A.G. Schneiderman Announces Convictions Of Wall Street Financier For Financial Fraud, Including Stealing From Bronx Church And Villanova University

Anthony Nyame, CEO Of General Capital Corporation, Convicted On Felony Charges, Faces Prison Time

  Attorney General Eric T. Schneiderman announced the convictions of Anthony Nyame for stealing over $3.5 million from multiple victims.  In one scheme, Nyame stole hundreds of thousands of dollars from his victims, including the First Ghana Seventh Day Adventist Church in the Bronx, by inducing them into believing that his Wall Street based company, General Capital Corporation, had the ability to secure millions of dollars in loans. In a different scheme, Nyame stole over $2.5 from Villanova University through a cyber-attack.

Nyame, of Bronx county, pleaded guilty in New York County Supreme Court to Grand Larceny in the First Degree, a Class “B” felony.  Previously, on September 13, 2017, Nyame pleaded guilty to two counts of Grand Larceny in the Second Degree, a Class “C” felony, and one count of Grand Larceny in the Third Degree, a Class “D” felony.  

“It is simply appalling that anyone would choose to fleece universities and churches in order to line their own pockets. New Yorkers deserve to know that when they seek to grow their organization, there isn’t a fraudster lurking in the shadows. We’ll continue our work to uncover financial fraud -- and prosecute those responsible to the fullest extent of the law,” said Attorney General Schneiderman.

Part of Nymae’s theft involved stealing $2.7 million dollars from Villanova University, through cybercrime. According to court documents and statements made by the prosecutor, Nyame’s sent a spoofed email to Villanova University’s payment department.  The email caused an electronic wire payment of approximately $2.7 million dollars destined for a vendor of the University, to be redirected to Nyame’s bank account. Once Nyame received the wire, he transferred almost $200,000 out of the country before the bank could freeze the remaining balance.  

According to the indictment and prior statements by the prosecutor, Nyame also convinced many of his unwitting victims into believing that his company could arrange for tens of millions of dollars in loans provided they pay hundreds of thousands of dollars to collateralize the loans. In one case, Nyame allegedly promised to obtain a $30 million loan for a church located in the Bronx that was seeking to build a multi-family dwelling on its property. Instead of using the deposits to secure the promised loans, Nyame allegedly diverted monies from the church and other investors for his own personal use – including $71,000 in cash withdrawals and transfers to his personal bank account, $47,000 to pay for his Wall Street apartment, and an additional $26,000 for assorted personal items. Nyame also transferred hundreds of thousands of dollars to multiple companies and people around the world.

As part of Nyame’s loan scheme, he allegedly sent forged documents and fake emails to his victims that purported to come from the United States Treasury, including fake emails from the former Under Secretary David S. Cohen. The goal of the forged documents and fake emails was to convince the victims that the loans were delayed because they were in the process of being approved and verified by the U.S. Treasury.

Nyame will be sentenced concurrently on both guilty pleas to a minimum of 1 year in jail if he pays restitution of $800,000 to his victims to the victims of his loan scheme, or alternatively up to 3 to 9 years if he does not pay any restitution to his victims.  

The Attorney General thanks Special Agent Thomas Brodowski of the United States Treasury, Office of the Inspector General, for his assistance in this investigation.

Operation Sticky Fingers: A.G. Schneiderman Announces Felony Convictions Of Members Of Massive Nationwide Organized Theft Ring

Joint AG-NYSP Investigation Leads To Guilty Pleas Of Three Defendants Who Will Be Sentenced To State Prison

Operation Sticky Fingers Was One of The Largest-Ever Busts Of An Organized Retail Theft Ring

 Ring Stole Over $12 Million In High-End Electronics & Ink Cartridges From Stores Like Staples, Office Depot, Best Buy In 28 States – And Resold Merchandise On Amazon And eBay

  Attorney General Eric T. Schneiderman today announced the guilty pleas of three individuals in Operation Sticky Fingers for their roles as members of a massive criminal theft and fencing ring that operated in New York and 27 other states across the country. Operation Stick Fingers was one of the largest-ever busts of a retail theft ring. 

During “Operation Sticky Fingers,” a ten-month investigation conducted by the Attorney General’s Organized Crime Task Force with support from the New York State Police, law enforcement seized more than 5,300 stolen electronics and ink cartridges from the enterprise’s kingpin, Richard Rimbaugh; the enterprise’s theft crew manager, George Athanasatos; and from various members of the theft crews. In addition, investigators seized more than $7.7 million dollars from the defendants’ homes, financial institutions, and Amazon and PayPal merchant accounts.

