A.G. Schneiderman Announces Guilty Plea Of Brooklyn Real Estate Developer Daniel Melamed

Defendant Created Shell Corporations, Forged Letters To Defraud HUD And Financial Institutions From 2011 To 2014

Facing Trial, Daniel Melamed Pleads Guilty To 13-Count Indictment

Melamed Previously Found Guilty Of Unlawful Eviction Of Rent Stabilized Tenants Following A Separate Prosecution By A.G. Schneiderman

  Attorney General Eric T. Schneiderman announced that Brooklyn real estate developer Daniel Melamed pleaded guilty today in Kings County Supreme Court to a 13-count indictment, including Residential Mortgage Fraud in the Second Degree and two counts of Grand Larceny in the Second Degree, class C felonies; as well as four counts of Forgery in the Second Degree, four counts of Criminal Possession of a Forged Instrument in the Second Degree, and two counts of Attempted Grand Larceny in the Second Degree, all class D felonies. Melamed admitted under oath to engaging in various real estate schemes that defrauded banks and the United States Department of Housing and Urban Development (“HUD”) by creating shell corporations and forged letters to illegally purchase and/or sell multiple Brooklyn properties between 2011 and 2014. Today’s guilty plea follows charges brought by Attorney General Schneiderman in November 2016.

“Daniel Melamed stole money from taxpayers and cheated the public in order to boost his bottom line,” said Attorney General Schneiderman. “We have zero tolerance for landlords who try to game the system to line their own pockets — and we will use every tool at our disposal to bring them to justice.”

Specifically, in one scheme, Melamed, together with former co-defendants Carmen Morales and Abraham Perez, created and submitted false documents that purported to bolster Perez’s income and create the appearance that he intended to occupy 185 Hale Avenue in Brooklyn, which was a requirement of HUD in order to receive a loan from the federal agency. Perez was approved for his loan on the basis of those false submissions and, in less than two years, he defaulted. HUD, which is taxpayer funded, paid over $480,000 to cover the loss.

In a second scheme, Melamed and former co-defendant David Soufeh recruited individuals who were in foreclosure with the promise of relief from mortgage debt and cash under the table. To facilitate this illegal transaction, Melamed and Soufeh, together with former co-defendant’s Curt Joseph and Denise Morales, created and submitted numerous false documents. Melamed admitted that he and Denise Morales created multiple forgeries by cutting and pasting the signatures of bank employees and letterhead from certain banks onto false proof of funds letters. Melamed, through a fraudulent corporation, purportedly owned by Denise Morales, illegally purchased one of these properties for $250,000 in 2013 and sold it a year later for $1,250,000.

Finally, in a third scheme, Daniel Melamed, together with former co-defendants Denise Morales and Christopher Magliocca, attempted to deceive JP Morgan Chase into approving a short sale of a property owned by Melamed’s mother to a corporation controlled by Melamed. 

Melamed entered his guilty plea before State Supreme Court Justice Danny Chun. He is scheduled to be sentenced by Justice Chun on January 25, 2018.

Melamed was previously found guilty in June 2017 of three counts of Unlawful Eviction of rent-stabilized tenants following a bench trial before Justice Chun. The June 2015 arrest of Melamed in that case was the first resulting from the Tenant Harassment Prevention Task Force. Sentencing in that case is also scheduled for January 25, 2018.

Senator Jeff Klein submits over 1,000 signatures to city to save Columbus Statue

Signatures were presented to the city’s commision reviewing public art at Monday’s public hearing in The Bronx

Over 1,000 signatures from a petition drive led by Senator Jeff Klein to save the Columbus Statue were submitted to city’s commission reviewing public art at their Bronx public hearing Monday morning. A host of elected officials, including Senator Diane Savino, and Assemblyman Mark Gjonaj, kicked off the petition drive last month at the Morris Park Columbus Day Parade.

Community leader Joanne Rubino handed in the signatures on behalf of the elected officials while testifying in favor of saving the Columbus Statue at the public hearing at Bronx Borough Hall. The final public hearing will take place tomorrow in Staten Island.

