|
|
|
Thursday, July 18, 2019
Partnerships for Parks - Get Involved with Your Park, Bronx Parks Connections
Former New York City Human Resources Administration Employee And Two Others Sentenced For Their Roles In Scheme Involving Theft Of Hundreds Of Thousands In HRA Funds
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ELIANA BAUTA, GERALDINE PEREZ, and ERIC GONZALES have been sentenced for their involvement in a scheme to steal over $300,000 in funds from the New York City Human Resources Administration (“HRA”). BAUTA, who perpetrated the offenses in her capacity as an HRA employee, was sentenced today by U.S. District Judge Valerie E. Caproni to two years in prison. PEREZ was previously sentenced by Judge Caproni to nine months in prison. GONZALES was previously sentenced by Judge Caproni to two years of probation.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The defendants have now been convicted of stealing money that was intended to be used to help some of New York’s neediest residents. As this prosecution makes clear, we are committed to rooting out those who would abuse the public trust and to ensuring that funds from public programs go to their intended recipients, not the pockets of unscrupulous employees and their co-conspirators.”
According to the Complaint, the Indictment, and statements made in court proceedings:
HRA is an agency of the City of New York responsible for administering the majority of the City’s public assistance programs. Among other things, HRA provides temporary, emergency cash assistance to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. The emergency assistance is funded by the federal government as well as by New York State and the City.
Since 2015, the New York City Department of Investigation ("DOI") has been investigating two related schemes in which an HRA employee – BAUTA – defrauded HRA and the City by using her position to commit public assistance fraud. BAUTA worked as a Job Opportunity Specialist for HRA from approximately January 2008 to on or about May 23, 2018. As a Job Opportunity Specialist, BAUTA was at various points responsible for interviewing benefits applicants, compiling and submitting applicants’ paperwork, and disbursing applicants’ benefits.
In the first of the two schemes, BAUTA caused the fraudulent issuance of emergency benefits funds to relatives and acquaintances, including GERALDINE PEREZ and ERIC GONZALES, among others, who in truth and in fact did not qualify for those funds. For example, BAUTA altered a police report submitted by an actual HRA client by changing the name of the victim to a family member’s name, and then entered the doctored report into HRA systems in support of a request for benefits to be issued to that family member. On another occasion, BAUTA submitted a request for emergency benefits to be issued to an individual after an alleged disaster, but no such disaster had occurred. Both PEREZ and GONZALEZ were knowing recipients of such fraudulently issued funds and shared the proceeds with BAUTA.
In the second scheme, BAUTA obtained access to and misappropriated emergency benefits checks issued to actual HRA clients. Instead of providing the checks to the legitimate clients in need of emergency funding, BAUTA gave them to PEREZ and GONZALES, among other of BAUTA’s relatives and associates, who deposited the checks in their own bank accounts and withdrew the funds, and then shared the proceeds with BAUTA. In total, the two schemes resulted in losses to HRA of at least $309,000 in public funds.
In addition to obtaining stolen HRA checks into her bank account and the bank accounts of family members, PEREZ also deposited or caused to be deposited into these same accounts improperly obtained United States Treasury checks that were issued to other individuals as tax refunds. In total, 23 such checks worth more than $91,000 were deposited into bank accounts of PEREZ and her family members and associates. PEREZ then split the proceeds with a tax preparer who assisted in the scheme.
In addition to the prison term, BAUTA, 36, of the Bronx, New York, was sentenced to three years of supervised release, and was ordered to forfeit $256,348.46 and to pay $312,408.60 in restitution.
PEREZ, 61, of the Bronx, New York, was sentenced by Judge Caproni on June 11, 2019, to nine months in prison and three years of supervised release (including six months of home detention), and was ordered to forfeit $233,259.34 and to pay $233,259.34 in restitution.
GONZALES, 27, of the Bronx, New York, was sentenced by Judge Caproni on June 20, 2019, to two years of probation (including 150 hours per year of community service), and was ordered to forfeit $998.33 and to pay $37,767.64 in restitution.
Mr. Berman praised the investigative work of DOI and the Internal Revenue Service.
