NYC Council Calls for Budget Restorations and Greater Investments in Programs That Address Recidivism and Mental Health to Improve Public Safety and Advance Closure of Rikers ahead of Criminal Justice Executive Budget Hearing

 

Mayor’s FY25 Executive Budget fails to restore and provide funding for safety solutions that prevent cycles of crime and reduce jail population 

Ahead of the City Council’s Executive Budget hearing with the Committee on Criminal Justice and the Committee on Finance, the Council called for the Administration to prioritize the restorations and investments for programs that help the City reduce recidivism and effectively address mental health challenges in order to prevent unnecessary incarceration and improve public safety. Specifically, the Council identified budget priorities that, if funded, can help advance unfulfilled commitments of the City towards lowering the jail population and closing Rikers, like Justice Involved Supportive Housing, Mental Health Courts, alternatives to incarceration and re-entry programs, and other proven mental health interventions.  

With approximately half of people in city jails having some kind of mental health diagnosis and at least 1 in 5 individuals dealing with a serious mental illness, there are clear interventions that can be funded to prevent city jails from being de facto mental health institutions. Studies show that filtering people with mental health challenges into the criminal justice system and incarceration is ineffective in addressing underlying conditions and can often exacerbate them. Effective mental health interventions and programs that the City committed to implement as part of efforts to lower the jail population and close Rikers have been left out of the mayor’s proposed budget. Yet, the city’s district attorneys made clear at the Council’s Preliminary Budget hearing by the Committee on Public Safety that the City must prioritize greater investments in housing, mental health care, and programs that reduce recidivism and provide opportunity and stability.   

In its Preliminary Budget Response, the Council prioritized several programs that have been cut, unfunded or underfunded in the Mayor’s Fiscal Year 2025 Executive Budget. These include: 

Mental Health Courts and Diversion Programs 

The Council has called for the Administration to provide an additional $8.9 million for baseline funding for mental health courts that connect people to appropriate interventions: $4.7 million in additional resources for the Manhattan Mental Health Court and the Judicial Diversion Court’s Mental Health Track, and $4.2 million for alternative-to-incarceration programs (ATIs) and problem-solving courts. Mental health courts and their associated programs help facilitate appropriate mental health responses and reduce the likelihood of rearrest by diverting people into treatment with increased coordination of care to address underlying issues. These programs have lacked the capacity to fulfill the level of need, are too often unavailable, and can have average wait times of months for appropriate placement because of insufficient investments to operate at scale.  

15/15 Supportive Housing and Justice-Involved Supportive Housing 

The Council has called on the Administration to allocate $19.6 million to advance the 15/15 Supportive Housing program and $6.4 million for Justice Involved Supportive Housing (JISH) to ensure 500 supportive housing units are brought online for New Yorkers to successfully transition back into their communities. Supportive housing remains one of the most effective methods to address issues of mental health and homelessness by providing housing stability to individuals experiencing or at risk of homelessness with other challenges or involvement in the justice system.  

Alternatives to Incarceration and Re-entry Programming 

The Council has called for the Administration to restore $14.7 million in funding for programs that reduce recidivism. These include $8 million for reentry programs that reduce recidivism by ensuring that people transitioning from incarceration can successfully return to their communities and $6.7 million for Alternative to Incarceration programs that intervene with services tailored to participants that can help reduce unnecessary incarceration and recidivism. For years, the Mayor’s Office of Criminal Justice has managed this programming, but the Mayor’s Program to Eliminate the Gap cut their funding and the Executive Budget only partially restored it. 

Forensic Assertive Community Treatment (FACT) teams 

The Council has called for an additional $7 million investment to expand the City’s FACT teams, which are specialized units composed of experts including behavioral health specialists, clinicians, and case management experts that provide care and wraparound services for individuals with serious mental illnesses (SMIs). They provide targeted support to people who have not been effectively served by traditional services and have cycled through the justice system without successful interventions to address their underlying challenges.  

