Former Hunts Point Police Benevolent Association President Charged With Embezzlement Of Union Funds

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Andriana Vamvakas, District Director of the Office of Labor-Management Standards, U.S. Department of Labor (“OLMS”), announced today the arrest of VICTOR DAVILA, the former president of the Hunts Point Police Benevolent Association (“HPPBA”), for embezzling union funds. As alleged in a Complaint unsealed today, DAVILA stole more than $35,000 from the HPPBA by fraudulently charging personal expenses to the HPPBA and by withdrawing thousands of dollars in cash from union accounts for his own purposes. DAVILA will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn.

Acting Manhattan U.S. Attorney Joon H. Kim said: “Victor Davila allegedly embezzled thousands of dollars from the union he was entrusted to serve as its president. Instead of serving his fellow police officers, he allegedly stole from them, using union funds to pay for his own travel to Puerto Rico, meals, and other personal expenses.”

DOL-OLMS District Director Andriana Vamvakas said: “Union officials are required to use the union’s funds only for legitimate purposes, not their own personal gain. Financial mismanagement by union officials not only breaks the law, it betrays the trust their membership placed in them.”

According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:

The HPPBA is the union for peace officers who work at and patrol the Hunts Point Market in the Bronx, New York. DAVILA served as the elected president of the HPPBA from in or about March 2011 through in or about March 2014. Beginning in at least July 2011, only months after becoming the union’s president, through February 2014, DAVILA stole money from the union by using an HPPBA debit card, linked to an HPPBA checking account, to charge expenses with no apparent relation to the business of the HPPBA, including, among other things: (1) multiple charges at a wholesale club in Westchester, New York, including for the purchase of eggs, soap, facial cream, a baking set, a waterproof camcorder, flowers, a video game, a mystery novel, women’s clothing, and a showerhead, (2) multiple charges at fast food and other restaurants, and (3) multiple charges for plane tickets to Puerto Rico. In addition, DAVILA withdrew thousands of dollars in cash from the HPPBA checking account using ATMs, and frequently then deposited corresponding amounts of cash into his own bank account. Based on the investigation to date, it appears that DAVILA stole more than $35,000 in total from the HPPBA.

DAVILA, 50, of the Bronx, New York, was arrested this morning in Manhattan. DAVILA was charged with embezzling union funds, which carries a maximum sentence of five years in prison. 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 efforts of the United States Department of Labor, Office of Labor-Management Standards, in this investigation.

This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Jacob Warren is in charge of the prosecution.

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

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

Former Correction Officer Pleads Guilty To Civil Rights Violation For Sexual Assault Of Inmate At Bedford Hills Correctional Facility For Women

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JEFFREY GREEN, a former correction officer at the Bedford Hills Correctional Facility for Women (the “Bedford Facility”), pled guilty today before U.S. Magistrate Judge Paul E. Davison to violating the constitutional civil rights of an inmate by sexually assaulting her at the Bedford Facility.

Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted in court today, Jeffrey Green sexually assaulted a defenseless female inmate. Green betrayed his duty as a correction officer and violated the Constitution. The protections of our Constitution do not end at our prisons’ walls.”

According to the allegations contained in the Information to which GREEN pled guilty today, and the related Complaint in which he was originally charged on February 15, 2017:

The Bedford Facility is a jail complex located in Bedford Hills, in Westchester County, New York, maintained by the New York State Department of Corrections and Community Supervision. At the time of the assault, Victim-1 was an inmate incarcerated at the Bedford Facility.

In the late evening hours of March 10, 2016, GREEN unlocked and opened the cell of Victim-1, and entered her cell unaccompanied by any other correction officer or other Bedford Facility staff. GREEN then grabbed Victim-1 by her arms, held her with her back against the wall of her cell, and began to lick, kiss, and bite her neck area, and to fondle her chest. After Victim-1 pushed GREEN away, he grabbed her, pushed her up against the wall of her cell, and again forced himself on her. GREEN then pulled up the shirt and bra of Victim-1 and bit, licked, and kissed her neck, chest, and breast and nipple areas, and fondled Victim-1’s groin area. GREEN was subsequently interrupted by the arrival of another correction officer knocking on a door to be admitted into the unit, upon which GREEN immediately departed Victim-1’s cell.

