Bronx Young Democrats to Organize Days of Action for Bill de Blasio

  At their Debate Watch Party last night at the Bronx Beer Hall, the Bronx Young Democrats announced that they have organized three Days of Action to help elect Bill de Blasio as the next Mayor of New York City.  With a week remaining until Election Day it is important to identify supporters of Bill de Blasio and get them out to the polls next Tuesday.

“This is truly a historic election for our organization.  For the first time in over 20 years we are going to elect a Democrat to City Hall,” said John Zaccaro, President of the Bronx Young Democrats.  He added, “Over the next week we are going to help Bill de Blasio win with a huge mandate so he can go to City Hall and implement his progressive agenda that will ensure that every New Yorker has a fair shot.”

The three days of action include a phone banking operation this evening, Thursday October 31^st, canvassing and visibility on Saturday November 2^nd and a GOTV phone bank on Monday night, November 4^th.  The dates, locations and times of the Days of Action are below:

Thursday October 31^st, 6:00-8:30pm at the Benjamin Franklin Reform Democratic Club, 304 West 231^st Street Bronx, NY 10463

Saturday November 2^nd, 1:00-5:00pm at Ritchie Torres HQ, 609 East 188^th Street Bronx, NY 10458

Monday November 4^th, 6:00-9:00pm at Bronx Democratic County Committee HQ, 1640 Eastchester Road Bronx, NY 10461

Some photos from the Debate Watch Party.

 BYD Councilman Andy King rallies the troops as he sees better days ahead for the Bronx when Democratic candidate Bill deBlasio is elected Mayor on Tuesday November 5th. BYD president John Zacarro Jr. (center) and Organizer Daniel Johnson (right).

 BYD Daniel Johnson of Assemblyman Jeffrey Dinowitz's office gets his say in.

Senator Ruben Diaz & Assemblyman Luis Sepulveda will Introduce Legislation to Protect Macy's Shoppers

  New York State Senator Rev Ruben Diaz (D-Bronx) and Assemblyman Luis Sepulveda (D-Bronx) have introduced legislation SB ____ to “amend the general obligations law, in relation to requiring mercantile establishments to cease collections upon a court order finding of not guilty of larceny in mercantile establishments.” This legislation is in response to the growing number of news stories about people who have shopped at Macy’s and other stores and have been erroneously charged with shoplifting.

Senator Rev Diaz stated: “This legislation is intended to protect consumers – especially Black and Hispanic men and women who shop at Macy’s or elsewhere – and who are not guilty of any criminal activity and do not deserve to be fined by the stores for crimes they did not commit.”

Assemblyman Sepulveda stated: “Our city is known for its rich diversity of persons of varying socio-economic backgrounds. Everyone has the right to purchase goods without fearing that they will be suspected of shoplifting. New York State Senator Ruben Diaz and I are proposing legislation that would require merchants to cease attempts to collect fines against a customer falsely accused of shoplifting. It is shameful that innocent people are blacklisted. We, as legislators, will continue to fight against these inherently unfair and unjust practices.”

NEWS From City Comptroller John Liu

LIU TO DEPT. OF HOMELESS SERVICES: DUMP AGUILA AND GET YOUR ACT TOGETHER

New Audit Highlights Continued Failures of Agency and of Shelter Operator

  
Comptroller John C. Liu called on the Department of Homeless Services (DHS) to discontinue its use of shelter provider Aguila Inc. in light of repeated failures to account for millions of dollars spent and the continued placement of people in shelters that are unsafe or unclean. He also called on City Hall to drop its lawsuit against the Comptroller’s office with regards to proposed contracts with Aguila.

“Despite their claims to the contrary, Aguila’s appalling record has not improved and DHS continues to turn a blind eye. At this point, DHS should just dump Aguila as a shelter operator, and City Hall should direct its resources towards fixing DHS rather than litigating against my office,” Comptroller Liu said. “Continued dysfunction is a grave disservice to the homeless in need as well as communities whose concerns and input have been bypassed.”

A new audit underscores a fraught history with DHS and Aguila. In a November 2011 audit, Liu called on DHS to recoup $1.4 million from Aguila and examine another $9 million in bills to see if taxpayers were entitled to recover more.

Today’s audit found that DHS has recouped only $558,412, and didn’t even investigate more than half of the total $10.4 million identified by the earlier audit as improper or insufficiently supported payments.

