Current And Former DEA Agents Indicted For Bribery Scheme

 

DEA Agent John Costanzo Jr. Charged with Accepting Bribes from Former DEA Agent Manuel Recio in Exchange for Sharing of Sensitive Nonpublic DEA Information

 Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James F. Boyersmith, Special Agent-in-Charge of the Department of Justice Office of the Inspector General Miami Field Office, announced today that JOHN COSTANZO JR., a Drug Enforcement Administration (“DEA”) Special Agent, and MANUEL RECIO, a former DEA Assistant Special Agent-in-Charge, were indicted in Manhattan federal court with conspiracy to bribe a public official, conspiracy to commit honest services wire fraud, and honest services wire fraud, for a scheme in which RECIO funneled tens of thousands of dollars to COSTANZO in exchange for COSTANZO providing sensitive law enforcement information to RECIO to assist RECIO in recruiting clients for defense lawyers. In addition, COSTANZO was charged with accepting a bribe from RECIO and RECIO was charged with giving a bribe to COSTANZO. COSTANZO and RECIO were arrested today and presented before Magistrate Judge Barbara Moses.  The case has been assigned to U.S. District Judge J. Paul Oetken.

U.S. Attorney Damian Williams said:  “The conduct alleged in the indictment violates the core duty of law enforcement officers to protect and serve the public, rather than to use their access to sensitive information to enrich themselves. As alleged, Manuel Recio provided substantial secret payments to John Costanzo Jr., and in exchange, received information about pending DEA investigations, sealed indictments, and impending arrests. It is critical for federal law enforcement officers to preserve the integrity of ongoing investigations and not divulge confidential information to the private sector in exchange for financial benefits.”

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

JOHN COSTANZO JR. is a DEA special agent currently assigned to DEA Headquarters and was a Group Supervisor in the DEA’s Miami Field Office until June 2019. MANUEL RECIO is a former DEA special agent who retired as the Assistant Special Agent-in-Charge for the Miami Field Office in November 2018. Upon his retirement, RECIO began operating his own business, which provided private investigative services to criminal defense attorneys and also helped defense attorneys to recruit clients. From around the time of RECIO’s retirement through around November 2019, RECIO agreed with COSTANZO to provide benefits to COSTANZO in exchange for COSTANZO providing RECIO with nonpublic information about DEA investigations. COSTANZO provided RECIO with information about forthcoming, sealed indictments and nonpublic investigations, such as the identities of individuals charged and the anticipated timing of arrests; and intelligence which COSTANZO obtained from the Narcotics and Dangerous Drugs Information System (“NADDIS”), a DEA database that contains information about individuals who are or have been under investigation by the DEA. RECIO paid COSTANZO for this information, which RECIO used to help recruit new clients for criminal defense attorneys.

As alleged in the Indictment, among the benefits paid to COSTANZO were a $2,500 payment made in November 2018, shortly after RECIO’s retirement from the DEA, which was funneled to COSTANZO through a company owned by a close family member of COSTANZO. At the same time that this payment was made, RECIO began asking COSTANZO to run searches in NADDIS to provide RECIO with nonpublic DEA information about DEA targets and investigations. Following that initial payment, RECIO and others continued to provide benefits to COSTANZO, including tens of thousands of dollars that were funneled from RECIO through a company created by a DEA task force officer, and $50,000 that was paid to COSTANZO through a close family member for COSTANZO’s purchase of a condominium in January and February 2019.

In return, COSTANZO continued to provide nonpublic DEA information to RECIO, including information about the timing of forthcoming indictments and information about DEA arrest plans of particular targets. COSTANZO also searched NADDIS for names of particular individuals requested by RECIO on dozens of occasions during the scheme, and provided RECIO with information and assistance with particular charged defendants represented by attorneys for whom REICO was working. During the scheme, COSTANZO and RECIO took steps to conceal the existence of the scheme, including by structuring the payments from RECIO to COSTANZO through third parties, and through COSTANZO’s use of a cellphone provided by RECIO for communications related to the scheme.

COSTANZO JR., 47, of Arlington, Virginia, and RECIO, 53, of Miami, Florida, are each charged with one count of conspiracy to commit bribery, which carries a maximum term of five years in prison, and one count of receiving or paying a bribe, respectively, which carries a maximum term of 15 years in prison. COSTANZO and RECIO are also charged with one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, each of which counts carries a maximum term of 20 years in prison.

The maximum potential sentences in this case are 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 FBI and the Department of Justice Office of the Inspector General, and thanked the DEA’s Office of Professional Responsibility for its support in this matter.

