MAYOR ADAMS CELEBRATES HOUSING MILESTONE AHEAD OF SCHEDULE, WITH PLANS TO REDEVELOP BRONX LIBRARY INTO NEW FAMILY-FRIENDLY HOUSING AND STATE-OF-THE-ART LIBRARY

 

Announced in State of the City, ‘24 in 24’ Plan Aims to Advance 24 Affordable Housing Projects on Public Sites in 2024, Creating or Preserving Over 12,000 Units of Housing

 

Adams Administration Has Already Advanced Housing on More Than Twelve Public Sites in 2024, Moving Ahead of Schedule on Mayor Adams’ ‘24 in 24’ Plan

New York City Mayor Eric Adams today celebrated a major milestone towards the city’s ambitious “24 in 24” plan to advance 24 affordable housing projects on public sites in 2024 that will ultimately create or preserve over 12,000 units of housing. Delivering on a key promise in Mayor Adams’ State of the City address, the city has already advanced — ahead of schedule — housing on more than half the public sites it committed to moving forward on in 2024. The 13^th development, the Grand Concourse branch of the New York Public Library, today started community engagement for an affordable housing project and a new state-of-the-art library. The new development will create much-needed family-friendly housing for Bronx residents and further the administration’s commitment to addressing the housing shortage crisis by building more affordable housing across the five boroughs. 

 

“To meet the moment of addressing a historic housing crisis, we must use every tool possible to create more affordable housing in our city and build our way towards a better future,” said Mayor Adams. “Our administration continues to innovate and explore every possible piece of land in our city, especially on our public sites, to create or preserve more housing units. Thanks to a multi-agency collaboration, we are already more than halfway on delivering critically needed housing to New Yorkers through our ‘24 in 24’ plan. While the city is doing its part, we continue our call on our partners in Albany to fulfill their duty and pass legislation needed to allow our administration to build the housing New Yorkers need.” 

 

“The Adams administration is dedicated to solving our city’s decades-long housing crisis, and reaching the halfway milestone of activating 24 public sites for housing, well ahead of schedule, is proof of that dedication,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “Delivering on a vision born in Women Forward NYC to provide even more resources families need to thrive, the New York Public Library’s Grand Concourse branch will also bring Bronx families closer to quality, affordable housing and state-of-the-art library facilities.”

 

“I’m excited to see the New York City Department of Housing Preservation and Development and New York Public Library kick off community engagement for the ultimate redevelopment of the Grand Concourse library into a future, state-of-the-art library that also provides much needed affordable housing within the community,” said Executive Director for Housing Leila Bozorg. “Not only does this mark the halfway point of the mayor’s commitment to advance 24 public site developments in 2024, but it’s also a great example of how public sites can be reimagined to meet the ever-growing and changing needs of our neighborhoods.”

 

“We can solve the housing crisis and we can enrich neighborhoods — it just takes creativity, unwavering dedication to our communities, and more efforts like the Grand Concourse library project,” said New York City Department of Housing Preservation and Development (HPD) Commissioner Adolfo Carrión Jr. “Together, with the New York Public Library and the Bronx community, we’re transforming a 65-year-old library branch into a modern, vibrant facility alongside new affordable apartments. We’re not just here to stem a crisis, we’re here to create homes and make life better for all New Yorkers.”

 

“Housing is not a luxury,” said New York City Housing Authority (NYCHA) Chief Executive Officer Lisa Bova-Hiatt. “Housing is a fundamental need and directly affects the quality of life for all New Yorkers. We commend Mayor Adams and his administration for their ongoing dedication and work in advancing projects to preserve and build new affordable housing stock across New York City through the ‘24 in 24’ plan.”