Athanasatos pleaded guilty to attempted enterprise corruption, criminal possession of stolen property in the third degree, and money laundering in the second degree.  He will be sentenced to 3 ½ to 7 years in prison and will forfeit $439,204.88 in illegal proceeds. Additionally, both Robert Scarano and Joseph Pooler pleaded guilty. Scarano will receive a sentence of 2 to 6 years in prison, while Pooler will be sentenced to 1 to 3 years. 

“Retail theft is not a victimless crime. Ultimately, consumers pay higher prices while the perpetrators of these schemes cash in,” said Attorney General Schneiderman. “These guilty pleas -- and the forfeiture of hundreds of thousands of dollars -- mark a major victory in what was one of the largest-ever busts of a retail theft ring. Even as these schemes grow more complex and elaborate, we will continue to work closely with our partners in law enforcement to prosecute those who shortchange New York businesses and consumers.”

The Attorney General’s investigation uncovered that Rimbaugh, known to members of the enterprise as the “General,” allegedly instructed several theft crews to steal specific printer ink cartridges, computer software, and other consumer retail electronics based on his ability to resell those stolen goods on Amazon and eBay.  Rimbaugh allegedly dictated the price that the theft crews would receive for the stolen merchandise, typically paying between 30-50% of the retail value, then resold the stolen merchandise on the internet through his illegitimate business, American Media Soft, which he operated out of his Manhattan apartment. At this location, Rimbaugh allegedly received, sorted, catalogued, and shipped the stolen merchandise for resale.  Rimbaugh also routinely met with theft crew members to pay them for the stolen merchandise.  The crews are charged with stealing millions of dollars in merchandise – including electronic goods and printer cartridges – from Staples, Office Depot, BestBuy, and other retailers across 28 states. During the course of the investigation, OCTF investigators used physical and electronic surveillance to track the movements of the theft crews, monitor their shipments of stolen goods to Rimbaugh, and obtain numerous surveillance videos of the theft crews while stealing merchandise from retail stores across the country.

George Athanasatos, of Brooklyn, who was referred to by members of the enterprise as “Field Marshall,” admitted today that he reported directly to Rimbaugh and was the manager of three of the four theft crews that delivered stolen merchandise to Rimbaugh at his Manhattan apartment.  Athanasatos managed the day-to-day operations of these three theft crews and received a percentage of the total amount of money that Rimbaugh would pay the crew for their stolen merchandise.  Rimbaugh and Athanasatos dispatched the three theft crews on missions to various regions across the country and remotely managed their progress during each undertaking, which took place on a weekly basis. 

In addition to advising the theft crewmembers, Athanasatos admitted to providing the groups with coded maps detailing target retail locations, such as Staples, Office Depot, and Best Buy.  He also provided members of the theft crews with “booster” gear, such as custom-made vests known as “bazookas.” When worn underneath regular clothing, “bazookas” can conceal large amounts of merchandise while inside of the stores.  When departing the stores, the crews allegedly used “kryptonite” devices to deactivate security alarms at store exits, as well as short-wave radios, which made it easier for the crews to eavesdrop on store security in order to warn one another about the presence of security or law enforcement.  Multiple anti-security devices, such as “kryptonite”, Alpha Keys, and Spider Wraps, were seized from Athanasatos’ residence during the execution of a search warrant.

Robert Scarano, of Las Vegas, also pleaded guilty today to enterprise corruption.  He will be sentenced to 2 to 6 years in prison. Scarano admitted to being the leader of a two-person theft crew that executed dozens of retail thefts and delivered thousands of dollars of stolen merchandise to Rimbaugh at his Manhattan apartment. Scarano is scheduled to be sentenced on November 15, 2017.

Joseph Pooler, a/k/a “Baby Arm Johnson,” of Stroudsburg, PA also pleaded guilty today to enterprise corruption.  He will be sentenced to 1 to 3 years in prison. Pooler admitted to being the Sergeant of a two-person theft crew that executed dozens of retail thefts and delivered thousands of dollars of stolen merchandise to Rimbaugh at his Manhattan apartment. Pooler is scheduled to be sentenced on November 15, 2017.

The following defendants have previously pled guilty:

Frank Albergo, of Oviedo, FL, pled guilty to attempted enterprise corruption on April 26, 2017 and was sentenced to 1 ½ to 4 ½ years in prison for his role as a theft crew Lieutenant.

Krissylee Harris, of Brooklyn, NY, pled guilty to attempted enterprise corruption on May 10, 2017 for her role as a theft crew Lieutenant.                                        

Nusret Srdanovic, of Brooklyn, NY, pled guilty to enterprise corruption on April 26, 2017 and was sentenced to 1 to 3 years in prison for his role as a theft crew Sergeant.