[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

WILLIAMS & ARCHILA CALL FOR STATE TO IMMEDIATELY INVEST $1 BILLION IN COMMUNITY BASED-ANTI VIOLENCE INITIATIVES

 

"From Brooklyn to Buffalo, New York continues to mourn the loss of the 10 people who were killed by a racist, anti-Semitic, white supremacist. As we search for answers, we know that this violence is senseless, and that no answers will suffice in the face of the inexplicable. We also know that we need Albany to act.

"Earlier this year we called for the Governor to allocate $1 billion from the state budget to evidence-based solutions that work to create stability in our neighborhoods, prevent gun violence, and save lives. Instead, the Governor delivered a late budget that allocated nearly $1 billion to a Billionaire in Buffalo for a football stadium to be built outside of the city with the most needs. But Governor Hochul has the opportunity to make things right. 

"Comptroller DiNapoli recently announced that New York has a $3 billion revenue stream that remains unallocated by the state. With Albany entering the final few weeks of session, we urge the Governor to act by using the state’s surplus to immediately invest $1 billion in community-based gun violence prevention services, youth programming, and victims’ services. We also call on funding to address hate crimes and to combat the increase of white nationalism across the state. Combined with the holistic public safety measures outlined in our 10-point plan, communities across the state can not only feel and be safe, but thrive.

"The Governor recently spoke about living 10 minutes from where the horror occurred in Buffalo, expressing concern because the community is a food and transportation desert. She now has the opportunity to truly address those and other needs she has recently appeared to discover."

CONSUMER ALERT: Attorney General James Warns New Yorkers of Summer Rental Scams

 

With Summer Approaching, AG James Offers Tips to New Yorkers to Avoid Scams When Booking Vacation Rentals

 New York Attorney General Letitia James today warned New Yorkers of scams on vacation rentals and offered tips on how to avoid them as summer approaches. As millions of New Yorkers plan their getaway trips and look to rent homes, they should be mindful of scammers that misrepresent rentals or list fake homes online that do not actually exist, tricking consumers into paying and leaving them with nowhere to stay. To protect people from this fraud, Attorney General James encourages New Yorkers to verify their host and booking before making a payment. Attorney General James urges New Yorkers to report any summer scams to her office.

“Scammers don’t take the summer off,” said Attorney General James. “Summer plans can quickly melt if consumers aren’t careful when they book their getaway. Vacation fraud happens every year, but there are ways to avoid it and protect yourself from getting burned. School might be out, but don’t forget to do your homework — take the time to verify the host and read online reviews to ensure that vacation rentals are real and not a dupe. All year, my office is working to protect New Yorkers’ wallets from scammers, and we encourage anyone to report this fraud to our office.”

Attorney General James recommends consumers take the following precautions before booking their summer getaway:

Verify the host. Make sure the renter or host has a valid address and phone number.

Make sure the listing has reviews and read the reviews. Be wary of listings on websites like Airbnb or VRBO that do not have any reviews listed. When reading reviews, check for multiple reviews that repeat the same phrases — that could be a sign that the reviews are fake.

Check that the photos have not been stolen from another website. Use reverse image search of photos of the rental to ensure that the photos have not been listed on another website.

Communicate only through the listing site before booking. One way that scammers try to trick consumers is by first posting a listing on a site like Airbnb or VRBO, and then requiring you to communicate directly with the host outside the website or app to book the listing. Do not share your email address or phone number with the host or renter before your booking is accepted.

Only book with a credit card or debit card. Use verified payment sources such as a major debit or credit card, which can be traced in the event something goes wrong. One advantage of using a credit card specifically is that you have certain protections under the Fair Credit Billing Act, which allows you to dispute unauthorized charges.

Only make payments through the listing site. If using a site such as Airbnb or VRBO, make all payments through the site, as they may be able to refund you if you are later defrauded.

Never make wire payments or cash payments. NEVER make a payment using a wire transfer service or money transfer service such as Western Union, Money Gram, Zelle, CashApp, or Venmo.

Rent security deposits. You may be asked to make a security deposit. Generally, you cannot be required to pay more than one month’s security deposit. The owner can apply the security deposit to cover any damages caused by you or unpaid rent but otherwise must return the deposit to you at the conclusion of the rental.

Know your rights. It is illegal for a host to deny a vacation rental to you based on your race, religion, national origin, sex, sexual orientation, gender identity, military status, disability, or marital status. If you believe that you have been discriminated against or harassed based on any of these protected classes, you can file a complaint with the New York State Division of Human Rights.