“It is offensive to tear down an important part of Italian-American history in New York City and we will not stand for it. The statue of Christopher Columbus represents the Italian immigrants’ voyage to New York City at a time when the group faced rampant discrimination. Today we sent a strong message to the city that the Columbus Statue must stay,” said Senator Klein.

"The statue does not represent the explorer, it represents the experience of the Italian immigrant. Italians stretch from every corner of New York State, and I applaud the countless individuals who have also stepped up to voice their opposition to potentially removing the Columbus Statue,” said Senator Savino.

“The Columbus Statue represents the many Italian-American immigrants who came to this country for a better life. I am proud to stand in opposition to the potential removal of the statue with so many other New York City residents. We will continue to fight so that this symbol stays standing for generations to come,” said Assemblyman Gjonaj.

Bronx Dems Annual Holiday Party!

BOROUGH PRESIDENT DIAZ ISSUES AFFIRMATIVE RECOMMENDATION ON JEROME AVE. ULURP

  Today, Bronx Borough President Ruben Diaz Jr. issued an affirmative recommendation with conditions for the proposed rezoning of Jerome Avenue, as part of his charter-mandated responsibilities in the Uniform Land Use Review Process (ULURP).

“The plan for the future of Jerome Avenue represents tremendous transformative potential for the entire Bronx. Whatever we do, we must ensure that this rezoning works for everyone, especially the tenants who currently call the affected neighborhoods home,” said Bronx Borough President Ruben Diaz Jr. “The commitments my office has negotiated with the administration will help do just that.”

The affirmative recommendation comes following negotiations between Borough President Diaz and the de Blasio Administration on several key items that will lead to greater tenant protections and affordability options within the Jerome Avenue corridor following its rezoning.

“The people of The Bronx are not opposed to improvements. In fact, we expect our fair share of community benefits. The residents who testified at my hearing last month asked for greater affordability, more significant tenant protections and assurances that this rezoning would work for everyone, including them. These commitments from the City are important steps towards those goals,” said Borough President Diaz.

The borough president added, “Now that this process is in the hands of the City Planning Commission and the City Council, I urge Council Members Vanessa Gibson and Fernando Cabrera to ensure that both the best possible agreement is negotiated with the administration and that the city keeps all of its commitments.”

The complete ULURP recommendation with list of commitments can be viewed at http://on.nyc.gov/2jsi7yb.

COUNCIL MEMBER WILLIAMS UNVEILS ' NEXT CHAPTER FOR NEW YORK CITY'

As part of his ongoing bid to become the next Speaker of the New York City Council, Council Member Jumaane Williams, Deputy Leader, today released a far-reaching plan outlining the 'Next Chapter for New York City,' with the stated goal of improving life for all New Yorkers.

The plan, which was developed over months of ongoing conversations with his fellow Council Members, provides a blueprint for  specific institutional reforms for the City Council itself, as well as an overall vision for the City that would be achievable in the next four years with Speaker Williams leading an empowered, progressive, streamlined City Council in City Hall. 

"I want to build upon the gains of our current Speaker and continue to bring a brand of progressive government to our City that has so far enacted transformational change. Therefore, I am presenting the following proposals... as a conversation starter." said Williams of the plan. 

For the city, Williams proposes a 'New Deal' for New York, a series of progressive policy proposals that support a positive progressive vision for the city.  The New Deal calls for expanded infrastructure investment to rebuild New York in a number of areas. It also places focus on empowering and preparing youth in city, expanding summer youth employment and apprenticeship programs, and offering free SAT Prep courses and tuition to CUNY community colleges.

Williams also advocates for further development and implementation of the Crisis Management System, a program championed by the Council Member, with proven results of making the city safer in targeted areas. Says Williams, "Our City needs to reconstruct communities in crisis, and a holistic cure is the only answer." 

Additional proposals for City across all boroughs include a review of NYPD practices in encounters with the mentally ill, public transportation solutions such as implementing a Fair Fare Metrocard subsidization program, addressing the opioid epidemic, and combatting school overcrowding, among others.

