Woman Charged For Defrauding Donors Of Over $50,000 By Misrepresenting That She Had Terminal Cancer

  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 Office of the Federal Bureau of Investigation (“FBI”), and Emil Califano, Chief of the Village of Ardsley Police Department, announced today charges against VEDOUTIE HOOBRAJ, a/k/a “Shivonie Deokaran,” for allegedly engaging in a scheme to defraud donors through false representations that she had been diagnosed with terminal leukemia and needed money to pay for her treatments.   HOOBRAJ was arrested in Orlando, Florida this morning and will be presented before a Magistrate Judge in the Middle District of Florida. 

Acting Manhattan U.S. Attorney Joon H. Kim said:  “Vedoutie Hoobraj allegedly concocted an elaborate story about having cancer when she did not, using GoFundMe pages and accepting money raised by a local high school, all supposedly to fund her medical care.  Hoobraj even falsified medical records for donors to conceal the fraud.  I commend our law enforcement partners for thwarting this allegedly brazen fraud.”

Assistant Director-in-Charge William F. Sweeney Jr. said:  “Vedoutie Hoobraj went to great lengths to hide behind her self-fabricated cancer diagnosis.  Not only did she allegedly allow the people of her community to hold fundraisers on her behalf, including a local high school football team, but sat idly by as they showered her and her family with their love, money, and unwavering support.  To further aggravate the matter, as alleged, she actively peddled her story in an effort to make more money; falsely claimed that she received treatment from legitimate doctors and hospitals; and produced fake test results to support her claims. Hoobraj's alleged crime is not only an injustice to those who were kind enough to help her, but also to those who do truly need the support of their communities and may now be met with suspicion because of Hoobraj’s alleged behavior.”    

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

Beginning in at least about October 2014 and through at least March 2016, in Westchester County, New York, and elsewhere, HOOBRAJ engaged in a scheme that solicited donations through fraudulent representations that she had been diagnosed with terminal cancer and needed money for living and medical expenses.   

HOOBRAJ obtained donations from donors through checks and fund transfers to two GoFundMe fundraising websites set up in October 2014 and August 2015 on her behalf.  The GoFundMe websites represented, among other things, that HOOBRAJ was diagnosed with leukemia and given eighteen months to live, and that HOOBRAJ’s family was suffering financial burdens from her chemotherapy treatments and other medical and living expenses.  HOOBRAJ publicized the sites in online posts and emails, among other means. 

As alleged in the Complaint, HOOBRAJ received in excess of $50,000 in donations from over 300 individuals in Ardsley, New York, and elsewhere based on these and other related misrepresentations.   Between October 2014 and December 2015, HOOBRAJ transferred a total of approximately $32,600 from an Ohio bank account operated by GoFundMe’s payment processor vendor to HOOBRAJ’s bank account in New York.  In or about November 2015, HOOBRAJ deposited two donation checks totaling $16,274 from the Student Activity Fund of Ardsley High School, in Ardsley, New York, representing proceeds of a fundraising event organized in part by a donor (“Individual-1”).  HOOBRAJ also deposited other donation checks.

In an interview with a detective at the Ardsley Police Department on or about January 20, 2016, HOOBRAJ stated, among other things, that she had been diagnosed with terminal cancer by a specified doctor at Sloan Kettering Medical Center who died in an earthquake in Nepal in April 2015, was currently being treated by another specified doctor, and had also gone to “Mount Kisco Medical Center” and “Bronx Lebanon Hospital” for treatments.  However, as alleged in the Complaint, HOOBRAJ had never been treated by these doctors and medical centers.

In or about March 2016, in an effort to prove that she had cancer, HOOBRAJ used the online messaging platform Facebook Messenger to send Individual-1 a screenshot of HOOBRAJ’s purported laboratory tests from a January 29, 2016, examination at Jacobi Medical Center in the Bronx, New York (“Jacobi”).  The results presented by HOOBRAJ appeared to indicate that her hemoglobin, platelet counts, and red blood cell counts were all outside the stated normal ranges.  Records obtained from Jacobi as part of this investigation, however, revealed that the document sent by HOOBRAJ was a forgery, and that the actual medical record previously provided by Jacobi to HOOBRAJ stated, “Your labs turned out to show no abnormalities.”   

VEDOUTIE HOOBRAJ, a/k/a “Shivonie Deokaran,” 38, of Orlando, Florida, has been charged in the Complaint with one count of wire fraud, which carries a maximum prison term of 20 years.

