Cryptocurrency Trader Sentenced To 42 Months

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that defendant JEREMY SPENCE, a/k/a “Coin Signals,” was sentenced to 42 months in prison for defrauding more than 170 victims in connection with various cryptocurrency funds that he operated. SPENCE previously pled guilty before U.S. District Judge Lewis A. Kaplan, who imposed today’s sentence.

According to the allegations contained in the Indictment and the Complaint, court filings, and statements made in court:

From November 2017 through April 2019, SPENCE solicited investors in various cryptocurrency investment pools that SPENCE had created and managed (the “Funds”). SPENCE solicited investments for several Funds, the largest and most active of which were the Coin Signals Bitmex Fund, a/k/a the “CS Mex Fund,” the Coin Signals Alternative Fund, a/k/a the “CS Alt Fund,” and the Coin Signals Long Term Fund. Investors who wanted to participate in a Fund would transfer cryptocurrency, such as Bitcoin and Ethereum, to SPENCE in order for SPENCE to invest it. 

SPENCE solicited more than $5 million through false representations, including that SPENCE’s crypto trading had been extremely profitable when, in fact, SPENCE’s trading had been consistently unprofitable.  For example, on January 28, 2018, SPENCE posted a message in an online chat group falsely claiming that his trading of investor funds over the past month had generated a return of more than 148%. As a result of this misrepresentation, investors transferred additional funds to SPENCE. In fact, over that same period of approximately one month, SPENCE’s trading resulted in net losses in the accounts in which he traded investor funds.

To forestall redemptions by investors, and to continue to raise money from investors to fund his scheme, SPENCE generated fictitious account balances, which he made available to investors online. Instead of accurately reporting the trading losses SPENCE was incurring, the account balances falsely indicated to investors that they were making money by investing with SPENCE. To hide his trading losses, SPENCE used new investor funds to pay back other investors in a Ponzi-like fashion. In total, SPENCE distributed cryptocurrency worth approximately $2 million to investors substantially from funds previously deposited by other investors. 

In addition to his prison term, SPENCE, 25, of Bristol, Rhode Island, was sentenced to three years of supervised released and restitution in the amount of $2,847,743.00.

Mr. Williams praised the investigative work of the Federal Bureau of Investigation and thanked the Commodity Futures Trading Commission, which brought a separate civil action. 

Statement from Governor Kathy Hochul on One Million American Lives Lost to COVID-19

 

"Today, our country marks an unthinkable milestone - one million lives lost due to COVID-19. These were mothers, fathers, children, siblings, friends and neighbors, and I don't want any more New Yorkers to go through the pain of losing a loved one to this awful virus.     

"Thankfully, we have the tools to fight COVID-19 and save lives. Vaccines and boosters are effective and provide the highest level of protection. More than 3 in 4 of all New Yorkers are fully vaccinated, and over half of all eligible New Yorkers have received a booster dose -- but that still isn't enough.       

"I encourage every New Yorker ages 5 and over to get vaccinated, and every New Yorker ages 12 and older to also get their booster doses if eligible. I know first-hand how tests can help stop the spread to our vulnerable loved ones, so be sure to get tested, and if you test positive, ask your doctor immediately about getting treatment.   

"These tools have made the difference, which is why it's critical that Congress pass additional federal funding to ensure that we are prepared to respond to COVID-19 in the future.    

"As we mark today's tragic milestone, let's remain vigilant against this virus and continue to look out for each other so we can move safely forward through this pandemic." 

EDITOR'S NOTE:

If we have all the tools and vaccines how then did you Governor Kathy Hochul catch COVID when you were vaccinated?

MAYOR ADAMS, CHANCELLOR BANKS ANNOUNCE COMPREHENSIVE APPROACH TO SUPPORTING STUDENTS WITH DYSLEXIA

First-Ever Investment to Support and Screen Dyslexic Students in New York City History

Announcement Comes on Heels of News That NYC Will Host World Dyslexia Assembly in Spring 2023 

 New York City Mayor Eric Adams and New York City Department of Education (DOE) Chancellor David C. Banks today announced the largest, most comprehensive approach to supporting public school students with dyslexia in the United States. For the first time, all New York City public school students will be assessed for being at risk of dyslexia, be supported in their neighborhood school, and receive specialized instruction through the development of special programs and academies. 

