North Dakota Man Convicted Of Laundering Over One Million Dollars From Schemes Targeting Victims Across The United States Perpetrated By Ghana-Based Criminal Enterprise

 

Defendant Received Over $1 Million Dollars into Several Bank Accounts He Controlled and Through Coconspirator Cash Deliveries in the Bronx, New York, Which Primarily Consisted of Proceeds of Romance Schemes Targeting Elderly Victims

 Damian Williams, the United States Attorney for the Southern District of New York, announced that SADICK EDUSEI KISSI was convicted today of three criminal counts he was charged with for his participation in a conspiracy based in the Republic of Ghana (“Ghana”) involving the theft of more than one million dollars.  KISSI was convicted after a jury trial before U.S. District Judge Paul A. Crotty which lasted approximately one week.  KISSI was previously arrested on February 5, 2021.  

As reflected in the Indictment, public filings, and the evidence presented at trial:

From in or about 2014 through in or about February 2020, a criminal enterprise (the “Enterprise”) based in Ghana committed a series of romance scams against individuals and businesses located across the United States, including in the Southern District of New York.  The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise.  Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise like KISSI. 

KISSI received money sent by victims of the Enterprise under false pretenses into personal bank accounts located in the Bronx, New York.  The defendant also received criminal proceeds from other U.S.-based members of the Enterprise by cash deliveries.  Once KISSI received these funds, he took out a percentage fee and then withdrew, transported, and laundered those criminal proceeds to other members of the Enterprise, in order to send those funds abroad to Ghana. 

From in or about 2015 through in or about 2020, KISSI controlled more than eight bank accounts that had deposits that totaled over approximately $1 million during that time period.  A substantial portion of the deposits consisted of large wire transfers and check or cash deposits from U.S.-based individuals and entities that were victims of schemes of the Enterprise.   

KISSI, 25, of Dickinson, North Dakota, was convicted by a jury of one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to receive stolen money, which carries a maximum sentence of five years in prison.  KISSI was also acquitted of one count of conspiring to commit wire fraud.

KISSI will be sentenced before Judge Crotty at a later date.

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.

Mr. Williams praised the outstanding investigative work of the FBI.

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - JUNE 2, 202

 

Statewide Cases, Hospitalizations and Admissions All Down

Cases Down 30 Percent Over Last Week Versus Prior Seven Days

7-Day Average Case Rate Consecutively Dropped Over Past 16 Days, Continue to Decline Across All Regions

COVID-19 Admissions Down 18 Percent Over Last Week Versus Prior Seven Days

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.

"While numbers are heading in the right direction, we remain vigilant against this virus and continue to boost our preparedness for any potential surges later this year," Governor Hochul said. "I encourage New Yorkers to keep using the tools we have available to us to keep each other safe and healthy. Be sure to get fully vaccinated and keep up to date with booster doses to protect yourself and your loved ones from serious illness and hospitalization. Test often, especially if you are experiencing symptoms, and if you test positive, talk to your doctor about available treatments." 

Today's data is summarized briefly below:     

• Cases Per 100k - 29.74
• 7-Day Average Cases Per 100k - 30.32
• Test Results Reported - 98,261
• Total Positive - 5,812
• Percent Positive - 5.78%**  
• 7-Day Average Percent Positive - 6.73%**
• Patient Hospitalization -  2,409 (-50)
• Patients Newly Admitted - 425
• Patients in ICU - 219 (-19)
• Patients in ICU with Intubation - 80 (-5)
• Total Discharges - 308,012 (+412)
• New deaths reported by healthcare facilities through HERDS - 20
• Total deaths reported by healthcare facilities through HERDS - 56,128  

** Due to the test reporting policy change by the federal Department of Health and Human Services (HHS) and several other factors, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.     

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.      

Important Note: Effective Monday, April 4, the federal Department of Health and Human Services (HHS) is no longer requiring testing facilities that use COVID-19 rapid antigen tests to report negative results. As a result, New York State's percent positive metric will be computed using only lab-reported PCR results. Positive antigen tests will still be reported to New York State and reporting of new daily cases and cases per 100k will continue to include both PCR and antigen tests. Due to this change and other factors, including changes in testing practices, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.  

• Total deaths reported to and compiled by the CDC - 71,655       

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.      

• Total vaccine doses administered - 38,956,967
• Total vaccine doses administered over past 24 hours - 16,490
• Total vaccine doses administered over past 7 days - 108,338
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 92.6%  
• Percent of New Yorkers ages 18 and older with completed vaccine series - 84.0%  
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 95.0%  
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 87.4%  
• Percent of New Yorkers ages 12-17 with at least one vaccine dose (CDC) - 83.7%  
• Percent of New Yorkers ages 12-17 with completed vaccine series (CDC) - 73.6%  
• Percent of all New Yorkers with at least one vaccine dose - 82.1%  
• Percent of all New Yorkers with completed vaccine series - 74.5%  
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 90.6%  
• Percent of all New Yorkers with completed vaccine series (CDC) - 77.4%  

Each New York City borough's 7-day average percentage of positive test results reported over the last three days is as follows **:   

