THREE CONTRACTORS INDICTED IN FIRST BRONX CASE CHARGING MANSLAUGHTER AND CRIMINALLY NEGLIGENT HOMICIDE IN A CONSTRUCTION FATALITY

Victim Crushed By 1,000 Pounds of Debris in Egregiously Dangerous Building Site; Joint Investigation by NYC Department of Investigation and Bronx DA Found Builders Falsified Credentials/Permits and Flouted Safety 

 Bronx District Attorney Darcel D. Clark and New York City Department of Investigation Commissioner Jocelyn E. Strauber today announced that three contractors have been charged in the death of a construction worker at a Bronx building site in 2019, and a fourth man was charged with fraud in relation to the incident that allegedly resulted from blatant disregard for building safety codes and worker’s protections.

 District Attorney Clark said, “The horrendous death of Segundo Manuel Huerta Mayancela—buried under cinderblocks and metal sheets--was entirely preventable. The construction site at 94 East 208th St. was a deathtrap waiting to happen. An unqualified company allegedly used fraudulent credentials, ignored oversight requirements and building code, and built a dangerously unstable structure. Workers are not expendable. Along with our partners at the Department of Investigation, we will hold anyone accountable for putting workers at risk in an already hazardous profession.

 “The death of an Ecuadoran immigrant at a construction site led to the passage of Carlos’ Law, which creates greater accountability for tragic and avoidable injury to workers at New York construction sites and increases the penalties for criminal corporate liability for the death or serious physical injury of an employee, a felony or misdemeanor, by a fine of up to $500,000. The dangerous conditions presented in this case are precisely why Carlos’ Law was enacted, but this case predates the statute. In the future any construction-related fatalities in the Bronx will be met with this important tool.”

 Commissioner Strauber said, “The City’s buildings codes are written to support and advance safety on construction sites. As charged, these defendants failed to follow the law and to carry out their most basic responsibilities, including to show up in person to ensure safety standards were being met. These failures resulted in dangerous conditions that could have been prevented, and ultimately led to the death of one worker, and injuries to five others. I thank the Bronx District Attorney’s Office for bringing this prosecution and the Department of Buildings for assisting in this important investigation. As these charges show, there are grave consequences for those who would treat the City’s construction safety regulations as merely optional.”

 Department of Buildings Acting Commissioner Kazimir Vilenchik P.E. said, “New York City has among the strongest construction safety regulations anywhere in the country. The defendants’ stunning disregard of even the most basic of these regulations in this case is reprehensible. The Department of Buildings is committed to bringing accountability to the construction industry, and our work in support of this indictment sends a strong message that negligence on the worksite will not be tolerated. My sincerest thanks to the Bronx District Attorney’s Office for bringing charges in this important case, and for their continued partnership helping us build a culture of safety in the industry.”

 District Attorney Clark identified the defendants as Augustine Adesanmi, 67, owner of Favored Design and Construction, engaged in the actual construction; Akhlak Choudhary, 54, owner of Pioneer General Construction, general contractor for the project; Abazi Okoro, 66, owner of Linzi Construction, construction superintendent at site; and Fatos Mustafaj, 64. Adesanmi is charged with second-degree Manslaughter, and he, Choudhary and Okoro are charged with Criminally Negligent Homicide; Adesanmi and Mustafaj are charged with seconddegree Grand Larceny and Choudhary is charged with four counts of Offering a False Instrument for Filing.

 Defendants Adesanmi, Okoro and Mustafaj were arraigned on April 11, 2023 before Bronx Supreme Court Justice Guy Mitchell and were put on Supervised Release. They are due back on June 8, 2023. Choudhary has not yet been arrested.

 According to the investigation, in early 2019, Atin Batra entered into a formal agreement to pay $1.2 million to Favored Design to construct a four-story, eight-unit residential building on a vacant lot he had purchased at 94 E.208th Street. Adesanmi and Mustafaj allegedly claimed that Favored Design was qualified to engage in new construction and would file necessary permits and proof of insurance. Favored Design did not have qualifications under the New York City Building Code to engage in construction of a new building, so they allegedly enlisted Choudhary, a qualified contractor, to obtain a permit. Four notarized documents containing false statements were filed in Choudhary’s name to obtain the building permit, including a forged insurance policy for the worksite.

 The Building Code requires the General Contractor to appoint a Construction Superintendent, a qualified outside professional who visits the site daily to ensure the work is being done according to the NYC Building Code and sound construction practices. Okoro, a former employee of the NYC Department of Design and Construction, allegedly was paid $3,000 for the use of his credentials, and allegedly never visited the site.

 During the spring and summer of 2019, work continued at the premises without a qualified General Contractor or Construction Superintendent monitoring the work. Adesanmi was the designated “competent person” and was supposed to be present at all times; on the day of the collapse, he was not there.

