Former New York Bank Manager And Two Others Charged In Manhattan Federal Court In Multimillion-Dollar Fraud And Money Laundering Scheme

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today the filing of a criminal complaint charging CHITAKRA RAMUDIT, a/k/a “Lilian Ramudit,” LOUIS LITVIN, and MELISSA CHAN with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit money laundering in a multimillion-dollar scheme to steal from a real estate company (“Company-1”), which was a client of a major retail bank in Manhattan at which RAMUDIT was a branch manager. LITVIN was Company-1’s chief financial officer, and CHAN was a bookkeeper for Company-1. RAMUDIT abused her position as a bank manager to help LITVIN and CHAN steal from Company-1, and RAMUDIT also separately stole more than $100,000 from two elderly account holders at the bank. RAMUDIT and CHAN were arrested and will be presented later today before the U.S. Magistrate Judge Gabriel W. Gorenstein. LITVIN was arrested in Florida this morning and was presented before a Magistrate Judge in the Southern District of Florida.

Acting Manhattan U.S. Attorney Joon H. Kim said: “Chitrakra Ramudit, a former bank manager, allegedly abused her position to steal more than a million dollars from the bank’s customers, including elderly account holders. Together with Louis Litvin and Melissa Chan, who worked at a victim real estate company, Ramudit also worked to launder their fraud proceeds through various back office dealings. These defendants allegedly took advantage of their positions at the bank and the victim company to steal money and launder it through a series of opaque transactions.”

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

RAMUDIT is a former branch manager at a major retail bank in Manhattan (“Bank-1”), with significant management authority and control over large financial transactions. RAMUDIT abused her position and authority to steal more than $1 million from client accounts, including accounts held by Company-1 and elderly individual account holders. RAMUDIT conspired with LITVIN, Company-1’s former CFO, and CHAN, a former Company-1 bookkeeper, to steal from Company-1. The defendants carried out their scheme through various means, including fraudulent wire transfers, unauthorized writing and cashing of cashier’s checks, and unauthorized withdrawals from Company-1’s accounts. The defendants laundered the illicit proceeds from these schemes through multiple bank accounts, and used the illicit proceeds to purchase various assets.

RAMUDIT appears to have received substantial kickbacks from LITVIN and CHAN for facilitating their theft from Company-1. For example, in 2010 and 2011, RAMUDIT conducted several transactions to help LITVIN and CHAN steal approximately $400,000 from Company-1, for which RAMUDIT received approximately $175,000 in payments to a bank account she controlled that was in the name of a family member. RAMUDIT also helped CHAN and LITVIN steal money by permitting them to cash or deposit Company-1’s checks. RAMUDIT would often personally cash Company-1’s checks for CHAN and CHAN would meet at RAMUDIT’s office to receive the cash from RAMUDIT. Some of the money CHAN stole was invested into a Brooklyn-based restaurant, in which RAMUDIT was also an investor.

LITVIN, who solely controlled Company-1’s payroll system, separately also stole more than $7 million from Company-1 through its payroll account with Bank-1. After LITVIN’s theft through the payroll system was discovered, he was fired by Company-1, and CHAN discussed unleashing a virus on Company-1’s computer systems to corrupt their files and cover up the crimes.

RAMUDIT, 56, of Queens, LITVIN, 63, of West Palm Beach, Florida, and CHAN, 38, of Queens, are each charged with conspiracy to commit bank fraud and bank fraud, each of which carries a maximum sentence of 30 years in prison, and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. RAMUDIT and LITVIN are each also separately charged with an additional count of bank fraud, which carries a maximum sentence of 30 years in prison. 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 work of the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York, and the agents of the Federal Bureau of Investigation.

This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Eli J. Mark and Jacob Warren are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendants are 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.

MAYOR DE BLASIO DELIVERS REMARKS AT NEWLY REBUILT ROCKAWAY BOARDWALK

Welcome, everyone. It is a beautiful day here in the Rockaways.

  it’s a wonderful day for the community because this boardwalk is about to open to everyone. There’s been a lot of concern out here in the Rockaways about whether this would be done and whether it would be done on time. And I got to tell you – we’re going to talk about this in a moment – but this is really to the credit of everyone here who’s been a part of this effort. This project has really been done very, very well and in a timely basis. But before I go into that, we are still reflecting on the tragedy yesterday in Times Square.

