Soundview - Job Fair 2017

Former Chairman And Ceo Of Credit Union And Operator Of Unlawful Bitcoin Exchange Found Guilty In Manhattan Federal Court Of Bribery And Fraud Scheme

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TREVON GROSS, the former Chairman and CEO of Helping Other People Excel Federal Credit Union (“HOPE FCU”), located in Lakewood, New Jersey, and YURI LEBEDEV, a former member of HOPE FCU’s Board of Directors and a former employee of Coin.mx, an internet-based Bitcoin exchange, were found guilty today in Manhattan federal court, in connection with a bribery scheme to take over control of HOPE FCU and a fraud scheme in furtherance of the operations of Coin.mx. The jury convicted GROSS and LEBEDEV on all counts with which they were charged in the controlling indictment following a four-week trial before U.S. District Judge Alison J. Nathan.

Acting Manhattan U.S. Attorney Joon H. Kim said: “As a unanimous jury found today, Yuri Lebedev and others at Coin.mx, an unlawful Bitcoin exchange, tricked banks into processing millions of dollars in transactions by hiding the true nature of their business. When the banks caught on to their scheme, Lebedev and others bribed Trevon Gross so they could have a captive credit union to process those transactions, undermining the credit union’s safety and solvency. Despite elaborate efforts to hide their schemes, the defendants’ conduct was exposed at trial and found for what they were, federal crimes.”

According to the Indictment, other filings in Manhattan federal court, and evidence admitted at trial:

The Unlawful Bitcoin Exchange

Between 2013 and July 2015, LEBEDEV helped operate Coin.mx, an unlawful internet-based Bitcoin exchange, along with Anthony Murgio, the founder of Coin.mx. LEBEDEV and his co-conspirators engaged in substantial efforts to evade detection of their unlawful Bitcoin exchange by operating through a phony front company called “Collectables Club.” Coin.mx used the “Collectables Club” to open financial accounts in order to trick financial institutions into believing the unlawful Bitcoin exchange was simply a members-only association of individuals who discussed, bought, and sold collectible items and memorabilia. LEBEDEV and his co-conspirators deceived financial institutions by deliberately misidentifying and miscoding Coin.mx customers’ credit and debit card transactions, in violation of bank and credit card company rules and regulations. Through the illegal Coin.mx scheme, LEBEDEV and his co-conspirators caused more than $10 million in Bitcoin-related transactions to be processed illegally through financial institutions.

The Federal Credit Union Scheme

In 2014, in an effort further to evade scrutiny from financial institutions about the nature of the business engaged in by Coin.mx, LEBEDEV, Murgio, and their co-conspirators gained control of HOPE FCU, a federal credit union in New Jersey with primarily low-income members. After making more than $150,000 in illegal bribes at GROSS’s direction to bank accounts in the name of a church where GROSS served as the pastor, Murgio, LEBEDEV, and their co-conspirators took control of HOPE FCU. With GROSS’s assistance, Murgio installed LEBEDEV and various co-conspirators on HOPE FCU’s Board of Directors and transferred Coin.mx’s banking operations to HOPE FCU. GROSS also ceded operational control of the credit union to the board members installed by Murgio, including LEBEDEV. Thereafter, GROSS, LEBEDEV, and others worked to run tens of millions of dollars of ACH (Automated Clearing House) transactions through the credit union without adequate controls, thus putting its financial condition at risk.

GROSS, LEBEDEV, Murgio, and their co-conspirators also obstructed an examination of HOPE FCU by the National Credit Union Administration (“NCUA”) and made false statements to the NCUA in order to perpetuate LEBEDEV and Murgio’s control of the credit union. These included deliberately failing to disclose the bribe payments; misrepresenting the location of Coin.mx-affiliated businesses, including the “Collectables Club,” so as to claim that they were eligible to be members of the credit union and to serve as Board members; and manipulating the accounting at HOPE FCU so as to hide its true financial condition and the fact that it was processing tens of millions of dollars of transactions without adequate controls. HOPE FCU was operated as a captive bank by MURGIO and his co-conspirators until the end of 2014.

In October 2015, the NCUA placed HOPE FCU into conservatorship, and subsequently liquidation.

