A.G. Schneiderman And DEC Commissioner Seggos Announce Conviction Of Local Business Owner For Discharging Polluted Water Into Creek

Michael Jones And His Company, Coast Transportation And Recycling, LLC, Plead Guilty To Environmental Law Crimes; Will Pay $87,500 In Fines  

Schneiderman: Those Who Jeopardize The Safety Of New York’s Vital Waterways Will Be Held Accountable

   Attorney General Eric T. Schneiderman and Department of Environmental Conservation Commissioner Basil Seggos today announced the conviction of Michael Jones, 44, of Skaneateles, and his company, Coast Transportation and Recycling, LLC (Coast), for environmental law crimes related to discharging polluted water into Ley Creek and failing to obtain appropriate state regulatory permits.  

Today, before the Honorable Anthony F. Aloi, Coast pleaded guilty to one count of Environmental Conservation Law Section 71-1933(3)(a)(i), a Class E felony, for knowingly discharging pollutants without first obtaining a New York State Pollution Discharge Elimination System (SPDES) Permit.  Jones pleaded guilty to two counts of Environmental Conservation Law (ECL) Section 71-2711(3) and one count of ECL Section 71-2703(2)(c)(i), Class A misdemeanors, for illegally discharging liquid containing hazardous substances and for storing petroleum-contaminated soil on the Coast property. 

“We will continue working to safeguard New York’s vital waterways from harmful pollution,” said Attorney General Schneiderman. “Guarding our state’s natural resources is critical to protecting both the health of New Yorkers and local economies, and those who jeopardize this will pay the price.”

Today’s convictions are the result of an investigation conducted by the New York State Department of Environmental Conservation (DEC).

“As this defendant showed a callous disregard for the health and safety of Ley Creek and it’s residents, this conviction sends a strong and clear message that this behavior will not be tolerated in New York State,” said DEC Commissioner Seggos. “I applaud the work of our Environmental Conservation Officers and the Attorney General’s office in pursuing this case and ensuring that the state's laws are enforced and our environment is protected.”

In July 2016, an Onondaga County Grand Jury charged Jones and Coast, an automobile salvage and scrap recycling facility located at 15 Dippold Avenue in the Town of Salina, in a 10-count indictment with violations of the New York State Environmental Conservation Law. 

According to court filings and statements made by the prosecutor, DEC’s investigation revealed that in February 2010, two underground storage tanks were removed from the Coast facility.  These tanks, which contained fuel oil, had leaked and contaminated the surrounding soil.  More than 500 tons of petroleum contaminated soil (“PCS”) was ultimately excavated from the areas surrounding the underground storage tanks and stored on Coast’s property.  The PCS was not removed from the Coast facility until October 2014, and neither Coast nor Jones ever applied for or obtained the necessary permit.  The ECL and DEC regulations allow the temporary storage of PCS on site, but only for a period of 60 days.  Storage of PCS for longer than 60 days constitutes the operation of a solid waste management facility and requires a permit issued by DEC.   Solid waste management facilities are subject to strict operational and closure requirements to avoid the adverse impacts to public health and the environment associated with solid waste. 

Also according to statements made by the prosecutor, DEC’s investigation further revealed that on May 15 and 19, 2011, liquid runoff from the soil pile flowed across the Coast property and into a storm water drain on Dippold Avenue, which ultimately discharged into a tributary of Ley Creek.  Laboratory testing by DEC revealed that the liquid flowing into the storm water drain contained the hazardous substances benzene, toluene, ethyl-benzene, and xylene.

Additionally, on September 18, 2012, Jones directed a Coast employee to set up and operate an electric pump to discharge storm water that had accumulated in the Coast parking lot into another storm water drain, which also ultimately discharged into a tributary of Ley Creek.  Laboratory testing by DEC revealed that this storm water contained motor oil.  Jones and Coast discharged the oil laden storm water without having obtained a SPDES permit or having a Storm Water Pollution Prevention Plan in place, both of which are required by the ECL. 

The DEC previously filed an administrative enforcement proceeding against both Jones and Coast in June 2011, related to improper dismantling of vehicles at the yard.  An Administrative Law Judge found that both Jones and Coast had failed to conduct proper “fluid draining, removal and collection activities” at the Coast facility and had intentionally released fluids and discharged “petroleum onto the ground at the facility.” Jones and Coast were assessed a civil penalty of thirty thousand dollars ($30,000). 

Both defendants are scheduled to be sentenced on January 24, 2017. Coast will be sentenced to an unconditional discharge; Jones will be sentenced to three years’ probation and will pay a fine of $87,500.

