A.G. Schneiderman Announces Felony Charges Against Tech Firm And Former Chief Executive Officer For Alleged Securities Fraud Scheme

Tech Firm Sungame Corp. And Former CEO Neil Chandran Charged With Securities Fraud, Grand Larceny And Forgery

   Attorney General Eric T. Schneiderman announced today the unsealing of a multi-count indictment charging Freevi Corp., d/b/a Sungame Corp. (“Sungame”), and former Sungame Chief Executive Officer Neil Chandran in an alleged scheme to steal hundreds of thousands of dollars from unwitting investors by soliciting investments in computer tablets which supposedly were able to display content in 3D. Sungame is a publicly-traded Las Vegas, Nevada-based technology firm trading under symbol “SGMZ.

Chandran’s alleged scheme brought in hundreds of thousands of dollars from a single victim in 2014 alone, resulting in a Nassau County grand jury indicting Chandran on felony charges of Grand Larceny and Forgery, as well as securities fraud under the Martin Act. If convicted, Chandran faces up to 15 years in prison. The Attorney General’s investigation into Chandran’s potential theft of millions of dollars from dozens of other victims throughout New York State is ongoing.

“New Yorkers should not have to worry that their investments are being used to fund elaborate securities fraud schemes,” said Attorney General Schneiderman.  “My office will vigorously pursue those individuals and corporate entities whose greed threatens the fairness, order, and efficiency of the markets.”

According to statements made by the prosecutor at arraignment, beginning on or around July 1, 2013, and continuing through to the present, Chandran induced unsuspecting investors into agreeing to purchase Tablets at $1,000 per unit with the promise that the full purchase price would be returned in the form of a no-risk rebate typically within several weeks of purchase (the “Investment”).  In addition, Chandran further incentivized investors by offering both a so-called “education grant” consisting of 50% of the purchase price as well as the opportunity to allow Sungame to buy back the Tablet, who would thereafter resell it, and remit the profits to the investor.  Accordingly, Chandran represented that every $1,000 Tablet purchase would entitle an investor to: (1) a full return of their investment principle; (2) an “education grant” equal to 50% of their investment; and (3) the option to either keep the Tablet or receive the profit once Sungame re-sold it to an end-user. 

However, also according to statements made by the prosecutor at arraignment, the overwhelming majority of these investors received neither their return of investment capital nor their profit, as promised.  Instead, their investment capital was allegedly utilized by Chandran for the undisclosed and improper purpose of artificially inflating Sungame’s publicly-reported corporate earnings, funding the manufacture of additional Tablets so as to promote the investment to yet more unwitting investors, to repay those investors who had previously provided investment capital, and for the improper and undisclosed purpose of paying Chandran’s personal and corporate liabilities.

In August 2014, when Sungame’s over-inflation of reported corporate earnings came to light, Sungame’s stock price plummeted from a high of approximately $35.00 as of April 2014 to $1.50 per share in November 2014.  Sungame stock is currently valued at approximately $0.07 per share.

The indictment unsealed today involves a single Nassau County, New York resident who was introduced to Chandran and his investment opportunity during the winter of 2014.  Based upon alleged misrepresentations made by Chandran, the investor made an initial investment of $400,000 in April 2014 and a subsequent $66,000 investment in August 2014.  In an effort to pacify the investor, Chandran is alleged to have presented the investor with a fraudulent stock certificate purporting to show an ownership interest in a corporation that had ceased to exist almost two years prior to the date of issuance.  To date, the investor has received no return of his investment.

Chandran and Sungame are both currently charged with two counts of Grand Larceny in the Second Degree (a Class “C” Felony) and one count of Securities Fraud under the Martin Act (a Class “E” Felony); Chandran is also charged with one count of Forgery in the First Degree (a Class “C” Felony) and one count of Criminal Possession of a Forged Instrument in the First Degree (a Class “C” Felony).

Chandran was apprehended at the Los Angeles County Airport by U.S. Customs and Border Patrol personnel after returning  to United States from Hong Kong. Chandran, 45, and Sungame were arraigned today in Nassau County Supreme Court before the Honorable Judge Meryl Berkowitz. Bail for Chandran was set at $1 million bond or $500,000 cash. The charges against the defendants are allegations and they are presumed innocent until proven guilty in a court of law.  