 According to the investigation, on August 27, 2019, workers were bringing cinder blocks and bricks from the second floor onto a work platform at the third floor. It was made of sheets of metal that were placed on top of metal joists. The joists were not properly secured to the structure. Workers had brought nearly a ton of material onto the platform when the unsecured joists fell forward and failed, causing the platform, the workers on the third floor and building materials on the front half of the building to fall onto the workers below.

 Several workers received serious injuries and Segundo Manuel Huerta Mayancela, a 46 year-old Ecuadoran immigrant, died as a result of blunt force trauma with crushing injuries.

 An indictment is an accusatory instrument and not proof of a defendant’s guilt.

U.S. Attorney Announces Agreement With The City University Of New York To Remedy The Exclusion Of A Student With Visual Impairments

 

CUNY Has Also Agreed to Implement Systemwide Reforms to Ensure Compliance with the Americans with Disabilities Act

 Damian Williams, the United States Attorney for the Southern District of New York, announced a voluntary compliance agreement under Title II of the Americans with Disabilities Act (“ADA”) with the City University of New York (“CUNY”) pursuant to which CUNY will provide individual relief to a student with visual impairments who was excluded from full participation in their academic courses and implement systemwide policies to ensure future compliance with the ADA across CUNY’s 25 colleges in the five boroughs of New York City, which collectively serve 243,000 students.

U.S. Attorney Damian Williams said: “It is simply unacceptable that any student should be denied equal access to an education because of a disability.  We are pleased that CUNY has agreed to provide relief to the student whose education was compromised and that CUNY is committed to improving the accessibility of its courses, including online and digital content, for all future students.”  

Title II of the ADA prohibits public entities from discriminating against any individual on the basis of disability by excluding the individual from participation in services, programs, and activities.  The ADA requires public entities to make reasonable modifications to avoid such discrimination and to administer their services, programs, and activities in the most integrated setting appropriate to the needs of qualified individuals with disabilities, including by furnishing appropriate auxiliary aids and services to ensure effective communication. 

The out-of-court agreement resolves an investigation during which the U.S. Attorney’s Office determined that CUNY failed to provide reasonable accommodations required under the ADA for a student with visual impairments at CUNY’s John Jay School of Criminal Justice and identified shortcomings in CUNY’s accessibility and reasonable accommodation policies and procedures.  Specifically, the investigation found, among other things, that CUNY failed to make qualified learning assistants available to ensure an integrated learning setting for the student in numerous science and mathematics courses.  Additionally, John Jay instructors required students to use WebAssign, a third-party online learning product, to complete assignments, but that digital platform was not fully capable of reading out mathematical and scientific symbols and equations.  Furthermore, John Jay repeatedly failed to make usable versions of required textbooks and other course materials available to the student by the start of courses.  The student made a number of attempts to bring the deficiencies to the attention of staff at John Jay and CUNY, but neither John Jay nor CUNY had adequate policies and procedures to ensure that reasonable accommodation requests and related complaints are addressed in a timely and appropriate manner.  As a result, the student received unduly poor grades and was forced to forgo taking other desired and required advanced courses for a number of academic years.        

CUNY has agreed to prepare and implement systemwide policies to ensure improved accessibility of educational content to visually impaired students, including digital learning content, proper training of staff and faculty, and effective reasonable accommodation and complaint procedures.   

Under the agreement, CUNY will permanently purge all of the affected student’s grades in the relevant courses in which reasonable modifications were not provided and pay the student $10,000 in compensatory damages.  CUNY will also adopt systemwide policies and procedures to ensure:

• The prompt availability of qualified learning assistants, including by initiating an appropriate and timely search process, involving the relevant affected students in that process, and setting a reasonable level of compensation likely to attract qualified candidates;   
• The prompt availability of accessible course materials by the start of the relevant course or as soon as practicable based upon early consultations with affected students;
• Reasonable accommodation and complaint mechanisms based on clear, short deadlines by which accommodation requests and complaints must be addressed and remaining concerns are promptly escalated to higher-level administrators as necessary;
• Information Technology accessibility consistent with the latest Web Content Accessibility Guidelines, including via verification of the accessibility of third-party learning products and of instructors’ awareness of accessibility requirements for instructor-created content; and
• Training of faculty and accessibility-services staff on ADA requirements.  

NYS Office of the Comptroller DiNapoli: Temporary Federal Spending Drives Up NY's National Ranking in States' Balance of Payments

 

State Received $1.51 for Every $1 Sent to Washington, Ranks 3rd

for Tax Payments Made to Federal Government

The surge in federal spending in response to the COVID-19 pandemic significantly improved New York’s per capita ranking in the federal balance of payments from 49^th in 2019 to 30^th in Federal Fiscal Year (FFY) 2021, according to a report released by State Comptroller Thomas P. DiNapoli. For every dollar New York sent to the federal government in tax receipts, it received $1.51 back in federal spending, as compared to a national average of $1.70. DiNapoli’s report found that for the second year in a row, all states had a positive balance of payments thanks to the emergency federal relief aid.