Manhattan U.S. Attorney Announces Extradition Of Iranian National And Unsealing Of Charges Against Two Other Men For Exporting Carbon Fiber From The United States To Iran
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, John Brown, Assistant Director of the FBI’s Counterintelligence Division, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the extradition of BEHZAD POURGHANNAD and the unsealing today of a three-count indictment charging POURGHANNAD, ALI REZA SHOKRI, and FARZIN FARIDMANESH with exporting carbon fiber from the United States to Iran. POURGHANNAD, an Iranian national, was arrested on those charges on May 3, 2017, in Germany and was extradited to the U.S. POURGHANNAD arrived in the Southern District of New York yesterday, and was presented today in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy. SHOKRI and FARIDMANESH remain at large.
U.S. Attorney Geoffrey Berman stated: “Carbon fiber has many aerospace and defense applications, and is strictly controlled to ensure that it doesn’t fall into the wrong hands. Pourghannad and his co-defendants allegedly went to great lengths to circumvent these controls and the United States’ export laws. Together with our law enforcement partners, we will continue to protect our nation’s assets and protect our national security.”
Assistant Attorney General John Demers said: “Pourghannad is alleged to have sought to procure for Iran large amounts of carbon fiber — a commodity that can be used in the enrichment of uranium. U.S. sanctions exist to prevent behavior, like this, which endangers our country, and the Department is committed to vigorously enforcing them. Pourghannad and others who would attempt to thwart these laws need to know that their actions, which benefit Iran’s destabilizing efforts and make Americans less safe, will not go unpunished.”
Assistant Director John Brown of the FBI’s Counterintelligence Division said: “This case shows the FBI aggressively pursues those who allegedly break the law and violate sanctions against Iran. Iran remains determined to acquire U.S. technology with military applications, and the FBI is just as determined to stop such illegal activity. The charges against these three Iranian nationals, and the extradition of Mr. Pourghannad, demonstrate we take Iran's actions extremely seriously and will work with our partners to defeat them.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Iran’s continued pursuit of technology and materials to advance its nuclear program remains a threat to the US and the rest of the world. The FBI New York and SDNY will continue to pursue these illicit proliferation activities, and bring the full investigative and law enforcement capabilities of the U.S. to bear on those who would help Iran advance its dangerous agenda. If you aid Iran in its efforts, you will be held accountable.”
According to the allegations contained in the Indictment, unsealed in White Plains federal court[1]:
Between 2008 and July 2013, POURGHANNAD, SHOKRI, and FARIDMANESH lived and worked in Iran. During that period, they worked together to obtain carbon fiber from the U.S. and surreptitiously export it to Iran via third countries. In particular, SHOKRI worked to procure many tons of carbon fiber from the U.S.; POURGHANNAD agreed to serve as the financial guarantor for large carbon fiber transactions; and FARIDMANESH agreed to serve as the trans-shipper. Carbon fiber has a wide variety of uses, including in missiles, aerospace engineering, and gas centrifuges that enrich uranium.
In late 2007 and early 2008, SHOKRI and a Turkey-based co-conspirator (“CC-2”) successfully arranged for the illegal export and trans-shipment of carbon fiber from the U.S. to an Iranian company associated with SHOKRI (“Iranian Company-1”). Specifically, CC-2 contacted a U.S. supplier of carbon fiber, who in turn enlisted a third individual (“Individual-1”) for assistance with the transaction. Through Individual-1, CC-2 purchased carbon fiber from the U.S. supplier and arranged for the shipment of the carbon fiber from the U.S., through Europe and Dubai, United Arab Emirates, to Iranian Company-1, operated by SHOKRI, in Iran.
In May 2009, POURGHANNAD and SHOKRI attempted to arrange another illegal purchase and trans-shipment of carbon fiber from the U.S. to Iran. Specifically, Individual-1 returned a signed contract to POURGHANNAD for SHOKRI’s purchase of a large quantity of carbon fiber. Individual-1 then purchased the carbon fiber from a U.S. supplier and arranged for the carbon fiber to be exported from the U.S. to a third country (“Country-1”), en route to Iran. Country-1 authorities, however, interdicted the carbon fiber shipment before it could be trans-shipped to Iran.
