Major Property Tax Relief for Seniors & Individuals with Disabilities Expands to Help Thousands More Live Affordab

After SCHE/DHE signed into state law, City Council acts

Members of the Independent Democratic Conference applauded the New York City Council’s passage of an enabling clause of Senator Diane Savino’s legislation to expand the Senior Homeowners’ Exemption (SCHE) and Disabled Homeowners’ Exemption (DHE).

The City Council passed the enabling clause, sponsored by Brooklyn Councilman Chaim Deutsch, on Wednesday at their stated meeting.

“The passage of today’s bill codifies into law the raising of the SCHE/DHE maximum income limit. This is an important step towards easing some of the financial burdens that many of our senior and disabled homeowners face. Tens of thousands of additional New Yorkers will now be able to qualify for a property tax break of up to 50% and fewer seniors will be forced to choose between paying bills and paying for essentials each month. Thank you Mayor de Blasio for the collaboration on this bill, as well as my State colleagues Assemblymember Brian Kavanagh and Senator Diane Savino for their part in passing this legislation on the state level,” said Councilman Deutsch.

This year, the IDC fought to increase the income eligibility for the SCHE and DHE programs which provide major property tax exemptions to residents living on fixed incomes. Seniors could potentially save upwards of $1,000 a year through the exemption.

Senator Savino’s legislation, which received support from Mayor Bill de Blasio, raises the income cap for SCHE/DHE to $50,000 for a full 50% property tax exemption and to $58,400 for a partial exemption, which will provide much-needed relief to New York City homeowners. The eligibility levels have not been raised since 2006. The current income limit for a full 50% reduction is just $29,000.

Assemblyman Brian Kavanagh carried the legislation through the Assembly.

“Our seniors and disabled New Yorkers, who live on fixed incomes, deserve to reside in their communities without the fear of losing their homes. Many of our senior citizens choose to age in place in the neighborhoods where they’ve raised their families, worked and enjoyed throughout their lives. I thank Councilman Deutsch for moving this vital piece of legislation forward in the City Council,” said Senator Savino.

“Our seniors deserve to live out their golden years without worrying that they can no longer afford their homes, the places where they raised their children and hold cherished memories. It is important that for seniors and disabled homeowners living on tight budgets we create an affordable New York by bringing real property tax relief by raising the income eligibility for SCHE and DHE to 2017 levels. I’m proud that the IDC has been the driving force behind this policy and I thank Councilman Deutsch and his colleagues for helping make this a reality,” said Senator Jeff Klein.

“Giving property tax breaks to more seniors and people with disabilities who own their homes is an important step forward in our continuing efforts to ensure that our communities are affordable. This law will help thousands of New Yorkers to remain in their homes and their neighborhoods,” said Assemblymember Kavanagh.

Governor Cuomo signed Senator Savino’s legislation into law at the end of July. With the actions taken today by the City Council the legislation will go to Mayor de Blasio’s desk for approval, who included the proposal in his Executive Budget.

At that point, a 120-day window will open up for people to apply for the program for this year.  Those with applications already on file that were rejected this year will be re-processed for eligibility.  If a qualifying resident already paid taxes, the city’s Department of Finance would issue a credit.

On average a homeowner who qualifies for the program under the expanded income threshold could save up to $1,750 a year.

This proposal would also increase the cap for partial exemptions to $58,400, with property tax exemptions provided to qualified senior and disabled homeowners on a sliding scale.

SCHE/DHE at up to $58,400
Income Range	Abatement
$57,500 - $58,400	5%
$56,600 - $57,499	10.0%
$55,700 - $56,599	15.0%
$54,800 - $55,699	20.0%
$53,900 - $54,799	25.0%
$53,000 - $53,899	30.0%
$52,000 - $52,999	35.0%
$50,100 - $51,999	40.0%
$50,001 - $50,999	45.0%
$0 - $50,000	50.0%

Members of the IDC said the new law would create affordability for residents living on fixed incomes.

“With living costs always going up, unfortunately more and more New Yorkers are having a difficult time keeping their homes, especially Senior Citizens and New Yorkers with disabilities. They fought hard to buy and keep their homes, so I am glad the income eligibility for SCHE and DHE will soon increase, which will help some of our most vulnerable homeowners,” said Senator Jose Peralta.