The Attorney General thanks the DEC for their assistance in this investigation. 

Also assisting in the investigation was Investigator Joel Cordone, Supervising Investigator Richard Doyle and Deputy Chief Investigator Antoine Karam. The Attorney General’s Investigations Division is led by Chief Dominick Zarrella. 

The case is being prosecuted by Assistant Attorney General Andrew Tarkowski with the assistance of Assistant Attorney General Hugh L. McLean of the Criminal Enforcement and Financial Crimes Bureau. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary Fishman and Deputy Bureau Chief Stephanie Swenton. 

If you witness an environmental crime, contact the NYSDEC 24-hour Poacher and Polluter hotline at 1-844-DEC-ECOS (1-844-332-3267). 

A.G. Schneiderman Announces Indictment And Arraignment Of Clinic Operator For Allegedly Defrauding Medicaid By Offering Bogus Substance Abuse Treatment

Natalia Dochim Allegedly Induced Patients Into Fake Substance Abuse Treatment, Then Pocketed Millions Of Dollars 

Schneiderman:  We Will Continue To Root Those Who Prey On New Yorkers In Need Of Substance Abuse And Addiction Treatment

  Attorney General Eric T. Schneiderman today announced the indictment and arraignment of Natalia Dochim, 39, of Nyack, New York, and corporate entities Miromedical P.C. (“Miromedical”) and Ferrara Medical Care, P.C. (“Ferrara”), on charges of Grand Larceny in the First Degree, Grand Larceny in the Second Degree, Health Care Fraud in the Second Degree, Money Laundering in the Second Degree, and Grand Larceny in the Fourth Degree.  Prosecutors allege that Dochim, Miromedical, and Ferrara submitted claims for reimbursement for substance abuse treatment services to Medicaid and to MetroPlus, a state-funded managed care organization (“MCO”), when they were not certified to provide such services and for medical services allegedly rendered to MFCU undercover investigators that never occurred.

“The opioid epidemic should not serve as an excuse for unscrupulous individuals to illegally line their own pockets,” said Attorney General Schneiderman. “Medicaid is intended to protect some of our most vulnerable citizens, and we will continue to root out those who prey on New Yorkers in need of substance abuse and addiction treatment.”

Prosecutors allege that Dochim, aided by co-conspirators in her scheme, lured Medicaid patients to Miromedical and Ferrara by paying kickbacks and offering prescriptions of Suboxone, a narcotic drug used to treat opioid addiction.  Once recruited, patients at Miromedical and Ferrara, prosecutors allege, encountered the façade of a substance abuse treatment program.  Medically appropriate and necessary medical histories were not always obtained, physicals were not taken, initial counseling did not occur, and there was a complete lack of appropriate follow-up and monitoring.  Consequently, all patients were treated the same; mandated to enroll in one particular MCO (MetroPlus), sent to a purported “detox” program, and prescribed Suboxone at the maximum dosage in lieu of legitimate substance abuse treatment.  If actually provided, prosecutors allege, the so-called “detox” treatment that patients were required to obtain was, according to the claims submitted by Miromedical and Ferrara, merely vitamin injections, which is not an approved treatment for opioid addiction. 

Thereafter, prosecutors charge, Dochim, through Miromedical and Ferrara, submitted claims to MCOs and to Medicaid that bore little to no resemblance to the medical services actually rendered.  Prosecutors allege services such as spirometry, a pulmonary function test, and allergy testing, were routinely billed but never provided.  Patient “recruiters” working inside Miromedical and Ferrara, it is alleged, also openly offered to buy back patient’s Suboxone prescriptions for cash.

Relying on the accuracy of substance abuse treatment claims submitted by Dochim, prosecutors allege that MetroPlus paid over $2.3 million and that Medicaid paid over $330,000 to Dochim, Miromedical and Ferrara, funds to which they were not entitled and which Dochim is alleged to have then laundered through various shell companies.

Bronx County Supreme Court Justice William Mogulescu arraigned Dochim, Miromedical and Ferrara Medical Care on the charges and adjourned the matter to December 9. If convicted, the defendant faces up to twenty-five years in prison.

Bail was set at $250,000 bond over $100,000 cash, with a condition that the defendant must wear an ankle monitoring bracelet should she make bail.

The Attorney General previously obtained an order freezing the bank accounts and other property held by the defendants and attaching up to $7,743,013.71 of those assets. The Attorney General also obtained a temporary restraining order preventing dissipation or transfer of the property controlled by the defendants. 

