Former Mobile Phone Industry Employee Sentenced In Manhattan Federal Court To 33 Months In Prison For Role In Multimillion-Dollar Consumer Fraud Scheme

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that FRANCIS ASSIFUAH, a/k/a “Francis Assif,” was sentenced today to 33 months in prison for participating in a massive scheme to defraud consumers by placing unauthorized charges for text messaging services on their cell phone bills, through a practice known as “auto-subscribing.” Through their fraudulent scheme, ASSIFUAH and his co-conspirators charged millions of mobile phone customers $9.99 a month for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent. The fraud resulted in the theft of over $100 million from consumers throughout the United States. ASSIFUAH pled guilty to his role in the fraud on February 7, 2017, and was sentenced today in Manhattan federal court by the Honorable Katherine B. Forrest.

To date, four additional defendants, Andrew Bachman, Lin Miao, Michael Pajackowski, and Erdolo Eromo, have pled guilty in connection with their participation in the fraud, and one additional defendant, Fraser Thompson, was convicted by a jury on September 5, 2017, following a three-week trial.

Acting Manhattan U.S. Attorney Joon H. Kim said: “Francis Assifuah and his co-conspirators charged millions of cell phone customers for text message services they never signed up for, ultimately reaping more than $100 million from their scheme. Together with our law enforcement partners, we are committed to uncovering and prosecuting schemes that defraud consumers.”

According to the Indictment filed in Manhattan federal court, other court documents, and statements made in connection with ASSIFUAH’S guilty plea and sentencing:

ASSIFUAH is a former employee of Mobile Messenger, a mobile “aggregator” that compiled, or “aggregated,” charges for premium services – such as monthly horoscopes, celebrity gossip, and trivia facts – on consumers’ mobile phone bills. In the auto-subscribing scheme, Mobile Messenger worked with multiple different “content provider” companies, which sent consumers the unwanted text messages that ultimately resulted in the consumers being charged for services they had not authorized. Those content providers included a company called Tatto Media, which was operated by Miao; companies called CF Enterprises and DigiMobi, which were operated by Eugeni Tsvetnenko, a/k/a “Zhenya”; and a company called Bleam Technology, which was operated by ASSIFUAH.

While he was working at Mobile Messenger, ASSIFUAH worked with and befriended Eromo. In early 2012, Eromo approached Pajackowski, a fellow Mobile Messenger employee, and asked to participate more actively in the auto-subscribing activities that Pajackowski and others were engaging in with Tatto Media. After Pajackowski told Eromo there was no room for him in the Tatto Media auto-subscription, Pajackowski suggested that they recruit another content provider with technical expertise to help them expand the scheme. Eromo then met with ASSIFUAH at a trade show in Las Vegas and presented him with the plan to auto-subscribe, using Bleam Technology as the content provider. By the time Eromo returned from the Las Vegas trade show, ASSIFUAH had agreed to become involved in auto-subscribing. Shortly thereafter, Eromo, Pajackowski, and ASSIFUAH began to auto-subscribe consumers through Bleam Technology, using Mobile Messenger as the mobile aggregator.

The auto-subscription scheme, through all of the content providers that it involved, affected millions of consumers and generated over $100 million in criminal proceeds. 

In addition to the prison sentence, ASSIFUAH, 44, of Las Vegas, Nevada, was sentenced to two years of supervised release.

Mr. Kim praised the investigative work of the Internal Revenue Service - Criminal Investigation, and the Federal Bureau of Investigation, and expressed his sincere gratitude to the Federal Trade Commission for their support and assistance with the investigation.

If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.

Businessman Pleads Guilty To Conspiracy To Forge A Federal Judge’s Signature

The Defendant Used Counterfeit Court Orders to Get Websites Containing Unfavorable Postings About His Company De-Indexed From Google Search Results

  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 Michael Greco, the United States Marshal for the Southern District of New York (“USMS”), announced that MICHAEL ARNSTEIN pled guilty today before U.S. District Judge Andrew L. Carter Jr. to one count of conspiracy to forge a federal judge’s signature.  ARNSTEIN is scheduled to be sentenced by Judge Carter on January 16, 2018. 

