Two Men Charged In Theft Of Over $2 Million In Stock Certificates From Deceased Manhattan Woman

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging STEPHEN DECKER and LUIS MERCADO with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft in connection with a scheme to steal more than $2 million in stock certificates from the apartment of a deceased Manhattan woman, and then use those stolen assets to attempt to purchase over $2 million worth of gold coins.  DECKER and MERCADO were arrested this morning in Manhattan.  The defendants will be presented before U.S. Magistrate Judge James L. Cott in Manhattan federal court this afternoon.  The case has been assigned to U.S. District Judge Lewis A. Kaplan.   

Acting Manhattan U.S. Attorney Joon H. Kim said:  “As alleged, these defendants preyed on a deceased New Yorker’s estate by stealing millions in stock certificates from her home.  Then, in an attempt to cover their tracks, the defendants allegedly sold the certificates and tried to purchase more than $2 million in gold coins so that the ill-gotten gains couldn’t be traced to them.  Thanks to the outstanding investigative work of the FBI, the defendants will now be held accountable for their brazen actions.”

FBI Assistant Director William F. Sweeney Jr. said:  “As alleged, when Decker and Mercado cashed out on stolen stock certificates, their right to ownership was nothing more than fool’s gold.  Not only did the certificates not belong to them, their rightful owner was an elderly deceased woman with no representatives to stake her claim.  Taking advantage of those who are powerless to defend themselves or their legacy has always been, and will always be, an inexcusable crime.”

According to the Indictment[1] unsealed today in federal court:

From March 2016 to February 2017, DECKER and MERCADO engaged in a scheme designed to steal over $2 million from a deceased Manhattan woman (the “Victim”).  As part of the scheme, DECKER and MERCADO stole stock certificates valued at over $2 million from the Victim’s Manhattan apartment after the Victim’s death in March 2016.  In August 2016, based on false representations made by DECKER and MERCADO, a financial institution (“Company-1”) opened a brokerage account (the “Account”) in the Victim’s name.  DECKER and MERCADO then deposited the stolen stock certificates into the Account.  In September 2016, based on additional false representations made by DECKER and MERCADO, Company-1 sold the shares in the brokerage account opened in the Victim’s name, resulting in a cash balance in the Account of more than $2 million.  DECKER and MERCADO then attempted to purchase over $2 million in gold coins using the assets in the Account.            

The Indictment charges DECKER, 59, of Secaucus, New Jersey, and MERCADO, 53, of Manhattan, New York, each with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two 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 outstanding investigative work of the FBI.

The charges contained in the Indictment 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 Indictment and the description of the Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.

Five Defendants Arrested In Bottle-Return Bust

Group Allegedly Used False Invoices and Kickbacks to Transform 5¢ Recycling Deposit Into Lucrative Fraud

  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”), Leon Hayward, Acting Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced that ELDAR RAKHAMIMOV, NASIM RAKHAMIMOV, VLADIMIR ZABRODIN, RUSLAN KADIROV, and JOSEPH FINNERAN were taken into federal custody today for participating in a scheme to defraud beverage bottling companies and the State of New York.  The defendants were presented this afternoon before U.S. Magistrate Judge James L. Cott.

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

From September 2016 to December 4, 2017, ELDAR RAKHAMIMOV, NASIM RAKHAMIMOV, ZABRODIN, KADIROV, and FINNERAN conspired to defraud bottling companies and the State of New York through a scheme involving recyclable containers.

The defendants’ scheme exploited recycling incentives created by New York State’s Returnable Container Act (the “RCA”).  The RCA created a $.05 deposit on bottled soft drinks, beer, and water sold in New York State to promote the recycling of bottles and cans by bottlers, beverage distributors, and container redemption centers.  Under the RCA, the first bottler, distributor, or dealer to collect the required deposits on beverage containers is required to reimburse the $.05 deposit to redeeming individuals or entities and to pay a handling fee of $.035 per empty beverage container redeemed by redemption centers.

ELDAR RAKHAMIMOV and NASIM RAKHAMIMOV managed a bottle collection company (“Company-1”) that focused on aggregating recyclable containers and delivering them, in exchange for payment, to redemption centers in the New York City area.  ELDAR RAKHAMIMOV and NASIM RAKHAMIMOV, along with ZABRODIN, KADIROV, and FINNERAN, worked together to falsely inflate the number of bottles delivered by Company-1 to induce redemption centers to overpay bottle deposits and handling fees to Company-1.

