Software Engineer Arrested For Attempted Theft Of Proprietary Trading Code From His Employer

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DMITRY SAZONOV was charged with attempted theft of trade secrets for his alleged attempted theft of proprietary computer code for a trading platform from his employer, a financial services firm with an office in New York, New York, that trades securities and other financial products (“Firm-1”). SAZONOV was arrested yesterday afternoon and presented today before U.S. Magistrate Judge Andrew J. Peck in federal court.

Acting U.S. Attorney Joon H. Kim said:  “As alleged, Dmitry Sazonov attempted to steal valuable proprietary computer code that took his employer years to develop.  Sazonov allegedly took elaborate steps to conceal his attempted theft, including camouflaging pieces of source code within harmless-looking draft emails on his work computer.  Thanks to the FBI, Sazonov has been stopped and is now in custody.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “As we allege, Sazonov went to great lengths to conceal source code for a trading platform in order to steal it from his former employer.  He researched and ultimately used the technique of steganography to hide the code within other PDF files like personal tax and immigration documents on his work computer. He also uploaded encrypted zip files to a third-party website to complete his heist.  Stealing from an employer is a serious offense especially when it comes to proprietary source code that companies have invested heavily in, and that they rely on to generate revenue.  The FBI is committed to enforcing laws that protect U.S. companies from the theft of trade secrets.”

According to the allegations contained in the Complaint unsealed today[1]:

Firm-1 acts as a market maker, facilitating trading and liquidity in a variety of financial markets.  A substantial portion of the trading done by Firm-1’s employees is facilitated by a proprietary computer trading platform (the “Trading Platform”), which deploys a computer program to take in many different pieces of market data, to use that data to develop trading strategies, and then to generate orders and automatically submit those orders to an exchange or market center.  Firm-1’s use of the Trading Platform accounts for a substantial volume of Firm‑1’s total trading activity.  For example, Firm-1 executes approximately $300 million in options trades through the Trading Platform every day.  The strategies and efficiency resulting from Firm-1’s use of the Trading Platform contribute substantially to Firm-1’s market share in the financial markets in which Firm-1 trades and to its overall trading profits. 

For at least approximately five years, Firm 1 has been in the process of developing an updated and improved version of the Trading Platform (the “Updated Trading Platform”).  Firm‑1 has, to date, invested more than approximately $5 million in the development of the Updated Trading Platform.  The Updated Trading Platform is expected by representatives of Firm-1 to continue to enhance the position of Firm-1 in the markets in which it participates and to contribute substantially to Firm-1’s market share and profits.  Accordingly, Firm-1 has put in place measures designed to protect the computer source code (the “Source Code”) underlying the Updated Trading Platform.

From July 2004 through February 6, 2017, SAZONOV was employed as a software engineer by Firm-1.  In that role, SAZONOV was involved in the development of trading strategies to be implemented in conjunction with the deployment of the Updated Trading Platform; as a result, SAZONOV had access to the Source Code.  On February 2, 2017, SAZONOV learned that his immediate supervisor at Firm-1 had resigned and began looking for a new job outside of Firm-1.  On Friday, February 3, 2017, SAZONOV learned that he would be meeting with another supervisor about the future of his role at Firm-1 the following Monday.   

Before that meeting took place, SAZONOV took various steps to attempt to steal the Source Code.  On the morning of February 6, 2017, SAZONOV downloaded the Source Code to his Firm-1 computer.  He ran Internet searches and viewed websites related to steganography, the practice of concealing messages or data within other files, among other things.  SAZONOV then deployed a computer program that appears to have used steganography, in order to break up a PDF file believed to contain the Source Code, and append pieces of the PDF file to various apparently innocuous documents and files contained in a folder on SAZONOV's desktop computer, including personal tax and immigration documents and images taken from the Internet, among others (the “Payload Documents”).  The program also appears to have produced a manifest, permitting the reassembly of the Source Code from the various Payload Documents.  SAZONOV used his Firm-1 computer to upload an encrypted zip file containing the manifest to a third-party website.  He also saved two draft emails to his Firm-1 email account, attaching the encrypted zip file containing the manifest to one email and a zip file containing the Payload Documents to the other email; the draft emails were addressed to an email address associated with SAZONOV.  SAZONOV did not send the emails before reporting to the meeting with the supervisor.  In the course of that meeting, SAZONOV was fired by Firm-1.  After being fired, SAZONOV repeatedly asked to be permitted to return to his desk to retrieve files from his computer.  Pursuant to Firm‑1 policy, however, SAZONOV was not permitted to return to his desk prior to being escorted out of Firm-1’s New York, New York, office.    

