Florida Resident Sentenced To Prison For Preparing Fraudulent Tax Returns

Caused IRS Loss of More than $1.2 Million

   Joon H. Kim, the Acting United States for the Southern District of New York, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, announced that DAMYON SHULER was sentenced today in White Plains federal court to 18 months in prison for filing false tax returns.  SHULER pled guilty in April before U.S. District Court Judge Nelson S. Román, who also imposed today’s sentence.

According to documents filed with the court, from February 2010 through March 2011, SHULER, 47, of Orange City, Florida, approached relatives and others and told them that he could claim slave reparations on their behalf by filing tax returns with the Internal Revenue Service (IRS), for which he charged a $4,000 to $5,000 fee.  SHULER then filed 30 returns with the IRS on behalf of other taxpayers, claiming bogus refunds of between $48,184 and $61,300 on each return. 

To generate the fraudulent refunds, SHULER reported fake capital gains income and taxes paid on that income in the exact same amount.  He also attached to each return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Black Invest Taxes” had paid the taxes to the IRS.  To conceal that he prepared these returns, SHULER did not list himself as the preparer.  SHULER also filed a fraudulent 2009 income tax return for himself claiming a refund of $46,685 based on the same scheme.  In total, SHULER’s fraudulent refund scheme led to losses of more than $1.2 million.   

In addition to the term of prison imposed, U.S. District Court Judge Nelson S. Román ordered SHULER to serve one year of supervised release and to pay restitution to the IRS in the amount of $1,180,150.

Mr. Kim thanked IRS Criminal Investigation for its work on the investigation.

Global Telecommunications Company And Its Subsidiary To Pay More Than $965 Million In Penalties In Massive Bribery Scheme Involving Uzbek Official

Third Largest-Ever Global FCPA Resolution

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York (“SDNY”), Kenneth A. Blanco, the Acting Assistant Attorney General for the Criminal Division of the Department of Justice (“DOJ”), Don Fort, Chief of the Criminal Investigation Division, Internal Revenue Service (“IRS-CI”), and Patrick J. Lechleitner, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) Washington, D.C., Field Office, announced today the filing of criminal charges against Telia Company AB (“Telia”), a multinational telecommunications company headquartered in Sweden, whose securities traded publicly in New York from 2002 until 2007, and its Uzbek subsidiary, Coscom LLC  (“Coscom”), for conspiring to violate the Foreign Corrupt Practices Act (“FCPA”) by paying more than $331 million in bribes to a government official in Uzbekistan. 

Mr. Kim also announced that in connection with the filed charges, Coscom pled guilty today before UnitedStates District Judge George B. Daniels, and SDNY and DOJ entered into a deferred prosecution agreement (“DPA”) with Telia.  Pursuant to the DPA, Telia admitted to participating in the charged conspiracy.  Telia will pay a total criminal penalty of $274,603,972 to the United States, which includes a $500,000 criminal fine and $40 million in criminal forfeiture that Telia agreed to pay on behalf of Coscom.  Telia also agreed to implement rigorous internal controls and cooperate fully with the Government’s ongoing investigation, including its investigation of individuals.

In related proceedings, Telia reached a settlement with the U.S. Securities and Exchange Commission (“SEC”) and the Public Prosecution Service of the Netherlands (“PPS”).  Under the terms of its civil resolution with the SEC, Telia agreed to pay $457,169,977 in disgorgement of profits and prejudgment interest.  Finally, Telia agreed to pay the PPS a criminal penalty of $274 million, which, together with the criminal penalty paid to the United States, yieldstotal criminal penalties of $548,603,972.  Because the SEC agreed to credit the $40 million paid in criminal forfeiture against the civil settlement amount, the total criminal and regulatory penalties to be paid by Telia is $965,773,949.

