Acting Manhattan U.S. Attorney And FBI Assistant Director Announce Insider Trading Charges Against Managing Director Of Private Equity Fund

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Danny Kennedy, the Acting Assistant Director-in-Charge of the Los Angeles Field Office of the Federal Bureau of Investigation (“FBI”), announced the indictment today of  BENJAMIN CHOW, a/k/a “Ben Chow Zhou Bin,” a/k/a “Benjamin Bin Chow,” a/k/a “Bin Zhou,” for conspiracy to commit securities fraud and securities fraud in connection with a $5 million insider trading scheme relating to the securities of Lattice Semiconductor Corporation (“Lattice”).  The case is assigned to U.S. District Judge Gregory H. Woods.

Acting U.S. Attorney Joon H. Kim said:  “As alleged, Benjamin Chow tipped his friend about a potential acquisition of Lattice Semiconductor Corporation by private equity firms he managed, including one based in China.  Chow’s illegal tips resulted in multimillion-dollar profits for his friend and business associate.  This type of alleged illegal tipping is not only illegal, but erodes public confidence in our markets.  Protecting the integrity of our financial markets remains a top priority of this Office.”

FBI Assistant Director-in-Charge Danny Kennedy said:  “Mr. Chow misused his position of trust to undermine the integrity of the market.  The FBI and our partners are committed to fairness in the marketplace by holding accountable those who threaten legitimate exchanges by trading on proprietary knowledge.”

According to the allegations in the Indictment filed in Manhattan federal court:[1]

From approximately March to November 2016, CHOW provided a friend and business associate (“CC-1”) with material nonpublic information relating to a potential merger between Lattice and private equity firms managed by CHOW, one based in Beijing, China (“Firm-1”) and one based in Palo Alto, California (“Firm-2”).  CC-1 in turn used such information to make millions of dollars in profitable securities trades through accounts opened in the names of family members and associates of CC-1. 

Specifically, as Managing Director of Firm-1 and later Managing Partner of Firm-2, CHOW obtained material nonpublic information regarding potential merger agreements between Lattice and Firm-1, and later, Firm-2.  Information concerning the potential merger agreements was subject, among other things, to nondisclosure agreements executed between Lattice and Firm-1, and subsequently between Lattice and Firm-2.   

In violation of these agreements, and in breach of his duties, CHOW provided CC-1 with material nonpublic information regarding the potential mergers between Lattice and Firm-1 and Lattice and Firm-2, through in-person meetings, voice messages, and text exchanges.  On multiple occasions, CC-1 made profitable trades in Lattice shortly after receiving the material nonpublic information from CHOW, yielding a total of at least approximately $5 million in profits for CC-1. 

CHOW, 46, of Los Angeles, California, is charged with one count of conspiring to commit securities fraud, which carries a maximum prison sentence of five years in prison, and 13 counts of securities fraud, which carry maximum sentences of between 20 and 25 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 defendant 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 Indictment and 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 Indictment – and the description of the Indictment set forth herein – constitute only allegations, and every fact described should be treated as an allegation.

Former Chairman And CEO Of Federal Credit Union And Computer Programmer For Unlawful Bitcoin Exchange Sentenced In Manhattan Federal Court

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TREVON GROSS and YURI LEBEDEV were sentenced by U.S. District Judge Alison J. Nathan to prison in connection with a bribery scheme to take over control of a federal credit union and a related fraud scheme to operate Coin.mx, an illegal Bitcoin exchange.  On March 17, 2017, GROSS and LEBEDEV were convicted following a jury trial on all counts with which they were charged in the controlling indictment.  On October 20, Judge Nathan sentenced LEBEDEV to 16 months in prison.  Earlier today, Judge Nathan sentenced GROSS to 60 months in prison.    

Acting U.S. Attorney Joon H. Kim said:  “Yuri Lebedev and others at Coin.mx, an unlawful Bitcoin exchange, tricked banks into processing millions of dollars in transactions by hiding the nature of their business.  When the banks caught on to their scheme, Lebedev and others bribed Trevon Gross in order to gain control of a credit union to process those transactions, undermining the credit union’s safety and solvency in the process.  Despite elaborate efforts by the defendants to hide their schemes, their brazen crimes were exposed at trial.  Gross and Lebedev’s criminal schemes have now landed them in federal prison.”  