“New York’s per capita ranking jumped because of pandemic funding for fiscal recovery, economic support, Medicaid and vaccine manufacturing contracts,” DiNapoli said. “This significant improvement reflects short-term measures, however, not enduring policy changes. As the temporary aid winds down, the underlying trends are likely to return, with New York reverting to getting far less from Washington than it sends.” 

New York’s FFY 2021 per capita contribution to the federal treasury was $14,753, and it received $22,208 in federal spending per capita, for a positive balance of payments of $7,455 per capita. New Mexico ranked first in the balance of payments with a $18,878 per capita surplus followed by Hawaii ($15,945), and Virginia ($15,159). Utah ranked 50^th with $3,042, New Hampshire at 49^th with $3,263 and New Jersey at 48^th with a $3,600 per capita surplus.

Federal Spending

Overall, New York received 6.8% of total federal spending examined in FFY 2021, up from 6.4% in the prior year and higher than its share of the population (6%). At $22,208, per capita federal spending was 13.7% higher than the national figure of $19,524. New York ranked eighth in per capita federal spending, up from 17^th in FFY 2020. The improvement was primarily due to increased federal spending in the state in response to the COVID-19 pandemic.

Compared to FFY 2020, per capita federal spending in New York rose by two-and-a-half times the national average. Major pandemic-related spending that was higher in New York relative to other states includes:

• $2,587 per capita for unemployment compensation;
• $1,219 per capita through the Paycheck Protection Program;
• $998 per capita through State and Local Fiscal Recovery Funds;
• $393 per capita in student loan costs from payment waivers; and
• $256 per capita for Restaurant Revitalization and Shuttered Venues Operations.

In FFY 2021, federal spending on Medicaid in New York was close to $47.1 billion or $2,373 per capita, more than one-and-a-half times the national average of $1,559, ranking it third among the states.

Tax Payments to Washington

New York generated 7.7% of the $3.8 trillion in federal tax payments, more than the state’s 6% share of the nation’s population in 2021. At $14,753, New York’s per capita contribution to the federal treasury was third highest among the states and 28.6% more than the national average. The rank is up from fourth in 2020, due primarily to increased income tax payments.

Connecticut had the highest per capita contribution to the federal treasury at $16,916, followed by Massachusetts with $16,314. Mississippi generated the lowest per capita total tax payments at $6,575. New York’s total payments of $293 billion ranked third among the states behind California and Texas.

New York’s individual income tax payments of over $165 billion represented 8.1% of total federal receipts from these taxes. New York’s payments increased by 22.2%, compared to a national increase of 27.4%. New York’s per capita individual income tax payments of $8,332 were more than 36% higher than the national average of $6,114. New York ranked fifth among the states in this category.

New Yorkers’ payments of $87.3 billion were 6.7% of the total federal receipts from social insurance taxes. New York’s per capita contribution for such payments, $4,403, was 11.9% above the national average of $3,935, ranking it 10^th among all states in this category.

Corporate income taxes made up $372 billion, or 9.8%, of total federal receipts from the states in FFY 2021, with $33.6 billion or 9% of that from New York, ranking first on a per capita basis. On total and per capita measures, New York paid the highest corporate income taxes in the 10-year history of this report.

Prior Reports

DiNapoli’s seventh report in this series details the differences among the 50 states and what they pay in federal taxes and how much they receive in federal spending. Past reports put New York’s negative balance of payments at $19.9 billion in FFY 2013, $40.9 billion in FFY 2016, $24.1 billion in FFY 2017, $26.6 billion in FFY 2018 and $23.7 billion in FFY 2019. DiNapoli’s analysis for FFY 2020 was the first time a positive balance was reported, $146.2 billion, and this year's report shows a positive balance of $147.9 billion.

Report

New York’s Balance of Payments in the Federal Budget: Federal Fiscal Year 2021

Interactive Map with Balance of Payments Breakdown in the United States

Attorney General James Secures $462 Million from JUUL for Its Role in the Youth Vaping Epidemic

 

JUUL to Pay $462 Million to Six States and D.C., New York to Receive $112.7 Million

Funds Will Help Young New Yorkers Quit Vaping and Support Underage Vaping Abatement Programs

New York Attorney General Letitia James today secured the largest multistate agreement with JUUL Labs Inc. (JUUL) and its former directors and executives for their alleged role in contributing to the youth vaping epidemic that led to a rise in underage e-cigarette vaping nationwide. As part of a multistate agreement co-led by Attorney General James and California Attorney General Rob Bonta, JUUL will pay $462 million to six states and the District of Columbia. New York will receive $112.7 million, which will support underage vaping abatement programs across the state. The agreement also requires JUUL to secure JUUL products behind retail store counters and verify the age of consumers that directly sell or promote its products online. The agreement is the largest multistate settlement with JUUL and places the most stringent restrictions on JUUL’s marketing, sales, and distribution practices in order to protect and prevent minors from underage vaping.