The Attorney General would like to thank the New York City Human Resources Administration (“HRA”), notably the work of HRA’s Medicaid Provider Investigations and Audit Unit, and the New York State Office of Alcoholism and Substance Abuse Services for their partnership and valuable assistance throughout the investigation. In addition, the Attorney General thanks the United States Department of Health and Human Services-Office of the Inspector General and the New York State Office of the Medicaid Inspector General, MFCU’s partners in combatting fraud against the Medicaid program. The Attorney General also thanks MetroPlus and Healthfirst for their cooperation in this investigation.

The investigation was led by Senior Investigator Albert Maiorano and Investigators David Ryan and Julie Clancy with the assistance of Supervising Investigators Dominick DiGennaro and Michael Casado under the supervision of Deputy Chief Investigator Kenneth Morgan. Audit support was provided by Principal Auditor-Investigator Patricia Iemma and Auditor-Investigator Coleman Williams under the supervision of MFCU NYC Chief Auditor Thomasina Smith.  Investigative support was provided by Confidential Legal Analyst Nicole Maher.  

The criminal case is being prosecuted by Special Assistant Attorneys General Erin Kelsh and David Arias with the assistance of MFCU NYC Regional Director Christopher M. Shaw. Thomas O’Hanlon is MFCU’s Chief of Criminal Investigations-Downstate. The civil case is being handled by Special Assistant Attorneys General David Abrams, Gerri Gold and Elizabeth Silverman with the assistance of MFCU Civil Enforcement Chief Carolyn Ellis.  MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney.   

The charges filed in this case are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.

A.G. Schneiderman Announces Indictment Of Former Village Justice For Allegedly Using His Position As Judge To Reduce Fines In Exchange For Sexual Favors

Delmar House Allegedly Reduced Fine For Defendant In Exchange for Sexual Favors While Serving As Justice For Village Of West Carthage

Schneiderman: Court Officials Who Exploit Position Will be Held Accountable

WATERTOWN – Attorney General Eric T. Schneiderman today announced the indictment of Delmar House, the former Village Justice for the Village of West Carthage Court in Jefferson County, charging him with one felony count of Bribe Receiving in the Third Degree and one felony count of Receiving a Reward for Official Misconduct in the Second Degree. 

House was the Village Justice for the Village of West Carthage Court from January 1, 2008 through December 31, 2015.  He is charged with using his position as a judge during that time period to reduce a fine for a defendant who appeared before him, in exchange for sexual favors from that defendant. 

“Any court official who exploits their position to elicit sexual favors shows blatant disregard for the wellbeing of their victim, the trust of the public, and for the judicial system as a whole,” said Attorney General Schneiderman. “We will keep working to root out public corruption and hold those responsible accountable.”

According to filed documents and statements made in court today, in or about April 2015, House, 49, of Carthage, agreed to and did reduce the fine for a defendant appearing before him in the Village of West Carthage Court for Vehicle and Traffic Law offenses, in exchange for sexual favors from that defendant.  In addition, according to documents filed in court and statements made in court today, House paid a portion of that defendant’s fines in exchange for additional sexual favors.  The defendant faces up to seven years in state prison if convicted. He was arraigned today before the Honorable Kim H. Martusewicz in Jefferson County Court.  The defendant pled not guilty and was released on pre-trial release and will be back in court on January 17, 2017 for a court conference.

The charges against the defendant are merely accusations and the defendant is presumed innocent unless and until proven guilty.

The Attorney General thanks the New York State Commission on Judicial Conduct, New York State Police Investigator Joseph Maurer and the New York State Police for their work on this matter.

BRONX MAN CONVICTED OF MURDER IN 2013 SHOOTING Defendant Also Convicted Of Gun Charge: Distinctive Tattoo On His Arm Holding Murder Weapon In Photo On Facebook

  Bronx District Attorney Darcel D. Clark today announced that a 21-year-old Bronx man has been convicted by a jury of the top charge of second-degree Murder in the 2013 shooting of a 19-year-old man in the Tremont section of the Bronx. He was also convicted of gun possession based on a photograph of him holding the murder weapon posted on Facebook. 

  District Attorney Clark said, “A Bronx jury has convicted this defendant of shooting a young man during a dispute. They also found him guilty of the gun charge, after being presented with a photo he posted on Facebook of him holding the weapon. This sends a message to those who espouse the culture of guns and violence that it is not tolerated in the Bronx.” 

  District Attorney Clark said the defendant, Jesswill Perez, 21, of 67 West 175th Street, was convicted today after a four-week trial before Bronx Supreme Court Justice Nicholas Iacovetta of second-degree Murder and second-degree Criminal Possession of a Weapon with Intent to Use. He faces up to 25 years to life in prison when he is sentenced on Dec. 15, 2016.