“Keeping up with the ever rising cost of living in the city can be difficult enough for the average New Yorker. This is especially difficult for the senior and disabled homeowners of our boroughs. Expanding the SCHE/DHE program will go a long way in helping New Yorkers on a fixed income continue to live close to their families in the city that they helped build. I applaud my IDC colleagues for never quitting when it comes to fighting for the most vulnerable of New Yorkers,” said Senator Tony Avella.

“HDFC co-ops are a crucial part of the 31st Senate District's affordable housing stock, and the expansion of this program to help seniors and New Yorkers with disabilities stay in their homes is a welcome step towards preserving affordability in the area. Seniors and people with disabilities often have limited mobility and depend on community support, so making it easier for them to stay in those communities will increase their quality of life as well as improving the life of the community at large,” said Senator Marisol Alcántara.

“Property taxes represent an affordability challenge particularly important to New York City seniors and those living with disabilities. This law takes a step forward in meeting that challenge. Recognizing the unique circumstances these households face and accommodating their needs means keeping our communities whole. I am proud to be a part of meaningful action to make our communities more affordable and to work in partnership to keep more money in the pockets of these New Yorkers. Thanks to Senator Savino, Senator Klein and all my colleagues in government for their leadership on this issue. Now on the ground, in our communities, we need to ensure seniors and those living with disabilities take full advantage of this exemption,” said Senator Jesse Hamilton.

The IDC’s push to increase eligibility received praise from numerous advocacy groups.

Bronx Literacy and Health Fair

The Bronx Literacy and Health Fair

Bronx Borough President  Ruben Diaz Jr.    The Office of Bronx Borough President Ruben Diaz Jr., in conjunction with Healthfirst and the Montefiore Medical Center, is hosting our 6th Annual Back-to-School   The Bronx Literacy and Health Fair will take place on Saturday, August 26, 2017, from 11:00 a.m. – 3:00 p.m. at Pablo Casals Middle School 181, located at 800 Baychester Avenue, Bronx NY 10475 The Borough President's office and our sponsors, Healthfirst and Montefiore Medical Center, want to partner with organizations that provide literacy and health services and support to the Bronx families Partner Organizations can contribute in one or more of the following ways:     Provide health and literacy related information on the day of the event;   Provide volunteer support on the day of the event;   Advise the event steering committee on which organizations to market to;   Publicize the event using your organizations’ networks and various channels of      communication (i.e. e-lists, websites, newsletters, announcements at meetings).  If you would like to partner with us, please email or fax the attached Partnership Application by August 18, 2017 to or you can go online here  Lucille Roldan Office of Special Events 851 Grand ConcourseBronx, NY 10451 Email:lroldan@bronxbp.nyc.gov Tel: (718) 590-3522 Fax: (718) 590-5355  We appreciate all of your time and effort in making this event a success. Together, we can lay the foundation to improve literacy and overall health for the families in the Bronx.

MAYOR DE BLASIO AND COUNCIL MEMBER GARODNICK ANNOUNCE ADOPTION OF GREATER EAST MIDTOWN REZONING

Decision to strengthen NYC’s largest business district with more modern office buildings, 28,000 new jobs, protected landmarks, subway upgrades and more pedestrian space

  Mayor de Blasio and Council Member Daniel Garodnick today marked the City Council’s unanimous approval of the Greater East Midtown rezoning. Years in the making, the plan will foster the new, modern office buildings needed to spur jobs and keep New York a global capital of commerce. The plan ties that growth directly to improvements in the district’s public transit and public space, so as new buildings rise, New Yorkers will see major investments in subway stations, less congested sidewalks and expansive plazas for office workers and visitors.

East Midtown is the city’s largest business district, generating 250,000 jobs and 10 percent of the city’s property tax revenue. But its office buildings average 75 years-old and have become increasingly out-of-date and inefficient for today’s companies. The district’s historic growth was driven by access to public transit, but today its subways and streets are at capacity.

To overcome these challenges and revitalize the district, Councilmember Dan Garodnick and Borough President Gale Brewer led a host of community stakeholders in an extensive planning process that was advanced by the de Blasio administration and then the City Council. The approved rezoning covers 78 blocks between the east side of Third Avenue and the west side of Madison Avenue, from East 39th Street to East 57th Street.