For the Council, Williams outlines a number of reforms with broad support from the body. He advocates reforms in the process of bill drafting and introduction, promoting transparency and empowering individual members with newfound freedom. A number of committee reforms are proposed, including a reduction in overall number of committees to allow for greater focus on substantive issues and providing those committees with greater resources. Additionally, the Council would see its oversight role expanded. In order to ensure that an independent City Council can provide a strong check against the executive, and to enable members to more effectively serve their communities, Council Member Williams calls for a referendum vote to institute a three-term limit for Council Members. This measure would not impact Council Member Williams himself, who will begin serving his final term next year. 

The plan also highlights some budget priorities, including the expansion of Participatory Budgeting, an initiative on which Council Member Williams has been a leading voice. As Council Member Williams would be the first black Speaker of the City Council, he recognizes the immediate need for diversity in city government, and calls for diversity of voices in leadership roles in the Council as well as creating a program to encourage women to enter governmental roles, a necessity as the body becomes even more overwhelmingly male. 

Williams says that the plan has thus far seen overwhelmingly positive reception by his fellow Council Members, who will vote for the next Speaker in January of 2018. The plan, he says, is currently being supplemented and revised to most meaningfully address the concerns of the Council Members and the communities they serve. The plan can be read here.

EDITOR'S NOTE:

  

  It did not take long for the new after term-limited City Council to come up with a scheme for a third term going from eight years in office to twelve years or more depending if there was a special election.

  When term limits were instituted I called for a term limit of five two year terms. That would hold council members accountable every two years, and that way it would meet certain council members requests who said that they needed ten years in office to qualify for a pension. 

  This attempt by the current city council should not be allowed, as the voters saw it before when former Mayor Bloomberg changed the term limit law so he could have a third term. Enough is Enough. Make it five two year terms or leave it alone. 

STATEMENT FROM STATE SENATOR GUSTAVO RIVERA ADDRESSING THE LEAD PAINT CRISIS AND MAJOR SYSTEMIC CAPITAL NEEDS FACED BY THE NEW YORK CITY HOUSING AUTHORITY

  All threats to the health and well-being of the more than 600,000 residents of the 326 public housing developments operated by the New York City Housing Authority (NYCHA) across the five boroughs are unacceptable. As the Ranking Member of the Senate Health Committee, as a New Yorker, and as the representative for 90 NYCHA buildings in my district, it is alarming that NYCHA not only neglected to inspect 55,000 units for lead paint, but also misrepresented its efforts to pass compliance.

While appointing an independent monitor to oversee NYCHA's activities is justifiable, particularly under the current circumstances, addressing the major systemic capital needs affecting a vast number of NYCHA buildings is the best and most responsible way to help NYCHA residents. Infrastructure neglect, due to decades of decreased funding, has caused pervasive mold, leaking fixtures and walls, recurrent heat and hot water outages, deficient appliances, warped flooring, chipping paint, cracked plaster, and failing ventilation systems in too many NYCHA units. Rehabilitating and retrofitting this critical housing stock should be at the core of our efforts and is the most urgent task. My office has assisted many NYCHA residents to address these issues, by holding NYCHA accountable and helping tenants have their days in court to rectify unhealthy and hazardous repair needs. However, NYCHA will not be able to address the pervasive root causes and make lasting progress without proper funding.

With NYCHA suffering from a $17 billion capital shortfall and with further federal budget cuts looming, I strongly believe that New York State needs to reevaluate its fiscal commitment to the Authority and adequately allocate funding in order for NYCHA to address these hazardous health conditions. The allocation of $200 million in last year's budget while important, is not nearly enough to scratch the surface of the problem.

Therefore, I call on our State's Legislature to act on the Senate Democratic Conference's SFY 2017-2018 proposed budgetary recommendations for NYCHA asking for the following:

* Add $1.5B for a NYCHA 5-year capital program to address rehabilitation and reconstruction of its aging infrastructure and begin paying down its $16B capital backlog. This program should aspire to be a dollar-to-dollar match between New York's City and State aid.

