Friday, December 1, 2017

Recording Artist And Performer DMX Pleads Guilty In Manhattan Federal Court To Tax Fraud Violation


  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and James D. Robnett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that EARL SIMMONS, an internationally known recording artist, performer, and actor known professionally as “DMX” and “X,” pled guilty today in Manhattan federal court to one count of tax fraud for evading the payment of income taxes in the period from 2010 through 2016.  In total, during that time period, SIMMONS engaged in a scheme to conceal millions of dollars of income from the IRS and to avoid paying $1.7 million of tax liabilities.  SIMMONS pled guilty before U.S. District Judge Jed S. Rakoff.

Acting U.S. Attorney Joon H. Kim said:  “Today, Earl Simmons, the actor, producer and recording artist known as DMX, admitted to systematically cheating on his taxes.  By insisting to be paid in cash whenever possible and having royalty payments diverted to the accounts of financial surrogates, Simmons concealed hundreds of thousands of dollars of income from the IRS.  Today, Simmons made a choice between ‘Right or Wrong,’ and did the right thing, admitting his guilt, and agreeing to pay his tax liabilities.  No matter who you are or whatever fame you may have achieved, the law applies equally to all, and no one is exempt from the shared obligation to pay our taxes.”

IRS-CI Special Agent in Charge James D. Robnett said:  “Mr. Simmons skirted his responsibilities when he chose to ignore his duty to pay his taxes. We should not forget that the ultimate victims in tax fraud cases are the honest US taxpayers who file and pay their taxes. This guilty plea shows that IRS-Criminal Investigation is working to ensure all taxpayers file and pay their fair share.”

According to the Indictment and statements made at today’s plea proceeding:

SIMMONS, known professionally as “DMX” or “X,” worked as a recording artist, performer, and actor.  Beginning in 1997, SIMMONS released a series of hip-hop albums that sold millions of records.  Many of his albums went platinum and occupied the top positions on musical charts.  During his career, SIMMONS has performed at venues across the United States and around the world, and has acted in motion pictures.

As a result of the income SIMMONS earned from sources including musical recordings and performances, from 2002 through 2005 he incurred federal income tax liabilities of approximately $1.7 million.  Those liabilities went unpaid, and in 2005, the IRS began efforts to collect SIMMONS’s unpaid tax liabilities. 

During the period from 2010 through 2015, SIMMONS earned over $2.3 million, but SIMMONS did not file personal income tax returns during that time period.  Instead, he orchestrated a scheme to evade payment of his outstanding tax liabilities, largely by maintaining a cash lifestyle, avoiding the use of a personal bank account, and using the bank accounts of nominees, including his business managers, to pay personal expenses.  For example, SIMMONS received hundreds of thousands of dollars of royalty income from his music recordings.  SIMMONS caused that income to be deposited into the bank accounts of his managers, who then disbursed it to him in cash or used it to pay his personal expenses.  SIMMONS also participated in the “Celebrity Couples Therapy” television show in 2011 and 2012 and was paid $125,000 for his participation.  When taxes were withheld from the check for the first installment of that fee by the producer, SIMMONS refused to tape the remainder of the television show until the check was reissued without withholding taxes.

SIMMONS took other steps to conceal his income from the IRS and others, including by filing a false affidavit in U.S. Bankruptcy Court that listed his income as “unknown” for 2011 and 2012, and as $10,000 for 2013.  In fact, SIMMONS received hundreds of thousands of dollars of income in each of those years.


SIMMONS, 46, of Yonkers, New York, faces a maximum sentence of five years in prison.  As part of his plea agreement, SIMMONS is also required to pay restitution to the IRS.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  SIMMONS is scheduled to be sentenced by Judge Rakoff on March 29, 2018, at 4:00 P.M.

Mr. Kim praised the work of the Internal Revenue Service, Criminal Investigation.