On multiple occasions following his termination by Firm-1, SAZONOV contacted individuals employed by Firm-1 by telephone and by email seeking the return of computer files on his Firm-1 desktop computer, which he claimed were personal documents.  Indeed, SAZONOV repeatedly requested that Firm-1 return to him the documents contained in the file in which the Payload Documents were saved.  On April 12, 2017, SAZONOV reported to the lobby of the building in which the New York, New York, office of Firm-1 is located and retrieved a disk he believed contained those files.  He was subsequently arrested.

SAZONOV, 44, of Rockland County, New York, is charged with one count of attempted theft of trade secrets, which carries a maximum sentence of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

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

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

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

New Community Board 8 District Manager to be Michael Heller

  It seems that Assemblyman Jeffrey Dinowitz has been able to get his choice for District Manager of Community Board 8 voted in at the monthly Community Board 8 meeting. But wait the normal second Tuesday full Community Board meeting is being held on Wednesday April 19th, so how would I know that Michael Heller was (or is going to be) voted in as the new District Manager?

  As you have seen on this blog I had left up a writing sample of the Traffic and Transportation Chair's minutes, which he submitted to be approved. If you went over the September 2016 minutes you found several mistakes. How could a non board member who was not even present at the September T & T meeting vote not once, but twice during the meeting as if they were a full board member. How could a board member who was no longer on the T & T committee (and listed as such) vote as a committee member. How could the vote be 9 - 0 - 0 when there were only eight voting members of the committee. When you subtract myself and the one board member who was not able to vote that leaves only seven committee members who voted (if they did) leaving out a long time female committee member who was in attendance. Could it be that the T & T chair Mr. Heller thought that the missing female committee member was me, or was Mr. Heller hallucinating when he wrote the minutes of the meeting. 

  What makes this worse is the fact that at the October 2016 T & T committee meeting the September 2016 Minutes were approved unanimously without any changes, but no names of who voted are mentioned. To make matters even more strange the T & T committee in its November meeting voted to approve the minutes of the October meeting without any changes once again unanimously without any changes, and no names of who voted again. To make sure these minutes were not changed at the last minute I received a certified copy of the September, October, and November Traffic and Transportation Committee minutes from the Chair of CB 8 who certified them.

  It seems that this type of problem happened once before on Community Board 8 by the Economic Development committee chair who had a problem submitting minutes, and there were calls for his removal. I guess if you have Assemblyman Jeffrey Dinowitz in your corner and when you screw up royally like the T & T chair Michael Heller has done you get voted in as the new District Manager.

  

Assemblyman Jeffrey Dinowitz Supports Michael Heller for new CB 8 District Manager

At the October 2016 meeting of Traffic and Transportation committee Mr. Michael Heller chairs the following is in the minutes of the meeting as taken from the CB 8 website.

The meeting opened at 7:40 PM. The September 2016 minutes were reviewed. The Committee approved unanimously. 

Below are the minutes (all three pages as noted) of the September 20, 2016 Bronx Community Board 8 Traffic and Transportation meeting as taken off the boards website on Saturday April 13th at 7:00 PM that were submitted by Mr. Michael Heller the committee chair. 

Please read my comment at the bottom.

