President Of Hair Testing Company Pleads Guilty To Defrauding Over 88,000 Customers In Testing Scam

 

Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea of KYLE TSUI in connection with a fraud scheme that resulted in sales of approximately $5.9 million worth of fabricated allergy and sensitivity tests to tens of thousands of customers.  TSUI pled guilty to wire fraud and mail fraud before U.S. Magistrate Judge Judith C. McCarthy, following his extradition from Spain in November 2023.

U.S. Attorney Damian Williams said: “As he has now admitted, Kyle Tsui defrauded tens of thousands of innocent victims, whose health was put at risk with false allergy and sensitivity testing results.  Tsui’s company advertised ‘highly-rated’ allergy and sensitivity testing services but didn’t even attempt to test the samples his paying customers sent in, instead directing others to throw the samples in the garbage.  Tsui now faces prison time for his brazen scam.”

According to the allegations contained in the Indictment, the defendant’s statements when pleading guilty, and statements made in related court filings and proceedings:

From September 2018 through April 2019, TSUI orchestrated a scheme to defraud customers of his company, the “Allergy Testing Company,” by purporting to sell food and environmental sensitivity testing services that TSUI knew were not, in fact, being performed.  In total, TSUI sold fabricated tests worth approximately $5.9 million to more than 88,000 victims through an online marketplace. 

TSUI’s company promoted its “[h]ighly-rated, top selling sensitivity and intolerance test” that “determines how your body responds to 800 different food and environmental items” with just “a small hair sample.”  But rather than actually test the hair samples as customers were promised, TSUI directed that the hair samples be discarded in the trash without any laboratory analysis.  Customers then received fabricated test results purporting to identify certain foods and environmental factors that were “safe” for them and others that the customers were supposedly “sensitive” to and should avoid.       

KYLE TSUI, 41, of Ontario, Canada, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of mail fraud, which carries a maximum sentence of 20 years in prison.  TSUI also agreed to pay forfeiture in the amount of $4,165,884.70.  

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.  TSUI’s sentencing is scheduled for May 30, 2024, before U.S. District Judge Kenneth M. Karas.

Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service.  Mr. Williams also thanked the Hyde Park Police Department, the New York State Troopers, the Toronto Police Service, the Department of Justice’s Office of International Affairs, and the Canadian Anti-Fraud Centre for their assistance in the investigation, as well as the Government of Spain for working with U.S. authorities to arrest and extradite TSUI to the United States.

If you believe you are a victim of the Allergy Testing Company fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here.

Colorado Man Sentenced for Church Arson in Federal Hate Crime Case

 

A Colorado man was sentenced to 39 months in prison for a hate crime charge in connection with a fire that he set to a church in Loveland, Colorado, on Jan. 19, 2023. Darion Ray Sexton, 22, pleaded guilty to a federal hate crime charge on May 5, 2023.

“This defendant has now been held accountable for his deliberate attack on the church,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No one should live in fear because of their religious beliefs. The Justice Department will continue to vigorously prosecute those who seek to destroy houses of worship and interfere with the fundamental right to practice religion freely.”

“Places of worship are critical for our communities, and this office stands ready to protect them,” said U.S. Attorney Cole Finegan for the District of Colorado.  “Religious freedom means being free to worship without fear. Our office will take every appropriate action to ensure that every Coloradan enjoys this essential freedom.” 

“This defendant admitted he set out to destroy this church, which was determined to be a federal hate crime,” said Special Agent in Charge Mark D. Michaelk of the FBI Denver Field Office. “FBI Denver worked with the Loveland Police Department to bring this man to justice. Anyone who attacks a house of worship will get the full attention of the FBI. In addition to seeking justice for these crimes, the FBI remains committed to providing resources for potential victims, such as the event with faith leaders held in this county the day before the crime occurred.”

“Arson is not only destructive and deadly, but also undermines the sense of safety within places of worship,” said Special Agent in Charge Brent Beavers of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “We immediately committed all ATF resources to addressing the impact of this arson by deploying our certified fire investigator, an ATF Task Force Officer with their ATF trained accelerant detection canine and ATF Laboratory services to analyze fire debris and evidence. Early and continued collaboration with our local and federal partners ensured justice once again prevailed.”