Acting Manhattan U.S. Attorney Joon H. Kim said:  “As he admitted today, Michael Arnstein exploited the authority of the federal judiciary in a blatantly criminal scheme. By forging court orders and the signature of a U.S. District Judge, Arnstein was able to effectively erase websites critical of Arnstein’s business from its search results. Now Arnstein awaits sentencing in the same court he impersonated.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “Arnstein’s attempts to remove any trace of unfavorable information about his business posted online sent him down a slippery slope.  Not only did he commit a federal crime by forging a judge’s signature in furtherance of his scheme, but he now finds himself back on the Internet.  This time, however, it’s a story no search engine can erase.”

U.S. Marshal Michael Greco said:  “The outstanding combination of investigative efforts by the FBI and U.S. Marshals Service enabled deputies and special agents to expose an egregious attempt at forgery and deception by Michael Arnstein.  The Deputy U.S. Marshals assigned to the Southern District of New York’s Protective Intelligence Unit work tirelessly to investigate any and all forms of inappropriate communications in order to thwart such schemes.  As always, the U.S. Marshals Service is committed to protecting the safety, security and integrity of our federal judiciary and court family.”     

According to the allegations contained in the Complaint, the felony Information to which ARNSTEIN pled guilty, and statements made during the plea proceeding and other court proceedings:

Between February 2014 and February 2017, ARNSTEIN engaged in a brazen scheme to submit counterfeit federal court orders to Google, Inc. (“Google”) in an effort to get websites containing unfavorable postings about ARNSTEIN’s business de-indexed from Google’s internet search results. In furtherance of this scheme, ARNSTEIN and others forged the signature of a United States District Judge for the Southern District of New York on over ten counterfeit court orders.  These counterfeit orders listed the websites containing purportedly defamatory information about ARNSTEIN’s business and ordered the removal of such information from the websites.  ARNSTEIN then submitted the counterfeit orders, which appeared to be valid on their face, to Google and requested that Google de-index the websites containing the purportedly defamatory information.  ARNSTEIN often succeeded in getting the websites de-indexed using the counterfeit court orders.   

ARNSTEIN, 40, of Kailua, Hawaii, pled guilty to one count of conspiracy to forge a judicial signature, which carries a maximum sentence of five years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the United States Marshals Service.  Mr. Kim also thanked Google for its helpful assistance in this investigation. 

A.G. Schneiderman Announces Guilty Plea Of Bronx County Man For His Role In Heroin Trafficking Ring

Jeremey Collazo Sold Over 2,000 Glassines Of Heroin To An Undercover Detective, Will Be Sentenced  To 3 Years In Prison

  Attorney General Eric T. Schneiderman announced the guilty plea of Jeremey Collazo for his role in a drug trafficking ring that distributed heroin throughout New York and Bronx counties. On four separate dates, Collazo was captured selling plastic bags filled with heroin to an undercover detective.  In one instance, Collazo smuggled the heroin inside audio speakers into a storage unit that was utilized by law enforcement and outfitted with undercover cameras.  Once inside of the storage unit, Collazo opened the speakers and removed the hidden heroin bags to give it to the undercover detective. In total, Collazo sold more than 2,000 glassines of heroin during the course of this investigation.

The narcotics dealing was part of “Operation Steal Horses” a long-term investigation conducted by the Attorney General’s Organized Crime Task Force and the New York Police Department’s Auto Crime Division, which resulted in the arrest of a ten individuals in Bronx County for participating in organized motorcycle-theft and narcotics rings.

“We’ll continue to act to take dangerous drugs – and those who deal them – off our streets,” said Attorney General Schneiderman. “Too many New York families are plagued by the opioid epidemic and the violence that often come with it. We’re committed to continuing to work tirelessly with our partners in local law enforcement to stop the flow of illegal and dangerous drugs.”