According to the Superseding Indictment on which GROSS and LEBEDEV were convicted, evidence admitted at trial, and statements made during the sentencing proceedings: 

The Unlawful Bitcoin Exchange

Between 2013 and July 2015, LEBEDEV helped operate Coin.mx, an unlawful internet-based Bitcoin exchange, along with Anthony Murgio, the founder of Coin.mx.  LEBEDEV, Murgio, and their co-conspirators engaged in substantial efforts to evade detection of their unlawful Bitcoin exchange by operating through a phony front company called “Collectables Club.”  Coin.mx used the “Collectables Club” to open financial accounts in order to trick financial institutions into believing the unlawful Bitcoin exchange was simply a members-only association of individuals who discussed, bought, and sold collectible items and memorabilia.  LEBEDEV and his co-conspirators deceived financial institutions by deliberately misidentifying and miscoding Coin.mx customers’ credit and debit card transactions, in violation of bank and credit card company rules and regulations.  Through the illegal Coin.mx scheme, LEBEDEV and his co-conspirators caused more than $10 million in Bitcoin-related transactions to be processed illegally through financial institutions. 

The Credit Union Bribery Scheme

In 2014, in an effort further to evade scrutiny from financial institutions about the nature of the business engaged in by Coin.mx, LEBEDEV, Murgio, and their co-conspirators gained control of HOPE Federal Credit Union (“HOPE FCU”), a low-income designated federal credit union in Lakewood, New Jersey, for which GROSS served as Chairman and CEO.  After making more than $150,000 in illegal bribes at GROSS’s direction to bank accounts in the name of a church where GROSS served as the pastor, LEBEDEV, Murgio, and their co-conspirators took control of HOPE FCU.  With GROSS’s assistance, Murgio installed LEBEDEV and various co-conspirators on HOPE FCU’s Board of Directors and transferred Coin.mx’s banking operations to HOPE FCU.  GROSS also ceded operational control of the credit union to the board members installed by Murgio, including LEBEDEV.  Thereafter, GROSS, LEBEDEV, and others worked to run tens of millions of dollars of ACH (Automated Clearing House) transactions through the credit union without adequate capital or anti-money laundering controls, thus putting HOPE FCU’s financial condition at substantial risk. 

GROSS, LEBEDEV, Murgio, and their co-conspirators also obstructed an examination of HOPE FCU by the National Credit Union Administration (“NCUA”) and made false statements to the NCUA in order to perpetuate LEBEDEV and Murgio’s control of the credit union.  These included deliberately failing to disclose the bribe payments; misrepresenting the location of Coin.mx-affiliated businesses, including the “Collectables Club,” so as to claim that they were eligible to be members of the credit union and to serve as Board members; and manipulating the accounting at HOPE FCU so as to hide its true financial condition and the fact that it was processing tens of millions of dollars of ACH transactions without adequate controls.  HOPE FCU was operated as a captive bank by MURGIO and his co-conspirators until the end of 2014.  In October 2015, the NCUA placed HOPE FCU into conservatorship and subsequently liquidation.

On March 17, 2017, GROSS and LEBEDEV were convicted after a four-week jury trial of conspiring to make corrupt payments to an officer of a financial institution, to receive corrupt payments by an officer of a financial institution, to obstruct an NCUA examination of a financial institution, and to make false statements to the NCUA.  GROSS was also convicted of the receipt of corrupt payments by an officer of a financial institution.  LEBEDEV was also convicted of making corrupt payments to an officer of a financial institution, wire fraud, bank fraud, and conspiring to commit wire fraud and bank fraud.  In imposing today’s sentence, Judge Nathan found that GROSS committed perjury when he testified under oath at trial. 

 In addition to the prison sentences, GROSS, 47, of Jackson, New Jersey, and LEBEDEV, 39, of St. Johns, Florida, were each sentenced to three years of supervised release and ordered to pay fines of $12,000 and $10,000, respectively.  In addition, GROSS and LEBEDEV were ordered to forfeit the proceeds of their crimes and to pay restitution, jointly and severally with Murgio, to the NCUA. 

All four of LEBEDEV and GROSS’s co-defendants have been convicted and have been sentenced or are awaiting sentence by Judge Nathan.

Anthony R. Murgio pled guilty on January 9, 2017, to conspiring to operate an unlicensed money transmitting business, conspiring to commit wire fraud and bank fraud, and conspiring to obstruct an examination of HOPE FCU by the NCUA in furtherance of the illegal Coin.mx scheme.  On June 27, 2017, Murgio was sentenced to 66 months in prison, three years of supervised release, and a $12,000 fine. 

Michael J. Murgio pled guilty on October 27, 2016, to conspiring to obstruct an NCUA examination of a financial institution, and was sentenced on January 27, 2017, to one year of probation and a $12,000 fine.