According to court documents, Sexton pleaded guilty to intentionally setting fire to the church in the evening hours of Jan. 19, 2023. Sexton admitted that he set this fire by throwing two Molotov cocktails at the church — one at the front door and the other at the basement. Sexton further admitted that he was motivated to set this fire due to the religious character of the church and that he intended to destroy the church.  

The FBI, ATF and the Loveland Police and Fire Departments conducted the investigation.

Attorney General James Announces Latest Win Against Martin Shkreli for Illegal Scheme to Monopolize Lifesaving Drug

 

Federal Appeals Court Upholds Court Order AG James Secured Banning Shkreli for Life from Pharmaceutical Industry, Ordering Him to Pay $64.6 Million

New York Attorney General Letitia James announced today that a federal appeals court has upheld a court order that New York, the Federal Trade Commission (FTC), and six other states won against convicted criminal Martin Shkreli for engaging in illegal and monopolistic behavior as the CEO of Vyera Pharmaceuticals (previously known as Turing Pharmaceuticals). The Court of Appeals for the Second Circuit affirmed the January 2022 decision of the District Court for the Southern District of New York, which found that Shkreli violated both federal and state laws by engaging in an illegal scheme to maintain a monopoly over a lifesaving drug, Daraprim, after increasing its price by over 4,000 percent. As a result, Shkreli is banned for life from the pharmaceutical industry and ordered to pay $64.6 million.

“For years, Martin Shkreli and his company made millions by putting vulnerable people at great risk and denying lifesaving medication. Our latest victory once again holds him accountable,” said Attorney General James. “New Yorkers can rest assured that I will always take action against those who put their personal profits over people’s health. I want to thank FTC and my fellow attorneys general for their hard work and collaboration to ensure Mr. Shkreli is brought to justice.”

In August 2015, Shkreli’s company, Vyera, acquired Daraprim and increased the price dramatically overnight from $17.50 per pill to $750 per pill, an over 4,000 percent increase. At the time of Shkreli’s scheme, Daraprim was the only FDA-approved drug for the treatment of toxoplasmosis, a parasitic disease that poses serious and often life-threating consequences for those with compromised immune systems, including babies born to women infected with the disease and individuals with the Human Immunodeficiency Virus (HIV). Vyera — under Shkreli’s control — then engaged in anticompetitive conduct to delay and impede generic competition. The high price and distribution changes Shkreli made limited access to the drug, forcing many patients and physicians to make difficult and risky decisions for the treatment of a life-threatening disease.

In January 2020, Attorney General James and FTC filed a lawsuit against Vyera, Shkreli, and his business partner — Kevin Mulleady — for anticompetitive behavior that allowed the defendants to charge an exorbitantly high price for Daraprim. In April 2020, the states of California, Illinois, North Carolina, Ohio, Pennsylvania, and Virginia joined Attorney General James’ and FTC’s lawsuit.

After a seven-day trial in December 2021, the District Court for the Southern District of New York issued a decision and order largely agreeing with the states and FTC. The Court’s decision found Shkreli liable on each of the claims presented, banned him for life from participating in the pharmaceutical industry in any capacity, and ordered him to pay the plaintiff states $64.6 million in disgorgement. In addition, Vyera and Mulleady entered into an agreement that ended their illegal and monopolistic behavior, required the company to pay up to $40 million, and banned Mulleady from the pharmaceutical industry for seven years. 

The decision by the Court of Appeals for the Second Circuit unanimously affirms the entirety of the Southern District’s decision. Citing “Shkreli’s pattern of past misconduct, the obvious likelihood of its recurrence, and the life-threatening nature of its results,” the Second Circuit determined that the Southern District acted properly by imposing its order against Shkreli. 

Bronx Borough President Vanessa L. Gibson - Community Resources & Updates

 

Dear Neighbor,

Our Community Board application is live, and we are urging Bronxites to apply now to join their local community board!  We fulfilled a promise last year to create a digital application in English and Spanish to make the process easier and more accessible so our community boards can truly reflect the diversity of our borough. You will get to advocate for the needs of your community and hear directly from city agencies. Click here for more information!