LEBEDEV, 39, of St. John’s, Florida, and GROSS, 52, of Jackson, New Jersey, were found guilty of one count of making corrupt payments to an officer of a financial institution and one count of receipt of corrupt payments by an officer of a financial institution, respectively, each of which carries a maximum sentence of 30 years in prison. LEBEDEV and GROSS also were each found guilty of participation in a conspiracy to make and receive corrupt payments, as well as to obstruct the examination of the NCUA and make false statements to the NCUA, which carries a maximum sentence of five years in prison. LEBEDEV was also found guilty of one count of wire fraud, one count of bank fraud, and one count of conspiracy to commit wire and bank fraud, each of which carries a maximum sentence of 30 years in prison. Their sentencings are set for July 20, 2017, before the Honorable Alison J. Nathan.

All four of LEBEDEV and GROSS’s co-defendants, including Anthony Murgio, have pled guilty and are awaiting sentence.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Kim praised the outstanding investigative work of the FBI and the Secret Service. He also thanked the NCUA for its assistance with the investigation and prosecution.

Six Members And Associates Of The Hells Angels Charged In White Plains Federal Court With Racketeering, Narcotics, And Money Laundering Offenses

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI’), announced the unsealing of an Indictment charging six members and associates of the Hells Angels with various racketeering, narcotics, and money laundering offenses, including the assault of a rival gang member with a hammer.

THOMAS SCHMIDT, JOSEPH KAPLAN, JOHN CALVACCHIO, JEFF AMATO, and GARY PAGANELLI were taken into federal custody this morning and were presented before United States Magistrate Judge Judith C. McCarthy. MICHAEL PICCIONE was taken into federal custody this morning near Los Angeles, California, and will be presented later today before a magistrate judge in the Central District of California. The case has been assigned to U.S. District Judge Cathy Seibel.

Acting U.S. Attorney Joon H. Kim said: “As alleged, through the sale of cocaine, oxycodone, and marijuana and their violent conflict with rival gangs, members of the New Roc Hells Angels wreaked havoc on the streets of Westchester, Putnam, and Dutchess counties. Together with our law enforcement partners, we are determined to combat gang and drug violence throughout the Southern District of New York.”

FBI Assistant Director William F. Sweeney Jr. said: “Violent gangs such as the Hells Angels often use violence and intimidation as a means to establish themselves or protect their ‘turf.’ In this case they allegedly used those tactics by attacking a rival gang member with a hammer in the middle of a restaurant and placing innocent people in danger. Regardless of the name these men operate under, the FBI Westchester Safe Streets Gang Task Force works daily to remove these alleged violent members of our society and to create a safer community for everyone.”

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

The New Roc Hells Angels were a criminal enterprise that operated principally in and around Westchester, Putnam, and Dutchess counties, from at least 2008 up to and including August 2014. The New Roc Hells Angels’ objectives included narcotics trafficking, extortion, money laundering, contraband cigarettes, prostitution, and altered motor vehicle parts.

Members and associates of the New Roc Hells Angels engaged in acts of violence against rival gang members. One of these acts was a December 2012 gang assault committed against a rival motorcycle gang – the Diablos – where members and associates of the New Roc Hells Angels beat a member of the Diablos on the head with a hammer at a restaurant in Poughkeepsie, New York, while innocent bystanders were dining. This violent act was to retaliate against the Diablos, who had encroached on the territory controlled by the New Roc Hells Angels, and otherwise to promote the standing and reputation of the New Roc Hells Angels among rival gangs.

Count One of the Indictment charges THOMAS SCHMIDT, the former Vice-President of the New Roc Hells Angels, with participating in a racketeering conspiracy.

Count Two charges SCHMIDT and JOSEPH KAPLAN with assault in aid of racketeering activity in connection with the December 2012 assault of a member of a rival gang.

Count Three charges SCHMIDT, MICHALE PICCIONE, JOHN CALVACCHIO, JEFF AMATO, and GARY PAGANELLI with participating in a narcotics conspiracy, in connection with the distribution of cocaine, oxycodone, and marijuana.

Count Four charges SCHMIDT and PICCIONE with conspiracy to commit money laundering.

Count Five charges PAGANELLI with possessing with intent to distribute and distributing cocaine.

Count Six charges AMATO with possessing with intent to distribute and distributing methamphetamine.

Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Kim praised the outstanding investigative work of the FBI.

