Final Defendant Sentenced In Connection With $1.3 Million Fraud Scheme Involving U.S. Postal Employees

 

Damian Williams, the United States Attorney for the Southern District of New York, announced that NATHANAEL FOUCAULT — a former U.S. Postal Service (“USPS”) letter carrier who was charged with eight other defendants in connection with their theft and unauthorized use of credit cards to defraud several national financial institutions, credit card companies, and major retailers — was sentenced by U.S. District Judge Paul G. Gardephe.  FOUCAULT’s co-defendants, JOHNNY DAMUS, a/k/a “Ace,” RASHAAN RICHARDS, a/k/a “Jay Dee,” a/k/a “JD,” a/k/a “Payso,” DEVON RICHARDS, a/k/a “Dev,” CONRAD HERON, a/k/a “Conny Cash,” LOUIS JEUNE VERLY, a/k/a “Luis Jesus Virola,” KAREEM SHEPHERD, a/k/a “Reem,” a/k/a “Marcus Ford,” a/k/a “Frank James,” FABIOLA MOMPOINT, a/k/a “Lady Fab,” and JOHNATHAN PERSAUD were previously sentenced by Judge Gardephe.  

U.S. Attorney Damian Williams said: “These individuals participated in a years-long scheme to manipulate credit card companies and major retailers across New York and New Jersey in order to enrich themselves.  The sprawling scheme was sophisticated, organized, and efficient.  The USPS employees involved in this scheme abused their positions of trust in order to supercharge the fraud, which caused serious financial loss and compromised the identities of hundreds of victims.  Thanks to the diligence of our law enforcement partners and the career prosecutors of this Office, the defendants have now been held accountable for their brazen criminal conduct.” 

According to the allegations contained in the Superseding Indictment and statements made in public filings:

The defendants were convicted and sentenced for their participation in a multi-year scheme to steal credit cards from the mail spanning from approximately December 2018 to September 2022; use those stolen credit cards at a variety of stores, including high-end retailers; and sell some of the merchandise purchased with the stolen cards online.  In order to obtain credit cards for use in the scheme, beginning in December 2018, RASHAAN RICHARDS, DEVON RICHARDS, and SHEPHERD conspired with USPS letter carriers, including MOMPOINT, FOULCAULT, and PERSAUD, to steal credit cards directly from mail routes.  At the direction of DAMUS, members of the conspiracy, including RASHAAN RICHARDS, DEVON RICHARDS, SHEPHERD, HERON, and VERLY used the stolen credit cards at a variety of stores, including high-end retailers in Manhattan, resulting in over $1.4 million in charges to the credit card companies.  In order to use the stolen credit cards, the defendants worked together to obtain personal identification information for hundreds of victims using a variety of internet-based sources so that they could provide credit card companies with the information necessary to activate the stolen credit cards.  Following their purchases, the defendants transferred some of the fraudulently obtained items to DAMUS who, working together with a close associate, sold the items on a particular website, LuxurySnob.com, which purported to be an “online consignment and personal shopping company” specializing in “pre-owned luxury items,” but, in truth and in fact, many of the items it sells were purchased using stolen credit cards.

FOUCAULT, 30, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to pay $11,803.91 in restitution and $11,803.91 in forfeiture.  

A chart containing the sentences of FOUCAULT’s co-defendants is below.

Mr. Williams praised the outstanding investigative work and diligence of the U.S. Postal Inspection Service, USPS – Office of the Inspector General, and the New York City Police Department.

