Wakefield Town Hall Meeting by Mayor Bill de Blasio and Councilman Andy King

  It should come as no secret that the town hall meetings by Mayor bill de Blasio have come in council districts where the council member is favorable to the mayors positions, and last night's Wakefield Town Hall meeting was held in Councilman Andy King's district. Councilman King has been a friend to Mayor de Blasio, and it has shown in his district by the placement of a new YMCa to be built in Councilman Kings district. The dream of a new youth and community center was on the minds of residents of the12th council district for many years before Councilman King and Mayor de Blasio elected into office, but it was Councilman King and Mayor de Blasio with help from the new Assembly Speaker Carl Heastie who made the dream happen. 

   Hundreds of residents attended the Town Hall meeting with questions about NYCHA, the MTA, Coop-City, Senior affairs, getting a traffic light installed, education, water bills, and many more. Councilman King went around the room to choose the people who then asked the mayor their question. The mayor brought with him Agency and Department heads who the mayor would bring up to further give the answer when the mayor wanted to make sure the person who asked the question knew just who to see after the Town Hall meeting was over. This Town Hall meeting lasted over two hours, and even longer as the mayor hung around to take photos with many of those who stayed the entire night. Others found the department or agency person to give them more information, or to answer any questions not said at the Town Hall meeting. Photos of the Town Hall meeting are below.

Above - After being introduced by Councilman King, Mayor de Blasio spoke for a few minutes before answering questions from the audience.

Below - The mayor gives an answer on the topic of the MTA.

Above - The mayor brought up Assembly Speaker Carl Heastie the local assembly member to say a few words. Also on hand were newly elected 36th State Senator Jamaal Bailey, and Bronx District attorney Darcel Clark who also said a few words.

Below - The mayor got real close to the audience when answering some of the questions.

Above - The mayor answers a question, and you can see the agency and department heads or Bronx representatives and Bronx Borough police command in the background to be called upon when needed to answer specific questions that the mayor needed help on. 

Below - The mayor brings up a Deputy Chancellor to answer a specific question about overcrowding in the school district. 

The mayor listens to a question from a young student who wants to know why she can't get a metro card because she has to take three buses to school and home.

MAYOR DE BLASIO, A.G. SCHNEIDERMAN AND GOVERNOR CUOMO ANNOUNCE REVOCATION NOTICES SENT TO OWNERS OF 178 BUILDINGS RECEIVING 421-A BENEFITS

Latest action by joint Real Estate Tax Compliance Program to protect City tenants and taxpayer dollars means owners lose tax benefits retroactively unless they comply within 90 days

   Mayor Bill de Blasio, Attorney General Eric T. Schneiderman and Governor Andrew M. Cuomo today announced that the Department of Housing Preservation and Development (HPD) issued letters notifying owners of 178 residential buildings – with a total of 1,400 rental apartments – that their 421-a tax benefits will be revoked retroactively if they don’t comply with the requirements of the 421-a program, including registering their apartments as rent-regulated.

“Owners wrongfully receiving 421-a are on notice – comply with the law or your tax benefits will be revoked. Since day one, my Administration has made enforcement of rent regulation laws and protecting tenants a priority. With our state and law enforcement partners, we will continue to fight for a reformed 421-a program that better serves New Yorkers,” said Mayor Bill de Blasio.

"We're taking aggressive action to protect rent-regulated tenants from those who seek to cheat the system and deprive hardworking New Yorkers of a safe, affordable place to call home. These latest actions send a strong message – bad actors will be held accountable, these unscrupulous practices will not be tolerated and this Administration, with our local partners, will always work to protect the rights of millions of tenants across New York," said Governor Andrew M. Cuomo.

“The 421-a tax program is a two-way street: landlords who receive these lucrative tax benefits must afford their tenants rent-stabilized leases and protections. But investigations conducted by my office have found that some landlords are flouting these requirements and instead, using the tax break to simply increase their profits,” said Attorney General Eric T. Schneiderman. “We will never hesitate to protect tenants or New York City’s affordable housing stock, which is critical to the economic stability of many families.”

