Tuesday, May 16, 2017
READOUT: MAYOR DE BLASIO MEETING WITH U.S. TREASURY SECRETARY STEVEN MNUCHIN
Mayor Bill de Blasio met this afternoon with United States Treasury Secretary Steven Mnuchin. The Mayor thanked the Secretary for his help in securing federal funding for the local protection of the President’s residence and family. The Mayor outlined the threats tax and healthcare reform pose to New York City’s economy and budget. The Mayor and Secretary also discussed their shared commitment to finding solutions surrounding public and private infrastructure investment and in navigating the federal regulatory framework. The meeting lasted 35 minutes.
CITY HALL IN YOUR BOROUGH: MAYOR DE BLASIO TO HOLD TOWN HALL WITH COUNCIL MEMBER PALMA
On Wednesday, May 24, as part of City Hall in Your Borough week, Mayor Bill de Blasio will host a town hall with residents of the 18th Council District, represented by Council Member Annabel Palma in addition to Bronx Borough President Ruben DÃaz, Jr., U.S. Representative José Serrano, State Senator Ruben DÃaz, Sr. and State Assembly Member Luis Sepúlveda.
Residents of the 18th Council District are asked to RSVP by Friday, May 19 at noon via email at townhallrsvp@cityhall.nyc.gov or by calling (212) 788-1412.
Co-sponsors for the town hall include Community Board 9, the 43rd Precinct Council, Kips Bay Boys & Girls Club and Phipps Neighborhoods.
City Hall in Your Borough is a week-long series of satellite office hours by Mayor de Blasio, top City officials and commissioners. The week will include meetings with local groups, various stops and events across the borough.
WHAT: Council District 18 Town Hall
WHEN: Wednesday, May 24, 2017
Doors open at 6:00 P.M.
Program begins at 7 P.M.
WHERE: Adlai E. Stevenson High School
1980 Lafayette Avenue
Bronx, NY 10473
News From Congressman Eliot Engel
Engel Cosponsors MYDATA Act to Protect Internet Privacy
Congressman Eliot Engel, a leading member of the House Energy & Commerce Committee, has cosponsored the MYDATA Act, a bill that would protect broadband users from unfair or deceptive practices relating to privacy or data security.
The MYDATA Act would give the Federal Trade Commission (FTC) jurisdiction over broadband providers, and would empower the FTC to promote rules that prohibit unfair and deceptive practices relating to privacy and data security across the Internet. As it currently stands, the FTC is unable to adequately protect consumers from these types of practices by broadband companies, due to a loophole in the Federal trade Commission Act.
“We live in a digital age which means controlling how our personal information is disseminated online is a difficult task,” Engel said. “Republicans in Congress and the White House have made it virtually impossible by allowing broadband providers to use and sell Americans’ sensitive information about their health, finance and families without their permission. The MYDATA Act would help swing the pendulum back toward the consumer by giving the FTC the teeth it needs to establish safeguards for privacy and data security across the internet.
“Your personal information should not be a commodity for-sale to the highest bidder. We must take action to correct this glaring gap in the law on this crucial concern.”
The MYDATA Act was introduced by Rep. Jerry McNerney in May of 2017.
ENGEL STATEMENT ON TRUMP'S REPORTED DISCLOSURE OF CLASSIFIED MATERIAL TO RUSSIANS
Representative Eliot L. Engel, Ranking Member of the House Committee on Foreign Affairs, today made the following statement:
“I am shocked by reports that President Trump revealed highly classified information to Russian diplomats last week. This certainly raises questions about whether the President recognizes the serious implications of disclosing such sensitive information to an adversary.
“I will be meeting later this week with National Security Advisor McMaster in a classified session, and will seek answers about what was revealed and how it could damage American national security.
“It’s time for Congress to come together in a bipartisan way, establish an independent commission to investigate, and get to the truth.”
WHAT YOU SHOULD KNOW - It’s About Time for Senator Jeff Klein and Mike Gianaris to have a serious conversation
By Senator Rev. Rubén DÃaz
32nd Senatorial District, Bronx County, New York
It’s About Time for Senator Jeff Klein and Mike Gianaris to have a serious conversation
You should know that it is sad to see the way in which the Leaders of the New York State Senate Democratic Conferences are allowing their Conferences to be the laughing stock of Albany.
It’s time for Senator Jeff Klein and Senator Mike Gianaris to sit down and have a serious conversation before they destroy the Regular and Independent Democratic Conferences, taking everybody down with them.
I, for one, learned my lesson in 2009 when I was a part of the Four Amigos: former Senators Pedro Espada, Carl Kruger, Hiram Monserrate, and myself. Our search for power and equality almost destroyed the Senate Democratic Conference.
Now, in 2017, we are starting to see how both Democratic Conferences have become the target of the press and the topic of the day.