Jose M. Freundt pled guilty on October 13, 2016, to operating an unlicensed money transmitting business, conspiring to operate an unlicensed money transmitting business, making corrupt payments to an officer of a financial institution, conspiring to make corrupt payments to an officer of a financial institution, wire fraud, and conspiring to commit wire fraud.  Freundt is scheduled to be sentenced on December 18, 2017.

Ricardo Hill pled guilty on January 17, 2017, to operating an unlicensed money transmitting business; conspiring to operate an unlicensed money transmitting business; making corrupt payments to an officer of a financial institution; conspiring to make corrupt payments to an officer of a financial institution, to receive corrupt payments by an officer of a financial institution, to obstruct an NCUA examination of a financial institution, and to make false statements to the NCUA; wire fraud; bank fraud; and conspiring to commit wire fraud and bank fraud.  Hill is scheduled to be sentenced on December 18, 2017.

Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the United States Secret Service.  He also thanked the NCUA for its assistance with the investigation and prosecution.

A.G. Schneiderman Announces $700,000 Joint Settlement With Hilton After Data Breach Exposed Hundreds Of Thousands Of Credit Card Numbers

Hilton Agrees To Provide Expedient Notice To Consumers Of Future Breaches, Reform Its Data Security Practices, And Conduct Regular Assessments Of Its Data Security Program

  Attorney General Eric T. Schneiderman today announced a $700,000 settlement with Hilton Domestic Operating Company, Inc., formerly known as Hilton Worldwide, Inc. (“Hilton”), after data security incidents exposed over 350,000 credit card numbers in two separate breaches in 2015. Attorney General Schneiderman’s investigation, conducted in collaboration with the Vermont Attorney General’s office, revealed that Hilton did not provide consumers with timely notice and did not maintain reasonable data security.

“BusinAesses have a duty to notify consumers in the event of a breach and protect their personal information as securely as possible,” said Attorney General Schneiderman. “Lax security practices like those we uncovered at Hilton put New Yorkers’ credit card information and other personal data at serious risk. My office will continue to hold businesses accountable for protecting their customers’ personal information.”

Hilton is one of the largest hospitality companies in the world, with a portfolio of 14 brands comprising more than 4,900 properties with more than 796,000 rooms in 104 countries and territories. The company owns, manages, or franchises a portfolio of brands including Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Homewood Suites by Hilton, and Hilton Grand Vacations.

On February 10, 2015, Hilton learned from a computer services provider that a system Hilton utilized in the United Kingdom was communicating with a suspicious computer outside Hilton’s computer network. A forensic investigation revealed credit-card targeting malware that potentially exposed cardholder data between November 18 and December 5, 2014.

On July 10, 2015, Hilton learned of a second breach through an intrusion detection system. A forensic investigation found further malware designed to steal credit card information. It found that payment card data was potentially exposed from April 21, 2015 through July 27, 2015, as well as evidence of 363,952 credit card numbers aggregated for removal by the attackers.

Hilton did not provide notice until November 24, 2015, over nine months after the first intrusion was discovered. While Hilton alleged that there was no evidence of removal of the cardholder data, the forensic investigator was not able to review all relevant logs and the intruders used anti-forensic tools to hide their tracks.

Pursuant to New York General Business Law § 899-aa(2), any person or business which owns or licenses computer data that includes “private information,” a term which includes a person’s name and credit card number, shall disclose any breach of the security of the system following discovery to any resident of New York whose information was, or is reasonably believed to have been, acquired by a person without valid authorization. The disclosure must be made in the “most expedient time possible and without unreasonable delay.” Hilton did not provide notice to consumers in the most expedient time possible and without unreasonable delay.

The investigation found that Hilton was also not in compliance with certain Payment Card Industry Data Security Standard (“PCI DSS”) requirements. The PCI DSS is a proprietary information security standard for organizations that process branded credit cards from the major card companies, including Visa, MasterCard, American Express, Discover, and JCB. The standard is mandated by the card brands and administered by the Payment Card Industry Security Standards Council to ensure cardholder data is processed in a secure environment.

New York Executive Law § 63(12) and New York General Business Law §§ 349 and 350 prohibit deceptive acts or practices in conducting business. Hilton represented to its customers that it would maintain their personal information, such as credit card information, using reasonable data security. For example, Hilton’s Global Privacy Statement on Hilton’s website (www.hilton.com) provides that Hilton “will take reasonable measures to: (1) protect personal information from unauthorized access, disclosure, alteration or destruction and (ii) keep personal information accurate and up-to-date as appropriate.” The policy broadly defines customers’ personal information to include, among other things, name, address, and payment card information. Hilton also represented that it would keep its customer’s personal information “secure.” For example, upon logging on to Hilton.com, members are immediately presented with a statement that “Your information is secure” with a hyperlink to Hilton’s Global Privacy Statement. By violating express and implied representations of reasonable data security, Hilton violated New York Executive Law § 63(12) and New York General Business Law §§ 349 and 350.