This is the latest action under the Real Estate Tax Compliance Program, a joint initiative of the Attorney General, HPD and the Governor’s Tenant Protection Unit to ensure building owners receiving 421-a benefits are in compliance with the law. 

In September, as part of the enforcement program, HPD instructed the City’s Department of Finance to revoke benefits to 35 other buildings. Those buildings have a total of 244 apartments, and would receive a total value of $4.5 million in tax benefits under 421-a.

The enforcement letters mailed yesterday are focused on 178 cooperative and condominium buildings that receive 421-a benefits but that have been operating as rental buildings without fulfilling the law’s rent-regulation requirements, including having their initial aggregate rent roll approved by HPD and registering their apartments as rent-regulated with DHCR.

In 2014, the agencies began coordinating on a broad tax compliance and enforcement effort. That year, the Attorney General initiated an investigation of multifamily rental buildings that claimed to be operating as cooperatives or condominiums. As a result, in 2015, compliance letters were sent to landlords of 285 buildings targeted by the Attorney General’s investigation, and the Real Estate Tax Compliance Program was established to address ongoing violations of rent stabilization requirements of the 421-a law.

Of the 285 buildings, 35 had their benefits revoked in September, and an additional 178 were sent revocation notices Monday. The rest either proved they are in compliance, or are curing the violations that have been uncovered.

“This is the latest shot across the bow at landlords who don’t play by the rules,” said HPD Commissioner Vicki Been. “Since the start of this Administration, we have sought to crack down on those who would abuse the system, cooperating across levels of government to use all of our enforcement powers to go after owners who try and skirt the law. We will not stop until every property is brought into compliance.” 

New York State Homes and Community Renewal Commissioner James S. Rubin, said, “The law is clear and so are we: arbitrary noncompliance with the rent laws is not an option. These buildings that received these 421-a benefits are subject to rent regulation; the apartments must be registered; owners must provide rent-regulated leases to the tenants; and annual rent increases must be limited to what is prescribed by the New York City Rent Guidelines Board and the Rent Stabilization Law. This collaborative enforcement initiative draws on the full force of both the State and the local municipality to impose penalties. Under the Governor’s leadership the Tenant Protection Unit is poised to address any violations of the rent laws.”

Tenants in rental buildings identified as non-compliant are entitled to the protections of a rent-stabilized lease by their landlords. Even if benefits are revoked, the 421-a law provides that the owners do not get out of the 421-a tax exemption requirements, including rent stabilization. In addition to HPD commencing proceedings to revoke their tax benefits, DHCR’s Tenant Protection Unit can simultaneously pursue additional actions against owners.

The vast majority of buildings identified as non-compliant contain less than 50 units and are located in four boroughs, all but Manhattan and with the majority in Brooklyn and Queens.

The Tenant Protection Unit (TPU), established by Governor Cuomo in 2012, created a new frontier in enforcement of the rent laws. Since its inception, the TPU has used data analytics, metrics, audits and investigations to proactively identify if landlords are complying with the rent regulation statutes. This initiative, along with the creation of the joint Tenant Harassment Prevention Task Force, is one TPU’s many multi-agency enforcement actions that protect tenants from harassment. To date, the Tenant Protection Unit has successfully returned more than 55,000 units to rent regulation.

Tenant Protection Unit staff working on the 421-a initiative include Attorney Thomas Mennecke, Special Assistant Jamie Reyes, TPU Legal Director Vernitta N. Chambers, and Forensics Director Harvey Akerman, under the supervision TPU Bureau Chief Gregory C. Fewer and under the overall supervision of DHCR Deputy Commissioner Richard R. White.