Dentist And Others Charged In Medicaid Health Care Fraud Scheme At Upper Manhattan Dental Clinic


  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Scott J. Lampert, the Special Agent in Charge of the New York Regional Office of the United States Department of Health and Human Services Office of Inspector General (“HHS-OIG”), announced the arrests of MEHMET DIKENGIL, ANNA JONES, and LUIS OMAR VARGAS for their participation in a scheme to defraud Medicaid of more than $400,000.  DIKENGIL, the owner of Dental Express Broadway, P.C., a dental clinic located in upper Manhattan, employed JONES, an officer manager, and VARGAS, an unlicensed dental provider, in furtherance of the health care fraud, which involved billing Medicaid for dental services that were not provided to patients.  DIKENGIL and VARGAS were arrested this morning in New Jersey.  JONES was arrested this morning in Queens, New York.  The defendants will be presented later today in Manhattan federal court before Chief Magistrate Judge Debra Freeman.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “As alleged, these defendants, including a licensed dentist, defrauded Medicaid time and again by billing for services that were never provided.  Together with our law enforcement partners, we will aggressively prosecute those who defraud federal programs that provide care for low income New Yorkers.”

HHS-OIG Special Agent-in-Charge Scott J. Lampert:  “Health providers, including an unqualified ‘dentist,’ allegedly siphoned money from the vital Medicaid program to pay for services not needed or never delivered. Patients and taxpayers need to know that suspected government health program fraud will be investigated and prosecuted.”    
According to the Complaint[1] unsealed in federal court:

From at least January 2017, up to and including November 2017, DIKENGIL, a licensed dentist and owner of Dental Express Broadway, P.C. (the “Dental Clinic”), JONES, the office manager at the Dental Clinic, and VARGAS, an unlicensed dental provider at the Dental Clinic, engaged in a health care fraud conspiracy.  In furtherance of the fraud, the defendants submitted numerous reimbursement claims to Medicaid for having provided Medicaid patients with dental services, when, in fact, they did not provide such services.  Patients were recruited to the Dental Clinic where they were paid kickbacks of $25 to undergo minimal dental procedures.  The Dental Clinic then billed Medicaid for any dental services provided to the patients, as well as for additional dental services that were not provided.  In addition, VARGAS, although not licensed as a dentist, performed dental work and then billed Medicaid under DIKENGIL’s name.  In total, the Dental Clinic submitted fraudulent Medicaid claims totaling more than $400,000.

The Complaint charges MEHMET DIKENGIL, 69, of Chester, New Jersey, ANNA JONES, 59, of Queens, New York, and LUIS OMAR VARGAS, 45, of Roselle, New Jersey, with conspiracy to commit health care fraud and health care fraud.  The maximum sentence on each count is 10 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 defendants will be determined by the judge.

Mr. Kim praised the investigative work of HHS-OIG.  Mr. Kim also thanked the New York City Human Resources Administration for their assistance during the investigation.

The charges contained in the Complaint are merely accusations, and the defendants are 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 below constitute only allegations and every fact described should be treated as an allegation.

NYPD Officer Charged With Narcotics, Weapons, Fraud, Identity Theft, And Counterfeit Currency Offenses


  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Police Commissioner of the City of New York (“NYPD”), announced the unsealing of a criminal complaint charging REYNALDO LOPEZ with attempting to traffic narcotics and using a firearm in furtherance of that offense, access device fraud, conspiracy to commit access device fraud, aggravated identity theft, and passing counterfeit obligations.  LOPEZ is a police officer with the NYPD, assigned to the Anti-Terrorism Unit in the Transit Bureau.  LOPEZ was presented yesterday before U.S. Magistrate Judge Debra Freeman.

Acting U.S. Attorney Joon H. Kim said:  “Reynaldo Lopez, a police officer sworn to serve and protect his community, instead allegedly engaged in a shocking crime spree.  Lopez allegedly attempted to traffic nearly three kilograms of heroin, stole people’s identities to create and use credit cards for his own use, and knowingly used counterfeit money.  Police officers who violate their oath and break the laws betray not only the public, but their fellow officers who have nobly committed themselves serving and protecting our communities.”

FBI Assistant Director William F. Sweeney Jr. said:  “The list of allegations Officer Lopez faces is troubling on many levels. Not only is Lopez accused of participating in a fraudulent credit card operation and a counterfeit money scheme, he’s also accused of misusing his position as a police officer to engage in the trafficking into our city of what he believed to be heroin.  The NYPD works diligently day in and day out to protect the public from those who engage in these types of crimes. As evidenced by the charges today, nobody is exempt from that practice.”