And a lot of you were there in the aftermath – aftermath when Commissioner O’Neill and I spoke about the situation. It’s very, very painful and I went and visited with the family that lost their daughter, a family from Michigan that came here to be a part of everything great about this city and then were met with tragedy.

My heart goes out to them and to all the families who had members injured yesterday. I went to Bellevue and, again, saw a number of the family members and also met with some of those who injured. And their spirit was amazing. The – it’s amazing when you go to a hospital and you meet with people who’ve just been through something absolutely horrific, and almost every one of them was just, you know, they kept saying, “I’m one of the lucky ones. I’m alive. I’m going to make it. I’m going to be okay.”

And it’s just amazing, resilient spirits. But we also know that nothing will bring back this good, young woman. And I’d just like to ask everyone, on behalf of the family of Alyssa Elsman, the 18-year-old girl – just like to have moment of silence in her memory.

And I want to, again, before I go into today’s issue, I want to also commend the first responders yesterday. You know this entire horrible episode unfolded in a matter of seconds, and our first responders immediately addressed the situation, apprehending the perpetrator and immediately tending to the wounded.

And I know that some of the people who were seriously, seriously wounded – the reason they’re still alive right now is because our first responders got there so quickly and did so much to help them.

I also want to note, we’re waiting for more facts. The NYPD is continuing to investigate. I spoke to Commissioner O’Neill this morning and one thing that’s abundantly clear now is that this very troubled individual, who committed this heinous act, had a long history of mental health problems. Those problems clearly did not get addressed over the years.

And I have to tell you this is something we have to come to grips with as a society. Obviously, my wife, Chirlane, has been working with so many people in this city to create a mental health system that will actually reach people consistently.

But we also have to note this very troubled young man ended up in our armed forces in the U.S. Navy. Somehow his issues were not addressed before, they weren’t addressed in his time in the Navy, and they weren’t addressed in the time after – and the results were tragic.

We’re never ever going to forgive such a heinous act but at the same time we have to recognize we have a problem underlying so much of what happens in this city, this country, and we still have to do a lot more to get at it. And we’re not going to rest until we find a way to get mental health support to those in need particularly those who are so trouble that it could lead to something like this.

Well, let me bring us back to now to this good news – gives us a little perspective on a day we’re still grappling with some troubling news, there’s also a lot of good things happening in the world.

And here in the Rockaways there’s a lot to be proud of. And I want to start with this amazing effort. This – look, everyone knows the Rockaways have had a very tough history. The Rockaways have been ignored in so many ways for decades by the City government and the powers that be. That was tough enough and then along came Sandy and made it some much worse.

I was here in the days after Sandy and it was just very hard to take in how bad the damage was. I was here when there were still buildings on fire, and you could see just the devastation and the boardwalk pushed in on the streets and so many homes that were destroyed. A place that already had gone through so much, you know, this to many I’m sure was a very devastating moment where they felt that things could only get worse.

I believed then that we all had an obligation to the Rockaways to take the painful moment and turn it into a motivation to get things right for once on behalf of the people of the Rockaways.

So, we’re standing here as part of boardwalk that’s very impressive. Just looking at it, you can see what an amazing effort it’s been. You can see how much it’s going to improve the quality of life for people in the Rockaways.

But at the same time, what’s amazing – first of all this is resiliency in action. This boardwalk is going to help protect everything you see around it. The school over there – thank you, principal – and all these homes. This boardwalk is not just a boardwalk, it’s now a barrier wall to protect the communities of the Rockaways. It was built to be resilient.

The last boardwalk was literally thrown by the waves into the streets of the Rockaways. This boardwalk’s not going anywhere. This boardwalk is planted firmly and it will withstand whatever Mother Nature throws at it.

That’s amazing on itself.

But also we made a commitment to get this boardwalk up and ready on time. We said it would be for Memorial Day weekend of 2017, and a week from tomorrow this boardwalk will be open for the people of the Rockaways. The whole distance.

Five-and-a-half miles. But here’s the amazing part – and everyone here I’m going to acknowledge them but let me just make this statement – everyone up here, they did something you don’t see often enough in government. They achieved this project on time and under budget.

Commissioner, how much did you end up saving?

Commissioner Mitchell J. Silver, Department of Parks and Recreation: $120 million.

$120 million that’s now going to be used for other important resilience projects, here, in the Rockaways. That’s an amazing contribution to continuing to make these communities safe.