  According to trial testimony, at 7:30 p.m. on December 20, 2013, in front of a bank branch at 795 East Tremont Ave., Perez argued with Edwin Molina, 19, whom he knew. Perez pulled a .25-caliber pistol and shot Molina three times. Perez was arrested February 8, 2014 with the murder weapon and a 9-mm pistol in his possession. The firearms were suppressed at a pre-trial hearing but a Facebook photograph of Perez’ arm--with an ornate tattoo reading “Money Power Respect,” the hand holding the .25-caliber pistol--was entered into evidence.

  The case was prosecuted by Assistant District Attorneys Rachel Kalman and Masateru Marubashi, under the supervision of Christine Scaccia, Deputy Chief of the Homicide Bureau, and the overall supervision of Nicole Keary, Deputy Chief of the Trial Division and Jeremy Shockett, Chief of the Trial Division. District Attorney Clark also thanked 48th Precinct Detective Carlos Mena.

Bronx Chamber of Commerce 2016 Toy Drive will Donate Toys to Children in Need though BronxWorks

December Events at KRVC

Bronx Man Pleads Guilty To Sex Trafficking Of Minors, Possession Of Child Pornography, And Gun Possession

   Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DAVID HOPE, a/k/a “Capo,” pled guilty before U.S. District Judge Sidney H. Stein to his involvement in the sex trafficking of minor girls, possession of child pornography, and possession of a firearm as a convicted felon.

U.S. Attorney Preet Bharara said:  “For years, David Hope manipulated and exploited vulnerable minor girls in the cruelest of ways, selling them for sex for his own profit.  With David Hope’s guilty plea today, we seek to deliver justice to the victims, as well as a measure of real hope.  Protecting girls and young women from sex traffickers like Hope remains a top law enforcement priority for us and the FBI.”

According to the Indictment, Complaint, and other documents filed in the case, as well as statements made during HOPE’s plea proceedings:

Since at least 2013, HOPE directed and conducted a criminal sex trafficking and prostitution enterprise (the “Enterprise”) that recruited and exploited minor girls and young women, and then prostituted them using an online classified ad website for his own profit.  HOPE, who was wheelchair-bound, operated the Enterprise at his apartment in the Bronx, New York (the “Hope Apartment”), Connecticut, and elsewhere.

HOPE recruited minors who looked up to him to participate in the Enterprise and other criminal activity.  HOPE, who was known to carry a firearm, employed myriad tactics – including manipulation, intimidation, coercion, threats, and violence – to recruit and maintain the girls and young women he sold for sex.  At least four minor victims were involved in the Enterprise. 

In or about November 2015, when he was arrested, HOPE also possessed on his cellphone a sexually explicit video of one of the minor girls he trafficked. 

In or about January 2015, HOPE possessed a defaced firearm (the “Firearm”) after he had been previously convicted of a felony crime.  Specifically, on January 16, 2015, when New York City Police Department (“NYPD”) officers were executing a search warrant at the Hope apartment, HOPE instructed a minor female to throw the loaded Firearm out of the rear window of the Hope Apartment.  Before it was thrown out the window, the Firearm was in the bed where Hope was sleeping.

HOPE, 29, of the Bronx, New York, was arrested on November 19, 2015, in the Bronx, New York, and has been in federal custody since.  HOPE pled guilty today to one count of sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of conspiracy to commit sex trafficking, which carries a maximum sentence of life in prison; one count of possession of child pornography, which carries a maximum sentence of 10 years in prison; and one count of being a felon in possession of a firearm and ammunition, which carries a maximum sentence of 10 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by the judge.  HOPE is scheduled to be sentenced by Judge Stein on March 1st, 2017, at 2:30 p.m.

Mr. Bharara praised the extraordinary investigative work of the FBI.  He thanked the NYPD for its assistance throughout the investigation, and the United States Attorney’s Office for the District of Connecticut and the Connecticut Child Exploitation Task Force for its assistance with investigating HOPE’s operations in Connecticut.  Mr. Bharara also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the ATF/NYPD Joint Robbery Task Force (SPARTA) for its assistance in the early stages of the investigation.

Any individuals who believe they have information concerning the exploitation of children may contact the Federal Bureau of Investigation at 1-212-384-1000 or https://tips.fbi.gov/.

Five Defendants Charged In White Plains Federal Court With A $33 Million Mortgage Fraud Conspiracy

   Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Christina Scaringi, the Special Agent-in-Charge of the Northeast Region of the U.S. Department of Housing and Urban Development (“HUD”), today announced the unsealing of an Indictment charging five defendants with conspiracy to commit bank fraud, wire fraud, and mail fraud in connection with a debt-elimination scheme to defraud homeowners and banks.