* The state should immediately disburse any unspent funds appropriated in previous budgets.

The need to address hazardous health conditions and to increase accountability within the Authority does not end here. We will continue to closely monitor NYCHA's plans and progress to ensure that NYCHA residents are protected. The health and safety of my constituents will always be my first priority.

EDITOR'S NOTE:

  I applaud State Senator Gustavo Rivera's statement, but it is a little late and BILLIONS of dollars short. When I published that NYCHA residents were waiting over five years for replacement stoves and refrigerators that were not being given to them by NYCHA, but by state legislators, State Senator Gustavo Rivera was no where to be seen or heard. 

  When I asked Mayor Bill de Blasio why NYCHA residents had to wait over five years for replacement stoves and refrigerators, the mayor dodged the question, and said that NYCHA needed $18 BILLION dollars to bring it up to par. The mayor said that New York State and the federal government had not done their share to help keep NYCHA up to par. 

  Senator Gustavo Rivera - Where have you been since getting elected, certainly not near any NYCHA building?

STATEMENT FROM COUNCIL MEMBER ANDY KING REGARDING TRIAL DATE SET FOR NYPD SGT WHO FATALLY SHOT BRONX WOMAN IN 2016

   “Every other year a police officer kills a black person in a black community.  I am convinced that Deborah Danner, a senior wielding a baseball bat, could have and should have been restrained, not killed.  If this individual was not a police officer, this individual would be charged with murder even if someone had a baseball bat.  Justice must prevail and these officers must go to jail. Yes, we need better training for these officers but that doesn't discount the need for real accountability,” said Council Member Andy King, 12th Council District. 

Acting Manhattan U.S. Attorney Announces Conviction Of Frank Mercedes On Murder Charges

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that FRANK MERCEDES was found guilty yesterday of murder in connection with a drug conspiracy, murder-for-hire, murder-for-hire conspiracy, and use of a firearm resulting in death, for his role in the murder of Richard Diaz, 28, in Manhattan in 1999.  MERCEDES was convicted after a one-week jury trial before U.S. District Judge Richard J. Sullivan. 

Acting U.S. Attorney Joon H. Kim said: “Thanks to the work of dedicated agents, detectives, and prosecutors who relentlessly pursued justice, the cold-case murder of an innocent 28-year-old man has been solved after more than 18 years.  We hope the verdict brings some measure of peace to Richard Diaz’s family.” 

   

According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:

FRANK MERCEDES, a/k/a “Jabao,” ran a significant drug enterprise in Upper Manhattan in the late 1990s.  In the summer of 1999, MERCEDES hired three men, including Jose Luis Gracesqui, a/k/a “Muffler,” to kill one of his drug customers (the “Intended Victim”) after the Intended Victim and a number of his associates stole heroin from MERCEDES.

On the night of July 19, 1999, Gracesqui and a member of his crew saw the Intended Victim in a car with Richard Diaz and began following them through Manhattan.  When the car with the Intended Victim stopped at a red light, Gracesqui got out of the car that he had been in, approached the car with the Intended Victim, and began shooting.  The shots hit both the Intended Victim and the driver of the car, Richard Diaz.  Diaz was able to drive a short distance to the Henry Hudson Parkway, until he lost consciousness and died.  The Intended Victim sustained injuries but survived.   Shortly thereafter, MERCEDES met with Gracesqui and the other members of the hit team to pay them tens of thousands of dollars in exchange for committing the murder. 

MERCEDES, 51, from the Dominican Republic, faces a mandatory minimum sentence of life in prison.  MERCEDES is scheduled to be sentenced on April 4, 2018, before Judge Sullivan. 

Gracesqui was previously convicted in January 2016 of charges relating to his role in the murder of Richard Diaz, and is currently serving a life sentence. 

Mr. Kim praised the investigative work of the U.S. Drug Enforcement Administration (DEA) New York Drug Enforcement Task Force, which is comprised of agents, detectives and investigators from the DEA, the New York City Police Department and the New York State Police.  Mr. Kim also thanked the NYPD.