DEFENDANT	SENTENCE IMPOSED
RASHAAN RICHARDS*	Six years in prison, forfeiture of $536,434.01 and 90 luxury goods and electronics
JOHNNY DAMUS*	63 months in prison, forfeiture of $536,434.01, over 600 luxury items, and the URL www.luxurysnob.com
KAREEM SHEPHERD	Seven years in prison and forfeiture of $536,434.01
DEVON RICHARDS	Three years in prison, forfeiture of $369,543.43 and 15 luxury goods
CONRAD HERON	Three years in prison and forfeiture of $536,434.01
LOUIS JEUNE VERLY	Two years in prison
FABIOLA MOMPOINT	One year in prison and forfeiture of $91,456.39
JOHNATHAN PERSAUD	Three years of probation and forfeiture of $29,104.73

Statement from NYC Comptroller Brad Lander in Response to City Hall Winding Down DocGo Contract

 

New York City Comptroller Brad Lander released the following statement in response to the Adams Administration’s decision to move away from DocGo, Inc. (also known as Rapid Reliable Testing NY, LLC.). In September 2023, Comptroller Lander rejected the contract between DocGo and the Department of Housing & Preservation Development (HPD), but City Hall chose to move forward with the contract over Comptroller Lander’s objection. Comptroller Lander subsequently announced a first-of-its-kind real-time audit into the contractor’s management and implementation of asylum seeker services.

“After months of warnings about the selection of this vendor and its performance, I’m relieved that the Administration finally came to its senses.

“My office repeatedly sounded the alarm on how ill prepared DocGo was to provide adequate services to asylum seekers. Our contract review found little basis for why DocGo was the best contractor for this job, how the dollar amount for this contract was achieved, and who they planned to subcontract out to for security, hotel, and other services. While our real-time audit of these services is still underway, public reporting indicates how poorly the City picked and managed this vendor.

“While I am glad to see the Administration shift away from DocGo, we continue to be concerned more broadly about the costly emergency contracts the City is using to staff services for asylum seekers. Our recent review of these contracts found the replacement contractor, Garner, to be extremely expensive. Our office will watch closely to ensure that asylum seekers do not see a lapse in services and urges the City to issue an open-ended transition to non-profit organizations to avoid paying for-profit companies millions more than necessary.

“I am encouraged by the City’s announced intention to transition the upstate resettlement work to Jewish Family Services (JFS) of Buffalo by the end of the year. Upstate resettlement nonprofits like JFS have a long track record of helping new arrivals settle, contribute, and flourish in New York communities. We should have started using this model long ago. I hope New York State and other communities around the state will join us to expand this approach.

“The City’s haphazard management of these contracts, especially DocGo, exemplifies the pitfalls of continuing to treat asylum seekers like an emergency for two years, rather than providing services that will get them work authorization, status, security, and safety so that they can thrive in New York.”

Congressman Adriano Espaillat - Deadline for FY2025 Appropriations Requests Extended to Friday, April 19

  

Deadline for FY2025 Appropriations Requests Extended to Friday, April 19

Accepting Applications For Programmatic and Community Project Funding

Click here to view and submit the 2025 Community Project Request Form for Rep. Adriano Espaillat

Click here to view and submit the 2025 Programmatic Funding and Language Request form for Rep. Adriano Espaillat

Deadline to Apply is Friday, April 19th  

Representative Adriano Espaillat (NY-13), a member of the powerful House Appropriations Committee, which funds federal agencies and programs—announced that he will be extending the deadline for both his programmatic and language request form and his community project funding request form for Fiscal Year 2025 Appropriations until Friday, April 19, 2024.

A copy of the guidance can be found here. 

Eligible organizations are encouraged to call the Office of Congressman Adriano Espaillat at 202-225-4365 should groups have questions regarding this funding cycle's process and other updates. 

v

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

 

Dear Neighbor,

Thank you for joining us for another week in review.

We have a NEW middle school coming to Highbridge! Last week, NYC Schools Chancellor David Banks announced the opening of M.S. 644 in the fall. We advocated for this project as part of our Jerome Neighborhood Plan, which will have a curriculum focused on debate, multilingualism, and experiential learning that will prepare our scholars for high school and beyond! Our students in the Bronx are destined for success, and they excel when given the tools to exceed. We look forward to welcoming this inaugural class of scholars.

Prom Season is almost upon us, and we are coordinating a Prom Dress and Suit giveaway for our Bronx Middle School and High School students at Bronx Borough Hall. We are accepting new/gently used formal dresses and suits until May 9th. You can deliver your donation to 851 Grand Concourse (Room 206).

