Bronx Man Pleads Guilty To Facilitation Of Sex Trafficking, Drug Trafficking, Firearms, And Identity Theft Charges

Kevin Pinnock Posted Advertisements Online for Women he Forced to Engage in Commercial Sex

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that KEVIN PINNOCK, a/k/a “Kev Savage,” a/k/a “Sav,” pled guilty before U.S. District Judge Deborah A. Batts to using the internet to facilitate sex trafficking, possessing crack cocaine with intent to distribute, possessing a firearm in furtherance of drug trafficking, and possessing stolen identification documents.

U.S. Attorney Geoffrey S. Berman said:  “Kevin Pinnock used violence and coercion to force women to engage in commercial sex for his own profit.  With Kevin Pinnock’s guilty plea today, we seek to deliver justice to victims of sex trafficking and other forms of commercial exploitation and to deter others from engaging in this profoundly harmful criminal conduct.  Protecting the public from sex trafficking crimes remains a top priority for us and our law enforcement partners.”

ATF Special Agent-in-Charge Ashan M. Benedict said:  “Kevin Pinnock was allegedly involved in a multitude of criminal activities, which included using a firearm to protect his position on the street as a dealer in narcotics. Through the efforts of the Agents and Detectives of the ATF/ NYPD Joint Firearms Task Force (JFTF) working alongside Agents of HSI, Kevin Pinnock will be forced to contemplate his alleged crimes while serving a substantial sentence in prison. I would like to thank all of the law enforcement agencies that worked collaboratively to further this case.  I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”

HSI Special Agent-in-Charge Angel M. Melendez said:  “This man admitted his guilt in forcing women to perform sexual acts by threatening violence and abuse.  Pinnock was in for making a profit any way he can, with his crimes becoming more brazen; from robbery and ID theft to drug dealing and sex trafficking.  The plea today is only the beginning for Pinnock, who will now need to face the consequences of this actions.”

According to the Complaint, Indictment, Superseding Indictment, and other documents filed in the case, as well as statements made during PINNOCK’s plea proceedings:

In 2015 and 2016, PINNOCK posted online advertisements to solicit customers to engage in commercial sex with women PINNOCK forced into prostitution by violence, abuse, and coercion.  PINNOCK retained virtually all of the profits from his sex trafficking business. 

In at least November 2016, PINNOCK sold crack cocaine and possessed a loaded firearm, which had been stolen, in order to protect his drug dealing business.  He also possessed dozens of stolen identification cards – including driver’s licenses and Social Security cards – which he sold to other individuals who were engaged in identity theft and fraud.  Many of the identification cards had been obtained through the commission of robberies.

PINNOCK, 22, of the Bronx, New York, was arrested on January 5, 2017, in the Bronx, and has been in federal custody since.  PINNOCK pled guilty to one count of possession with intent to distribute cocaine base, which carries a maximum sentence of 10 years in prison; one count of possession of a firearm in furtherance of drug trafficking, which carries a mandatory minimum sentence of five years in prison to be imposed consecutively to any other sentence and a maximum sentence of life in prison; possession with intent to use or transfer five or more identification documents or authentication features, which carries a maximum sentence of 15 years in prison; aggravated identity theft, which requires a two-year prison term to be imposed consecutively to any other sentence; and use of interstate commerce to promote unlawful activity, which carries a maximum sentence of five years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

PINNOCK is scheduled to be sentenced by Judge Batts on September 23, 2018.

Mr. Berman praised the outstanding investigative work of the ATF and HSI, and thanked the United States Secret Service, the Social Security Administration’s Office of the Inspector General, the New York City Police Department, and the Bronx County District Attorney’s Office for their assistance.

A.G. Underwood And Acting Tax Commissioner Manion Announce Conviction Of “Taxi King” Evgeny Freidman For Stealing Nearly $5 Million In MTA Taxes

Freidman Withheld Nearly $5 Million In MTA Passenger Surcharges From The State Of New York

Freidman Pleads Guilty To Felony Tax Fraud And Must Pay Restitution and Judgments Totaling $5 Million For MTA Taxes Owed To New York State

  Attorney General Barbara D. Underwood and Acting Commissioner of Taxation and Finance Nonie Manion announced today the guilty plea of Evgeny A. Freidman, 46, of New York, NY for failure to remit to the New York State Department of Taxation and Finance $5 million in 50-cent MTA surcharges between 2012 and 2015. During this time period, Friedman — the CEO of Taxiclub Management Inc. — managed a fleet of over 800 medallion taxicabs out of locations in Manhattan, Brooklyn, Woodside, and Long Island City. Today, in Albany County Court, Freidman pleaded guilty to Criminal Tax Fraud in the Second Degree and agreed to pay restitution and judgments totaling $5 million to New York State.

