Wave Hill Events Oct 27–Nov 3 Spiders!—and Winter Hours

  This year, we are offering a new tip of the hat to Halloween with Spider Day, Sunday, October 29. (Enchanted Wave Hill Weekend, the week before, has traditionally been our naturally exuberant way to acknowledge all-hallows eve.) Not unrelated, the Saturday afternoon video screening and science talk, is all about insects. The springboard for that, however, is one of the artists in our anniversary exhibition in Glyndor Gallery this fall. Artist aricoco, a chemical ecologist and an entomologist engage in a far-ranging conversation about social communication. The week ends with the ever-popular, annual “Fall Foliage Walk” with our Senior Horticultural Interpreter Charles Day.

Being a garden, Wave Hill is tuned to seasonal change, and one of the most significant this time of year is the ever-shortening day. Acknowledging that, we close at 4:30, not 5:30, starting November 1

Sat, October 28    Family Art Project: Spider Web Fashion

Join Family Art Project Storyteller Rama Mandel for tales about special spiders, including the Itsy Bitsy Spider and Anansi the spider, the great folk hero and mischief maker. Costume yourself in a web of mesh tulle and, with the twisty artistry of pipe cleaners and bits of black felt and yarn, welcome lots of little spiders. Free, and admission to the grounds is free until noon. Sunday is Spider Day! 

WAVE HILL HOUSE, 10AM‒1PM

Sat, October 28    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Sat, October 28    Family Gallery Tour

Explore artwork on view in Glyndor Gallery on a family-friendly tour with a Curatorial Fellow. Children ages six and older welcome with an adult. Free, and admission to the grounds is free until noon.

MEET AT WAVE HILL HOUSE, NOON

Sat, October 28    Video Screening and Science Talk: Art & Nature—Social Communication in the Insect World

Learn how social insects—ants, bees, termites and more—have long inspired the imagination of artists and the curiosity of scientists. In conjunction with Call & Response, the fall exhibition in Glyndor Gallery, this program presents a video art piece by former Sunroom artist aricoco, exploring the behavior of bugs that live in highly organized societies. Chemical ecologist Qian “Karen” Sun follows with a talk about how these creatures “speak,” cooperate and achieve colony-level success. Entomologist Lawrence Forcella provides a display of live ants and termites. Free with admission to the grounds.

WAVE HILL HOUSE, 1PM

Sat, October 28    Gallery Tour

Wave Hill’s Curatorial Fellow leads a tour of the current exhibition in Glyndor Gallery. This fall, the entire gallery is given over to new site-responsive projects honoring the tenth anniversary of Wave Hill’s Sunroom Project Space. Call & Response showcases the work of 50 artists who have exhibited in this unique venue, in projects ranging from art objects created from natural materials gathered onsite, to sound pieces, outdoor installations and performance works. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Sun, October 29    Family Art Project: Spider Web Fashion

Join Family Art Project Storyteller Rama Mandel for tales about special spiders, including the Itsy Bitsy Spider and Anansi the spider, the great folk hero and mischief maker. Costume yourself in a web of mesh tulle and, with the twisty artistry of pipe cleaners and bits of black felt and yarn, welcome lots of little spiders. Free with admission to the grounds. Spider Day event. 

WAVE HILL HOUSE, 10AM‒1PM

Sun, October 29    Nature Presentation: Arachnid Appreciation Station

Halloween portrays our humble spiders as malevolent and deadly creatures yet most are perfectly harmless to humans. Beef up your arachnid I.Q. with local entomologist Lawrence Forcella and observe a collection of live and preserved spiders, from delicate orb-weavers to hairy, hulking tarantulas. Ages six and older welcome with an adult. Free with admission to the grounds. Spider Day event.

ON THE GROUNDS, NOON–3PM

Sun, October 29    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

Mon, October 30    

Closed to the public.