The settlement requires Hilton to provide immediate notice to consumers affected by a breach, maintain a comprehensive information security program, and conduct data security assessments as follows:

Notice to Consumers

Hilton has agreed to provide notice to affected New York residents and the Attorney General’s office of a breach involving private information in compliance with, and as defined by, GBL § 899-aa. In determining whether the information “has been acquired, or is reasonably believed to have been acquired” pursuant to GBL § 899-aa(2), Hilton must consider all information reasonably available to it, including, among other things, (i) indications that the information is in the physical possession and control of a person without valid authorization, such as a lost or stolen computer or other device containing information; (ii) indications that the information has been downloaded or copied; (iii) indications that the information was used by an unauthorized person, such as fraudulent accounts opened or instances of identity theft reported; (iv) that the information has been made public; and (v) evidence of malware on its computer systems designed to collect cardholder data.

Comprehensive Information Security Program

Hilton has agreed to design and maintain a comprehensive information security program designed to protect consumer cardholder data including by:

1. designating  an employee to coordinate and supervise its information security program;
2. identifying material internal and external risks to information security that could lead to unauthorized disclosure, misuse, loss, alteration, destruction, or other compromise of the information;
3. implementing reasonable safeguards to control those risks; and perform regular testing or monitoring of the safeguards’ effectiveness;
4. developing and using reasonable steps to select and retain service providers capable of appropriately safeguarding cardholder data and contractually require such service providers to also implement and maintain appropriate safeguards for the information; and
5. evaluating Hilton’s information security program and adjust it based on testing or monitoring results or other circumstances (including material changes to Hilton’s operations or business arrangements) that Hilton knows, or an entity acting reasonably under the circumstances would know, may have a material impact on the program’s effectiveness.

Cardholder Data Assessments

Hilton has agreed to annually obtain a written assessment of the extent of its compliance with PCI DSS and report to the Attorney General if it is not fully compliant.

New York will receive $400,000 of the settlement and Vermont will receive the remainder.

A.G. Schneiderman Announces Felony Conviction Of Fake Attorney Who Defrauded Over 400 New Yorkers

Antonia Barrone, a/k/a Mario Vrendenburg, Forged Documents And Collected Over $23,000 For Fraudulent Legal Services

Barrone Will Serve 1 ½ To 3 Years In State Prison And Pay Nearly $270,000 In Restitution And Penalties

   Attorney General Eric T. Schneiderman today announced the felony conviction of Antonia Barrone, a/k/a as Mario Vrendenburg (“Barrone”), who pled guilty to operating a fake law firm and pretending to be a licensed attorney, as well as defrauding over 400 New Yorkers out of more than $23,000 over the course of nearly five years. After pleading guilty to Scheme to Defraud in the First Degree, Barrone will serve 1 ½ to 3 years in state prison and owe nearly $270,000 in restitution and penalties.

In May 2017, the Attorney General’s Consumer Frauds and Protection Bureau filed a lawsuit in Albany County Supreme Court against NYS Prisoner Assistance Center, Inc., operating as the NYS Prisoner Assistance Center or NY Parole Aids (“NYSPAC”), and its owner, Barrone. The suit charged Barrone with bilking hundreds of New Yorkers, including prison inmates and their families, out of thousands of dollars to handle administrative parole appeals and other legal matters. The lawsuit alleged that Barrone operated these fraudulent businesses from her home and duped hundreds of consumers by falsely claiming to be an attorney and by misleading consumers to think that the NYS Prisoner Assistance Center was staffed with attorneys.

“Practicing law without a license undermines our judicial system and puts vulnerable consumers in need of legal services at risk,” said Attorney General Schneiderman. “My office is committed to protecting the legal rights of New Yorkers and will continue to work with our partners in law enforcement to ensure that those who attempt to impair that right are held accountable.”

Department of Corrections and Community Supervision Acting Commissioner Anthony J. Annucci said, “It is revolting to target inmates and their families at a time when they are preparing for an event as important as a Board of Parole interview and a chance at reentering the community. The Department will continue to do all it can to prevent unscrupulous people from taking advantage of and attempting to defraud New Yorkers.”