New York State enacted Section 421-a of the Real Property Tax Law in 1971 to incentivize the construction of rent- regulated housing and condominiums in New York City. The law provides a partial exemption from New York City property taxes for the owners of newly-constructed, residential multi-family buildings for at least ten years. Under the Governor’s’ leadership, when the current iteration of 421-a expired, additional affordability options were added to the law as well as fairer wage guidelines for those involved in the construction of these buildings. The current agreement negotiated by the Real Estate Board of New York and the Construction Trades Council of Greater New York, based on the framework supported by Governor Cuomo, provides for more affordability for lower-income families and a fair wage for workers. In 2015, the de Blasio administration worked to significantly reform the 421-a law to increase the amount of affordable housing required of every developer receiving the subsidy, require affordability for lower incomes than ever before, and demand affordable housing everywhere in the City. These reforms were captured in the 2015 state reauthorization of the program. The reauthorization also included a provision that suspended the law unless the Real Estate Board of New York and the construction trade unions agreed on the wages that would be paid to construction workers hired to build the projects receiving the tax exemption. The law remains suspended until the legislature re-enacts the program, or until REBNY and the Trades reach an agreement that does not require legislative action.

Further information on the Real Estate Tax Compliance Program is available on the Attorney General’s website, at http://www.ag.ny.gov/421a-compliance-program.

MAYOR DE BLASIO, COMMISSIONER MENIN AND NEWLY CREATED NONPROFIT “NYC KIDS RISE” ANNOUNCE CHILD SAVINGS ACCOUNT PROGRAM TO HELP PUBLIC SCHOOL STUDENTS SAVE FOR COLLEGE

New York City’s Child Savings Account initiative will provide families the opportunity to create a long-term savings plan for college, making higher education more accessible and achievable for all New York City public school students

  

  Mayor Bill de Blasio, Commissioner Julie Menin, chair of the newly formed public-private partnership NYC Kids RISE, and the Gray Foundation’s Mindy and Jon Gray today announced the launch of NYC’s Child Savings Account (CSA) initiative, a new child savings account program to help thousands of New York City public school children save for college. The first phase will fund accounts for 10,000 children over three years.

“The steep cost of higher education has left too many New Yorkers unable to afford a college degree. Creating a savings account early in life dramatically increases the likelihood of a child going to college, so we’re going to help New York City families do just that. I am thrilled the City is partnering with NYC Kids RISE and the Gray Foundation to give New York City’s public school children a chance to obtain a college degree and reach their dreams. With this initiative, every child – regardless of their family’s economic status – will have a fighting chance to access higher education,” said Mayor Bill de Blasio.

“We need to invest in the future of our children. Research confirms that by creating these savings accounts, we will be dramatically increasing the chance that our children not only enroll in college, but graduate. Through this program they will see first-hand the benefits of long term savings, helping families to move up the economic ladder and enabling our students to secure their futures,” said Commissioner Julie Menin, who will serve as Chair of the public-private partnership NYC Kids RISE.

“We believe that all children should have an opportunity to reach their highest potential. By making college scholarship investments early in life, the New York City CSA initiative is sending the message to New York City public school students, their parents, their teachers, and their communities that they can pursue higher education and will be supported in realizing that goal. We are excited to help Mayor de Blasio and NYC Kids RISE pilot this impactful program,” said Jon Gray, co-Founder of the Gray Foundation.

With up to $10 million in seed funding contributed by the Gray Foundation, and working in collaboration with NY’s 529 College Savings Program, the CSA initiative will enable children to have access to financial resources to be used to obtain a post-secondary education. The initiative will encourage positive financial behaviors and life-long savings, through improved financial education and literacy, and will democratize the benefits of long-term investing.

The three-year pilot program will kick off in one City school district with approximately 3,500 kindergarteners in year one. Starting in fall 2017, kindergarteners in the participating school district will each start with $100 allocated to them in scholarship accounts, plus up to an additional $200 in matching funds during the program’s first three years. There is no cost to participate in the program, and all kindergarten students in that district will be automatically enrolled.

According to the Center for Social Development, a low- or moderate-income child with a college savings account of up to $500 is more than three times more likely to enroll in college than a child with no savings account. With savings of $500 or more, that same child is five times more likely to graduate from college than a child with no savings account.