Victim-1 reported the assault the following morning, and a medical examination produced samples taken from Victim-1’s neck, left breast, and right breast that gave positive results with a presumptive test for saliva. A swab from Victim-1’s left breast generated a single-source male profile.

JEFFREY GREEN, 48, of Brooklyn, New York, pled guilty to one count of violating the constitutional civil rights of an inmate by subjecting her to cruel and unusual punishment, by subjecting her to abusive sexual contact, which carries a maximum sentence of one year in prison.

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.

GREEN is scheduled to be sentenced by Judge Davison on August 7, 2017.

Mr. Kim praised the investigative work of the New York State Department of Corrections and Community Supervision Office of Special Investigations and the Criminal Investigators at the United States Attorney’s Office. He also thanked the Westchester County District Attorney’s Office for their assistance in the investigation.

A.G. Schneiderman Announces Jail Time, Fine For Former Village Justice Who Traded Lenient Treatment In Exchange For Sexual Favors

Delmar House Sentenced To 4 Months In Jail, 5 Years’ Probation, And $5K Fine After Admitting To Reducing Fine For Defendant In Exchange For Sexual Favors While Serving As Justice For Village Of West Carthage

Schneiderman: Public Officials Who Abuse Their Power Will Be Held Accountable

  Attorney General Eric T. Schneiderman today announced that Delmar House, the former Village Justice for the Village of West Carthage Court in Jefferson County, was sentenced to four months in jail and five years’ probation, plus a $5,000 fine, after being found guilty of abusing his position as a Judge by reducing a fine for a defendant who appeared before him in exchange for sexual favors, and by paying a portion of that defendant’s fines in exchange for additional sexual favors. House previously entered guilty pleas before The Honorable Kim H. Martusewicz in Jefferson County Court, to the charges of Bribe Receiving in the Third Degree in violation of Penal Law § 200.10, a class “D” felony and Receiving a Reward for Official Misconduct in the Second Degree in violation of Penal Law § 200.25, a class “E” felony.

“The judge’s actions represent gross misconduct,” said Attorney General Schneiderman. “Today’s sentencing sends the message, loud and clear: public officials who abuse their power will be held accountable.”

House was the Village Justice for the Village of West Carthage Court from January 2008 through March 2016, when he resigned. According to filed documents and statements made in court, 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, House paid a portion of that defendant’s fines in exchange for more sexual favors. 

House appeared Tuesday, May 2, 2017 before Judge Martusewicz, where he was sentenced to four months’ incarceration and five years’ probation and was ordered to pay a $5,000 fine.

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.

Comptroller Stringer: City Fines Generate New, Record-high Revenue

Revenues from fines rise 4 percent over last fiscal year

City collected nearly $1 billion in fines in FY 2016 – a 16 percent jump since FY 2012

”Quality of Life” violations jump 50 percent since 2013, to 700,000; revenues up 37 percent

  The City collected $993 million in fines in FY 2016, a new record high for fine collection and a 16 percent increase since FY 2012, according to new data released today by Comptroller Scott M. Stringer. While parking violations account for, by far, the largest category of fines, the rise was fueled by a spike in quality of life violations. The City issued nearly 700,000 quality of life violations in FY 2016, up 51 percent since FY 2013, generating a total of $184 million. Parking violations accounted for 55 percent of all revenues from fines in FY 2016, now reaching $545 million in FY 2016.

“Fines are an important tool to discourage behavior that can be harmful to others, like with Vision Zero. At the same time, with cost of living rising and rents soaring, New Yorkers feel squeezed, and unnecessary fines or overly-aggressive enforcement don’t help,” said Comptroller Scott M. Stringer. “We release this data to deliver transparency, and to find out where we can improve. We have to keep working to strike the right balance between effective enforcement and not overburdening our residents.”

New York City imposes fines for violations of various City laws and regulations, including regulations related to parking, building codes, consumer affairs, and public health and safety. Among fines:

• The City issues anywhere between 9 and 11 million parking tickets per year. In FY 2016, parking violations raised $545 million, or 55 percent of all total City revenues from fines. Revenue from parking tickets has risen $32 million between FY 2012 and FY 2016.