As always, 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

IN THE COMMUNITY

Our Bronx Night Market is back and better than ever!

I stopped by Fordham Plaza to support the return of this iconic festival that highlights the rich cultural diversity of our borough. Thank you to Marco Shalma and his team for investing in our local vendors and entrepreneurs.

Thank you to St. Peter the Apostle Greek Orthodox Church and Ponce Bank for partnering with us to host our Annual Greek Heritage Month Celebration.

The Bronx is proud to have a vibrant Greek community with families who have lived here for generations and are contributing to the rich diversity of our borough.

In 2024, we want more programs for older adults. We want more resources. We want our older adults to have everything they rightfully deserve as New Yorkers.

We hosted a rally with LiveOn NY, our colleagues in government, and over 150 of our older adults at Bronx Borough Hall, calling for support for our older adult centers in the Bronx

Congratulations to Bronx Community College on the official opening of its Early Childhood Center Infant & Toddler Program. An important investment that supports our students while they pursue a higher education. On-campus services that provide childcare for our student parents. Thank you to BCC President Milton Santiago, faculty, and elected officials for this collaboration.

The renovation of the Reverend T. Wendell Foster Park and Recreation Center’s Skate Park is years in the making and, once completed, will transform the park into an area for our children, families, and skating enthusiasts to safely recreate without having to leave their neighborhood.

This $4 million capital allocation is an investment not just in the park but also in the West Bronx and demonstrates our shared commitment to enhancing public spaces in our borough. I want to thank Council Member Althea Stevens, NYC Parks and Recreation, and our parks advocates for their partnership on this initiative, and I look forward to seeing the completion of our beloved skate park.

A place of education and exploration and the final resting place of legendary New Yorkers, the Woodlawn Cemetery and Conservancy is a cultural gem in our borough. With this capital allocation of $931,000, our beloved Woodlawn Cemetery will soon be more accessible for our residents and families to partake in the beauty and majesty of this historic landmark.

I want to thank Council Member Eric Dinowitz for his partnership on this initiative to invest in one of our borough`s public spaces.

With funding secured in Fiscal Year 2024, the allocation means upgrades for Woodlawn Cemetery & Conservancy’s public restrooms, which were built in 1930 and are located at the Jerome Avenue Entrance.

The Woolworth building is scheduled to upgrade restrooms, making them more accessible and ADA compliant, with this also enabling the organization to accommodate increasing public use of the Woodlawn Cemetery & Conservancy as a historic site, outdoor learning lab, and tourist destination.

During Autism Acceptance Month, we are proud to join our D75 leadership and Majority Leader Amanda Farías, for a Check Presentation for $750,000 to P17X for a new State-of-the-Art Life Skills Classroom.

This important investment will provide support for our scholars and educators right in their school. We continue to prioritize our District 75 scholars, educators and families with capital funding that enhances opportunities for our scholars’ education and develops their life skills.

Thank you to D75 Superintendent Louissaint, Principal Jones, our teachers and the P17X community. We are grateful to have allocated $250,000 towards this important project with the City Council. We look forward to our continued partnership!

UPCOMING EVENTS

RESOURCES

Court Enjoins Philips Respironics from Manufacturing and Distributing Adulterated and Misbranded Sleep and Respiratory Devices at or from Three Pennsylvania Facilities

 

A federal court today ordered Philips RS North America LLC (Philips Respironics) to stop manufacturing most sleep and respiratory devices at three Pennsylvania facilities, and to stop distributing such devices from those facilities, until the company takes specific measures designed to increase the safety of its devices and ensure compliance with the Federal Food, Drug, and Cosmetic Act (FDCA).

