Manhattan U.S. Attorney Announces Fraud And Bribery Charges Against Former Director Of Financial Aid Of Graduate School

Melanie Williams-Bethea Engaged In Kickback Scheme With Students, Three Of Whom Are Also Charged

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Debbi Mayer, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General, Northeastern Regional Office (“ED-OIG”), announced today the unsealing of a criminal complaint charging four individuals, including the former Director of Financial Aid of a graduate school receiving federal funds (the “Graduate School”) and three students, with fraudulently obtaining hundreds of thousands of dollars from the Graduate School, bribery, and kickback scheme.  MELANIE WILLIAMS-BETHEA, the former Director of Financial Aid, and student ANNICE KPANA were arrested this morning and presented today before U.S. Magistrate Judge Barbara Moses.  Student CARMEN CANTY was arrested this morning in the Middle District of North Carolina, and student KYLA THOMAS, a/k/a “Kyla Britt,” was arrested this morning in the District of South Carolina; both are expected to be presented in those districts today.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, for years, these four defendants took advantage of a federal program intended to assist those who need financial aid to make higher education a reality.  The defendants’ alleged falsification of documents to show extreme financial hardship enabled the student defendants cumulatively to pocket hundreds of thousands of dollars for which they did not qualify.  A substantial portion of this stolen money was allegedly kicked back to Williams-Bethea.  Student loan fraud ultimately affects all students and taxpayers with increased fees and interest rates.”

ED-OIG Assistant Special Agent in Charge Debbi Mayer said:  “Today’s action alleges that Melanie Williams-Bethea knowingly and willfully abused her position of trust for personal gain and recruited others to assist her in a fraud scheme that targeted the very students she was supposed to help.  OIG Special Agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students.  America’s students, their families, and taxpayers deserve nothing less.”

According to the Complaint[1] unsealed today in Manhattan federal court:

From 2008 through 2017, WILLIAMS-BETHEA, KPANA, CANTY, and THOMAS engaged in fraud and bribery schemes resulting in the loss of hundreds of thousands of dollars from the Graduate School.  WILLIAMS-BETHEA, who was employed by the Graduate School as the Director of Financial Aid during the relevant time period, perpetrated the scheme by approving aid payments to KPANA, CANTY, and THOMAS (collectively, the “Students”) well in excess of their need, and then obtaining kickback payments from the students of portions of the unjustified aid. 

Specifically, WILLIAMS-BETHEA approved excessive “cost of attendance” figures for the Students that did not comport with their actual needs or costs of living, which had the effect of increasing the amount of financial aid they were eligible to receive, and by then approving stipends for the Students up to – and at times exceeding – these inflated amounts.  To facilitate some of the stipends, WILLIAMS-BETHEA created fraudulent stipend request forms for financial awards to the Students, which gave the appearance that professors or other administrators had requested stipends for KPANA, CANTY, and THOMAS, when in fact they had not, and then approved the fraudulently requested stipends herself.

After WILLIAMS-BETHEA facilitated these awards of unjustified financial aid, KPANA, CANTY, and THOMAS paid WILIAMS-BETHEA more than $350,000 in kickbacks.

WILLIAMS-BETHEA, 47, of Springfield Gardens, New York, KPANA, 35, of Valley Stream, New York, CANTY, 39, of Winston-Salem, North Carolina, and THOMAS, 39, Greer, South Carolina, each are charged with one count of conspiracy to commit bribery and fraud in connection with federal student aid, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of bribery, which carries a maximum sentence of 10 years in prison.  WILLIAMS-BETHEA, CANTY, and THOMAS are each also charged with one count of fraud in connection with federal student aid, which carries a maximum sentence of five years in prison.

The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.

Mr. Berman praised the investigative work of the Department of Education Office of Inspector General in this investigation, and thanked the Graduate School for its cooperation with the investigation.

 

[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

A.G. Schneiderman Announces Over 4,700 Collection Bins Across New York Now Disclose Whether Donated Items Are Used For Charitable Purposes

AG Enforcement Effort Requires Signage to Disclose Whether Donated Items Will Be Used for Charitable or For-Profit Purposes

AG Encourages New Yorkers to Report Any Bins that Do Not Comply with New State Law 

  Attorney General Eric T. Schneiderman today announced that over 4,700 donation collection bins throughout New York now disclose whether clothing or other items deposited in those bins are used for charitable or for-profit purposes. This follows the Attorney General’s enforcement effort to ensure bin owners’ compliance with a new state law that imposes strict regulations on the placement, maintenance, and transparency of collection bins across the state.