           

Acting U.S. Attorney Joon H. Kim said:  “Today, we announce one of the largest criminal corporate bribery and corruption resolutions ever, with penalties totaling just under a billion dollars.  Swedish telecom company Telia and its Uzbek subsidiary Coscom have admitted to paying, over many years, more than $331 million in bribes to an Uzbek government official.  Telia, whose securities traded publicly in New York, corruptly built a lucrative telecommunications business in Uzbekistan, using bribe payments wired around the world through accounts here in New York City.  If your securities trade on our exchanges and you use our banks to move ill-gotten money, then you have to abide by our country’s laws.  Telia and Coscom refused to do so, and they have been held accountable in Manhattan federal court today.” 

Acting Assistant Attorney General Kenneth A. Blanco said:  “This resolution underscores the Department’s continued and unwavering commitment to robust FCPA and white-collar criminal enforcement.  It also demonstrates the Department’s cooperative posture with its foreign counterparts to stamp out international corruption and to reach fair, appropriate and coordinated resolutions.  Foreign and domestic companies that pay bribes put honest companies at a disadvantage and distort the free and fair market and the rule of law.  Today’s resolution reflects the significant efforts of law enforcement, the Criminal Division and the U.S. Attorney’s Office for the Southern District of New York to bring such companies to justice, and to maintain a competitive and level playing field for companies to do business, create jobs and thrive.”

IRS-CI Chief Don Fort said:  “Today marks the second resolution of proceedings against corporate entities who have engaged in a global bribery scheme of government officials.  It also further demonstrates the dedication we have to identifying illegal financial transactions being used for bribery in the international community.  It is important that the global economy remain on a fair playing field and IRS-CI will remain committed in our efforts to dismantle these kinds of corrupt financial schemes.”

HSI Special Agent in Charge Patrick J. Lechleitner said:  “Today’s resolution marks a win against a foreign corruption scheme where millions of dollars in bribery funds were paid to Uzbekistan officials and laundered through the U.S. financial system.  HSI, working hand in hand with our partners at IRS Criminal Investigation, leveled the playing field for publicly traded companies by exposing these corrupt practices and helped the U.S. government collect nearly $275 million in criminal penalties.”

According to the allegations contained in the criminal Informations, which was filed today in Manhattan federal court, the statement of facts set forth in the DPA, and other publicly available information:

Between approximately 2007 and 2012, Telia and Coscom, through various executives, employees, and affiliated entities, paid more than $331 million in bribes to illegally obtain telecommunications business in Uzbekistan.  The bribes were paid to an Uzbek government official who was a close relative of a high-ranking government official and who exercised influence over Uzbek telecommunications industry regulators.  Telia and Coscom structured and concealed the bribes through various payments to a shell company that certain Telia and Coscom management knew was beneficially owned by the foreign official.  The bribes were paid on multiple occasions over a period of approximately five years so that Telia could enter the Uzbek market and Coscom could gain valuable telecom assets and continue operating in Uzbekistan. 

Under the direction and control of the Uzbek government official, more than $331 million in bribery proceeds were laundered through accounts held in various countries around the world.  The illicit funds were transmitted through financial institutions in the Southern District of New York before they were deposited into accounts in those countries.

This resolution, reached in coordination with the SEC and authorities in the Netherlands, marks the second such resolution by a major international telecommunciations provider for bribery in Uzbekistan.  On February 18, 2016, Amsterdam-based VimpelCom Limited and its Uzbek subsidiary, Unitel LLC, also entered into resolutions with the United States and admitted to a conspiracy to make more than $114 million in bribery payments to the same Uzbek government official between 2006 and 2012.  The investigation has thus far yielded a combined total of more than $1.76 billion in global fines and disgorgement, including more than $500 million in criminal penalties to the United States.  In related actions, the United States has also filed civil complaints seeking the forfeiture of more than $850 million held in bank accounts in Switzerland, Belgium, Luxembourg, and Ireland, which constitute bribe payments made by VimpelCom, Telia, and a third telecommunications company to the Uzbek official, or funds involved in the laundering of those corrupt payments. 

           

Coscom was charged with, and pled guilty to, one count of conspiring to violate the anti-bribery provisions of the FCPA.  Telia was charged in a one-count Information with conspiracy to violate the anti-bribery provisions of the FCPA.