To report a summer scam, contact the Office of the Attorney General’s Consumer Frauds Bureau.

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 = MAY 20, 2022

 

23 Statewide Deaths Reported Yesterday

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.

"The best way to stay out of the hospital and avoid serious illness from COVID-19 is to get fully vaccinated and stay up to date on your booster doses,” Governor Hochul said. "Also, be sure to get tested to ensure you’re not spreading COVID-19 to your loved ones. And if you test positive, talk to your doctor about treatment. Let’s not get complacent and keep using these tools to stay safe.”

Today's data is summarized briefly below:   

Cases Per 100k – 53.51
7-Day Average Cases Per 100k – 48.24
Test Results Reported – 120,323
Total Positive – 10,458
Percent Positive - 8.31%**  
7-Day Average Percent Positive – 8.66%**
Patient Hospitalization - 2,638 (-20)
Patients Newly Admitted - 443
Patients in ICU - 249 (-4)
Patients in ICU with Intubation - 91 (-8)
Total Discharges - 303,440 (+440)
New deaths reported by healthcare facilities through HERDS - 23
Total deaths reported by healthcare facilities through HERDS - 55,877

** Due to the test reporting policy change by the federal Department of Health and Human Services (HHS) and several other factors, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.  

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.    

Important Note: Effective Monday, April 4, the federal Department of Health and Human Services (HHS) is no longer requiring testing facilities that use COVID-19 rapid antigen tests to report negative results. As a result, New York State's percent positive metric will be computed using only lab-reported PCR results. Positive antigen tests will still be reported to New York State and reporting of new daily cases and cases per 100k will continue to include both PCR and antigen tests. Due to this change and other factors, including changes in testing practices, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.    

Total deaths reported to and compiled by the CDC - 71,321

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.      

Total vaccine doses administered - 38,761,757
Total vaccine doses administered over past 24 hours – 25,698
Total vaccine doses administered over past 7 days - 146,198
Percent of New Yorkers ages 18 and older with at least one vaccine dose - 92.6%  
Percent of New Yorkers ages 18 and older with completed vaccine series - 83.9%  
Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 95.0%  
Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 87.2%  
Percent of New Yorkers ages 12-17 with at least one vaccine dose (CDC) - 83.4%  
Percent of New Yorkers ages 12-17 with completed vaccine series (CDC) - 73.4%  
Percent of all New Yorkers with at least one vaccine dose - 82.1%  
Percent of all New Yorkers with completed vaccine series - 74.3%  
Percent of all New Yorkers with at least one vaccine dose (CDC) - 90.4%  
Percent of all New Yorkers with completed vaccine series (CDC) - 77.2%          

Each New York City borough's 7-day average percentage of positive test results reported over the last three days is as follows **:    

Borough	Tuesday, May 17, 2022	Wednesday, May 18, 2022	Thursday, May 19, 2022
Bronx	3.73%	3.97%	4.30%
Kings	5.07%	5.33%	6.85%
New York	6.02%	6.12%	6.83%
Queens	5.15%	5.26%	6.84%
Richmond	6.71%	6.51%	7.74%

Permits Filed For 1985 Jerome Avenue In Morris Heights, The Bronx

 

Permits have been filed for a seven-story mixed-use building at 1985 Jerome Avenue in Morris Heights, The Bronx. Located between West Burnside Avenue and West Tremont Avenue, the lot is steps from the Burnside Avenue subway station, serviced by the 4 train. Moris Yeroshalmi under the Yed LLC is listed as the owner behind the applications.

The proposed 70-foot-tall development will yield 41,759 square feet, with 38,620 square feet designated for residential space and 3,139 square feet for commercial space. The building will have 56 residences, most likely rentals based on the average unit scope of 689 square feet. The concrete-based structure will also have a cellar and a 30-foot-long rear yard.

ARC Architecture + Design Studio is listed as the architect of record.

Demolition permits were filed in March for the parking lot on the site. An estimated completion date has not been announced.