“JUUL lit a nationwide public health crisis by putting addictive products in the hands of minors and convincing them that it’s harmless — today they are paying the price for the harm they caused,” said Attorney General James. “Too many young New Yorkers are struggling to quit vaping and there is no doubt that JUUL played a central role in the nationwide vaping epidemic. Today’s agreement will help young New Yorkers put their vapes down for good and ensure that future generations understand the harms of vaping. I thank my fellow attorneys general for their collaboration on this effort to protect the health and well-being of our communities.”

In November 2019, Attorney General James sued JUUL for its deceptive and misleading marketing that glamorized vaping with colorful ads featuring young models using fruity, sweet, and minty flavors that appealed to youth. JUUL misled consumers about the nicotine content of its products, misrepresented the safety and therapeutic value of its products by stating that they were safer than cigarettes, and failed to prevent minors from purchasing its products in stores across the country.

The lawsuit alleged that JUUL’s conduct violated New York’s General Business Laws, which prohibit deceptive acts and practices and false advertising; Common Law Public Nuisance, which prohibits substantial and unreasonable interference with the public health; and Executive Law § 63(12), which prohibits repeated and persistent fraud and illegality, based on violations of the New York Public Health Law prohibiting underage sales of tobacco products to minors.

In addition to marketing to young New Yorkers, JUUL engaged in direct outreach to high school students, including in at least one New York City school, where a JUUL representative falsely told high school freshmen that its products were safer than cigarettes. JUUL’s pervasive launch and ad campaign reached teenagers across the country, who then introduced JUUL’s products to their peers in rapid numbers.

After JUUL launched in 2015, e-cigarette use in New York City high school students increased three-fold from 8.1 percent in 2014 to 23.5 percent by 2018. By 2019, the proliferation of vaping led to a national outbreak of severe vaping-related illnesses, with more than 2,500 hospitalizations. In October 2019, a 17-year-old male from the Bronx died due to a vaping-related illness, making him the first reported vaping-related fatality in New York, and the youngest vaping-related fatality in the United States. The New York State Department of Health reports that more than 1 in 5 high school students reported vaping in 2020. The Centers for Disease Control and Prevention (CDC) report that more than 1 in 7 high school students use e-cigarettes as of 2022.

Today’s agreement requires JUUL to pay $462 million to six states and the District of Columbia. New York will receive $112.7 million over an eight-year period. JUUL is required to make its first payment to the states within 90 days of the effective date of the agreement followed by seven annual payments.

The agreement also has stringent restrictions on JUUL’s sales and marketing abilities, including requiring JUUL to:

• Refrain from any marketing that directly or indirectly targets youth, including using anyone under the age of 35 in promotional material or funding, operating youth education/prevention campaigns, or sponsoring school related activities,
• Limit the amount of retail and online purchases an individual can make,
• Perform regular retail compliance checks at five percent of New York’s retail stores that sell JUUL’s products for at least four years,
• Treat synthetic nicotine as nicotine,
• Refrain from providing free or nominally priced JUUL pods as samples to consumers,
• Exclude product placement in virtual reality systems, and
• Increase funding to a document depository by up to $5 million and add millions of relevant documents to the depository to inform the public on how JUUL created a public health crisis.

In addition, the agreement’s restrictions on JUUL are binding on JUUL’s former directors and executives, Adam Bowen, Hoyoung Huh, James Monsees, Nicholas Pritzker, and Riaz Valani, and any business they control that sells nicotine products. 

“This settlement is an important step in holding JUUL accountable for fueling the youth e-cigarette epidemic with its flavored, nicotine-loaded products and youth-oriented marketing,” said John Bowman, Executive Vice President of U.S. Programs, Campaign for Tobacco-Free Kids. “We applaud Attorney General James for her leadership in shining a spotlight on JUUL’s wrongdoing and forcing the company to change its harmful practices. By requiring the disclosure of previously secret JUUL documents and providing funding for youth vaping prevention programs, this settlement can have a particularly significant impact in protecting the health of our children.”

Joining Attorney General James in today’s historic agreement are the attorneys general of California, Colorado, Illinois, Massachusetts, New Mexico, and the District of Columbia.