Using an assortment of deceptive techniques, ranging from doctored invoices to “redeeming” the same bottles twice to impermissibly collecting bottles from New Jersey to paying (or receiving) kickbacks, the defendants extracted hundreds of thousands of dollars from victim companies – and, ultimately, the State of New York.

ELDAR RAKHAMIMOV, 46, of Brooklyn, New York, NASIM RAKHAMIMOV, 46, of Brooklyn, New York, ZABRODIN, 32, of Staten Island, New York, KADIROV, 32, of Brooklyn, New York, and FINNERAN, 64, of Bay Shore, New York, are each charged with one count of conspiring to commit mail and wire fraud, which carries a maximum penalty of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.

Mr. Kim praised the outstanding work of the FBI, the CBP, and the NYPD for their investigative efforts and ongoing support and assistance with the case.

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 herein, constitute only allegations, and every fact described should be treated as an allegation. 

A.G. Schneiderman Statement On Concealed Carry Reciprocity Act

  New York Attorney General Eric T. Schneiderman released the following statement upon House passage of the Concealed Carry Reciprocity Act:

“Today, the House voted to strip New York law enforcement of their right to enforce common sense policies that keep New Yorkers safe from the scourge of gun violence. 

New York has some of the strongest gun laws in the country. This bill could return New York to the bad old days, by rolling back the protections that have reduced gun-related deaths in New York State to some of the lowest rates in the nation.

This lowest-common-denominator approach would undermine states’ basic responsibility to protect our communities – including by determining who may carry a concealed, loaded gun within our borders. It would risk the lives of our families and our law enforcement officers, while facilitating gun trafficking and promoting mass violence.

With each tragedy, we lament the loopholes in our federal gun laws. Today, the House just voted to create a huge new one.  

I urge the Senate to reject this disastrous legislation.”

This fall, Attorney General Schneiderman led a coalition of 17 Attorneys General in opposing the legislation.

Court Allows A.G. Schneiderman's Lawsuit Against Northern Leasing Systems, Inc. To Proceed

AG Sued Northern Leasing for Deceptive Business Practices, Abuse of Judicial Power for Trapping Small Businesses into Equipment Leases, Then Suing to Collect Payment 

NYS Supreme Court Denies Northern Leasing’s Motion to Dismiss AG’s Fraud Suit 

Schneiderman: These Fraudulent Tactics Will Not Be Tolerated in New York

  Attorney General Eric T. Schneiderman announced today that New York State Supreme Court Justice Lucy Billings has allowed his office’s lawsuit against Northern Leasing Systems, Inc. and related entities to proceed, finding that the lawsuit had adequately alleged that the companies engaged in fraud.

In April 2016, the Attorney General’s office filed a lawsuit against Northern Leasing Systems, Inc., a New York company, and several of its affiliated companies, as well as principal Jay Cohen a/k/a Ari Jay Cohen and others involved in Northern Leasing’s operations. The lawsuit alleges that Northern Leasing traps small businesses into never-ending lease agreements for over-priced credit card processing equipment and abused the judicial process by suing to collect on these leases in the Civil Court of the City of New York.

“This decision validates our efforts to take on those who deceive hard-working small business owners – and then abuse the court system to harass them with fraudulent and deceptive debt collection practices,” said Attorney General Schneiderman. “We’ll continue to move our lawsuit forward to make clear that these fraudulent tactics will not be tolerated in New York.”

Since 2010, Northern Leasing and its related entities have filed over 30,000 actions in New York County Civil Court and obtained over 19,000 default judgments. In 2014 and 2015, their filings accounted for over one fourth of the total general, commercial, and consumer debt filings in New York County Civil Court. From 2010 through 2015, Northern Leasing and related entities also generated the highest volume of complaints received by the Attorney General’s office. Over 95 percent of the small business owners sued by Northern Leasing do not reside in New York State, and many cannot afford to physically appear in New York or hire an attorney to represent them.  Deputy Chief Administrative Judge Fern A. Fisher, as a co-petitioner in the proceeding, was seeking to vacate default judgments obtained by fraud, misrepresentation or other illegal means.