Tue, October 31    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Tue, October 31    Gallery Tour

Wave Hill’s Curatorial Fellow leads a tour of the current exhibition in Glyndor Gallery. This fall, the entire gallery will be given over to new site-responsive projects honoring the tenth anniversary of Wave Hill’s Sunroom Project Space. Call & Response showcases the work of more than 50 artists who have exhibited in this unique venue, in projects ranging from art objects created from natural materials gathered onsite, to sound pieces, outdoor installations and performance works. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Wed, November 1    Fall Foliage Walk

Enjoy colorful foliage at its seasonal peak. Horticultural Interpreter Charles Day shares some of his favorite trees and shrubs in their vibrant fall finery. This walk repeats November 4. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–4:30PM, November 1–March 14. Closes 5:30PM, starting March 15.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesdaymornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

Republican Mayoral Candidate Nicole Malliotakis Visits 2800 Bruckner Blvd. in Throggs Neck

  The day after her citywide debate with current Mayor Bill de Blasio Republican Mayoral Candidate Nicole Malliotakis came to the Bronx at 2800 Bruckner Blvd. This is the site of a large three story building where the building was recently sold, and the new owner was telling tenants that they had to vacate the building within thirty days. Congressman Joe Crowley had his Bronx office in 2800 Bruckner Blvd, and was one of the first tenants to move out of the building. Many others left, but several stayed since they had leases beyond the thirty day deadline set by the new owner. 

  It was unclear what use the new owner had for 2800 Bruckner Blvd., but there were mattresses and other furniture on site to suggest at least temporary housing was going to happen, with the worse fears of the neighborhood being a homeless shelter would pop up in 2800 Bruckner Blvd. A press conference was held by local elected officials to clam the neighbors a few weeks ago, but since then nothing has happened. There was suppose to be a walk through according to 13th City Council candidate John Cerini, but Cerini said the walk through was cancelled late by the new owner. 

   Candidate Cerini did the next best thing by having a press conference of his own in front of 2800 Bruckner Blvd, inviting his parties choice for mayor Assemblywoman Nicole Malliotakis to help try to get some answers about 2800 Bruckner Blvd. 

Above - City Council candidate John Cerini gives some background about 2800 Bruckner Blvd. the building directly behind him and Republican Mayoral candidate Nicole Malliotakis. Mr. Cerini said that there was to be a walk through to see what the new owner was doing, but he said that the walk through was cancelled by the new owner.

Below - Mayoral candidate Nicole Malliotakis fresh off her debate last night continued to denounce the homeless policy of current Mayor Bill De Blasio. She also said that she is in favor of the 45 day community notification bill passed by the State Senate, but held up in the State Assembly. She answers my question as to why the State Assembly (heavily from New York City, and with a Bronx Speaker) is not voting on the State Senate bill by saying that it is the Speaker who allows or holds up legislation to be voted on. Mayoral candidate Malliotakis then spoke about other de Blasio problem areas including the current 'Agents of the City' who were de Blasio supporters or consultant/Lobbyist. In similar de Blasio fashion she stayed for photos, but unlike de Blasio she was happy to talk to reporters afterwards.  

President Trump's Threats to Puerto Rico

STATEMENT FROM BOROUGH PRESIDENT DIAZ

  “President Trump’s threat to abandon the recovery efforts in Puerto Rico is absolutely despicable. I visited the island this past weekend, and I saw firsthand just how dire the situation is for the nearly 3.5 million Americans who make their home there. For the president to publicly consider removing federal help from the island in the midst of a humanitarian nightmare is disgusting.

“What is happening in Puerto Rico is not a game. The people of Puerto Rico need food, water, electricity and the basic essentials of life. They need a serious, sustained, long-term commitment from the federal government to provide relief for the island, to rebuild their infrastructure and to return life somewhere near to normal.

“They do not need half-cocked tweets and ridiculous threats,” said Bronx Borough President Ruben Diaz Jr. 

State Senator Gustavo Rivera on Trump's Tweets Threatening to Pull Back Federal Help from Puerto Rico 

  "I am utterly disgusted and completely enraged by Trump's tweets threatening to pull back federal relief workers from Puerto Rico only three weeks after Hurricane Maria devastated the island. It is sickening that the person in the most powerful position in our government shows such a lack of compassion and moral compass towards American citizens, as they face nothing less than a full-fledged humanitarian crisis. 

