Manhattan Real Estate Fund Manager Sentenced To Prison For Securities Fraud

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSHUA BURRELL was sentenced to 48 months in prison for committing securities fraud in connection with the operation of a New York-based investment firm, Activated Capital, LLC (“Activated Capital”).  BURRELL previously pled guilty for raising millions of dollars for Activated Capital’s “Opportunity Zone Funds” using fraudulent misrepresentations.  U.S. District Judge Lewis A. Kaplan imposed the sentence in Manhattan federal court.

According to statements in the Indictment, and other public filings and statements in court:

From in or about 2019 through in or about 2021, BURRELL obtained millions of dollars of investments for the Activated Tax Advantaged Opportunity Fund, LLC and Activated Capital Opportunity Zone Fund II, LLC (collectively, the “Activated OZ Funds” or the “Funds”) based on fraudulent representations.  BURRELL represented, in substance, that the money invested in the Activated OZ Funds would be used to purchase real estate properties in Opportunity Zones and that investors would receive distribution payments out of the Funds’ net real estate investment income.  Contrary to those representations, BURRELL caused the Activated OZ Funds to pay putative distributions in amounts greater than the Funds’ net income.  From the inception of the Funds in 2019 through approximately February 2021, BURRELL used investor money to help pay distributions totaling approximately $470,000 in a manner akin to a Ponzi scheme.  BURRELL also falsely inflated Activate Capital’s assets under management in communications with prospective investors.

To attract additional investment capital for the Activated OZ Funds, BURRELL sought to establish a partnership with an investment bank headquartered in Manhattan (“Company-1”).  As part of Company-1’s diligence process, Company-1 asked BURRELL for “[b]acking to show current fund proceeds/acquisitions made.”  In response to these requests, BURRELL fabricated documents to make it appear that the Activated OZ Funds were more successful, owned more properties, and were in better financial condition than was actually the case.  For example, BURRELL sent Company-1 fake bank statements making it appear that, for the period July 2019 through October 2019, one of the Activated OZ Funds had ending monthly account balances of between approximately $2,094,450 and $2,463,100 when the real account statements for that period showed ending monthly balances of between only $116,369 and $154,399.  BURRELL fabricated additional documents to make it falsely appear to Company-1 that an Activated Capital affiliate owned nine properties in Detroit, Michigan, that it had not, in fact, acquired.

BURRELL, 39, of New York, New York, was also sentenced to a one-year term of supervised release.  He was further ordered to pay restitution to his victims in the amount of $5,763,420 and to pay forfeiture in the amount of $107,688.  

Mr. Williams praised the investigative work of the United States Postal Inspection Service and thanked the U.S. Securities and Exchange Commission for its assistance.

Governor Hochul Issues New Executive Order During Climate Week Announcing Nation-Leading Sustainability Operations

 

Sustainable Goals Will Fight Climate Change, Accelerate New York's Transition to a Green Economy, and Prioritize Disadvantaged Communities

Commits New York State to 100 Percent Renewable Energy in State Operations by 2030

State Agencies, Representing an Estimated $50 Billion in Investments, Have Committed To Achieving Net Zero Investment Portfolios by 2040

Supports New York's Ambitious Climate Goals To Achieve 40 Percent Reduction in Greenhouse Gas Emissions by 2030, and 85 Percent Reduction by 2050

Read the Executive Order Here

 Governor Kathy Hochul today signed a nation-leading Executive Order to accelerate efforts to make State operations more sustainable. As New York commemorates Climate Week, Executive Order 22 builds upon progress made by the GreenNY Council to continue streamlining the administration of the State's lead-by-example sustainability and climate directives and sets new goals for the environmental performance of State agencies. Governor Hochul also announced that State agencies and authorities, representing an estimated $50 billion in investments, have committed to achieve net zero in their investment portfolios by 2040. This bold action ensures New York State's financial resources are aligned with its clean energy and decarbonization obligations as enacted in the 2019 Climate Leadership and Community Protection Act.

"New York is already leading the nation on climate action, and with this Order, we are creating the roadmap to help other states follow suit," Governor Hochul said. "With these new commitments, we are stepping up our approach to environmental stewardship with new and ambitious goals to shift toward renewable energy, invest in electric vehicles, and drastically reduce waste and toxic substance use - all while protecting our state's most disadvantaged communities. As a global financial capital, New York is in a unique position to combat climate change, and my administration remains committed to leading the fight by aligning our investments and operations with New York State values."