“As a student, I struggled with identifying my dyslexia until long after leaving the public school system. Today, we are announcing the most comprehensive approach to supporting dyslexic students in New York City to prevent students from experiencing that disadvantage,” said Mayor Adams. “By changing the way we approach dyslexia, we can unlock the untapped potential in students who may feel insecure about their dyslexia or any other language-based learning disabilities they may have.”

 

“Early screening ensures that every child who needs support will get the help and resources they need,” said Chancellor Banks. “These screeners are emblematic of this administration’s commitment to uplifting all of our students and making sure they are well equipped to succeed.”

 

“Every student deserves the resources and support needed to thrive in our schools,” said Deputy Mayor for Strategic Initiatives Sheena Wright. “Today’s announcement on Dyslexia Awareness Day brings us one step closer to living up to that promise. From universal screenings to first-of-its-kind pilots, New York City is leading the way in building a more equitable school system and committing to a comprehensive investment in dyslexic students.”

 

Beginning in fall 2022, the DOE will pilot two first-of-their-kind programs within New York City public schools, where 80 elementary schools and 80 middle schools across the city will receive targeted support and training to screen and identify students at risk for dyslexia and provide targeted interventions. Every student will participate in short, adaptive literacy screeners as part of the pilot at these schools.

 

All schools will be supported by district-based Academic Intervention Support coordinators on how to adjust core instruction and provide intervention when screeners, and other evidence of student work, indicate that students are not making adequate progress.

 

By offering accessible screening across the city, Mayor Adams and Chancellor Banks are breaking down a major barrier that has faced working families for many years. For the first time, every child from every zip code will have this important opportunity afforded to them, free of charge. Identifying student needs at an early age while breaking down cost barriers is a win for students, working families, and school communities across the city.

 

In addition, Literacy Academy Collective in P.S. 161 in the Bronx and Lab School for Family Literacy in P.S. 125 in Manhattan will both offer specialized programs for students with dyslexia and other language-based learning disabilities. The DOE will immediately move to build programs at additional schools with the goal of having at least one school offering specialized instruction in each borough by fall 2023.

 

Teachers are the city’s most valuable partners in reimagining literacy instruction in schools. By April 2023, all teachers in kindergarten through 12^th grade will participate in Made by Dyslexia’s two-hour introductory training. Teachers across the city will have opportunities to participate in training for evidence-based reading programs grounded in explicit phonics techniques, including Wilson and Orton-Gillingham. Teachers will receive additional job-embedded literacy support from trained literacy coaches across all grade levels in targeted schools. As previously announced, over the course of the next year, the DOE will require teachers in grades K-2 to have a phonics-based, proven foundational literacy curriculum.

 

Keeping Chancellor Banks’ promise, the DOE Central Literacy Team convened a Literacy Advisory Council of local community members, experts in literacy, public school staff, students, and parents to help guide the rollout of this and future literacy initiatives. Additionally, the DOE is launching a Dyslexia Task Force that will develop a policy paper on the New York City public schools’ vision and approach to supporting students at risk of and/or living with dyslexia inclusive of multilingual learners and students from communities of dense dialect. The DOE looks to have this done by August 2022.

 

This announcement is coming on the heels of the World Dyslexia Assembly that took place last week in Stockholm, Sweden. New York City will host the next assembly in spring 2023 as a sign of the city’s commitment to supporting dyslexic students citywide. Further details will be shared at a later date.

 

“This ambitious pilot program will ultimately allow students with dyslexia to be supported and gain more equal footing with their peers and in turn pave the way towards a more equitable education system,” said New York City Comptroller Brad Lander. “Identifying needs early and providing resources to educators will ensure that schools can provide the targeted support needed to help all students achieve their full academic potential.”

 

CONSUMER ALERT: Attorney General James Warns Against Price Gouging of Baby Formula

 

AG James Advises Parents to Speak to Doctor if Short on Formula, Encourages New Yorkers to Donate Excess Formula to Local Food Pantries 

 With increased shortages of baby formula due to recalls and supply chain disruptions, New York Attorney General Letitia James today warned retailers that price gouging is illegal. The Office of the Attorney General (OAG) is aware of reports of baby formula being sold online for prices far exceeding its retail value. Attorney General James urges New Yorkers to be on alert for potential price gouging of baby formula and to report any dramatic price increases to her office. In addition, Attorney General James encourages parents having difficulty finding formula to speak with their child’s doctor before attempting to water down formula or make their own, both of which can be potentially dangerous to a child. Attorney General James asks that anyone with extra unopened, unexpired formula consider donating it to their local food pantry.