Additionally, the audit found the following deficiencies with DHS operations:

·         The agency continued to do business without written agreements, in violation of the City Charter;

·         DHS did not adequately explain how rates the City paid for different shelters were set;

·         DHS did not appropriately follow up after more than 80 percent of units subject to spot inspections failed.

The audit also found that, as of June 2013, Aguila facilities owed the City $605,439 in unpaid water and sewer charges.

In light of the multitude of problems, rather than reining in Aguila, DHS rewarded it instead. DHS payments for Aguila-operated shelters surged from $46.3 million in Fiscal Year 2011 to $57.1 million in Fiscal Year 2013.

The new audit made 18 new recommendations. They include:

·         Periodically review Aguila per diem rates, allocation plans, and budget line items to ensure accuracy, reasonableness, and appropriateness, and ensure items are adequately supported.

·         Further investigate and recoup the balance of funds as identified in the previous audit.

·         Enter into written contracts with Aguila for directly-operated facilities that, at minimum, specify or restrict how funds may be expended.

·         Immediately eliminate the practice of placing clients in facilities with hazardous and unsanitary conditions.

·         Conduct surprise inspections and vary the inspectors.

·         Ensure that all Aguila facilities pay their City fines and water and sewer charges.

Download Letter to City Hall

Background:

November 2011, Liu audit calls on DHS to recoup money from Aguila: https://comptroller.nyc.gov/wp-content/uploads/documents/FK10_130A.pdf

May 2013, Liu proposes vouchers to help homeless families: http://comptroller.nyc.gov/wp-content/uploads/2013/07/20130509_NYC_RentalSubsidyProgram_v12.pdf

May 2013, Liu issues report on how Mayor Bloomberg’s shelter policies are failing communities and the homeless: http://comptroller.nyc.gov/wp-content/uploads/documents/20130509_NYC_ShelterSiteReport_v24_May.pdf

June 2013, the State Supreme Court, Bronx County rules in favor of the Comptroller’s office in a suit challenging the Mayor’s practice of establishing shelters and paying for those services without going through required public procurement processes. Liu statement: http://comptroller.nyc.gov/newsroom/liu-on-westchester-square-shelter-suit/

July 2013, Liu rejects Aguila shelter contracts in the South Bronx and West 95th Street in Manhattan: http://comptroller.nyc.gov/newsroom/liu-rejects-aguila-shelter-contracts/

LIU ISSUES CITY’S COMPREHENSIVE ANNUAL
FINANCIAL REPORT FOR FY 2013

  City Comptroller John C. Liu today released the Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2013. The report, which provides a detailed look at the City’s finances, shows that for the 33rd consecutive year New York City completed its fiscal year with a General Fund surplus, as determined by the Generally Accepted Accounting Principles (GAAP).

“Economic growth improved in Fiscal Year 2013 compared with the previous year despite the strains of Superstorm Sandy,” Comptroller Liu said. “Unemployment edged downward and the City’s workforce saw healthy wage growth for the first time since the financial crisis. But the City must remain vigilant against growing budget gaps, the continuing cost impact of Sandy recovery, and potential risks from the dysfunction in Washington as exemplified by the recent shutdown.”

The CAFR shows the General Fund had revenues and other financial sources in Fiscal Year 2013 totaling $71.029 billion and expenditures and other financing uses of $71.024 billion, resulting in a surplus of $5 million.

It also shows that as of June 2013, $1.7 billion had been spent on the Sandy recovery, and the City continues to incur costs associated with the storm.

Among other important economic findings, the report contains updates on New York City’s finances, including:

·         The City Pension Funds paid benefits totaling $12.0 billion during FY 2013. As of June 30, 2013, the City pension funds had an aggregate value of $137.4 billion, an increase of $15.3 billion from the June 30, 2012 value of $122.1 billion.

·         The Comptroller’s Bureau of Audit issued 84 audits and special reports in FY 2013 identifying approximately $184 million in actual and potential revenues and savings. Reviews of claims filed against the City identified another $15.7 million in cost avoidance.

·         In FY 2013, the City paid $562.4 million in settlements and judgments (tort and non-tort).

·         The City and its blended component units issued $10.15 billion in long-term bonds in FY 2013 to finance the City’s capital needs and refinance outstanding bonds for interest savings. In addition, the New York City Municipal Water Finance Authority issued $2.30 billion in long-term bonds for capital and refinancing purposes. As of June 30, 2013, the City’s outstanding General Obligation debt totaled $41.59 billion, consisting of $33.93 billion in fixed rate bonds and $7.66 billion in variable rate bonds.