“New Yorkers who drop-off personal items into collection bins deserve to know whether they are making a charitable donation or enriching a for-profit corporation,” said Attorney General Schneiderman. “We are committed to ensuring that New Yorkers will know how their donations will be used.”

General Business Law § 399-bbb, which took effect in June 2016, was enacted to address the proliferation of collection bins across the state, and the lack of transparency regarding how collected items are used. The law sets forth specific requirements for signage that must be placed on all collection bins – such as a clearly labeled statement of purpose that explains whether donations will be used for profit or charitable purposes. Additionally, collection bins must be labeled with the name, physical address, phone number, and website of the owner of the bin, as well as contact information for the Attorney General’s office. The law prohibits the placement of bins on public property and regulates the maintenance of the bins, including a requirement that they are regularly emptied.

The new state law follows a 2015 settlement reached by the Attorney General’s office with Thrift Land USA of Yonkers, Inc. (“Thrift Land”), a for-profit company that operated 1,100 collection bins throughout the New York metropolitan area. The settlement followed allegations that Thrift Land used a charitable veneer to trick and mislead the public into believing that the clothing and personal property they donated would benefit the charity whose name and logo appeared on its bins. However, Thrift Land sold the clothing and other items at a huge profit, while the charities named on the bins received only a small fee for the use of their name and logo. As part of the settlement, Thrift Land agreed to rebrand its bins so they did not state or imply that items deposited in the bins will benefit any charity or serve any charitable purpose. Thrift Land also made a payment of $650,000 to two not-for-profit organizations and paid $50,000 in penalties and costs to the state.

To ensure that owners of collection bins are in compliance with the new law, investigators from the Attorney General’s office inspected bins across the state and determined whether they met the statutory requirements. Notices of violations were then issued to bin operators, recycling companies, and charities that detailed the steps each owner must take in order to bring their respective bins into compliance with the law.

To date, a total of 4,762 collection bins throughout New York have been brought into compliance. The compliance effort is ongoing; Attorney General Schneiderman will continue to take appropriate enforcement action against bin owners and operators that fail to take the necessary steps to come into compliance.

Bringing a bin into compliance requires any person, business, not-for-profit organization, or other entity who owns or operates publicly accessible collection bins to affix a readily visible label on the front of the bin that includes the following:

• Factual information
  (1) name of the entity that owns the bin and any agent thereof
  (2) legal address
  (3) telephone number
  (4) e-mail address and website
  (5) any permit or license required by local law
  (6) a statement that nothing shall be left outside of such bin
  (7) a statement that takes the form: for more information, contact the Attorney General’s office at 800-771-7755 or ag.ny.gov

• A statement of purpose
  (1)“DONATED ITEMS WILL BE USED FOR CHARITABLE PURPOSES” – if all the property placed in the bin is directed to a non-business purpose
  *For collection bins owned by a not-for-profit organization, a statement describing the charitable causes that will benefit
  (2) “DONATED ITEMS WILL BE USED FOR PROFIT” – if any of the property placed in the bin is not directed to a non-business purpose

The Attorney General encourages New Yorkers to report out-of-compliance bins to his office at 800-771-7755 or submit a complaint online.

Below is a list of 20 bin owners with collection bins located throughout the state that are now in compliance.

Wave Hill Events Jan 26‒Feb 2

Wave Hill Events Jan 26‒Feb 2

Sat, January 27    Woodworking Workshop: The Wave Hill Chair—Day 1

Wave Hill’s inspirational landscape is complemented by the iconic Wave Hill chair. In this two-day workshop, construct your own Wave Hill Chair under the guidance of master woodworker, author and Wave Hill Director of Facilities Frank Perrone. Participants receive step-by-step instructions; no previous carpentry skills required. Must attend both sessions. Space is limited! $240/$210 Wave Hill Member. Registration required, online at wavehill.org or onsite at the Perkins Visitor Center. Day 2 takes place on Sunday, January 28.