Ten Defendants Charged With Decade-Long, Multi-Million-Dollar Scheme To Defraud International Cargo Airline

 

Senior Executives of Polar Air Cargo Worldwide, Inc. Engaged in Criminal Conduct that Led to Pervasive Corruption of Nearly Every Aspect of Company’s Operations

 Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Thomas Fattorusso, the Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of a four-count Indictment charging LARS WINKELBAUER, ABILASH KURIEN, CARLTON LLEWELLYN, ROBERT SCHIRMER, SKYE XU, BENJAMIN WEI, a/k/a/ “Ben Wei,” ALVARO LOPEZ, FABIOLA CINO, ORLANDO WONG, and PATRICK LAU, a/k/a “Pat Lau,” in connection with a massive scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of tens of millions of dollars in revenue and the honest services of its employees.  Nine defendants were arrested today.  KURIEN, LLEWELLYN, SCHIRMER, and LAU will be presented in federal court in Manhattan this afternoon.  WEI and WONG will be presented later today in federal court in the Central District of California.  LOPEZ and CINO will be presented later today in federal court in the Southern District of Florida.  WINKELBAUER was arrested today in Thailand and is pending extradition to the United States.  SKYE XU remains at large.

U.S. Attorney Damian Williams said: “As alleged, the 10 defendants charged today conducted a widespread scheme that tainted nearly every aspect of Polar Air Cargo Worldwide’s operations and that cost the company an estimated $52 million in losses.  The defendants, all of whom were either employed in high-level positions by Polar or were vendors reliant on business arrangements with Polar, allegedly showed a blatant disregard for the integrity of their companies in favor of lining their own pockets.  Their pervasive fraud ends today, and each defendant now faces substantial prison time for their alleged crimes.” 

FBI Assistant Director Michael J. Driscoll said: “For more than a decade, the defendants allegedly utilized a complex set of schemes at the expense of Polar Air to line their own pockets.  The indictments today serve as a reminder to any unscrupulous actors attempting complex frauds – the FBI will hold you accountable in the criminal justice system.”   

IRS-CI Special Agent in Charge Thomas Fattorusso said: “Today’s charges are the opening salvo against a decade-long scam by a small group of Polar’s executives and others that allegedly tainted every aspect of its business operations.  These arrests and charges today will hopefully begin the process of righting the alleged wrongs of those charged and put the company on a path to integrity, which its hardworking employees and legitimate customers deserve.”

As alleged in the Indictment:[1]

From at least in or about 2009 through in or about July 2021, LARS WINKELBAUER, ABILASH KURIEN, CARLTON LLEWELLYN, ROBERT SCHIRMER, SKYE XU, BENJAMIN WEI, ALVARO LOPEZ, FABIOLA CINO, ORLANDO WONG, and PATRICK LAU participated in a massive scheme to defraud Polar.  At all relevant times, WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER (collectively, the “Executive Defendants”) were senior executives of Polar.  XU, WEI, LOPEZ, CINO, WONG, and LAU (collectively, the “Vendor Defendants”) owned and operated various Polar vendors and customers.  The Executive Defendants agreed to accept millions of dollars in kickbacks from the Vendor Defendants and also reaped substantial financial benefits as a result of their secret ownership interests in certain Polar vendors, in exchange for ensuring that those vendors received favorable business arrangements with Polar.  The fraud they perpetrated — which involved a substantial portion of Polar’s senior management and at least 10 customers and vendors of Polar — led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations, for over a decade. 

Polar’s business involved numerous outside vendors and customers.  Polar relied heavily on third-party, general sales agents (“GSAs”) in the United States to sell cargo space on its planes.  In turn, the GSAs hired by Polar often sold available cargo space to freight forwarding vendors, which had been hired by downstream customers to coordinate transportation logistics for large quantities of goods.  Polar also contracted with ground handling vendors to load and unload cargo and with trucking vendors to transport cargo from domestic locations to the appropriate airports.  In addition, Polar contracted with other partners for a variety of business reasons, including to secure cargo space on airline routes not serviced by Polar flights.  The scheme to defraud Polar touched on each aspect of these operations.

Together, the Executive Defendants and the Vendor Defendants defrauded Polar by corrupting Polar’s relationships with GSAs, freight forwarders, and other vendors, including those providing ground handling and trucking services.  Unbeknownst to Polar, the Executive Defendants utilized their positions within Polar to secure, among other things, favorable contracts, valuable cargo space, favorable shipping rates, and enrollment in various incentive programs for the Vendor Defendants and their entities.  In return, the Vendor Defendants paid the Executive Defendants kickbacks in various forms, including, for example, in payments calculated per kilo of cargo shipped with Polar or as a percentage of the revenue earned as a result of a vendor’s relationship with Polar.  In addition, the Executive Defendants, in various combinations, held concealed ownership positions in certain companies which contracted with Polar and that were, in at least one case, associated with the Vendor Defendants.  As a result, the Executive Defendants received ownership distributions based, in large part, on revenue derived from contracts with Polar — contracts that had been secured and, often times, renewed due to, in large part, the recommendation of the Executive Defendants with conflicts of interest.