This case is being handled by the Office’s White Plains Division. Assistant United States Attorney John P. Collins Jr. is in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

COUNT		CHARGE		DEFENDANTS		MAX. PENALTIES
1		Racketeering conspiracy   18 U.S.C. § 1962(d)		THOMAS SCHMIDT		Life in prison   Mandatory minimum of 10 years in prison
2		Assault in aid of racketeering activity   18 U.S.C. §§ 1959(a)(3)		THOMAS SCHMIDT JOSEPH KAPLAN		20 years in prison
3		Narcotics conspiracy   21 U.S.C. § 846		THOMAS SCHMIDT MICHAEL PICCIONE JOHN CALVACCHIO JEFF AMATO GARY PAGANELLI		Life in prison     Mandatory minimum of 10 years in prison
4		Money Laundering Conspiracy   18 U.S.C. § 1956(h)		THOMAS SCHMIDT MICHAEL PICCIONE		20 years in prison
5		Possessing with Intent to Distribute and Distributing Cocaine   21 U.S.C. § 841(a)(1) & (b)(1)(C)		GARY PAGANELLI		20 years in prison
6		Possessing with Intent to Distribute and Distributing Methamphetamine   21 U.S.C. § 841(a)(1) & (b)(1)(C)		JEFF AMATO		20 years in prison

DEFENDANT		AGE		RESIDENCE
THOMAS SCHMIDT		52		Staten Island, NY
JOSEPH KAPLAN		30		Valhalla, NY
MICHAEL PICCIONE		33		Arieta, CA
JOHN CALVACCHIO, a/k/a “Uncle”		53		Kent, NY
JEFF AMATO		50		Mamaroneck, NY
GARY PAGANELLI		47		Cortlandt Manor, NY

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

FORMER NEIGHBORHOOD PATROL LEADER SENTENCED TO 32 MONTHS IN PRISON FOR BRIBING NYPD POLICE OFFICERS TO APPROVE AND EXPEDITE GUN LICENSES FOR CLIENTS

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ALEX LICHTENSTEIN, a/k/a “Shaya,” was sentenced in Manhattan federal court today to 32 months in prison for bribery and conspiracy to commit bribery in connection with his payment of tens of thousands of dollars in cash bribes to New York City Police Department (“NYPD”) officers in exchange for the officers’ approval and expediting of gun licenses for LICHTENSTEIN’s paying clients. LICHTENSTEIN, who previously pled guilty, was sentenced today by the United States District Judge Sidney H. Stein.

Acting Manhattan U.S. Attorney Joon H. Kim said: “By engaging in an egregious scheme to trade cash for gun licenses, Alex Lichtenstein and his co-defendants in the New York City Police Department corrupted the sensitive process of evaluating gun license applications in New York City. Today’s sentence shows that individuals who so brazenly abuse the public’s trust in law enforcement – whether they are the officers receiving bribes or the citizens paying them – will be held to account for their crimes.”

As alleged in the Superseding Indictment against LICHTENSTEIN and established in connection with LICHTENSTEIN’s sentencing proceedings:

LICHTENSTEIN, who previously served as a leader in the Shomrim, a neighborhood patrol in Borough Park, Brooklyn, started a business in 2013 expediting gun license applications for clients. In return for a fee ranging from $10,000 to $16,000 per application, LICHTENSTEIN purportedly assisted his clients in navigating the gun licensing process within the NYPD. However, rather than provide legitimate services for his exorbitant fees, LICHTENSTEIN instead bribed two officers in the NYPD’s Licensing Division to ensure success for nearly all of his clients’ applications. In particular, LICHTENSTEIN paid co-defendant Sergeant David Villanueva of the Licensing Division between hundreds of dollars and $1,000 per application, and Villanueva in turn provided some of the bribe money to co-defendant Richard Ochetal, another NYPD officer in the Licensing Division who participated in the approval of applications submitted by LICHTENSTEIN’s clients. In exchange for this cash, as well as other perks such as liquor and limousine rides, Villanueva and Ochetal approved the gun license applications sought by LICHTENSTEIN’s clients without conducting the requisite diligence on his clients. As a result, Villanueva and Ochetal approved gun licenses for individuals with criminal histories, including at least one with a previous felony conviction, histories of domestic violence, and other factors that would otherwise have resulted in rejections by the Police Department. Villanueva and Ochetal also approved licenses for individuals to carry concealed guns for business-related reasons, when in fact such individuals had no legitimate basis on which to claim the need for such licenses. In total, LICHTENSTEIN made at least between $150,000 and $250,000 from his clients, a portion of which he remitted to Villanueva and Ochetal as bribes.