“East Midtown’s growth is now directly linked to real-time improvements in its public transit and public realm. In the years ahead, this neighborhood will see major upgrades to subway stations, more expansive space for pedestrians, investments in its iconic landmarks, and a new generation of office buildings that will spur good jobs for New Yorkers. I thank the City Council, and congratulate City Planning Chair Lago, Council Member Garodnick and Borough President Brewer on this achievement," said Mayor Bill de Blasio.

"With this vote, we are breathing new life into New York's most important business district," said Council Member Dan Garodnick. "Not only will we see sensible growth, but the public will benefit from extraordinary new investments in above-ground public spaces and in below-ground subway infrastructure. Better transit, new jobs, top-of-the-line office space: East Midtown is back, full of optimism, and open for business."

“The Greater East Midtown rezoning plan is a victory for everyone who lives, works, walks, or rides a subway through the East Side, and it also proves that stakeholder-driven planning works,” said Manhattan Borough President Gale A. Brewer. “Putting all the stakeholders around a table before the plan was certified meant we could forge consensus on a sound blueprint for East Midtown’s future. This plan, based on that blueprint, will spur new, state-of-the-art office construction, attract jobs, and deliver major investments in transit and street-level infrastructure, open space, and local landmarks.”

“It doesn’t get any bigger than East Midtown. This is where New York City competes for a huge number of jobs and an enormous slice of our tax base. We made this a priority from Day One, and today’s vote is a signal that New York City is serious about investing in its economic future,” said Deputy Mayor for Housing and Economic Development Alicia Glen.

"The adoption today of this plan marks a significant achievement in our quest to assure that Greater East Midtown remains the globe's premier business district - one that works for the employees, residents and tourists who fill its streets every day. Incentivizing as-of-right redevelopment of aging buildings, facilitating the upkeep of beloved landmarks, and providing a private-sector funding stream for transit and streetscape improvements - that's a winning combination. Today's success has its roots in the excellent work of the many individuals who participated in a steering committee led by Borough President Brewer and Council Member Garodnick," said City Planning Commission Chair Marisa Lago.

“This vote represents a turning point in future of East Midtown and will produce new state of the art office buildings, improved transit connectivity, additional resources for some of New York's most treasured landmarks, and significant new public space,” said Speaker Melissa Mark-Viverito. “I congratulate Council Member Garodnick on his years of hard work to build consensus within the community and for his work with the administration to craft a zoning proposal and negotiate modifications that secure capital funding to kick-start public space improvements”

New and Upgraded Office Buildings

The zoning changes will enable the development of new Class-A commercial buildings, cementing East Midtown’s position as a world class business district that offers modern amenities and a range of office types. Buildings would be able to achieve higher density provided the developments support enhancements to the area’s public realm by providing transit improvements and/or purchasing unused floor area from the district’s landmarks.

The zoning framework will generate 6.8 million square feet in new commercial office space over the next 20 years, along with an additional 6.6 million square feet of older office space that will be upgraded into Class A office space. The resulting development is expected to create up to 28,000 new, permanent jobs and 23,000 construction jobs in the next two decades.

Improved Subways

In “Transit Improvement Zones” near transit hubs, new buildings are allowed to exceed current Floor Area Ratio (FAR) provided they undertake important improvements to subway stations like new and expanded entrances, escalators, elevators and stairwells, as well as full station rehabilitations. New buildings cannot be granted certificates of occupancy for their increased space until those improvements are completed.

The specific stations and improvements were selected in close consultation with the MTA and encompass:

· Lexington Avenue / 53rd – 51st Street (E,M,6)

· Lexington Avenue - 59th Street (N,Q,R,4,5,6)

· Fifth Avenue / 53rd Street (E,M)

· 47th / 50th Streets – Rockefeller Ctr (B,D,F,M)

· 42 St - Bryant Park / 5th Avenue (B,D,F,M,7)

· Grand Central / 42nd Street (4,5,6,7,S)

Strengthening Historic Landmarks

The plan permits property owners to purchase unused development rights from landmarks throughout the district on an as-of-right basis, a departure from current regulations. Those landmarks include a dozen buildings designated by the Landmarks Preservation Commission last year in advance of the rezoning which include some of the most historic and beloved icons in Midtown. This greater flexibility would increase the market for area landmarked buildings to sell their unused development rights, and thereby raise funds for their continued maintenance.