EDITOR'S NOTE:

  Having grown up in Far Rockaway I have fond memories of what was one of the finest beaches and a boardwalk with commercial establishments that were compared to the Jersey Shore. One could enjoy a Famous Jerry's Cherry Cheese Knish, play in the many arcades including Playland at 98th Street, go into clean beach water, or just take a stroll on the magnificent boardwalk. 

Not only did I grow up in the Rockaways, but several prominent Bronxites also grew up in the Rockaways including current Councilman Andrew Cohen and former Judge Mark Friedlander to name only two. 

I serious doubt that you have brought back the old Rockaway boardwalk and beach, but thank you for doing what you have done in the Rockaways. 

Now can you please do the same for Orchard Beach.

Mayor de Blasio on City Hall in Your Borough-Bronx edition

  This week my administration is moving City Hall to the Bronx for a week. It’s something we like to call “City Hall in Your Borough.”    

Monday through Friday I’ll be working from the Bronx County Courthouse with many of the key people in city government. On Tuesday, from 9:00 a.m. until 1:00 p.m., we’ll be hosting the City Resource Fair at The Bronx County Building. You can sign up at nyc.gov/Bronx or call (212) 748-0281. You can meet with us and share your concerns, questions and suggestions.

On Wednesday evening at 7:00 p.m., we’ll be at the Adlai E. Stevenson High School at 1980 Lafayette Avenue, for a town hall. Residents of the 18^th Council District should RSVP by Friday, May 19 at noon via email at townhallrsvp@cityhall.nyc.gov or by calling (212) 788-1412.

After three years in office, we’ve had a lot of success creating a fairer and better borough for all.

We’re bringing Equity and Excellence to schools and the Bronx now has the highest graduation rate increase of any borough, up almost six percent to 64.8 percent graduation. Major crime is down five percent in the Bronx, helping to make New York the safest big city in America. The Bronx has seen the largest decrease in unemployment of any borough, almost 4.5 percent since 2014. 

We’re doing all we can to lift up the Bronx, filling almost a quarter million potholes and repaving 500 miles of road; investing $36 million to replace roofs at the Parkside Houses and installing LED lighting at Castle Hill and Patterson Houses; and investing $285 million to renovate community parks.

But there is more to do. The people of the Bronx are the reason why this borough is so strong.  I can’t wait to spend this week talking with you and your neighbors about how we can do a better job making this city work for you. Come by and visit with us!

VISION ZERO: MAYOR DE BLASIO ANNOUNCES MORE THAN TWO YEARS WITHOUT A FATALITY ON QUEENS BOULEVARD, AS NEXT PHASE OF REDESIGN MOVES FORWARD

Coming in June: New protected bike lanes, crosswalks, and expanded medians will come to Rego Park and Forest Hills

  Mayor Bill de Blasio announced that Queens Boulevard has seen zero fatalities since 2014, and New York City will further extend the redesign of Queens Boulevard beginning in June. After overwhelming approval by Queens Community Board 6 last week, DOT will add major safety improvements to the street - including new protected bike lanes, more crosswalks, and expanded medians -- through Rego Park and Forest Hills. Queens Boulevard, which had 22 traffic fatalities as recently as 1997, has not had a single traffic fatality in two and a half years, the same time DOT began the street’s conversion into a Vision Zero Priority Corridor.

“Queens Boulevard offers the best and most dramatic proof that our efforts at Vision Zero are working,” said Mayor de Blasio.  “What was once a ‘Boulevard of Death’ is no longer -- as pedestrians, cyclists and motorists all have become accustomed to enjoying a more vital, welcoming and safe street.  As changes come this year to Forest Hills and Rego Park, we thank Councilmember Karen Koslowitz for her leadership and Community Board Six for its recognition that a new Queens Boulevard is a win-win for all of the community’s businesses, children and seniors.” 

Last week, Community Board Six in Forest Hills voted overwhelmingly, by a 34-3 margin, to support DOT’s plan for a third phase of Queens Boulevard redesign, for the 1.3-mile portion of the street between Eliot Avenue and Yellowstone Boulevard.  In the first two phases, DOT transformed 2.5 miles of Queens Boulevard through Woodside and Elmhurst.  In addition to the absence of fatalities, DOT statistics show that since work began, crashes in the Phase 1 corridor have declined by 14 percent, with pedestrian injuries down by 49 percent and cyclist injuries down by 42 percent, yet cycling increased by 120%.