To conceal the kickbacks and conflicted ownership interests from Polar, and thereby to continue the fraud scheme, WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER often directed the kickbacks and ownership distributions be paid to limited liability companies with non-descript names that they, in fact, controlled.  Additionally, the Executive Defendants communicated amongst themselves and with the Vendor Defendants about the scheme primarily using personal email accounts, while the Vendor Defendants conducted official Polar business with the Executive Defendants primarily using their professional email accounts. 

As a result of the scheme, the Executive Defendants, along with two co-conspirators who also worked as senior executives at Polar, received unlawful payments, either directly or through various limited liability companies they controlled, in excess of approximately $23 million in kickback payments or disbursements received as a result of their ownership of conflicted companies.  Additionally, a financial analysis conducted at Polar’s direction estimates that, as a result of the fraudulent scheme, Polar suffered at least approximately $52 million in losses between in or about 2009 and in or about July 2021.

In the Summer of 2021, Polar discovered documentary evidence of the conflicted ownership arrangements and kickback agreements.  Shortly thereafter, Polar terminated the employment of WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER, and reported the conduct to law enforcement authorities.  Polar has continued to cooperate with law enforcement authorities through the investigation.

WINKELBAUER, 47, of Bangkok, Thailand, KURIEN, 45, of Wilton, Connecticut, LLEWELLYN, 55, of Highland Mills, New York, SCHIRMER, 58, of Port Jefferson Station, New York, XU, 40, of West Covina, California, WEI, 58, of San Marino, California, LOPEZ, 50, of Aventura, Florida, CINO, 45, of Aventura, Florida, WONG, 60, of Manhattan Beach, California, and LAU, 43, of Flushing, New York, are each charged with one count of conspiracy to commit wire fraud and honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  WINKELBAUER, KURIEN, LLEWELLYN, and SCHIRMER are also charged with one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.   

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding work of the FBI and IRS-CI.  Mr. Williams also thanked the United States Attorney’s Offices for the Central District of California and the Southern District of Florida as well as the Justice Department’s Office of International Affairs and Thai authorities for their assistance in the investigation. 

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 therein should be treated as an allegation.

NEW YORK CITY LEADS COALITION OF CITIES AND COUNTIES FROM ACROSS NATION TO FIGHT FOR CONTINUED ACCESS TO MEDICATION ABORTION DRUG

 

Filing of Amicus Brief Comes After Texas District Court Ruling That Would Ban Long-Accepted Medication Abortion Regimen Nationwide

 

Brief Supporting Federal Government for Emergency Stay Argues That Ruling Undermines Public Health and Rests on Baseless Claims

New York City Mayor Eric Adams and New York City Corporation Counsel Sylvia O. Hinds-Radix today announced that the City of New York has co-led a coalition of cities and counties from around the nation that operate public health-care systems in a legal filing to protect safe access to medication abortions nationwide. In an amicus brief filed in Alliance of Hippocratic Medicine v. U.S. Food and Drug Administration (FDA) in the U.S. Court of Appeals for the Fifth Circuit, New York City and the coalition of local governments signal their strong support for the federal government’s application for an emergency stay of a federal district court’s ruling that — starting this Friday — would put a hold on the FDA’s 2000 approval of the medication abortion drug mifepristone. In their brief, the coalition argues that the district court’s order undermines public health because it will harm already overburdened public hospitals without realizing the detrimental impact it would have on health care for residents of each locality, as well as makes baseless claims that medication abortion is unsafe.

 

“The decision last week was nothing more than an assault on women’s rights by a Trump-appointed judge in Texas simply set on trampling the law instead of upholding it,” said Mayor Adams. “New York City is proud to lead this coalition in filing an amicus brief in full support of the federal government’s effort to reverse this harmful decision and restore the authority that the FDA has under the law. If the safe and effective two-drug regimen is suddenly removed, our public health care system will have to divert resources to provide alternate options and procedures, which will undoubtedly affect our public hospitals’ ability to provide care to patients seeking abortions and could impact their ability to provide care across the board. This decision was nothing more than an effort to control women’s bodies, their choices, and their freedoms, and we will do everything in our power legally, personally, and politically to fight this ruling and defend the rights of all women.”

 

“As detailed in our amicus brief, this misguided ruling by the Texas court would undermine public health across the nation,” said Corporation Counsel Hinds-Radix. “If the court suspends the FDA’s approval of mifepristone, it will immediately harm pregnant women who will be forced to seek more invasive or less effective care. That burden would be disproportionately borne by the most vulnerable individuals in our communities and further stress overburdened public health-care systems across the country.”

 

“New York City has been and will remain a hub for access to reproductive health care. These services are generations long freedoms that we will fight to restore and maintain,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “Our amicus brief, alongside our counterparts in California, Illinois, and Washington states, show the strength of our coalition to push back against the recent ruling in Texas. Both our Health Department and our public hospital system will remain strong resources for every person seeking guidance and support in their reproductive health care.”