·         From June 2012 through June 2013, the City added more than 76,400 private-sector jobs. Although the number of new jobs created was lower than that of the previous 12 months, the gain still represented a solid 2.3 percent increase in the City’s jobs base. Overall, the city’s economy grew by an estimated 1.8 percent in FY 2013, slightly faster than the 1.3 percent recorded in the previous fiscal year.

·         The City’s unemployment rate fell to 8.9 percent in FY 2013 from 9.3 percent the previous year. The average weekly earnings of private-sector workers in New York City increased by 4.9 percent in the fiscal year, twice the national increase. The combination of rising employment and higher earnings produced an estimated 6.3 percent increase in year-over-year income tax withholdings.

The full CAFR report is posted here: http://on.nyc.gov/Hu1DRZ

Assemblyman Dinowitz Calls on MTA to Reconsider Ending Access-A-Ride Reimbursements

 

   In a letter dated October 31, 2013 to MTA Chairman Thomas Prendergast, Assemblyman Jeffrey Dinowitz called on the MTA to reconsider the newly instituted policy change that will end reimbursement for eligible riders who utilize taxi or car services for intra-borough transit. The move continues the practice of slashing the Access-A-Ride budget, hurting many disabled seniors by making their travel more arduous. A copy of the official letter to Chairman Prendergast is attached, and the text of the letter can be found below:

Dear Chairman Prendergast:

It has recently been brought to my attention by several constituents that there has been a policy change that will affect Access-A-Ride service throughout the city for those who take advantage of the taxi/car service authorization and reimbursement. It appears that Access-A-Ride will no longer reimburse cab users for intra-borough rides, but will continue to honor reimbursements for inter-borough cab rides for authorized riders. I believe this is a change that will have a tangible and lasting negative impact on many senior citizens throughout the city.

I understand that Access-A-Ride will continue to service eligible seniors with their regular paratransit fleet, although recent cuts to that program have already made travel a major chore for many seniors. But it’s also worth noting that there are inherent advantages for seniors to the taxi reimbursement service, including a less ridged travel schedule and no threat of losing service if their appointments run late and they miss pick-up. It’s interesting to me that a senior can lose Access-A-Ride membership for being late a couple of times, yet Access-A-Ride is constantly late to their scheduled pick-ups, sometimes missing the mark by hours, in many cases leaving seniors stranded outside. In those situations, seniors who are stranded have little recourse, and this new policy change will only make that situation worse for them.  

  Cuts to Access-A-Ride services have become the norm in New York City. The program, which helps thousands of disabled seniors attend crucial doctor’s appointments and maintain normal lives, has proven to be an invaluable resource for so many, and yet it always seems to be this most vulnerable population that bears the brunt of budget cuts. Ending taxi reimbursement for intra-borough cab rides is no exception. Considering intra-borough rides would theoretically be shorter and thus cost less than inter-borough rides, on its face this plan seems to not only make lives difficult for disabled seniors, it also doesn’t seem to make as much economic sense as it otherwise could. Regardless of the economic impact, maintaining this service for certain seniors is the right thing to do, and I think we owe it to them to reconsider this change.

 Jeffrey Dinowitz.

 

Free Legal Forum, From Assemblyman Marcos Crespo 85th A.D.

 

I would like to invite you to an open legal forum which I am hosting in my office with The Legal Aid Society. We will be discussing topics such as Civil, Criminal and Juvenile Rights.

The event will be held in my District Office (located at 1163 Manor Avenue Bronx, NY 10472) on Thursday, November 7, 2013 from 4pm-7pm.

Feel free to bring a relative, neighbor or friend(s). Please RSVP with Matthew Shuffler my Office Manager either via email @ shufflm@assembly.state.ny.us or via phone @ 718-893-0202.

Hope to see you here!

Respectfully,

Marcos A. Crespo

Member of Assembly

85th District

Wave Hill Events November 15–November 22

 

Since this week may be your last for a deep, pre-Thanksgiving exhale, I recommend setting aside Sunday, November 17, for a visit to Wave Hill. Start your morning with yoga or meditation, then stay for brunch in our handsomely restored Café, and, following that, a free cooking demonstration that should be “pearfectly” wonderful. Round it all off with a leisurely, guided garden walk and a browse in The Shop at Wave Hill. Since our Harvest Brunch that Sunday will be the first since Wave Hill House reopened this summer after a two-year renovation—and Sunday Brunches won’t become a regular feature in The Café until early Spring—make your reservations soon!