 

“We need more housing everywhere right now in New York City, and through the ‘24 in 24’ plan, the Adams administration is taking action by turning city assets into housing for New Yorkers,” said New York City Economic Development (NYEDC) Corporation President & Chief Executive Officer Andrew Kimball. “NYCEDC is thrilled to be working alongside our partners in government and the private sector to achieve this ambitious housing goal and look forward to welcoming families to this former library turned housing complex along the Grand Concourse in the near future.”

 

 “Libraries offer a wealth of opportunities in free and welcoming spaces that support the needs and dreams of New Yorkers,” said New York Public Library President Anthony W. Marx. “The New York Public Library is looking forward to working with the city on this innovative proposal to build a state-of-the-art Grand Concourse branch that can adapt and evolve with the community. We are excited to be part of a project that includes 100 percent affordable housing at a time when our city is in the midst of a housing crisis. This process is just in the beginning stages, and we are eager to hear from our patrons about what they would like to see at their new library and look forward to updating everyone on what we learn.”

 

The existing library branch was built in 1959 and has served the Bronx for 65 years. The redevelopment of the site will be initiated through a competitive process that asks developers to respond to a set of goals and guidelines that reflect community priorities. HPD has launched a webpage with additional information about how community members can get more engaged in the process. HPD and the New York Public Library will begin outreach in the community this spring. In the meantime, the library branch will remain open to serve the public until construction begins.

 

Prior to today’s announcement the administration has advanced housing on 12 other public sites:

 

Brooklyn:

• 516 Bergen Street: HPD selected a development team to build approximately 275 units.
• Bay View Houses: NYCHA is preserving 1,610 units through the Permanent Affordability Commitment Together (PACT) program.
• Coney Island Houses: NYCHA started community engagement ahead of a resident vote to preserve 530 units.
• Unity Towers: NYCHA started community engagement ahead of a resident vote to preserve 192 units.

Bronx:

• 351 Powers Avenue: HPD selected a development team to build approximately 110 units.
• 1388-1400 Stebbins Avenue: HPD released a Request for Proposals (RFP) to build approximately 110 units.
• Bronx River Addition: NYCHA commenced resident voting on preserving 133 units.

Manhattan:

• 2460-2478 Second Avenue: NYCEDC selected a lead consultant for the education and engagement campaign for the Harlem African Burial Ground Memorial where the city is advancing approximately 730 units.
• 4095 9th Avenue: HPD launched community engagement to build approximately 570 units.
• Campos Plaza II: NYCHA is preserving 224 units through the PACT program.

Queens:

• 5421 Center Boulevard: HPD launched community engagement to build approximately 850 units.

Staten Island:

• 30 Canal Street: NYCEDC released an RFP seeking proposals to build approximately 550 units.

Today’s announcement also delivers on another key promise made in Mayor Adams’ State of the City speech with the ambitious goal of making New York City the most women-forward city in the United States. Unveiled in January 2024, “Women Forward NYC: An Action Plan for Gender Equity” invests more than $43 million in initiatives to help all women, including through additional place-based housing strategies, like co-located housing with library facilities, that support the needs of families.

 

Mayor Adams has taken bold steps to address the city’s severe housing crisis and achieve the administration’s moonshot goal of creating 500,000 homes over the next decade. The Adams administration introduced “City of Yes for Housing Opportunity” to add “a little more housing in every neighborhood.” City of Yes for Housing Opportunity is the most pro-housing set of zoning changes in New York’s history. These changes includes lifting arbitrary and costly parking mandates for new residential construction; implementing the Universal Affordability Preference, a bonus allowing roughly 20 percent more housing in developments, so long as the additional homes are affordable; developing more transit-oriented development and town center zoning, which would allow three-to-five story apartment buildings to be built near transit and along commercial corridors; and allowing homeowners to add accessory homes, like backyard cottages.

 

To accelerate housing production and deliver relief to New Yorkers, the Adams administration has also advanced a number of creative solutions, including laying out an office conversion accelerator to advance conversions more quickly; unveiling new proposed rules to streamline approvals for sustainable housing; and debuting several pilot programs to help fund the creation of accessory dwelling units, help move New Yorkers out of shelters and into renovated apartments, and help fuel mixed-income developments in neighborhoods across the city; among other innovative efforts.