Supporting Public Safety Intervention Programs for Youth   

The Council calls for $12.5 million to restore cuts and provide expanded funding to public safety youth intervention programs in communities experiencing high levels of violence and to confront the increase in youth incarceration that has approximately doubled. These include:  

•   Restoring the $1.6 million baselined cut to the Arches program, which helps young people at greatest risk of crime and violence avoid destructive activities that derail them from employment and education, and lead to involvement in the justice system.   
•   Restoration of the $2.6 million baselined cut to the Next Steps program, which intervenes with high-risk young people to reduce violence in target NYCHA developments with high incidents of violence.   
•   Additional investment of $5 million for youth alternative to incarceration/alternative to detention (ATI/ATD) programming through the Department of Probation (DOP) to alleviate the increase in youth incarceration within ACS secure detention centers over the past two years. 

Community Justice Centers 

The Council called on the Administration to provide the necessary capital funds to construct facilities to house Community Justice Centers in the Bronx and Staten Island, the only boroughs without centers. Community Justice Centers have bridged the gap between the courts and communities to improve public safety and public trust in justice. By helping community members access stable housing, neighborhood safety, re-entry services, and youth programming, these Centers reduce recidivism and help prevent crime while solving neighborhood problems.  

Board of Correction (BOC) Restoration and Baseline  

The Council calls on the Administration to increase the Board’s baseline budget by $1.5 million to allow for increased monitoring and medical staff to provide comprehensive investigations of deaths in the City’s jails and carefully monitor DOC’s operations. The Board of Correction oversees policies, procedures, and misconduct in the Department of Correction, and this oversight is pivotal given that 31 people have died in DOC custody, or immediately following release from it, since 2022. 

Trauma Recovery Centers 

Over the past two fiscal years, the Council has allocated nearly $5 million to establish New York State’s first trauma recovery centers (TRCs) in Brooklyn (2) and the Bronx (1). TRCs are designed to reach survivors of violent crime who lack access to traditional victim services and are less likely to engage in mainstream mental health or social services. They provide wraparound services and coordinated care, including mental health, physical health, and legal services, by utilizing multi-disciplinary staff that can include psychiatrists, psychologists, social workers, and outreach workers focused on providing survivor-centered healing and removing barriers to care. The Council called for $7.2 million in baselined funding to permanently sustain the existing TRCs and create one new center in both Queens and Staten Island in the Fiscal Year 2025 budget. 

“The Council has consistently called on the Administration to invest in proven solutions that improve mental health outcomes and reduce recidivism to advance public safety and the closure of Rikers,” said Speaker Adrienne Adams. “These programs effectively intervene to provide stability by addressing underlying issues, rather than unnecessarily leaving people worse off from being cycled them through the criminal justice system without solutions. Mayor Adams’ administration must follow through in taking these necessary steps for public safety and lowering the jail population to meet the City’s obligation to close Rikers by 2027. The Fiscal Year 2025 budget must be a pivotal turning point for the Mayor’s administration to support these necessary investments that the Council has outlined as priorities for the city.” 

Staten Island Man Sentenced to 33 Months in Prison for $1.9 Million Baby Formula Scheme

 

A New York man was sentenced to two years and nine months in prison and ordered to pay approximately $738,000 in restitution and forfeit approximately $1 million for his role in a scheme to fraudulently obtain specialty baby formula. 

According to court documents, Vladislav Kotlyar, 45, of Staten Island, submitted and caused the submission of forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. Kotlyar obtained prescriptions and medical records for infants who were prescribed baby formula and forged those records with respect to the type and amount of formula prescribed to obtain high volumes of expensive specialty baby formula. After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including by impersonating the infants’ fathers, to falsely claim that shipments were damaged or contained the incorrect formula to acquire additional formula at no additional cost. Kotlyar then sold the fraudulently obtained formula. A portion of Kotlyar’s scheme occurred during a national shortage of infant formula. 

Kotlyar previously pleaded guilty in March 2023 to mail fraud. 

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.

The FBI New York Field Office investigated the case. 

Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Claire S. Kedeshian for the Eastern District of New York assisted with forfeiture. 