Borough	Monday, May 30, 2022	Tuesday, May 31, 2022	Wednesday, June 1, 2022
Bronx	4.01%	4.15%	4.07%
Kings	5.59%	5.80%	5.28%
New York	6.46%	6.49%	6.51%
Queens	6.03%	6.09%	6.20%
Richmond	6.43%	6.36%	6.11%

Affordable Housing Lottery Launches For 1985 Honeywell Avenue In West Farms, The Bronx

 

The affordable housing lottery has launched for 1985 Honeywell Avenue, an eight-story mixed-use building in West Farms, The Bronx. Designed by Fred Geremia Architects & Planners and developed by Durgaj Properties, the structure yields 33 residences. Available on NYC Housing Connect are 10 units for residents at 130 percent of the area median income (AMI), ranging in eligible income from $60,000 to $187,330.

Amenities include assigned parking spaces, bike storage, elevator, digital intercom system, a shared laundry room, and storage. Tenants are responsible for electricity.

At 130 percent of the AMI, there are two studios with a monthly rent of $1,750 for incomes ranging from $60,000 to $138,840; six one-bedrooms with a monthly rent of $1,850 for incomes ranging from $63,429 to $156,130; and two two-bedrooms with a monthly rent of $2,000 for incomes ranging from $68,572 to $187,330.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than June 21, 2022.

MAYOR ADAMS, ADMINISTRATION OFFICIALS CELEBRATE PASSAGE OF NYCHA PUBLIC HOUSING PRESERVATION TRUST IN ALBANY .

 

  New York City Mayor Eric Adams today celebrated the state Legislature’s passage of the New York City Housing Authority (NYCHA) Public Housing Preservation Trust legislation, A7805D/S9409A. The bill passed the New York State Senate today on 38-25 vote, after passing the Assembly yesterday on a 132-18 vote.

 

“For decades, NYCHA residents have been promised repair after repair that never materialized, but, with the Public Housing Preservation Trust, we will finally deliver on those promises and offer NYCHA residents the dignity and safe, high-quality, affordable homes they deserve,” said Mayor Adams. “My administration fought tirelessly alongside residents and our partners in Albany to pass this bill that will unlock critical resources, with legal protections, to keep residents at the center of the process of improving their homes. NYCHA residents deserve a menu of options to choose the approach and the tools that they think will best deliver the quality of life they deserve, and, with Governor Hochul’s signature, the Public Housing Trust will be a major addition to that menu. Thank you to all of our partners in Albany for making real change for tens of thousands of New Yorkers and to the NYCHA residents who stood up to ‘Get Stuff Done.’”

 

“This is an incredible moment for the residents of NYCHA and New York City as a whole. Through the Trust legislation, NYCHA residents are the only people who will decide the future of their homes going forward — they finally have choices and the power to drive the conversation on how their homes are preserved,” said New York City Chief Housing Officer Jessica Katz. “NYCHA housing is our most vital affordable housing stock, and the NYCHA Preservation Trust will allow us to ensure these homes not only exist long into the future but also remain permanently affordable for thousands of families. After years of relying on the whims of Congress, NYCHA residents will finally get the repairs they deserve and homes they can be proud of once again. We anchored the rights of public housing residents at the heart of this bill to ensure that while New Yorkers see their quality of life vastly improved through the Trust, they are not sacrificing any of their rights. This is a long-term, permanent solution for NYCHA. Thank you to our allies in Albany and, most importantly, the NYCHA residents who have advocated for themselves, their families, and their communities to preserve public housing in New York City.”

 

“This is a momentous event in the history of public housing — in New York City and across the nation,” NYCHA Chair and CEO Gregory Russ. “The passage of the Public Housing Preservation Trust gives NYCHA the ability to raise billions of dollars in capital funds to invest in its properties and residents a true voice in the future of their homes. With the support of New York City Mayor Eric Adams, New York State Governor Kathy Hochul, NYCHA residents, community leaders, and advocacy partners, the New York State Senate and Assembly have led the way with the vision and courage necessary to put an end to decades of disinvestment and the status quo and, most importantly, to transform the quality of life for public housing residents. NYCHA is profoundly grateful to bill sponsors Assemblymember Steven Cymbrowitz and Senator Julia Salazar, as well as the New York State Legislature and all of our partners for making possible real change and lasting solutions for public housing residents in New York City.”

 

The Preservation Trust would be a new, entirely public entity that would unlock billions of dollars in federal funding to accelerate repairs and make long-overdue investments for tens of thousands of NYCHA residents across all five boroughs. The legislation would keep NYCHA residents at the center of the Trust’s implementation process, preserving all resident rights and protections, including a guarantee that no NYCHA resident will have to pay more than 30 percent of their income towards rent. NYCHA needs over $40 billion to fully restore and renovate all its buildings.

 

The legislation also includes over a dozen changes recommended by resident leaders, including:

• A first-in-the-country resident opt-in voting process, under which residents will have the right to vote on any proposed changes to their development;
• Resident participation in vendor selection; and
• Resident representation on quality assurance committees.