 

“The Texas court ruling goes against an overwhelming body of scientific evidence that says mifepristone is safe, and it could complicate the delivery of abortion services to those who need it most,” said Mitchell Katz, MD, president and CEO, NYC Health + Hospitals. “Depriving our providers of the ability to prescribe mifepristone not only impacts their ability to provide abortion care, but also impacts their ability to treat persons who are suffering the tragedy of a miscarriage. This decision will not deter NYC Health + Hospitals from its commitment to make abortion services available to anyone. We will continue providing this essential service to our patients, and, if needed, we will adapt our protocol to comply with the law in the future.”

 

For more than 20 years, mifepristone, used in combination with the drug misoprostol, has been a safe option for those managing an abortion or miscarriage in the United States, and has now become the most common method to terminate a pregnancy in the country. But, last Friday, Judge Matthew Kacsmaryk of the U.S. District Court for the Northern District of Texas — a Donald Trump appointee — issued a ruling effectively making the prescription of mifepristone illegal nationwide, including here in New York City, starting this Friday, barring emergency relief being ordered by the U.S. Court of Appeals for the Fifth Circuit.

 

In their brief, New York City and the coalition warn that withdrawing federal approval of mifepristone would gravely harm public health care systems across the country that are still struggling with severe funding and staffing challenges following the COVID-19 pandemic. The amicus highlights how the district court’s decision will aggravate those challenges, making it harder for residents, including the most vulnerable, to access care of all kinds, and ultimately undermine the very community health that local governments are charged with protecting.

 

As argued in the brief, if medication abortion is suddenly removed as an option for health-care providers and their patients, demands placed on public hospitals will increase. Public hospitals, in turn, would then have to divert resources to meet the increased demand for emergency care and for procedural abortions from their existing patients and from new patients who otherwise would have sought care from providers who cannot pivot to providing procedural abortions.

 

Because public hospitals operate with limited resources, the impact of the district court’s decision will not be confined to only patients seeking abortions, or even just those seeking reproductive health care. Thousands of patients in need of all kinds of non-emergency surgical care will find themselves facing significant delays in obtaining procedures, and some may forgo care altogether. Reducing the ability of public hospitals to provide resource-effective, high-quality care will erode patients’ confidence in care and make the provision of health care to already-vulnerable patients even more difficult. If left in place, the district court’s decision could undermine public health services across the board.

 

Joining the City of New York and NYC Health + Hospitals in co-leading this amicus brief is Santa Clara County, California. They are joined by Los Angeles and San Francisco counties, California; the city of San Francisco, California; Cook County, Illinois; and King County, Washington.

FundRaiser for Councilwoman Pierina Sanchez

 

With no state budget yet, the members of the state legislature were up in Albany Monday trying to hammer out a deal for a late state budget. Meanwhile at the Bronx Democratic County Headquarters on Williamsbridge Road there was a gathering of friends of City Councilwoman Pierina Sanchez in her reelection bid for the city council. 

Councilwoman Sanchez was joined by Congressman Ritchie Torres whose districts now overlap, Bronx Borough President Vanessa L. Gibson, former New York City Schools Chancellor Dr. Meisha Porter, and other supporters of the Bronx Democratic Party and Councilwoman Sanchez. The councilwoman is the lead elected official in the latest attempt to revitalize the Kingsbridge Armory with Bronx Borough President Vanessa Gibson, and State Senator Robert Jackson. Councilwoman Pierina Sanchez is the Chair of the Committee on Housing and Buildings in the City Council. 

Bronx Borough President Vanessa L. Gibson stands with Councilwoman Pierina Sanchez in front of the 'Bronx Dems' sign inside the Bronx Democratic Party headquarters on Williamsbridge Road. 

Congressman Ritchie Torres stands with Councilwoman Pierina Sanchez and Rosa Ayala.

Community Board 7 member Sandra Erickson was on hand to be with Councilwoman Sanchez, as Congressman Torres speaks to some constituent in the background. 

Bronx Borough President Vanessa L. Gibson speaks about her partnership with Councilwoman Sanchez on the Kingsbridge Armory.

Councilwoman Pierina Sanchez speaks about how she is happy to represent her district, her friendships with other elected officials, and about being a new mom to a one year old. 

(L - R) Indhira Mojica of Empire Consulting, Fidel Malena Bronx Regional Representative for Governor Kathy Hochul, Former Schools Chancellor Dr. meisha Porter, Bronx Borough President Vanessa L. Gibson, Yanely Hernandez, Phipps Neighborhood, Councilwoman Pierina Sanchez, Rosemary Jenkins Ordonez, and Rosa Ayala.