Improving and Expanding Public Space

New public realm projects across East Midtown will be funded by a minimum contribution of $61.49 per square foot or 20 percent of air rights’ sale price, ensuring that as development rights are sold to spur new development, the public reaps a steady funding stream to make commensurate improvements including shared streets, pedestrian plazas, thoroughfare uprgrades.

The City will commit $38 million in capital funds for eligible public realm projects selected by the East Midtown Governing Group. Up to 12 million additional dollars will be committed to public benefits that include:

· Shared Street on 43rd Street between Lexington and 3rd Avenue

· Pershing East Plaza

· 53rd Street Thoroughfare Improvements

· Park Avenue Turn Lane Improvements

· Lexington Avenue Improvements

“In a City growing with historic levels of population, jobs and tourism, the rezoning of East Midtown offers a welcome antidote in the most crowded of Manhattan neighborhoods,” saidDOT Commissioner Polly Trottenberg.  “For transportation, the rezoning intelligently prioritizes the most efficient uses – by building much-needed new subway entrances and improvements, while further expanding pedestrian plazas and shared streets.  With the detailed plan passed by the Council today, congratulations are in order to Mayor de Blasio, Council Member Garodnick and the entire Council for their productive partnership in getting it done.”

“NYC Parks is greatly supportive of this plan, which involved extensive community engagement and will ensure East Midtown remains a competitive business district while improving the neighborhood at large. Tying public realm improvements to development ensures that all New Yorkers will benefit from this plan,” said NYC Parks Commissioner Mitchell J. Silver, FAICP.

“Today’s Council approval is a successful conclusion to a robust process that integrated planning and landmark preservation to ensure that Greater East Midtown remains at the forefront of the global economy. The City’s comprehensive approach resulted in the designation of 12 outstanding historic buildings — bringing the number of protected individual landmarks in East Midtown to 50. Many thanks to the Greater East Midtown Steering Committee, led by Borough President Brewer and Council Member Garodnick, for their support of the Commission’s work in this neighborhood. The approval of this plan, along with the Commission’s landmark designations, fosters East Midtown’s growth and protects and preserves the heart of a district exemplified by its proud historic buildings,” said Landmarks Preservation Commission Chair Meenakshi Srinivasan.

ENGEL STATEMENT ON TRUMP’S THREATS TO NORTH KOREA

  Representative Eliot L. Engel, Ranking Member of the House Committee on Foreign Affairs, today made the following statement:

“President Trump has again undermined American credibility by drawing an absurd red line, committing to respond to North Korea’s bluster and missile tests with ‘fire and fury like the world has never seen.’ Make no mistake: North Korea is a real threat, but the President's unhinged reaction suggests he might consider using American nuclear weapons in response to a nasty comment from a North Korean despot.

“America’s security is based not just on the strength of our armed forces but on the credibility of our Commander-in-Chief. Today President Trump’s reckless behavior and impulsive outburst undermined the security of the American people, and that of our friends and allies. Kim Jong Un will call his bluff as America’s adversaries watch.”

Five Individuals Charged In Manhattan Federal Court With Conspiring To Possess Over 2,000 Kilograms Of Cocaine In Violation Of Federal Maritime Drug Enforcement Laws

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Field Division (“DEA”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), George Beach, the Superintendent of the New York State Police (“NYSP”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and George Beach, Superintendent, New York State Police, announced charges against five defendants for allegedly possessing and conspiring to possess with the intent to distribute over 2,000 kilograms of cocaine, in violation of the maritime drug enforcement laws of the United States.  IVAN CORTES MOLINERO, FRANCISCO JAVIER OCHOA JOAQUIN, MIGUEL CHAVEZ DELGADO, ENEDINO GATAN VARGAS, and FERNANDO MORENO HERNANDEZ were transported to and arrived in the Southern District of New York on August 4, 2017, and are expected to be presented later today, before Magistrate Judge Ronald L. Ellis in Manhattan federal court.