In addition to the crimes charged in Nassau County, the Attorney General’s investigation into Chandran’s activities has also uncovered evidence of other alleged criminal conduct in other regions of New York State and elsewhere.  Anyone who believes that they may be a victim of this scheme is urged to contact the Attorney General at 212-416-8731. The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty in a court of law. Attorney General Schneiderman thanked the Office of the Nevada Attorney General for their valuable assistance on this investigation, including Criminal Investigator Todd Grosz, as well as the Los Angeles Police Department. The OAG investigation was conducted by Investigators Brian Metz and Ryan Fannon.  The Supervising Investigator is Sylvia Rivera and the Deputy Bureau Chief is John McManus. The Investigations Division is led by Chief Investigator Dominick Zarrella.

STATEMENT FROM MAYOR BILL DE BLASIO ON THE PASSING OF FORMER QUEENS BOROUGH PRESIDENT HELEN MARSHALL

   “Helen Marshall was as bighearted, dynamic and brave as the borough of Queens, which she represented with such determined grace for three decades in many roles, including as its first African American Borough President. New York City will miss her deeply, but her memory will live forever in the libraries, schools, and neighborhoods she uplifted and in the many hearts she touched. My deepest condolences to her family, friends and all who knew her.”  

Croton Facility Monitoring Committee Meeting (CFMC) - Monday, April 3, 2017 – 6:30 PM - Agenda

DEP Office – 3660 Jerome Avenue, Bronx NY 10467 - (718) 231-8470

I Welcome, Call Meeting to Order                                 Bill Hall, Chair

II Consider, Adopt April 3 CFMC Agenda   CFMC Representatives

III Consider, Adopt Minutes                 from CFMC Representatives

      November 14, 2016 CFMC Meeting

IV DEP Update - Open Access Weekend at JPR Eric Landau, DEP

      in Coordination w/ Bronx Week,

     DEP Schools 2017 Educational Program

V Update from Dept. of Parks, Recreation Andrew Penzi, DPR

    On Croton Funded Parks Projects

VI Croton Costs Report, Construction Update Bernard Daly, DEP

VII Old Business                         CFMC Representatives, and Public

VIII New Business                      CFMC Representatives, and Public

IX Select Date for Next Meeting  and Adjourn

ASSEMBLYMAN SEPULVEDA HAILS INMATE RE-ENTRY PROGRAM

   Assemblyman Luis Sepulveda, chair of the Assembly Subcommittee on Transitional Services, which deals with post-incarceration issues, today hailed Gov. Cuomo's pilot program to increase housing opportunities for the formerly incarcerated.

Sepulveda called it "an important step" in fighting homelessness, enhancing public safety and reducing the risk of recidivism.

 His subcommittee of the Assembly Corrections Committee, deals with legislation to best prepare prison inmates for reentry to the community, prevent recidivism, enhance public safety, and provide the support network and training to help former prisoners become self-sufficient, responsible community members.

Under the new pilot program, funded by the state Department of State and supported by the state Department of Corrections and Community Supervision, carefully screened and monitored individuals with criminal convictions will be allowed to rejoin their families in public housing in Schenectady, Syracuse and White Plains.

In announcing the pilot program, the governor pointed to a 2016 study by the Vera Institute which showed that not one of the 85 individuals who participated in an ongoing housing pilot program in the New York City Housing Authority has been convicted of a new crime since enrollment.

Assemblyman Sepulveda also hailed NYCHA's Family Reentry Program.

"I call on NYCHA to continue to work at modifying some aspects of this program in order to increase the number of participants in this already worthy program," he said.

 

"I hope both the governor's and NYCHA's pilot programs become successes, opening the door to expansion," said Sepulveda. "For too long, there has been a blanket stigma against all former inmates, even though they have paid for their crimes and shown they are worthy of acceptance back into general society. This can only benefit all concerned."

                                                 

Assemblyman Sepulveda represents the 87^thAssembly District covering Parkchester, Castle Hill, West Farms, Van Nest and Stratton Park.