Three weeks after Maria wrecked the island, Puerto Rico remains without power. Further, I have personally heard accounts from people working on the ground that residents are still struggling to find clean water and secure essential goods, hospitals are running short on medicine, and the majority of schools are still closed.

While the outpouring support from our fellow citizens has been nothing short of extraordinary and profoundly generous, the response from the federal government has been slow, inept, irresponsible and cruel. It is imperative that Governor Roselló and Congress work together in order to put forth a comprehensive disaster aid package that will rebuild Puerto Rico with the best interests of Puerto Ricans in mind.

Trump fails to understand that this is not a game. The lives of 3.4 million American citizens are at stake. My brothers and sisters in Puerto Rico cannot be abandoned by their own government; they cannot be left to die. To quote the brave Mayor of San Juan, Carmen Yulin Cruz: "Mr. President, fulfill your moral imperative towards the people of Puerto Rico."

Make no mistake: We will hold this administration accountable and will continue to push them to do the right thing.

Finally, I will also ask you to sign my moveon.org petition so that Congress hears from as many Americans as possible that Puerto Rico needs immediate help."

Bronx Democratic Party - Hurricane Relief Concert This Saturday

The Bronx Borough President Ruben Diaz Jr., Assemblyman Marcos A. Crespo and Assemblyman Jose Rivera Invite You to Join Them for Their Hurricane Relief Concert, this Saturday, October 14th, from 1:00 p.m. to 5:00 p.m. Fordham Plaza - Fordham Roaz and 3rd Avenue.

33 Charged With Racketeering, Narcotics, Firearms, And Bank Fraud Offenses In Connection With Violent Gang Activity And Drug Trafficking Near The Mill Brook Houses In The Bronx, New York

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James J. Hunt, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of three Indictments and two Complaints charging 33 individuals with racketeering, narcotics, firearms, and bank fraud offenses in connection with violent gang and drug trafficking conduct near the Mill Brook Houses, in the Bronx, New York.    

The indictment in U.S. v. Michael White, et al. charges a total of 14 individuals, eight of whom are charged with racketeering conspiracy in connection with their membership in a gang known as “MBG” (also known as “Money Bitches Guns” and “Millbrook Gangstas”) and 11 of whom are charged with racketeering conspiracy in connection with their association with the gang known as the “Young Gunnaz,” also known as the “YGz.”  The indictment in U.S. v. Gary Davis, et al. charges a total of 15 individuals, four of whom are charged with racketeering conspiracy in connection with their membership in a gang known as “Killbrook.”  The indictment in U.S. v. Algi Crawford, et al. charges two individuals with bank fraud.  The complaint in U.S. v. Bernard Franklin, charges one individual with heroin distribution.  The complaint in United States v. James Green, 17 Mag. 7566, charges one individual with crack cocaine distribution.

A total of 24 defendants were taken into custody today; five other defendants are already in state custody on other charges.  Of the 33 defendants, 23 will be presented before U.S. Magistrate Judge Katharine H. Parker later today.  DAVID OQUENDO was arrested in the Northern District of New York and will be presented and arraigned in the United States District Court for the Northern District of New York later today.  U.S. v. Michael White is assigned to U.S. District Judge Robert W. Sweet.   U.S. v. Gary Davis is assigned to U.S. District Judge Lorna G. Schofield.   U.S. v. Algi Crawford is assigned to U.S. District Judge J. Paul Oetken.   U.S. v. Bernard Franklin and U.S. v. Eric Green are not yet assigned to District Judges

Acting U.S. Attorney Joon H. Kim said:  “As alleged, members and associates of these gangs and crews plagued the Mill Brook Houses for a decade, engaging in violence and selling drugs.  One of the victims was Bolivia Beck, a 21-year-old who was shot dead in broad daylight.  Thanks to the terrific investigative work of the FBI, DEA, and NYPD, the defendants will now face justice in federal court.” 