Manhattan U.S. Attorney Preet Bharara stated:  “The defendants allegedly preyed on vulnerable homeowners struggling with their mortgage payments and, with their greed, victimized them further.  When the defendants were done with the victims, after falsely promising to reduce or even eliminate their mortgage debt for fees, these homeowners were left much worse off, in even greater debt.  With the charges today, and thanks to the investigative work of the FBI and HUD, the defendants now face federal fraud charges.”

FBI Assistant Director-in-Charge William F. Sweeney stated:  “As charged, the defendants exploited a program designed to help cost-burdened individuals enjoy the privilege of affordable housing.  Crimes of this nature not only hurt their victims financially, but often force upon them other forms of anguish while harming the financial integrity of the very programs established to help them. We urge everyone to protect themselves against this type of fraud and abuse.  If something doesn’t sound right, trust your instincts and do some checking. If you think you may be or have been a victim of mortgage fraud, we urge you to contact your nearest FBI office.”

HUD-OIG Special Agent-in-Charge Christina Scaringi stated:  “HUD’s reverse mortgage program was created to help our senior citizens find greater financial security through FHA-insured loans.  The defendants’ alleged scheme to unjustly enrich themselves through the victimization of our senior citizens is a shameful act that will not be tolerated by the HUD OIG.  We will continue to aggressively pursue those who would prey on America’s senior citizens and encourage anyone having knowledge of such schemes to contact our HUD hotline.”

As alleged in the Indictment unsealed today in White Plains federal court[1]:

In at least 2011 and 2012, BRUCE LEWIS, 65, JACQUELINE GRAHAM, 47, and an unindicted co-conspirator were partners in a business that they called the Pillow Foundation or the Terra Foundation (collectively, “Terra”).  Terra held itself out as a business that would investigate and eliminate mortgage debt in exchange for a fee.  Terra solicited clients who were having difficulties making their mortgage payments.

ANTHONY VIGNA, 59, was a lawyer who worked in-house at Terra and provided legal services to it and its clients.  ROCCO CERMELE, 54, was Terra’s director of operations who recruited clients, among other duties.  PAULA GUADAGNO, 58, was a real estate title professional who performed real estate title work for Terra.

LEWIS, GRAHAM, VIGNA, CERMELE, GUADAGNO, and others at Terra told potential clients that Terra could eliminate their mortgage debt in exchange for a fee.  In reality, Terra filed fraudulent discharges of mortgages at local county clerk’s offices in Westchester and Putnam Counties and in Connecticut.  These fraudulent documents made it appear as if Terra’s clients’ mortgages had been discharged, when in fact they had not. 

To profit from their scheme, Terra and the defendants charged monthly fees that they said covered, among other things, audits of the clients’ properties that they often failed to perform.  Terra and the defendants also encouraged their clients to take out second or reverse mortgages on the properties for which Terra had claimed to have discharged the first mortgages.  Once the clients had taken out these second or reverse mortgages, Terra and the defendants retained substantial portions of the proceeds.  Some of these second or reverse mortgages were made under HUD’s Home Equity Conversion Mortgage Program.

In total, Terra and the defendants filed nearly 60 fraudulent discharges in Westchester and Putnam Counties in New York and in Connecticut.  The fraudulent discharges claimed to discharge mortgages with a total loan principal of over $33 million.  In reality, the Terra clients for whom the fraudulent discharges were filed were often left with both a second or reverse mortgage and their original mortgage that had not actually been discharged.

VIGNA, CERMELE, and GUADAGNO were taken into federal custody this morning and were presented in White Plains federal court this afternoon before U.S. Magistrate Judge Judith C. McCarthy.  LEWIS and GRAHAM remain at large.                                   

Each defendant is charged with one count of conspiracy to commit wire fraud, bank fraud, and mail fraud, which carries a maximum penalty of 30 years in prison and a $1 million fine.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.

Mr. Bharara praised the outstanding investigative work of the FBI and HUD-OIG.  Mr. Bharara also thanked the Westchester and Putnam County District Attorney’s Offices and the Cheshire Police Department in Cheshire, Connecticut, for their ongoing assistance in the case.

This case is being handled by the Office’s White Plains Division.  Assistant United States Attorneys Jennifer Beidel, Michael Maimin, and James McMahon are in charge of the prosecutions.

US v. Bruce Lewis et al. Indictment.pdfUS v. Bruce Lewis et al. Indictment.pdfThe charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

 

---

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.