NYPD Police Commissioner James P. O'Neill said:  “Police officers are sworn to protect and serve the public.  As alleged, the defendant violated our oath, breaking the law, repeatedly, to traffic narcotics or steal others' identities.  Today he finds himself under arrest and charged criminally in federal court after eroding the trust we work on building every day with the public.”
According to the Complaint[1] unsealed today in Manhattan federal court:

LOPEZ is an NYPD police officer assigned to the Transit Bureau’s Anti-Terrorism Unit. 

On November 29, 2017, LOPEZ attempted to traffic approximately three kilograms of heroin from a location in New Jersey to the Bronx, New York.  LOPEZ agreed with another undercover police officer (“UC-2”) to transport what LOPEZ believed were three kilograms of heroin to a drug dealer located in the Bronx, New York, under LOPEZ’s protection as an NYPD police officer, and was arrested when he attempted to make the delivery.  LOPEZ also possessed a firearm in furtherance of this attempted narcotics trafficking.

From May 2017 to the present, LOPEZ engaged in a scheme to create and utilize fraudulent credit cards, including by using identity information stolen from his victims.  He was part of a counterfeit credit card operation whose participants used stolen or otherwise illicitly obtained personal identifying information to create fraudulent credit cards, and then used the fraudulent credit cards to purchase merchandise for themselves.  As part of his participation in these crimes, LOPEZ also possessed and used a device that applies electronic data to blank physical credit cards.
From October 2017 to the present, LOPEZ possessed, passed, and used counterfeit United States currency.  In multiple recorded conversations with an undercover NYPD officer (“UC-1”), LOPEZ discussed his possession of counterfeit money, stating that he previously had successfully used some of the counterfeit currency.  LOPEZ also showed UC-1 a stack of currency that LOPEZ claimed was counterfeit, and provided UC-1 with a counterfeit $100 bill.


LOPEZ, 26, of Brooklyn, New York, was arrested yesterday in the Bronx, New York.  LOPEZ is charged with one count of access device fraud, which carries a maximum sentence of 15 years in prison; one count of conspiracy to commit access device fraud, which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; one count of passing counterfeit obligations, which carries a maximum sentence of 20 years in prison; attempted possession of one kilogram and more of mixtures and substances containing heroin, which carries a mandatory minimum sentence of 10 years in prison and a maximum of life in prison; and firearms use, carrying, and possession in connection with a narcotics trafficking offense, which carries a mandatory sentence of five years in prison.

The statutory minimum, maximum, and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

Mr. Kim praised the FBI and the NYPD for their outstanding work on the investigation.  He added that the investigation is continuing.
 
[1] The charges contained in the Complaint are merely accusations, and LOPEZ is presumed innocent unless and until proven guilty.

NYC DEPARTMENT OF CORRECTION CAPTAIN INDICTED FOR ASSAULT ON RIKERS ISLAND INMATE; FOUR OFFICERS CHARGED WITH COVERUP


  Bronx District Attorney Darcel D. Clark and Department of Investigation Commissioner Mark G. Peters today announced the indictment of a New York City Department of Correction Captain for beating an 18-year-old inmate in a Rikers Island jail and four Correction Officers for aiding the captain in covering up the incident. 

  District Attorney Clark said, “A veteran, ranking member of the Department of Correction allegedly beat and kicked an inmate who had not assaulted him, and then enlisted his subordinates to file false reports to hide his crime. The culture of cover-up must end if we are to rid Rikers Island of violence. Any correction officer who conceals a crime to protect a fellow officer will be prosecuted to the fullest extent of the law.”

 Commissioner Peters said, “These correction officers allegedly engaged in the ultimate abuse of power: beating an inmate and doctoring forms to cover-up the crime. It’s a vicious and deceitful scenario we’ve seen too many times over the course of our years-long investigations of DOC. DOI thanks the Bronx District Attorney’s office for its continued partnership in this and many cases investigating violence and corruption on Rikers Island.” 

 District Attorney Clark said DOC Captain Sandy Arkhurst, 42, was indicted on second degree Assault and third-degree Assault; and Captain Arkhurst, Correction Officers John Penafiel, 29, Christopher Squillaro, 31, Orlando Rivera, 58, and Michael Nicholson, 42, were indicted on seven counts of first-degree Falsifying Business Records. They were arraigned today before Bronx Supreme Court Justice Robert Neary and bail was set at $10,000 for Captain Arkhurst and $5,000 for the officers. They are due back in court on February 28, 2018. If convicted on the top charge, Captain Arkhurst could face two to seven years in prison, and the other defendants could face up to 1 1/3 to four years in prison.