• Since 2010, speed cameras have been installed at 150 intersections. Red light camera revenues peaked in FY 2011 at $71 million and have been falling since as the number of tickets dropped, likely due to increased motorist awareness.

• “Quality of Life” violations such as littering and noise pollution, sidewalk violations and public health and safety violations generated $184 million, rising $41 million between FY 2012 and FY 2016. Approximately 700,000 “quality of life” violations were issued last year, roughly two-thirds of which came from the Department of Sanitation for improper waste disposal, dirty sidewalks, and other trash or public cleanliness infractions.

• Over that timeframe, revenues from restaurants and other small business violations have decreased by $27 million, consistent with Mayor de Blasio’s “Small Business First” initiative to ease the burden on small businesses.

• In FY 2016, revenue from fines placed against retail stores and tobacco dealers totaled $10 million, 33 percent less than collections of $14 million in FY 2012.

To read the full report, click here.

To view additional data tables, click here.

A.G. Schneiderman and NYC Comptroller Stringer Announce Arrest of Public Works Contractor Charged With Prevailing Wage Theft of Nearly $700K

Defendant Allegedly Failed To Pay $691,040 In Prevailing Wages And Benefits To Ten Workers Performing Construction On Bronx Public Schools

   Attorney General Eric T. Schneideman and New York City Comptroller Scott M. Stringer announced the arrest of contractor Vickram Mangru on charges that he underpaid wages and benefits to workers on a publicly-funded New York City construction project. The arrest is part of an ongoing investigation into widespread allegations of prevailing wage theft at New York City public works projects.

Contracted to perform work on several New York City Department of Education (NYCDOE) public schools in the Bronx between December 2012 and April 2014, Mangru – while doing business as Vick Construction out of Valley Stream, New York –was charged with allegedly cheating six workers out of $301,683 in wages.  Vick Construction and Mangru had previously been debarred and banned for a five-year period from performing public work projects by the New York City Comptroller’s Office for failing to pay proper prevailing wages to workers. On December 31, 2013, Mangru entered into a settlement agreement, admitting he underpaid workers by $34,347 in prevailing wages and supplements.

Undeterred, Mangru allegedly continued to operate in several public schools and continued to pay well below proper prevailing wage rates, forming AVM Construction in January 2014. AVM Construction was purportedly owned by Mangru’s son Ravi Mangru and his wife Gayatri Mangru, who both claimed to be the company’s president. However, according to workers, Mangru ran the day to day operations of AVM Construction, including directly supervising the work and paying employees.

Between April 2014 and February 2015, Mangru is alleged to have continued working on multiple NYCDOE school projects in the Bronx. An investigation determined that Mangru, now operating under the umbrella of AVM Construction, allegedly failed to pay proper prevailing wages to ten workers on those school projects by an additional $389,357 during the ten-month period.

In total, Mangru allegedly failed to pay $691,040 in prevailing wages and benefits to ten workers, from December 2012 to February 2015.

“Prevailing wage laws exist to protect workers and ensure that they are fairly compensated. As we allege, the defendant repeatedly broke the law, stealing nearly $700,000 in wages from ten of his employees,” said Attorney General Schneiderman. “Those who attempt to cheat hard-working New Yorkers out of their wages and benefits should take note: you must pay workers proper prevailing wages on taxpayer-funded projects – or face the consequences.”

“We don’t take the step of barring City contractors lightly, but when we do debar them, we expect them to comply. In this case, that didn’t happen – and that’s why we referred this case to Attorney General Schneiderman.  Mr. Mangru now finds himself facing criminal charges,” said NYC Comptroller Scott M. Stringer. “With the climate we’re in, it’s more important than ever that we protect vulnerable citizens from being cheated out of their hard-earned wages. The message today is clear: If you target vulnerable New Yorkers, we’re going to take action.”

“We have a strict process in place to carefully vet contractors working on DOE projects,” said NYC Schools Deputy Chancellor Elizabeth Rose. “We commend Attorney General Schneiderman for protecting the rights of hard-working New Yorkers and for holding this vendor accountable.”