"For even the brightest and best-prepared high school graduates, financial barriers too often place college beyond reach. That should never be the case, especially when our high school graduation rate is at an all-time high," said Richard Buery, Deputy Mayor for Strategic Policy Initiatives. "CSAs can be a powerful tool – not only for encouraging college saving, but for inspiring families to believe that college is in their future. This is a shining example of government and the private sector working together to put our children first."

“This groundbreaking public private partnership between the City of New York and the Gray Foundation will help to get our city’s kids on the right path by giving New York families a head start on saving for higher education. The de Blasio Administration wants every child to have the opportunity to succeed, regardless of their economic situation or their zip code. With the generosity of our partners in the private sector, I know we can give students the support they need to reach higher and stretch farther,” said Senior Advisor to the Mayor and Director of the Office of Strategic Partnerships Gabrielle Fialkoff.

“As the first person in my family to go to college, I understand the barriers that stand in the way of our low-income or first-generation students getting there and succeeding. This Administration has taken powerful steps to address those barriers, and the new Child Savings Accounts represent one more step in the right direction. I look forward to working with the Mayor and our partners as we build up this program and start our youngest learners on the path to college and careers,” said Schools Chancellor Carmen Fariña.

A top priority for the de Blasio Administration is to create equity and excellence in education for all of New York City’s children. This Administration is creating a path to college and careers starting with Pre-K for All – which is in its second year of providing every 4-year-old in the city with a free, full-day, high-quality pre-K seat – and continuing through elementary, middle, and high school. The City’s high school graduation rate is over 70 percent for the first time, the dropout rate is the lowest ever recorded, and college readiness and enrollment rates are also at record highs. As the City builds on this progress through the Mayor’s Equity and Excellence for All agenda – including the College Access for All initiative, which will provide every student with the awareness, resources, and support to graduate high school with an individual college and career plan – the child savings program will better prepare children to save for higher education options including college, vocational programs and other postsecondary educational options.

The project, led by Commissioner Julie Menin, is supported by several City agencies including the Department of Education, the Department of Information, Technology, and Telecommunications, the Department of Consumer Affairs, the Center for Economic Opportunity, and the Mayor’s Office of Media and Entertainment. In addition to their generous contribution of up to $10 million, the Gray Foundation has also played a leadership role in the development of the initiative. The Gray Foundation's gift will provide funding for a three-year pilot period as well as start-up funding for the CSA program’s infrastructure and personnel. Pending a successful pilot program and a fundraising campaign to raise the necessary private funding, the initiative will expand to fulfill its goal of providing a universal scholarship account to every child in the New York City public school system.

The City worked with leading social policy research firm MDRC to conduct six focus groups of 60 low- to moderate-income parents in New York City. MDRC found that while families care deeply about their children having the opportunity to go to college and were excited to learn about 529 accounts, almost no participants were previously aware of the tool. Further, the City conducted data analysis to determine that in NYC, a child growing up in a neighborhood in the top 20 percent of income is 20 times more likely to have a 529 College Savings Direct account than a child growing up in a neighborhood in the bottom 20 percent of income.

As part of the partnership, NYC Kids RISE will oversee the scholarship accounts and programs within the guidelines of NY’s 529 College Savings program. The nonprofit will function independent of the City and have a full-time Executive Director and a Board of Directors. The Board will have representation from both City Hall and the private sector, and will include Commissioner Julie Menin as Chair, NYC Schools Chancellor Carmen Fariña, Deputy Mayor for Strategic Policy Initiatives Richard Buery, and Executive Director of the Gray Foundation Dana Zucker. NYC Kids RISE plans to launch efforts to raise additional funds to support the ongoing costs of the initiative and to explore opportunities to scale. Commissioner Menin will assume the new responsibility of chairing the nonprofit, and continue in her role as Commissioner of the Mayor’s Office of Media and Entertainment.

The Department of Consumer Affairs and its Office of Financial Empowerment will also be involved with the initiative, utilizing its Financial Empowerment Centers to help families create their financial savings plans.