In April 2016, after having been banned by the Licensing Division due to rumors regarding his significant fees, LICHTENSTEIN attempted to bribe another police officer to help him get his clients’ applications reviewed by the Licensing Division and approved. In a recorded conversation, LICHTENSTEIN offered the NYPD officer $6,000 per application in exchange for the officer’s assistance with the Licensing Division. Rather than accept LICHTENSTEIN’s proposal, the officer reported this contact to the Police Department, ultimately leading to LICHTENSTEIN’s arrest.

In addition to the prison term, LICHTENSTEIN, 45, of Pomona, New York, was sentenced to three years of supervised release and was ordered to forfeit $230,000.

Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department’s Internal Affairs Bureau.

Robert Pizarro And Juan Rivera Charged In Violent Robbery And Kidnapping Of Bronx Man, Which Resulted In Man’s Death

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), George P. Beach II, the Superintendent of the New York State Police (“NYSP”), and James P. O’Neill, the Police Commissioner of the City of New York (“NYPD”), announced the arrest of ROBERT PIZARRO and JUAN RIVERA on charges of kidnapping conspiracy, kidnapping resulting in death, robbery conspiracy, robbery, and firearms offenses.  The defendants have been remanded and remain in custody.

Manhattan Acting U.S. Attorney Joon H. Kim said:  “As alleged, Robert Pizarro and Juan Rivera robbed, terrorized, and ultimately killed 36-year-old Robert Bishun.  Today’s arrests mark the end of an exhaustive investigation by the DEA, the NYPD, and the New York State Police, and the beginning of justice for Bishun’s family.”

DEA Special Agent in Charge of the New York Field Division James J. Hunt said:  “This investigation led law enforcement through a violent series of events leading to a murder by strangulation.  The New York Drug Enforcement Task Force’s REDRUM Group and the U.S. Southern District of New York identified the alleged crimes committed by Pizarro and Rivera and worked collaboratively to arrest them today.”

NYSP Superintendent George P. Beach II said:  “I applaud the hard work of our law enforcement partners on the DEA New York Drug Enforcement Task Force. Through solid police work, two suspects have been put behind bars and two dangerous men are off of our streets. These men not only allegedly kidnapped a man from his business, robbing him of hard earned money – but they ultimately took his life. We look forward to continuing our strong partnership with the Task Force, and bringing those who commit these heinous types of crimes, to justice.”

NYPD Commissioner James P. O’Neill said:  “As alleged, the brazen violence carried out by the defendants named in this indictment demonstrates a blatant disregard for both the law and human life.  I commend the prosecutors, investigators, and agents who diligently brought this case to its swift conclusion.”

According to the allegations contained in the Indictment[1] and other documents in the public record, and statements made in court:

On September 20, 2016, PIZARRO and RIVERA robbed Robert Bishun at gunpoint in his auto body shop in the Bronx.  They then kidnapped Bishun, forcing him into his own car, and driving it away.  Bishun’s body was found several hours later in the back seat of his car.  The Office of the Chief Medical Examiner of New York City concluded that the cause of Bishun’s death was strangulation.

On a prior occasion, in January 2015, PIZARRO robbed Robert Bishun at gunpoint at the same auto body shop, taking approximately $10,000 cash from Bishun. 

PIZARRO, 37, of the Bronx, and RIVERA, 39, of the Bronx, are each charged with one count of kidnapping conspiracy, which carries a maximum sentence of life in prison; one count of kidnapping resulting in death, which carries a maximum sentence of death; one count of robbery conspiracy, which carries a maximum sentence of 20 years in prison; and one count of use of a firearm, which carries a maximum sentence of life in prison.  PIZARRO is also charged with one count of robbery related to his January 2015 robbery of Bishun, which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by a judge

Mr. Kim praised the investigative efforts of the DEA New York Drug Enforcement Task Force, which comprises agents and officers of the DEA, NYPD, and NYSP. 