STATE SENATOR GUSTAVO RIVERA INTRODUCES BILL TO EXPAND LAW THAT REGULATES CHARITABLE BAIL ORGANIZATIONS IN NEW YORK STATE

Successful Charitable Bail Organization Across The State Will Help A Greater Number of New Yorkers Avoid Unnecessary Time Behind Bars Under New Bill

   State Senator Gustavo Rivera introduces bill S4776 in the New York State Senate. This bill expands the current scope of the law regulating charitable bail organizations, which was sponsored by Senator Rivera and signed into law by Governor Cuomo in 2012, by enabling charitable bail organizations to provide greater assistance to low-income New Yorkers who cannot afford bail. This bill is sponsored by Assemblymember Michael Blake in the New York State Assembly. 

Bill S4776 will seek to implement the following measures:

1. Reducing the certification fee required by the New York State Department of Financial Services from $1000 to $500. The current $1,000 certification fee has been a financial burden for the charitable bail organizations operating in the State. Their limited funds would be better utilized in the operation of their organization.

2. Raising the cap for which charitable bail organizations can post bail for from $2,000 to $5,000. Under the current charitable bail law, organizations are only able to post bail for individuals charged with a misdemeanor. However, a number of counties across the State tend to set bail at a significantly higher rate for misdemeanor charges.

3. Removing the regional/geographical limit that currently states that charitable bail organization can only operate in one county in Upstate New York and Long Island.

"No one should be forced to sit in jail awaiting trial or plea to a charge they did not commit because they cannot afford bail. This bill will further strengthen our State's current charitable bail fund law by expanding how these organizations can operate and lower the financial barriers that hinder more organizations from obtaining the appropriate certification," said State Senator Gustavo Rivera. "Expanding these cost-saving programs will provide countless of struggling New Yorkers with a fairer alternative to navigating our criminal justice system." 

"No one should be denied an opportunity for Justice because they couldn't afford it.  Kalief Browder and countless others were waiting on a chance to be heard just because of economic hardships, and that injustice cannot continue. An estimated half million people daily remain in custody due to the inability to post bail, nationally. The cost of keeping individuals detained is not only a burden on taxpayers of New York, but also has a tremendous impact on the detainees, their families and their communities. In response to this, nonprofit organizations have begun to raise money via individual and private donations, creating charitable bail organizations. During the 2011 legislative session, the Assembly and Senate voted to officially recognize and regulate these charitable bail organizations.  This bill continues the regulation of charitable bail organization and further advances assistance by increasing the ceiling on the bail posted by individuals. The  New York State Assembly has already passed this vital piece of legislation. With Senator Rivera's  sponsorship , we hope that this bill will soon pass the Senate and become law." said State Assemblymember Michael Blake.

The success of the charitable bail fund programs has been undeniable. During its first year, the first organization licensed as a charitable bail organization, the Bronx Freedom Fund, helped 140 low-income Bronx residents facing a misdemeanor case where bail is set at $2000 or less. In addition, 98 percent of these clients made all required court appearances, 56 percent of these cases ended in dismissals where all of the charges were dropped, 23 percent of the cases resulted in non-criminal disposition and 9 percent of the clients plead guilty to a misdemeanor.

UNITED AGAINST HATE: LOCAL ELECTED OFFICIALS JOIN MUSLIM AND JEWISH COMMUNITY LEADERS TO RALLY AGAINST RECENT WAVE OF HATE CRIMES

 Senator Klein Highlights the IDC’s Religious Freedom Package

With Muslims across the country facing intolerance in light of bad national immigration policy, along with Jewish communities being bombarded by bomb threats and cemetery vandalism, Senator Jeff Klein, Assemblyman Mark Gjonaj and Councilman Ritchie Torres joined local Muslim and Jewish community leaders to rally against hate at the Bronx Muslim Center on Friday.

After the Trump administration issued a since-blocked immigration executive order, local Muslims have expressed fear and uncertainty over their future in America. Jewish communities centers, meanwhile, have faced roughly 100 bomb threats in 2017, including four this week in the New York City metropolitan area. The elected officials, along with Muslim and Jewish community leaders, spoke against these reprehensible acts and called for unity.