Mr. Kim thanked the Fraud Section of the DOJ’s Criminal Division for their collaboration, and praised the efforts of IRS-CI, the IRS Global Illicit Financial Team, and HSI in the investigation.  He also thanked the SEC’s Division of Enforcement for its significant assistance and cooperation in the investigation.  Mr. Kim also thanked law enforcement colleagues within the PPS, the Swedish Prosecution Authority, and the Office of the Attorney General in Switzerland, as well as law enforcement colleagues in Austria, Belgium, Cyprus, France, Ireland, the Isle of Man, Latvia, Luxembourg, Norway, Switzerland, the Isle of Man, and the United Kingdom.  Mr. Kim also thanked the Department of Justice’s Office of International Affairs for its significant assistance in this matter.  The SEC referred the matter to the DOJ and also provided extensive cooperation and assistance.

Following A.G. Schneiderman Investigation, Walgreens Restructures Rite Aid Acquisition To Address Competition Concerns

A.G. Schneiderman, Together With Federal Trade Commission, Demanded That Rite Aid Retain Additional New York Stores To Preserve Retail Pharmacy Chain Competition 

Walgreens Will Now Only Acquire 272 Stores In NY, Compared To Original 456 Stores

Schneiderman: New Yorkers Deserve The Lower Prices, Greater Choices, And Better Service That Result From Vigorous Competition

  Attorney General Eric T. Schneiderman announced today that, following his office’s investigation into Walgreens’ proposed acquisition of thousands of Rite Aid stores in New York and across the country, Walgreens has restructured the acquisition to address concerns that it would limit retail competition in the New York area.  Walgreens and Rite Aid are the second- and third-largest retail pharmacy chains in the U.S, serving huge numbers of New York consumers, as well as businesses that purchase drug coverage for their employees. Walgreens initially proposed to acquire 2,186 stores from Rite Aid, including 456 Rite Aid stores in New York State. 

To resolve competitive concerns raised by Attorney General Schneiderman and the Federal Trade Commission, Walgreens agreed to acquire fewer stores in New York State and the New York City metropolitan region than it originally had planned. Walgreens will now acquire 272 stores in New York State, with Rite Aid retaining 327 stores across the state. Additionally, Walgreens will acquire 34 fewer stores in New Jersey and 13 fewer stores in Connecticut than initially proposed, allowing Rite Aid to maintain a significant footprint in the New York City metropolitan region, and preserving Rite Aid as a competitive force in the region. 

“Retail pharmacy chains fill the majority of prescriptions in many areas of New York State,” Attorney General Schneiderman said. “Vigorous competition between pharmacy chains keeps down the cost of filling a prescription, which benefits New York consumers and businesses by preserving choice and keeping costs low. We’ll continue to keep close tabs on consolidation in the retail pharmacy space to ensure New Yorkers get the lower prices, greater choices, and better service they deserve.”

Walgreens initially sought to acquire Rite Aid in its entirety in November 2015.  A 19-month review of that transaction by the Federal Trade Commission, Attorney General Schneiderman, and several other states identified significant competitive issues posed by the transaction, and Walgreens and Rite Aid abandoned the merger in June 2017.  Shortly thereafter, Walgreens announced that it intended to acquire 2,186 stores from Rite Aid, but, in response to the competitive concerns presented by Attorney General Schneiderman, the FTC, and other states, Walgreens will now acquire 254 fewer Rite Aid stores.

The June 2017 transaction proposed by Walgreens and Rite Aid also included an agreement granting Rite Aid the option to purchase generic drugs through an affiliate of Walgreens at a low cost for a ten-year period.  After discussion with federal and state antitrust regulators, that agreement was amended to allow Rite Aid greater latitude to pursue outside business relationships over the course of the agreement.    