All of DOT’s changes to Queens Boulevard will cost approximately $4 million.  Starting next year, the Department of Design and Construction (DDC) will begin major capital work -- for which the de Blasio Administration has committed $255 million – to transform the boulevard, making all three phases permanent, including by widening medians and adding new amenities like trees, landscaping and benches.

The Mayor also cited the latest Vision Zero fatality statistics for 2017. Year-to-date, New York City has seen 69 traffic fatalities in 2017, compared to 78 by this date in 2016 – a 12 percent decline.  The number of pedestrians struck and killed has gone from 46 in 2016 to 38 in 2017, a 17 percent decline. 

“The transformation of Queens Boulevard is among the greatest achievements of the Vision Zero era,” said DOT Commissioner Polly Trottenberg.  “In just a few years, what was once a forbidding highway-like street bisecting communities has started to become a grand and welcoming boulevard worthy of Queens.  But we have much more to do -- and so we gratefully acknowledge Council member Koslowitz and Community Board Six for embracing the next phase of these exciting changes.”

“DDC is working in every borough to improve safety for pedestrians, motorists, and bicyclists alike,” said DDC Commissioner Feniosky Peña-Mora. “Vision Zero is a great success and DDC is proud to be a significant part of it through our work on Queens Boulevard, and other Great Streets projects such as Atlantic Avenue in Brooklyn and the Grand Concourse in the Bronx. We will continue to create projects that realize Mayor de Blasio’s vision for a healthier, more resilient, and more equitable New York.”

About Vision Zero

In January 2017, after three successive years of declines in traffic fatalities, Mayor Bill de Blasio announced New York City would make an additional $400 million investment in Vision Zero – for a total of $1.6 billion over the next five years. DOT is implementing its most aggressive street redesign safety program, an increased investment in street redesign and traffic-calming measures citywide. Other Vision Zero changes announced by the Mayor include ensuring NYPD crossing guards at every post, faster replacement of street markings, intersection upgrades in the bike-lane network, more left-turn calming efforts, brighter lighting and more equipment at each police precinct to catch speeding.

For more information about the de Blasio Administration’s Vision Zero initiative, please see www.nyc.gov/visionzero

Youth Got Talent 2017: "Stirring Up The Gifts"

TALENT COMPETITION & SHOW

  Come out and join us this Saturday, May 20th @ 1pm as we encourage some youth of our community whom have taken courage to stir up their gifts, talents, and abilities by participating in this year's Youth Got Talent: "Stirring Up The Gifts" Competition & Show. 

Some of the participants will perform as contestants to compete for the 1st, 2nd, and 3rd place prize. Some will perform as a support. Some will serve administratively and otherwise. All of them are stars and winners in our eyes. Come help cheer them on.

Presented by The Youth & YGT Committee of Gethsemane Missionary Baptist Church  

771 Fairmount Place   Bronx, NY 10460  

Rev. Torrence Robinson, Pastor

   

THIS YEAR'S GUEST/CELEBRITY JUDGES:

David Moore

Jaay Parks 

Mikey Jay

Sandy Rolon, SGT (Ret)

Serrina Goodman

EVENT LOCATION:

1919 Prospect Avenue /CS 211 - Auditorium

Bronx, NY 10457

(1 block off E. Tremont & Prospect Aves)                                    

ADMISSION TICKET: Charitable Contribution $5 per person 5 y/o & Up

Available across the street @ FUNDRAISER: 771 Fairmount Place. Also, Refreshments.

Program participants are admitted Free with copy of the YGT event flyer. Programs are DHS, OASAS, and other. 

For additional information call (917) 226-7960

“This activity is not sponsored or endorsed by the New York City Department of Education or the City of New York.”