It is sad to see how workaholics and dedicated public servants, like Senator Diane Savino and others, are being thrown under the bus just because other people ambition for power.
I have to say that Senator Diane Savino never misses a Committee meeting, and is present at every event she can possibly attend. She works hard and is dedicated to her duties and like others, deserves not only the stipend she receives, but more.
I am afraid that the power struggle and the personal dislike that Senator Jeff Klein and Senator Mike Gianaris feel toward each other could be the destruction of both Senate Democratic Conferences, taking other Members with them, even including some from the Republican Conference.
Ladies and gentlemen, the press is loving this. Since 2009, the press has been saying that Albany is full of corruption and that we are all corrupt. I am afraid that with these personal animosities, calling for investigations, and trying to destroy the reputations of others, we are going down the wrong path to achieve unity within the Democratic Conference and control of the Senate.
I would like to offer my 2 cents, and give my humble opinion to these two good Democrats and distinguished Senators Gianaris and Klein who have always shown their commitment, love and dedication to their community and party.
They should sit down and put aside any personal animosities they may have for each other, and have a serious conversation about the future of the Senate Democratic Conferences. Otherwise we will go back to 2009, and I know what I'm talking about.
I am Senator Rev. Rubén DÃaz, and this is what you should know.
EDITOR'S NOTE:
State Senator Reverend Ruben Diaz Sr. is now running for the 18th City Council seat. We wish him well in that Democratic Primary.
ENOUGH SAID.
Saturday, May 13, 2017
“BMB” Gang Associate Sentenced To 15 Years In Prison In Connection With 2011 Shooting Of Eight People
Joon H. Kim, Acting United States Attorney for the Southern District of New York, announced that ONEIL DASILVA, a/k/a “Soxx,” a/k/a “Bobby Soxx,” an associate of the violent Big Money Bosses (“BMB”) street gang, was sentenced today to 15 years in prison in connection with a shooting in 2011 at a backyard party in the Bronx, New York, during which eight people were shot, including a 13-year-old girl and a 14-year-old girl. DASILVA pled guilty on December 8, 2016, before United States District Judge Alison J. Nathan, who also imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “Oneil Dasilva, a Big Money Boss gang associate, terrorized his neighborhood in the Bronx, engaging in a reckless shooting spree that led to eight people, including two young teenagers, getting shot. For his crimes, Dasilva will now spend 15 years in a federal prison. Gang and gun violence must be confronted forcefully, as we did in this case with our law enforcement partners.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea and sentencing proceedings:
DASILVA was an associate of BMB, a subset of the “Young Bosses,” or “YBz” street gang, which operates throughout New York City. Between 2007 and 2016, members and associates of BMB committed numerous acts of violence against rival gang members in the Bronx and sold crack cocaine and marijuana.
As part of his involvement in with BMB, on September 4, 2011, DASILVA opened fire at a backyard barbeque in the vicinity of 221st Street in the Bronx. Eight people were shot, including a 13-year-old girl and a 14-year-old girl. All of the victims survived.
DASILVA was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. DASILVA was charged in an Indictment unsealed on April 27, 2016 (United States v. Nico Burrell et al., 15 Cr. 95), charging 63 members and associates of BMB with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and/or firearms charges. To date, 47 of these defendants have pled guilty.
Mr. Kim praised the outstanding work of the NYPD’s Bronx Gang Squad, HSI, DEA, and ATF.
Bronx Week Community Board Member Celebration
Thursday night Bronx Borough President Ruben Diaz Jr. invited all twelve Bronx Community Board members to a celebration of the members volunteer work for their respective community board. There are twelve Bronx Community Boards which can have up to fifty members which include the local City Council members (in a non voting position) if their council district overlap a community board.
There was a good turnout of Bronx Community Board members, and there were special treats for the board members to taste from various Bronx eating establishments.
Above and Below - BP Diaz Jr. took some photos with board members who arrived before the ceremony.
Above - Members from Community Board 7.
Below - Members from Community Board 8.
Above - BP Diaz Jr. speaks with his coordinator of Bronx Community Boards Mr. Tom Lucania as the BP enjoys a piece of delicious Lloyd's Carrot Cake, one of the special treats of the night.
Below - Members of the Star of the Sea Cadets get ready to present the colors as the ceremony is about to start.
Acting Manhattan U.S. Attorney Announces $5.9 Million Settlement Against Real Estate Corporations Alleged To Have Laundered Proceeds Of Russian Tax Fraud
Defendant Prevezon Holdings Ltd. Agrees to Pay $5,896,333.65, Triple the Fraud Proceeds Alleged to Be Directly Traceable to the Defendants
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States has settled a money laundering and civil forfeiture action against assets of 11 corporations, including some that own luxury residential and high-end commercial real estate in Manhattan. The Government’s complaint alleged that the defendant corporations laundered some proceeds of a $230 million Russian tax refund fraud scheme involving corrupt Russian officials that was uncovered by Sergei Magnitsky, a Russian lawyer who died in pretrial detention in Moscow under suspicious circumstances and was posthumously prosecuted by Russia.