 According to the investigation, on June 3, 2016, the defendants, who are part of a DOC PROBE team, responded to the Eric M. Taylor Center where inmate Rodolfo Rodriguez, 18 years old at the time, was refusing to enter his housing area. CO Nicholson then peppersprayed Rodriguez, and cuffed the inmate’s hands behind his back. COs Nicholson, Penafiel and Squillaro then escorted Rodriguez to a shower area to wash off the pepper spray.

 According to the investigation, Captain Arkhurst allegedly hit Rodriguez using his fists and a wooden baton, and kicked the inmate. He suffered multiple bruises and several broken teeth. Audio of the incident captured Rodriguez screaming and saying “No…Chill.”

 The defendants filed DOC Use of Force reports that said Rodriguez banged his head on the wall, and that he attacked the Captain while trying to run out of the room, and other allegedly false statements.

 District Attorney Clark thanked DOI, specifically Assistant Inspector General Mercedes Bayon, under the supervision of Deputy Inspector General Whitney Ferguson, Associate Commissioner Paul Cronin, Deputy Commissioner/Chief of Investigations Michael Carroll and First Deputy Commissioner Lesley Brovner, as well as DOC Investigation Division Investigators Damon Storer and Santiago Cornejo for their assistance.

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

THE MAYOR’S PUBLIC ENGAGEMENT UNIT’S DECEMBER EVENTS SCHEDULE


  Throughout December, Mayor de Blasio’s Public Engagement Unit has events planned citywide to help New Yorkers access resources and information from the Tenant Support Unit, Home Support Unit, and GetCoveredNYC.

The Tenant Support Unit engages and provides assistance to New Yorkers who may be at risk of displacement or experiencing harassment in zip codes covered under the Human Resources Administration (HRA)’s Anti-Harassment Tenant Protection legal service funding. In addition, TSU proactively engages New Yorkers who may be eligible for the Department of Finance’s Rent Freeze benefits to assist them through the application process. Outreach specialists go door to door to inform tenants of their rights, identify any housing-related issues and connect them with a range of resources, such as anti-eviction legal assistance, to keep them in their homes. In addition, outreach specialists’ partner with elected officials and community groups to hold weekly office hours and attend local events.

The Home Support Unit partners with landlords and brokers to identify apartments for clients transitioning out of shelter with rental subsidies. HSU partners closely with the Human Resources Administration, the Department of Homeless Services (DHS), and community-based providers to match prospective tenants to apartments, coordinate viewings, and navigate landlords and brokers through the City’s leasing process. Specialists remain engaged with the landlord even after lease signing to ensure new tenants are supported and have access to resources that help them remain stably housed.

The Homebase Outreach Team proactively engages families at risk of entering shelter to connect them to Homebase, a homelessness prevention program that provides casework services and referrals to existing resources. Specialists make phone calls and attend community events to provide families at risk with information about the preventive services available in the community and, when appropriate, help them access those services, so they avoid entering shelter.

GetCoveredNYC is a city-wide initiative to enroll New Yorkers in health insurance and provide them with access to primary and preventive care at NYC Health and Hospitals. The initiative is a partnership between NYC Health and Hospitals, Department of Health and Mental Hygiene, Human Resources Administration and MetroPlus.  The initiative includes a robust team of outreach specialists, who proactively go door to door and call uninsured New Yorkers to discuss their health insurance options, schedule them for free in-person enrollment assistance and case manage them through the enrollment process. In addition, the initiative launched a city-wide paid media campaign to promote the importance of coverage and how New Yorkers can receive free in-person enrollment assistance – including calling 311 or texting CoveredNYC to 877877.

For more information on these initiatives, New Yorkers can call 311 or visit nyc.gov.