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Department of Health and Human Services Office of Inspector General, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Governor Hochul Announces More Than $8.7 Million Awarded Through the Office of Strategic Workforce Development

11 Projects Across the State Will Leverage More Than $16.2 Million in Public/Private Funding to Support More Than 1,700 Trainees for Over 60 Business Partners

Launch of Improved Guidelines Will Streamline Awards Process and Scale Best Practices Across the State – Read Guidelines Here and Here

Governor Kathy Hochul announced the New York State Office of Strategic Workforce Development has awarded an additional $8.7 million in grants to 11 projects across the state through the Workforce Development Capital and Pay for Performance Operating Grant Programs. These grants will support the training of almost 1,700 workers through collaboration between training providers and more than 60 employer partners in fields like construction, industrial manufacturing, renewable energy and software engineering. The Office, which operates under Empire State Development, is charged with supporting industry-driven workforce development programs and practices to ensure New Yorkers have the skills to meet the needs of employers in the state's fastest growing industries.

“New York is making sure that the State is well prepared with the talent and workforce of the future,” Governor Hochul said. “This latest round of strategic workforce development grants will continue our mission to ensure that all New Yorkers have the opportunity to gain skills need by top employers, especially those who have been traditionally left behind.”

These fifth and sixth rounds of awards from the Office of Strategic Workforce Development brings the total investments from six rounds to nearly $40 million that will leverage more than $50 million in public and private funding and support 12,000 trainees for over 460 business partners.

The grants awarded to 11 projects today will support employer-driven, high-skilled workforce training programs and reward innovative approaches and best practices that reduce the barriers to participation for high-need communities. The $35 million Workforce Development Capital Grant Program supports the capital needs of workforce training providers that seek to enhance or expand their offerings. The $115 million Pay for Performance (P4P) Operating Grant Program has flexible funding to help providers cover programmatic expenses like curriculum development and wraparound services to prepare New Yorkers with in-demand skills and industry-recognized credentials. These grant programs allow workforce training providers to expand the capacity of successful programs with high placement rates and effective wraparound services.

Awardees:

• Capital Region BOCES – Capital Region – $3,000,000 (Workforce Development Capital Grant): Capital Region BOCES will use funding to construct an 45,000 square foot expansion of the existing Career and Technical Education Center, increasing capacity by 33% and allowing them to serve an additional 140 students per year for programs such as building trades, electrical trades, HVAC-R, heavy equipment operation, network cabling, wireless technology, and cybersecurity. The CTE Center, developed in 2022 with support from ESD, is supported by more than twenty local industry partnerships, and currently has a wait list for access to its training programs.
• Eastern NY Laborers – Employers Education and Training Fund – Capital Region – $218,284 (Workforce Development Capital Grant): Eastern NY Laborers (LIUNA Local 157) will create a satellite training center to support the Laborers/Bricklayers’ pre-apprenticeship and apprenticeship programs, as well as short-term continuing education and safety training for Union members. The program has strong community support with both recruitment and support services, with partners providing work appropriate clothing, tools and books, licensing and testing fees, transportation, childcare and more, as well as career services and job placement assistance directly via the Union.
• Center for Instruction, Technology & Innovation (CiTi) BOCES – Central New York – $743,068 (Workforce Development Capital Grant): CiTi BOCES will expand existing training space and purchase new equipment to create the Manufacturing and Automation Lab, which will house electrical, manufacturing, and robotics training programs for adult and youth learners. The space will also house the new Oswego County Advanced Manufacturing Hub, a platform for local industry partners to train and credential current employees that provides an alternative to sending trainees out of state for industry-recognized training.
• Central New York Laborers’ Training Fund – Central New York – $564,000 (Workforce Development Capital Grant): The Central New York Laborers Local 633 will construct a new training facility to meet the labor demands for the regional I-81 viaduct and Micron projects. The new facility will increase both the Laborers’ training capacity (from 10 to 50 apprentices at a time), and accessibility (allowing members to train locally rather than traveling to Oswego, and at a location accessible via public transportation). Apprentices earn industry-recognized credentials and union benefits, including on-the-job training, mentorship, ongoing education, healthcare and retirement benefits.
• Rochester Laborers Training & Apprentice Fund Local 435 – Finger Lakes – $514,665 (Workforce Development Capital Grant): Local 435 will use funding to construct a training center for construction craft laborers, flaggers and photovoltaic instructors in the Rochester area, making training more accessible for apprentices who currently face 2.5-hour travel times to training facilities. They will partner with the Urban League of Rochester to recruit diverse trainees from Monroe and the surrounding nine counties, and to provide access to wraparound services including assistance with GED preparation, obtaining NYS learners permits and drivers licenses, connections to community support services, job readiness training, and acquiring PPE.
• Orleans County – Finger Lakes – $95,250 (P4P Operating Grant): In response to local industry needs, Orleans County will use funding to expand access to computer numerical control (CNC) machining training for diverse county residents, including young adults not covered by other funding streams. The county will provide wraparound services for trainees, including transportation to sites not on public transportation routes, tools and equipment needed for training, childcare, counseling, and housing assistance as needed, while training partner CNC Technical Solutions will provide credentialed skills training.
• Nubian Directions II Inc. – Mid-Hudson – $653,265 (P4P Operating Grant): Nubian Directions will develop a new green building technology pre-apprenticeship program focusing on solar power, weatherization, HVAC, and home inspection. The direct-entry program will utilize the nationally recognized industry curriculum, certifications, and credentials. This YouthBuild program features case management and crisis intervention to ensure participants have access to all the supports needed to succeed.
• Commonpoint Queens – New York City – $711,680 (P4P Operating Grant): Commonpoint Queens, in partnership with training partner Building Skills NY, will expand their Building Trades Vocational Program, which provides training in foundational construction skills and results in seven base industry-recognized credentials plus an additional credential following specialization in either plumbing or electrical work. The program includes case management and services planning, work readiness training and job placement, and a full year of post-placement retention support for trainees.
• Opportunities for a Better Tomorrow – New York City – $675,450 (P4P Operating Grant): Opportunities for a Better Tomorrow will pilot a new renewable energy and sustainable construction pre-apprenticeship training program, which will provide trainees with the mechanical, technical, electrical, and general construction skills needed for careers in sustainable construction. By providing paid training, transportation assistance and direct entry with union partners, the program will provide a pathway for individuals from underserved NYC communities to access the fast-growing clean energy sector.
• Rebuilding Together NYC – New York City – $555,000 (P4P Operating Grant): Rebuilding Together will double the training capacity of the six-week Careers in Construction pre-apprenticeship program, which connects young adults from low-income communities of color to union apprenticeships and jobs in the construction industry. The program serves un/underemployed individuals, provides industry-recognized credentials, and job-site experience to prepare participants for union apprenticeships. The program also provides graduates with a stipend and three years of post-completion support, including mentorship and job placement, and has extensive relationships with community partners to provide additional supports as needed.
• Per Scholas, Inc. – Western New York – $1,000,000 (P4P Operating Grant): Per Scholas will launch a new campus in Buffalo to scale their successful tech training program to Western NY. The program provides free training in Amazon Web Services (AWS) re/start, cybersecurity, IT support, and software engineering as well as robust learner supports, including access to mental health counseling, childcare, emergency food and housing support, and all training expenses. Program graduates receive continued support for two years post-completion and historically earn an average of four times their pre-enrollment wage, post-completion.

Additionally, the Office of Strategic Workforce Development has revamped their guidelines to streamline and hasten the process for qualified applicants. This includes a rolling application process, increased application assistance from Empire State Development and increasing the potential award amounts for Pay for Performance Operating Grants. The new guidelines are available here and here.