MAYOR ADAMS, HUD, NYCHA COMPLETE $434 MILLION COMPREHENSIVE RENOVATION OF NINE PUBLIC HOUSING DEVELOPMENTS, BENEFITING MORE THAN 6,000 BROOKLYNITES

 

Resident Association Leaders, PACT Partners Deliver Comprehensive Apartment Upgrades, Renovated Community Spaces, and Infrastructure Enhancements That Will Improve Public Safety and Quality of Life

  New York City Mayor Eric Adams, U.S. Department of Housing and Urban Development (HUD) Regional Administrator Alicka Ampry-Samuel, New York City Housing Authority (NYCHA) Chair Greg Russ, and NYCHA resident association leaders today announced the completion a $434 million full-scale revitalization of nine public housing developments across Brooklyn under the Permanent Affordability Commitment Together (PACT) program. Known as the Brooklyn Bundle II, the nine public housing developments span 37 buildings and over 2,600 apartments, which are home to more than 6,000 NYCHA residents. The nine developments are managed by the PACT partner team, which includes the Arker Companies, Omni New York LLC, Dabar Development Partners, and the Bedford Stuyvesant Restoration Corporation. 

“All New Yorkers have the same right to public safety and quality of life, no matter where they live, and today we take one major step closer to realizing those rights for 6,000 New Yorkers,” said Mayor Adams. “This process only works with residents, front and center, throughout the process, and I want to thank the resident association leaders across these sites for their partnership from beginning to end. Even as this project has delivered the much-needed comprehensive improvements that New Yorkers deserve, it is clearer than ever that we need every tool available to do the same across the city. That’s why the PACT program is essential and why I will continue working closely with my partners in Albany and in public housing, across all five boroughs, to pass the NYCHA Public Housing Preservation Trust and make the improvements that have been promised for years but never materialized.”

 

The nine renovated developments are:

• Armstrong I (371 units)
• Armstrong II (248 units)
• Berry Street — South 9^th Street (150 units)
• Independence Towers (744 units)
• Marcy Avenue-Greene Avenue Site A (48 units)
• Marcy Avenue-Greene Avenue Site B (30 units)
• 572 Warren Street (200 units)
• Weeksville Gardens (257 units)
• Williams Plaza (577 units)

“Congratulations to Arker, Omni, Dabar, Bed Stuy Restoration, and, most importantly, the more than 6,000 NYCHA residents who now have beautiful new homes,” said New York City Chief Housing Officer Jessica Katz. “The PACT program continues to show it is one of the best tools available to delivering long-overdue repairs to New Yorkers while protecting tenant rights. NYCHA will continue this momentum with our allies and partners at all levels of government to deliver the safe, healthy homes NYCHA residents deserve.”

 

“The completion of these renovations opens a new chapter in the lives of 6,000 NYCHA families,” said HUD Regional Administrator for New York and New Jersey Alicka Ampry-Samuel. “All New Yorkers deserve to be proud of their home, and now they finally live in upgraded, safe apartments. HUD’s Rental Assistance Demonstration program, or PACT at NYCHA, delivers beautiful units and ensures these apartments remain permanently affordable.”

 

“Housing affordability and stability are critical to ensuring equitable communities, and the array of amenities delivered to these developments ensures that more than 6,000 NYCHA residents will have improved living conditions for generations to come,” said NYCHA Chair and CEO Greg Russ. “The Brooklyn Bundle II project demonstrates what is possible under the PACT program when multiple stakeholders are aligned for change.”

 

“The comprehensive apartment renovations and building system upgrades completed at these nine developments wouldn’t be possible without the close involvement of our tenant association leaders, the institutional support of the city, and the tireless commitment of our development partners — who shared our vision for delivering 21^st-century, quality of life-changing improvements on behalf of our residents,” said Jonathan Gouveia, executive vice president of real estate development, NYCHA. “PACT is an essential tool in our efforts to drastically transform our building stock, and the modernizations on display here today should leave no doubt as to the benefits of this program.” 

 

“HDC is proud to contribute critical financing to help ensure stronger, more equitable communities through PACT,” said New York City Housing Development Corporation (HDC) President Eric Enderlin. “Thanks to extensive resident engagement and the dedication of our partners, these 2,625 NYCHA households will benefit from comprehensive upgrades, guaranteed tenant protections, as well as enhanced social services and community programming. Congratulations to the residents and all our partners for their efforts towards guaranteeing the success and longevity of our city’s public housing.”

 

“The community members at these developments represent so much of what makes Brooklyn great, and we’re proud to have worked closely with them along with our partners at Omni, Dabar, and Bedford Stuyvesant Restoration Corporation to deliver the safe, affordable housing they deserve,” said Daniel Moritz, principal, Arker Companies. “The NYCHA PACT program has allowed us to preserve critical affordable housing, ensure residents have all the same strong rights they’ve always had, and improve the quality of life of New Yorkers for years to come.”