The Bronx

December 1, 6, 8, 13, 15
10:00 A.M. – 12:00 P.M.
Davidson Community Center- Food Pantry
(Home Support Unit)

December 1, 15
10:30 A.M. – 1:30 P.M.
New York Public Library- Bronx Library Center Branch
610 E 186th Street
Bronx, NY 10458
(Tenant Support Unit)

December 5
11:00 A.M. – 2:00 P.M.
Bronxworks Heights Senior Center
200 West Tremont Avenue
(Tenant Support Unit)

December 5, 12
10:00 A.M. – 12:00 P.M.
Food Pantry at Highbridge
(Home Support Unit)

December 6, 20
10:30 A.M. – 1:00 P.M.
New York Public Library- Kingsbridge Branch
291 W 231st Street
Bronx, NY 10463
(Tenant Support Unit)

December 6, 13, 20, 27 (Weekly on Wednesdays)
11:00 A.M. – 3:00 P.M.
Assembly Member Blake’s Office
(GetCoveredNYC)

December 9
10:00 A.M. – 2:00 P.M.
North Central Bronx Hospital
(GetCoveredNYC)

December 13
2:00 P.M. – 4:00 P.M.
DOF: Council Member Cohen Enrollment
Emerald Isle Immigration Center
(Tenant Support Unit)

December 14
11:00 A.M. – 6:00 P.M.
UNHP Refuge House
(Tenant Support Unit)

December 14
3:00 P.M. – 6:00 P.M.
DOF: Assembly Member Joyner Rent Freeze Clinic
(Tenant Support Unit)

December 15
10:30 A.M. – 1:00 P.M.
Evelyn Place Senior Center
(Tenant Support Unit)

December 19
2:00 P.M. – 5:00 P.M.
DOF: Council Member Cabrera Enrollment
(Tenant Support Unit)

REPRESENTATIVE ADRIANO ESPAILLAT MARKS WORLD AIDS DAY


Today, Representative Adriano Espaillat (NY-13) marked December 1st as World AIDS Day and recommitted to addressing the global HIV/AIDS epidemic.

“The AIDS epidemic is a public health crisis that affects every community,” said Rep. Adriano Espaillat (NY-13). “But despite the tragic toll of this disease, we are making historic progress to halt this epidemic in its tracks. U.S. initiatives like the President’s Emergency Plan for AIDS Relief (PEPFAR), the Global Fund for AIDS, Tuberculosis and Malaria, and the Ryan White AIDS Program have saved millions of lives around the world and here at home.

“We cannot afford to backslide on our commitments to ending this public health emergency. Despite the tremendous gains we’ve made in prevention and treatment of HIV/AIDS, more than 36 million people worldwide are living with the illness. In the United States, more than a million people are living with HIV – and one out of every seven HIV-positive Americans don’t know that they’ve been infected.

“The United Nations believes we can achieve an AIDS-free generation by 2030, but that requires action to address the persistent gaps in education and care. On World AIDS Day and every day, I am committed to saving lives and protecting critical public health programs.”

The theme for World AIDS Day 2017 is “Increasing Impact through Transparency, Accountability, and Partnerships.” To find an HIV testing site near you, click here.


First elected to Congress in 2016, Rep. Adriano Espaillat is serving his first term in Congress where he serves as a member of the influential U.S. House Foreign Affairs Committee, the House Committee on Education and the Workforce, and the House Select Committee on Small Business.  He is a member of the Congressional Hispanic Caucus (CHC) and serves in a leadership role as CHC Freshman Representative to the Democratic Caucus. He is also chairman of the CHC Task Force for Transportation, Infrastructure and Housing.  Rep. Espaillat’s Congressional District includes Harlem, East Harlem, northern Manhattan and the north-west Bronx. To find out more about Rep. Espaillat, visit online athttps://espaillat.house.gov/.

ENGEL STATEMENT ON FLYNN GUILTY PLEAS


  Representative Eliot L. Engel, Ranking Member of the House Committee on Foreign Affairs, today made the following statement:

“Today, Special Counsel Robert Mueller announced that General Michael Flynn, Donald Trump’s short-lived National Security Advisor, pleaded guilty to the felony of lying to the FBI about a conversation he had with the Russian Ambassador last December.  I know that every American understands the gravity of today’s guilty plea, as this sad parade of indictments slowly makes its way through Trump’s inner circle.

“Yet, far too many questions still remain unanswered about the Trump Russia Scandal, such as who was involved with instructing Flynn to speak with the Russians directly, about what, and why.  Frankly, it seems that more evidence is uncovered every day about collusion between the Trump campaign and the Kremlin, and I’m glad that Special Counsel Mueller is investigating these very serious allegations.”

Applebee's presents Dinner and a Movie: "Elf" | Sunday | December 17, 2017 | 5:00-7:30pm


Applebee's Movie Night presents "Elf"