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “The gang members we rounded up in this case, and in many other investigations, seem to not learn the lesson that they cannot act with impunity.  These gangs have a significantly negative impact on the neighborhoods where they operate, but we can’t make these arrests in a vacuum.  We need the community to seize the chance at a fresh start to rebuild a safer place to live.  With that said, we have had tremendous success in bringing down crime in New York City through our collaboration on the FBI NY Metro Safe Streets Task Force.  We will keep focusing our resources against these gangs, and we won’t ever stop pursing the most violent criminals who look to fill the void.”

DEA Special Agent in Charge James J. Hunt said:  “The drug trafficking of all three gangs around the Mill Brook Houses was a breeding ground for violence.   By working collaboratively with our partners, law enforcement removed these gang members who are allegedly responsible for jeopardizing the safety of their neighbors by putting them in the middle of their turf war.”

As alleged in the Indictments and Complaint unsealed today in Manhattan federal court and in other court papers[1]:

MBG was a criminal enterprise involved in committing numerous acts of violence, including attempted murders, in the vicinity of the Mill Brook Houses in the Bronx.  Members and associates of MBG enriched themselves by selling drugs, such as crack cocaine and marijuana.  In particular, on or about February 4, 2013, MBG member DAVID OQUENDO attempted to murder a rival gang member in the Mill Brook Houses. On August 17, 2014, CHRISTOPHER HOWARD, a/k/a “Juju,” attempted to murder rival gang members in the Mill Brook Houses.

The YGz was a criminal enterprise involved in committing numerous acts of violence, including attempted murders, in the vicinity of the Mill Brook Houses in the Bronx.  Members and associates of the YGz enriched themselves by selling drugs, such as crack cocaine and marijuana.  On October 28, 2012, YGz member MICHAEL WHITE, a/k/a “Mike,” attempted to murder rival gang members, causing injuries to multiple people.

Killbrook was a criminal enterprise involved in committing numerous acts of violence, including murder and attempted murders, in the vicinity of the Mill Brook in the Bronx.  Members and associates of Killbrook enriched themselves by selling drugs such as crack cocaine and marijuana.  On or about April 18, 2011, Killbrook member GARY DAVIS, a/k/a “Reckless,” a/k/a “Poppa,” murdered Bolivia Beck in the Mill Brook Houses. 

           

Charts containing the names, charges, and maximum penalties for the defendants are set forth below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Kim praised the outstanding investigative work of the FBI, DEA, and NYPD. 

The charges contained in the Indictments and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.       

United States v. Michael White, et al.

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Racketeering conspiracy   18 U.S.C. § 1962(d)	MICHAEL WHITE (age 29) JOEY COLON (age 28) DEMETRIUS WINGO (age 25) ANTHONY BUSH (age 27) DAVID OQUENDO (age 27) CHRISTIAN PEREZ (age 24) JAMES ROBINSON (age 30) CHRISTOPHER HOWARD (age 25)	20 years in prison
2	Racketeering conspiracy   18 U.S.C. § 1962(d)	MICHAEL WHITE JOEY COLON DEMETRIUS WINGO ANTHONY BUSH DAVID OQUENDO CHRISTIAN PEREZ ALLEN KNIGHT (age 28) MIGUEL CALDERON (age 23) JAMESE SNIPES (age 19) WESLEY MONGE (age 20) OSCAR BRIONES (age 20)	20 years in prison
3	Narcotics conspiracy   21 U.S.C. § 846	JOEY COLON DEMETRIUS WINGO ANTHONY BUSH DAVID OQUENDO CHRISTIAN PEREZ JAMES ROBINSON ALLEN KNIGHT MIGUEL CALDERON JAMESE SNIPES WESLEY MONGE OSCAR BRIONES ROY ROBINSON (age 38)	Life in prison   Mandatory minimum of 10 years in prison
4	Violent crime in aid of racketeering   18 U.S.C. § 1959(a)(3), (5)	MICHAEL WHITE	20  years in prison
5	Violent crime in aid of racketeering   18 U.S.C. § 1959(a)(3), (5)	DAVID OQUENDO	20 years in prison
6	Violent crime in aid of racketeering   18 U.S.C. § 1959(a)(3), (5)	CHRISTOPHER HOWARD	20 years in prison
7	Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime   18 U.S.C. § 924(c )	JOEY COLON DEMETRIUS WINGO ANTHONY BUSH DAVID OQUENDO CHRISTIAN PEREZ JAMES ROBINSON CHRISTOPHER HOWARD	Life in prison   Mandatory minimum of 10 years in prison
8	Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime   18 U.S.C. § 924(c )	MICHAEL WHITE ALLEN KNIGHT MIGUEL CALDERON WESLEY MONGE OSCAR BRIONES	Life in prison   Mandatory minimum of 10 years in prison
9	Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime   18 U.S.C. § 924(c )	ROY ROBINSON	Life in prison   Mandatory minimum of 5 years in prison