PENDING COMMITTEE APPROVAL

BRONX COMMUNITY BOARD NO. 8, Traffic and Transportation Committee Minutes of September 20, 2016 

Meeting Committee Attendance: 

M. Heller 

D. Fuchs 

A. Creaney 

E. Bell 

N. Friedman 

S. Alexander 

G. Santiago 

Myra Joyce Community Committee member 

Committee Absences: 

M. Donato 

S. Sarao 

J. O’Brien 

Board Attendance: 

Paul Ellis 

Amy Joy Robateau 

David Gellman 

Bob Bender 

Herb Young 

Guests: 

Maria Nochimson – local resident 

Richard Nochimson – local resident 

Michael McCormick – Horace Mann School 

Peter Clancy – Horace Mann School 

Walter Hickey – MTAB&T 

Joyce Mulvaney – MTAB&T 

Cassandra Edgehill – MTAB&T 

Richard Campisi – MTAB&T 

Bruce Furman – local resident 

Joshua Stephenson - Office of Councilman Cohen 

Hugh Keenan – St. Margaret of Cortona School 

The meeting was conducted at the Fieldston Lodge Care Center, 666 Kappock Street, and was called to order at 7:40 PM by Chairman M. Heller, with a quorum present. The minutes of the March meeting were approved 9 – 0 – 0 by members M. Heller, R. Press, A. Creaney, D. Fuchs, E. Bell, N. Friedman, H. Young, G. Santiago, M. Joyce. 

Mr. Heller welcomed everyone and gave an overview of the next several months, including meeting on west 254 street, north Riverdale transportation plan and TA bus issues.

Minutes of the Traffic & Transportation Meeting, September 20, 2016 Page 2 

He Announced presentation by Joyce Mulvaney, director of community affairs of MTA B&T who introduced her staff to talk about the Henry Hudson Parkway (HHP) toll booth and other projects. 

She described the previous conversion to open road tolling, HHP cashless pilot since 2012 and we were the first. The goal is convert all MTA bridges and remove HHP tool booths starting at the end of 2016. A gantry system will read all ez passes and license plates. The Upper level will start at the end of 2016, lower level will take longer. 

Skew backs, which secure the bridge arch are to be rehabilitated starting early next year. Concrete pedestals will also be replaced over a 33 month period with all work at ground level and no impact on traffic. There will be an incentive for contractor to reduce duration to take off three months. Work is to be done only 8-4 pm weekdays on Bronx side. 

Replacement of bridge plazas, upper and lower: 45 months total contract period for both decks. The lower level is a much larger job requiring 31 months and reduction to 2 lanes. The upper deck will require five months. There will be incentives to shorten work on the lower level by 9 months and the top by 2 months bottom to three lanes. 

The bike path will be closed during lower level work. A bus shuttle service will run from Kappock to Dyckman during daylight continuously from March 1 through November, not during winter months due to low usage. 10.6 in lanes. 

Representatives confirmed the MTA jurisdiction is from Kappock to Dyckman Street. 

There was discussion as to the feasibility of turning over a lane to the Hudson River Greenway or somehow expanding the existing walkway. TBTA staff has rejected giving up a lane. Traffic too heavy, 1800 vehicles per hour requires three lanes to relieve congestion and requires a small shoulder. 

Bob Bender and David Gellman say the only issue is where the two lanes of the southbound HHP turn to three lanes, on bridge or south of it. MTA looked at a possible cantilever for an additional lane, but of course it would be a huge cost though the bridge is ready. Low bike usage does not justify such an expense. 

Gellman suggested move the Jersey barrier slightly over, to which they said no. He also objected to length of pedestrian path closing, saying nothing is being given back to the community. MTA staff also said they cannot create a path to Dyckman Street. 

Mr. Heller said the community board is not altogether happy with a lack of flexibility on bike path issues, and may engage in further correspondence with the MTA. 

The meeting turned toward discussion of requests to install Play Street in various locations. 

1- St. Margaret of Cortona: The principal discussed the merits of the application, safety provided, etc. Approved 9 – 0 – 0 by members M. Heller, R. Press, A. Creaney, D. Fuchs, E. Bell, N. Friedman, H. Young, G. Santiago, M. Joyce. 

2- PS 307, Eames Place: Mr. Heller mentioned the difficulty of the plan as it blocks access to Claflin Avenue, one way northbound from the T intersection with Eames. DI O’Toole agreed that street configuration is difficult. A teacher Rochelle Matera (?) from the school spoke and reiterated the situation, with a bit of disagreement as to how it could happen. There could be a plan to reverse part of Eames but that would have to be an application to DOT. It was mentioned that reduction of their application from full day to one hour in the morning and evening might be more acceptable or mid-day even better. Sylvia 

Minutes of the Traffic & Transportation Meeting, September 20, 2016 Page 3 

Alexander reiterated the need for the closing due to the poor condition of school facilities. After discussion, it was recommended that a meeting take place with the school staff to see if compromise is possible. 

