Mount Vernon Tax Preparer Convicted Of Obstructing The IRS And 38 Counts Of Aiding And Assisting Preparation Of False And Fraudulent Tax Returns

    Preet Bharara, the United States Attorney for the Southern District of New York, announced that tax preparer SAMUEL GENTLE, the owner of a tax preparation business named GenGen, Inc., in Mount Vernon, New York, was found guilty on charges of obstructing the IRS and aiding and assisting the preparation of false and fraudulent individual income tax returns for his clients.  GENTLE was convicted yesterday after a five-day jury trial before U.S. District Judge Cathy Seibel. 

Manhattan U.S. Attorney Preet Bharara said:  “As a jury found after trial, Samuel Gentle abused his position of trust as a tax preparer by systematically violating the nation’s income tax laws.  The investigation that led to this conviction underscores our commitment, as well as that of our partners at the IRS, in pursuing and prosecuting people who circumvent our tax laws.”    

As established by the evidence at trial:

From 2010 through 2014, GENTLE’s tax preparation business prepared and submitted to the IRS, on average, 3,200 tax returns each year.  Some of these tax returns were false and fraudulent in that they contained various inflated deductions for unreimbursed employee business expenses, gifts to charity, and Schedule C business expenses.

As part of the investigation of this matter, an undercover IRS agent posed as a client of GENTLE’s.  During the operation, the agent provided GENTLE with a Form W-2 showing income from wages.  Despite being provided no records to support any other deductions, GENTLE included false and fraudulent deductions for unreimbursed employee business expenses and gifts to charity on the tax return he prepared for the undercover agent.  GENTLE’s inclusion of these false and fraudulent deductions caused the return to fraudulently claim a refund.

GENTLE also failed to report on his own tax returns nearly half of the $1 million in receipts that he received for his tax preparation services from 2010 through 2014.  He spread the receipts across eight bank accounts at five banks.  In addition, he failed to issue W-2’s or Forms 1099 to himself or his employees, further concealing from the IRS the amount of receipts he and his business received.

GENTLE, 59, of Mount Vernon, New York, was found guilty on all 39 counts submitted to the jury, including one count of interfering with the administration of the internal revenue laws and 38 counts of aiding and assisting the preparation of false and fraudulent U.S. tax returns, each of which carries a maximum sentence of three years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

GENTLE’s sentencing is scheduled for October 25, 2016.

Mr. Bharara praised the IRS for their outstanding work in the investigation. 

9 Charged In Manhattan Federal Court With Trafficking Kilograms Of Cocaine Through The U.S. Mail System

Law Enforcement Has Seized Over 25 Kilograms of Cocaine

Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced the unsealing of an indictment charging nine defendants with conspiring to distribute kilogram quantities of cocaine, and in particular, shipping the cocaine from Puerto Rico to New York City through the United States Postal Service (“USPS”) mail system.  Seven of the defendants were taken into federal custody this morning and will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis.  Two defendants remain at large. 

Manhattan U.S. Attorney Preet Bharara stated: “As alleged, the defendants engaged in a brazen scheme to turn the U.S. Postal Service into their own drug delivery service.  The defendants, which includes an employee of the U.S. Postal Service, allegedly schemed to ship multiple kilograms of cocaine through the mail, going so far as to claim, in one instance, that a lost package contained the ashes of a cremated relative, when in fact, it contained cocaine.”

USPIS Inspector in Charge Philip R. Bartlett stated:  “Drug Trafficking Organizations have been moving large quantities of cocaine through Puerto Rico to the New York metropolitan area for many years, destroying the lives of many through addiction and despair. Today’s arrests should send a strong message to drug traffickers that the United States Postal Inspection Service will spare no resource or expense to protect the sanctity of the mail.”

DEA Special Agent in Charge James J. Hunt said:  “Drug dealers’ desperation for product is just as desperate as an addict’s; however the dealer’s ‘fix’ is the profit made off the sale of poison.  This investigation underscores the extent drug traffickers will go to in order to smuggle illegal drugs into the United States.  The DEA Strike Force, USPIS, and U.S. Attorney’s Office Southern District of New York collaborated resources that uncovered a cocaine trafficking organization responsible for pumping millions of dollars-worth of  drugs onto New York City streets.”    