Through the Executive Order, the GreenNY Council will ensure that State agencies follow best practices in green purchasing and in their operations by issuing new green purchasing specifications and operational directives. The Order will be administered by the GreenNY Council, a multi-agency working group co-chaired by the Department of Environmental Conservation, the Division of the Budget, the Office of General Services, the New York State Energy Research and Development Authority, and the New York Power Authority. Required annual reporting from agencies and authorities will help ensure that the goals of the Order are achieved.

The Order covers the following targets and goals:

• 100 percent of the electricity used in State operations will come from renewable energy (as defined by the Clean Energy Standard) by 2030.
• 100 percent of light-duty non-emergency vehicle fleets will be Zero Emission Vehicles (ZEVs) by 2035 and 100 percent of medium and heavy-duty vehicle fleets will be ZEVs by 2040.
• 11 trillion BTUs of energy savings will be achieved by 2025 through the BuildSmart 2025 program.
• Restricting new State facilities that enter design and permitting starting in 2024 from using infrastructure that can be used for the combustion of fossil fuels.
• Waste disposal will be reduced 10 percent every five years until reaching a goal of 75 percent lower than a 2018-19 Fiscal Year baseline, which will include a combination of strategies to divert materials from landfills, increase recycling, and enhance composting and other reuse of organic materials.
• The use of single use plastics will be eliminated in State operations.
• The use of toxic substances will be reduced in State operations.
• Habitats maintained by State agencies and authorities will be enhanced, including support for native pollinators.
• Climate resiliency at State facilities will be increased.

The Executive Order takes action to ensure that State operations do not have a disproportionate burden on disadvantaged communities by directing the GreenNY Council to determine what State facilities are located within disadvantaged communities and directing agencies and authorities to then prioritize facilities that are located within these communities for sustainability upgrades to reduce the potential impacts on the communities in which they are located.

The Executive Order will also ensure that State operations do not have a disproportionate burden on disadvantaged communities by prioritizing sustainability upgrades for State facilities in these communities.

In addition to the Executive Order, agencies and authorities submitted action plans this month outlining their path to a net zero investment portfolio. The action plans include frameworks and strategies for evolving portfolio construction, including plans to increase investment in sustainable solutions. This fulfills the Governor's directive in her 2022 State of the State address. Further detail on agency and authority net-zero investment portfolio action plans can be found on their websites.

New Yorkers can read the Executive Order here and other ways that State government is leading by example on the GreenNY website.

New York State's Nation-Leading Climate Plan

New York State's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York's unprecedented investments to ramp-up clean energy including over $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York's clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.

Two New York City Correction Officers Plead Guilty to Accepting Bribes in Exchange for Smuggling Contraband Into Rikers Island for Gang Members

 

Defendants Smuggled Cell Phones and Narcotics to Members of the Bloods Gang

 New York City correction officer Krystle Burrell pleaded guilty to bribery, admitting that she accepted nearly $10,000 in bribe payments in exchange for smuggling contraband into Rikers Island.  On August 16, 2022, New York City correction officer Katrina Patterson pleaded guilty to bribery, admitting that she accepted more than $34,000 in bribe payments in exchange for smuggling contraband into Rikers Island.  Burrell and Patterson are employed by the New York City Department of Corrections (DOC).  Burrell’s proceeding was held before United States District Judge Kiyo A. Matsumoto, and Patterson’s proceeding was held before United States District Judge Carol Bagley Amon.

Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.

“The defendants threw in their lot with Bloods gang members and betrayed their sworn duty to maintain the safety of incarcerated individuals and other correction officers at Rikers Island by smuggling cell phones and drugs into the jail,” stated United States Attorney Peace.  “This Office and our law enforcement partners are committed to rooting out corruption at Rikers Island.” 

DOI Commissioner Jocelyn E. Strauber said, "These two Correction Officers took bribes in return for smuggling contraband to inmates, crimes that risked the safety and security of the jails and willfully circumvented Correction Department regulations.  These violations of their duty carry serious consequences, including termination from their City employment.  DOI and our law enforcement partners will continue to target contraband smuggling and other misconduct that destabilizes the City’s jails.”