Kevin Cerrato, of Elmont, NY, pled guilty to enterprise corruption on July 6, 2017 for his role as a theft crew Sergeant.  He is scheduled to be sentenced on October 4, 2017.

The charges against the following defendants are still pending:

Richard Rimbaugh, a/k/a “The General,” 64, Fence of the Enterprise, New York, NY

George Rapatsouleas, a/k/a “Skipper,” a/k/a “Nipplehead,” 31, Captain, Brooklyn, NY

Gregory Anastasiou, a/k/a “Captain Frank”, 38, Captain, East Stroudsburg, PA

Giovanna Bonello, 28, Lieutenant, Staten Island, NY

Roger Ringhiser, 41, Captain, Long Beach, NY,

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

A.G. Schneiderman, Gov. Cuomo, & Mayor De Blasio Announce Settlement With Major NYC Landlord To End Tenant Harassment And Hazardous Living Conditions

Tenant Harassment Prevention Task Force Reaches Settlement With ICON Realty Management To Protect Tenants And Preserve Affordable Housing, Following Harassment And Hazardous Living Complaints From East Village, Lower East Side, And Brooklyn Tenants

ICON To Also Pay $500,000 In Penalties, Fees, And Costs

  Attorney General Eric T. Schneiderman, Governor Andrew M. Cuomo, and Mayor Bill de Blasio announced a first of its kind settlement between the Tenant Harassment Prevention Task Force (Task Force) and ICON Realty Management (ICON). This settlement provides tenants broad relief, requiring the landlord to end harassment and hazardous living conditions for the hundreds of tenants in buildings owned and managed by ICON.

Tenants in several ICON-owned rent-regulated buildings in the East Village, the Lower East Side, and Brooklyn were forced to live in adverse conditions, enduring excessive dust and debris from construction in the building common areas and apartments, inconsistent and irregular heat and hot water, and lack of cooking gas and elevator service for extended periods. The Task Force investigation found that, on multiple occasions, ICON failed to obtain Department of Buildings (DOB) work permits, performed construction outside the scope of permits issued, and failed to appropriately clean or maintain the construction work areas. The Task Force investigation also found that ICON ignored tenants’ requests for repairs, failed to timely correct housing and building code violations, and subjected tenants to long-lasting interruptions of heat, hot water, and cooking gas services.

The Assurance of Discontinuance (AOD), executed today by the Attorney General’s office, requires ICON to adopt policies and procedures to prevent future violations and safety risks; corrects all outstanding housing, maintenance, and building code violations; establishes safe construction practices; provides rent abatements to tenants during disruptions of essential services; appoints a tenant liaison to immediately address tenant concerns; and establishes an independent monitor to ensure ICON’s compliance with the agreement. The settlement also requires ICON to pay $300,000 to the State of New York (on behalf of the Task Force) and over $200,000 in penalties, fees, and costs to New York City’s Housing Preservation & Development and Department of Buildings.

“Unscrupulous landlords should be on notice: we’ll use every legal tool at our disposal to protect New York’s tenants,” said Attorney General Schneiderman. “Too often, bad landlords see rent-regulated apartments as a goldmine – looking to make a quick buck by using construction to harass tenants out of their homes. No New Yorker should have to fear for their health or their safety in their own home. This settlement marks another win for New York’s tenants as our Task Force continues to protect their rights and hold landlords accountable.”

“This settlement agreement makes it clear that we have zero tolerance for a landlord’s illegal and harmful construction that exposes tenants to harassing and hazardous living conditions.  I am proud of the TPU and all the work we’ve accomplished with the Task Force to protect rent-regulated tenants from predatory and abusive landlords. New Yorkers have the right to safe decent homes that do not jeopardize their health and safety,” said Governor Andrew M. Cuomo.

"Property owners in this City have a clear legal responsibility to their tenants and those duties were repeatedly violated by this company. We will continue to work hand in glove with our law enforcement partners to protect New York tenants and punish deadbeat landlords,” said Mayor Bill de Blasio.

The Tenant Harassment Prevention Task Force was created in 2015 in response to growing complaints that landlords were using construction as a mean to harass and endanger the health and safety of tenants. It includes the Governor’s Tenant Protection Unit, the New York State Attorney General (NYAG), and New York City’s Department of Housing Preservation and Development (HPD) and Department of Buildings (DOB). The Task Force combines multi-agency resources to address actions that jeopardize affordable housing and endanger tenants.  It executes unannounced top-to-bottom inspections of buildings in New York City, interviews tenants, and shares agency data to build investigations and provide tenants with comprehensive relief. The work of the Task Force has led to criminal prosecutions, such as the case against Daniel Melamed, and/or civil litigation or settlement, such as today’s settlement with ICON.