The Court found that the Attorney General’s petition sufficiently alleged that Northern Leasing is engaged in fraudulent and illegal conduct. In particular, the Court found that lease provisions which might otherwise be enforceable – such as non-cancellation clauses, forum selection clauses allowing Northern Leasing to sue lessees in New York Civil Court, and agreements to accept service by mail – could be unconscionable and unenforceable in leases whose “formation is permeated with fraud” and where “lessees did not knowingly and freely give their consent to the leases’ terms.”

The Court also allowed claims seeking to dissolve Northern Leasing as a business to move forward and refused to dismiss Judge Fisher’s claims seeking to vacate thousands of default judgments received by Northern Leasing through its alleged abusive litigation practices. 

The Court additionally granted a motion by the New York City Bar Association to submit an amicus brief arguing that Northern Leasing should not be permitted to use the New York City Civil Court to collect on leases from around the country. The Bar Association’s brief described the harm done by Northern Leasing to lessees from around the country who must spend prohibitive amounts of money to defend against improper collections in New York City, as well as the impact of Northern Leasing’s large docket of collection cases on the limited resources of the court itself. The Court found that the Bar Association “presents the perspective of regular users of the New York City Civil Court . . . who are impacted by the deluge of thousands of collection actions that respondents commence in that court annually, which bear no connection to New York.”

In addition to Northern Leasing Systems, Inc., the Attorney General’s lawsuit named several other affiliated companies, including Leasing Finance Group LLC, MBF Leasing LLC, Lease Source-LSI, LLC a/k/a Lease Source, Inc., Golden Eagle Leasing LLC and Pushpin Holdings LLC.  The court dismissed the claims against Joseph I. Sussman, P.C., the law firm that represents Northern Leasing in New York City Civil Court, and its two lawyers, Joseph Sussman and Eliyahu Babad. 

Consumers who believe they have been a victim of Northern Leasing’s deceptive practices are urged to file complaints online or call 1-800-771-7755.

For more information about the Attorney General’s lawsuit, please visit http://ag.ny.gov/NLFAQ.

A.G. Schneiderman Announces Convictions Of Ringleaders Of Multi-County Check Fraud Scheme

Kevin Singleton-Lee, Jerome Simpson, and Daniel Green Issued Over $175,000 in Fraudulent Checks as Part of a Scheme to Defraud Account Holders and Small Regional Credit Unions

Singleton-Lee Will Be Sentenced to 6 to 18 Years in State Prison; Simpson Was Previously Sentenced to 1 1/3 To 4 Years in State Prison

   Attorney General Eric T. Schneiderman announced the convictions of Kevin Singleton-Lee (a/k/a Kev Escobar), Jerome Simpson, and Daniel Green for their roles in a check-kiting scheme that spanned Onondaga, Schenectady, and Oneida Counties. A joint investigation conducted by the Attorney General’s Office and the New York State Police uncovered that ringleaders Singleton-Lee and Simpson, with the aid of Green, issued over $175,000 in fraudulent checks and used social media to recruit financially vulnerable individuals to cash the fake checks using their personal accounts, before emptying these accounts of all their assets.   

"We have zero tolerance for those who exploit financially vulnerable New Yorkers for their personal gain," said Attorney General Schneiderman. "We will continue to work with our law enforcement partners to bring fraudsters to justice and protect consumers from falling victim to these scams."

New York State Police Superintendent George P. Beach II said, “These convictions demonstrate that people who take advantage of vulnerable individuals and our financial institutions will be held accountable for their actions. I want to thank our partners at the Attorney General’s Office for their work to bring this case to a close and effort to help recover the funds that were taken.”

Between December 2015 and August 2017, Singleton-Lee, Simpson, and Green targeted over a dozen different branches of small, local or regional credit unions and banks throughout Central New York and the Capital Region, and recruited over 50 account holders to assist in their check-kiting scheme. During the almost two-year period, the defendants presented and cashed over 100 fraudulent checks, ranging in amounts from several hundred to several thousand dollars—totaling over $175,000.