NYS Office of the Comptroller DiNapoli Releases Analysis of SFY 2024-25 State Budget

 

Identifies Risks to Financial Plan in Years Ahead The estimated $237 billion Enacted Budget for State Fiscal Year (SFY) 2024-25 increases spending for vital state services like Medicaid and school aid and includes new funding and policy changes to spur the creation of much needed housing, but the state’s financial outlook includes several risks, according to a report by State Comptroller Thomas P. DiNapoli. “This year’s state budget was adopted in an improved economic environment, with state tax collections outperforming projections,” DiNapoli said. “However, the state faces several revenue risks which may make current spending levels for essential programs and services difficult to sustain. The budget also includes troubling provisions that limit transparency and accountability and relies on backdoor borrowing and other practices that bypass statutory debt limits. These actions create risks and raise concerns for the state’s long-term fiscal standing.” Revenue Risks All Funds revenues for SFY 2024-25 are projected to total $227.2 billion, a decline of $7.3 billion, or 3.1%, from the prior year. The decrease is primarily attributable to projected reductions in investment income, gaming receipts, and other special revenue fund receipts, as well as the expected depletion of funds from the federal American Rescue Plan. In addition, fiscal pressures may build as revenue streams that have been critical to maintaining budget balance are scheduled to expire in the years ahead, including temporarily higher Personal Income Tax (PIT) and Corporate Franchise Tax rates. Reliance on Personal Income Tax In SFY 2023-24, just over half of All Funds tax revenues were from the PIT. These revenues rely on a small number of taxpayers whose sources of income are subject to significant volatility. For tax year 2021, those with incomes over $1 million comprised 1.6% of the PIT filers but paid 44.5% of New York’s PIT. They also comprised nearly three-quarters of the unearned income reported that year (capital gains, dividends and interest); the amount of income reported from these sources increased by 54.2% due to the record financial market levels in 2021. Based on preliminary data for the 2022 tax year, total unearned income declined by 43.6% in SFY2023-24 for those earning over $1 million. As a result, taxes paid by these high-income filers fell by over 37%, contributing to the overall lower PIT collections during the fiscal year. Major Spending and Policy Actions Projected All Funds spending of $237 billion for SFY 2024-25 would be a nearly 1% increase year-over-year following a period of significant spending growth. When comparing the actual spending from SFY 2023-24 to the actual spending from SFY 2019-20, spending increased 33% in the General Fund, 25.8% in State Operating Funds, and 35.8% in All Funds. School aid and Medicaid drove much of the  growth. The budget is estimated to provide $36 billion in total school aid for School Year (SY) 2024-25, an increase of $1.6 billion from $34.4 billion in SY 2023-24 (4.7%). This includes a year-over-year increase of $934 million (3.9%) in foundation aid to $24.9 billion in SY 2024-25. School aid has grown 29.4% since SFY 2019-20, largely reflecting the three-year pledge to fully fund the foundation aid formula, which was completed with adoption of the SFY 2023-24 budget. The budget contains $2 million for a study on the foundation aid formula to provide perspective on the future of school aid. The budget provides $35.7 billion in Medicaid spending for SFY 2024-25. Budget actions are expected by the Executive and the Legislature to produce savings of $768 million in SFY 2024-25 and nearly $1.2 billion per year from SFY 2025-26 through SFY 2027-28. The budget also increases Medicaid payments for hospital services by $525 million and for nursing homes by $285 million, in addition to increases for safety net hospitals of $500 million, to $844 million, and $300 million in funding for the healthcare safety net transformation program. This program is intended to improve the financial sustainability of safety net institutions, including hospitals, nursing homes, clinics and home care providers. The state has had difficulty containing costs in the Medicaid program, and has routinely taken actions to circumvent the global spending cap. The state continued to defer Medicaid payments across state fiscal years, pushing $1.4 billion that was due to be paid in March 2024 to April 2024.  The budget also includes $1.2 billion in state Medicaid funds through SFY 2027-28 to support increased Medicaid enrollment. Medicaid enrollment could trend higher than Financial Plan projections, a risk with fiscal implications identified by the Office of the State Comptroller in several reports. Federal approval of a tax on managed care organizations is also not assured, yet the state assumes $350 million in revenue from the tax. Reserve Funds At the end of SFY 2023-24, statutory rainy-day fund balances totaled $6.26 billion. In addition to the statutory rainy-day funds, the Executive indicates that informal reserves will be maintained, and combined reserves will total 15% of State Operating Funds spending. The recent improvements in reserve fund levels and statutory authorization are encouraging but weaknesses remain. As DiNapoli has recommended, deposits should be regular and consistent during prosperous economic times. Moreover, greater emphasis should be placed on statutory reserves rather than informal reserves. Informal reserves such as the “economic uncertainties” fund can be used by the Executive for any purpose, with no requirements that they be replaced. Debt Structuring & Short-Term Borrowing The budget reauthorizes 50-year maturities for state-supported bonds issued for MTA purposes for another three years, an exception to the Debt Reform Act’s otherwise 30-year maturity limit for all state-supported debt. To date, the use of this authorization has increased taxpayer costs by nearly $1.2 billion, trading marginal short-term budget relief for considerably higher total long-term fixed costs. DiNapoli’s Roadmap for State Debt Reform shows how caps and other debt restrictions set in statute have not worked to rein in state debt or stop inappropriate borrowing practices, and proposed comprehensive and binding constitutional state debt reform to restore accountability to taxpayers. Transparency and Independent Oversight The SFY 2024-25 budget includes a number of troubling actions that remove oversight by DiNapoli’s office as well as normal competitive procurement requirements, as has been done in prior budgets. At least $367.6 million is exempt from the Office of the State Comptroller’s oversight and normal competitive procurement requirements. In addition, the contract for the statewide Fiscal Intermediary for the Consumer Directed Personal Assistance Program, whose value is not captured in this figure, is also exempt from these requirements. An additional $1.5 billion is exempt from normal competitive procurement requirements; and another $1.9 billion is to be distributed at the discretion of the Executive or the Division of the Budget and may not follow normal competitive procurement requirements. Report Enacted Budget Report: State Fiscal Year 2024-25