NY’s 529 College Savings programs are investment vehicles designated for saving for higher education. The CSA initiative will leverage the 529 platform and enable New York City students, regardless of circumstance, to take advantage of the benefits of investment and compounding growth.

The City worked to create an innovative account structure to enable all students entering participating schools to be in a position to benefit from the program’s philanthropic dollars. Under this structure, the funds invested in the scholarship component will be held in an omnibus account, and each participating student will be automatically assigned a portion of the total regardless of the families’ income or immigration status.

Through a unique hybrid structure, students will be able to participate in both a scholarship component and a family savings component of the program. Both the scholarship and family savings components will be invested in the 529 plan, so all funds will have the opportunity to benefit from compounding earnings. The family savings option will allow family members, relatives, and others to contribute to students’ education funds and have those funds be invested in a 529 plan.

Assemblyman Dinowitz’s Holiday Food Drive Makes Huge First Donations to Bronx Non-Profits

Kingsbridge Heights Community Center and Saint Frances of Rome Church received hundreds of cans, boxes, and jars of nonperishable food items this afternoon.

Goodman Management, Kelly Ryan’s Bar and Restaurant, and Ben’s Market, donated dozens of turkeys to families in need.

  Assemblyman Dinowitz was joined at his district office by representatives from the Kingsbridge Heights Community Center and Saint Frances of Rome Church in Wakefield, who picked up dozens of boxes containing hundreds of cans, boxes, and jars of food collected by local students from PS 7, PS 81, and community members during Assemblyman Dinowitz’s annual holiday food drive. These non-perishable food items, along with dozens and dozens of turkeys donated by Goodman Management, Kelly Ryan’s Bar and Restaurant, and Ben’s Market will go to Bronx families in need this holiday season.

“I am very pleased to report that my office’s 2016 annual holiday food drive has been a huge success thus far,” said Assemblyman Dinowitz. “Thanks to the inspiring efforts of the community, in particular the students and staff at PS 7 and PS 81, my office has been absolutely packed over the past weeks with boxes of food.  These donations make a big difference to many families in our community. If you haven’t yet had the chance to give back this holiday season, don’t forget that my office will be accepting non-perishable food items until December 15^th!”

All food items will be donated to the Kingsbridge Heights Community Center and the food pantry at Saint Frances of Rome Church for families in need during the Thanksgiving, Chanukah, and Christmas holiday seasons.  The following canned and non-perishable food items are accepted: canned fruits and vegetables, cereals, dried beans, pasta, rice, tuna, coffee, teas, canned juices, powdered milk, Jell-O, and soups. Residents may donate their canned goods to Assemblyman Dinowitz’s office located at 3107 Kingsbridge Avenue; one block west of Broadway, just off of West 231st Street.  For more information, call (718) 796-5345.

Pictured from left to right: Margaret Della, Executive Director of Kingsbridge Heights Community Center; Assemblyman Jeffrey Dinowitz; Lorrin Johnsons, co-chair of Saint Frances of Rome Food Pantry; Dave Lynch, Kelly Ryan’s Bar and Restaurant, and Pat McCaffrey, co-chair of Saint Frances of Rome Food Pantry.

BP Diaz Gives Turkeys to Needy Bronx Residents

  The Turkey truck pulled up at one of the many sites throughout the Bronx where Bronx BP Ruben Diaz Jr. and staff from the his office would give turkeys to needy Bronx residents. At this stop on Wallace Avenue BP Diaz would hand out 100 turkeys for resident to enjoy a Happy Thanksgiving.

Above - BP Diaz greets residents with turkeys that he would give out courtesy of Western Beef Supermarkets.

Below - This person thanks BP Diaz for the turkey for his turkey to have on Thanksgiving.

Above - This man not only thanks BP Diaz for the turkey he received, but also has his picture taken with his favorite BP.

Below - The turkey give out lasted until 100 turkeys were given out at this stop, and then it would be on to the next stop to give out more free turkeys to residents of the Bronx who may not be able to afford them. In all three thousand turkeys were given out over three days by BP Diaz. 