WAVE HILL HOUSE, 9:30AM−4PM

Sat, January 27    Family Art Project: Painted Papers and the Stories of Eric Carle

What better season than winter to cuddle up with stories you love—like Eric Carle’s tales illustrating the wonders of nature. Hear Family Art Project storyteller Rama Mandel tell some of these enchanting favorites, then learn from Eric Carle’s techniques as we cut and layer hand-painted papers to form bright and colorful images. Free, and admission to the grounds is free until noon. 

WAVE HILL HOUSE, 10AM‒1PM

Sat, January 27    Cooking Demo: Barking up the Right Tree—Cooking with Cinnamon

Cinnamon is the dried bark taken from a number of closely-related tree species. Originating in East Asia, this warming spice has been used throughout the world for centuries. Watch—and taste—as a chef from Great Performances demonstrates some cinnamon-laced delicacies. Free with admission to the grounds.

WAVE HILL HOUSE, 2PM

Sun, January 28    Woodworking Workshop: The Wave Hill Chair—Day 2

Wave Hill’s inspirational landscape is complemented by the iconic Wave Hill chair. In this two-day workshop, construct your own Wave Hill Chair under the guidance of master woodworker, author and Wave Hill Director of Facilities Frank Perrone. Participants receive step-by-step instructions; no previous carpentry skills required. Must attend both sessions. Space is limited! $240/$210 Wave Hill Member. Registration required, online at wavehill.org or onsite at the Perkins Visitor Center. Day 1 takes place on Saturday, January 27.

WAVE HILL HOUSE, 9:30AM−NOON

Sun, January 28    Family Art Project: Painted Papers and the Stories of Eric Carle

What better season than winter to cuddle up with stories you love—like Eric Carle’s tales illustrating the wonders of nature. Hear Family Art Project storyteller Rama Mandel tell some of these enchanting favorites, then learn from Eric Carle’s techniques as we cut and layer hand-painted papers to form bright and colorful images. Free with admission to the grounds. 

WAVE HILL HOUSE, 10AM‒1PM

Sun, January 28    Art Workshop: Dronescapes—Sketching from a Bird’s-Eye Perspective

Join artist Jessica Rohrer in her Winter Workspace studio in Glyndor Gallery to see her unique artistic process, which uses images from high-flying drones to inspire her landscape drawings. Experiment with perspective using drone-captured images and create ink drawings of Wave Hill from a bird’s-eye view. Ages 12 and older welcome with an adult. $55/$45 Wave Hill Member. Registration required, online at wavehill.orgor onsite at the Perkins Visitor Center.

GLYNDOR GALLERY, 10AM−1PM

Sun, January 28    Winter Workspace Drop-In Sunday

Artists in the Winter Workspace program share their studio practice with visitors on this Drop-In Sunday. Artists in Session 1 of this program are Tomie Arai, Camille Hoffman, Pedro Ramirez, Jessica Rohrer,Jean Shin and Austin Thomas. For more about who is in residence on Sundays, visit wavehill.org. Free with admission to the grounds.

GLYNDOR  GALLERY, 1–3PM

Sun, January 28    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

Mon, January 29

Closed to the public.

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–4:30PM, November 1–March 14. Closes 5:30PM, starting March 15.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

MAYOR DE BLASIO NAMES JON PAUL LUPO AS DIRECTOR OF INTERGOVERNMENTAL AFFAIRS

Sherif Soliman named Senior Advisor to the First Deputy Mayor, Simonia Brown named Director of State Legislative Affairs, and Jeff Lynch named Director of City Legislative Affairs

  Mayor de Blasio has named Jon Paul Lupo as Director of Intergovernmental Affairs, Sherif Soliman as Senior Advisor for the First Deputy Mayor, Simonia Brown as Director of State Legislative Affairs, and Jeff Lynch as Director of City Legislative Affairs.

“We’re building a world-class team to help make New York City stronger and fairer than ever before,” said Mayor Bill de Blasio. “Jon Paul, Sherif, Simonia and Jeff are extraordinarily talented public servants who work tirelessly on behalf of our city. I am thrilled to have them playing senior roles in our second-term agenda."