Mangru is also accused of falsifying business records, including misleading and inaccurate payroll records listing the hours worked and wages paid to his workers, to the New York City Department of Education’s Division of School Facilities in an attempt to cover up the underpayments he made while doing business as Vick Construction.

Mangru is charged with Failure to Pay the Prevailing Rate of Wage or Supplements and with five counts of Falsifying Business Records in the First degree—all felonies.  If convicted of the top count against him, Mangru faces five to 15 years in prison, debarment for an additional five years, and restitution payment for his workers.

The arrest of Vickram Mangru is part of an ongoing effort to root out prevailing wage violations in New York City. Eight other subcontractors have been arrested in the past two and a half years for allegedly violating prevailing wage laws.  Those arrests involved work performed at P.S. 196K in Brooklyn; P.S. 7X in the Bronx; the NYCHA Pomonok Houses development in Fresh Meadows, Queens; and, NYC HPD’s Sugar Hill houses in Harlem.

The defendant was arraigned on May 2,2017 and was released on his own recognizance. The charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.

CONGRESSMAN ADRIANO ESPAILLAT OPPOSES OMNIBUS BUDGET DEAL, WILL VOTE AGAINST SPENDING PACKAGE

Additional Spending Will Significantly Contribute to Trump Administration Anti-Immigrant Policy Agenda

  Congressman Adriano Espaillat (NY-13) released the following statement regarding his opposition to the Omnibus Appropriations Act budget deal, which is expected to be voted on in the House later today.

“I am pleased that we found a solution to keep the government open through October and that this deal does not include funding for President Trump’s border wall, nor does it eliminate money for sanctuary cities. There are several issues that I am proud to champion that will be further supported through this legislation – programs such as the National Institutes of Health (NIH), Child Care and Development Block Grants (CCDBG), Pell Grants, nutrition programs for seniors, Planned Parenthood, affordable housing and Head Start.

“However, the devil is in the details, and after further reviewing this total package, I cannot, in good conscience, support it. This bill will increase funding for defense and homeland security and is essentially $1.2 billion of President Trump’s original $3 billion request for border security and interior enforcement.  We have had more than 100 days to fully understand Trump’s anti-immigration agenda – and by now, we fully know that any funding for homeland security, border security and enforcement directed to the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP), at this point, will be used to increase raids and detentions by these agencies with little to no oversight or accountability, essentially funding the President Trump’s mass deportation agenda.

“The Omnibus bill will strengthen mass deportations under Trump and does not provide a long-term solution for Puerto Rico’s economic crisis, leaving Puerto Rico’s Medicaid funding with only a third of the funding it needs. Short-term stopgap measures, like the one included in this bill, fail to appropriately address the real, year-long funding issues that Puerto Rico faces now and will continue to face just months after this spending bill passes.  I have grave concerns as this bill will significantly increase raids, deportations, detentions, border security and immigration enforcement all in the name of national security, and I will not and cannot turn my back on immigrants, immigrant families, immigrant children in my district or communities across the nation by supporting this funding package.

“More so, this spending bill comes at the same time as President Trump and House Republicans continue to push the American Health Care Act (AHCA), which will cut crucial Medicaid spending by $880 billion over the next ten years and cuts taxes for the rich by $600 billion.  Even worse, The Trump administration continues to make backroom deals that target immigrants and the sick and elderly to pass this harmful and unpopular bill. I cannot support a spending bill at a time when the Administration sees it fit to increase defense and homeland security enforcement spending, while gutting critical health care programs through their healthcare bill.”

Assemblymember Pichardo: We must protect our children from gun violence

     “Our families’ lives have been put at risk far too many times because guns have become so widespread and accessible in the Bronx. More guns are flooding into our neighborhoods every day, threatening our safety. We need to take a stand before this situation gets any worse. Just yesterday, two loaded handguns were found underneath a car outside of I.S. 206 – a middle school – where any kid could have easily picked one up and accidentally shot themselves or someone nearby.

    “We’re very lucky that the school only had to go into a lockdown. But that’s no way for our children to have to live – they should be learning about science, history and math in school, not about guns. We can’t allow the spread of gun violence to take their childhoods. We need to find out where these guns are coming from and put an immediate stop to this. If we don’t, we’ll be robbed of the sense of safety and community we’ve built here in the Bronx.