According to papers filed by the Attorney General’s Office, although Barrone is not an attorney, she advertised an array of legal services on the NYSPAC’s website and charged thousands of dollars to provide legal services. The services included filing administrative and judicial appeals on behalf of inmates who were denied parole by the New York State Department of Corrections and Community Supervision (DOCCS) and representing inmates at administrative hearings and individuals facing criminal charges in various New York State courts. In some cases, Barrone accepted fees but did not perform any services.

Following Attorney General Schneiderman’s lawsuit, in August 2017, the Honorable Gerald W. Connolly of Albany County Supreme Court ordered Barrone and the NYS Prisoner Assistance Center to pay a $244,500 penalty to the State as well as full restitution of $23,427.70 to known consumers who paid for legal services. The judgment also prohibits Barrone and NYSPAC from practicing law without a license or advertising or selling legal or paralegal services.

In addition to the civil lawsuit, the Attorney General’s Criminal Enforcement and Financial Crimes Bureau launched a criminal investigation into Barrone’s conduct. On October 16, 2017, Barrone was arrested and arraigned in Albany City Court before the Honorable Holly A. Trexler on a felony complaint filed by the Attorney General’s Office charging: five counts of Criminal Possession of a Forged Instrument in the Second Degree, a class “D” felony; two counts of Grand Larceny in the Third Degree, a class “D” felony; one count of Grand Larceny in the Fourth Degree, a class “E” felony; one count of Unauthorized Practice of a Profession, a class “E” felony; and, one count of Scheme to Defraud in the First Degree, a class “E” felony. 

According to the Attorney General’s felony complaint and statements made by the prosecutor, between September 1, 2012 and April 30, 2017, Barrone pretended to be an attorney and stole thousands of dollars from the families of inmates who hired her to provide legal representation for their loved ones. In furtherance of her nearly five-year scheme, Barrone filed legal documents with forged signatures and fake notary stamps, wrote letters on behalf of consumers on letterhead bearing the name of the fictitious law firm “Stacchini & Barrone, Attorneys at Law,” and appropriated the name of a licensed attorney, without that attorney’s knowledge. 

Also according to the felony complaint, during the course of her scheme, Barrone made use of multiple different names, including Mario Vrendenberg, Antonio Barrone, Mario Stacchini, Mario Helems, T. Helems, and Mark Vredenburg. The prosecutor stated that Barrone and the entities she operated had over 400 clients seeking legal services throughout New York State, including but not limited to the Counties of Albany, Cayuga, Clinton, Rensselaer, Saratoga, Schoharie, Suffolk, Ulster, Warren and Westchester.

Today, Barrone entered a guilty plea to one count of Scheme to Defraud in the First Degree before Albany County Court Judge Honorable Peter A. Lynch. Barrone is scheduled to be sentenced to 1 ½ to 3 years in state prison on November 16, 2017, which will run consecutive to Barrone’s sentence of 1 1/3 to 4 years in state prison also scheduled for November 16, 2017 for an unrelated felony conviction before Honorable Andrew G. Ceresia.

The Attorney General urges consumers who have a complaint against Barrone or the NYS Prisoner Assistance Center, Inc. to file a complaint online or call 1-800--771-7755.

Consumers can check whether an individual is a licensed attorney in New York State by visiting the New York State Unified Court System’s website

Today’s convictions were the result of a joint investigation by the Attorney General’s Office and DOCCS. Attorney General Schneiderman thanks DOCCS for its valuable assistance in this matter.

Additionally, Attorney General Schneiderman thanks the Board of Parole Counsel’s Office, who uncovered Barrone’s efforts to deceive and bilk families by meticulously going through records and identifying this fraudulent activity. Their findings contributed to the Attorney General's investigation and criminal prosecution.   Attorney General Eric T. Schneiderman today announced the felony conviction of Antonia Barrone, a/k/a as Mario Vrendenburg (“Barrone”), who pled guilty to operating a fake law firm and pretending to be a licensed attorney, as well as defrauding over 400 New Yorkers out of more than $23,000 over the course of nearly five years. After pleading guilty to Scheme to Defraud in the First Degree, Barrone will serve 1 ½ to 3 years in state prison and owe nearly $270,000 in restitution and penalties.

In May 2017, the Attorney General’s Consumer Frauds and Protection Bureau filed a lawsuit in Albany County Supreme Court against NYS Prisoner Assistance Center, Inc., operating as the NYS Prisoner Assistance Center or NY Parole Aids (“NYSPAC”), and its owner, Barrone. The suit charged Barrone with bilking hundreds of New Yorkers, including prison inmates and their families, out of thousands of dollars to handle administrative parole appeals and other legal matters. The lawsuit alleged that Barrone operated these fraudulent businesses from her home and duped hundreds of consumers by falsely claiming to be an attorney and by misleading consumers to think that the NYS Prisoner Assistance Center was staffed with attorneys.