Manhattan Acting U.S. Attorney Joon H. Kim said:  “These five defendants allegedly made a brazen attempt to ship nearly 5,000 pounds of cocaine to the U.S., packing the drugs in a speedboat and then trying to outrun authorities in the waters off of Mexico. I want to thank our law enforcement partners, who stopped this massive shipment of narcotics from arriving at our shores.”

DEA Special Agent in Charge James J. Hunt said:  “From digging border tunnels to using go-fast boats, drug cartels will stop at nothing to get their illicit product into America. This seizure was a significant profit loss to the traffickers with a sobering effect to drug users in the U.S. I would like to thank our law enforcement partners in the U.S, Mexico and Colombia for their diligent work and collaboration on this investigation.”

HSI Special Agent-in-Charge Angel Melendez said:  “This team of perpetrators allegedly attempted to bring more than two tons of cocaine though U.S. borders.  It is the collaborative effort with the DEA and other federal and local agencies that law enforcement was able to interdict this action and keep deadly drugs off American streets.”

 

NYPD Commissioner James P. O’Neill said:  “As alleged, this criminal enterprise attempted to import a significant amount of cocaine to the United States by boat but law enforcement intercepted this shipment, five individual were taken into custody, and were subsequently charged. This investigation demonstrates the commitment of the NYPD to work alongside our federal partners to stop illegal drugs from entering our communities and hold responsible those who work to profit from illegal narcotics.”

State Police Superintendent George P. Beach II said: “We simply will not tolerate this type of alleged illegal drug trafficking activity in New York State. The valuable partnerships developed through the New York Organized Crime Drug Enforcement Strike Force were instrumental in these arrests and the seizure of these lethal narcotics. I want to thank our federal, state and local partners for their ongoing hard work and collaboration on this case, which has resulted in the arrests and removal of five alleged dangerous criminals who profit at the expense of our communities.”

As alleged in the criminal Complaint,[1] filed earlier this week in Manhattan federal court:

The DEA has been investigating a Colombian drug cartel (the “Cartel”) that sends shipments of cocaine to various points around the world by, among other methods, panga boats or “go-fasts.”  Go-fasts are small boats, typically similar in size to speed boats, with hulls of approximately 20 to 50 feet and a maximum capacity of approximately five passengers. 

On or about July 8, 2017, a United States Navy Aircraft (the “Aircraft”) was on routine patrol off the western coast of Mexico and approximately 590 nautical miles south of Mexico.  While there, an occupant of the Aircraft observed what appeared to be a go-fast boat (the “Go-Fast”).  The Aircraft communicated this information to the command of the United States Coast Guard (the “Coast Guard”), which dispatched a Coast Guard cutter (the “Cutter”) to intercept and board the Go-Fast.

The Cutter approached the Go-Fast and launched a helicopter and a patrol boat (the “Patrol Boat”), which proceeded to intercept the Go-Fast.  Occupants of the Patrol Boat (the “Boarding Team”) boarded and gained control of the Go-Fast, where they found CORTES MOLINERO, OCHOA JOAQUIN, CHAVEZ DELGADO, GATAN VARGAS, and MORENO HERNANDEZ. 

The Boarding Team observed numerous bales or large bundles wrapped in black plastic and brown tape on the deck of the Go-Fast.  The bales were in plain sight and occupied a substantial portion of the deck of the Go-Fast.

The Boarding Team recovered approximately 107 bales and one loose brick from the Go-Fast.  Two samples from the bales were field-tested, and tested positive for the presence of cocaine.  In total, the contents of the 107 bales and brick weighed approximately 2,141 kilograms or approximately 4,720 pounds.

CORTES MOLINERO, 30, OCHOA JOAQUIN, 40, CHAVEZ DELGADO, 46, GATAN VARGAS, 51, and MORENO HERNANDEZ 31, are citizens of Mexico.  Each defendant is charged with one count of conspiring to violate maritime drug enforcement laws and one count of violating maritime drug enforcement laws by possessing with the intent to distribute cocaine.  Each defendant faces a maximum sentence of life imprisonment and a mandatory minimum sentence of ten years’ imprisonment.  The statutory maximum penalties and mandatory minimum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Kim praised the outstanding efforts of the DEA’s New York Drug Enforcement Strike Force, which is comprised of officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations, the New York State Police, and the U.S. Marshal Service, among other agencies.  Mr. Kim also praised the outstanding efforts and assistance provided by the Coast Guard, United States Customs and Border Protection, the United States Navy, and the Naval Criminal Investigative Service.