Jon Paul Lupo has been promoted to Director of the Mayor’s Office of Intergovernmental Affairs, where he will be responsible for coordinating the City's interaction with the City, State and Federal Legislative Affairs Offices, as well as coordinating with the offices of the City Comptroller, Public Advocate and Borough Presidents. Lupo was previously Director of City Legislative Affairs and was responsible for managing the Administration’s interactions with the City Council and coordinating legislative priorities. Prior to his time in the Mayor’s Office, Lupo had more than a decade of experience in government, politics and communications, including as Chief of Staff to Brooklyn Borough President Marty Markowitz and in senior positions on the campaigns of Senator Jim Webb in Virginia and Senator Tim Johnson in South Dakota.

Sherif Soliman was named Senior Advisor to the First Deputy Mayor, where he will advise the First Deputy Mayor on policy, program implementation and special projects.  His work will include but not be limited to labor, pensions, tax policy and public authorities. Soliman previously served as Director of State Legislative Affairs, where he was responsible for coordinating legislative priorities and the team that serves as a liaison between the Administration and the State Senate and Assembly. Soliman has over two decades of experience working in city and state government in different capacities, including the completion of thirteen state legislative sessions in Albany. In his most recent role as Director of State Legislative Affairs for Mayor Bill de Blasio, Soliman secured several victories on behalf of the City of New York including the enactment of the City’s nation-leading universal pre-kindergarten program.

Simonia Brown was named Director of State Legislative Affairs and will coordinate legislative priorities and manage the team that liaises with the State Legislature. Simonia Brown currently serves as an Associate Director at the Office of Management and Budget. During her tenure, she managed the Education and CUNY budgets, Intergovernmental Relations, and Community Board Relations. Before joining OMB, Brown worked for nine years in the New York State Assembly, serving as Senior Assistant Secretary for Program & Policy to the Speaker and Assembly Leadership, making policy recommendations for Assembly Standing Committees and leading numerous budget and policy negotiations.

Additionally, Jeff Lynch will now serve as Director of City Legislative Affairs. Lynch was previously First Deputy Commission of the Community Affairs Unit, where he provided crucial support to the Commissioner in managing day-to-day operations and coordinating staff and community interactions. Before that, he served as Assistant Commissioner of Intergovernmental Affairs at Department of Transportation, and Chief of Staff to Council Member James Vacca for 8 years.

Council Member Rafael Salamanca, Jr - New Chair of the Land Use Committee

Statement on the Committee on Land Use

“I’m incredibly proud to have the confidence of the Speaker and my colleagues to serve as the Land Use Chair for this session. ‘Our city is at a crossroads, including my community in the South Bronx. This body, led by a Speaker who understands the importance of having a strong, independent Council, should be on the front lines on shaping the planning, development and all other land use actions in a way that listens to and addresses the concerns of all New Yorkers. ‘I believe we can and will do that. After seeing much development in my district and working to approve over 4,000 units of affordable housing in under two years, I believe I am ready to work with each and every member of the Council to ensure the needs of their constituents are met with any given land use action. ‘With that said, I’m ready to roll up my sleeves, visit as many neighborhoods as I can and most importantly, listen on how I can help to shape land use for the five boroughs over the next four years. Let’s get to work.”

Council Member Andy King to Host Open House and Winter Coat Giveaway For 12th District Constituents

  City Council Member Andy King will hold a community “meet and greet” and free winter coat giveaway at his 12th District offices at 940 East Gun Hill Road on Monday, Jan. 15, from 1 to 3 p.m.

Joining Council Member King will be his staff and representatives from local groups who will be available to answer community questions.

The open house also celebrates the observance of the birthday of the slain civil rights leader Rev. Dr. Martin Luther King Jr.

“It’s only fitting that on the day of the Rev. Dr. Martin Luther King Jr.’s actual birthday that we open up our house as Dr. King had opened up his heart and gave his life to improve the lives of others. That true commitment to service is what we strive for in the 12th District,” said Council Member King.

Unfortunately, far too many Bronx residents are unable to afford a warm winter jacket or coat this winter season. To help, Council Member King will distribute free coats to the neediest residents in the Bronx on Monday.

This event is free and open to the public.