And if Sunday doesn’t work, keep in mind that The Café is offering Afternoon Tea every Tuesday through Friday afternoon, starting last week. I’ve attached a snapshot of one of the very first. Elegant and relaxing!

SAT, NOVEMBER 16    TAI CHI CHUAN

Quiet like a mountain, moving like a river, Tai Chi is a sequence of gentle movements based on images found in nature. In this beginner-level class, Irving Yee, a member of the William CC Chen Tai Chi School, introduces students to the internal martial arts and promotes an awareness of its benefits. Sessions are held outdoors only and are weather dependent. Call 718.549.3200 x245 by 8AM on the day of the class for program updates. Session fee: $23/Wave Hill Member $15. Registration opens onsite at 9:30AM.

MEET AT PERKINS VISITOR CENTER, 10‒11AM

SAT, NOVEMBER 16    FAMILY ART PROJECT: DANCES WITH LEAVES

Fashion a festive crown from fall leaves and leaf rubbings, toss leaves in the wind and walk through leaf piles. Make artful arrangements of leaves on the lawn and collage leaf designs to carry home. Free, and admission to the grounds is free until noon.

WAVE HILL HOUSE, 10AM‒1PM

SAT, NOVEMBER 16    ART AND NATURE PORTFOLIO REVIEW  FILLED

Artists have the opportunity to meet with a curator, gallerist or critic for a 20-minute session, and get feedback on their work or presentation materials. Guest reviewers to be announced. Review fee: $25 per artist to meet with one reviewer. Registration required online at www.wavehill.org/arts. Call 718.549.3200 x398 with questions.

WAVE HILL HOUSE, 10:30AM–4:30PM

SAT, NOVEMBER 16    NO GALLERY TOUR

Gallery tours resume Tuesday, November 19.

SUN, NOVEMBER 17    FAMILY ART PROJECT: DANCES WITH LEAVES

Fashion a festive crown from fall leaves and leaf rubbings, toss leaves in the wind and walk through leaf piles. Make artful arrangements of leaves on the lawn and collage leaf designs to carry home. Free with admission to the grounds.

WAVE HILL HOUSE, 10AM‒1PM

SUN, NOVEMBER 17    HATHA YOGA

Find refuge from city life by practicing seasonal yoga. Decrease stress and increase your energy by focusing on your posture, your breath and your mind/body/spirit. Classes are led by Neem Dewji, certified in Hatha and Therapeutic Yoga from The Yoga for Health Foundation, England, and The Integral Yoga Institute, NYC. All levels welcome. Sessions are held outdoors only and are weather dependent. Call 718.549.3200 x245 by 8AM on the day of the class for program updates. Session fee: $23/Wave Hill Member $15. Registration opens onsite at 9:30AM.

MEET AT PERKINS VISITOR CENTER, 10‒11:15AM

SUN, NOVEMBER 17    MEDITATION

This fall, take a moment to release stress and reconnect with your inner self while practicing meditation. Each session includes instruction in simple techniques followed by 20 to 30 minutes of meditation. Led by Yoga for Bliss director Neem Dewji and other qualified instructors. All levels welcome. Session fee: $23/Wave Hill Member $15. Registration opens onsite at 9:30AM.
MEET AT PERKINS VISITOR CENTER, 11:30AM‒12:45PM

SUN, NOVEMBER 17    HARVEST BRUNCH IN THE WAVE HILL CAFÉ

Now that Wave Hill House, home of our Café, is open after a two-year renovation, Great Performances, our exclusive caterer, is ready to begin offering Sunday brunches. They won’t be a regular feature of Sundays at Wave Hill for a few months, so make sure to make your reservations for this one. And then stay for a cooking demonstration afterwards!  For menus, pricing and reservations, check out our website at www.wavehill.org.

WAVE HILL HOUSE, 11AM–1PM

SUN, NOVEMBER 17    COOKING DEMO: A “PEARFECT” HARVEST

Move over, apples! Pears are bit unexpected but just as versatile in sweet and savory fall recipes. Watch and taste as a chef from Great Performances demonstrates delectable dishes using fresh and cooked pears. Want to grow your own? Horticultural Interpreter Charles Day explains some of the finer points of growing this luscious fruit. Free with admission to the grounds.