TWO NYPD OFFICERS INDICTED IN OFF-DUTY SEXUAL ABUSE OF UNCONSCIOUS WOMAN AFTER NIGHT OUT

 

Bronx District Attorney Darcel D. Clark today announced that two NYPD officers were indicted on Criminal Sexual Act and Sexual Abuse charges for allegedly engaging in sexual conduct with a heavily intoxicated woman in an off-duty incident. 

 District Attorney Clark said, “The alleged actions are reprehensible. The victim was incapacitated and physically helpless, unable to consent. Our Office is providing services to the victim to help her through this.” 

 District Attorney Clark said the defendants, Christian Garcia, 31, and Julio AlcantaraSantiago, 39, were indicted on first-degree Criminal Sexual Act, first-degree Sexual Abuse, thirddegree Criminal Sexual Act, and second-degree Sexual Abuse. They were arraigned before Bronx Supreme Court Justice Brenda Rivera and are due back in court on August 6, 2024.

According to the investigation, on July 9, 2023, between approximately 12:53 a.m. and 7:30 a.m., the defendants allegedly were drinking alcohol with the victim at a Bronx nightspot and she became heavily intoxicated. The victim was seen on surveillance video unable to stand or walk on her own and being held up by Garcia and Alcantara-Santiago by her arms, and being carried by the defendants into a building. The following morning, the victim went to a local hospital. Medical testing identified DNA contributions from both men on the victim.

District Attorney Clark thanked the NYPD Internal Affairs Bureau and the NYPD Bronx Special Victims Squad for their work on the case.

An indictment is an accusatory instrument and not proof of a defendant’s guilt.

Attorney General James’ Office of Special Investigation Releases Report on Death of Osiris Mercado

 

New York Attorney General Letitia James’ Office of Special Investigation (OSI) released its report on the death of Osiris Mercado, who died on September 23, 2021 after an encounter with members of the Suffolk County Police Department (SCPD). Following a thorough investigation that involved interviews with involved police officers and other witnesses, civilian cell phone video, and comprehensive legal analysis, OSI concluded that the evidence does not indicate that the officers committed a crime and therefore charges could not be pursued in this matter. 