According to the allegations contained in an Indictment[1] unsealed today in Manhattan federal court:

Between May 2015 and July 2016, the defendants JUSTIN ACOSTA, ELEELIN DIAZ, JOSE DIAZ, a/k/a “Gordo,” CRISTIAN GARCIA, KELVING HERNANDEZ, FELIX JIMENEZ, a/k/a “Daddy,” ROBERT RODRIGUEZ, a/k/a “Smiley,” MIGUEL TORRES, a/k/a “Ant,” and BRITNEY WORTHY conspired to distribute and possess with intent to distribute five kilograms and more of cocaine. 

The defendants operated the drug-trafficking scheme by arranging for the shipment of cocaine from Puerto Rico to various locations in New York City through the USPS, retrieving cocaine from various delivery locations, transporting cocaine to residences and a storage facility, and repackaging and selling the cocaine to individual customers.  Since February 2016, law enforcement officers have seized more than 25 kilograms of cocaine from shipments associated with the defendants.

Defendant HERNANDEZ is an employee of the USPS, and assisted co-conspirators by agreeing to track parcels and identifying locations to which narcotics could be sent.

Defendant RODRIGUEZ was involved in facilitating, receiving, and distributing the shipment of cocaine through USPS parcels, and contacted the USPS multiple times for information on the status and location of certain parcels that contained cocaine.  In communications with the USPS, including in an email RODRIGUEZ sent directly to the U.S. Postmaster General, RODRIGUEZ falsely asserted that one of the parcels, which he believed had been lost, contained the cremated ashes of his purportedly deceased father.  In fact, that parcel had been seized and found to contain approximately two kilograms of cocaine.

ACOSTA, 26, JOSE DIAZ, 36, GARCIA, 31, JIMENEZ, 28, RODRIGUEZ, 36, TORRES, 34, and WORTHY, 24, were arrested this morning.  ELEELIN DIAZ, 27, and HERNANDEZ, 42, remain at large.  Each is charged with one count of conspiring to distribute and possess with the intent to distribute narcotics, which carries a maximum sentence of life in prison and mandatory minimum sentence of 10 years in prison.  The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.

Mr. Bharara praised the outstanding investigative work of the USPIS and of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service, Criminal Investigation Division, the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Rockland County Sheriff’s Office, the Clarkstown Police Department, the Port Washington Police Department, and the New York State Department of Corrections and Community Supervision.  The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.

The prosecution is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Alex Rossmiller and David Abramowicz are 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.

 

COMPTROLLER SCOTT M. STRINGER RELEASES ANALYSIS OF NEW YORK CITY’S FISCAL YEAR 2017 ADOPTED BUDGET

Comptroller Projects a $3.6 Billion Gap in Fiscal Year 2018  

Tax revenues are still growing – but slower than the average growth over the last four years

 City-funded expenditures in New York City’s $84.6 billion FY 2017 Adopted Budget will increase by 5.4 percent in the coming year, above the projected 1.6 percent growth in tax revenues, according to an analysis released today by New York City Comptroller Scott M. Stringer. The Comptroller’s report also found that while the City has added to its budgetary cushion, it remains more than $750 million short of the minimum amount to be fully prepared for an economic downturn.

“Tax revenues have grown for seven years in a row, but the rate of growth is slowing,” Comptroller Stringer said. “With our budget cushion still below optimal levels, now is the time to act and build up our reserves. We must do more to find agency efficiencies while revenue growth is still moving in the right direction.”

Over the past year, causes for concern about the national economy have grown, with falling corporate profits, slowing job growth, and a deterioration of global economic conditions. While the threat of a near-term recession remains low, these uncertainties underscore the importance of boosting the budget cushion to safeguard against a possible downturn.

While the City has been adding to its budgetary cushion, it is still $762 million short of the bottom of the optimal range of 12 percent of adjusted expenditures and $5.8 billion below the top of the optimal range of 18 percent. The City will begin FY17 with a cushion of $9.4 billion, equal to just 11.1 percent of adjusted FY17 expenditures.