“As elected officials, as community leaders, as religious leaders, as ordinary citizens, we must stand together to condemn these acts of hate against our Muslim and Jewish communities. Such cowardly actions are acts against humanity, and acts against America. We, as Americans, believe acceptance and freedom of religion define us, not hate-filled cowards who aim to spread fear through called-in threats, abhorrent emblems or malicious words of hate, said Senator Klein.

“These acts of hate against the Muslim and Jewish communities are deplorable and contradict what we stand for as Americans. The United States is an inclusive society; a society that must be accepting of more than one idea. We must all come together to condemn these cowardice acts of prejudice and send a message that this will not be tolerated,” said Assemblyman Gjonaj.

“We will stand together against hate and use our positions to denounce acts of violence against Muslims, immigrants, the Jewish community and all communities that face discrimination. Together, we will overcome hate and ensure that perpetrators of hate crimes are prosecuted to the fullest extent of the law,” said Councilman Torres.

“We, the Muslim leaders and community, condemn all hate crimes and call for human beings to unite under peace and tranquility. We have to stand for justice, freedom, and equality for all, regardless of belief, color, and social status. A great nation prospers by having values and morals that keep the people protected and safe. Hatred and racism fuel violence and corruption. This is a country of diversity and prosperity. Until we come to accept our differences, we will forever live in darkness,” said Dr. Hamud Al-Silwi, Imam of the Bronx Muslim Center.

“As Americans of all faiths, we stand united to condemn the acts of hate and bigotry that has plagued the Jewish and Muslim communities. The hateful few that seek to divide us have betrayed the fundamental values that make America great. Americans are like one body, when one part of the body is in pain, the entire body is in pain,” said Captain Jamiel S. Altaheri,  Highest ranking Yemeni American in the NYPD & Founder of Building Bridges Through Positive Dialogue.

“The recent string of threats against Jewish organizations and vandalizing of Jewish cemeteries - including here in the New York Metropolitan area - has been deeply unsettling and worrisome for America’s Jewish community.  And, indeed, it should be of deep concern to all Americans, irrespective of faith or creed.  We must be exceedingly vigilant in stomping out all forms of bigotry, discrimination and hatred, if we are to live up to the ideals and values that this great country represents.  The response of America’s Muslim community to this string of anti-Semitic threats has been nothing short of inspiring, and it sends a loud and clear message to those who would divide us: no matter how hard you try to pull us apart, you will not succeed,” said Rabbi Elliot Schrier of The Albert Einstein Synagogue.

“I am honored and grateful to have this opportunity to join with my Muslim neighbors to speak out against the hate and intolerance that are epitomized by broad based immigration ‘bans’ and heinous threats of harm against nursery and pre-school programs at Jewish Community Centers. The United States has proven itself to be a haven for religious freedom and for people of all faiths and there is no room in our nation for bigotry or intolerance,” said David Edelstein, Executive Director of the Jewish Community Council of Pelham Parkway.

Senator Klein highlighted the Independent Democratic Conference’s Religious Freedom Package, a collection of legislation to combat hate crimes. Some of the measures deter hateful graffiti, vandalism in houses of worship, cemetery desecration and discrimination against religious attire.

The United Against Hate rally precedes a Friday night Know Your Rights forum, which will be hosted by the same elected officials, also at the Bronx Muslim Center. The forum will provide hands-on legal advice and assistance to Muslim community members concerned about their immigration rights.

Above - Senator Jeff Klein Assemblyman Mark Gjonaj, and Councilman Ritchie Torres stand with Jewish and Muslim leaders in front of the Bronx Muslim Center located on Rhinelander Avenue.

Below - Senator Klein standing at the podium he used the night before for a similar rally against hate tells of what he and the IDC propose in the state legislature to help prevent hate, and protect community centers across the state. 

Above - Assemblyman Mark Gjonaj the first Albanian-American elected to the state legislature says that all people have the right to be free and safe.

Below - Councilman Ritchie Torres also says that no matter where a person may come from they are entitled to the same rights as all Americans are, and should not be treated differently. 