 

Construction Loan Secured For 120 East 144th Street In Mott Haven, The Bronx

 

The Beitel Group has secured a $150 million loan for the development of 120 East 144th Street, a new residential project in Mott Haven, The Bronx. The funding, which was supplied by SCALE Lending, will support the construction of the 13-story, 450-unit property.

120 East 144th Street was designed by S. Wieder Architect PC and will yield 289,000 square feet across 13 floors, and will offer a range of studio to two-bedroom apartments, with select units featuring private terraces. Beyond that, plans feature a variety of amenities, including an outdoor courtyard, fitness center, and a rooftop space.

Construction is being managed by Prestige Construction NY and is expected to complete by mid-2025. The site at 120 East 144th Street, which was acquired by the Beitel Group in 2022, has already undergone a number of changes, including the demolition of the original property at the address. Funding for the project is the latest in a series of loans issued by SCALE in 2024, with nearly $600 million in closings announced over the past three months for the lender.

“The need for multifamily in New York City’s residential neighborhoods continues to grow, and new housing projects like 120 East 144th Street are critical in helping meet that demand,” said Martin Nussbaum, co-founder and principal at Slate Property Group. “We’re thrilled to continue bringing new inventory online and to work with an accomplished firm such as Beitel Group, whose national portfolio and success in NYC speak for themselves.”

The closest subways from 120 East 144th Street are the 2, 4, and 5 trains at the 149th Street-Grand Concourse station.

Queens Man Sentenced To Five Years In Prison For Multimillion-Dollar Bank Fraud And Money Laundering Scheme

 

Chinwendu Alisigwe Used Fake IDs to Open Dozens of Bank Accounts, Which He Then Used to Launder Millions in Ill-Gotten Fraud Proceeds

Damian Williams, the United States Attorney for the Southern District of New York, announced that CHINWENDU ALISIGWE was sentenced to five years in prison for his role in a wide-ranging bank fraud and money laundering conspiracy, which resulted in the misappropriation of approximately $4.5 million in victim funds.  ALISIGWE was previously convicted by a jury following a trial before U.S. District Judge Valerie E. Caproni, who imposed this sentence. 

U.S. Attorney Damian Williams said:  “Over the course of years, Chinwendu Alisigwe used fake IDs to open dozens of bank accounts, which he then used to launder proceeds obtained from victims of business email compromise and other fraud schemes.  Alisigwe’s co-conspirators scammed dozens of victims — including individuals, businesses, a county government, and a charity that provides wheelchairs for children — into sending money to Alisigwe’s network of bank accounts.  Alisigwe then laundered the money, spending his cut on shopping sprees and sending the rest to his co-conspirators overseas.  As today’s sentence demonstrates, money launderers who assist scammers abroad, like Alisigwe, will be held accountable by this Office.” 

According to the allegations contained in the Superseding Indictment, the evidence offered at trial, and statements made in public filings:

From approximately 2017 to 2020, ALISIGWE used fake identifications to open 36 separate bank accounts at six different financial institutions.  He opened those accounts with over a dozen fraudulent passports and other fraudulent identity documents bearing his photograph but the names of other individuals.  In the course of this criminal conduct, ALISIGWE used the names and social security numbers of real people who were completely unaware that ALISIGWE was using them in his fraud. 

After ALISIGWE opened the fraudulent bank accounts, the accounts received millions of dollars from a variety of fraud schemes, including business email compromise schemes.  The funds came from numerous victims, including a children’s charity, individual bank accounts, a public company, a life insurance company, and a county government.  In total, ALISIGWE received approximately $4.5 million of fraud proceeds into his network of bank accounts. 