 

Passage of the Trust would allow NYCHA to double the amount of federal subsidy it receives while remaining entirely public by switching to project-based Tenant Protection Voucher funding. It will also provide NYCHA with improved procurement rules that would reduce costs, speed up construction timelines, and allow faster responses to resident requests. NYCHA would continue to own all residential complexes and the land on which they are built, with NYCHA employees continuing to manage the properties. The Trust would have a publicly appointed nine-member board, which includes four resident members.

INVESTOR ALERT: Attorney General James Warns New Yorkers About Cryptocurrency Investment Risks

 

Investors Lost Hundreds of Billions in Cryptocurrency Investments as the Market Reached Record Lows

 New York Attorney General Letitia James today issued an alert to New Yorkers to remind them of the dangerous risks of investing in cryptocurrencies after the market reached record lows last month and investors lost hundreds of billions. Cryptocurrencies are subject to extreme and unpredictably high price swings that make them among the most high-risk investments on the market. Last month, some of those risks materialized as the price of multiple virtual currencies — from the newest coins to the most well-established coins — plunged deeply and wiped away hundreds of billions in investments. This is not the first time the market has plunged. To protect New Yorkers from this extreme volatility, Attorney General James offers New Yorkers guidance on the various risks associated with cryptocurrencies.

“Over and over again, investors are losing billions because of risky cryptocurrency investments,” said Attorney General James. “Even well-known virtual currencies from reputable trading platforms can still crash and investors can lose billions in the blink of an eye. Too often, cryptocurrency investments create more pain than gain for investors. I urge New Yorkers to be cautious before putting their hard-earned money in risky cryptocurrency investments that can yield more anxiety than fortune.”

The virtual currency market exposes investors to dangerous risks, such as wild price swings and potential losses due to hacking, fraud, or theft. Even “legitimate” investments in virtual assets are subject to speculative bubbles and security issues. Investors in virtual assets should beware of the many significant risks of investing in these products including:

• Highly Speculative and Unpredictable Value: Virtual currencies are easy to create and spread in the market quickly. Their underlying value is highly subjective and unpredictable. As a result, prices can swing wildly and crash without warning and without regard to any changes in the real economy. At times, price fluctuations are driven by market hype on various social media platforms.
• Difficulty Cashing Out Investments: There is no guarantee that you will be able to liquidate your investments when you want — such as when the crypto markets begin to crash. During times of crisis, trading platforms may halt trading or purport to experience technical difficulties, preventing you from accessing your assets.
• Higher Transaction Costs: Some trading platforms charge fees on transactions such as transferring funds and withdrawing money. These fees can vary depending on the size of the transaction and overall trading volume. Therefore, it may also cost you more to access your assets when you need them the most.
• Unstable “Stablecoins”: Despite their misleading name, there is no guarantee that your stablecoin investment is protected from decreasing value. The nature and quality of the assets backing stablecoins — if there are any assets backing the stablecoin — can vary greatly and along with that so can the risks associated with holding such coins. 
• Hidden Trading Costs: Value in cryptocurrencies and other virtual assets may be propped up by automated trading, or bots, that are, for example, programmed to spot when another trader is trying to make a purchase and then buy ahead of the trade. This practice can push up the price and cost you more to purchase the same virtual asset.
• Conflicts of Interest: Many operators of virtual currency trading platforms are themselves heavily invested in virtual currencies, and trade on their own platforms without oversight. The financial interests of these operators may conflict with your interests. There have also been recent reports of large investors receiving favorable treatment, such as private cash-outs away from the market.
• Limited Oversight: There are no federally regulated exchanges, like the New York Stock Exchange or Nasdaq, for virtual currencies. Virtual currency trading platforms operate from various places around the world, many of which are not easily accessible to American law enforcement. Many platforms are subject to little or no oversight. If you are the victim of fraud on one of these exchanges, you will likely have no recourse in the United States.  Further, many issuers of virtual currencies are not regulated and therefore are not subject to net capital requirements or examinations. Thus, people who lose money trading a certain virtual currency may have no recourse with respect to the issue of the currency.

Today’s investor alert continues Attorney General’s James efforts to regulate the cryptocurrency industry and protect New York investors. Earlier this year, Attorney General James issued a taxpayer notice to virtual currency investors and their tax advisors to accurately declare and pay taxes on their virtual investments. In October 2021, Attorney General James directed unregistered crypto lending platforms to cease operations for not fulfilling their legal obligations. In March 2021, Attorney General James warned New Yorkers of the risks of cryptocurrency investments and reminded investment platforms of their legal obligations.

Additionally, in 2018, the Office of the Attorney General (OAG) released its “Virtual Markets Integrity Initiative” report, a more detailed overview of the virtual currency markets in New York and around the world. The report gives basic, but important information about how virtual currencies trade, and the risks investors face when they buy and sell, even on “legitimate” trading platforms. 

If you are worried that you or someone you love has been a victim of investment fraud, contact OAG’s Investor Protection Bureau immediately. If you have worked in the virtual assets industry and believe you may have knowledge of wrongdoing, contact OAG’s Investor Protection Bureau immediately or the online whistleblower portal.