Mr. Kim praised the investigative work of the FBI and the Ardsley Police Department.  Mr. Kim also thanked the Westchester County District Attorney’s Office for its assistance.               

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

Investment Bank Vice President Pleads Guilty To Insider Trading

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that AVANEESH KRISHNAMOORTHY, who worked as a vice president and risk management specialist for a Manhattan-based investment bank (the “Investment Bank”), pled guilty earlier today to a criminal Information (the “Information”) charging him with engaging in a scheme to commit insider trading. KRISHNAMOORTHY made over $78,000 by trading in the stock and options of three publicly traded companies based on material nonpublic information he misappropriated from the Investment Bank and its parent company (the “Company”). KRISHNAMOORTHY pled guilty before United States District Judge Jesse M. Furman.

Acting U.S. Attorney Joon H. Kim said: “As he admitted today in federal court, Avaneesh Krishnamoorthy abused his position as an investment bank executive to get nonpublic information about several companies and then trade on it. We remain committed to prosecuting financial professionals whose greed drives them to break the law.”

According to the allegations in court documents, including the Information and a previously filed criminal complaint, and statements made during court proceedings:

As a vice president and risk management specialist, KRISHNAMOORTHY was given access to material, nonpublic information concerning mergers and acquisitions in which the Investment Bank was potentially going to be retained.

In November 2016, the Investment Bank was contacted about financing the acquisition of Neustar, Inc., a company whose shares are traded on the New York Stock Exchange, by a private equity fund (the “Fund”). KRISHANMOORTHY received multiple emails regarding the Investment Bank’s potential involvement in the transaction, which also summarized the mechanics of the deal. In violation of the Company’s policies and in breach of his duties to the Company and its clients, KRISHNAMOORTHY used this material nonpublic information to acquire Neustar stock and options. In the days and weeks after receiving the emails, KRISHNAMOORTHY purchased numerous Neustar call options and hundreds of shares of Neustar stock before the public announcement of the transaction. KRISHANMOORTHY did not reveal these trades or the existence of the underlying brokerage accounts to the Company. The price of Neustar stock increased by approximately 20% following the public announcement of the Fund’s acquisition of Neustar on December 14, 2016. KRISHNAMOORTHY also used material nonpublic information that he received from the Company to make profitable trades in securities of Cabelas Inc. and Axiall Corporation.

As a result of the scheme, KRISHNAMOORTHY reaped over $78,000 in ill-gotten gains, which he has agreed to forfeit to the Government as part of his plea agreement.

KRISHNAMOORTHY, 42, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

KRISHNAMOORTHY is scheduled to be sentenced November 21, 2017.

Mr. Kim praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission.

A.G. Schneiderman And Comptroller Dinapoli Announce 2 To 6 Year Prison Sentence For Former Councilman Ruben Wills In Public Corruption Scheme

  Attorney General Eric T. Schneiderman and State Comptroller Thomas P. DiNapoli announced the sentencing of former New York City Councilman Ruben Wills (D-Queens) to 2 to 6 years in prison; Will was also ordered to pay nearly $33,000 in restitution and a $5,000 fine.'

The sentencing followed an eleven-day trial in July that resulted in a guilty verdict on five counts related to Will’s theft of approximately $30,000 in public campaign funds and state grant money. The jury found Wills guilty of one count of Scheme to Defraud in the First Degree, two counts of Grand Larceny in the Third Degree , and two counts of Offering a False Instrument for Filing in the First Degree. Wills was previously expelled from the New York City Council; he was immediately taken into custody today. 

“New Yorkers deserve public servants whose priority is the needs of their constituents, not lining their own pockets. Instead of spending taxpayer money on projects to help his community, Ruben Wills betrayed the public trust by stealing tens of thousands for himself – and he’ll now pay the price,” said Attorney General Eric Schneiderman. “We will continue to ensure that public servants who act as though they’re above the law are brought to justice.”

"Ruben Wills stole money meant to benefit the community he was sworn to serve. Thanks to my investigators and auditors working with Attorney General Eric Schneiderman, Mr. Wills has been brought to justice," said State Comptroller Thomas P. DiNapoli. “We must have a zero tolerance for public corruption and we will continue to partner with law enforcement to root out fraud and protect the taxpayers."  