BP DIAZ WRITES TO ODELL BECKHAM & VON MILLER

“Thanks for visiting The Bronx…but try a better place than Sin City!”

Bronx Borough President Ruben Diaz Jr. has written a letter to NFL stars Odell Beckham Jr., wide receiver for the New York Giants, and Von Miller, linebacker for the Denver Broncos, regarding the pair’s recent, highly publicized visit to the notorious Sin City, a strip club located in the South Bronx.
“I would like to thank you for your recent visit to the great borough of The Bronx,” wrote Borough President Diaz, who doubles as the biggest New York Giants fan in The Bronx. “I appreciate that you both took time out of your very busy schedules to pay us a visit. However, you could have picked a better place.”

The full letter can be read at http://on.nyc.gov/2fVpUSS.

In addition to the letter, Borough President Diaz also mailed Mr. Beckham and Mr. Miller copies of the 2016 Bronx Visitors Guide (viewable at http://bit.ly/2gCMkwn) to inform their future visits to the borough, and urged them to reach out if they wanted to see the many great things The Bronx offers visitors to the borough each and every day.

“I would love to show both of you gentlemen there is more to The Bronx than establishments such as Sin City, where you risk losing more than your valuables,” wrote Borough President Diaz. “If you would like to see what The Bronx is really about, and visit numerous establishments that our residents are actually proud of, I hope you will take me up on this offer.”

In August, Borough President Diaz issued a letter to the New York State Liquor Authority urging the agency to revoke Sin City’s liquor license. That letter can be read at http://on.nyc.gov/2auXQWe.

Mayor de Blasio Visits Youth Leaders On The Move at the Christopher Columbus Campus

   At the annual Law Enforcement and School Safety Agent Appreciation Luncheon a special guest dropped in to say hello and how great it is to see students and police officers appreciating one another. Mayor Bill de Blasio who with Chancellor Carmen Farina have pushed to strengthen better relations between police officers and the school community was on hand to see students at the Columbus Campus host a luncheon for the local 47th Police Precinct officers and School Safety officers at the schools in the Columbus Campus. 

  It was a full program beginning with the Pledge of Allegiance, a wonderful music serenade by one of the students, presentation of a memorial plaque to the Police Department in honor of fallen Sergeant Paul Tuzzolo, remarks by the principal of the Bronxdale High school at the Columbus Campus, Deputy Inspector Stevenson the commanding officer of the 47th Precinct, Councilwoman Vanessa Gibson, Chief Gomez of the NYPD, and then Mayor Bill de Blasio. The photos should tell the rest of the story.

Above - A beautiful musical serene by student Carlos Sanchez.

Below - The plaque given to the police officers in honor of Sergeant Tuzzolo. 

Above - Deputy Inspector Stevenson of the 47th Police Precinct tells the students how much his officers at the 47th Pct. appreciate the support from the students. He added that after Sergeant Tuzzolo was killed in the line of duty it became tough to put on the uniform without remembering what had happened, but police officers continued to do their jobs.  

Below - Chief Gomez (from police headquarters) tells the students that the entire police department appreciates what is going on at the school with this luncheon with his police officers. This is one way for students to see the real police officers, who put their lives on the line every day for the people of New York City.

Above - Even the mayor had to sign in at the front desk, as one of the students turns around to see if it is really the mayor on New York City.

Below - The mayor walks to the front of the room with the program in his hand.

Above - There is always time to get a selfie in with the mayor as he hands his program to one of his aides.

Below - The mayor speaks to the students and police officers on hand saying that something important is happening here at this school as police and the school community come together. He added that it is important for the police officers and other community based groups to meet and get to know one another.

Above = As he was talking the mayor could not help but notice the delicious looking cake on the table right in front of him to be cut right after he finished his speech.

Below - The mayor, Chief Gomez, Deputy Inspector Stevens, and others from the school cut the first slice of cake.

Then it was off to another event for the mayor.