Bronx Chamber of Commerce's Hispanic Heritage Luncheon honors Bronx Hispanic Leaders

Bronx Chamber of Commerce 2017 Bronx Biz & Information Expo | Thursday, October 5th, 11:00 am-5:00 pm, at The Mall at Bay Plaza

DiNAPOLI ANNOUNCES IMPROVEMENTS TO COLLEGE SAVINGS PLAN TO SAVE MONEY FOR COLLEGE

New York’s 529 College Savings Program Lowers Fees, Allows Higher Maximum Balance & Eliminates Minimum Contribution 

  Beginning in September, New York’s 529 College Savings Program will offer more investment options, lower costs, raise the maximum allowable balance and eliminate the $25 minimum contribution, State Comptroller Thomas P. DiNapoli announced today. 

“Now’s the time to take advantage of the improvements we’re making to New York’s 529 College Savings Program,” DiNapoli said. “We’re making it easier for New Yorkers of all income levels to invest in their loved one’s future, as the cost of obtaining a college education continues to rise. NY’s 529 College Savings Program can help offset some of those costs.” 

Six new investment portfolios are being added to the Direct Plan's three age-based options. This will smooth the transition steps from more aggressive to more conservative investments as the beneficiary nears college age. More information can be found in the plan’s brochure here. 

In addition to the new investment options, DiNapoli said program fees will be reduced. The total asset-based fee for all Direct Plan portfolios will drop to 0.15 percent, meaning participants will pay $1.50 in program fees each year for every $1,000 invested in the plan. The maximum account balance will be increased from $375,000 to $520,000 for both the Direct and Advisor Plans to more accurately reflect rising college costs. 

Another significant enhancement is that the minimum contribution of $25 will be eliminated for Direct Plan participants so individuals of all incomes can open accounts and contribute as much as they can afford.  

New York’s 529 College Savings Program currently includes two separate 529 plans: the Direct Plan sold directly by the program and the Advisor Plan, sold exclusively through financial advisors. The Advisor Plan has different investment options and higher fees and expenses as well as financial advisor compensation.

The Comptroller of the State of New York and the New York State Higher Education Services Corp.are the Program Administrators and are responsible for implementing and administering New York’s 529 College Savings Program.

Read or download the Direct Plan disclosure booklet hereor go to: http://cdn.unite529.com/jcdn/files/NYD/pdfs/DisclosureBooklet.pdf

Ascensus Broker Dealer Services Inc., serves as program manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group Inc., serves as the investment manager. Vanguard Marketing Corp.markets, distributes and underwrites the Direct Plan.

For more information about New York’s 529 College Savings Program Direct Plan, obtain a Disclosure Booklet and Tuition Savings Agreementat nysaves.orgor by calling 877-NYSAVES (877-697-2837). This includes investment objectives, risks, charges, expenses and other information. 

NYC EMERGENCY MANAGEMENT AND DOITT RELEASE THE FIRST-EVER NOTIFY NYC MOBILE APP

New emergency notification app now available – giving New Yorkers access to real-time emergency updates on severe weather, public health hazards, transit disruptions, and more

  New York City’s official emergency communications program is making it easier than ever to be informed about emergencies. The New York City Emergency Management Department and the Department of Information Technology and Telecommunications today launched the Notify NYC app – the City’s first emergency notification mobile application. With the new Notify NYC app, New Yorkers can get information about emergency events and important City services, based on location. The new app is available for free download for Apple or Android devices, and offers real-time emergency updates on events from hurricanes and blizzards, to major traffic and mass transit disruptions, public health hazards, school closings, and unscheduled parking rule suspensions.

“It’s crucial that New Yorkers know what’s going on around the city, especially in an emergency,” said Mayor Bill de Blasio. “This new app will make it easier than ever to stay informed and get alerts about what’s happening – both nearby and citywide.”

“A key step to being prepared is staying informed,” said NYC Emergency Management Commissioner Joseph Esposito. “With the new app, Notify NYC offers New Yorkers more ways to receive information than ever before. Download the app to get free alerts about the emergencies and updates that matter most to you, and choose how you want to receive them.”