    “As your representative in Albany, I’ve worked hard to get guns off our streets. I’ve co-sponsored legislation to create a pilot program to reduce urban youth gun violence (A.2422) as well as legislation to prohibit people on the consolidated terrorist watchlist from possessing a firearm (A.2959). Further, I’m pushing to make background checks more effective by giving law enforcement more time to perform a check and dealers to report prohibited purchasers (A.3438). I’m fighting up in Albany so we can have safer streets here at home in the Bronx.”

EXECUTIVE DIRECTOR OF NEW YORK CITY NON-PROFIT ORGANIZATION AND HIS WIFE FOUND GUILTY IN MANHATTAN FEDERAL COURT OF CORRUPTION OFFENSES

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that KWAME INSAIDOO, the former executive director of United Block Association (“UBA”), a New York-based non-profit organization, and his wife ROXANNA INSAIDOO, were found guilty in Manhattan federal court of embezzlement from a federally funded program, money laundering, and defrauding their mortgage lender. KWAME INSAIDOO was also found guilty of defrauding the City of New York in connection with UBA’s contracts to operate senior centers in Upper Manhattan. The jury convicted KWAME and ROXANNA INSAIDOO on all counts in the superseding indictment following a one-week trial before U.S. District Judge Valerie E. Caproni.

​Acting U.S. Attorney Joon H. Kim said: “As a unanimous jury found today, Kwame Insaidoo and his wife Roxanna Insaidoo stole hundreds of thousands of dollars from a government-funded non-profit organization that operated senior centers in Manhattan, and used that money to pay for luxury cars and personal expenses. The defendants’ brazen theft deprived some of the City’s neediest residents of public money for healthy meals and senior citizen programs. Despite efforts to hide their schemes, including the use of a fake charity, the outstanding investigative work of our partners at the New York City Department of Investigation exposed the defendants’ conduct, and the jury swiftly convicted them.”

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

UBA is a non-profit organization headquartered in New York, New York, that was controlled by KWAME INSAIDOO, its former Executive Director. UBA received funding from New York City’s Department for the Aging to operate and provide healthy meals and programming at four senior centers in Upper Manhattan. From in or about July 2008 through March 2015, the Department for the Aging paid UBA more than $8,700,000 in federal, state, and local funds to provide such services.

As found by the jury, ​KWAME INSAIDOO, with the assistance of his wife ROXANNA INSAIDOO, abused his authority as UBA’s executive director by embezzling over $580,000 from UBA. KWAME INSAIDOO and ROXANNA INSAIDOO, who were both signatories on a UBA bank account that was not subject to audits by the City, wrote hundreds of checks from that UBA account to themselves, their son, and a fake charity they used to launder some of the money. The defendants used the stolen funds to pay for personal expenses, including their home mortgage, the purchase of a Mercedes Benz and a Cadillac, and telephone bills and other personal utilities. They also wired more than $300,000 abroad.

​In addition, KWAME INSAIDOO repeatedly lied to the Department for the Aging in an effort to evade scrutiny for these unauthorized payments and to maintain UBA’s funding.

In 2011, KWAME and ROXANNA INSAIDOO also engaged in a scheme to defraud their mortgage lender, in connection with a modification of their mortgage under the federally sponsored Home Affordable Modification Program, by underreporting their income and assets. This scheme led to a write-off of almost $200,000 from KWAME and ROXANNA INSAIDO’s home mortgage.

KWAME INSAIDOO, 60, and ROXANNA INSAIDOO, 63, both of Bay Shore, Long Island, were each found guilty of embezzlement from a federally funded program, conspiracy to commit money laundering, wire fraud of their mortgage lender, and conspiracy to commit wire fraud of their mortgage lender, each of which carries a maximum penalty of 20 years in prison, and also each was found guilty of conspiracy to embezzle from a federally funded program, which carries a maximum penalty of five years in prison. KWAME INSAIDOO was also found guilty of one count of defrauding the City of New York, which carries a maximum penalty of 20 years in prison. Their sentencings are set for August 11, 2017, before the Honorable Valerie E. Caproni.

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.

Acting U.S. Attorney Kim praised the outstanding investigative work of the New York City Department of Investigation and the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.