The analysis also found that the City’s budget savings program relies heavily on spending reductions which would have formerly been labeled as budget adjustments. This list includes expenditure re-estimates, debt service savings, and hiring delays. Agency efficiency initiatives account for only 7.4 percent of the savings over FY16 and FY17.

Findings include:

• The Comptroller’s Office’s projects larger out-year gaps than forecast by the Administration. Projected gaps are $3.6 billion in FY 2018, $4.0 billion in FY 2019, and $3.4 billion in FY 2020.

• The greatest risk to the City’s finances remains Health + Hospitals, which faces significant roadblocks to achieving its deficit reduction goals. Additional risks include under-budgeted overtime costs, increased homeless shelter spending, and low federal Medicaid reimbursements for special education services.

• Preliminary pension investment returns, after fees, are estimated to be 1.46 percent in FY 2016. The shortfall will result in an estimated increase in City contributions of approximately $122 million in FY 2018, $244 million in FY 2019, and $366 million in FY 2020. The Comptroller’s Office will release final audited returns for FY 2016 this fall.

• Offsetting some of the risks is the Comptroller’s Office’s higher revenue forecast. The Comptroller’s Office projects that revenues will be more than the Plan’s by $601 million in FY 2017 and $1.0 billion over the Plan period. However, tax revenues in FY16 grew by only 3.6 percent, significantly less than average growth of 6.5 percent over the last four years.

• Since the proposed Executive Budget in April, expenditures in FY17 have increased by $543 million, including $473 million for City Council initiatives.

• The Adopted Budget Plan includes an additional $21 million in each year of the Plan to improve access to libraries. The City also baselined an additional $38.5 million in each year of the Financial Plan to fund Summer Youth Employment Program.

• Eleven months into FY16, the City only achieved 52 percent of its planned headcount growth, adding only 8,791 staff of the planned 16,845 increase. The June Plan counts this shortfall as part of its savings program for FY17.

“Given increased uncertainties in the global economy and signs of potential economic weakness at home, the City must take advantage of strong tax revenues before our window of opportunity to save and prepare for less robust times closes,” Stringer said.

Bravo Union Endorsements Starting to Come In

Unions agree: Bravo will be a champion for working New Yorkers

Unite Here Local 100, which represents more than 12,000 men and women in New York, as well as Metallic Lathers and Reinforcing Ironworkers Local 46, which represents more than 1,500 workers, announced today their support for Ischia Bravo, Democratic candidate for the 78th State Assembly District. “I am humbled to receive the endorsements from both Unite Here Local 100 and Metallic Lathers and Reinforcing Ironworkers Local 46,” Ischia Bravo, 78th District State Assembly candidate said. “Their support is very significant to my campaign and builds on the momentum and support that has flooded in since my announcement back in February. Their support signals that I am the best person to fight to protect workers rights, ensure all New Yorkers can earn a living wage and can continue to raise their families in our City. I am extremely proud to receive their endorsements as many of their members reside in the district and know firsthand that it is time for new leadership.” “The 12,000 members of Unite Here Local 100 know that Ischia Bravo will stand with us as we fight to grow and protect good, middle-class jobs throughout New York,” Francisco Espinal, Unite Here Local 100 Board member said. “Ischia has shown that she has a plan to grow the economy in this community, ensuring that our members thrive in this district and throughout New York. That's why we are excited to not only endorse Ischia, but work hard on her campaign this summer.” “Local 46 proudly and enthusiastically endorses Ischia Bravo for State Assembly,” John Skinner, Local 46 President said. “We know that Ischia Bravo will listen to our concerns and give us a voice in the State Assembly. She will be a champion for working New Yorkers, advocating for policies that create good paying jobs, create affordable housing, and ensure our kids get the highest quality education. She is an advocate for our interests and will work her hardest to ensure that all people of the Bronx thrive.” For more information about Ischia Bravo for State Assembly please visit our website www.BravoforAssembly.com

More Con Edison Troubles in the Hot Weather

  Just as I was taking photos of the crosswalks, or should I say missing crosswalks on West 237th Street I turned around and looked towards the parkway and took the photo above. There were several Con Edison electric trucks, and a few with big rolls of cable on them. Getting closer I could see the cover to an electric junction was open (see below) with a Con Edison worker in it working on the thick electric cables underground as other Con Edison workers watched. 

