Wednesday, July 3, 2024
Sweepstakes Operators Plead Guilty to Bank Secrecy Act Violations
Two Missouri men pleaded guilty yesterday to conspiring with bankers to willfully fail to implement appropriate anti-money laundering (AML) controls at a Missouri bank, as required by the Bank Secrecy Act (BSA).
Kevin Brandes, 60, and William Graham, 56, both residents of Kansas City, Missouri, owned and operated multiple sweepstakes businesses and held accounts for those businesses at the Missouri bank. According to court documents, from 2013 to 2019, Brandes and Graham abetted bank officials in failing to implement key components of the bank’s AML program.
Under the BSA and its implementing regulations, the bank was required to file currency transaction reports (CTR) with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) for any transaction in currency of more than $10,000. In 2017, at the request of bank officials, Brandes and Graham signed FinCEN CTR Exemption Review Forms that classified their companies as “direct mail advertising” businesses. After receiving the signed exemption forms, the bank failed to file CTRs with FinCEN on transactions involving Brandes’ and Graham’s businesses. Additionally, Brandes’ and Graham’s companies were deemed “high risk” and subject to heightened monitoring under the bank’s policies and procedures. Brandes and Graham understood that by signing the CTR exemption forms the bank would apply less scrutiny to their companies’ transactions.
Additionally, on or about Oct. 11, 2016, at the direction of two bank officials, Brandes and Graham had an outside attorney sign a legal opinion letter, then sent it to the bank, knowing that it contained false information. Specifically, the letter indicated that one of Brandes’ companies “in over 3 years has not received negative or unwanted legal action by way of regulatory bodies or private suits.” Brandes and Graham knew at the time, however, that this information was false because a state regulatory agency had filed a legal action against the company in question. Brandes and Graham both believed this letter would help the bank circumvent its requirements under the BSA.
Brandes and Graham each pleaded guilty to one count of conspiracy to cause the willful failure to implement and maintain an appropriate anti-money laundering program. Brandes and Graham will be sentenced at a later date and face maximum penalties of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Two Missouri men pleaded guilty yesterday to conspiring with bankers to willfully fail to implement appropriate anti-money laundering (AML) controls at a Missouri bank, as required by the Bank Secrecy Act (BSA).
Kevin Brandes, 60, and William Graham, 56, both residents of Kansas City, Missouri, owned and operated multiple sweepstakes businesses and held accounts for those businesses at the Missouri bank. According to court documents, from 2013 to 2019, Brandes and Graham abetted bank officials in failing to implement key components of the bank’s AML program.
Under the BSA and its implementing regulations, the bank was required to file currency transaction reports (CTR) with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) for any transaction in currency of more than $10,000. In 2017, at the request of bank officials, Brandes and Graham signed FinCEN CTR Exemption Review Forms that classified their companies as “direct mail advertising” businesses. After receiving the signed exemption forms, the bank failed to file CTRs with FinCEN on transactions involving Brandes’ and Graham’s businesses. Additionally, Brandes’ and Graham’s companies were deemed “high risk” and subject to heightened monitoring under the bank’s policies and procedures. Brandes and Graham understood that by signing the CTR exemption forms the bank would apply less scrutiny to their companies’ transactions.
Additionally, on or about Oct. 11, 2016, at the direction of two bank officials, Brandes and Graham had an outside attorney sign a legal opinion letter, then sent it to the bank, knowing that it contained false information. Specifically, the letter indicated that one of Brandes’ companies “in over 3 years has not received negative or unwanted legal action by way of regulatory bodies or private suits.” Brandes and Graham knew at the time, however, that this information was false because a state regulatory agency had filed a legal action against the company in question. Brandes and Graham both believed this letter would help the bank circumvent its requirements under the BSA.
Brandes and Graham each pleaded guilty to one count of conspiracy to cause the willful failure to implement and maintain an appropriate anti-money laundering program. Brandes and Graham will be sentenced at a later date and face maximum penalties of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Special Agent in Charge Justin R. Bundy of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Kansas City Region, Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation (IRS-CI) St. Louis Field Office, and Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division made the announcement.
FDIC-OIG, IRS-CI, and the FBI are investigating the case.
Attorney General James and DEC Secure Up to $497,000 from Queens Scrap Yard for Polluting Community
LSM Auto Parts & Recycling Failed to Clean Up Oil Spills and Other Toxic Chemicals
New York Attorney General Letitia James and Department of Environmental Conservation (DEC) Interim Commissioner Sean Mahar announced a settlement securing full remediation and up to $497,000 in penalties against LSM Auto Parts & Recycling (LSM), BGN Real Estate, and two related companies for releasing dangerous automobile fluids and oil at a vehicle scrap yard in Jamaica, Queens. LSM ignored critical regulations governing the proper disposal of toxic automobile waste and was responsible for significant amounts of oil spillage in the community, contaminating the groundwater and soil in an area near low-income communities and communities of color. LSM and its affiliates will be required to clean up the property under DEC supervision and pay a penalty of $210,000. If the companies do not honor their commitment to clean up the site, the Office of the Attorney General (OAG) and DEC could obtain additional penalties totaling $287,000.