STATEMENT BY THE NATIONAL PUERTO RICAN DAY PARADE - RE: OSCAR LÓPEZ RIVERA

NATIONAL PUERTO RICAN DAY PARADE 2017

Statement   RE: Oscar Lopez Rivera In response to the media activity surrounding the upcoming participation of Oscar López Rivera in the 60th Anniversary of the National Puerto Rican Day Parade, it is imperative to express our perspective to the events that have taken place in past few days. We recognize that every news article references the Parade's past leadership and financial difficulties for context. That said, since 2014, the Parade's governance and operations were structured to prevent these matters from reoccurring and to support its core mission.    The Board of Directors of the National Puerto Rican Day Parade, made a decision to stand by its mission of having the Parade serve as an educational and celebratory platform that embraces the diverse opinions in our community under the theme "Un Pueblo, Muchas Voces"/"One Nation, Many Voices".    In 2014, we launched our awareness and solidarity campaign to free Oscar López Rivera. This decision arose out of our strong conviction to be inclusive of all the voices in our community, and the broad support we have witnessed at prior Parades for the Oscar López Rivera cause. This confirmed the importance of having a voice in the Parade that many Puerto Ricans and people of all ideologies and cultures have rallied around. In the past three years, we have launched relevant and challenging conversations such as: marriage equality and LBGT rights; Borinqueneers; environmental justice for Caño Martín Peña, and this year the centennial anniversary of the Jones Act of 1917 that resulted in U.S. citizenship for Puerto Ricans.   The history of Oscar López Rivera is complicated, some call him a terrorist and others call him a freedom fighter, but Oscar López Rivera, as the New York Times recently wrote, was never charged with carrying out acts of violence. After 35 years in prison, 12 years of which were spent in solitary confinement, President Obama concluded, that at the age of 74, Oscar should be free.      It has been disappointing and unfortunate to see the progress of this Parade undermined by the circulation of false information, and the targeting of loyal sponsors by people who disagree with the Parade's decision to recognize the freedom of Oscar López Rivera. These actions allegedly influenced Goya's decision to stop its 60-year partnership with the Parade.     The Parade appreciates the sponsors who have supported this cultural entity and its mission. These relationships are rooted in mutual respect, as well as mutual goals and objectives. When we disagree, we resolve our differences through dialogue that leads to a common productive outcome. There are also times when despite our best efforts, our partners will have to make business decisions, which we respect, but the Parade will continue to be a platform for peace and solidarity that includes all the voices in our community.        Our initiatives and announcements for 2017 are evidence that we have not deviated from our mission to be an inclusive platform, even when taking on complex issues/subjects. The Oscar López Rivera experience provides opportunity to engage in a healthy and fierce conversation about a part of our Puerto Rican history. As we continue to learn and talk about issues important to our experience, Puerto Rico needs the unity and solidarity of its people in this time of crisis.  Only in unity will we inspire positive change. The Board of Directors of the National Puerto Rican Day Parade Thursday, May 18, 2017

13 Members Of Violent Drug Trafficking Organization Charged In Manhattan Federal Court With Narcotics Trafficking And Firearms Offenses

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced today the unsealing of an Indictment charging 13 members of a Bronx-based drug trafficking organization with narcotics trafficking and firearms offenses. 

Acting Manhattan U.S. Attorney Joon H. Kim said:  “As alleged, these defendants, many of them members of the violent and dangerous Crips street gang, used gun violence to control their territory in the North Bronx and to flood the streets with heroin, crack cocaine, and cocaine. Together with our partners at the FBI and NYPD, we are committed to making our city safer from drug-related violence.”    

FBI Assistant Director in Charge William F. Sweeney Jr. said:  “Our most important job as the FBI NY Metro Safe Streets Task Force is to protect the community from dangerous gangs that use threats and violence to maintain control. Gangs impact innocent people’s lives every day, people who often have no way to rid their neighborhoods of the dealers on the street corners. Our agents and investigators from our partner law enforcement agencies will be dogged in our pursuit of these criminals.”

NYPD Commissioner James P. O’Neill said:  “Today’s arrests are the latest example of the NYPD’s commitment to combatting narcotics trafficking and violent gun crimes.  The dismantling of this crew and the amount of evidence seized represents a significant blow to criminal networks operating in the Bronx. Thanks to FBI and U.S. Attorney in the Southern District—our partners on this and many other cases.”

According to the Indictment[1] unsealed in Manhattan federal court and other publicly filed documents:

The members of the Davidson Avenue drug trafficking organization (the “Davidson Avenue DTO”) controlled narcotics trafficking on Davidson Avenue between West Tremont Avenue and West Burnside Avenue in the Bronx, New York (the “Davidson Block”).  From 2012 to May 2017, members of the Davidson Avenue DTO sold heroin, crack cocaine, and cocaine, among other illegal narcotics, on the Davidson Block, and prevented others from doing the same by the threat of violence.  