WAVE HILL HOUSE, 3PM

SUN, NOVEMBER 17    GARDEN HIGHLIGHTS WALK

Join us for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free all weekend thanks to the generous support of Target.

MEET AT PERKINS VISITOR CENTER, 2PM

MON, NOVEMBER 18

Closed to the public.

TUE, NOVEMBER 19    GARDEN HIGHLIGHTS WALK

Join us for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

TUE, NOVEMBER 19    GALLERY TOUR

Join a curatorial fellow for a tour of Wave Hill’s fall exhibition, Tandem Pursuits: Armor & Ichthyology, which celebrates the interests of former Wave Hill House resident Bashford Dean. Dean was Curator of Arms and Armor at the Metropolitan Museum of Art and Curator of Fish at the American Museum of Natural History. The intersection of his interest in both fish and armor provides the opportunity to bring together a remarkable group of contemporary art that explores concepts of adaptation, pattern, and protection. The tour also includes Alan Ruiz’s Sunroom Project Space installation, an architectural intervention that complicates the distinction between interior and exterior spaces. Tours take place Tuesdays and Saturdays at 2PM. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM—4:30PM. Closes 5:30PM, March 15—October 31.  

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6—18. Free Saturday mornings until noon. Free all day on Tuesdays in November. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 3o minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the 242^nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

Shop & Frisk Rally Friday 11/1/13

  ASSEMBLYMAN SEPULVEDA WILL HOLD A RALLY AGAINST SHOP AND FRISK


With recent media attention to the issue of “Shop and Frisk,” it is imperative that we address this issue as a community to dissuade these discriminatory practices from occurring in the future.

In our community we will not tolerate any practices that target men and women based on the color of their skin. We will join on Friday to send a strong message to Macy’s and other businesses that we will be vigilant and proactive against Shop and Frisk.

I will be holding a rally in front of the Macy’s in Parkchester at 5:30pm to protest the “Shop and Frisk” policies that large department stores use to target our people. Please join in the effort to prevent these stores from using these tactics. 

Also attending the rally will be Senator Ruben Diaz, Assembly Members Carl Heastie and Marcos Crespo, Councilwoman Maria del Carmen Arroyo, District Leader Julia Rodriguez, State Committeeman William Rivera, Pastor Hiram Ratliff of New Tabernacle Church, and Reverend/Doctor Laura Sinclair and Reverend Felicia Smith of Parkchester Baptist Church. Other elected officials have also been invited.

If you have questions concerning this matter, please contact the district office at (718) 931 2620.


OFFICE OF THE HON. LUIS SEPÚLVEDA

District Office: 1973 Westchester Ave. Bronx, NY 10462

Political Consultant Is Charged In Federal Court With Defrauding The New York Democratic Senate Campaign Committee And Other Frauds

This is from United States Attorney Prett Baharara

Complaint Alleges Political Consultant Received Fraud Proceeds as Benefit from State Senator 

 

   Preet Bharara, United States Attorney for the Southern District of New York, and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of a nine-count Complaint charging New York political consultant MELVIN LOWE with fraud and tax violations. The Complaint alleges that LOWE defrauded the New York Democratic Senate Campaign Committee ("DSCC") and its contributors of $100,000 by causing a vendor to submit a false invoice for printing services to the DSCC. According to the Complaint, LOWE instructed the vendor to send $75,000 of the proceeds to LOWE and $20,000 to a political consultant and to keep $5,000 for himself. The Complaint further alleges that the $20,000 payment came days after a State Senator promised to pay a benefit to the consultant for assistance the consultant had previously provided to the Senator. In addition to this fraud charge, the Complaint charges LOWE with income tax violations for his failure to report more than $2 million in consulting income. He is also charged with causing his bank to make a false statement to his mortgage lender, and also for defrauding a Yonkers resident of $66,000. LOWE was arrested this morning and will be presented later today before United States Magistrate Judge Paul E. Davison in White Plains federal court.

Manhattan U.S. Attorney Preet Bharara stated: “Today’s Complaint alleges that New York's culture of political corruption extends beyond elected officials to the relatively unknown professional political insiders who work behind the scenes to carry out corrupt schemes. Our investigation will continue and we will continue bringing to justice every corrupt official we find, as well as those who allegedly execute their unlawful plots."