                         United States v. Gary Davis, et al.

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Racketeering conspiracy   18 U.S.C. § 1962(d)	GARY DAVIS (age 27) RAMEL JACKSON (age 26) ANDREW BURRELL (age 26) QUENTIN STARKES (age 25)	For GARY DAVIS, life in prison   For all other defendants, 20 years in prison
2	Narcotics conspiracy   21 U.S.C. § 846	ANDRE COFIELD (age 40) PATRICK INNIS (age 39) GARY DAVIS RAMEL JACKSON ANDREW BURRELL QUENTIN STARKES MATTHEW COOPER (age 26) JUSTIN COOPER (age 29) NAYSEAN CHAVIS (age 25) HASSAN MUHAMMAD (age 20) CHIMBA CARLOS (age 31) WILLIAM RAY (age 27) JEFFREY GOODRIDGE (age 30) MICHAEL LAMAR (age 36) LUIS GOMEZ (age 24)	Life in prison   Mandatory minimum of 10 years in prison
3	Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime   18 U.S.C. § 924(c )	GARY DAVIS RAMEL JACKSON ANDREW BURRELL	Life in prison   Mandatory minimum of 10 years in prison
4	Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime   18 U.S.C. § 924(c )	WILLIAM RAY	Life in prison   Mandatory minimum of 5 years in prison

                          United States v. Algi Crawford, et al.

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Bank fraud conspiracy   18 U.S.C. § 1349	ALGI CRAWFORD (age 35) JONATHAN GRIFFIN (age 31)	30 years in prison
2	Bank fraud   18 U.S.C. § 1344	ALGI CRAWFORD JONATHAN GRIFFIN	30 years in prison

                      United States v. Bernard Franklin

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Distribution of heroin   21 U.S.C. §§ 812, 841(a)(1), 841(b)(1)(C)	BERNARD FRANKLIN (age 32)	20 years in prison

                  United States v. James Green

COUNT	CHARGE	DEFENDANTS	MAX. PENALTIES
1	Possession with the intent to distribute crack cocaine   21 U.S.C. §§ 812, 841(a)(1), 841(b)(1)(B)	JAMES GREEN (age 49)	40 years in prison

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

Acting Manhattan U.S. Attorney And FBI Assistant Director Announce Securities And Wire Fraud Charges Against Founders Of Purported Snack Business

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest and unsealing of a complaint charging LISA BERSHAN, BARRY SCHWARTZ, and JOEL MARGULIES with securities fraud, wire fraud, and conspiracy to commit those offenses in connection with a scheme to defraud investors in a company variously called The Awake Company and Starship Snacks (“Starship”). 

BERSHAN and SCHWARTZ were presented earlier today in federal court in Atlanta, and MARGULIES was presented earlier today in federal court in Tennessee. 

In a separate action, the SEC filed civil charges against BERSHAN, SCHWARTZ, and MARGULIES.  

Acting U.S. Attorney Joon H. Kim said:  “As alleged, while promising a sure thing, in the form of guaranteed returns, the defendants were actually selling nothing but lies.  Instead of using investors’ money to grow the business, they allegedly spent it on plastic surgeries, jewelry, and cars.  Thanks to the terrific investigative work of the FBI, the defendants will now have to answer in court for their lies.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “Bershan, Schwartz, and Margulies allegedly led investors to believe their company was on a guaranteed path to success. To further support their claim, as charged today, they promised to buy back any shares that didn’t appreciate within a year, including a supplemental interest payment of five percent. Samples of chocolate intended to represent the caffeinated snack they had supposedly developed were provided to some for good measure, but the chocolate was void of its key ingredient. In the end the numbers didn’t add up as this sweet deal turned sour.”