On the evening of September 23, 2021, SCPD officers responded to a 911 call reporting a man bleeding heavily outside a house on Superior Street in Port Jefferson Station, Suffolk County. When the first officer arrived at the scene, she found Mr. Mercado on the ground bleeding from his head. She attempted to engage Mr. Mercado, but he did not seem to hear her, and instead jumped up and ran in the street while screaming incoherently. The officer called for backup, and as additional officers arrived, they managed to guide Mr. Mercado off of the street and back to the grass, where they attempted to restrain Mr. Mercado so that the paramedics could assess his condition and render aid. 

After the officers brought Mr. Mercado to the ground, they struggled to handcuff him because he was flailing his arms. After he was fully handcuffed, Mr. Mercado became unresponsive and the officers described him as being “lifeless.” Paramedics administered Narcan and placed Mr. Mercado in the ambulance. During the ride to the hospital, Mr. Mercado went into cardiac arrest. Mr. Mercado was declared dead at the hospital.

Under federal and New York state law, police officers have the authority to detain a person who is an immediate danger to themselves or others, or when a person’s behavior demonstrates a need for urgent action. In this case, officers had a reasonable basis to restrain Mr. Mercado because he was behaving irrationally, appeared to be experiencing a medical emergency, and was a danger to himself and others. Under these circumstances, based on the law and the evidence, a prosecutor would not be able to prove beyond a reasonable doubt that the officers caused Mr. Mercado’s death or committed a crime, and OSI determined that criminal charges could not be pursued in this matter.

Former San Diego Sheriff’s Deputy Charged with Civil Rights Violation for Fatally Shooting Unarmed Man

 

A federal grand jury in San Diego returned a two-count indictment charging former San Diego Sheriff’s Deputy Aaron Russell for fatally shooting Nicholas Bils on May 1, 2020.  Russell is charged with depriving Bils of his right to be free from officers using excessive force and with discharging a firearm in relation to a crime of violence.  

The indictment alleges that Russell, while acting as a San Diego Sheriff’s Deputy, shot Bils after Bils had escaped from a California Parks vehicle and was running away from law enforcement officers who were chasing him. Without warning Bils or his fellow officers, Russell fired five shots at Bils, who was unarmed, as he ran away. One or more of the shots hit Bils in the back and caused his death. None of the other officers on scene fired a shot or drew a weapon.

If convicted, Russell faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Tara McGrath for the Southern District of California and Special Agent in Charge Stacey Moy of the FBI San Diego Field Office made the announcement.

Assistant U.S. Attorney C. Seth Askins for the Southern District of California, Special Litigation Counsel Michael J. Songer and Trial Attorney Lia Rettammel of the Civil Rights Division’s Criminal Section are prosecuting the case.  

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

Singapore Resident Sentenced To 57 Months In Prison For Soliciting Millions Of Dollars In Pre-IPO Stock Scheme

 

Damian Williams, the United States Attorney for the Southern District of New York, announced that SHAMOON RAFIQ, a/k/a “Shamoon Omer Rafiq,” a/k/a “Omar Rafiq,” a/k/a “Omer Rafiq,” was sentenced today by U.S. District Judge Victor Marrero to 57 months in prison for engaging in a scheme in which RAFIQ solicited millions of dollars of investors’ money by falsely representing that he was offering investments in shares of stock in privately held companies that had not yet conducted an initial public offering (“pre-IPO stock”), even though he did not actually have those shares to offer, by impersonating senior officials of a reputable family office investment firm and by engaging in other acts of deception.  RAFIQ previously pled guilty to conspiracy to commit securities fraud and wire fraud before U.S. Magistrate Judge Sarah L. Cave. 

U.S. Attorney Damian Williams said: “This sentence demonstrates that stiff penalties await anyone who seeks to cheat and swindle American investors, and that running an investment scheme from halfway around the world will not shield fraudsters from being pursued by this Office and our law enforcement partners.” 