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 set forth below are only allegations, and every fact described should be treated as an allegation.

Individual Who Compromised Over 1,000 Email Accounts At A New York City University Pleads Guilty

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JONATHAN POWELL pled guilty today to one count of fraud in connection with his scheme to obtain unauthorized access to more than 1,000 email accounts maintained by a New York City area university in order to download sexually explicit photos and videos.  POWELL pled guilty earlier today in Manhattan federal court before United States District Judge Alison J. Nathan.

Acting U.S. Attorney Joon H. Kim said:  “From a computer in Arizona, Jonathan Powell wreaked havoc on the email servers of a New York area university.  To feed his perverse desire for personal photos and videos, Powell hacked into hundreds of student and faculty email accounts by surreptitiously changing their passwords.  Cybercrime is a threat to organizations large and small, from big companies to local universities.  Luckily, the FBI was able to stop Powell before he victimized others.”

According to the allegations in the Information to which POWELL pled guilty, a criminal complaint filed against POWELL, as well as statements made during the plea and other proceedings in the case:

From October 2015 up to September 2016, POWELL obtained unauthorized access to email accounts hosted by a U.S.-based university which has its primary campus in New York, New York (“University-1”).  POWELL obtained unauthorized access to these accounts by accessing the password reset utility maintained by the email servers at Univeristy-1, which was designed to allow authorized users to reset forgotten passwords to accounts.  POWELL utilized the password reset utility to change the email account passwords of students and others affiliated with University-1.  Once POWELL gained access to the compromised email accounts (the “Compromised Accounts”), he obtained unauthorized access to other password-protected email, social media, and online accounts to which the Compromised Accounts were registered, including, but not limited to, Apple iCloud, Facebook, Google, LinkedIn, and Yahoo! accounts.

Specifically, using the Compromised Accounts, POWELL requested password resets for linked accounts hosted by those websites (the “Linked Accounts”), resulting in password reset emails being sent to the Compromised Accounts, which allowed POWELL to change the passwords for the Linked Accounts.  POWELL then logged into the Linked Accounts and searched within the Linked Accounts, gaining access to private and confidential content stored in the Linked Accounts.  In one instance, POWELL searched a University-1 student’s linked Gmail account for digital photographs and for various lewd terms.  The Government’s investigation ultimately revealed that POWELL accessed the Compromised and Linked Accounts at least in part to download sexually explicit photographs and videos of college-aged women.

An analysis of University-1 password reset utility logs and other data revealed that POWELL accessed the University-1 password reset utility approximately 18,640 different times between October 2015 and September 2016.  During that timeframe, POWELL attempted approximately 18,600 password changes in connection with approximately 2,054 unique University-1 email accounts, and succeeded in making 1,378 password changes in connection with approximately 1,035 unique University-1 email accounts, in some cases compromising the same email accounts multiple times. 

POWELL, 30, of Phoenix, Arizona, was arrested on November 2, 2016.  POWELL pled guilty today to one count of fraud in connection with computers, 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 the defendant’s sentence will be determined by the judge.

POWELL is scheduled to be sentenced on December 1, 2017, at 12 p.m.

Mr. Kim praised the investigative work of the FBI.

Bronx Man Charged In Manhattan Federal Court With Sex Trafficking Of Minors And Other Offenses

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that JAMEL GODDARD, a/k/a “Payroll,” was arrested for his alleged role as the leader of a sex trafficking and prostitution enterprise, which exploited vulnerable minor girls and adult women.  GODDARD was charged in an Indictment with conspiracy to commit sex trafficking, sex trafficking by force, fraud or coercion, and sex trafficking of a minor.  GODDARD was also charged with the use of interstate facilities and interstate travel to promote a prostitution enterprise.  GODDARD will be presented before U.S. Magistrate Judge Ronald L. Ellis in Manhattan federal court this afternoon.  The case has been assigned to U.S. District Judge Loretta A. Preska.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “As alleged, Jamel Goddard sexually exploited and trafficked vulnerable minor girls and adult women for profit.  He used physical violence, threats, and intimidation to control his victims and force them to engage in sex work.  Along with our partners at the FBI and the NYPD, we will continue to find, investigate, and prosecute those engaged in sex trafficking.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “For Goddard to allegedly take advantage of these helpless young girls and women—­ their lack of education, stability, and history of trauma, illustrates his lack of respect and regard for the victims as human beings. They did not deserve to be used, abused, and sold for the sake of Goddard greedily filling his pockets. The FBI will continue to investigate trafficking enterprises, and we will not allow disturbing crimes of this nature to plague our communities.”