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

As alleged, BERSHAN, SCHWARTZ, and MARGULIES created Starship with the stated goal of marketing and selling a caffeinated chocolate snack.  BERSHAN, SCHWARTZ, and MARGULIES subsequently raised over $2 million from investors by telling them that their investments in Starship would be personally guaranteed against any losses; that Starship was on the verge of a lucrative acquisition by another entity, Monster Beverage Corp. (“Monster”); and that Starship’s signature product had been developed successfully.  All of these representations were false and misleading.  Starship had no ability to honor the guarantees that it and BERSHAN made to investors.  It was never in talks with Monster to be acquired.  And it had never developed or engaged a third party to develop its caffeinated snack.  After receiving investor monies, moreover, BERSHAN, SCHWARTZ, and MARGULIES used those funds to maintain their own extravagant lifestyles, spending hundreds of thousands of dollars on things like luxury clothing, plastic surgery, interior decorating, and luxury housing in New York City. 

Beginning in August 2015, BERSHAN, MARGULIES, and SCHWARTZ began soliciting investments in Starship.  In order to assure investors that their investments in Starship would be safe, BERSHAN sent investors images of herself in what appeared to be a mansion with subject lines like, “Just a glimpse – my parents sure as hell didn’t leave me this.”  BERSHAN and MARGULIES also signed investment documents providing that “[t]he Company and Lisa Bershan, its founder, have committed to repurchase” investors’ shares at the price that they had paid for them if they had not appreciated within a year, and further guaranteeing that “Lisa Bershan . . . [would] add an interest payment of 5%” in such an event.  These guarantees were not made in good faith, as neither BERSHAN nor Starship had any significant assets or ability to honor the guarantees they were making.  To the contrary, BERSHAN had unpaid tax liabilities and multiple outstanding civil judgments (and did not actually own the mansion that, as discussed above, she implicitly held out to investors as her own).

In addition to making bogus guarantees, BERSHAN, SCHWARTZ, and MARGULIES also told investors that Starship was in discussions to be acquired by Monster, and that this transaction would take place through a one-to-one exchange of Starship stock for Monster stock.  In October 2015, for example, MARGULIES sent an email to multiple investors that sought additional investments and expressly stated, “[t]he deal as I am certain you have heard is done thanks in no small part to the extraordinary talents and skills of our CEO, Lisa Bershan.  If you are not aware of the deal, it is a one to one --- share for share exchange of [Starship] for Monster after a six month holding period of [Starship] shares.”  Given that Monster’s stock was, at the time, trading at many multiples of the $3 per share that Starship’s investors initially paid at the time, this purported transaction would result in tremendous gains for Starship investors.  But there was no basis for the claim that the “deal . . . [was] done.”  Starship was never acquired by Monster or any other entity, and, indeed, was never in negotiations with Monster. 

Finally, BERSHAN, SCWHARTZ, and MARGULIES misrepresented the nature and progress of Starship’s purported business to investors.  BERSHAN, SCHWARTZ, and MARGULIES told investors that Starship had developed its caffeinated chocolate snack, when, in reality, it had not done so.  Indeed, in order to mislead investors into thinking that the product was further along than it actually was, BERSHAN, SCHWARTZ, and MARGULIES actually provided samples of normal chocolates to certain investors, falsely telling them that the chocolates were caffeinated as per Starship’s business plan. 

In total, BERSHAN, SCHWARTZ, and MARGULIES raised over approximately $2 million from investors based on these false representations.  Much of this amount was simply misappropriated by BERSHAN and SCHWARTZ (or paid to MARGULIES).  Between August 2015 and July 2017, for example, BERSHAN and SCHWARTZ spent over $39,000 on plastic surgery; over $209,000 on retail purchases, including jewelry, clothes, and interior decorating; over $11,900 at a Mercedes dealership; and hundreds of thousands of dollars on luxury housing. 