“The national baby formula shortage is terrifying for parents concerned about how to feed their children,” said Attorney General James. “The last thing any family needs is to be price gouged on critical nutrition for their little ones, which is why I am putting profiteers seeking to take advantage of this crisis on notice. If New Yorkers see exorbitant price increases for baby formula, I encourage them to report it to my office immediately. Anyone who seeks to take advantage of this crisis is on notice. I also urge any parent who is struggling to find formula to speak with their child’s doctor before altering or using formula other than directed. If New Yorkers have excess unopened, unexpired formula, please consider donating it to your local food pantry to help families in need.”

New York law prohibits merchants from taking unfair advantage of consumers by selling goods or services that are vital to their health, safety, or welfare for an unconscionably excessive price. Due to the nationwide shortage, OAG advises consumers to buy only as much formula as they need and not to unnecessarily stock up as such panic buying may intensify the shortage and could encourage sellers to engage in illegal price gouging. The OAG also reminds consumers that it is not price gouging for retailers to limit the amount of formula they sell to individual consumers.

When reporting price gouging to OAG, consumers should:

•   Report the specific increased prices, the dates, and places that they saw the increased prices, and the types of formula being sold; and,
•   Provide copies of their sales receipts and photos of the advertised prices, if available.

New Yorkers should report potential concerns about price gouging to OAG by filing a complaint online or call 800-771-7755.

Manhattan Gang Member Convicted Of 2014 Murder Of Orlando Rivera

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced today the conviction of CHRISTIAN PABON, a/k/a “Banga,” of racketeering conspiracy and murder in aid of racketeering.  A unanimous jury convicted PABON of every count presented to the jury after a one-week trial before U.S. District Judge Sidney H. Stein.

U.S. Attorney Damian Williams said:  “For years, Christian Pabon terrorized his northern Manhattan neighborhood as a shooter in a violent street gang.  The jury’s verdict holds him accountable for his senseless violence, which injured two young people and ripped a father away from his family.  My office remains committed to combatting gang violence and seeking justice for victims.”

According to the Indictment and the evidence at trial:

PABON was a member of a street gang known as the “200.”  The 200 was based in the neighborhood around Dyckman Street in northern Manhattan.  Between 2014 and 2018, the 200’s members and associates engaged in armed robberies, shootings, pharmacy burglaries, assaults, and the distribution of heroin, crack, and other drugs.  PABON was one of the gang’s “shooters,” meaning that the gang called upon him to provide guns and commit violence against rivals. 

On October 2, 2014, PABON and other members of the 200 drove to their rival gang’s territory in the vicinity of 193rd Street in the Washington Heights neighborhood of Manhattan, intending to shoot at members of the enemy gang.  After driving to the area, PABON and three other members of the 200 approached the intersection of 193rd and Saint Nicholas Avenue on foot.  Upon reaching the intersection, PABON and Marcos Espinal, a/k/a “Ito,” who was also a member of the 200, fired at least 15 shots at a group of people standing in front of a bodega.  PABON and Espinal hit three people with their gunshots.  Two of the victims—a 17-year old girl and a 20-year old man—survived their injuries.  The third victim was Orlando Rivera, a 42-year old father and innocent bystander who was standing in front of the bodega.  Rivera was killed by a bullet to his back as he attempted to run away from the bullets that PABON and Espinal fired.  Espinal was previously prosecuted for his participation in this crime by the New York County District Attorney’s Office.

PABON, age 29, of Manhattan, was convicted of racketeering conspiracy, which carries a maximum sentence of life in prison, and murder in aid of racketeering, which carries a mandatory sentence of life in prison. 

Mr. Williams praised the investigative work of the Drug Enforcement Administration and the New York City Police Department.

Senate Majority to Pass Legislation to Strengthen Fire Safety and Prevention Measures

 

In response to the Bronx Apartment Fire in January

On Monday, May 11, the Senate Democratic Majority advanced legislation to improve guidelines, oversight, and enforcement necessary for preventing house fires. The proposed bills would update the fire prevention and building code more frequently; expand remedies for code violations; address investigations into the administration and enforcement of these codes; establish new emergency contact requirements for managers of multi-family buildings; increase testing of fire hydrants; institute new requirements for the inspection of non-fireproof buildings; strengthen space-heater safety regulations, and establish an Ombudsperson for Local Code Enforcement Programs and increase the code enforcement powers of the Secretary of State.