After the fraud proceeds were deposited into the accounts opened by ALISIGWE, he laundered the proceeds through a series of transactions designed to disguise their nature and source.  For example, ALISIGWE consistently transferred large sums of the victims’ money from account to account that he had opened in other people’s names.  After disguising the nature and source of the fraud proceeds through these transactions, ALISIGWE wired these funds to bank accounts in foreign countries, including China and the United Kingdom.  ALISIGWE also spent large portions of the stolen money on clothing and other personal items.  For example, ALISIGWE used fraud proceeds to make approximately $100,000 in purchases from retail stores like Zara, Nordstrom, Macy’s, Best Buy, and Rockaway Liquor.  He also withdrew approximately $650,000 of the fraud proceeds in cash.  Ultimately, the transactions into and out of the 36 accounts opened by ALISIGWE amounted to nearly $6 million. 

In addition to his prison term, ALISIGWE, 38, of Jamaica, New York, was sentenced to five years of supervised release and ordered to pay $499,949.88 in restitution and $4,463,475.80 in forfeiture.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation in the course of this investigation.

Idaho Man Arrested for Attempting to Provide Material Support to ISIS

 

Alexander Scott Mercurio, 18, of Coeur d’Alene, Idaho, was arrested Saturday, April 6, 2024, in Coeur d’Alene for attempting to provide material support and resources to ISIS.

According to the affidavit in support of the criminal complaint, Mercurio pledged his allegiance to ISIS and intended to commit attacks on its behalf. He planned to attack individuals at churches in Coeur d’Alene on April 7 using weapons, including knives, firearms, and fire.

The FBI’s Joint Terrorism Task Force (JTTF) conducted the investigation and thwarted Mercurio’s violent plot. Mercurio is currently in custody awaiting his initial appearance which will be set by the Court.

“As alleged in the complaint, the defendant swore an oath of loyalty to ISIS and planned to wage an attack in its name on churches in Coeur d’Alene, Idaho,” said Attorney General Merrick B. Garland. “Thanks to the investigative efforts of the FBI, the defendant was taken into custody before he could act, and he is now charged with attempting to support ISIS’s mission of terror and violence. The Justice Department will continue to relentlessly pursue, disrupt, and hold accountable those who would commit acts of terrorism against the people and interests of the United States.”

“The defendant allegedly pledged loyalty to ISIS and sought to attack people attending churches in Idaho, a truly horrific plan which was detected and thwarted by the FBI’s Joint Terrorism Task Force,” said FBI Director Christopher Wray. “This investigation demonstrates the FBI’s steadfast commitment to work with our law enforcement partners to stop those who wish to commit acts of violence on behalf of – or inspired by – foreign terrorist groups.”

“Across the Department of Justice, and in my office, we have no higher calling than to protect our nation and our communities from terrorism. Along with our law enforcement partners, my office will always remain laser-focused on this part of our mission,” said U.S. Attorney Josh Hurwit for the District of Idaho. “I want to thank the FBI for its tireless work on this investigation and its thorough efforts to prevent violence. The support from local law enforcement was also integral to successfully disrupting the alleged plot.”

“This case should be an eye-opener to the dangers of self-radicalization, which is a real threat to our communities,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Protecting the American people from terrorism remains the FBI’s number one priority, and we continue to encourage the public to report anything suspicious to the FBI or your local law enforcement.”

Mercurio is charged by a federal complaint with attempting to provide material support or resources to a designated foreign terrorist organization. If convicted, Mercurio faces a maximum penalty of 20 years in federal prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case with valuable assistance provided by the Coeur d’Alene Police Department, Kootenai County Sheriff’s Office, and Ada County Sheriff’s Office.

Assistant U.S. Attorneys Heather S. Patricco and David G. Robins and First Assistant U.S. Attorney Justin D. Whatcott for the District of Idaho, and Charles Kovats and Andrea Broach of the National Security Division’s Counterterrorism Section are prosecuting the case.