3- Horace Mann: Mr. Heller spoke about how the application is not in compliance with the intent of the application. Mike McCormick, Director of Security told about current configuration of staging on parts of Tibbett Avenue by using the whole street. School security regulates street traffic. The question is, is it necessary to formalize the process, which DOT will not accept. It was asked whether the PD had another process they could implement, or if the traffic flow could be reversed. The current process is in compliance with what FPOA wants. Residents of Tibbett Avenue spoke and said Horace Mann staff has been very cooperative. CB member Paul Ellis spoke and advocated for a solution, even approving the application though it does not fit with the intent. After much discussion, a two tiered approach was selected to continue to flag cars through and explore if the PD or DOT has another methodology. 

It was recommended that the committee take another look at north Riverdale proposal on their website. 

At the next meeting of the committee, scheduled for October 19, there will be discussion of the West 254 street sidewalk issue. 

The meeting was adjourned at 9:30 PM. 

Minutes submitted by Michael Heller. 

Editor's Note:

As the former Vice-Chair of the Traffic and Transportation Committee from June 2014 until May 31, 2016 when I was not reappointed by Bronx Borough President Ruben Diaz Jr. to CB 8, I took the minutes of the meetings, and sent them to the chair Mr. Heller for any revisions or changes. 

I was not present at the September 2016 meeting as I am not listed in the attendance log. However note that I voted twice on two different issues (which are highlighted in bold) as a Community Board 8 member. 

As full disclosure I applied for the vacant position of District Manager of Bronx Community Board 8, and I was the only person to openly admit that I had applied. The Riverdale Press had a front page article for the past two weeks about the secrecy of the process, and revealed that Mr. Michael Heller also applied for the position of District Manger which became known when he and another applicant from the board were asked to leave an Executive Session to discuss the screening committee results since it would be a conflict of interest if they were to be in the room during the discussion.

Rockland County Man Indicted In White Plains Federal Court For Narcotics Trafficking

   Joon H. Kim, Acting United States Attorney for the Southern District of New York, and James J. Hunt, Special Agent in Charge, New York Field Division of the Drug Enforcement Administration (“DEA”), today announced that an indictment was returned by a grand jury charging MATTHEW DRAPER, a/k/a “Mata,” a resident of Haverstraw, New York, with allegedly trafficking wholesale amounts of cocaine in and around Rockland County, New York. DRAPER was arrested on a criminal complaint on October 6, 2016, and has been in custody since that date.

According to the allegations contained in the Indictment and the Complaint[1] charging DRAPER:

DRAPER was part of a cocaine distribution conspiracy responsible for transporting wholesale amounts of cocaine from the Dominican Republic to the New York area on commercial airline flights. The conspiracy relied on contacts working in airports both in the Dominican Republic and in the United States to facilitate the deliveries. From in or around September 2016 through October 5, 2016, DRAPER worked with a confidential informant and a supplier in the Dominican Republic to facilitate the transport of approximately 20 kilograms of cocaine from the Dominican Republic to New York. DRAPER intended to have the confidential informant retrieve the cocaine from the airport and provide it to DRAPER at a predetermined location. On October 5, 2016, DEA agents learned from the confidential informant that the 20 kilograms of cocaine DRAPER purchased from the Dominican Republic had been secreted in luggage, and placed on an airplane scheduled to arrive at JFK Airport. DEA agents were able to locate the airplane and the luggage in question. DEA agents recovered approximately 20 kilograms of cocaine that had been wrapped and sealed in a clear vacuum-sealed bag. DRAPER was arrested that same day attempting to obtain the cocaine from the confidential informant at the predetermined location. Upon his arrest, law enforcement recovered approximately $23,000 in cash and what appeared to be an additional kilogram of cocaine from DRAPER’s vehicle. Law enforcement agents also executed a search warrant on DRAPER’s residence. During the search, agents recovered an additional half-kilogram of a substance that appeared to be cocaine.