As part of the long-term investigation, law enforcement also employed street-side covert cameras, confidential informants, and undercover officers. 

Collazo, 30, of Bronx County, pled guilty on September 13, 2017 to Criminal Sale of a Controlled Substance in the Third Degree, a B level felony conviction.  He is scheduled to be sentenced by Bronx County Supreme Court Justice Steven L. Barrett, on October 4, 2017, to 3 years in prison, with 5 years of post-release supervision. The Bronx County motorcycle and heroin indictments against the remaining defendants are still pending.

The Attorney General’s Organized Crime Task Force (OCTF) has now taken down 25 large drug trafficking gangs, made more than 580 felony narcotics arrests, and seized more than $1.5 million and more than 2,000 pounds of illegal drugs since 2011. In the past several months alone, Attorney General Schneiderman’s new Suburban and Upstate Response to the Growing Epidemic (“S.U.R.G.E.”) Initiative—a crackdown on New York’s growing heroin, opioid, and narcotics trafficking networks—has resulted in 260 alleged traffickers and dealers taken off the streets across New York, through Operation Bricktown, Operation Un-Wise, Operation Gravy Train, Operation Bloodsport, Operation Pipeline, and Operation Wrecking Ball.

The charges against the remaining defendants are merely accusations and the defendants are presumed innocent until and unless proven guilty in a court of law.

A.G. Schneiderman Announces First-Of-Its-Kind Partnership With Four NYC Non-Profits To Demonstrate Benefits Of All-Electric Trucks

Project "E3” (E-Cubed) Will Equip Wildlife Conservation Society, NY Botanical Garden, Habitat For Humanity NYC, & Big Reuse With Electric Delivery Trucks For Two Years

E3 Funded Through Attorney General’s $9.5 Million Clean Air Settlement With American Electric Power 

In NYC, Trucks Produce Over 70% Of Traffic-Related Soot Pollution – Pollution That Causes 320 Premature Deaths And 870 Emergency Room Visits And Hospitalizations In The City Every Single Year

  Attorney General Eric T. Schneiderman, along with four prominent New York City-based non-profits, today announced a first-of-it-kind partnership, coined "E3” (E-Cubed), to highlight the economic, efficiency and environmental benefits that all-electric delivery trucks could have for New Yorkers. The innovative project will give the Wildlife Conservation Society, New York Botanical Garden, Habitat for Humanity New York City, and Big Reuse the opportunity to lease battery-powered electric delivery trucks for two years, while documenting the benefits of the trucks’ use in New York City. The initiative furthers the Attorney General’s commitment to protecting New Yorkers from dangerous pollution and its public health impacts, as the project is funded by a $9.5 million settlement the Attorney General’s Office reached with American Electric Power, the largest U.S. power company, over the company’s violations of the federal Clean Air Act. 

"New Yorkers deserve access to clean, safe and healthy environments,” said Attorney General Schneiderman. “Electric trucks offer an alternative to the gas and diesel powered delivery trucks that pump noise, greenhouse gases, and other pollution into our neighborhoods – and have a dire impact on our public health and environment. This innovative partnership will showcase how zero-emission vehicles can offer a cleaner, greener, healthier, and more affordable solution for New Yorkers.” 

The participating non-profit organizations, chosen through a competitive application process, will each receive funding from the Attorney General to lease two all-electric Mitsubishi Fuso “eCanter” medium-duty delivery trucks to support core operations and services for two years.  

During this period, the Attorney General and M.J. Bradley & Associates—a firm with an established practice in the implementation of advanced vehicle technologies—will study the performance of the electric trucks deployed in the project, and document their utility and benefits in New York City. The Attorney General’s Office will then prepare a report on the study’s findings with the goal of addressing common concerns of private truck fleet operators about adopting electric trucks by validating the reliability and business case for these vehicles.