Akayed Ullah Indicted On Terrorism And Explosives Charges In Connection With The Detonation Of A Bomb In New York City

  Dana J. Boente, the Acting Assistant Attorney General for National Security, and Geoffrey S. Berman, the U.S. Attorney for the Southern District of New York, announced that a grand jury in the Southern District of New York has returned a six-count indictment (the “Indictment”) against AKAYED ULLAH in connection with ULLAH’s detonation and attempted detonation of a bomb in a subway station near the New York Port Authority Bus Terminal in New York City on December 11, 2017.  The Indictment charges ULLAH with one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), one count of using and attempting to use a weapon of mass destruction, one count of bombing and attempting to bomb a place of public use and a public transportation system, one count of destruction and attempted destruction of property by means of fire or explosives, one count of conducting and attempting to conduct a terrorist attack against a mass transportation system, and one count of using a destructive device during and in furtherance of a crime of violence.  The case has been assigned to the Honorable Richard J. Sullivan. 

ULLAH was initially arrested on a Complaint and presented before the Honorable Katharine H. Parker on December 13, 2017.  ULLAH was ordered detained and has been in federal custody since his arrest.  He will be arraigned before Judge Sullivan on January 11, 2018, at 3:00 p.m.

U.S. Attorney Geoffrey S. Berman said:  “Less than one month ago, during the holiday rush hour, Akayed Ullah allegedly detonated a bomb in a major transit hub of New York City.  In selecting this time and place, Ullah’s alleged purpose in the Port Authority bombing was painfully clear: to inflict as much damage as possible, and to strike fear into the hearts of New Yorkers in the name of ISIS.  Ullah’s alleged plot failed, and he is now charged with federal terrorism offenses and facing life behind bars.”

Acting Assistant Attorney General Boente said:  “As alleged in the indictment Akayed Ullah constructed a pipe bomb and detonated it in a mass transit hub in the heart of New York City to terrorize as many people as possible and to bring ISIS-inspired violence to American soil. Thanks to the tremendous efforts of the law enforcement community, the defendant was safely apprehended at the scene of the attack that injured three people, and will now be held accountable to the fullest extent of the law.  The National Security Division remains steadfast in its mission to pursue justice against those who seek to harm our country and our citizens in the name of terrorism.”

As alleged in the Indictment and the Complaint:[1]

Islamic State of Iraq and Al-Sham 

ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide.  ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence.  ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts. 

The December 11, 2017 Attack

On December 11, 2017, at approximately 7:20 a.m., AKAYED ULLAH detonated an improvised explosive device (“IED”) detonated inside a subway terminal (the “Subway Terminal”) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the “December 11 Attack”).  Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department (“PAPD”) located ULLAH lying on the ground in the vicinity of the explosion.  Surveillance footage captured ULLAH walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion.  ULLAH was subsequently taken into custody by law enforcement.  During the course of ULLAH’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the “Pipe Bomb”).  Specifically, law enforcement located, among other items, (i) a nine-volt battery inside ULLAH’s pants pocket; (ii) wires connected to the battery and running underneath ULLAH’s jacket; (iii) two plastic zip ties underneath ULLAH’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip ties, among other items.After ULLAH was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. 

During that interview, ULLAH stated, among other things, the following:  

ULLAH constructed the Pipe Bomb and carried out the December 11 Attack.  ULLAH was inspired by ISIS to carry out the December 11 Attack, and stated, among other things, “I did it for the Islamic State.”

ULLAH constructed the Pipe Bomb at his residence in Brooklyn (“the Residence”).

The Pipe Bomb was composed of a metal pipe, which ULLAH filled with explosive material that he created.  ULLAH used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb.  ULLAH filled the Pipe Bomb with metal screws, which he believed would cause maximum damage.  ULLAH used zip ties to secure the Pipe Bomb to his body.

ULLAH carried out the December 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East.  One of ULLAH’s goals in carrying out the December 11 Attack was to terrorize as many people as possible.  He chose to carry out the attack on a work day because he believed that there would be more people.

ULLAH’s radicalization began in at least approximately 2014.  ULLAH viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands.  He began researching how to build IEDs on the Internet approximately one year prior to the attack.