DRAPER, 49, of Haverstraw, New York, is charged with one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison, and one count of possession of narcotics with intent to distribute, which also carries a maximum sentence of life in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.

Mr. Kim praised the outstanding investigative work of the Drug Enforcement Administration. Mr. Kim also thanked the Rockland County Drug Task Force and the Town of Haverstraw Police Department Street Crime Unit for their cooperation and assistance in this investigation.

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

---

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

A.G. Schneiderman Announces Arrests Of Two Tax Preparers For Allegedly Filing False Returns

Schneiderman: We Will Not Allow Unscrupulous Individuals To Line Their Own Pockets At The Expense Of Honest Taxpayers

  Attorney General Eric T. Schneiderman and Acting Taxation and Finance Commissioner Nonie Manion today announced the arrests of tax preparers Anibell Perez, 33, of New York, and Sorangel Carrasco, 34 of the Bronx, for charges related to the filing of fraudulent tax returns. According to documents filed in court, both women are alleged to have fraudulently filed tax returns on behalf of taxpayers in which they claimed deductions for false dependent nieces and nephews and requested refunds in excess of what the taxpayers were entitled to receive.

Attorney General Eric Schneiderman said, “We will not allow unscrupulous individuals to line their own pockets at the expense of honest taxpayers. Those who cheat the tax system are stealing from their fellow New Yorkers, and I am pleased to work with my partners in law enforcement as we continue to root out tax fraud.”

Both defendants were arraigned on felony complaints filed in Albany City Court.  Carrasco, a registered tax preparer located in Bronx, NY, has been charged with five counts of Offering a False Instrument for Filing in the First Degree (a Class E Felony), one count of Attempted Grand Larceny in the Third Degree (a Class E Felony), and one count of Grand Larceny in the Fourth Degree (a Class E Felony).  Perez, also a registered tax preparer in Bronx, NY has been charged with four counts of Offering a False Instrument for Filing in the First Degree and one count of Attempted Grand Larceny in the Third Degree.

These arrests are the result of a concerted enforcement effort carried out by the NYS Tax Department to crack down on tax preparers filing fraudulent returns. Attorney General Schneiderman partnered with the NYS Department of Taxation and Finance, Manhattan District Attorney Cyrus R. Vance Jr., Acting Brooklyn District Attorney Eric Gonzalez, Bronx District Attorney Darcel Clark, and Richmond County District Attorney Michael McMahon. The allegations against other individuals by other law enforcement agencies include the following:

Thomas Keeley, 59, of Staten Island

• Prepared several thousand returns since 2011, but nearly half claimed what appeared to be unsubstantiated itemized deductions with usually high job expenses;
• Failed to file his own income tax returns from 2008 through 2015;
• Faces 49 new felony counts for Criminal Tax Fraud and Offering a False Instrument for Filing;
• Pleaded guilty to similar crimes in 2008.

Kevin Webb, 58, of The Bronx

• Filed more than 20 suspicious tax returns with unverified data;
• Faces Criminal Tax Fraud charges;
• Failed to file his own income tax returns from 2013, 2014, and 2015. 

Lorenzo Almanzar, 61, of White Plains

• Filed returns with inflated job expenses on clients’ returns without the client’s knowledge;
• Faces Criminal Tax Fraud charges and;
• Offering a false instrument for filing.

Chatise Thomas, 41, of Brooklyn

• Accused of engaging in schemes aimed at providing her clients with deductions that fraudulently lowered their tax liability;
• Faces both felony and misdemeanor counts of offering a false instrument for filing;
• This year, several of her clients were interviewed, all denying they gave her permission to claim inflated itemized deductions as claimed on their state income tax returns.

Jefferson Sanchez, 33 of New York, Wanda Ramirez, 23 of New York

• Accused of adding false dependents to clients’ tax returns to inflate refunds;
• Both face felony charges of offering a false instrument for filing and; 
• Misdemeanor criminal tax fraud charges. 