IRS-CI Special Agent-in-Charge Toni Weirauch stated: “Elected politicians and others involved in the political process, such as political consultants and insiders, must comply with the same laws as the rest of the American public. IRS-Criminal Investigation investigates tax crimes and other financial crimes to ensure that those who are involved in making the rules, directly or indirectly, are held accountable when they do not follow them.”

According to the allegations in the Complaint unsealed today in White Plains federal court:

Fraud on the Democratic Senate Campaign Committee

In June 2010, MELVIN LOWE, a political consultant who had been retained by the DSCC, caused a New Jersey based political consulting firm (the "Vendor") to submit to the DSCC a false invoice for printing services in the total amount of $100,000. LOWE told a representative of the Vendor to send a total of $75,000 to a bank account held by one of LOWE's companies, $20,000 to another New York political consultant (the "Consultant") and to keep $5,000 for himself. The Complaint alleges further that LOWE used the $75,000 he received to pay for the installation of a pool and other renovations at his second home in Georgia and to give $5,000 to a Manhattan community board member.

The Complaint charges that the Consultant received the $20,000 wire transfer from the Vendor several days after a State Senator, identified as "Senator #1," promised the Consultant a benefit for assistance that the Consultant previously had provided to the Senator. The Consultant, who is further described as a former staff member to elected officials in New York City, did not know the Vendor, had done no work for the Vendor and was not owed any money by the DSCC. The Complaint alleges that days after the Senator promised the Consultant a benefit, the Consultant learned of the $20,000 deposit into his bank account in a telephone call from LOWE.

Tax Violations

The Complaint also charges LOWE with three counts of subscribing to false tax returns for each of the years 2007 through 2009 and three counts of failing to file tax returns for each of the years 2010 through 2012. In total, LOWE is charged with failing to report more than $2 million in income from consulting services over a period of six years.

False Statement in Connection with Mortgage Loan Application

The Complaint charges further that LOWE caused an employee of Commerce Bank to make a false statement to LOWE's mortgage lender regarding the balance of LOWE's checking account at Commerce Bank. In 2007, LOWE obtained a mortgage loan from Premium Capital in the principal amount of approximately $225,000 that was secured by his second home in Georgia. As part of the loan application process, LOWE signed a form in which he represented that he had more than $80,000 in his checking account at Commerce Bank and authorized Commerce Bank to confirm that balance, as well as the average balance in the account over the previous two months, to Premium Capital. LOWE then asked an Assistant Manager at his local Commerce Bank branch to confirm that he had more than $80,000 in his checking account. The Assistant Manager did so, despite the fact that LOWE had less than $2,200 in that account at that time. The Complaint alleges that LOWE's fraudulently inflated checking account balance was a material misstatement in that it allowed LOWE to appear to have a positive net worth when, in fact, LOWE had a negative net worth at the time he closed on his mortgage loan. LOWE's mortgage loan balance remains above $225,000 today and the loan is now in foreclosure.

Fraud on Yonkers Resident

The Complaint alleges that LOWE also defrauded a Yonkers resident who is identified as "John Doe," of $66,000. LOWE told John Doe that he needed $66,000 in connection with his purchase of his second home in Georgia and that he would repay the loan within a few days. When John Doe asked LOWE to repay the loan, LOWE gave John Doe a check that was returned due to insufficient funds. Thereafter, LOWE promised to repay the loan at various times but failed to do so. He told John Doe on multiple occasions that he did not have the money to repay the loan when he, in fact, did have the money, the Complaint alleges.

*                      *                      *

LOWE, 52, of New York City, faces upon conviction a maximum sentence of 20 years' imprisonment on the count charging wire fraud in connection with the scheme to defraud the DSCC; a maximum sentence of 30 years' imprisonment on the count charging him with causing an employee of a federally insured bank to make a false report; a maximum of three years' imprisonment on each of the three counts charging him with subscribing to false tax returns; a maximum of one year's imprisonment on each of the three counts charging him with failure to file tax returns; and a maximum of 20 years' imprisonment on the count charging wire fraud in connection with the scheme to defraud the Yonkers resident.

Mr. Bharara praised the investigative work of IRS-CI and the investigators from the United States Attorney's Office for the Southern District of New York.

This prosecution is being handled by the Office's White Plains Division. Assistant U.S. Attorneys Perry A. Carbone and James McMahon are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.