Maria Torres-Springer, Commissioner of New York City Department of Housing Preservation and Development, said, “Landlords like ICON are exactly why Mayor de Blasio recently enacted eighteen new pieces of legislation strengthening New York’s protections against tenant harassment and increasing penalties for owners who continue to engage in it. One of these new bills, Intro. 1549, specifically addresses this type of behavior and ensures tenants have the right to sue landlords for harassment for repeated disruption of essential services. Landlords know that engage in construction harassment will face consequences.”

New York City Department of Buildings Commissioner Rick D. Chandler, PE, said, “We are proud of our work on the Tenant Harassment Prevention Task Force and my agency will continue to take strong action to ensure landlords who violate the laws and harass tenants will be held accountable. No landlord is allowed to use unsafe construction practices to harass tenants.”

“This agreement is a big win for tenants” said Yonatan Tadele of the Cooper Square Committee. “Tenants have suffered for years under ICON ownership and management. They've spoken out and tenaciously organized against ICON’s tactics. A coalition of Icon tenants from around the City, Icon Community United (ICU), brought their concerns to the Task Force. We are very glad to see such a strong settlement come forward.”

BRONX MAN INDICTED FOR AGGRAVATED CRUELTY TO ANIMALS FOR BRUTAL BEATING OF DOG

ALSO CHARGED WITH ENDANGERMENT FOR STRIKING CANINE IN FRONT OF GIRL

  Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been indicted for Aggravated Cruelty to Animals and related charges for the brutalization of a small dog. 

   District Attorney Clark said, “The defendant was cruel and relentless in his incomprehensible attack on a small, defenseless animal. Surveillance video captured this horror and we will now work hard to obtain justice; we emphasize our continued dedication to protecting vulnerable animals.” 

  District Attorney Clark said the defendant, George Reid, 37, of 2414 Belmont Ave., was indicted for Aggravated Cruelty to Animals, Torturing and Injuring Animals and Endangering the Welfare of a Child. He was arraigned today before Bronx Supreme Court Justice George Villegas and bail was set at $25,000. He is due back on December 20, 2017. If convicted of the top charge, he faces up to two years in prison. 

  According to the investigation, on August 16, 2017 in his apartment building, the defendant allegedly repeatedly attacked his dog, punching, kicking and slamming the animal to the ground. At one point during the assault, the defendant held the small dog by the neck and punched the canine in front of a young girl. The crime was captured on surveillance video and the defendant was later seen taking out a garbage bag. The body of a small dog was observed in the building’s garbage bin later that evening.

  DA Clark thanked the NYPD Animal Cruelty Investigation Squad, specifically Detectives Kevin Connors and Charles Cadiz, as well as ASPCA veterinarian, Dr. Robert Reisman. 

  An indictment is an accusatory instrument and not proof of a defendant’s guilt.

WEDNESDAY: MAYOR DE BLASIO TO HOST TOWN HALL WITH COUNCIL MEMBER TORRES

  

  On Wednesday, October 4, Mayor Bill de Blasio will host a town hall with residents of the 15^th Council District, including the neighborhoods of Bedford Park, Fordham, Mount Hope, Bathgate, Belmont, East Tremont, West Farms, Van Nest, Allerton and Olinville. The event is co-sponsored by Council Member Ritchie Torres, Bronx Borough President Ruben Diaz, Jr., Congressman José E. Serrano, State Senator Gustavo Rivera and Assembly Member José Rivera.

Residents of the 15^th Council District are asked to RSVP by October 2 at 5 p.m. via email atbronxtownhall@cityhall.nyc.gov or by calling (212) 788-6732. Space is limited.

 WHAT:           Council District 15 Town Hall

WHEN:           Wednesday, October 4, 2017

                        Doors open at 6:00 P.M.

   Program begins at 7:00 P.M.

WHERE:         I.S. 254

                 2452 Washington Avenue, 

                        between 188^th and 189^th Streets

  Bronx, NY 10458

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

M/WBE CERTIFICATION EVENT AND ANNOUNCEMENT REGARDING UNPRECEDENTED M/WBE AWARDS

  On the one-year anniversary of the Office of Minority and Women-owned Enterprises (M/WBEs), Deputy Mayor for Strategic Policy Initiatives Richard Buery, Citywide M/WBE Director; the Mayor’s Office of M/WBEs; the Department of Small Business Services and State Senator Marisol Alcantara hosted an M/WBE certification event at the Isabella Geriatric Center in Washington Heights.

