LAI, 69, of Queens, New York, and LIN, 58, of Upland, California, are each charged with one count of conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison, and, along with WOO, 69, of Montebello, California, one count of conspiracy to operate an unlicensed money transmission business, which carries a maximum penalty of five 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.

Ms. Strauss praised the outstanding work of the DEA.  She also thanked the Internal Revenue Service and the U.S. Attorney’s Office for the Central District of California for their assistance.

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 herein, constitute only allegations, and every fact described should be treated as an allegation.

Governor Cuomo Updates New Yorkers on State's Progress During COVID-19 Pandemic

 

35,832 Vaccine Doses Administered Over Last 24 Hours

5 COVID-19 Deaths Statewide Yesterday

 Governor Andrew M. Cuomo today updated New Yorkers on the state's progress combatting COVID-19.

"Getting vaccinated is more crucial now than it's ever been before. As the Delta variant makes its way through the nation, it is the best way to protect yourself and your loved ones against the virus," Governor Cuomo said. "The vaccine is safe, effective, free and accessible. There's no excuse not to get yours as soon as possible. This is steadily becoming a pandemic amongst the unvaccinated - utilize the weapon we have." 

  

Today's data is summarized briefly below:

• Test Results Reported - 83,082 
• Total Positive - 1,452 
• Percent Positive - 1.75% 
• 7-Day Average Percent Positive - 1.41% 
• Patient Hospitalization - 462 (+38) 
• Patients Newly Admitted - 96 
• Patients in ICU - 100 (+11) 
• Patients in ICU with Intubation - 36 (+3) 
• Total Discharges - 186,006 (+61) 
• Deaths - 5 
• Total Deaths - 43,041 
• Total vaccine doses administered - 21,881,692 
• Total vaccine doses administered over past 24 hours - 35,832 
• Total vaccine doses administered over past 7 days - 234,252 
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 71.3% 
• Percent of New Yorkers ages 18 and older with completed vaccine series - 66.0%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 74.0%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 67.5%
• Percent of all New Yorkers with at least one vaccine dose - 59.5% 
• Percent of all New Yorkers with completed vaccine series - 54.8%
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 61.8%
• Percent of all New Yorkers with completed vaccine series (CDC) - 56.1%

Manhattan Investment Fund Manager Sentenced To 5 Years In Prison For Securities Fraud And Misappropriation Scheme

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that DONALD LAGUARDIA was sentenced today to 60 months in prison for his securities fraud and misappropriation scheme.  LAGUARDIA was the chief executive and co-founder of a New York-based investment firm, L-R Managers, LLC, which managed the LR Global Frontier Master Fund and two related feeder funds (collectively, the “Frontier Funds”).  LAGUARDIA was found guilty of securities fraud, investment adviser fraud, and wire fraud following a trial last November before United States District Judge Lewis A. Kaplan, who imposed today’s sentence.

U.S. Attorney Audrey Strauss said: “Donald LaGuardia pitched his clients on frontier market investments, but the Frontier Funds turned out to be a front for fraud.  LaGuardia betrayed his clients’ trust by diverting millions to other uses, including his own personal and business expenses.  Now LaGuardia has been sentenced to prison for his crimes.”

According to statements in the Indictment, evidence presented during the trial, and other filings and statements at public court proceedings in the case:

From in or about 2013 through in or about 2017, LAGUARDIA solicited approximately $6.4 million from investors for Frontier Funds, which had a stated focus on investments in “frontier” markets in Latin America, Central and Eastern Europe, the Middle East, Africa, and Asia.  Contrary to LAGUARDIA’s representations, and in breach of his duties to investors in the Frontier Funds, LAGUARDIA misappropriated investors’ money to finance L-R Managers’ payroll, pay rent for its office space on Park Avenue in Manhattan, and pay hundreds of thousands of dollars in charges on the firm’s credit card, among other unauthorized expenses.  Hundreds of thousands of dollars went to the benefit of LAGUARDIA personally.

In one example, in 2013, LAGUARDIA solicited an $800,000 investment in the Frontier Funds from an investor (“Investor-1”).  Upon receipt of Investor-1’s money, an L-R Managers employee sent an email to LAGUARDIA and another person asking for approval to forward the $800,000 to the Frontier Funds.  LAGUARDIA responded, “Dont [sic] wire anything yet!”  LAGUARDIA then caused approximately $390,000 of Investor-1’s investment never to be transmitted to the Frontier Funds, but instead to be used to pay himself approximately $52,000 and for various other personal and business expenses.

By September 2015, L-R Managers faced substantial financial difficulties.  On September 1, 2015, an L-R Managers principal sent an email to LAGUARDIA and others at the firm stating that it would be “ethically troubling to accept money into the [Frontier Funds] when [L-R Managers] can no longer support . . . payroll and mission critical services.”  Nevertheless, just a few days later, a new investor solicited by LAGUARDIA (“Investor-2”) made a $2 million investment into the Frontier Funds.  Prior to this investment, LAGUARDIA concealed his firm’s near insolvency from Investor-2 and did not disclose that the Frontier Funds had been paying substantial expenses for L-R Managers, contrary to the representations in the funds’ offering documents.  LAGUARDIA then proceeded, over the course of several months, to use a substantial portion of Investor-2’s investment in the Frontier Funds to continue paying himself and subsidizing his firm’s business expenses.

LAGUARDIA, 54, of Lavallette, New Jersey, was also sentenced to three years of supervised release.  He was further ordered to forfeit $2,571,500 and pay restitution to victims in the amount of $4,039,872.46.

Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service and thanked the U.S. Securities and Exchange Commission for its assistance.