In the stipulation of settlement filed with U.S. District Judge William H. Pauley III today, which is still subject to approval by the Court, one of the defendant corporations, Prevezon Holdings Ltd., agrees to pay $5,896,333.65 to resolve the Government’s claims against all defendants. This payment represents triple the value of the proceeds that the Government alleged could be traced directly from the Russian treasury fraud to the defendants ($1,965,444.55), and more than ten times the amount of proceeds the Government alleged could be traced directly to property in New York (approximately $582,000).
Acting Manhattan U.S. Attorney Joon H. Kim said: “We will not allow the U.S. financial system to be used to launder the proceeds of crimes committed anywhere – here in the U.S., in Russia, or anywhere else. Under the terms of this settlement, the defendants have agreed to pay not just what we alleged flowed to them from the Russian treasury fraud, but three times that amount, and roughly 10 times the money we alleged could be traced directly into U.S. accounts and real estate.”
The Government’s lawsuit alleged as follows:
In 2007, a Russian criminal organization engaged in an elaborate tax refund fraud scheme resulting in a fraudulently obtained tax refund of approximately $230 million from the Russian treasury. As part of the fraud scheme, members of the organization stole the corporate identities of portfolio companies of the Hermitage Fund, a foreign investment fund operating in Russia. The organization’s members then used these stolen identities to make fraudulent claims for tax refunds.
In order to procure the refunds, the criminal organization fraudulently re-registered the Hermitage companies in the names of members of the organization, and then orchestrated sham lawsuits against these companies. These sham lawsuits involved members of the organization as both the plaintiffs (representing sham commercial counterparties suing the Hermitage companies) and the defendants (purporting to represent the Hermitage companies). In each case, the members of the organization purporting to represent the Hermitage companies confessed full liability in court, leading the courts to award large money judgments to the plaintiffs.
The purpose of the sham lawsuits was to fraudulently generate money judgments against the Hermitage companies. Members of the organization purporting to represent the Hermitage companies then used those money judgments to seek tax refunds. The basis of these refund requests was that the money judgments constituted losses eliminating the profits the Hermitage companies had earned, and thus the Hermitage companies were entitled to a refund of the taxes that had been paid on these profits. The requested refunds totaled 5.4 billion rubles, or approximately $230 million.
Members of the organization who were officials at two Russian tax offices corruptly approved the requests within one business day, and approximately $230 million was disbursed to members of the organization, purportedly on behalf of the Hermitage companies, two days later.
After perpetrating this fraud, members of the organization undertook illegal actions in order to conceal this fraud and retaliate against individuals who attempted to expose it. After learning of the lawsuits against its portfolio companies, Hermitage retained attorneys, including Russian lawyer Sergei Magnitsky, to investigate. Magnitsky and other attorneys for Hermitage uncovered the refund fraud scheme, and the complicity of Russian governmental officials in it, and were subject to retaliatory criminal proceedings against them. Magnitsky was arrested and died approximately a year later in pretrial detention. An independent Russian human rights council concluded that Magnitsky’s arrest and detention were illegal, that Magnitsky was denied necessary medical care in custody, that he was beaten by eight guards with rubber batons on the last day of his life, and that the ambulance crew that was called to treat him as he was dying was deliberately kept outside of his cell for more than an hour until he was dead.
Members of the criminal organization, and associates of those members, have also engaged in a broad pattern of money laundering in order to conceal the proceeds of the fraud scheme. In a complex series of transfers through shell corporations, the $230 million from the Russian treasury was laundered into numerous accounts in Russia and other countries. A portion of the funds stolen from the Russian treasury passed through several shell companies into Prevezon Holdings, Ltd., a Cyprus-based real estate corporation that is a defendant in the forfeiture action. Prevezon Holdings laundered these fraud proceeds into its real estate holdings, including investment in multiple units of high-end commercial space and luxury apartments in Manhattan, and created multiple other corporations, also subject to the forfeiture action, to hold these properties.
A chart listing the companies named as defendants in the lawsuit is attached.
Mr. Kim praised the outstanding investigative work of ICE HSI New York’s El Dorado Task Force.
Prevezon Holdings, Ltd.
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Prevezon Alexander, LLC
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Prevezon Soho USA, LLC
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Prevezon Seven USA, LLC
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Prevezon Pine USA, LLC
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Prevezon 1711 USA, LLC
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Prevezon 1810, LLC
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Prevezon 2009 USA, LLC
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Prevezon 2011 USA, LLC
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Ferencoi Investments, Ltd.
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Kolevins Ltd.
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Attachment(s):