“Today, the ‘Taxi King’ admitted that he built his empire by stealing from New Yorkers,” said Attorney General Underwood. “Freidman pocketed money that should have provided much-needed investment in our transit system – and he’ll now have to pay back every cent. Our office will continue to hold accountable those who cheat the system.”

This case was the result of a joint investigation by the New York State Attorney General’s Office and the New York State Department of Taxation and Finance (“DTF”).  The Attorney General’s indictment, filed in Albany County Court in June 2017, charged Freidman, together with Taxiclub Management CFO Andreea Dumitru, with four counts of Criminal Tax Fraud in the First Degree and one count of Grand Larceny in the First Degree, all class B felonies. 

According to statements made by prosecutors and documents filed in court, Freidman’s TaxiclubManagement, Inc. oversaw the operation of four NYC taxicab medallion management agencies: 28^th Street Management Inc. (located at 313 10^th Ave., New York, NY); Downtown Taxi Management LLC (located at 330 Butler St., Brooklyn, NY); Tunnel Taxi Management LLC (located at 44-07 Vernon Blvd., Long Island City, NY); and Woodside Management Inc. (located at 49-13 Roosevelt Ave., Woodside, NY). 

Between at least January 2012 and December 2015, Freidman was also the beneficial and managing owner of over 120 companies, each of which held multiple taxicab medallions. Through these companies and the four managing agencies, Freidman served as both the licensed owner and managing agent of a fleet of over 260 medallion taxicabs. In addition to the hundreds of medallions he owned, Freidman’s managing agencies leased hundreds of additional medallions from other owners. Taxi Club Management Inc. and the four managing agencies controlled over 800 medallion taxicabs between 2012 and 2015. 

During this four-year period, these taxicabs provided millions of rides to millions of New York City passengers. The vast majority of those rides were subject to a 50-cent New York State Tax known as the “MTA Tax,” which was automatically collected from passengers as part of their fare. Instead of remitting that tax to the DTF as required by law, Freidman and Dumitru allegedly orchestrated a scheme to withhold that money by improperly filing returns, failing to file returns, failing to remit the tax on filed returns and by filing falsified returns which underreported the true number of taxable rides. Through this scheme, Freidman and Dumitru allegedly withheld nearly $5 million in taxes from the State of New York that had been collected from passengers.

Today, in Albany County Court before the Honorable Peter A. Lynch, Freidman pleaded guilty to one count of Criminal Tax Fraud in the Second Degree, in violation of Tax Law Section 1805, a class “C” felony. Pursuant to his guilty plea, Freidman admitted that from January 1, 2012 through February 4, 2016, he was the CEO of Taxi Club Management, and the managing member of 28^th Street Management, Downtown Taxi Management, Tunnel Taxi Management, and Woodside Management. In that capacity, Freidman admitted that he received MTA surcharge taxes collected from taxicab customers in the City of New York on behalf of taxicab medallions he owned or managed, and intentionally failed to remit those moneys to the DTF. In particular, over the time-period of January 1, 2015 through February 4, 2016, Freidman received over $50,000 in MTA surcharge taxes collected from taxicab customers in the City of New York on behalf of taxicab medallions he owned or managed, and intentionally failed to remit those moneys to DTF. Friedman further admitted that knew that he was obligated to remit this money to DTF, and he willfully failed to remit the money with intent to defraud DTF.

As part of his guilty plea, within 30 days of his plea, Freidman must pay restitution in the amount of $500,000 to DTF. Additionally, on or before the date of his sentencing, he must pay an additional $500,000 restitution to DTF, execute a closing agreement with DTF to cover all MTA tax liabilities between January 1, 2012 through December 31, 2015, and enter a confession of judgment in an amount not to exceed four million dollars $4 million in favor of DTF. Freidman’s sentence will be adjourned to allow him to complete his restitution payments; if satisfies the terms of the agreement, he will be sentenced to 5 years’ probation.  