On the morning of December 11, 2017, shortly before carrying out the attack, ULLAH posted a statement on his Facebook account referring to the President of the United States, stating, in substance, “Trump you failed to protect your nation.”  ULLAH also posted a statement that he believed would be understood by members and supporters of ISIS to convey that ULLAH carried out the attack in the name of ISIS.

Items Recovered from ULLAH’s Residence

On December 11, 2017, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant.  Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in ULLAH’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”

If convicted of the charges in the Indictment, potential maximum sentences could include: (i) 20 years in prison for providing and attempting to provide material support and resources to a designated foreign terrorist organization, namely, ISIS; (ii) life in prison for using and attempting to use a weapon of mass destruction; (iii) life in prison for bombing and attempting to bomb a place of public use and a public transportation system; (iv) 20 years in prison (maximum) and a mandatory minimum sentence of five years for destruction and attempted destruction of property by means of fire or explosives; (v) life in prison for conducting and attempting to conduct a terrorist attack against a mass transportation system; and (vi) a consecutive sentence of 30 years in prison (to life) for using a destructive device during and in furtherance of a crime of violence.  The potential sentences are all related to Ullah’s detonation and attempted detonation of an explosive device in New York City. 

 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 the judge. 

Mr. Boente and Mr. Berman praised the outstanding investigative efforts of the FBI, the NYPD, the Department of Homeland Security, Homeland Security Investigations (“HSI”), and the PAPD.  ULLAH’s arrest and indictment are the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI, PAPD, and other agencies – and the U.S. Department of Justice’s National Security Division.

The prosecution is being handled by the Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski, and George D. Turner are in charge of the prosecution, with assistance from Trial Attorney Jerome J. Teresinski of the Counterterrorism Section of the Justice Department’s National Security Division.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint, and the descriptions of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Members And Associates Of Genovese Crime Family Charged In Manhattan Federal Court With Racketeering Conspiracy And Related Offenses

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging VINCENT ESPOSITO, STEVEN ARENA, FRANK GIOVINCO, FRANK COGNETTA, and VINCENT D’ACUNTO, JR., each a member or associate of the Genovese Organized Crime Family of La Cosa Nostra, with racketeering conspiracy and related offenses arising out of a multi-year investigation.  COGNETTA was arrested on January 8, 2018, and charged by criminal complaint.  The remaining defendants were arrested this morning and are expected to be presented before U.S. Magistrate Judge Barbara C. Moses later today.  The case has been assigned to United States District Judge Victor Marrero.

The following allegations are based on the Indictment and other documents filed in Manhattan federal court[1]:

La Cosa Nostra, also known as the “Mob” or the “Mafia,” operates through entities known as “Families.”  One of the Families operating in the New York City area is the Genovese Crime Family.  From 2001 to 2017, ESPOSITO, ARENA, GIOVINCO, COGNETTA, and D’ACUNTO, along with other members and associates of the Genovese Crime Family, committed a wide range of crimes, including multiple acts of extortion, honest services fraud, and bribery.  In particular, and as charged in the Indictment, ESPOSITO conspired with ARENA and D’ACUNTO to extort annual cash payments from an officer at a labor union by threatening the officer with violence and the loss of the officer’s job.  COGNETTA, himself a labor union officer, engaged in multiple schemes to defraud his union of his honest services by, among other things, soliciting and accepting bribes and steering union benefit plans into investments in exchange for kickbacks.

Set forth below is a chart containing the names, ages, residences, charges, and maximum penalties for the defendants.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the FBI, the NYPD, the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

DEFENDANT	AGE	CHARGES	MAXIMUM PENALTY
VINCENT ESPOSITO	50	RICO Conspiracy; Extortion Conspiracy	40 years in prison
STEVEN ARENA	60	RICO Conspiracy; Extortion Conspiracy	40 years in prison
FRANK GIOVINCO	50	RICO Conspiracy	20 years in prison
FRANK COGNETTA	42	RICO Conspiracy; Six Counts of Honest Services Fraud; Two Counts of Bribery in Connection with Employee Benefit Plans	126 years in prison
VINCENT D’ACUNTO, JR.	49	RICO Conspiracy; Extortion Conspiracy	40 years in prison

[1] As the introductory phase 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 should be treated as an allegation.