Here you can see the Con Edison worker inside the electric junction area below the street level with sweet drenching his shirt as he works on keeping the power on. The yellow large hose is pumping air into the small area, and another Con Edison worker is giving guidance to the worker inside the area in the street. The big wigs from Con Edison had just left, (probably because they saw me down the block), and had left the workers to fix this problem. Well the lights stayed on, no cable had to be laid at this time because if Con Edison would of had to rip up the just repaved street that would mean that Con Edison would not just repave the trench they would have to make, but the entire block. After one year it is open season for companies such as Con Edison to dig up repaved streets, so I guess they will be back on July 27, 2017 to dig up this street.

To Crosswalk or Not To Crosswalk

Above and Below is the intersection of Independence Avenue and West 237th Street. The DOT finally after almost one month of a war zone type roadway when the street was milled at the end of June did a great job of repaving as you can see. However that is MS/HS 141 across the street in the top photo, and the bottom photo was taken from in front of the school. It should take until the middle of August for the crosswalks and stop lines to be painted in so motorist know just where to stop. Seeing the 50th Police Precinct semi-unmarked car giving out tickets to motorists who did not fully stop at the intersection, if they were traveling on West 237th Street they may have a case for dismissal of the ticket, but if you were traveling on Independence Avenue the crosswalks and stop lines are clearly marked.

Above - The crosswalk at the Henry Hudson Parkway Service road at the corner of the West 239th Street overpass. This crosswalk looks like it was done by preschoolers as the lines in the crosswalk intersect one another, and go beyond the end line of the crosswalk.

Below - On the other side of the West 239th Street overpass at the southbound side of the parkway service road there are no end lines to the crosswalk, as you can see the stripped lines do no line up evenly. Another note that the DOT is doing is increasing the width of the crosswalk from 12 feet to 15 feet, and without end lines it is tough to determine where the crosswalk ends. 

Bravo For Assembly - Fundraiser August 2nd

Dear Friend, Primary Day is just 7 weeks away!  It's been an amazing campaign - we've built a strong base of community members, volunteers and supporters over the past few months. We've mobilized community residents and activated people who were previously disconnected from the process.  We've shown what true leadership should look like. Now it's time to FINISH STRONG.  We are having a fundraiser on Tuesday, Aug, 2nd from 6pm to 8pm at Enzo's of Arthur Avenue, 2339 Arthur Avenue. I hope you can join us!  Your continued support is needed for OUR campaign to be successful and to take us to Albany. The funds raised go directly towards voter contact, so more of our friends and neighbors are aware of what we are trying to do in the 78th District - bring better jobs, more affordable housing and increased opportunities for our youth.    Please consider making a contribution today.  Sincerely,  Ischia Bravo Candidate, NYS Assembly, District 78, Bronx www.bravoforassembly.com 347-271-6999

CLICK HERE TO DOWNLOAD INVITATION/CONTRIBUTION FORM

Bronx Jewish Community Council - Summer News

Random Act of Kindness Summer news We hope your summer has been relaxing and satisfying so far.  We are busy at BJCC taking care of our clients and preparing for the fall.  These are the ways you can help!  Thanks so much for your interest and continued caring. Emergency needs We are in need of some gently used furniture: small kitchen table and 2-4 chairs, some end tables, night table and a coffee table. If you have any of these to donate,  please call Niti at 917-693-3084 to make arrangements.   Save the dates for fall Volunteer Opportunities September 18th - Pickup 2-3 packages at BethEl Synagogue in New Rochelle (on North Ave) for delivery to Bronx clients between  10am  -12pm.. December 11th -  Project Hope Chanukah delivery out of traditional Coop City (2050 Bartow Ave) and Amalgamated (Gale Ave) 9-11 am.   So much more to come in the fall! To volunteer, please contact Niti Minkove, BJCC Director of Volunteers at 917-693-3084 or nminkove@bjcconline.org. Bronx Jewish Community Council,  2930 Wallace Avenue, Bronx, NY 10467