The Attorney General’s Taxpayer Protection Bureau is conducting an ongoing parallel civil investigation into Mr. Freidman’s conduct. Separately, the Attorney General’s Labor Bureau has investigated Freidman’s failure to properly pay drivers; those investigations resulted in a 2013 settlement for $1.2 million and a 2016 consent order in New York Supreme Court, requiring Freidman and four of his taxi medallion management agencies to pay over $275,000 in damages and fines and to hire an independent monitor to examine compliance with TLC driver-related rules.  

The Office of the Attorney General thanks the New York State Department of Taxation and Financing’s Criminal Investigations Division for its invaluable assistance on this case.

The charges against Andreea Dumitru remain pending; the charges against Dumitru are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.  

The Attorney General’s investigation was conducted by Investigators Mark Terra, Anna Ospanova and Deputy Chief Antoine Karam. Forensic accounting was performed by Associate Forensic Auditor Meaghan Scotellaro. The Investigations Bureau is led by Chief Dominick Zarrella. The Forensic Audit Section is led by Chief Auditor Edward J. Keegan.

Senator Rivera on the Appointment of Barbara Underwood as the Attorney General of New York State

"I am proud to join my colleagues in the legislature in appointing Barbara Underwood as the first woman to serve as Attorney General of New York State. Underwood brings a wealth of knowledge and experience to an office tasked with fighting to protect the rights of New Yorkers. At such a critical moment for New York State and the Office of the Attorney General, Underwood's extensive credentials and leadership experience will ensure stability and purposeful direction while New Yorkers elect the next Attorney General. It is my honor to congratulate Underwood on her appointment and I look forward to working with her as she represents the interests of all New Yorkers." 

Bronx Week Parade 2018 PHOTOS

  Bronx Borough President Ruben Diaz Jr. and his co-host for the Bronx Week Parade Bronxnet television personality Ms. Rhina Valentin arrived before the parade began, so they warmed up the people arriving as to just what they would see. BP Diaz said "You will see Bronx Pride on display by residents of the Bronx." 

  The three Bronx Walk of Fame inductees for 2018 were Ms. Tarana Burke the founder of the "Me Too Move moment", Mr. Richard Martin Lloyd Walters, better known as Bronx Rap artist 'Slick Rick', and Ms. Maggie Siff of star 'Billions' on Showtime Network. Ms. Siff had to catch a flight and missed the Bronx Week parade across Mosholu Parkway. 

Above- Honorees Tarana Burke and Slick Rick as they arrive to the reviewing stage.

Below - The honorees with BP Diaz, co-host Valentin, and Councilman Andy King.

The Bronx Week Parade continued for over an hour as schools, community organizations, elected officials, and others marched across the parkway, with some school or community organizations showing off their talents for the Honorees, Borough President, audience, and other watching the parade. Photos are below, in no special order. You can click on a photo to make it larger.

Op-Ed Submission From CMs King, Diaz, Cabrera and Deutsch

Legalize To Our Demise

By Council Members Andy King, Fernando Cabrera, Ruben Diaz Sr. & Chaim Deutsch

As we talk about legalizing Cannabis in New York, let’s look back on our nation’s history and see the good of endorsing harmful substances.  We recognize that alcohol is legal, but let's face it - it isn't good for you.  Alcohol impairs judgement and making it easily available for adults means easily available for young people.  For decades, our nation has seen alcoholism ruin marriages, families and lives.  We've seen countless alcohol-related vehicular deaths and alcohol-related activities destroy healthy academic careers. 

Are we ready to have the conversation about the costs of legalizing another harmful substance?  Cannabis, or marijuana, shouldn't be consumed by any young person, but our conversation recently on legalization has involved young black and brown men being policed unfairly, and all we hear in the media is: let's legalize marijuana to end this unfair policing. 

Can't we separate these issues? Of course we can, because they are two separate issues.  Poor policing has nothing to do with using drugs.  If we want to deal with different policing strategies in communities of color and white communities, then that should be the conversation.  Legalizing marijuana does not address those policing strategies.  What it does is send a poor message to kids that smoking weed is OK. 