In a complaint filed April 4, in federal court in the Western District of Pennsylvania, the United States alleged that Philips Respironics, a subsidiary of Philips Holding USA Inc., violated the FDCA by manufacturing and distributing adulterated and misbranded medical devices. Specifically, the complaint alleged that Philips Respironics manufactured continuous positive airway pressure (CPAP) machines, bi-level positive airway pressure (BiPAP) machines, and mechanical ventilators at facilities in Murrysville and New Kensington, Pennsylvania, and remediated certain ventilators at a facility in Mt. Pleasant, Pennsylvania, under conditions and using practices that failed to comply with the FDCA and with Good Manufacturing Practice regulations designed to assure the safety and effectiveness of the devices. The complaint also alleged that Philips Respironics failed to submit to FDA written reports of manufacturer-initiated corrections or removals for its devices, and further failed to validate and approve the process the company used to perform remediation work on certain recalled ventilators according to established procedures. The complaint further alleged that these violations were similar to violations observed during previous inspections that resulted in two FDA Warning Letters to Philips Respironics (for its Murrysville facility), a Warning Letter to its subsidiary Respironics California LLC (for another facility in Carlsbad, California) and a civil lawsuit and consent decree with another subsidiary of Philips Holding USA Inc., Philips North America LLC.

According to the complaint, millions of CPAP machines, BiPAP machines, and mechanical ventilators manufactured at the Murrysville and New Kensington facilities were recalled in June 2021 due to potential health risks. The recalled devices contained polyester-based polyurethane (PE-PUR) foam, which was used for sound abatement. According to the recall notices issued at that time, the PE-PUR sound abatement foam “may degrade into particles which may enter the device’s air pathway and be ingested or inhaled by the user,” and “the PE-PUR foam may off-gas certain chemicals.” The FDA classified the recalls as Class I, the most serious type of recall. Philips Respironics’ efforts to remediate the PE-PUR foam in those recalled devices are ongoing, and some of the remediated devices have themselves been the subject of additional recalls.  

Defendants Philips Respironics, its parent company Philips Holding USA Inc., and subsidiary Respironics California (collectively Philips), along with Philips executives Thomas Fallon, Daniel Leonard, and Jeff DiLullo, as well as executives Roy Jakobs and Steven B. C de Baca from Philips’s Dutch parent company, all agreed to resolve the complaint through a consent decree of permanent injunction. Under the consent decree, entered today by U.S. District Judge Robert J. Colville, the defendants are barred (subject to certain limited exceptions, such as for “medically necessary” devices) from manufacturing and distributing devices at or from the three Pennsylvania facilities — or resuming such activities at the other facility in Carlsbad, California — unless and until Philips meets certain conditions. Those conditions include retaining an outside expert to inspect the defendants’ facilities, methods and controls to determine whether they conform to Good Manufacturing Practice regulations; completing activities described in an FDA-approved recall remediation plan and receiving written notification from FDA that the defendants appear to be in compliance with the FDCA and the decree.

“Medical device manufacturers have a responsibility to comply with requirements designed to ensure the safety and effectiveness of their products,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “Today’s action reflects our commitment to vigorously enforce federal law and prevent manufacturers from marketing adulterated and misbranded devices to vulnerable patients who need them.”

“Today’s consent decree requires Philips Respironics to meet a series of stringent thresholds before restarting production and establishes safeguards against future violations of the Food, Drug and Cosmetic Act,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This office, the FDA and our partner agencies are committed to holding manufacturers accountable when they violate the law and put the public at risk.”

“The finalization of this decree is a significant milestone,” said Director Jeff Shuren, M.D., J.D., of the FDA’s Center for Devices and Radiological Health. “Throughout this recall, we have provided patients with important health information by issuing numerous safety communications and have taken actions rarely used by the agency to help protect those impacted by this recall. Today’s action is a culmination of those efforts and includes novel provisions aimed at helping ensure that patients receive the relief they have long deserved. This also marks the first time a device company is providing a remediation payment option for a recalled device under a consent decree.” 

The consent decree also requires the defendants to retain outside experts to inspect their other Sleep and Respiratory Care facilities to evaluate whether those facilities are operating in compliance with the FDCA, to correct any identified deficiencies, and to evaluate the testing that the defendants have performed and are performing on foam being used to replace the sound abatement foam in the recalled devices. The consent decree also allows FDA to subject other facilities owned by the corporate defendants to certain provisions of the injunction if a future inspection shows that those facilities are not operated in conformity with the FDCA and applicable regulations.