 

This package comes in the wake of several deadly blazes in New York, most notably the Bronx apartment fire on January 9 of this year. This tragedy, which claimed 17 lives, including 8 children, was caused and compounded by multiple safety regulation failures. New York surpasses the national average for fire-related injuries and deaths, with 68 casualties reported already this year. These disasters often affect immigrant and low-income populations, who are less able to absorb the costs of displacement and rebuild in the aftermath of a disaster. This legislation furthers the New York Senate Majority’s efforts to raise the floor for our most vulnerable, and improve the quality of life for everyone in our State.

“It has been over thirty years since the penalties for housing standards were established in New York City, and since that time our community has experienced immense tragedy due to negligence and lack of adherence to these policies. While we can never remove the pain and suffering for the families of the 17 lives claimed in the Twin Parks fire in my district in The Bronx, we can do everything possible to prevent this tragedy from happening again. Today, my bill S.8795A, will increase the antiquated penalties and provide an incentive for adherence to housing code standards. Our families deserve to live in safe and stable housing,” said State Senator Gustavo Rivera, sponsor of bill S.8795A, one of the 10 measures included in this bill package.

The Senate Majority passed the following legislation:

Violations Of Building and Fire Code Standards: This bill, S.8795A, sponsored by Senator Gustavo Rivera, imposes certain penalties related to violations of building and fire code standards within fourteen days and increases certain fine amounts for violations of housing standards in New York City.

Fire Safety Standards for Space Heaters: This bill, S.7863A, sponsored by Senator Cordell Cleare, requires space heaters distributed or sold in the state or to persons located in the state to have thermostats, automatic shut-offs and be certified by a testing and certification body recognized and approved by the United States Department of Labor, Occupational Safety and Health Administration.

Fine Increase For Building Code Violations: This bill, S.4708, sponsored by Senator Leroy Comrie, expands remedies for violations of New York State uniform fire prevention and building code and addresses penalties for willful or repeated code violations. 

Update to State Uniform Fire Prevention and Building Code: This bill, S.6210A, sponsored by Senator James Skoufis, directs the state fire prevention and building code council to update the state fire prevention and building code and the state energy conservation construction code within 12 months of the publication of any updated or revised edition of the international and national codes relating thereto, so as to ensure that the state's codes reflect such revisions and updates.

Investigations into Fire Prevention and Building Code Administration: This bill, S.1830, sponsored by Senator James Skoufis, relates to conducting investigations into the administration and enforcement of the New York State uniform fire prevention and building code and the New York state energy conservation construction code.

Safety For Multi-Residential Homes: This bill, S.240B, sponsored by Senator Shelley Mayer, requires owners and agents of multiple residences and multiple dwellings to provide names and contact information of residents to emergency personnel in an emergency situation, so as to ensure that residents are safely evacuated and accounted for.

Fire Hydrant Systems Test: This bill, S.5093A, sponsored by Senator Tim Kennedy, increases the Testing of Fire Hydrant Systems in accordance with the standards established by the National Fire Protection Association.

Non-Fireproof Inspections: This bill, S.6089A, sponsored by Senator Robert Jackson, requires the inspection of non-fireproof buildings and compliance with the New York property maintenance code.

Fire Protection System Installation Licenser: This bill, S.6761A, sponsored by Senator Diane Savino, creates a licensing and regulatory structure for fire suppression systems that require professionals who perform work on fire suppression systems to be licensed.

Increasing State Code Enforcement Powers: This bill S.3606, sponsored by Senator Jamaal Bailey, establishes an Ombudsperson for Local Code Enforcement Programs and Increases the Code Enforcement Powers of the Secretary of the State.

Consumer Alert: NYS Division of Consumer Protection Offers Guidance to Parents During Baby Formula Shortage

 

The New York State Division of Consumer Protection today issued guidance to parents who are experiencing frustration over the national baby formula shortage.

New Yorkers need to be aware of unscrupulous practices from individuals who are using the baby formula shortages to scam desperate parents. These scams are typically rooted in online sales, and private sellers who are marketing cans for double the price knowing that big retailers have empty shelves and little information about when they may receive the next shipment.