“In an emergency situation, we want New Yorkers to have the information they need in the palm of their hands.” That’s why Notify NYC app is a game-changer, providing real-time emergency notifications and crucial updates based on geolocation,” said Department of Information Technology and Telecommunications Commissioner Anne Roest. “We’re proud to have partnered with Emergency Management to build an app that will be such a valuable resource for so many.”

The Notify NYC app is the latest upgrade to the Notify NYC program – the City’s free, official source for information about emergency events and important City services. The new app has several key features:

·         Users can receive messages based on their current location, allowing alerts to follow New Yorkers as they travel throughout the five boroughs. New Yorkers can also include up to five addresses to receive alerts specific to where they and their families live, work, or go to school.

·         A new “receive all” mode allows users to access all emergency notifications, regardless of location or topic.

·         A new map feature provides detailed information about the locations of emergencies in relation to a user’s location. 

The Notify NYC mobile app is available for free download from iTunes or Google Play. Search for “Notify NYC.” Notify NYC website subscribers who do not download the new app will continue to receive their selected email notifications.

  

The new mobile app was developed by DoITT in partnership with NYCEM based on user experience with the Notify NYC website, which was first implemented by DoITT in 2007. Notify NYC mobile is the first “push” application developed by DoITT, and the first app developed by the agency’s specialized “Insource Team,” which works on detail to agencies to manage special technology projects. DoITT’s Notify NYC Insource Team first embedded at NYCEM  in 2016, and included a technical lead, a Java backend developer, Android and iOS developers, a UX/UI designer, a business analyst, and quality assurance analysts.

Notify NYC started as a pilot program in December of 2007 as a means to communicate localizedemergency information quickly to City residents. Since its inception, Notify NYC has sent out more than 9,400 notifications about local emergencies, and its subscribership has grown to more than half a million New Yorkers. To sign up for Notify NYC, New Yorkers can call 311, visitNYC.gov/NotifyNYC, or follow @NotifyNYC on Twitter. Subscribers can receive alerts in several ways: phone, email, SMS, fax, and Twitter. Non-English speaking subscribers have access to a link in which the same message is listed in 13 different languages, audio format, and American Sign Language (ASL). Notify NYC’s multilingual messages span a variety of emergency situations, including pre-scripted mass transit alerts, fire department activity, missing person(s) alerts, public health and safety notifications, utility alerts, weather alerts, drills and exercises, alternate side parking updates, downed trees notifications, and Combined Sewer Overflow advisories.

Notify NYC is just one way the City of New York seeks to communicate urgent information to City residents. In addition to sending e-mails, text messages, tweets, and phone calls, NYC Emergency Management has the ability to activate NYC’s Emergency Alert System (EAS), which sends information immediately via television and radio, and Wireless Emergency Alerts (WEA), which send critical emergency updates to all equipped cell phones in NYC. To learn more about the Notify NYC program or to sign up, visit NYC.gov/NotifyNYC or call 311.

Below are examples of notifications released this week that will now be available via the app with the new mapping and geolocation features:

Coastal Flood Advisory: Notified 9/20/17 at 4:20 p.m.

The National Weather Service has extended the Coastal Flood Advisory for southern Queens until Thursday, 9/22 at 12:00 AM. The affected area includes the Atlantic Ocean beaches and along the South Shore Bays. Tidal departures of 1-2 feet above normal are expected.

During a Coastal Flood Advisory, minor flooding of the most vulnerable shore roads and/or properties is possible. Coastal residents should be alert for later statements and take action to protect property.

For more information, please visit www.weather.gov/nyc.

To view this message in American Sign Language (ASL), العربية, বাঙালি, 中文, Français, Kreyòl Ayisyen, Italiano, 한국어, Polski, Pусский, Español, اردو or ייִדיש : http://on.nyc.gov/2glCc9d

Ferry Disruption: Notified 9/18/17 at 9:13 p.m.

Due to the United Nations General Assembly, NYC Ferry riders should expect service disruptions from Tuesday, 9/19 to Monday, 9/25. The US Coast Guard is enforcing a full closure of the East River on 9/19 from 9:15 AM to 8:00 PM near United Nations Headquarters, specifically betweenEast 35th Street and the Queensboro Street Bridge.