In 2013, POURGHANNAD, SHOKRI, and FARIDMANESH again attempted to illegally procure and export carbon fiber from the U.S. to Iran. In the 2013 transaction, SHOKRI and POURGHANNAD negotiated with Individual-1 for the purchase and trans-shipment to Iran of more than 5 tons of carbon fiber. FARIDMANESH and POURGHANNAD further agreed with Individual-1 that the carbon fiber would be trans-shipped from the U.S. to Iran through Tbilisi, Georgia, with FARIDMANESH to serve as the trans-shipper. FARIDMANESH specifically instructed Individual-1 to change the shipping labels on the carbon fiber to reference “acrylic” or “polyester,” rather than “carbon fiber.” POURGHANNAD provided Individual-1 with the bank guarantee that was to serve as surety for a portion of the carbon fiber. In June 2013, Individual-1 informed POURGHANNAD, SHOKRI, and FARIDMANESH that the carbon fiber would soon be shipped from Manhattan and that Individual-1 would replace the carbon fiber labels with shipping labels referencing “acrylic” to evade U.S. export controls.
No one involved in these transactions obtained permission from the U.S. Department of Treasury, Office of Foreign Assets Control, to export the carbon fiber from the U.S.
POURGHANNAD, 65, SHOKRI, 61, and FARIDMANESH, 48, all of whom are Iranian citizens, are each charged with one count of conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”), which carries a maximum sentence of 20 years in prison, and two counts of violation and attempted violation of IEEPA, each of which also carries a maximum sentence of 20 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 defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI, and thanked the New York Field Office of the U.S. Department of Commerce, the U.S. Department of Justice’s National Security Division and Office of International Affairs, the U.S. Marshals Service, Homeland Security Investigations, and Immigration and Customs Enforcement for their assistance. Mr. Berman also thanked German law enforcement for their assistance in the arrest and apprehension of POURGHANNAD.
The charges contained in the Indictment 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 Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Lloyd Kidd Convicted In Manhattan Federal Court Of Sex Trafficking And Child Pornography Production Offenses
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that a federal jury yesterday found LLOYD KIDD, a/k/a “Chris Kidd,” a/k/a “Gerard Agard,” a/k/a “Red,” guilty of sex trafficking of a minor and enticement of a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, following a six-day jury trial before U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Geoffrey Berman said: “Lloyd Kidd has rightly been convicted of the shameless and exploitive victimization of an underage girl. Kidd preyed on a particularly vulnerable victim, recruiting a minor residing at a foster care facility. He now awaits sentencing for his appalling crimes.”
According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court:
From at least in or about spring 2015 through at least February 2017, KIDD engaged in sex trafficking of a minor and enticement of a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The defendant recruited, enticed, harbored, transported, provided, obtained, and maintained a minor victim (“Victim-1”) for the purpose of commercial sex.
The defendant recruited Victim-1 when she was living in a foster care facility in New York, New York. The defendant used Backpage.com to post advertisements of Victim-1 for commercial sex, and then directed Victim-1 to meet customers to engage in commercial sex out of his apartment in Brooklyn, New York.
In addition, the defendant produced sexually explicit images and a video recording of Victim-1 performing sexually explicit activities, which constituted child pornography. The defendant used at least one of the sexually explicit images of Victim-1 to advertise her for commercial sex.
This prosecution is part of an ongoing investigation that, including KIDD, has charged 19 defendants, set forth in eight indictments, for the sex trafficking of at least 13 minor girls and young adults in New York State’s social services system.
KIDD, 28, of Brooklyn, New York, was convicted of one count of sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a statutory maximum sentence of life in prison, and one count of enticement of a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, which carries a mandatory minimum sentence of 15 years and a statutory maximum sentence of 30 years. The mandatory minimum sentences and maximum potential sentences are prescribed by Congress and are provided for informational purposes only, as any sentencing of the defendant will be determined by the judge.
KIDD will be sentenced by Judge Marrero on November 1, 2019.