A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Two Charged In Connection With Scheme To Operate Industrial-Scale Illegal Narcotics Pill Pressing Operations Throughout New York City

 

Damian Williams, the United States Attorney for the Southern District of New York; Darren B. McCormack, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); and Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), announced the filing of a Complaint in Manhattan federal court charging JUAN MOISES PEREZ MENDEZ, a/k/a “Caballero,” and ODALIS EUSEBIO PERALTA BAUTISTA, a/k/a “Luis Collazo Santos,” with conspiracy to distribute narcotics and distribution of narcotics.  PEREZ MENDEZ and PERALTA BAUTISTA were arrested on Saturday evening, April 6, 2024, in the Bronx.  They were presented before U.S. Magistrate Judge Stewart D. Aaron.  

U.S. Attorney Damian Williams said: “Over the past year, this Office has worked with laser focus to disrupt industrial-scale pill mills that press powdered narcotics into pills.  In the process, we have removed millions of deadly fentanyl pills, meant to mimic legitimate prescription drugs, from the street.  This past weekend, we acted again, shutting down an alleged pill mill in the Bronx and seizing large amounts of fentanyl and methamphetamine.  We also arrested the two individuals who allegedly operated that pill mill.  As alleged, one of those individuals, Juan Moises Perez Mendez, is a prolific narcotics trafficker, connected to at least two other major pill presses this Office has disrupted in the last year.  I am deeply grateful for the efforts of our law enforcement partners and the career prosecutors of this Office as we work to save lives by keeping fentanyl off the streets of our community.”    

HSI Acting Special Agent in Charge Darren B. McCormack said: “These arrests are the result of the exceptional work our El Dorado Task Force does to remove the threat of lethal amounts of fentanyl-laced counterfeit prescription pills that are wreaking havoc in our communities.  HSI New York, along with our law enforcement partners, remain determined to shut down these underground poison mills and dismantle the flow of deadly substances into our communities.  The criminals who operate these illegitimate manufacturing sites will face justice for their production and distribution of illicit synthetic opioids which are responsible for perpetuating the public safety epidemic across the country.”

DEA Special Agent in Charge Frank A. Tarentino III said: “Over the weekend, the DEA New York and our law enforcement partners conducted another successful operation resulting in two arrests and shutting down another illegal pill mill located near a school in the Bronx.  Fake pills, laced with fentanyl and methamphetamine, like the ones seized this weekend, come in every color, shape, and form, and are disguised to mirror the appearance of prescription pills, making them hard to detect by sight and extremely deadly.  This operation emphasizes our commitment to protecting communities from these fake pills and those responsible for producing them.  I commend our special agents and law enforcement partners on this successful operation.”

As alleged in the Complaint filed today in Manhattan federal court:[1]

Law enforcement has been investigating a network of drug traffickers operating industrial-scale illegal narcotics pill pressing operations in multiple locations throughout New York City.  As part of those operations, the traffickers have converted spaces in residential buildings to press large quantities of powder narcotics, including fentanyl and methamphetamine, into pill form for wholesale distribution.  At these locations, drug traffickers have manufactured millions of pills for further distribution, sometimes manufacturing hundreds of thousands of pills in a single session. 

In or about May 2023, law enforcement searched the basement of a particular building in Washington Heights (the “Washington Heights Building”), where they found large quantities of narcotics, as well as the materials and equipment necessary to press narcotics into pill form, including commercial-grade pill presses.  In connection with that search, law enforcement officers arrested Juan Efren Paulino. 

PEREZ MENDEZ appears to have entered the basement of the Washington Heights Building in the days leading up to the search and communicated with Paulino regarding narcotics.