 

“This project has been an investment not just in the thousands of apartments and buildings, but also in the residents who make up these strong Brooklyn communities,” said Eugene Schneur, cofounder and managing director, Omni New York LLC. “These renovations not only preserve affordable housing for thousands of families, but they also meet the needs of the community with supportive services, shared open space, and programming for Brooklynites of all ages.”

 

“We are so proud to reach the ribbon-cutting milestone on these developments, which preserve high-quality affordable housing for thousands of Brooklyn residents, thanks to the NYCHA PACT program,” said Dawanna Williams, founder and managing principal, Dabar Development Partners. “Only through our strong joint venture partnership with Arker, Omni, and Bedford Stuyvesant Restoration Corporation are we able to offer these modernized facilities, dynamic outdoor space, and vital social services to be enjoyed by New Yorkers at large.”

 

“Restoration is overjoyed to continue over 50 years of community development with our dynamic partners Dabar, Omni, and Arker,” said Gordon Bell, CFA, chief of strategy and business, Bedford Stuyvesant Restoration Corporation. “Our team’s efficient rehabilitation of 2,600 units, while supporting thousands of families through the COVID pandemic and 40-year-record inflation is a tribute to the resilient Brooklyn community we proudly serve.”

 

The development team replaced, overhauled, or corrected infrastructure at 37 buildings in total, with the installation of new roofs, elevators, windows, doors, plumbing fixtures, and trash removal systems. Renovations completed within the 2,625 apartments included full-scale replacements of kitchens, bathrooms, and apartment electrical panels, as well as the installation of new flooring for living rooms and hallways.

 

Other enhancements included improvements to building entrances and facades, beautified lobbies and hallways, and the addition of thousands of cameras and energy-efficient lighting in common and exterior spaces to improve public safety. Non-residential facilities at the nine developments in the bundle were upgraded, with vacant community centers for Berry Street and the Armstrong campuses being wholly repaired and renovated.

All nine developments in the bundle received new boiler and heating equipment — most notably, Independence Towers installed high-efficiency boilers, new hydronic distribution lines, apartment radiators, and temperature controls designed to improve the delivery of hot water and safeguard the system against storm events.

 

In addition to environmentally retrofitting the buildings against extreme weather events, the development partners also partnered with the local nonprofit Solar One to install solar panels on the rooftops of four developments. The energy generated from these solar panels will be circulated back into the electrical grid for the surrounding community and the clean solar power that is generated will help to offset peak electricity usage.

 

Before-and-after photos of the renovated NYCHA sites are available online.

 

The development partners also took care to be responsive to the cultural needs of NYCHA residents throughout the process. The partner team worked closely with tenant leadership and the United Jewish Organization, a local nonprofit, to ensure construction work was considerate of the needs of the Jewish community, adjusting working schedules to minimize disruptions during Shabbat and Jewish holidays. The partner team also made other accommodations for the local Hasidic community, including the design and installation of new Shabbat-compliant access controls at front entrances and Kosher-compliant sink faucets, compartments, and dividers.

 

Through PACT, property managers with the development team are now responsible for the day-to-day operations and upkeep of the buildings and grounds. Across the bundle, there are 73 on-site staff members and numerous offsite staff dedicated to these buildings. There are 55 people for on-site maintenance staff, all of whom are members of 32BJ. Sixty-two NYCHA residents were hired for construction positions, and an additional 28 were hired for permanent positions with property management.

 

The Brooklyn Bundle II marks the fourth major project completed under the PACT program, which leverages HUD’s Rental Assistance Demonstration (RAD) program by transitioning a development’s operating subsidy to Project-Based Section 8 funding to finance capital needs.

 

HDC — New York City’s municipal housing finance agency — is a key financing partner for PACT. Under PACT, HDC coordinates or provides loan financing through HDC’s Multi-Family Housing Bond Resolution or the Housing Impact Bond Resolution, a new bond resolution created solely to facilitate NYCHA transactions.

 

Since 2016, the PACT program has generated more than $3.4 billion in capital funding for comprehensive apartment renovations and building infrastructure improvements for nearly 15,500 households. Approximately $579 million in renovations have already been completed, and $2.8 billion in major upgrades are underway or will begin early this year. An additional 19,700 households are part of active development projects in the process of resident engagement or pre-development. In sum, NYCHA has more than 35,000 apartments completed, in construction, or in a stage of resident engagement or pre-development.

 

More information on NYCHA’s PACT program can be found here, and more information on the Brooklyn Bundle II renovation project can be found here.