Trial Attorneys Natalie N. Sanders and Ryan E. Norman of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Adam B. Fischer for the Western District of Pennsylvania handled this matter, with the assistance of Senior Counsel Paige H. Taylor of the FDA’s Office of the Chief Counsel.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Pennsylvania, visit www.justice.gov/usao-wdpa.

The claims resolved by the consent decree announced today are allegations only. There has been no determination of liability.

Two Defendants Charged With Orchestrating $2 Million Loan Fraud Scheme

 

Damian Williams, the United States Attorney for the Southern District of New York, and Patrick J. Freaney, the Special Agent in Charge of the New York Field Office of the U.S. Secret Service (“USSS”), announced today the unsealing of an Indictment charging YISROEL HEBER, a/k/a “Scott Heber,” and YECHIEL MESHI-ZAHAV with running an advance-fee loan fraud scheme through which they defrauded dozens of victims of at least approximately $2 million.  HEBER and MESHI-ZAHAV were arrested this morning and will be presented later today before U.S. District Judge Lewis A. Kaplan, to whom this case is assigned. 

U.S. Attorney Damian Williams said: “Yisroel Heber and Yechiel Meshi-Zahav allegedly brazenly siphoned funds from the bank accounts of dozens of victims after fraudulently inducing them to provide their bank details. Herberand Meshi-Zahav’s victims thought they were securing loans, but instead they were robbed of large sums of cash.  No matter the complexity of the scheme or size of the loss amount, this Office will relentlessly investigate fraudsters who dare to illicitly line their own pockets by victimizing others.” 

USSS Special Agent in Charge Patrick J. Freaney said: “These individuals allegedly garnered the trust of victims by posing as lending companies, only to turn around and steal millions from them.  This kind of fraudulent activity has a very real impact on people’s lives, and the Secret Service appreciates our partnership with the U.S. Attorney’s Office for the Southern District of New York as we work together to deliver justice for these victims.”

According to the allegations contained in the Indictment:[1]

From at least in or about March 2021 through at least in or about December 2021, YISROEL HEBER and YECHIEL MESHI-ZAHAV participated in an advance-fee loan fraud scheme that defrauded dozens of victims of at least approximately $2 million.  HEBER and MESHI-ZAHAV operated this fraudulent scheme through purported lending companies called Blue Ribbon Funding, Tru Capital Funding, Fund Capital LLC, a/k/a “Fund Cap LLC,” and Ameriquest Capital (collectively, the “Fraudulent Lenders”).  During the course of the scheme, HEBER and MESHI-ZAHAV, through their control of the Fraudulent Lenders, induced victims to provide their bank account information in order to make payments related to loans that the Fraudulent Lenders promised to issue to the victims.  Instead, however, HEBER and MESHI-ZAHAV defrauded the victims by withdrawing thousands of dollars from each of the victims’ bank accounts without issuing the promised loans.

HEBER, 43, of Kings Point, New York, and MESHI-ZAHAV, 32, of Valley Stream, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential penalty is prescribed by Congress and is 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 USSS.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Alexandra S. Messiter is in charge of the prosecution.

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

Attorney General James Warns Jewish Communities to be Cautious of Discriminatory Practices Ahead of Passover

  

AG’s Office Has Received Complaints about Businesses Raising Prices of Car Cleaning Services and Other Services for Passover

New York Attorney General Letitia James today issued a consumer alert urging New Yorkers to be careful of potential discriminatory pricing practices at car washes in the days leading up to Passover and warning businesses that this practice is illegal. This year and in previous years, there have been reports of car wash businesses in predominantly Orthodox Jewish communities in New York City and the Hudson Valley raising prices for Jewish customers seeking cleaning services close to Passover. In the days leading up to Passover, many Jews clean their homes, cars, and other spaces to remove “chametz” (leavened products). According to reports provided to the Office of the Attorney General (OAG), some companies have advertised “specials” for car washing services related to Passover, but instead, charged higher prices to Jewish customers. Under New York law, it is illegal to discriminate against someone on the basis of religion. 