"LSM made an environmental mess, and now they are responsible for cleaning it up,” said Attorney General James. “For too long, LSM ignored basic laws and regulations about handling dangerous chemicals and exposed neighbors to toxic pollutants. Now, LSM will finally clean up their years of pollution and we’re going to make sure they do it right. Thank you to DEC and Interim Commissioner Mahar for their continued partnership in keeping our communities clean and safe for all.”
“LSM Auto Parts allowed harmful fluids from their scrap yard to contaminate groundwater and soil, impacting the environment and putting the health of Queens residents at risk,” said DEC Interim Commissioner Mahar. “DEC will oversee LSM Auto Parts’ cleanup of this facility, and this settlement sends a message to other companies — New York State aggressively prosecutes polluters who flout environmental laws and regulations. DEC worked closely with Attorney General James to secure this settlement and remains committed to holding polluters accountable.”
Attorney General James and DEC filed a lawsuit against LSM in August 2022 for repeatedly polluting the community with oil and other toxic fluids for years. Gas, oil, and antifreeze repeatedly spilled out of the scrap yard and into the street, running down sidewalks and into storm drains. In addition to multiple oil spills, various other toxic automobile fluids pooled in several areas throughout the salvage yard. LSM employees often drained vehicle fluids directly onto the ground instead of into a waste container, which allowed the chemicals to seep into the ground and contaminate the soil and groundwater.
Runoff from dangerous automobile fluids and oil at LSM’s scrapyard in Jamaica, Queens.
The DEC, the New York City Department of Environmental Protection (DEP), the New York City Police Department (NYPD), and the New York City Fire Department (FDNY) have all repeatedly observed these conditions and violations of state laws and regulations that prohibit the release of hazardous fluids from vehicle dismantling operations. DEC contacted LSM in 2019 to alert them to the violations and propose an administrative resolution to the persisting hazards. In late 2021, against the direction of DEC, LSM covered a significant portion of the property with a layer of concrete, delaying both the investigation of the contamination and remediation efforts.
As part of the agreement, LSM and its affiliates will be subject to a court injunction requiring the completion of a comprehensive investigation and cleanup of the scrap yard to be overseen by DEC. LSM will submit a report on the extent of the contamination to DEC. Once approved, LSM will also submit a work plan for the cleanup to DEC, which LSM must implement within 270 days of the plan’s approval. LSM will also pay $210,000 in penalties. If LSM fails to comply with the cleanup plan under DEC supervision, OAG and DEC could obtain additional penalties of up to $287,000.
Attorney General James thanks DEC Region 2, including Regional Attorney Antonia Pereira and Ryan Piper, P.G. of DEC Spill Response and Prevention, for their close collaboration on this matter.
Governor Hochul Announces State Police and Local Law Enforcement to Add Extra Patrols on New York’s Roads During July 4th Holiday
New York State Police and Local Law Enforcement to Target Impaired and Reckless Drivers Through the Holiday Weekend
More Than 35,000 Tickets Issued During 2023 Enforcement
Thruway, Department of Transportation To Suspend Road Work
Governor Kathy Hochul today announced that the New York State Police and local law enforcement agencies will increase patrols to crack down on drunk and drugged driving and other traffic infractions this 4th of July. Law enforcement statewide will conduct sobriety checkpoints and target reckless and aggressive driving to keep New York highways safe during what is considered the busiest travel weekend of the summer.
“State Police and local law enforcement agencies will once again be out on New York’s roadways this holiday weekend making sure they are safe for drivers and passengers,” Governor Hochul said. “We want New Yorkers to have fun this holiday weekend, but we also want them to do so responsibly. We have no tolerance for drivers whose reckless actions endanger the lives of others.”
The campaign, which is funded by the Governor’s Traffic Safety Committee (GTSC), will begin on Wednesday, July 3 at 6:00 p.m. and will run until midnight on Sunday, July 7, 2024.
To help ease travel during the busy holiday weekend, temporary lane closures for road and bridge construction projects on New York State highways will be suspended beginning 6 a.m. on Thursday, July 4 to 6 a.m. on Monday, July 8. Construction related lane closures on select Thruway projects will be suspended beginning at 6 a.m. on Wednesday, July 3.
Motorists should be aware some work may continue behind permanent concrete barriers or for emergency repairs. The construction suspension aligns with New York State’s Drivers First Initiative, which prioritizes the convenience of motorists to minimize traffic congestion and travel delays due to road and bridge work.
Last year, law enforcement issued 35,104 tickets across the state during the July 4 enforcement period, including more than 1,200 tickets for driving while impaired by alcohol or drugs, more than 1,000 for distracted driving, and more than 7,000 speeding tickets. During that time, State Police alone issued 12,991 total tickets, arrested 193 people for DWI and investigated 949 crashes, including five fatalities.
Motorists should follow the state’s Move Over Law, which was expanded in March to require drivers to slow down and move over for all vehicles stopped along the roadway.