“Practicing law without a license undermines our judicial system and puts vulnerable consumers in need of legal services at risk,” said Attorney General Schneiderman. “My office is committed to protecting the legal rights of New Yorkers and will continue to work with our partners in law enforcement to ensure that those who attempt to impair that right are held accountable.”

Department of Corrections and Community Supervision Acting Commissioner Anthony J. Annucci said, “It is revolting to target inmates and their families at a time when they are preparing for an event as important as a Board of Parole interview and a chance at reentering the community. The Department will continue to do all it can to prevent unscrupulous people from taking advantage of and attempting to defraud New Yorkers.”

According to papers filed by the Attorney General’s Office, although Barrone is not an attorney, she advertised an array of legal services on the NYSPAC’s website and charged thousands of dollars to provide legal services. The services included filing administrative and judicial appeals on behalf of inmates who were denied parole by the New York State Department of Corrections and Community Supervision (DOCCS) and representing inmates at administrative hearings and individuals facing criminal charges in various New York State courts. In some cases, Barrone accepted fees but did not perform any services.

Following Attorney General Schneiderman’s lawsuit, in August 2017, the Honorable Gerald W. Connolly of Albany County Supreme Court ordered Barrone and the NYS Prisoner Assistance Center to pay a $244,500 penalty to the State as well as full restitution of $23,427.70 to known consumers who paid for legal services. The judgment also prohibits Barrone and NYSPAC from practicing law without a license or advertising or selling legal or paralegal services.

In addition to the civil lawsuit, the Attorney General’s Criminal Enforcement and Financial Crimes Bureau launched a criminal investigation into Barrone’s conduct. On October 16, 2017, Barrone was arrested and arraigned in Albany City Court before the Honorable Holly A. Trexler on a felony complaint filed by the Attorney General’s Office charging: five counts of Criminal Possession of a Forged Instrument in the Second Degree, a class “D” felony; two counts of Grand Larceny in the Third Degree, a class “D” felony; one count of Grand Larceny in the Fourth Degree, a class “E” felony; one count of Unauthorized Practice of a Profession, a class “E” felony; and, one count of Scheme to Defraud in the First Degree, a class “E” felony. 

According to the Attorney General’s felony complaint and statements made by the prosecutor, between September 1, 2012 and April 30, 2017, Barrone pretended to be an attorney and stole thousands of dollars from the families of inmates who hired her to provide legal representation for their loved ones. In furtherance of her nearly five-year scheme, Barrone filed legal documents with forged signatures and fake notary stamps, wrote letters on behalf of consumers on letterhead bearing the name of the fictitious law firm “Stacchini & Barrone, Attorneys at Law,” and appropriated the name of a licensed attorney, without that attorney’s knowledge. 

Also according to the felony complaint, during the course of her scheme, Barrone made use of multiple different names, including Mario Vrendenberg, Antonio Barrone, Mario Stacchini, Mario Helems, T. Helems, and Mark Vredenburg. The prosecutor stated that Barrone and the entities she operated had over 400 clients seeking legal services throughout New York State, including but not limited to the Counties of Albany, Cayuga, Clinton, Rensselaer, Saratoga, Schoharie, Suffolk, Ulster, Warren and Westchester.

Today, Barrone entered a guilty plea to one count of Scheme to Defraud in the First Degree before Albany County Court Judge Honorable Peter A. Lynch. Barrone is scheduled to be sentenced to 1 ½ to 3 years in state prison on November 16, 2017, which will run consecutive to Barrone’s sentence of 1 1/3 to 4 years in state prison also scheduled for November 16, 2017 for an unrelated felony conviction before Honorable Andrew G. Ceresia.

The Attorney General urges consumers who have a complaint against Barrone or the NYS Prisoner Assistance Center, Inc. to file a complaint online or call 1-800--771-7755.

Consumers can check whether an individual is a licensed attorney in New York State by visiting the New York State Unified Court System’s website

Today’s convictions were the result of a joint investigation by the Attorney General’s Office and DOCCS. Attorney General Schneiderman thanks DOCCS for its valuable assistance in this matter.

Additionally, Attorney General Schneiderman thanks the Board of Parole Counsel’s Office, who uncovered Barrone’s efforts to deceive and bilk families by meticulously going through records and identifying this fraudulent activity. Their findings contributed to the Attorney General's investigation and criminal prosecution.  