“New York has zero tolerance for antisemitism and discrimination of any kind,” said Attorney General James. “Passover is an important holiday for millions of Jews in New York and beyond, and it is illegal and discriminatory to take advantage of a religious holiday to charge more for a service. We will not hesitate to take action against any business that engages in such offensive behavior, and I urge anyone who has been a victim of this discrimination to contact my office immediately.” 

Anyone who is aware of businesses using discriminatory practices or believes that they were charged more for services because of their religion, race, or background is encouraged to file a complaint online or call 1-800-771-7755.

Governor Hochul Celebrates One Year of MTA Station Agents Assisting Riders Outside of Booths

  

Survey Reveals Customers Feel Safer and More Satisfied With Transit Experience After Interaction With Station Agents

Customer Service Centers to Expand Services and Assist in Reduced-Fare Enrollment

Five Station Agents Commended for Exceptional Customer Service

Governor Kathy Hochul today celebrated one year since MTA station agents began their enhanced role of stepping out of booths and assisting riders with core customer service functions throughout the station such as providing wayfinding information, assisting at fare machines and informing new riders about contactless fare payment. This shift away from the booth-centered role, which dates to the era of tokens, modernized the role to better serve the needs of customers in a 21st century station environment and improve the customer experience. In just the past year, NYC Transit presented 208 commendations to station agents receiving positive feedback from customers between March 2023 and February 2024, compared to 33 commendations between March 2022 and February 2023, when agents began regularly leaving the booth.

“I am committed to making our subways safer and more accessible for the millions who rely on them each day,” Governor Hochul said. “Station agents are the first point of contact for riders in need of assistance, and their continual presence in our stations is delivering results for New Yorkers.”

As part of the enhanced customer service initiative, NYC Transit more efficiently deployed station agents throughout the system, delivering $10 million in annual savings while improving customer service and increasing hourly pay. Over the next few weeks, NYC Transit will gradually introduce additional services to the 15 Customer Service Centers (CSCs) in the subway system with capacity for customers to be able to apply for and receive on the spot a permanent Reduced-Fare MetroCard. Additional services, such as the ability to complete Fair Fares applications at CSCs, will be phased in over the coming months.

Since the transition out of the booth, the Fall 2023 Customers Count survey found that customers’ interactions with station agents were positive and particularly high among riders whose interactions had taken place outside of booths due to the more personable, tailored support provided. Additionally, customers who are satisfied with their station agent interaction were more likely to feel safe on platforms (52 percent vs 26 percent) and be satisfied with the subway overall (61 percent vs 31 percent).

As part of the celebration, NYC Transit recognized five station agents for their exceptional customer service: Ruhul Amin, Nelson Chang, Matthew Patrick, Ruben Taylor and Rashelle McFadden. All these employees received a North Star pin as part of the Authority’s recently launched Employee Recognition Program to encourage outstanding customer service.

Station agents can now also engage in supportive roles as they did last month for the City’s largest one-day collective effort, recognized as Fair Fares Day of Action, to raise awareness of reduced fare options available and information on eligibility. In addition to the duties previously described, the new role has allowed station agents to provide customer support through:

• Assistance for customers with disabilities and seniors
• Customer service during service disruptions and major planned changes
• OMNY guidance and information, including conversion and questions on use
• Reduced fare guidance and information
• Timely reporting of any issues related to customer amenities, including elevators, escalators, digital signage, Help Points and turnstiles
• Maintenance of a safe and clean customer environment
• Reporting of quality-of-life issues

The shift complemented the construction of Customer Service Centers in every borough across the system. There are currently 15 Customer Service Centers, with more expected to open this year. For the list of current locations see here. These facilities are staffed 24/7 by New York City Transit station agents and provide services that historically were only provided exclusively at 3 Stone Street in Lower Manhattan.