We have also relaunched our fire safety education workshop series in partnership with the FDNY, focusing on public housing residents, seniors, and other vulnerable populations. In the Bronx, we have seen more than our fair share of fires that have led to families being displaced and communities forever changed. We are working strategically to get this potentially life-saving information out to those who need it the most and equip our residents with the tools to keep themselves and their families safe. Our next public workshop will be held in partnership with the Wildlife Conservation Society on Saturday, January 27, from 11 AM to 2 PM at the Bronx Zoo. Participants will get to enjoy free admission to the Bronx Zoo for the day of the training.

 

Lastly, we are excited to announce that New York City’s first free observatory is coming to the Bronx! We look forward to welcoming this project to our borough, which will be open for our youth and families to enjoy. Thank you to the Amateur Astronomers Association, the NYC Parks Department, the Bronx High School of Science, and everyone else involved in bringing this to fruition.

 

If you have any questions or concerns, please do not hesitate to contact our office at 718-590-3500 or email us at webmail@bronxbp.nyc.gov.

 

In partnership,

Bronx Borough President Vanessa L. Gibson

UPCOMING EVENTS

NEW YORK STATE DEPARTMENT OF LABOR ANNOUNCES PARTNERSHIP WITH CAREERS THROUGH CULINARY ARTS PROGRAM ON NEW INITIATIVE TO BUILD NEW YORK’S HOSPITALITY WORKFORCE

$360,000 Department of Labor Grant Will Support New York City-Based Workforce Development Program to Train Eligible Asylum Seekers for Jobs in Hospitality and Food Service Sectors

Builds on Governor Hochul’s Effort to Help Connect Work-Eligible Migrants and Asylum Seekers with Job Opportunities at New York Businesses 

The New York State Department of Labor today announced a partnership with the Careers Through Culinary Arts Program on a New York City-based initiative to train eligible asylum seekers for roles in the hospitality and food service industries. A $360,000 grant funded by the New York State Department of Labor (NYSDOL) is providing the opportunity for asylum seekers to receive training through C-CAP’s Career Pathways Program. 

“A certification from the Career Pathways Program gives our newest workers in New York State a lifeline,” said New York State Department of Labor Commissioner Roberta Reardon. “Connecting job seekers with tools for professional success is a fundamental part of what the Department of Labor does. I applaud Governor Kathy Hochul for directing significant resources that not only help asylum seekers, but that eventually position asylum seekers to help themselves.”

C-CAP is a workforce development organization that teaches culinary, life and job skills to more than 22,000 middle-and-high school under-resourced students in 186 schools, as well as the formerly incarcerated. C-CAP’s Career Pathways Program will teach participants valuable food-service industry skills through a five-week hands-on program. The program is located at Francis Lewis High School in Queens, and graduates of this program will receive a New York City Food Handler’s License certification. Following certification, C-CAP will place graduates into entry-level positions within the hospitality industry.

This program builds on an initiative announced by Governor Hochul last year to help work-eligible migrants and asylum seekers in New York find work. In August, the Governor directed NYSDOL to begin connecting businesses with job openings to migrants and asylum seekers who have attained legal work status. To date, NYSDOL has identified more than 40,000 job opportunities at 1,059 New York businesses that are willing to hire asylum seekers and is continuing its outreach to employers statewide.

To learn more about the resources available to job seekers through NYSDOL visit:

• Career Assistance Request Form
• Asylum Seeker Employment Efforts | Department of Labor (ny.gov)
• Language Access for Limited English Proficient New Yorkers | Department of Labor (ny.gov)
• Division of Immigrant Policies and Affairs Services | Department of Labor (ny.gov)

To learn more about the Career Pathways Program, visit the C-CAP website.