“When correction officers betray their oath to serve and protect, the public is put at risk and the entire law enforcement community is tarnished,” stated NYPD Commissioner Sewell. “We have zero tolerance for such misconduct. With today’s guilty plea, Ms. Burrell joins Ms. Patterson in publicly acknowledging that their actions were immoral, unethical, and without integrity – diametrically opposed to the core requirements of our profession. I commend all of our partners for their dedication to uncovering and eradicating corruption in all of its forms.”

“These officers were tempted by greed to betray their duty.  By taking bribes to smuggle prohibited contraband to incarcerated known gang members, they violated the oath they swore and became criminals themselves,” said HSI New York Acting Special Agent in Charge Patel.  “HSI is committed to making our communities safer by disrupting gang activity wherever it occurs, whether on the streets or in prisons.”

According to court documents and facts presented at the guilty plea proceedings, Patterson accepted at least $34,090 in bribes from co-conspirators on behalf of co-defendant Michael Ross in exchange for Patterson smuggling contraband into the Robert N. Davoren Center on Rikers Island for Ross.  Ross, who was incarcerated on unrelated offenses, arranged for the bribes to be sent to Patterson.  DOC personnel subsequently located narcotics and cell phones in Ross’s cell.  Law enforcement also recovered Patterson’s text messages, including messages where a co-conspirator told Patterson that some of the contraband would be “4 black joints in 1 paper,” and Patterson responded, “it better be wrapped so many times I don’t want to smell it.” 

Burrell accepted bribes in exchange for smuggling contraband into the Anna M. Kross Center on Rikers Island for co-defendant Terrae Hinds, facilitating Hinds’ contraband smuggling business and permitting Hinds and others to violate DOC regulations.  Hinds, who was incarcerated on unrelated offenses, arranged for approximately $9,780 in bribe payments to be sent to Burrell.  In exchange, Burrell smuggled at least two unauthorized cell phones to Hinds, and also facilitated Hinds’ sale of narcotics and other contraband items at the Anna M. Kross Center.

When sentenced, Burrell faces up to 10 years’ imprisonment and Patterson faces up to five years’ imprisonment.  Ross, who is a Bloods gang member, has also pleaded guilty to a bribery offense and is awaiting sentencing. Charges against Hinds remain pending.

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - SEPTEMBER 20, 2022

 

Governor Encourages New Yorkers to Keep Using the Tools to Protect Against and Treat COVID-19: Vaccines, Boosters, Testing, and Treatment

47 Statewide Deaths Reported from September 17 to September 19

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

"As we continue to navigate the start of the fall season, I urge all New Yorkers to take steps to better protect themselves against COVID-19," Governor Hochul said. "Take advantage of the latest tools and resources at our disposal in order to keep our families and our communities safe. Test before gatherings or travel and if you test positive, talk to your doctor about potential treatment options." 

Governor Hochul also announced the availability of bivalent COVID-19 vaccine boosters from Pfizer-BioNTech for anyone age 12 or older and from Moderna for those 18 or older. To schedule an appointment for a booster, New Yorkers should contact their local pharmacy, county health department, or healthcare provider; visit vaccines.gov; text their ZIP code to 438829, or call 1-800-232-0233 to find nearby locations.

Today's data is summarized briefly below:

• Cases Per 100k - 17.35
• 7-Day Average Cases Per 100k - 22.20
• Test Results Reported - 36,930
• Total Positive - 3,391
• Percent Positive - 8.99 %**
• 7-Day Average Percent Positive - 6.49%**   
• Patient Hospitalization - 2,102 (+100)*
• Patients Newly Admitted - 814
• Patients in ICU - 224 (+9)
• Patients in ICU with Intubation - 77 (+8)
• Total Discharges - 342,657 (+597)*
• New deaths reported by healthcare facilities through HERDS - 47*
• Total deaths reported by healthcare facilities through HERDS - 57,967* 

** 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 - 74,084   

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.   

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

Borough	Saturday,   September   17, 2022	Sunday,   September   18, 2022	Monday,   September   19, 2022
Bronx	5.82%	5.85%	6.06%
Kings	3.83%	3.80%	3.77%
New York	5.01%	4.97%	5.04%
Queens	6.16%	6.16%	6.11%
Richmond	5.78%	5.76%	5.85%