   

Chief Financial Officer And Manager Plead Guilty And Another Manager Sentenced In $31 Million Fraudulent Debt Collection Scheme

All 14 Defendants Have Now Pled Guilty in Largest Debt Collection Scheme Ever Prosecuted

   Preet Bharara, the United States Attorney for the Southern District of New York, announced that MAURICE SESSUM, the co-owner, chief financial officer, and chief operating officer of a Buffalo, New York-based debt collection company (the “Company”), pled guilty yesterday before Judge Katherine Polk Failla to orchestrating a scheme to coerce thousands of victims across the country, through false threats and representations, into paying a total of more than $31 million to the Company to resolve debts these victims purportedly owed.  In addition, earlier today before Judge Faila, JIMMY STOKES, a Company manager, pled guilty, and TACOBY THOMAS, another Company manager, was sentenced to 70 months in prison for their respective roles in the scheme.  All 14 defendants who were charged for their participation in this fraud have now pled guilty.

U.S. Attorney Preet Bharara said:  “Now that all of the 14 defendants behind the largest debt collection scheme ever prosecuted have admitted their guilt, the process of restitution to the thousands of victims across the country can begin.  Thanks to the dedicated work of our Office’s criminal investigators and the Federal Trade Commission, this so-called ‘business’ is no longer able to victimize consumers.”

According to the allegations contained in the Indictment and statements made during the plea proceedings and THOMAS’s sentencing proceeding:

Between 2010 and February 2015, SESSUM was the co-owner, chief financial officer, and chief operating officer of the Company.  In that capacity, SESSUM, together with his co-defendant and co-owner, Travell Thomas, oversaw four debt collection offices operated by the Company in Buffalo and a team of managers and debt collectors.  As part of the scheme, SESSUM and Travell Thomas falsely inflated the balances of debts owed by consumers in the Company’s debt collection software so that debt collectors could collect more money from the victims than the victims actually owed.   

SESSUM approved debt collection scripts that contained a variety of misrepresentations and instructed his collectors to make those misrepresentations to consumers over the telephone.  The Company’s debt collectors, in turn, attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats.  Among other things, STOKES misrepresented to victims that he would have a bench warrant issued for their arrest, would contact the “county” to initiate legal proceedings, and was not calling from a collection agency.  Among other things, THOMAS misrepresented to victims that he was a “process server” from “U.S. Couriers” with “legal documents” to serve on victims, that victims had committed “check fraud,” and that THOMAS was calling from an “arbitration firm.”

In total, from about January 2010 through November 2014, the Company collected over $31 million from thousands of victims across the United States.  Of the money that the Company took in from victims, approximately $1.5 million was paid in cash to SESSUM and Travell Thomas, approximately $1.4 million was withdrawn from banks and ATMs, and tens of thousands of dollars were used to pay for SESSUM’s personal expenses.

SESSUM, 40, of Buffalo, New York, and STOKES, 39, of Charlotte, North Carolina, each pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison and three years of supervised release.  The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.  SESSUM is scheduled to be sentenced by Judge Failla on March 1, 2017, at 3:00 p.m.   STOKES is scheduled to be sentenced by Judge Failla on May 18, 2017.

In addition to his prison term, THOMAS, 34, of Buffalo, New York, was sentenced to three years of supervised release, and ordered to pay forfeiture in the amount of $896,605.03.

In total, 14 individuals associated with the Company have pled guilty to defrauding consumers as part of this debt collection scheme.  In addition to SESSUM, STOKES, and THOMAS, co-owner and chief executive officer Travell Thomas, former Company mangers Heather Gasta, Mark Lavin, and John Salatino, and debt collectors Jessica Mann, Charles Starks, William Clark, Anthony Caba, Columbus Simmons, Michael Calandra, and Jennifer Sherk, each pled guilty to conspiracy to commit wire fraud.

Starks, Clark, Calandra, and Mann were sentenced by Judge Failla to prison terms of 37 months, 30 months, 15 months, and one year and one day, respectively.  The sentencing of the other defendants who have pled guilty is pending. 

Mr. Bharara praised the efforts of the Office’s Criminal Investigators and he thanked the Federal Trade Commission for its assistance in the case.