MARGULIES, 72, of Murfreesboro, Tennessee, BERSHAN, 65, and SCHWARTZ, 71, are each charged with one count of conspiring to commit securities and wire fraud, which carries a maximum prison sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.  The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.           

Mr. Kim praised the exceptional work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance. 

The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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

Manhattan Tax Attorney Sentenced To Two Years In Prison For Participation In Multimillion-Dollar Tax Evasion Scheme And Lying To The IRS

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that HAROLD LEVINE, a Manhattan tax attorney, was sentenced today by U.S. District Judge Jed S. Rakoff to 24 months in prison for tax evasion and obstruction of the Internal Revenue Service (“IRS”), stemming from his scheme to siphon millions of dollars of tax shelter fee income from the law firm at which he worked and failing to report the diverted fees as income.  LEVINE’s scheme also involved making false statements to IRS auditors, and urging a witness to provide false testimony to the same IRS auditors who were investigating LEVINE’s receipt of the fees. 

Acting U.S. Attorney Joon H. Kim said:  “Harold Levine stole first from his law firm partners and then from American taxpayers by filing tax returns that left out millions of dollars of income.  As if tax evasion by a tax attorney were not bad enough, Levine tried to get out of it by lying to the IRS during an audit and urging a witness to give false testimony.  Levine’s jail sentence should serve as a reminder that everyone – including tax lawyers – must be truthful in reporting their income, and deal honestly with, the tax authorities.”

According to the Indictment, LEVINE’s guilty plea, and statements made during the plea proceedings and other court proceedings:

Between 2004 and 2012, LEVINE, a tax attorney and former head of the tax department at a major Manhattan Law Firm (the “Law Firm”), schemed with co-defendant Ronald Katz, a certified public accountant, to obstruct and impede the due administration of the Internal Revenue laws by evading income taxes on millions of dollars of fee income generated from tax shelter and related transactions that LEVINE worked on while a partner of the Law Firm.  Specifically, LEVINE failed to report approximately $3 million in income to the IRS on his personal tax returns during the period 2005-2011.  Most of the fee income LEVINE failed to report was routed by him through a limited liability company LEVINE controlled, which was nominally owned by a family member. 

As part of the scheme, for example, LEVINE caused tax shelter fees paid by a Law Firm client to be routed from the Law Firm’s escrow account to a partnership entity he co-owned with Katz and thereafter used those fees – totaling approximately $500,000 – to purchase a home in Levittown, on Long Island.  LEVINE caused the home to be purchased as a residence for a Law Firm employee (the “Law Firm Employee”) with whom he then enjoyed a close personal relationship.  Although LEVINE allowed the Law Firm Employee to reside in the Levittown house for over five years without paying rent, LEVINE and Katz prepared tax returns for the entity through which the home was purchased that claimed false deductions as a rental property.

In February 2013, LEVINE was questioned by IRS agents concerning his involvement in certain tax shelter transactions and the fees received by LEVINE from those transactions.  During that questioning, LEVINE falsely told the IRS that the Law Firm Employee paid him $1,000 per month in rent while living in the Levittown home.  In addition, when the Law Firm Employee was contacted by the IRS and summoned to appear for testimony, LEVINE urged the employee to falsely tell the IRS that she had paid $1,000 per month in rent to LEVINE.

In imposing sentence today, Judge Rakoff said, “There was no one in the world who knew better that he was committing a crime than Harold Levine.”

In addition to the 24-month prison sentence, LEVINE, 59, of New York, New York, was sentenced to three years of supervised release, and ordered to pay restitution to the IRS in an amount to be determined at a hearing on November 13, 2017.

Co-defendant Ronald Katz, who also pled guilty in June 2017, is scheduled to be sentenced on November 13, 2017.

Mr. Kim thanked the IRS for its assistance in this investigation and praised the outstanding investigative work of both IRS-CI and IRS Civil – Large Business & International. 