According to the allegations in the Indictment[1] filed in Manhattan federal court:

 Since at least 2012, GODDARD directed and conducted a criminal sex trafficking and prostitution enterprise (the “Enterprise”) that recruited and exploited minor girls and adult women, and then prostituted them using an online classifieds website for his own profit.  GODDARD operated the Enterprise out of motels in the Bronx and Brooklyn, New York, upstate New York, and in or around other states, including New Jersey, Connecticut, Rhode Island, and Florida.

GODDARD typically recruited vulnerable minor and adult victims who lacked education, a stable home, and family support, and who had suffered past physical and emotional trauma.  He then exploited those victims’ need for shelter, stability, and affection as a means to prostitute them for his own financial gain.  Once GODDARD recruited his victims, he advertised them on classifieds websites, such as Backpage.com (“Backpage”). 

To evade detection by law enforcement, the Enterprise’s advertisements often purported to be offering individuals as escorts.  However, such advertisements often signaled that they were, in fact, offering individuals for sale for commercial sex acts through a variety of cues, including pictures of scantily-clad minor and adult women in sexually provocative poses, with coded language indicating that the people being offered would perform commercial sex acts.

GODDARD’s victims typically engaged in commercial sex with multiple customers in a single day.  Customers typically paid for commercial sex with GODDARD’s victims in cash, and the victims were able to earn thousands of dollars from commercial sex in a single day.  All or most of the victims’ earnings from commercial sex was taken by GODDARD.

GODDARD set rules for his victims, controlled their actions, and punished violations of his rules and disobedience by using physical violence.  GODDARD threatened violence and physically beat his victims for, among other things, being disrespectful, owing GODDARD money, and holding back commercial sex earnings from GODDARD. 

GODDARD, 31, of the Bronx, is charged with one count of conspiracy to commit sex trafficking, which carries a maximum sentence of life in prison; one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison; one count of sex trafficking of a minor victim, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison; and one count of use of interstate facilities and interstate travel to promote a prostitution enterprise, which carries a maximum sentence of five 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 defendant will be determined by the judge.

Any individuals who believe they have information concerning JAMEL GODDARD, a/k/a “Payroll,” that may be relevant to the investigation, or information regarding other sex trafficking crimes, should contact the Federal Bureau of Investigation at (212) 384-1000 or https://tips.fbi.gov/, or the New York City Police Department at (646) 610-7272.

Mr. Kim praised the outstanding investigative work of the FBI and the NYPD.  Mr. Kim also thanked the Port Authority of New York and New Jersey - Youth Services Unit and the New York City Administration for Children’s Services for their assistance during the investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Elizabeth Hanft, Sagar K. Ravi, and Alexandra N. Rothman are in charge of the prosecution.

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

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

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

  Joon H. Kim, Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Field Division (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging nine members of a Bronx drug trafficking organization with narcotics and firearms trafficking offenses. The case is assigned to U.S. District Judge Kimba M. Wood.

Acting Manhattan U.S. Attorney Joon H. Kim said: “The defendants, members of a drug organization associated with the Crips street gang, allegedly sold large amounts of heroin, crack cocaine, and illegal firearms – including assault rifles – on the streets of the central Bronx. Together with our partners at the DEA and the NYPD, we are committed to protecting our city from drugs and illegal guns.”

DEA Special Agent in Charge James J. Hunt said: “Gun and drug trafficking have been the financial fortress behind gangs, such as the Hughes Avenue Organization. Unfortunately, these gangs set up shop in communities, intimidating neighborhoods and putting them in danger. Law enforcement has pooled resources to target drug gangs in this city and to remove those responsible for fueling gun violence and drug trafficking.”