John Calvelli, Executive Vice President for Public Affairs of the Wildlife Conservation Society, said, “As a global conservation organization working in 60 countries and all the world’s oceans, as well as managing the world’s largest network of urban zoos, we have seen firsthand the impacts of climate change and other air pollution on wildlife and wild places. Attorney General Schneiderman has shown real leadership in tackling this issue head on, and we are grateful and honored to be part of the solution by participating in this project to use electric trucks at our zoos in New York City.”

Gregory Long, Chief Executive Officer and The William C. Steere Sr. President of The New York Botanical Garden, said, “We are very grateful to Attorney General Schneiderman for this opportunity to add two all-electric trucks to our fleet of vehicles. As an institution, we are committed to being on the cutting edge of energy efficiency and to reducing our carbon emissions to the greatest possible extent. We are extremely proud to have been chosen by the Attorney General to demonstrate these electric trucks, and we intend to use them both at the Botanical Garden and on the streets of New York City so people will see the important role that these innovative vehicles can play in protecting our environment.”

Because they deliver more than 91 percent of all goods in New York City, trucks have a substantial impact on the city’s air quality. According to the American Lung Association, New York City is one of the worst cities in the nation for soot pollution, which contributes to heart disease, respiratory illness, and death. This is underscored by the fact that soot pollution from traffic in the New York City has been found to cause 320 premature deaths and 870 emergency room visits and hospitalizations annually, according to the New York Health Department. Trucks are responsible for over 70 percent of traffic-related soot – more than twice as much to this soot pollution as passenger cars and ten times than buses. Notably, the impacts of soot pollution are most acutely felt by the city’s low-income communities, with the poorest neighborhoods experiencing 1.7 times higher soot exposures and 9.3 times the rate of emergency department visits for asthma due to emissions from trucks and buses.  

Experts argue that delivery trucks operating in urban centers are ideally suited for "electrification." This is because urban delivery trucks typically work out of a central depot, and travel relatively short, well-defined routes. In this way, two major obstacles to all-electric vehicles – limits on vehicle range and the availability of charging stations – are largely irrelevant to operating electric delivery trucks in cities.  In addition, electric trucks are less polluting, more fuel efficient, and cost less to maintain than conventional gas and diesel-fueled trucks.  

Today’s announcement follows a number of other steps Attorney General Schneiderman has taken to protect New Yorkers’ air and health, including filing suit against the Environmental Protection Agency for its illegal delay of smog regulations; within days, the EPA reversed course.

City Hall in Your Borough: City Resource Fair - Wednesday, September 27, 2017 - TO BE HELD IN HARLEM

  On Wednesday, September 27, Mayor Bill de Blasio and Manhattan Borough President Gale A. Brewer will host a City Resource Fair during City Hall in Your Borough week. Top representatives from City Hall, the Mayor’s Office for Immigrant Affairs, the Department of Transportation, Department of Finance, NYPD, Economic Development Corporation, Department of Education, Department of Health, Small Business Services, Department of Parks and Recreation, among others, will be available to answer Manhattan residents’ questions. 

Manhattanites can sign up to attend via at nyc.gov/Manhattan or call (212) 748-0281.

WHAT:           City Hall in Your Borough: City Resource Fair

WHEN:           Wednesday, September 27, 2017

                                10:30 A.M. – 2:30 P.M.

WHERE:         Malcolm X and Dr. Betty Shabazz Memorial and Educational Center

3940 Broadway

New York, NY 10032

VISION ZERO: MAYOR DE BLASIO ANNOUNCES ARRIVAL OF CITY HALL PROTECTED BIKE LANE

New traffic configuration on Park Row removes conflicts, improving safety of drivers, pedestrians and cyclists; new two-way bicycle lane creates a more seamless connection to the Brooklyn Bridge from Lower Manhattan

  Mayor Bill de Blasio today announced a new traffic configuration on Park Row next to City Hall, including a two-way protected bike lane, a new crosswalk and a network of lanes of more than two miles around lower Manhattan and the Financial District, increasing safety for cyclists, pedestrians and motorists trying to reach the Brooklyn Bridge from the Financial District. DOT crews expect to complete final elements of the project in the next week.