Members of the Davidson Avenue DTO are also members and associates of the “55” and “Wildcard” neighborhood sets of the nationwide Crips street gang.  Members of the Davidson Avenue DTO possessed firearms, and planned and engaged in acts of violence to, among other reasons, protect and maintain their drug business.  In particular, members of the Davidson Avenue DTO used their firearms in territory battles with members and associates of the rival Bloods gang, as well as during internal disputes over authority within the Crips sets that composed the DTO.

Count One of the Indictment charges OVED VEGA, a/k/a “O,” a/k/a “Mantha,” FRANKIE REYES, a/k/a “Biscuit,” HENRY MEJIA, a/k/a “Bigs,” FELIX CASTILLO, a/k/a “Spyder,” JUSTIN RODRIGUEZ, a/k/a “Poochie,” JESSICA GLENN, a/k/a “J,” GABRIEL CRUZ, a/k/a “Gabe,” ISIAH PEREZ, a/k/a “Izzy,” NOEL PEREZ, a/k/a “Lito,” ALFREDO RODRIGUEZ, a/k/a “Fetti,” MARKEEN JORDAN, a/k/a “Kingo,” STEFAN CROMARTIE, a/k/a “Stef,” and DAYQUAN SALAMAN, a/k/a “Domo Gz,” with participating in a conspiracy to distribute narcotics, including heroin, crack cocaine, and cocaine.

Count Two of the Indictment charges OVED VEGA, a/k/a “O,” a/k/a “Mantha,” FRANKIE REYES, a/k/a “Biscuit,” HENRY MEJIA, a/k/a “Bigs,” FELIX CASTILLO, a/k/a “Spyder,” JUSTIN RODRIGUEZ, a/k/a “Poochie,” JESSICA GLENN, a/k/a “J,” GABRIEL CRUZ, a/k/a “Gabe,” ISIAH PEREZ, a/k/a “Izzy,” NOEL PEREZ, a/k/a “Lito,” ALFREDO RODRIGUEZ, a/k/a “Fetti,” MARKEEN JORDAN, a/k/a “Kingo,” STEFAN CROMARTIE, a/k/a “Stef,” and DAYQUAN SALAMAN, a/k/a “Domo Gz,” with possessing and discharging firearms in furtherance of the narcotics conspiracy charged in Count One.

In a coordinated operation, 10 defendants were arrested in New York on Tuesday afternoon and earlier today.  They will be presented this afternoon in Manhattan federal court.  Defendant MARKEEN JORDAN was already in federal custody on a violation of supervised release.  Defendant DAYQUAN SALAMAN is in custody on state charges and will be transferred to federal custody.  FELIX CASTILLO remains at large.  Charts identifying each defendant, the charges, and the maximum penalties are attached to this release.

The case is assigned to U.S. District Judge Loretta A. Preska. 

Mr. Kim thanked the FBI and NYPD for their work on the investigation.

The Office’s Violent and Organized Crime Unit is overseeing the case.  Assistant U.S. Attorneys Gina Castellano and Hagan Scotten are 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.

United States v. Oved Vega et al.

Count	Charge	Defendant	Maximum Penalty
1-	Conspiracy to Distribute Narcotics	OVED VEGA,      a/k/a “O,”      a/k/a “Mantha,”   FRANKIE REYES,      a/k/a “Biscuit,"   HENRY MEJIA,      a/k/a “Bigs,”   FELIX CASTILLO,      a/k/a “Spyder,”   JUSTIN RODRIGUEZ,      a/k/a “Poochie,”   JESSICA GLENN,    a/k/a “J,”   GABRIEL CRUZ,    a/k/a “Gabe,”   ISIAH PEREZ,    a/k/a “Izzy,”   NOEL PEREZ,    a/k/a “Lito,”   ALFREDO RODRIGUEZ,    a/k/a “Fetti,”   MARKEEN JORDAN,    a/k/a “Kingo,”   STEFAN CROMARTIE,    a/k/a “Stef,”   DAYQUAN SALAMAN,    a/k/a “Domo Gz,”	Life in prison with a mandatory minimum of 10 years in prison
2 -	Discharge of Firearms in Furtherance of Narcotics Trafficking	OVED VEGA,      a/k/a “O,”      a/k/a “Mantha,”   FRANKIE REYES,      a/k/a “Biscuit,"   HENRY MEJIA,      a/k/a “Bigs,”   FELIX CASTILLO,      a/k/a “Spyder,”   JUSTIN RODRIGUEZ,      a/k/a “Poochie,”   JESSICA GLENN,    a/k/a “J,”   GABRIEL CRUZ,    a/k/a “Gabe,”   ISIAH PEREZ,    a/k/a “Izzy,”   NOEL PEREZ,    a/k/a “Lito,”   ALFREDO RODRIGUEZ,    a/k/a “Fetti,”   MARKEEN JORDAN,    a/k/a “Kingo,”   STEFAN CROMARTIE,    a/k/a “Stef,”   DAYQUAN SALAMAN,    a/k/a “Domo Gz,”	Life in       prison      with a       =mandatory  minimum  of 10 years  in jail