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

As Tax Day Approaches A.G. Schneiderman Releases Consumer Alert About Frequent Tax Season Frauds

A.G. Provides Tips To Avoid Scams This Tax Season, Urges New Yorkers To Report Potential Fraud

    With this year’s tax day just a month away, Attorney General Eric T. Schneiderman provided taxpayers with a variety of tips to help them avoid fraudulent tax schemes. The Attorney General also urged New Yorkers to stay vigilant and report to his office any suspected scams intended to steal personal and financial information from consumers.

“Too often, fraudsters use tax season as an excuse to exploit consumers,” said Attorney General Schneiderman. “My office will won’t hesitate to act if New Yorkers are being ripped off. This is why we ask consumers to remember a few helpful tips and notify my office of any fraudulent tax schemes.”

Each year, the Office of the Attorney General receives complaints from consumers about various tax-related schemes. The Attorney General’s Office continues to receive numerous complaints about scammers who are impersonating IRS officials and attempting to collect bogus tax debts. These often include fraudsters posing as government officials via phone calls or emails. Scammers threaten consumers with lawsuits or arrests if they do not turn over money or provide sensitive personal information. Consumers should not engage this type of caller or provide any personal information. A sample IRS scam call can be found here.

In many cases, the scammers claim consumers owe past tax debts and insist that consumers pay using a pre-paid credit card or gift card. Many scammers insist that would-be scam victims pay using these products, because they are generally difficult to trace. Consumers should not pay – the IRS and legitimate government agencies will never demand immediate payment or payment information over the phone.

New Yorkers can report potential scams to the Attorney General’s office by submitting a complaint here or by calling the Attorney General’s consumer hotline at 1-800-771-7755. Scams should also be reported to the U.S. Treasury Inspector General for Tax Administration at 800-366-4484.

Taxpayers should be wary of tax preparation businesses that advertise low fees to get the customer in the door but then increase the final fee by hundreds of dollars claiming the tax return was more complicated than anticipated; and of a tax preparer who electronically withdraws more than the agreed upon fee without notice to the consumer.

In order to help New Yorkers avoid tax scams the Attorney General’s Office offers the following additional tips:

• If you owe money, you will receive a legitimate notice in writing that identifies the agency and the reason you owe money;
• Do not give out personal information, including your Social Security number, bank account information, or other payment information, to telephone callers;
• Legitimate government organizations will never threaten arrest or deportation for failure to pay a debt;
• Legitimate government agencies will never insist that consumers pay a debt only via a pre-paid credit card.

The following suggestions will help consumers file their tax returns safely and keep more of their return:

• If you use a tax-preparation service, use only established and recognizable companies;
• Check the tax preparer's qualifications and history through the Better Business Bureau (org);
• Ask for a written estimate of all fees; avoid those who base their fees on a percentage of your refund;
• Avoid tax preparers that promise cash for preparing the return, but in fact merely offer a discount on inflated fees;
• Make sure the tax preparer is accessible, even after the April due date;
• Never sign a blank return;
• Review entire return before signing;
• Make sure the preparer signs the tax form and includes a Preparer Tax Identification Number (PTIN);
• Consult New York's “Consumer Bill of Rights Regarding Tax Preparers.”

Consumers can avoid the costs of refund anticipation loans and checks by filing their return electronically and having refunds either mailed or directly deposited into their own bank account.

The Attorney General is also reminding New Yorkers that there are Volunteer Income Tax Assistance (VITA) sites where consumers can get their tax returns prepared free of charge. For more information about how to qualify and identify a VITA location site go to: www.irs.gov/individuals/article/0,,id=107626,00.html.

Attorney General Schneiderman reminds New Yorkers that in addition to being vigilant consumers, they should also report instances of fraud to his office. Consumers are encouraged to file complaints to the Attorney General’s office by completing and submitting a Consumer Bureau Online Complaint Form or calling 1-800-771-7755.

A.G. Schneiderman And Comptroller Dinapoli Announce Arrest Of Brooklyn Man For Allegedly Pocketing Over $22K In Deceased Mother’s Pension Benefits

Jimmie Buie Of Brooklyn Allegedly Stole Over $22K In State Pension Benefits Issued To Deceased Mother

Schneiderman: Today’s Arrest Exemplifies Our Commitment To Rooting Out And Fully Prosecuting Pension Fraud

   Attorney General Eric T. Schneiderman and New York State Comptroller Thomas P. DiNapoli announced today the unsealing of a one-count indictment charging Jimmie Buie, a resident of Brooklyn, with Grand Larceny in the Third Degree, a class D felony. Jimmie Buie is alleged to have stolen over $22,000 in pension benefits issued by the New York State and Local Employees Retirement System to his deceased mother, Sandra Buie, between May 2011 and December 2012.