“We are committed to making cycling in New York City safe, and that includes making changes right on the doorstep of City Hall. For thousands of cyclist who cross the Brooklyn Bridge each day, this means a much safer ride,” said Mayor de Blasio. “Two weeks ago, we announced our plans to next year bring pedestrian and bicycle access to Park Row north of City Hall going to Chinatown.  Today, on a different stretch of Park Row, we have already created the new City Hall two-way bike path that will also make a big difference.  In Lower Manhattan, where every inch of real estate is in incredible demand, credit goes to DOT engineers and planners who found the way to make these streets safer for everyone -- all while relocating vehicle parking and traffic with minimal disruption.”

The new City Hall bike lane is less than 400 feet long but is in an area of high pedestrian and cycling demand, where the previous one-way southbound bike lane often led to unsafe interactions.  For example, according to DOT counts, on a single weekday in 2015, more than 500 of 1647 total cyclists cycled the wrong way (north) on Park Row -- riding against traffic on the street’s west side, often on the sidewalk. 

Between 2009 and 2014, these few blocks of Park Row saw four cyclist injuries, including one severe injury.  The project’s major pedestrian improvements include a new crosswalk across Park Row at Spruce Street, where in a peak hour, DOT counted 55 pedestrians making the previously unprotected crossing on the north side of Spruce Street.  As part of the project, other pedestrian crossings across Park Row were also shortened with widened curbs and the expansion of center medians.  As part of the redesign, authorized parking that had been previously located on the west side of Park Row was relocated to the expanded center median area.

“Under Mayor de Blasio and Vision Zero, we have added hundreds of miles of bicycle lanes and improved countless intersections and crosswalks around New York City, but this relatively small Park Row project proves that sometimes it’s not about quantity, it’s about quality,” said DOT Commissioner Polly Trottenberg.  “In one of Lower Manhattan’s busiest areas, a few hundred feet of bike lanes and a single new crosswalk will make a real and consequential difference to the safety and convenience of thousands of daily users.”

As part of its continued commitment to expanding New York City’s bike network, which now has over 1,130 miles, DOT also announced that it expect to this fall complete a new two-mile network of bicycle lanes around lower Manhattan that connect the Brooklyn Bridge to Battery Park.  The network, including the new City Hall bike lane, adds bike lanes and shared lanes onto streets in the Financial District. This project is among several designed to improve bike access and connectivity to bridges, including at both sides of the Brooklyn Bridge this past year, with plans for the Williamsburg Bridge in the next year.

REP. ADRIANO ESPAILLAT SEEKS DEPARTMENT OF JUSTICE (DOJ) OVERSIGHT AND REJECTION OF PROPOSED AT&T AND TIME WARNER MERGERREP. ADRIANO ESPAILLAT SEEKS DEPARTMENT OF JUSTICE (DOJ) OVERSIGHT AND REJECTION OF PROPOSED AT&T AND TIME WARNER MERGER

  Rep. Adriano Espaillat (NY-13) released the following statement in response to the proposed merger between AT&T and Time Warner. In his letter to Attorney General Jeff Sessions, Rep. Espaillat urges the Department of Justice to reject the merger if independent voices like Televisión Dominicana are not protected, as not taking them into consideration would have adverse and direct impacts on minority consumers and minority on- air talent.   

“I am deeply concerned about the proposed merger between AT&T and Time Warner and have called upon the Department of Justice to provide strict oversight during its analysis and to reject this deal,” said Rep. Adriano Espaillat. “AT&T U-verse and DIRECTV have recently demonstrated their indifference to keeping independent voices and minority talent on air with its decision to remove Televisión Dominicana from its lineup, and it has become more clear than ever before that DOJ must closely scrutinize such transactions in order to protect diversity and competition within the media marketplace.