Former Manager Of Public Utility Arrested For Defrauding The Public Utility And Its Customers Out Of More Than $3.8 Million

  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 Office of the Federal Bureau of Investigation (“FBI”), announced today that JOHN FARCHIONE, a former customer operations manager of a public utility company (the “Public Utility”), and LOUIS BENDEL, who ran a business purporting to assist customers with payments to the Public Utility, were arrested this morning and charged with honest services fraud, bank fraud, mail fraud, aggravated identity theft, and conspiracy, for their roles in a scheme to defraud the Public Utility and its customers out of more than $3.8 million.  BENDEL was presented today before U.S. Magistrate Judge Gabriel W. Gorenstein.  FARCHIONE was arrested in Maine this morning and was presented in federal court there today.

Acting U.S. Attorney Joon H. Kim said:  “John Farchione, an employee of a public utility, and Louis Bendel, the owner of a payment processing vendor, allegedly stole more than $3.8 million from the public utility and its customers. As alleged, instead of providing the fair and honest services the public deserves and the law requires, the defendants instead looked to the public utility as a vehicle to satisfy their personal greed. We thank our partners at the FBI for protecting New York’s public utilities and their customers.”

FBI Assistant Director William F. Sweeney Jr. said:  “As alleged, Farchione, aided by his inside knowledge of the billing and payment process of the public utility for which he worked, found a way to exploit procedures in furtherance of a scheme abetted by Bendel.  Bendel, whose job it was to remit customer payments to the utility company, allegedly conspired with Farchione to subvert the system, allowing for their personal enrichment to the detriment of the company and its consumers.  The right to honest services is something every member of the public should enjoy, and those who stand in the way will most certainly be held accountable.”

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

From at least in or about 2005, up to and including in or about November 2016, FARCHIONE and BENDEL engaged in fraudulent schemes resulting in the theft of more than $3.8 million from the Public Utility and its customers.

FARCHIONE, who was employed by the Public Utility as a manager in Customer Operations during the relevant time period, devised and implemented the scheme, using his knowledge of the Public Utility’s billing and payment processes.  FARCHIONE carried out the scheme with BENDEL, who operated a business that aggregated payments from customers of the Public Utility for the purpose of passing such payments on to the Public Utility.  FARCHIONE and BENDEL effected the fraud in part through conspiring to submit fraudulent checks and payments to the Public Utility, in amounts owed by customers who provided cash to BENDEL believing he would submit those payments to the Public Utility on their behalf. 

In fact, however, FARCHIONE and BENDEL kept the customer cash for themselves and submitted fraudulent checks to the Public Utility that purported to convey aggregated payments by multiple customers of the Public Utility.  FARCHIONE, by virtue of his position as an employee of the Public Utility, was able to conceal the nature of the fraudulent checks, and thereby perpetuate the fraudulent scheme, through his knowledge of and access to the Public Utility’s account payment system.

Additionally, FARCHIONE and BENDEL conspired to create fraudulent positive balances on certain customer accounts associated with BENDEL, causing the Public Utility to issue unearned account refunds, the proceeds of which were obtained and shared by FARCHIONE and BENDEL.

FARCHIONE, 64, of Queens, and BENDEL, 69, of Seaford, Long Island, are each charged with one count of honest services fraud, which carries a maximum sentence of 20 years in prison; mail fraud, which carries a maximum sentence of 20 years in prison; bank fraud, which carries a maximum sentence of 30 years in prison; conspiracy to commit honest services fraud, mail fraud, and bank fraud, which carries a maximum sentence of 30 years in prison; and aggravated identity theft in connection with the fraudulent schemes, which carries a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed.

The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.

Mr. Kim praised the investigative work of the FBI in this investigation.

 [1] The charges contained in the Complaint are merely accusations, and FARCHIONE and BENDEL are presumed innocent unless and until proven guilty.