Carol Rati, 61, of Brooklyn

• Faces felony counts of offering a false instrument for filing;
• She allegedly filed fraudulent tax returns for her clients claiming false deductions to either increase the refund amount or reduce their tax liability;
• Investigators interviewed more than a dozen of her clients who all said their returns contained false information that they never provided.

“Everyone loses when a tax preparer commits tax fraud, including honest citizens and NYS communities deprived of revenue needed to fund vital services. We will continue to work with all our partners in law enforcement to ensure that unethical tax preparers are held accountable and face justice,” said Acting Commissioner Nonie Manion.

The charges against the defendants are merely accusations and they are presumed innocent unless and until proven guilty.

The Attorney General encourages all New Yorkers to review his tax day tips to avoid frequent tax season frauds.

The Attorney General thanks the New York State Department of Taxation and Finance for their assistance in this investigation.

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

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

  Attorney General Eric T. Schneiderman today announced the sentencing 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 previously 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 will serve 1 to 3 years in state prison, and will pay full restitution over time. Rodriquez Pierre was sentenced in front of Acting Supreme Court Justice Abraham Clott.

“Non-profit employees who steal from taxpayers and use their organizations as a personal piggy bank will be punished,” said Attorney General Schneiderman. “I thank our law enforcement partners in the Department of Investigation for their continued partnership as we work to root out fraudsters who think they can skirt the rules.”

DOI Commissioner Mark G. Peters said, “This defendant committed a reprehensible crime: Stealing hundreds of thousands of dollars from a not-for-profit that provides refuge to some of the City’s most vulnerable New Yorkers.  She cheated the system for personal gain. Now, she’ll serve prison time. DOI thanks the New York State Attorney General’s Office for their collaboration and partnership on this case.”

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

A.G. Schneiderman Announces New Legislation To Criminally Crack Down On Tenant Harassment

New Legislation Would Broaden And Strengthen Existing Tenant Harassment Laws, Make It Easier To Criminally Prosecute Landlords Who Force Rent-Regulated Tenants To Vacate

Schneiderman: With Affordable Housing As Scarce As Ever, It’s Time For Lawmakers To Give Prosecutors New Tools To Stop The Menacing - And Often Dangerous - Measures These Landlords Use To Force Tenants Out Of Their Homes

  Attorney General Eric T. Schneiderman unveiled new legislation today aimed at holding the city’s most unscrupulous landlords criminally accountable for tenant harassment. Current state law demands prosecutors reach an inexplicably high bar in order to criminally charge landlords with harassment of rent-regulated tenants—which is why in the past twenty years, not a single landlord has ever been convicted of the crime of Harassment of a Rent Regulated Tenant. The AG’s legislation would change that, by setting a more reasonable standard that removes the need to prove physical injury to a tenant, and opens the door to prosecutions arising out of more commonplace and insidious tactics, such as turning off heat and hot water, exposing young children to lead dust, and making rent-stabilized buildings deliberately uninhabitable for current tenants and their families.

The legislation introduced today is just the most recent action taken by the AG to stem a rising tide of tenant harassment complaints across New York City. The AG's other work includes:

• Launching a new team to enhance and streamline the office’s resources to combat tenant harassment, deceptive lending practices, deed theft, bank fraud, and other housing issues facing constituents.
• Charging landlords and management companies for alleged illegal practices to harass or endanger rent-regulated tenants.
• Filing felony charges against landlords who allegedly commit mortgage fraud or fraudulently refinance loans.
• Formed the Tenant Harassment Prevention Task Force with city and state officials

“Our current laws are outdated, ineffective, and totally inadequate to keep tenants safe from unscrupulous landlords seeking to unlawfully evict New York families. With affordable housing as scarce as ever, it’s time for lawmakers to give prosecutors new tools to stop the menacing - and often dangerous - measures these landlords use to force tenants out of their homes,” said Attorney General Schneiderman. “Protecting vulnerable tenants has been, and will remain, a top priority of my office.”

“Toughening up criminal penalties helps us level the playing field and protect tenants victimized by greedy, negligent landlords who put their own profit ahead of the rights of those paying the rent,” said Mayor Bill de Blasio. “I applaud Attorney General Schneiderman's move to make it harder for bad actors to harass tenants, and will join him in advocating for this important penal law change.”