According to the Indictment[1] unsealed in Manhattan federal court and statements made in court:

The members of the Hughes Avenue drug trafficking organization (the “Hughes Avenue DTO”) controlled narcotics trafficking near East Tremont Avenue, Hughes Avenue, and Belmont Avenue in the Bronx, New York. From 2016 to August 2017, members of the Hughes Avenue DTO sold heroin and crack cocaine in that area. Certain members of the Hughes Avenue DTO also illegally sold firearms for profit. firearms included an AK-47 assault rifle, an SKS assault rifle, a shotgun, and handguns. Members of the DTO are also members and associates of the “Rolling 30s” neighborhood set of the nationwide Crips street gang.

Count One of the Indictment charges ARIEL ACOSTA, a/k/a “A-Loc,” a/k/a “Blue,” a/k/a “True Blue,” ZORA BENITEZ, a/k/a “Baby," DERRICK RICHARDSON, a/k/a “J-Rock,” KEVIN RIVERA, a/k/a “Montana,” SANTOS RODRIGUEZ, a/k/a “Lefty,” EDWIN ROMAN, a/k/a “Capo,” KENNETH SAMPSON, a/k/a “Remo,” JAYLEN SCOTT-KING, a/k/a “Boo,” a/k/a “Legend,” a/k/a “Flirm,” and ALEXIS VALDEZ, a/k/a “Lil Rico,” with participating in a conspiracy to distribute one kilogram and more of heroin and 280 grams and more of crack cocaine.

Count Two of the Indictment charges ACOSTA, SCOTT-KING, and VALDEZ with firearms trafficking.

Counts Three and Four of the Indictment charge ACOSTA and VALDEZ with being felons in possession of firearms.

In a coordinated operation, eight of the defendants were arrested in New York on Tuesday afternoon and earlier today. Defendants ACOSTA, RICHARDSON, RODRIGUEZ, and VALDEZ were in custody on state charges and have been transferred to federal custody. They will be presented this afternoon in Manhattan federal court. BENITEZ remains at large. A chart identifying each defendant, the charges, and the maximum penalties is attached to this release.

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

The Office’s Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorneys Drew Skinner and Anden Chow 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.

CHARGE(S)	DEFENDANTS	MAXIMUM PENALTIES
Count One Narcotics conspiracy, 21 U.S.C. § 846 (Conspiracy to distribute and possess with intent to distribute 1 kilogram and more of heroin and 280 grams and more of crack cocaine.)	ARIEL ACOSTA, a/k/a “A-Loc,” a/k/a “Blue,” a/k/a “True Blue,”   ZORA BENITEZ, a/k/a “Baby,"   DERRICK RICHARDSON, a/k/a “J-Rock,”   KEVIN RIVERA, a/k/a “Montana,”   SANTOS RODRIGUEZ, a/k/a “Lefty,”   EDWIN ROMAN, a/k/a “Capo,”   KENNETH SAMPSON, a/k/a “Remo,”   JAYLEN SCOTT-KING, a/k/a “Boo,” a/k/a “Legend,” a/k/a “Flirm,”   ALEXIS VALDEZ, a/k/a “Lil Rico”	Lifetime imprisonment   Mandatory minimum: 10 years in prison
Count Two Firearms trafficking, 18 U.S.C. § 922(a)(1)(A)	ARIEL ACOSTA, a/k/a “A-Loc,” a/k/a “Blue,” a/k/a “True Blue,”   JAYLEN SCOTT-KING, a/k/a “Boo,” a/k/a “Legend,” a/k/a “Flirm,”   ALEXIS VALDEZ, a/k/a “Lil Rico”	5 years in prison
Count Three Felon in possession of firearms, 18 U.S.C. § 922(g)	ARIEL ACOSTA, a/k/a “A-Loc,” a/k/a “Blue,” a/k/a “True Blue,”   ALEXIS VALDEZ, a/k/a “Lil Rico”	10 years in prison
Count Four Felon in possession of firearms, 18 U.S.C. § 922(g)	ARIEL ACOSTA, a/k/a “A-Loc,” a/k/a “Blue,” a/k/a “True Blue,”   ALEXIS VALDEZ, a/k/a “Lil Rico”	10 years in prison

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