Above - Dr. Hamud Al-Silwi, Imam of the Bronx Muslim Center says that the Muslim community stand with their Jewish Brothers in the Fight Against Hate.

Below - Captain Jamiel S. Altaheri The highest ranking Yemeni-American NYPD officer who founded the Building Bridges Through Positive Duologue program echos what the IMAM said.

Above - Mr. Charles Landsberg President of the Jewish Community Council of Pelham Parkway thanks his Muslim Brothers for their support in fighting hatred.

Below - A group photo of Muslim and Jewish leaders United Against Hatred.

STATEMENT FROM MAYOR BILL DE BLASIO ON CHARGES BROUGHT AGAINST A MISSOURI MAN FOR PATTERN OF ANTI-SEMITIC THREATS MADE TO JEWISH COMMUNITY CENTERS

   “We must not be indifferent to the rising tide of hate crimes we’re seeing in New York City and nationwide. When you attack someone because of who they are, how they worship or who they love, you are attacking our democracy. Today, we thank law enforcement for aggressively pursuing and arresting a suspect in a disgusting series of threats against Jewish Community Centers. Our country was founded to shelter the oppressed and respect all faiths. It’s up to every generation to protect those American values.”

MAYOR DE BLASIO APPOINTS JEFFREY D. FRIEDLANDER TO THE CONFLICTS OF INTEREST BOARD

   Mayor Bill de Blasio today appointed Jeffrey D. Friedlander to the Conflicts of Interest Board. Friedlander brings a wealth of experience in the corporate, government and legal fields and is active in professional and community service.

Friedlander was confirmed by the City Council and will serve the remainder of a six-year term starting April 1.

This position requires not only exceptional knowledge and experience of the law, but also the highest regard for ethics and governance, said Mayor Bill de Blasio. Jeff is an excellent leader and has made great strides in each of his previous positions. He is committed to upholding the highest standards of the law.

"At a time when public confidence in our institutions is eroding, it is so important that government officials act in conformance with the highest ethical standards. The COIB plays a vital role in achieving this end, and I am honored that the Mayor and City Council have given me the opportunity to contribute to its important work," said Jeffrey D. Friedlander.

About Jeffrey D. Friedlander

Jeffrey D. Friedlander has served New York City as one of its top and longest-serving municipal attorneys, having worked alongside 13 corporation counsels and under seven mayors.

Friedlander joined the Law Department as a member of its Honors Program in 1970 and in 1995 became the City's First Assistant Corporation Counsel, second-in-command of the New York City Law Department.

As the First Assistant Corporation Counsel, Mr. Friedlander was responsible for the office's corporate side, which includes key divisions like Economic Development, Contracts and Real Estate, and Municipal Finance. Mr. Friedlander also oversaw Affirmative Litigation, Environmental Law and Legal Counsel, the latter of which provides legal advice to City Hall and all City agencies and prepares the City's legislative proposals. He served as the City's Acting Corporation Counsel from 1997 to 1998 and then again in January of 2014. Subsequent to his retirement from the Law Department in 2015, he served as counsel to the Quadrennial Commission for the Review of Compensation of Elected Officials.

Friedlander is the President of the Board of Directors of the Heart and Soul Charitable Fund, Inc., which funds charitable activities in Manhattan that include meal programs for those in need as well as a number of youth programs. Additionally, he has served as a member of the Board of Directors of the Youth Services Opportunity Project, a non-profit corporation that provides opportunities for high school and college students to serve the homeless community. He is also a member of the Hunter College Pre-Law Advisory Board.

A lifelong New Yorker, Friedlander obtained his B.A. from Hunter College in 1967 and his J.D. from New York University Law School in 1970.

About the Conflict of Interest Board

The Conflicts of Interest Board is the independent New York City agency tasked with administering, enforcing and interpreting Chapter 68 of the New York City Charter, the City's Conflicts of Interest Law, and Section 12-110 of the Administrative Code, the City's Annual Disclosure Law. Through a combination of engaging training, confidential advice, and vigorous enforcement, the Board seeks to prevent ethics questions from becoming ethics problems for public servants.