Is Pedestrian Bridge in VCP in Trouble?

  The above rendering of the Pedestrian Bridge in VCP over the Major Deegan Highway was the focal point of last night's Croton Filtration Monitoring Committee meeting. The above rendering shows how the pedestrian bridge would look. The bridge is further north on the highway than expected due to the fact that the original site of Mosholu Parkway is above the Croton Aqueduct. There is a fear that construction directly above the aqueduct could damage it.  

  

 There would have to be a total of eighty-two trees removed to create the pedestrian bridge which  worried Community Board chairs Bill Hall and Rosemary Ginty. The exact details were explained by Bharat Parent of the DDC, including the schedule of designing the bridge and bidding process which could take years to complete. The projected start date was sometime in 2020.

  

  Another problem that may kill the pedestrian bridge is the fact that the original cost of $12 million dollars has ballooned to $22 Million dollars give or take a million dollars depending on the design of the bridge. It was then that a spokesperson for Assemblyman Jeffrey Dinowitz said tat the elected officials are not happy with the higher cost which may go even higher. He also said that the elected officials who put together the state portion of the money needed to build the pedestrian bridge were even thinking of withdrawing the state monies from the process. The state was kicking in about one-third of the original $12 million dollars. This was a surprise to all in attendance, and even the DDC representative who said that the DDC would try to work this out. 

Senator Jeff Klein announces nearly $1 million in funding for Hunts Point Food Distribution Center

Two grants will be used for improvements at the meat and produce markets

Senator Jeff Klein announced nearly $1 million in funding for two separate projects at the Hunts Point Food Distribution Center during the annual Greater Hunts Point Chamber of Commerce Tent Party last Thursday. The funding consists of two grants will be used for improvements at the meat and produce markets.

“The Hunts Point Food Distribution Center is a major economic engine for our region that just a few years received a major $150 million investment from the city for upgrades.  I’m proud to continue the trend to help modernize and improve the the center by allocating nearly $1 million for improvements at the cooperative and produce markets,” said Senator Jeff Klein.

“We are extremely grateful that Senator Klein continues to recognize the significant role that the Hunts Point Cooperative Market, whose businesses distribute over 75% of the meat sold in New York City and the tri-state area, plays in the health of the local and regional economies. Senator Klein does a lot to help the businesses operating here with our efforts to modernize our facility and preserve the safety of the city’s critical food distribution network,” said Bruce Reingold, General Manager of Hunts Point Cooperative Market.

“Senator Klein is a great supporter of the market. When we confronted him with the failing infrastructure he asked what he could do in order to maintain the highest level of food safety,” said Joel Fierman, President of the Hunts Point Terminal Produce Cooperative Association. “This grant will be used by the market to insure we can keep our lights and refrigeration running. On behalf of the 1250 union and the thousands of other jobs the market provides to the people of New York City, we can’t thank Senator Klein enough. He knew instantly how to help us.”

One of the grants will be used for renovations to the toll plaza at the Hunts Point Meat Market. That $495,000 grant will provide a new canopy, three new aluminum attendant booths and a new storage and security center. The other $500,00 funding allocation will be used for electrical updates to market power systems at the Hunts Point Terminal Produce Market.

MAYOR DE BLASIO APPOINTS ANNABEL PALMA AS DEPUTY COMMISSIONER OF STRATEGIC INITIATIVES AT THE DEPARTMENT OF SOCIAL SERVICES

Palma to focus on and expand community engagement initiatives and deepen community relationships across the five boroughs

  Mayor Bill de Blasio announced the appointment of Council Member Annabel Palma as Deputy Commissioner of Strategic Initiatives at the Department of Social Services (DSS). As a long-time Council Member representing the Bronx and the former Chairwoman of the Council’s General Welfare Committee, Palma brings a proven track record of engaging communities on social service issues. Building on her own personal experience as a young single mother, struggling to build a better life for her family, Palma worked tirelessly in the Council to make government more responsive to the needs of the community.

Palma will start in January 2018 and report to DSS Services Commissioner Steven Banks. Among other strategic initiatives to improve the lives of low-income families and individuals, Palma will work with and support Commissioner Banks, Department of Homeless Services Administrator Joslyn Carter and the entire leadership team at DSS to carry out the Mayor’s plan to transform the shelter system that has built up in a haphazard way over the past 30 years and implement the new borough-based approach to help more homeless New Yorkers get back on their feet, and ultimately transition out of shelter and back into housing in the community. She will also work with and support the Commissioner and Human Resources Administration Administrator Grace Bonilla and her team on other social services initiatives.