Acting A.G. Underwood Announces Arrest And Indictment Of Licensed Nurse For Allegedly Stealing Over $550,000 From Brooklyn Hospital And Defrauding Medicaid

Keisha Demas Allegedly Used No-Show Job to Collect Over $550,000 from Interfaith Medical Center, Fraudulently Obtained Over $30,000 in Medicaid Benefits, Underpaid NY Taxes by $40,000  

If Convicted, Keisha Demas Faces a Maximum of 5 To 15 Years In Prison 

  Acting Attorney General Barbara D. Underwood today announced felony charges against Keisha Demas, 41, of Brooklyn, NY, for allegedly defrauding Medicaid and stealing over $550,000 from Interfaith Medical Center (“Interfaith”), a Brooklyn not-for-profit community-based hospital that recently came out of bankruptcy. The Attorney General's office alleges that Demas was paid for a “no-show” job at the hospital for at least four years. During this period, Demas also allegedly received Medicaid benefits she was not entitled to and failed to remit her income taxes to the State of New York. In total, Demas allegedly defrauded Medicaid of over $30,000 and underpaid the New York State Department of Taxation and Finance by nearly $40,000.

The defendant is charged with one count of Grand Larceny in the Second Degree (a Class C felony), one count of Grand Larceny in the Third Degree (a class D felony), one count of Forgery in the Second Degree (a Class D felony), one count of Falsifying Business Records in the First Degree (a Class E felony), three counts of Offering a False Instrument for Filing in the First Degree, two counts of Criminal Tax Fraud in the Third Degree (a Class D felony), and two counts of  Criminal Tax Fraud in the Fourth Degree (a Class E felony). If convicted, Demas faces a maximum count of 5 to 15 years in prison.  

“As we allege, this defendant stole from a community hospital, cheated Medicaid, and majorly underpaid taxes – leaving New Yorkers to foot the bill,” said Acting Attorney General Underwood. “Our office will continue to investigate fraud and do what it takes to protect taxpayers and our state resources.”

According to the Attorney General's office, Demas was contracted by Interfaith through an outside nursing agency. Beginning in 2013 and continuing through at least 2016, Demas allegedly conspired with a former Interfaith employee to falsify her timesheets as part of a scheme to make it appear as if she was working, when in fact she was not. Demas would then allegedly provide kickbacks to the Interfaith employee with cash payments. The “no-show” job, which lasted at least four years, allegedly netted Demas over $550,000 from Interfaith.

In 2014 and 2015, Demas applied for Medicaid, allegedly claiming she had no income during those years. As a result, Demas obtained Medicaid benefits, resulting in over $30,000 of paid false claims. In addition, while Demas' income exceeded $100,000 in each year of the scheme, she failed to file personal income taxes with the New York State Department of Taxation and Finance, resulting in a nearly $40,000 underpayment of taxes.

Demas was arraigned today on the indictment before Supreme Court Judge William Miller in Kings County. Bail was set at $5,000 and the case was adjourned to July 17, 2018.

The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.

The Attorney General’s Office thanks the New York State Department of Taxation and Finance for their assistance on this case. The tax case was investigated by Department of Taxation and Finance Auditors Nicholas Capkovic and Nataliya Sydorchuk.

The Attorney General’s office also thanks the New York State Department of Health (“DOH”) along with DOH Associate Attorney Kerry-Ann Lawrence of the Bureau of Litigation and Sara Oberst of the Division of Eligibility & Marketplace Integration, who investigated the Medicaid fraud. 

The Attorney General’s office also thanks Investigator Albert Flowers of the New York State Department of Financial Services for his assistance on this case.

Investigators Vincent Gisonti and Frank Tirri conducted the Attorney General’s investigation, with the assistance of Investigator Steven Pratt and William Fitzgerald, under the supervision of Supervising Investigator Michael Leahy and Deputy Chief John McManus. The Investigations Bureau is led by Chief Dominick Zarrella.