Manhattan U.S. Attorney Announces Charges Against Massachusetts Businessman For Money Laundering, Financial Support For Manhattan Brothel

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Charles Brandeis, the Special Agent in Charge of the New York Field Office of the U.S. Department of State's Diplomatic Security Service (“DSS”), and Philip Bartlett, the Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced charges today against a Massachusetts businessman, DAVID STASIOR, for providing financing and financial advice to an illegal brothel operating in Manhattan, and conspiring with the brothel owner to use the proceeds from the brothel to promote the brothel’s activities. STASIOR was arrested by agents from DSS, the USPIS, and the U.S. Attorney’s Office for the Southern District of New York this morning and will be presented in federal court in Massachusetts later today.

This case arises from a multiple-year-long investigation in which 17 additional individuals have previously been charged with conspiracy to commit money laundering and conspiracy to violate the Travel Act.  The previously charged individuals have included the owners of a network of at least 10 brothels in Manhattan, and individuals who provided advertising services for these brothels.  These brothels were independently owned but worked cooperatively, and employed prostitutes who typically came to the United States from South Korea pursuant to fraudulently obtained visas or visa waivers.  STASIOR allegedly provided financing for one of these brothels, whose owner was previously charged and pled guilty to money laundering conspiracy.

Acting U.S. Attorney Joon H. Kim stated:  “For years, the defendant allegedly helped launder the proceeds of an illegal brothel operation in Manhattan, providing start-up money, ongoing financial advice, and record-keeping services.  As alleged, the defendant financially supported and profited from this business that exploited vulnerable women and laundered money.”

Special Agent in Charge Charles Brandeis stated:  “DSS continues to disrupt and dismantle transnational criminal organizations seeking to profit from the entry and illicit activities of vulnerable foreign nationals.  This investigation demonstrates the global reach of the Diplomatic Security Service.”

Inspector in Charge Philip R. Bartlett stated:  “This arrest represents the continued effort of law enforcement to put a stop to illegal activity wherever it is found.  Many claim prostitution is the oldest profession in the world.  The anonymity of the internet was used to hide the identity of its operators, keeping law enforcement in the dark.  As in this case, what is done in the dark will always be revealed in the light.”

According to the Complaint[1]:

Since 2012, DSS, USPIS, and the U.S. Attorney’s Office for the Southern District of New York have been investigating a group of brothels (the “Brothels”) operating in and around New York.  Each of the Brothels was independently owned and operated, but the owners of the Brothels worked cooperatively through, among other things, the sharing of approved customer lists and information.  STASIOR started out as a customer of the Brothels.  In 2013, he provided a co-conspirator (“CC-1”)[2] with financing to open a brothel (the “Brothel”), while requiring the co-conspirator to make periodic payments from the Brothel’s proceeds in return for his investment. 

The Brothel used a website to advertise the women prostituted in the Brothel, as well as an online aggregator of advertisements to advertise the Brothel.  The management of online advertising and payment for this advertising was coordinated by the defendant and CC-1, among others.  STASIOR sent multiple emails to CC-1 in which he provided business advice to the Brothel, including advice on how to use online advertising for the Brothel to increase the Brothel’s profits.  STASIOR’s emails included spreadsheets that listed him as a “Partner” in the business and itemized the Brothel’s prostitution revenues and the various expenses involved in running the Brothel, including the cost of advertising.  In these emails, STASIOR also itemized the payments made to him out of the Brothel’s proceeds, and stated that he was concerned about the Brothel’s profitability to ensure that CC-1 would be able to “pay back” the “debt” that had been incurred by his investment in the Brothel.          

           

STASIOR, 53, of Concord, Massachusetts, is charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to violate the Travel Act, which carries a maximum sentence of five years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

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

Mr. Kim praised the outstanding efforts of DSS, USPIS, and the criminal investigators working in the United States Attorney’s Office for the Southern District of New York.  He added that the investigation is ongoing.

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

 

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

[2] CC-1 has been separately charged in the Southern District of New York with money laundering conspiracy and Travel Act conspiracy, and has pleaded guilty to money laundering conspiracy.