“For more than a decade, Annabel has worked day in and day out to help those in need, including those in her own backyard in the Bronx. I am thrilled to welcome Council Member Palma to the team and look forward to working together to ensure that New Yorkers most at risk of becoming homeless are provided the tools and opportunities to get back on their feet,” said Mayor Bill de Blasio.

“Councilmember Palma has spent years working and advocating for New Yorkers, and has dedicated her career towards making sure communities receive services and help in times of need” said Deputy Mayor for Health and Human Services Dr. Herminia Palacio. “We are thrilled to have Annabel on board to help us build on critical initiatives, including expanding legal services for tenants facing evictions and investing in prevention tools to help more New Yorkers avoid homelessness.”

“For many years, Annabel and I worked together on the front lines to address the needs of low-income children and adults, and I know first-hand her commitment to improving the provision of social services.  She is a perfect addition to our team, as we continue with our reform initiatives and implement the Mayor’s realistic plan to prevent and alleviate homelessness,” said Department of Social Services Commissioner Steven Banks.

“Homelessness exists in every community. I have spent over a decade helping homeless New Yorkers and based on my own experience know that homelessness is not a choice and can happen to anyone,” said Council Member Annabel Palma. “I am proud to join the Mayor and his team, playing an integral role in helping to change the perception of our homeless neighbors, while helping to carry out his plan to turn the tide on homelessness in our beloved city.”

“Council Member Annabel Palma’s personal experiences informed her desire to be a fierce advocate for the most vulnerable New Yorkers, and every day she brings with her that energy and motivation to improve the lives of others around her,” said City CouncilSpeaker Melissa Mark-Viverito. “She inspires all of us on the Council, and we have greatly enjoyed working with her to make our City a better place – especially for the homeless, women, and people of color. I wish her well in her next endeavor as Deputy Commissioner of Strategic Initiatives at the Department of Social Services.”

Earlier this year, the Mayor announced “Turning the Tide on Homelessness in New York City,” his borough-by-borough plan for addressing the challenge of homelessness, which affects every community across the five boroughs. To address and transform a shelter system that expanded in a haphazard way over the past four decades, the Mayor’s plan will completely end the use of all 360 cluster sites and hotel facilities citywide, while opening a smaller number of 90 new and more effective traditional shelters. This will reduce the number of Department of Homeless Services’ facilities by 45 percent across New York City and allow us to maintain a vacancy rate to ensure the flexibility we need to implement a more equitable, borough-based system that takes into account the individual needs of the children and adults we must shelter. The plan’s guiding principle is community and people first: giving homeless New Yorkers, who come from every community across the five boroughs, the opportunity to be sheltered closer to their home boroughs, support networks and anchors of life, including schools, jobs, healthcare, family, houses of worship, and communities they called home, in order to more quickly stabilize their lives. 

Assemblyman Mark Gjonaj & Senator Jeff Klein's - 5th Annual Halloween Parade & Party

The 5th Annual Gjonaj/Klein Halloween Parade stepped off Pelham Parkway at White Plains Road at 1:45 PM as scheduled. 

The parade goers led by State Senator Jeff Klein, Assemblyman Mark Gjonaj, White Plains Road BID Executive Director Joe Thompson, consisting of about 100 children and their parents marched to PS 105 on Brady Avenue several blocks from the starting point. As you will see in the photos below they marched down White Plains Road past the stores, turned left onto Brady Avenue, and then proceeded to PS 105 where everyone went inside to start to party.

Above - They marched down White Plains Road past the stores like Chase Bank, but there was no time to stop in any of the stores such as the Pizza Hut/Dunkin Donuts/Baskin Robbins - Below.  

Above - There wasn't even time to stop for a cup of Starbucks Coffee on White Plains Road.

Below - The marchers are on Brady Avenue one block from PS 105 now.

Above - PS 105 was having renovations to the outside, so the protective scaffolding provided the proper atmosphere as you entered the school.

Below - Inside there were treats, face painting, pumpkin face making, and music for the kids to enjoy.

Above - Water and other liquid refreshments, snacks, and candied apples. were available to be had.

Below - Each child was given a pumpkin.

Above - The children were given markers to draw on the pumpkins.

Below - The Pelham Parkway Neighborhood Association happily volunteered their time for the children's enjoyment. 

Above - State Senator Jeff Klein said a few words about Halloween safety for the children.

Below - Assemblyman Mark Gjonaj said it has been great partnering with Senator Klein on this and many other projects they do for the community. 

Above - Senator Klein and Assemblyman Gjonaj gave out goody bags to the children. While Below a staffer dressed as the Grim Reaper walks around.