Acting A.G. Underwood Announces Settlement With Self-Dealing Trustee Of A Private Foundation

David Richenthal Used Nearly $500,000 in Richenthal Foundation Funds for Personal Travel, Entertainment, and Legal Fees

Richenthal Pays Foundation $550,000 in Total Restitution, Is Barred from Access to Foundation Funds and Fiduciary Responsibility for NY Not-for-Profits 

Foundation Agrees to Implement Internal Controls, Board Expansion, and Training Program for Trustees to Stop Future Misuse of Funds

  Acting Attorney General Barbara Underwood today announced a settlement resolving an investigation into the Richenthal Foundation, a grant-making organization that focuses on funding not-for-profit theater groups. As a result of the settlement, David Richenthal’s restitution will total $550,000 and he is barred from access to the Foundation’s funds and having any fiduciary role in New York not-for-profits. The Foundation has also agreed to implement internal controls, expand its board to ensure greater oversight, and implement a training program for trustees.

The Attorney General’s investigation found that David Richenthal, the son of founder Arthur Richenthal, improperly obtained close to $500,000 in personal benefits from the Foundation without oversight or intervention from the Foundation’s other trustees. According to the Attorney General’s investigation, Mr. Richenthal was reimbursed by the Foundation for approximately $240,000 in expenses, primarily for personal travel and entertainment costs, as well as other personal expenses. Mr. Richenthal also improperly had the Foundation make a $250,000 grant to settle a personal litigation matter with a former romantic partner. The investigation found that his misuse of the Foundation’s assets was made possible by the fact that the Foundation did not have adequate internal controls and its trustees failed to oversee Mr. Richenthal’s use of the Foundation’s charitable assets.

“When someone uses their trustee position to enrich themselves, it’s not just an abuse of trust – it's an abuse of the law,” said Acting Attorney General Underwood. “We will continue to pursue wrongdoing, protect charitable assets, and – as in this case – work with organizations that respond quickly and seriously to address misconduct.”  

As a result of the settlement, in which he admitted to the findings of the investigation, Mr. Richenthal agreed to pay an additional $150,000 in restitution to the Foundation above the approximately $400,000 that he had already paid back to the Foundation during the Attorney General’s investigation. In addition, Mr. Richenthal agreed to a permanent bar on his service as a director, officer, or other fiduciary of any not-for-profit organization operating in New York. 

Under the terms of the settlement, Mr. Richenthal is barred from having direct access to the Foundation’s assets. The Foundation has agreed to a number of reforms, including nonprofit training for its trustees, the expansion of its board to five members (at least two of which must be independent trustees), and the adoption of new internal control policies (in addition to other policies that were adopted during the course of the Attorney General’s investigation).

More information about the Attorney General’s Charities Bureau and organizations regulated by the Bureau may be found at www.charitiesnys.com

Council Member Jumaane D. Williams - DE BLASIO ANNOUNCES CHANGE IN NYC MARIJUANA ENFORCEMENT:

STATEMENT BY COUNCIL MEMBER WILLIAMS

 

"I want to commend the Mayor for today announcing that he will instruct the NYPD not to arrest New Yorkers for public marijuana usage, but rather to issue them a summons. This is one step in a larger process of correcting the many years of injustice that have led to hundreds of thousands of arrests in this city, disproportionately targeting communities and individuals of more color. Such significant, long overdue change will require a core, sustained commitment from the Mayor, the Council, the NYPD, District Attorneys, and many other agencies and offices. It will also require a state government that is willing to ultimately act for the public good by legalizing marijuana and expunging the records of those whose lives have been ruined by such arrests and charges."

"It is important to remember, as the politics and policy of marijuana undergo rapid, public change, that this is not simply the result of a progressive moment, but rather a movement. Bold advocates and elected officials have pushed for the decriminalizing and ultimately the legalization of marijuana for many years, and the progress being made in recent days and weeks comes as a result of their dedication and conviction. This movement will continue to push to ensure that political promises become active progressive policies regardless of shifting political winds. The hysteria and misinformation surrounding marijuana prohibition has clouded the issue of injustice for far too long, and it's time to clear the air and the records of those who have been targeted by illogical policies for years. 

"Should marijuana legalization becomes an eventual reality, it is essentially that the discriminatory actions surrounding its prohibition are not repeated. The industry should be open to all individuals and all communities, including those previously targeted for arrest under the illogical and inconsistent policies that we are working to correct."