According to the charging documents and other filings and statements made in court:

RAFIQ was born in the Netherlands and resided in Singapore.  RAFIQ was convicted in 2004 in the U.S. District Court for the Eastern District of New York for carrying out a wire fraud scheme in which he purported to sell pre-IPO stock in a privately held company that had not yet conducted its initial public offering when, in fact, RAFIQ did not own or have access to such stock.  After serving a 41-month federal prison sentence for that crime, RAFIQ was deported from the U.S. and eventually relocated to Singapore.

In or about 2020, RAFIQ engaged in a new scheme from Singapore to defraud victims into paying him millions of dollars for alleged investment interests in various pre-IPO stocks that he did not actually own or control.

In connection with his new fraud scheme, RAFIQ fraudulently impersonated two senior officials (“Victim-1” and “Victim-2”) of a prominent family office investment firm (“FamCap”) that manages and invests assets of members of a prominent billionaire family.  In July 2020, RAFIQ caused the creation of a fake FamCap website, which automatically routed users to the official FamCap website, and the creation of fake FamCap email addresses for Victim-1 and Victim-2 that closely resemble, but are slightly different from, their genuine FamCap email addresses.  The fake FamCap website and email addresses for Victim-1 and Victim-2 were created without their or FamCap’s consent.  The fake email addresses also included the names of Victim-1 and Victim-2 without their authorization.

In July 2020, RAFIQ began soliciting millions of dollars from investment firms in New York and elsewhere based on false claims that in exchange for their funds, he would sell them investment interests in a purported special purpose investment vehicle called “[Fam] Capital Technology Fund, LLC” that was supposedly managed by FamCap and allegedly owned pre-IPO stock in Airbnb, Inc., among other companies.  For example, as part of this fraudulent scheme, RAFIQ deceived an investment firm based in New York, New York (the “New York Firm”), and one of the firm’s foreign institutional clients (the “Foreign Client”) into making agreements under which the Foreign Client wired about $9 million in mid-August 2020 into an escrow account in New York for anticipated release to a bank account in Singapore to pay RAFIQ for his purported sale of investment interests in the LLC.

In soliciting this $9 million investment, RAFIQ made a variety of false representations, including the following:

• RAFIQ falsely claimed that the LLC was managed by FamCap.  In fact, the LLC never existed.

• RAFIQ falsely claimed that the LLC owned pre-IPO shares of Airbnb, Inc.  In fact, the LLC did not own and could not have owned such stock because the LLC never existed.

• RAFIQ falsely claimed that Victim-1 and Victim-2 had approved of his sale of his alleged interests in the LLC.  In fact, Victim-1 and Victim-2 do not know RAFIQ and have confirmed that FamCap was never involved in or approved of any such transaction.

During and to further the goals of this fraudulent scheme, RAFIQ also caused the creation and transmission of emails from the fake FamCap email addresses, fake contracts, and deal documents purporting to have been signed by Victim-1 or Victim-2 on behalf of FamCap that neither of them approved.  In August 2020, during the course of email communications with the New York Firm and Foreign Client concerning RAFIQ’s alleged sale to them of his purported interests in the alleged FamCap-managed LLC that supposedly held Airbnb, Inc. shares, RAFIQ copied into the email chain the fake FamCap email addresses to create the false impression that FamCap was involved in and approved of the alleged transaction.

Also pursuant to the fraudulent scheme, RAFIQ solicited over $1 million from an investment group located in California (the “California Group”) in late 2020 by yet again purporting to be a representative of FamCap offering pre-IPO stock for sale.  As a result, the California Group wired RAFIQ a total of approximately $1,002,615 in November and December 2020.

In addition to his prison term, RAFIQ, 50, a resident of Singapore and a citizen of the Netherlands, was ordered to pay restitution and forfeiture in the amount of $1,002,615.

Mr. Williams praised the investigative work of Homeland Security Investigations, the U.S. Postal Inspection Service, the New York City Police Department, and the New York City Sheriff’s Office, and he also thanked the U.S. Securities and Exchange Commission, which conducted a separate parallel investigation, for its assistance, and the Department of Justice’s Office of International Affairs, Interpol, Singapore Police Force, and the Attorney-General’s Chambers of Singapore for their assistance in the extradition of the defendant.