In addition to serving 2 to 6 years in prison, Wills will pay $11,500 in restitution to the New York City Campaign Finance Board and $21,374 to the New York State Office of Children and Family Services (OCFS). He will also pay a $5,000 fine.

The jury found that, Wills used public matching funds from his 2009 campaign for City Council to pay $11,500 to Micro Targeting, a shell company purportedly created to translate and distribute campaign literature. Prosecutors proved that the money paid to Micro Targeting was instead redirected to NY 4 Life, a non-profit corporation  that Wills controlled. Wills withdrew the money and made a series of personal purchases, including at Macy’s, where he used a portion of the funds to purchase a $750 Louis Vuitton handbag.  

Prosecutors also detailed how Wills used $21,000 in State grant funds for personal and political expenses. 

The $21,000 was part of a $33,000 grant provided to NY 4 Life from the OCFS, earmarked by former State Senator Shirley Huntley while Wills was serving as Huntley’s chief of staff. The grant stipulated that the money had to be used to conduct four public service projects. Yet witnesses at trial testified that NY 4 Life only held one event during the contract period, while Wills used approximately $21,000 of the funds for personal and political expenses, including at Nordstrom and Home Depot. Wills also used a portion of the money to pay individuals who had carried out campaign work for his City Council race. 

Judge Ira Margulis presided over the trial and sentencing. 

Since 2011, Attorney General Schneiderman, through his “Operation Integrity” partnership with Comptroller DiNapoli, has brought charges against dozens of individuals implicated in public corruption schemes around the state – resulting in the return of over $11 million in restitution to taxpayers through these convictions. 

A.G. Schneiderman Announces $5.5 Million Multi-State Settlement With Nationwide Mutual Insurance Company Over 2012 Data Breach

Breach Involving 32 States Exposed Personal Information Of 1.27 Million Consumers, Including 2,810 New Yorkers

New York State Will Receive Nearly $104,000

  Attorney General Schneiderman  announced that New York, along with 32 other states, has reached a settlement with the Nationwide Mutual Insurance Company and its subsidiary, Allied Property & Casualty Insurance Company, concerning an October 2012 data breach. The data breach, which the states allege had been caused by the failure to apply a critical security patch intended to prevent hacking or viral infection, resulted in the loss of personal information belonging to 1.27 million consumers – including 2,810 New Yorkers. The breach included social security numbers, driver’s license numbers, credit scoring information, and other personal data initially collected to provide insurance quotes to consumers applying for Nationwide insurance plans—many of whom did not ultimately become insured by the company. In addition to agreeing to improve its data security, Nationwide will pay a total of $5.5 million, including $103,736.78 to New York State.

Click here to read the settlement.

“Nationwide demonstrated true carelessness while collecting and retaining information from prospective customers, needlessly exposing their personal data in the process,” said Attorney General Schneiderman. “This settlement should serve as a reminder that companies have a responsibility to protect consumers’ personal information regardless of whether or not those consumers become customers. We will hold companies to account if they don’t.”

The settlement requires Nationwide to take a number of steps to both update its security practices and to ensure the timely application of patches and other updates to its security software. Nationwide must also hire a technology officer responsible for monitoring and managing software and application security updates, including supervising employees responsible for evaluating and coordinating the maintenance, management, and application of all security patches and software and application security updates. Additionally, Nationwide agreed to take steps during the next three years to strengthen its security practices, including:

• Updating its procedures and policies relating to the maintenance and storage of consumers’ personal data.
• Conducting regular inventories of the patches and updates applied to its systems used to maintain consumers’ personal information.
• Maintaining and utilizing system tools to monitor the health and security of their systems used to maintain personal information.
• Performing internal assessments of its patch management practices and hiring an outside, independent provider to perform an annual audit of its practices regarding the collection and maintenance of personal information.

Many of the consumers whose data was lost as a result of the breach were consumers who never became Nationwide’s insureds, but the company retained their data in order to more easily provide the consumers re-quotes at a later date. Following the breach, affected consumers were provided with free credit monitoring and identity theft protection, in addition to identity fraud expense coverage up to $1 million and access to credit reports. The settlement announced today requires Nationwide to be more transparent about its data collection practices, including by disclosing to consumers that it retains their personal information, even if they do not become its customers.

The settlement was signed by a total of 33 Attorneys General, including New York, Alaska, Arizona, Arkansas, Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, and the District of Columbia.

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