Bronx River Art Center (BRAC) - Register for BRAC's Winter 2024 Classes & Workshops

 

BRAC's Winter 2024 art classes have begun, but there's still  time to sign up! Our winter semester runs for ten weeks, from  January 8th to March 25th, offering both weekly two-hour art  classes and three-hour art workshops for children, teens,  and adults. Full class descriptions are available at  www.bronxriverart.org/education Register for Afternoon, Evening, and  Saturday Classes FRIDAY THREE-HOUR WORKSHOPS (Full descriptions available at  www.bronxriverart.org/education) Join us and relax at the end of the school week in our 3 hour art workshops, from 5:30pm to 8:30pm, in a variety  of topics and techniques for ages 12 and older. Most  workshops are $15 per session; Figure Drawing  workshops are $20 per session and restricted to ages 18  and older. SNAP recipients can use "SNAP20" to get an  extra $3 off. January 26 - Figure Drawing with Douglass Guy February 2 - Abstract Painting with Marta Blair February 9 - Printmaking with Tammy Wofsey February 16 - Figure Drawing with Douglass Guy March 1 - Pastel Drawing with Gail Nathan March 8 - Painting with Paper with Michele Brody March 15 - Figure Drawing with Douglass Guy March 22 - Mosaic with Jennifer Tomaiolo Register for Three-Hour Friday Workshops

CONSUMER ALERT: THE NEW YORK DEPARTMENT OF STATE’S DIVISION OF CONSUMER PROTECTION PROVIDES TIPS TO AVOID CHECK WASHING SCAMS

 

Avoid mailing checks from public collection boxes to protect yourself from fraud

Secretary Rodriguez said: “To protect against having your bank account emptied, I encourage New Yorkers to follow our tips to protect themselves and their businesses.”

The Department of State’s Division of Consumer Protection is providing consumers with guidance to avoid mail theft and check washing schemes. During check washing schemes, thieves steal checks, often in bulk from U.S. Postal Service mail collection boxes and use common chemicals like nail polish remover to erase (or “wash”) the payee and dollar amount while preserving the check’s original signature. These scammers can then profit from making checks out to themselves or selling the stolen, signed blank checks.

According to the US Financial Crimes Enforcement Network (FinCEN), the number of check fraud crimes nationwide surged in 2020 and has worsened each year since. In 2022, FinCEN received over 680,000 suspicious activity reports related to check fraud, almost twice number recorded in 2021.

“People may not be writing as many paper checks but check fraud is still a serious issue because check washing scams can cost consumers hundreds to even thousands of dollars and the fraudulent charges can take weeks to reverse,” said Secretary of State Robert J. Rodriguez. “To protect against having your bank account emptied, I encourage New Yorkers to follow our tips to protect themselves and their businesses.”

Daniel B. Brubaker, Inspector in Charge of the New York Division said, “When thieves violate the sanctity of the mail, the U.S. Postal Inspection Service will spare no resource to bring these nefarious individuals to justice for their crimes. Our persistence in investigating these crimes, along with recent enhancements to USPS equipment and other prevention efforts, are the many ways we ensure the public’s trust in the U.S. Mail.”

Follow these tips to avoid mail theft and check washing scams:

TIPS TO AVOID CHECK WASHING:

• Go directly to the post office to drop off your mail: When using a Blue Collection Box, try to do so before the last pickup of the day to minimize the amount of time the check spends in the box.
• Check your mailbox frequently: Don’t leave mail in your mailbox overnight.
• Hold mail at your local post office: If you are going to be away from home and can’t check your mail, request to have your mail held at your local post office or have a trusted neighbor pick it up until your return. You can submit a USPS Hold Mail request online at www.usps.com/manage/hold-mail.htm or in-person at your local post office.
• Use black gel pens: Gel pens may have ink that thieves have greater difficulty erasing compared to standard ballpoint pens.
• Sign up for informed delivery from USPS: Informed delivery services allow consumers to receive a daily email with pictures of all letter-sized mail for that address each day. You can sign up online at www.usps.com/manage/informed-delivery.htm
• Review your checking account regularly: Look out for unusual or unexpected withdrawals from your bank account and take time to confirm when your checks clear.

What to do if you experience check washing:

• Contact your bank immediately.
• File a police report.
• Report the check washing to the United States Postal Inspection Service at 1-877-876-2455 or www.uspis.gov/report

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.