As a result of these restrictions, NYC Ferry riders should anticipate delays and temporary closures from at Pier 11/Wall Street & East 34th Street terminals. The Midtown Shuttle Bus will pick up riders on East 34th Street & 1st Avenue instead of the ferry terminal. All routes are subject to change with little or no notice as a result of heavy traffic conditions.

For more information and service updates, visit www.ferry.nyc/service-alerts.

Road Closure – Planned: Notified 9/17/17 at 3:33 p.m.

Due to the United Nations General Assembly, expect significant traffic delays throughout Manhattan from Monday (9/18) through Friday (9/22). Anticipate traffic disruptions, various street closures, and an increased presence of emergency personnel. Use of public transportation

is highly encouraged during this period.

Notify NYC is just one way the City of New York seeks to communicate urgent information to City residents. In addition to sending e-mails, text messages, tweets, and phone calls, NYC Emergency Management has the ability to activate NYC’s Emergency Alert System (EAS), which sends information immediately via television and radio, and Wireless Emergency Alerts (WEA), which send critical emergency updates to all equipped cell phones in NYC. To learn more about the Notify NYC program or to sign up, visit NYC.gov/NotifyNYC or call 311.

Trinitarios Gang Member Sentenced To 30 Years In Prison For Murder Of 16-Year-Old Boy

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JUAN MARTINEZ, a/k/a “KJ,” was sentenced today by United States District Judge Paul A. Engelmayer to a term of 30 years in prison for his participation in a racketeering conspiracy and in the murder of 16-year-old Ka’Shawn Phillips on September 5, 2005.  MARTINEZ was a member of the Yonkers faction of the violent Trinitarios gang (the “Trinitarios Gang”).

Acting Manhattan U.S. Attorney Joon H. Kim said:  “On a Labor Day weekend 12 years ago, Juan Martinez recruited a hit squad of his fellow Trinitarios Gang members to murder 16-year-old Ka’Shawn Phillips, who had earlier been involved in a fistfight with Martinez.  The Trinitarios Gang members recruited by Martinez brutally shot, beat, and stabbed Phillips to death in the middle of the street.  While nothing can bring Phillips back, we hope his family finds a measure of solace in the justice achieved by today’s sentence.  Together with our law enforcement partners, we will continue to aggressively prosecute all those who engage in these senseless acts of violence in our communities.”

In imposing sentence, Judge Engelmayer noted the “savagery of the attack,” and observed that Martinez was “personally responsible for the slaughter” of Phillips and that Martinez’s crime was “as wrongful and evil as a crime can be.”

According to the Indictment, and other documents filed in the case, as well as statements made during the sentencing proceedings:

The Trinitarios Gang was a violent gang that was formed in the New York state prison system in the early 1990s and subsequently spread to the streets.  JUAN MARTINEZ, a/k/a “KJ,” was a member of the Yonkers faction of the Trinitarios Gang.  On September 5, 2005, MARTINEZ – who was 30 years old at the time – was involved in a fistfight with Ka’Shawn Phillips at a pickup basketball game in Yonkers.  MARTINEZ retaliated first by attacking Phillips with a machete, and then by enlisting members of the Bronx faction of the Trinitarios Gang to attack Phillips.  Armed with guns, knives, and swords, a mob of Trinitarios Gang members shot, beat, and stabbed Phillips to death.  He was 16 years old.

In addition to the prison term, MARTINEZ, 42, of Yonkers, New York, was sentenced to five years of supervised release. 

           

Since 2009, as part of “Operation Patria” and “Operation Green Haze,” this Office has charged at least a combined 149 members and associates of the Trinitarios Gang.

           

Mr. Kim praised the work of the New York City Police Department’s Bronx Gang Squad, the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Joint Firearms Task Force, the Drug Enforcement Administration, and Immigration and Customs Enforcement’s Homeland Security Investigations.