“It is simply reprehensible to exploit the death of a loved one by stealing their pension benefits,” said Attorney General Schneiderman. “Today’s arrest exemplifies our commitment to rooting out and prosecuting pension fraud to the fullest extent.”

Buie’s grandmother, Thelma Hairston, was a New York State pensioner who retired in 1995. At the time of her retirement, Thelma Hairston selected to receive her pension as a Pop Up Joint Allowance Half, which provided her with a reduced pension benefit, but allowed her to pass on pension payments to her daughter, Sandra Buie, at the time of her death. Thelma Hairston died in 1996, and Sandra Buie ultimately began to receive her share of monthly pension benefits.

"Jimmie Buie allegedly profited over $22,000 from his mother's death by stealing her retirement checks," said State Comptroller DiNapoli. "Our fight against pension fraud has led to more than 20 arrests and $2.7 million in ordered recoveries. My message is clear: If you try to get away with pension fraud, we will find you and hold you responsible. I thank Attorney General Schneiderman for his continued partnership in rooting out public corruption."

Sandra Buie died on May 15, 2011. According to the investigation, Jimmie Buie is listed as the informant on her death certificate. However, prosecutors allege that Jimmie Buie, who lived in the apartment where the pension checks were mailed to, enlisted four associates to cash nineteen pension checks after Sandra Buie’s death. Jimmie Buie concealed Sandra Buie’s death from the Retirement System in order to continue receiving Sandra Buie’s pension payments.  In total, prosecutors allege Jimmie Buie stole over $22,000 in pension benefits until the Retirement System discovered her mother’s death.

Jimmie Buie was arraigned on the indictment today before Honorable Judge Dineen Riviezzo in Kings County Supreme Court, and entered a plea of not guilty. Bail was set at $15,000 bond or $5,000 cash. If convicted, Jimmie Buie faces up to 3 1/2 to 7 years in state prison.

The charge is merely an accusation and the defendant is presumed innocent unless and until proven guilty.

Comptroller DiNapoli’s investigation was handled by the Comptroller’s Division of Investigations working with the New York State and Local Retirement System.

A.G. Schneiderman Announces Guilty Plea Of Former Non-Profit Employee For Diverting $400,000 For Personal Use

Former Human Resources Manager Of Hope Community Inc. Will Be Sentenced To 1-3 Years In Prison

   Attorney General Eric T. Schneiderman today announced the guilty plea of the former Human Resources Manager of the non-profit Hope Community, Inc., Chantel Rodriquez Pierre, for using her position to steal over $400,000 from the organization. Hope Community owns and operates low-income housing in Manhattan and is currently under contract with the New York City Department of Homeless Services for $8.9 million over five years to operate a homeless shelter for families. Rodriquez Pierre admitted that from June 2014 to February 2016, she manipulated the payroll system in order to issue bogus vacation time and additional reimbursements to employees at Hope Community. Instead of sending the money to the employees of the organization, Rodriquez Pierre ended up sending the money into accounts that she controlled. Rodriquez Pierre pleaded guilty to Grand Larceny in the Second Degree, and will be sentenced on April 13, 2017 to 1 to 3 years in state prison. Pursuant to a plea agreement, Rodriquez Pierre waived her right to appeal and agreed to pay restitution over time. Rodriquez Pierre pleaded guilty yesterday in front of Acting Supreme Court Justice Abraham Clott.

“We will not let non-profit employees use their organizations for personal financial gain," said Attorney General Schneiderman. "We will continue to work with our partners in government to ensure that taxpayer dollars are put to good use.”

DOI Commissioner Mark G. Peters said, "Enriching oneself by diverting funds from a not-for-profit that provides shelter for the City's homeless is nothing short of shameful. DOI is pleased that through its partnership with the New York State Attorney General's Office this defendant will now pay for her crimes."

The Attorney General would like to thank the New York State Department of Taxation and Finance for their assistance with the investigation.