At this certification event, Deputy Mayor Buery announced that, for the first time, the City has awarded over $1 billion to M/WBEs in one Fiscal Year (FY) – FY17. The $1 billion in awards to M/WBEs is double the value of contracts awarded in FY15. For context, the City awarded nearly $400 million to M/WBEs in FY15. Awards to M/WBEs increased to nearly $700 million in FY16.

The contracts have been awarded by the Mayoral agencies governed by Local Law 1, which does not include non-mayoral agencies such as NYCHA, EDC and Health and Hospitals. When including the awards of non-mayoral agencies, the City has awarded over $6 billion to M/WBEs since FY2015 under its OneNYC Plan– a plan that established a goal of awarding $16 billion to M/WBEs by close of FY 2025.

The Deputy Mayor also thanked leadership and member of both houses of the Legislature, in particular legislative bill sponsors State Senator Alcantara and Assembly Member Alicia Hyndman for passing a State bill that expands economic opportunity for New York City’s M/WBEs.

A key goal of the de Blasio Administration is to certify 9,000 M/WBEs by 2019. The certification event helped firms learn how to obtain M/WBE certification, which is done by the Department of Small Business Services, with the City of New York and access free programs and services to help attendees grow and sustain their businesses. Certified firms are listed on the City’s online directory of certified companies where they are more visible to City agencies and private companies.

About S6513-B/A8508-A

S6513-B/A8508-A allows the City to spend up to $150,000 on purchase contracts (goods and services) with minority and women-owned businesses without requiring those businesses to first go through a time-consuming formal competitive bidding process. This increased discretionary spending limit for goods and services is now closer to the State’s $200,000 limit in this area. The City currently has $20,000 and $35,000 in discretionary spending limits for purchase contracts and construction, respectively.

This change would help minority and women-owned businesses overcome the historical disadvantages they have faced in the marketplace. The legislation also allows the City to award points or price preference to a firm for being a City-certified or State-certified M/WBE during the RFP evaluation process. In June 2016, the legislature passed the bill with a vote of 115-15 in the Assembly and unanimously in the Senate.

DE BLASIO ADMINISTRATION PREVIEWS NEW SHARED STREET AS PART OF EAST MIDTOWN’S PUBLIC SPACE IMPROVEMENTS

   The de Blasio Administration detailed plans to launch a Shared Street on 43rd Street between Lexington and 3rd Avenue as part of the rezoning of Greater East Midtown. That comprehensive plan, developed with Council Member Dan Garodnick and Manhattan Borough President Gale A. Brewer, included major improvements to the public realm and streetscapes across the business district. The NYC Department of Transportation will begin piloting a new configuration of 43^rd Street between Lexington and Third Avenues in spring 2018 that will increase sidewalk space, provide room for tables, chairs and plantings and lower vehicle speeds—while maintaining access for deliveries. A full capital buildout of the space will be completed by 2021.

The rezoning of East Midtown directly ties new commercial growth to improvements in the district’s public transit and public space. In addition to the 43^rd Street ‘shared street,’ New Yorkers will see major investments in subway stations, less congested sidewalks and expansive plazas across the district.

“This shared street will make a big difference in the quality of life for people working and traveling near Grand Central. It’s part of our commitment to a new formula for growth,” saidMayor de Blasio. “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.”

A “Shared Street” is a roadway designed for slow travel speeds where pedestrians, cyclists, and motorists all share the right of way. Vehicles are advised to drive 5MPH and the roadway is flush from building line to building line without the typical curb line grade separation. Shared streets can be designed and managed in a variety of different ways to balance the needs of all users while enhancing the safety, aesthetics, and overall experience of the area. Earlier this year, DOT created its first full-time Shared Street on Broadway between 24^th and 25^th Streets in the Flatiron District; on that block during evening rush hours, pedestrians had previously outnumbered vehicles by an 18:1 margin.   

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 rezoning passed in August will spur a new generation of office buildings to grow jobs and keep New York competitive, while investing in the area’s streets and public transit.

“Our newest Shared Street, steps away from Grand Central Station, will be an amazing public space in the heart of one of the densest parts of New York City,” said DOT Commissioner Polly Trottenberg.  “In a part of Midtown where pedestrians can outnumber cars by as much as 16 to 1, we will strike a better balance.  Pedestrians, bicycles and slow-moving cars will all safely share this block of East 43^rd Street, which will become more welcoming and more vital.  We thank Deputy Mayor Glen, Councilmember Garodnick and our community partners for their leadership in the continued transformation of this vibrant neighborhood.”