CONSUMER ALERT: New York Department of State’s Division of Consumer Protection Releases Guide with Scam Prevention Tips for First-Time Homebuyers

 

Part Two of Five-Part Consumer Alert Series to Help New Yorkers Navigate Housing Scams 

Follow the New York Department of State on Facebook, Twitter and Instagram for “Tuesday’s Tips” – Practical Tips to Educate and Empower New York Consumers on a Variety of Topics 

Secretary Robert J. Rodriguez: “If you’re about to embark on the adventure of finding your first home, make sure to do your research, exercise caution and follow our tips throughout every step of the process so you can recognize a potential scam before it turns into a costly mistake.” 

For this week’s “Tuesday’s Tips,” the New York Department of State’s Division of Consumer Protection announced the release of a comprehensive guide with important scam prevention tips for first-time homebuyers. The guide is part two of a five-part consumer alert series to help New Yorkers navigate housing scams, which are a continuously growing risk for consumers. In the coming weeks, consumers will receive guidance on how to navigate housing scams when renting, buying a first home, protecting their homes, planning a home improvement project or looking for a moving or storage company. Follow the New York Department of State on Facebook, Twitter and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

“Buying a first home is an exciting milestone, but with so many steps and different professionals to work with, scammers often look to take advantage of first-time homebuyers who are new to the process,” Secretary of State Robert J. Rodriguez said. “If you’re about to embark on the adventure of finding your first home, make sure to do your research, exercise caution and follow our tips throughout every step of the process so you can recognize a potential scam before it turns into a costly mistake.”

Below are important scam prevention tips to help new homebuyers:

Research and look for credible resources and referrals. During the homebuying process, buyers are working with lenders, real estate agents, home inspectors and other individuals. It’s important to take the time to do the initial research that will get you started on the right path.

• Take your time assessing all the people you will work with who will guide you through this important milestone.
• Check with your local Better Business Bureau to make certain no complaints have been reported.
• Review our tips on how to verify real estate professionals by reviewing part one of our housing scam consumer alert series.

Avoid digital mortgage comparison-shopping platforms. The Consumer Financial Protection Bureau recently issued guidance warning mortgage borrowers about digital comparison-shopping platforms. If you’re using these platforms, be aware that companies operating these platforms often appear as if they provide objective lender comparisons, but instead may refer people to only those lenders that pay referral fees to the platform. It’s important to note that these types of financial arrangements that influence or manipulate search results for a monetary benefit are illegal.

Be wary of up-front fees for mortgage-related services. Paying up-front fees before you get the loan may be an indicator of a scam. Generally, there are fees associated with the mortgage financing process, such as application fees, appraisal fees and other relevant fees. Below are some tips to help differentiate a real lender from a scammer:

• Real lenders are transparent when it comes to fees and itemize these fees before closing. You should receive clear written disclosures about fees that will be charged and the fees should be tied to services being provided.
• Scammers, on the other hand, may request an up-front fee before any work is done. Once you provide the payment, they disappear. Be very cautious of anyone who requests advance fees in connection with a mortgage loan.

Have your own attorney review all contracts and loan documents before you sign. Hiring a real estate attorney is important to streamline the legal transfer of property. It is not a good idea to use an attorney provided by the seller or the lender. Ask your attorney about any provision you do not fully understand. To find an attorney in New York State, search or contact the New York State Bar Association Lawyer Referral Service.

Avoid home inspection scams. Home inspections are vital to the homebuying process because they can expose hidden problems in the home you plan to buy, such as deferred maintenance, structural issues, mold or faulty wiring that could cause a fire. In a home inspection scam, a provider may hide potential problems with the home to increase referrals or as part of a collusive arrangement. To prevent this type of fraud:

• Avoid using home inspectors referred through real estate agents or others who may not share your interests.
• Make sure the home inspector is licensed in New York by searching the NYS Department of State’s Public License Search database.
• Check references. Even with an experienced licensed home inspector, it is good practice to ask questions and look for signs of irregularities.
• Make sure the inspector can access all areas of the property and make sure you receive a copy of the report.

Prevent mortgage closing scams. Scammers are increasingly taking advantage of homebuyers during the closing process. When you’re about to close on your new home, scammers posing as a real estate agent or a lender attempt to divert your closing costs and down payment funds by sending last-minute changes to your wiring instructions. Don’t fall for this phishing scam. Before you do anything:

• Always verify any changes by contacting a trusted representative.
• Avoid clicking on any links or sending financial information via email. Email is never a secure way to send sensitive information.

About the New York State Division of Consumer Protection

The New York State Division of Consumer Protection provides resources and education materials to consumers, as well as voluntary mediation services between consumers and businesses. 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/consumer-protection.

For other consumer protection tips and consumer alerts, consumers can visit the DCP website or follow DCP on social media via Twitter at @NYSConsumer or Facebook at www.facebook.com/nysconsumer