Any individuals who believe that they have information that may be relevant to this investigation should contact the Federal Bureau of Investigation (“FBI”) at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Berman thanked the FBI and the New York City Police Department for their outstanding work in this matter and, in particular, the New York Child Exploitation and Human Trafficking Task Force.
Attorney General James Files Lawsuit Against IRS
Attorney General Letitia James filed a lawsuit against the Internal Revenue Service (IRS), along with New Jersey, and Connecticut, that argued against the new IRS Rule that would prevent residents from obtaining charitable deductions for contributions to local governments.
“The IRS’s move to end tax benefits for charitable giving is yet another attempt by the Trump Administration to unfairly target the hardworking taxpayers of states like New York,” said Attorney General Letitia James. “We will not stand idly by as this Administration throws out decades of historic precedent putting our local economies, education systems, and other critical public programs at risk. My office stands firm against this unlawful attack, and will do everything in our power to ensure that state taxpayers are protected.”
Filed in the U.S. District Court for the Southern District of New York, the lawsuit seeks to strike down a new IRS rule that would prevent residents from obtaining a full federal charitable deduction whenever they contribute to local governments and other qualifying institutions and receive tax credits in return.
The federal government began targeting states like New York, New Jersey, and Connecticut two years ago when it enacted a 2017 tax overhaul that placed, for the first time, a $10,000 cap on the federal deduction for state and local taxes (SALT). The SALT cap disproportionately harmed taxpayers in New York, New Jersey, and Connecticut.
At the time, U.S. Treasury Secretary Steven Mnuchin — named as a defendant in today’s lawsuit — confirmed that the SALT deduction cap was intended to “send a message” to states like New York that they would need to change their tax policies.
At least 33 states have developed over 100 charitable contributions programs that provide a state or local tax benefit in return for a charitable contribution to a qualifying entity under Section 170(c) of the Internal Revenue Code.
These programs incentivize individuals to donate to causes ranging from natural resource preservation and aid for higher education to domestic violence shelters. The IRS consistently treated charitable contributions made pursuant to these programs as fully deductible under federal tax law.
But when New York, New Jersey, and Connecticut decided to establish such programs, the IRS changed its mind, and issued a new rule aimed at nullifying the tax benefit New York was making available to charitable givers. The Final Rule requires taxpayers to subtract the value of any state and local tax credits they receive for charitable giving from their federal charitable contribution deduction.
The requirement is unprecedented in the 101-year history of the charitable deduction, and flies in the face of prior IRS policy statements and tax court rulings on the issue.
This lawsuit, led by New York and New Jersey, describes IRS’s action as a “radical break” from historic precedent, and describes the rule as “arbitrary,” outside the agency’s statutory authority, and a violation of the federal Administrative Procedures Act.
Attorney General James Responds To Lawsuit Against New York Rent Stabilization Laws
Attorney General Letitia James released the following statement in response to a lawsuit filed in the Eastern District of New York challenging the constitutionality of New York’s rent regulations:
“The Tenant Protection Act is a critical step in reforming the state’s broken rent regulation system—a system that bad-acting landlords have manipulated and controlled for far too long. My office is committed to defending this law, and ensuring that New Yorkers across the state have access to safe, affordable homes they need and deserve.”
Engel Cosponsors Resolution Condemning Trump Tactics at the Border
Congressman Eliot L. Engel and 56 of his Democratic colleagues have signed on as original cosponsors of a resolution condemning the President and his administration’s policies toward asylum seekers at the U.S.-Mexico border. The resolution comes on the heels of the Trump Administration’s latest efforts to cut off protections for asylum-seekers through Executive Order.
“It is no secret that the President has created a horrific, cruel and inhumane humanitarian crisis at our southern border,” Engel said. “DHS, ICE, and CBP have separated families, caged asylum-seekers, and had children die under the ‘watch’ of the U.S. government. This is on top of the fact that there are secret social media groups of CBP employees spewing heinous comments about the migrants they are abusing and my fellow members of Congress.
“Congress cannot stay silent on these abuses. With this resolution, my colleagues and I are taking a stand against this President and his administration’s disgusting, inhumane practices.”