“As the first Dominican-American elected to serve in the U.S. Congress, I take this issue very seriously. Televisión Dominicana is AT&T and DIRECTV’s only channel that services the Dominican community, the 4th largest Hispanic community in the U.S.  Televisión Dominicana provides a necessary pipeline of culturally significant news and information directly from the Dominican Republic, as well as offering programming produced by Dominican-Americans in the U.S.  The network plays a critical role in strengthening communities, both for immigrant families establishing new lives in the United States and Dominican-Americans seeking connections to their homeland. Yet, the decision to remove the program was made at the most critical time as families prepared for the impact of Hurricane Irma, leaving many in the dark during an emergency.

“I have repeatedly contacted AT&T about this matter and have received a series of unsatisfactory answers regarding Televisión Dominicana’s removal.  I believe this decision directly contradicts AT&T’s commitment to protecting diverse voices and minority communities as promised during its acquisition of DIRECTV, and I urge the Department of Justice to strongly consider rejecting the recent proposed merger between AT&T and Time Warner in an effort to protect independent voices like Televisión Dominicana and other stations popular within minority communities.”

Bronx Primary Day Review

  In looking at the final results from primary day several thoughts can come from the voting. Yes the Bronx Democratic County organization had a Clean Sweep of the contested races that were contained entirely in the Bronx. In the one Manhattan/Bronx council race everyone was the winner since current City Council Speaker Melissa Mark-Viverito is term-limited out of office, and gone.

  Mayor Bill de Blasio while he won only received three out of every four votes against a field of nobody's. Bronx Borough President Ruben Diaz Jr. was most impressive by getting the results expected by blasting both his opponents combined by almost the percentage that the mayor received. However Diaz Jr. may have been the only good thing for the County organization with the exception of no primaries in the 11th, 15th, and 16th council districts.

  Incumbents won their races where primaries occurred. Incumbent 17th Councilman Rafael Salamanca did the best with  73 percent of the vote in his one on one race with Helen Hines who received 27 percent of the vote. In the 12th Council district incumbent Councilman Andy King won with 69 percent of the vote over two opponents. However the third incumbent 14th district Councilman Fernando Cabrera was only able to pick up 55 percent of the vote with his second place finisher Randy Abreau picking up 35 percent of the vote, with 10 percent going to 86th A.D. based Felix Perdomo.

  The county organization seemed to have problems in the two open council districts. While Bronx Borough President Ruben Diaz Jr. received 86 percent of the vote, in the 18th council district his father Ruben Diaz Sr. won a five person race with only 42 percent of the vote. Second was Amanda Faris 21 percent, third Elvin Garcia 15 percent, fourth Michael Beltzer 14 percent, and fifth William Moore at 9 percent. 

  The hottest race this primary was in the 13th council district, which I said back in January right after Assemblyman Mark Gjonaj announced he was running would be. In this race it was much closer than expected (even by me), as Assemblyman Gjonaj won with 39 percent of the vote (which I had projected he would get), coming in second was Marjorie Velazquez with 34 percent, third John Doyle with 19 percent, fourth Victor Ortiz with 5 percent, and fifth Egidio Sementilli with 3 percent.

  In the 13th council race several things happened including the return to the primary ballot of one candidate (of two) who were knocked off, which sparked charges of fraud on the challenger of that candidate after some testimony by said challenger. It also made the record books with the amount of money spent by one candidate, of which the total figure has not yet been recorded by the Campaign Finance Board. 

  On to the general election, and in every council district except the 13 the Democratic candidate will cruise to a victory. Since the number two and three finishers from the Democratic primary have minor party lines it is not known yet what their presence on the November ballot will do to the Democratic candidate. This is also the one Bronx council district which has the largest concentration of Republican/Conservative voters also. It should make for an interesting November election, at least in the 13th council district.