A photograph of the narcotics recovered from the Washington Heights Building is below:

In or about October 2023, law enforcement officers searched the basement of a building located on Beaumont Avenue in the Bronx (the “Beaumont Building”) and arrested four individuals.  In the basement of the Beaumont Building, law enforcement officers found hundreds of thousands of pills and over 20 kilograms of narcotics, along with three industrial pill press machines, one disassembled pill press, a kilogram press, and narcotics mixing and repackaging materials including blenders, dyes, jars of calcium citrate (frequently used as a narcotics cutting agent), and industrial-grade gas masks (used for protection when handling narcotic powders intended for pill pressing). 

In or about August 2023, law enforcement officers observed PEREZ MENDEZ appearing to enter or exit the Beaumont Building. 

A photograph of the narcotics recovered from the Beaumont Building is below:

In light of PEREZ MENDEZ’s involvement in the pill mills at the Washington Heights and Beaumont Buildings, law enforcement officers began conducting surveillance of PEREZ MENDEZ.  During the course of that surveillance, law enforcement officers identified a storage room (the “Storage Room”) in the basement of a particular building located on Gerard Avenue in the Bronx (the “Gerard Avenue Building”) that was frequented by PEREZ MENDEZ and PERALTA BAUTISTA.

On April 6, 2024, at approximately 7:15 p.m., law enforcement officers arrested PEREZ MENDEZ as he was exiting the Gerard Avenue Building, only minutes after leaving the Storage Room.  After the arrest of PEREZ MENDEZ, law enforcement officers approached the door to the Storage Room.  A loud pounding sound could be heard emanating from within the Storage Room, which was consistent with the operation of a pill press.

Not long after, the loud pounding sound stopped, and PERALTA BAUTISTA exited the Storage Room.  At the time, PERALTA BAUTISTA’s shirt appears to have had white powder on it.  As PERALTA BAUTISTA exited the Storage Room, he was placed under arrest.

Law enforcement officers then searched the Storage Room, which was used by PEREZ MENDEZ and PERALTA BAUTISTA to store powdered narcotics, combine the narcotics with other fillers, use dyes to color the combined powders, and then use large industrial-scale pill presses to create hundreds of thousands of deadly pills.  Many of the pills appear to have been manufactured to be indistinguishable from prescription medications such as Xanax, Adderall, and OxyContin, though in fact they contain, among other things, varying quantities of fentanyl. 

Among other things, law enforcement officers found two industrial-scale pill presses; approximately 130,000 pills, the vast majority of which field tested positive for the presence of fentanyl (the remainder of which field tested positive for the presence of methamphetamine); approximately three kilograms of a powder in zip lock bags that tested positive for the presence of fentanyl; a bucket containing approximately 20 pounds of powdered narcotics, which field tested positive for the presence of methamphetamine; and approximately 3.5 pounds of suspected crystalized methamphetamine.  The suspected narcotics and pill presses are depicted, in part, below:       

Additionally, law enforcement officers found materials used to mix powdered narcotics with fillers as well as packaging materials used to package narcotics for further distribution.  Those items included mixing bowls, a blender, strainers, dyes, thousands of glassine envelopes, and empty bottles of calcium citrate.  From on or about June 10, 2023, to on or about March 3, 2024, PEREZ MENDEZ and his girlfriend purchased approximately 1,274 bottles of calcium pills from a particular retail chain of consumer products.  This amounts to approximately 356,720 calcium pills.

JUAN MOISES PEREZ MENDEZ, 56, of the Bronx, New York, and ODALIS EUSEBIO PERALTA BAUTISTA, 53, of New York, New York, are each charged with one count of conspiracy to distribute narcotics and one count of narcotics distribution, both of which carry a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.   

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

Mr. Williams praised the outstanding investigative work of the El Dorado Task Force International Narcotics and Money Laundering Unit, which is comprised of law enforcement officers and investigators from HSI, the DEA, the New York City Police Department, the New York State Police, the U.S. Postal Service, the Kings County District Attorney’s Office, and the New York High Intensity Drug Trafficking Area Task Force, in connection with this investigation. 

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Maggie Lynaugh and Adam Sowlati are in charge of the prosecution.

The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.