“Parents, feeling the pressures of the shortage, may find themselves scrambling to find alternative solutions but in the end could end up being scammed by unscrupulous bad actors online,” said Secretary of State Robert J. Rodriguez. “At a time when there is a national shortage of baby formula, it is imperative that parents and guardians be aware of scams and know how to spot illegitimate online sales.”

Here are some important tips to help consumers make informed decisions:

Safety check the product: Make sure the formula you are buying is not subject to a recall. Information on recent  formula recalls can be found on the FDA website. Confirm the formula is new and still sealed in a tamper proof container. Check the expiration date and be certain the product won’t expire before you are able to use it all. 

Beware of social media: In the era of social media marketing, sham businesses and scam artists can easily contact unwitting consumers. According to the Federal Trade Commission, more than one in four people who reported losing money to fraud in 2021 said it started on social media with an ad, a post, or a message. If you receive a direct message with an offer to sell you formula or if you see formula for sale on an online marketplace, be especially cautious. Try to arrange for an in-person meeting, so you can be sure you receive the products you’re buying. 

Use caution when shopping online: Shop on trusted sites with retailers known to you. Do your research if you want to try a new site or retailer. Performing a broad internet search will provide you with important feedback from other customers. Are there any reviews? How is the company responding to its customers? Read the comments within any social media advertisements. This will help you assess what to expect if something goes wrong, and if the comments are turned off, that’s a big red flag.

Beware of Fake Websites: Fraudsters continue to advance in sophistication to perpetuate scams, fake websites resemble legitimate sites, with very credible-looking logos, pictures, and payment options. If the website is advertising unusually low prices, consumers should be wary and diligently verify the legitimacy of the seller. Consumers should review the copyright date and domain creation date, as recently created sites are a tell-tale sign of scam sites, and typos on the web site are a red flag that it may not be legitimate.

Beware of third-party vendors: If redirected from a trusted site to a third-party site. Read the sellers policies, review ratings, and consumer comments, and most importantly, do a broad internet search before making your purchase. Trusted retailers who host third party sellers do not warranty their sales, thus you could get a substandard product or no product at all when you take the risk and purchase from an unknown third-party vendor.   

Read the product specifications:  Online marketing is geared to get you to buy so it is important to understand the product you are purchasing and the terms of the sale to ensure you are getting what you want. Is the brand and type of formula being sold what you are looking for? Is the size of the product you are buying the same as what you are expecting? 

Use a Credit Card: For online purchases, be sure to use a credit card rather than a debit card. If the item that arrives is different than what you ordered or you don’t receive the item at all, dispute the charge with your credit card provider. 

Know Your Rights: The Federal Mail, Internet, or Telephone Order Merchandise Rule (the Mail Order Rule) of 1975, updated in 2014 to include online orders, applies to merchandise sold to consumers online, by mail or by phone. It states that your order must be delivered within 30 days unless otherwise stated. If there is a delay, you must be notified. If the company cannot reach you to obtain your consent to the delay, they must, without being asked, promptly refund all the money you paid for the unshipped merchandise. 

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. 

For more consumer protection tips, follow the Division on social media at Twitter: @NYSConsumer and Facebook: www.facebook.com/nysconsumer.

Attorney General James’ Statement on Donald Trump Contempt Order

 

 New York Attorney General Letitia James released the following statement after Justice Engoron today ordered Donald J. Trump to pay a contempt fine to the Office of the Attorney General (OAG) for his refusal to comply with OAG’s subpoenas. The subpoenas were issued as part of OAG's ongoing investigation into allegations of financial fraud and misrepresentations involving Mr. Trump and the Trump Organization. Justice Engoron ruled that the contempt finding against Mr. Trump is conditionally purged if he satisfies a number of conditions by May 20, 2022, including payment of $110,000 in fines to OAG.

“Reaffirming a ruling holding Donald J. Trump in contempt, a judge has ordered Mr. Trump to pay my office for his refusal to comply with our subpoenas,” said Attorney General James. “For years, Mr. Trump and the Trump Organization have tried to thwart our lawful investigation, but today’s decision makes clear that no one can evade accountability. We will continue to enforce the law and seek answers as part of this investigation.”

In addition to paying the contempt fine, Mr. Trump was ordered, as a condition of purging his contempt, to provide additional affidavits with more detail about the document searches conducted by his team and the destruction and retention policies that they followed, and a review of documents by a third party must be complete. If these conditions are not met by May 20, 2022, the fine of $10,000 a day will be reinstated.