“Stronger tenant harassment legislation will deter potential unconscionable acts and help tenants feel more secure in filing charges against any unscrupulous landlords,” said New York City Council Speaker Melissa Mark-Viverito. “I commend Attorney General Schneiderman for his work on this very important bill that will extend protections to all tenants. The New York City Council last week introduced a tenant harassment protections package of legislation that will work conjunction with this bill, and we will continue to partner with the Attorney General to protect everyone in our City — especially the most vulnerable.”

Under the existing Harassment of a Rent Regulated Tenant statute, a prosecutor must not only prove that the offending landlord intended to cause the tenant to vacate their home, but also that the tenant sustained physical injury due to the landlord’s actions and that the landlord actually intended to cause (or acted with criminal recklessness in causing) such injury. This existing Penal Law statute creates an inexplicably high bar that – in the nearly two decades since the law was enacted – has never been met. In fact, a recent analysis of NYS Division of Criminal Justice Services data shows that not a single landlord has ever been convicted of the crime of Harassment of a Rent Regulated Tenant.

The Attorney General’s legislation would eliminate the need to prove physical injury to a tenant, and a landlord’s specific intent to cause it, in order to secure a criminal conviction against an offending landlord. Specifically, the legislation:

• Adds a new class A misdemeanor that would apply to landlords and their agents who, with the intent to cause a rent regulated tenant to vacate their home, engage in a “course of conduct” that is reasonably likely to, and does in fact, interfere with and disturb the comfort, repose, peace and quiet of such tenant in the use of their home;
• Expands the existing class E felony Penal Law statute to make it unlawful for landlords or their agents to attempt to force tenants in two or more rent-regulated units to move out by engaging in a “systematic ongoing course of conduct” or “repeatedly committing acts over a period of time” that “is or are reasonably likely to interfere with and disturb, and does or do interfere with and disturb, the comfort, repose, peace and quiet” of such tenants in the use of their homes; and
• Makes it a class E felony for a landlord to commit the new class A misdemeanor offense after he or she has been convicted of that crime within the preceding five years.

These provisions make it easier for prosecutors to curb common tactics used by landlords to force out tenants, including long and disruptive construction projects, deprivation of hot water and heat for extended periods of time. The new class A misdemeanor imposes a maximum penalty of up to one year in jail. The class E felony carries a maximum sentence of up to four years in prison.

Earlier today, Attorney General Schneiderman released new “Know Your Rights” guidance for immigrant tenants facing landlord harassment on the basis of immigration status.

BRONX MAN SENTENCED TO 25-YEARS-TO LIFE IN PRISON FOR MURDER OF 28-YEAR-OLD AFTER DRUG DEAL

Defendant Bludgeoned Victim Over Counterfeit Bill 

  Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to 25 years-to-life in prison for the fatal beating of a 28-year-old man, who was pummeled to death with a wooden tree stake after a drug deal went sour. 

  District Attorney Clark said “The defendant viciously beat to death a young man, ending his life over fifty dollars. Now, at the age of 20, Mr. Rodriguez will spend the majority of his life behinds bars for this brutal crime.” 

  District Attorney Clark said the defendant, Ruben Rodriguez, AKA Butta, 20, of 1424 Walton Avenue, was sentenced today before Bronx Supreme Court Justice Alvin Yearwood to 25 years-to-life in prison. Rodriguez was convicted by a jury of second-degree Murder on March 24, 2017. His co-defendant, Marquis Carter, 24, pleaded guilty to first-degree Manslaughter and was sentenced on April 4, 2017 to 14 years in prison followed by five years post-release supervision. 

  According to trial testimony, on the early morning of April 23, 2014, in the area of Grand Concourse and Rockwood Street in Mount Eden, Rodriguez and Carter met with Luis Melendez to engage in a drug deal. After receiving a fake $50 bill from Melendez, the defendants repeatedly hit the victim with wooden sticks, striking his head and body, and causing his death.

  DA Clark thanked Detective Edwin Perez of the 44th Precinct and Detective Peter Cullen from Bronx Homicide, as well as the BXDA Video Unit and BXDA Detective Investigators for their assistance.