Text stops, including park-and-ride facilities, rest stops, service areas and parking areas along state highways support the state's effort to reduce distracted driving. All text stops will remain open, providing locations where drivers can safely and conveniently use their phones and other mobile devices for calling, texting, navigating and accessing mobile apps. Texting while driving is especially dangerous, as it requires motorists to take their eyes off the road, hands off the wheel and mind off driving.
The Thruway Authority reminds motorists that while 18 service areas are open, eight are closed and under construction as part of the $450 million redevelopment project. Fuel services remain open at all locations. Motorists can view the service areas and plan their stops on the Thruway Authority's website and on the free mobile app.
During this enforcement period, drivers can expect to encounter sobriety checkpoints and increased DWI patrols. Law enforcement will also be looking for motorists who are using their phones and other electronic devices while behind the wheel. Drivers should also remember to “move over” for stopped emergency and hazard vehicles stopped on the side of the road when they travel New York roadways.
The New York State Police will be using both marked vehicles and Concealed Identity Traffic Enforcement (CITE) vehicles as part of the operation. The CITE vehicles allow Troopers to more easily identify motorists who are using handheld devices while driving. These vehicles blend in with everyday traffic but are unmistakable as emergency vehicles once the emergency lighting is activated.
The GTSC and the New York State STOP-DWI Foundation remind motorists that their “Have a Plan” mobile app is available for Apple, Android and Windows smartphones. The app enables New Yorkers to locate and call a taxi or rideshare service and program a designated driver list. It also provides information on DWI laws and penalties and provides a way to report a suspected impaired driver.
If you drive drunk or drugged, you not only put your life and the lives of others at risk, but you could also face arrest, jail time, and substantial fines and attorney fees. The average drinking and driving arrest costs up to $10,000.
Arrested drunk and drugged drivers face the loss of their driver’s license, higher insurance rates, and dozens of unanticipated expenses from attorney fees, fines and court costs, car towing and repairs, and lost time at work.
The New York State Police, GTSC and NHTSA recommend these simple tips to prevent impaired driving:
- Plan a safe way home before the fun begins.
- Before drinking, designate a sober driver.
- If you’re impaired, use a taxi, call a sober friend or family member, or use public transportation.
- Use your community’s sober ride program.
- If you suspect a driver is drunk or impaired on the road, don’t hesitate to contact local law enforcement.
If you know someone who is about to drive or ride while impaired, take their keys and help them make other arrangements to get to where they are going safely.
Bronx Borough President Vanessa L. Gibson - Community Resources & Updates
Dear Neighbor,
Thank you for joining us for another week in review.
We are excited to announce the return of our Bronx Summer Concert Series! Our kick-off will be on Saturday, July 6th, at 1 Fordham Plaza, in partnership with the Fordham Night Market. Last year, our residents traveled with us to parks across the borough, and we are excited for the return of this classic series. Join us for a night of live entertainment, local cuisines, and performances!
Sat, 7/6 - Fordham Plaza 4pm - 10pm
(1 Fordham Plaza)
Sun, 7/14 - Orchard Beach
(Section 5)
Sun, 7/21 – Soundview Park
(Morrison & Lafayette Avenues)
Sun, 7/28 – Van Cortlandt Park
(Events Lawn North of Broadway & 242nd Street)
Sat, 8/3 – Fordham Plaza 4pm – 10pm
(Fordham Plaza)
Sun, 8/11 – Bronx Park East
(Bronx Park East & Lydig Avenue)
Sun, 8/18 – St. Mary’s Park
(146th Street & St. Ann’s Avenue)
Sun, 8/25 – Ferry Point Park
(10 Hutchinson River Pkwy)
Sun, 9/1 – Co-Op City
(120 Erskine Place – Section 5 Greenway)
Lastly, as we prepare for the July 4th holiday and to spend time with loved ones, we want to wish you all a safe and healthy holiday.
If you have any questions or concerns, please do not hesitate to contact our office at 718-590-3500 or email us at webmail@bronxbp.nyc.gov.
In partnership,
Bronx Borough President Vanessa L. Gibson
IN THE COMMUNITY
We had an amazing time representing the Bronx and celebrating the end of Pride Month at this year’s NYC Pride Parade! Thank you to everyone who joined us!
A spectacular Bronx Fireworks Extravaganza!
I want to thank the Bronx Economic Development Corporation, the Bronx Tourism Council, our sponsors, our emcee Monica Morales, performers, and everyone who joined us at Orchard Beach!
Happy Caribbean Heritage Month!
Thank you to all our honorees, emcees, performers, and everyone who attended our Annual Caribbean Heritage Month Celebration at the Andrew Freedman Home.
We danced, we ate, and we showcased our Caribbean pride!
A special shout-out to Trinidad and Tobago!
As the greenest borough in the city, we are excited about the addition of Davidson Park to our West Bronx community!
With accessible ramps, spray showers, swings, benches, and other play equipment, there is something for everyone to enjoy.
This was a project we advocated for as part of our Jerome Neighborhood Plan while in the City Council and I want to thank NYC Parks, the NYC Mayor`s Office, Community Board 5, Parks advocates, and everyone else who played a vital role in helping to bring this project to fruition.
UPCOMING EVENTS