To perpetuate their scheme, Singleton-Lee and Simpson first arranged for the creation of bank accounts in the names of businesses, which were often fictitious, including “Jones Maintenance” and “Watkins Homecare.”  Then,Singleton-Lee, Simpson, and Green—relying heavily on Facebook and other social media outlets—targeted numerous college students, young single parents, and other vulnerable and unsuspecting young adults, and recruited them to cash forged checks in the name of those businesses. In exchange for either cashing the forged checks or depositing them into their personal accounts, the account owners were promised a portion of the check proceeds as a fee. 

After the checks were deposited and funds became available, Singleton-Lee, Simpson, and Green drained the accounts of the available balances before the checks were returned and the financial institutions discovered them to be worthless. In some instances, the defendants even assumed the identities of the account holders without their knowledge and consent, accessed their accounts using personal information the defendants required for asserted security purposes, and withdrew funds through ATM transactions. 

Ringleader Singleton-Lee was charged separately in Onondaga and Oneida Counties. On November 4, 2016, Singleton-Lee pleaded guilty before the Honorable Anthony F. Aloi in Onondaga County to two counts of Grand Larceny in the Third Degree and one count of Identity Theft in the First Degree, all Class D felonies. On November 17, 2017, Singleton-Lee was sentenced by the Honorable Matthew J. Doran to 4 2/3 to 14 years in state prison, which consisted of consecutive terms of 2 1/3 to 7 years for his convictions for Grand Larceny in the Third Degree and a concurrent term of 1 to 3 years for his conviction for Identity Theft in the First Degree. Singleton-Lee was ordered to pay $100,000 as imposed by confessions of judgment.

Today, Singleton-Lee pleaded guilty in Oneida County Court to one count of Scheme to Defraud in the First Degree, a Class E felony, before the Honorable Robert L. Bauer. On February 6, 2018, Singleton-Lee will be sentenced to 1 1/3 to 4 years in state prison to run consecutive to his Onondaga County sentence, for a combined sentence of 6 to 18 years in state prison. Singleton-Lee will also be ordered to pay $26,874.27, as imposed by confessions of judgment. 

Simpson was previously convicted of one count of Grand Larceny in the Third Degree in Schenectady County Court. On November 20, 2017, Simpson was sentenced to 1 1/3 to 4 years in state prison by the Honorable Louise K. Sira and was ordered to repay $47,880.64 as imposed by confessions of judgment. 

Green was previously convicted of one count of Attempted Grand Larceny in the Third Degree, a Class E felony, in Onondaga County Court before the Honorable Anthony F. Aloi. On October 3, 2017, Green was sentenced by the Honorable Matthew J. Doran to time served and four years’ probation, and ordered to repay $9,900 as imposed by confessions of judgment. 

The Office of the Attorney General thanks the New York State Police Special Investigations Unit and Financial Crimes Unit, the Schenectady Police Department, the Saratoga County Sheriff’s Office, and the Utica Police Department for their invaluable assistance on this case.

Senator Jeff Klein announces $50,000 in funding for YMCA of Greater NY

Announcement made at The Bronx YMCA during Family Ties Program Holiday Cooking Class

Senator Jeff Klein announced $50,000 in state funding for the YMCA of Greater NY at The Bronx YMCA Family Ties Program Holiday Cooking Class last Friday night.

The funding will support the Family Ties Program, which is a community engagement program in which parents and their children take part in various activities, including dance, music, crafts and culinary arts.

“New York City’s YMCA is a storied organization that brings together our diverse populations to promote better health and well-being. I’m proud to secure $50,000 in funding for the Y, which will enable my constituents to come together and enjoy fun and engaging activities,” said Senator Jeff Klein.

“The funding for the Family Ties Programs allows this program to exist at the Bronx YMCA.  Family Ties promotes the well-being of children and families in the community through exercise, educational enrichment and healthy eating in a supportive and stable environment. This program also strengthens children and  families relationships and bonds through quality time spend together.  As we all know, strong families create strong communities,” said Sharlene Brown, Executive Director of Bronx YMCA.

Share some Holiday Fun with us at our last event of the year.

Early Bird Prices Extended to December 8th!

Phil Cardone

Events, Communications & Grants Director

Bronx Chamber of Commerce

"The Network for Business Success"
1200 Waters Place, Suite 106 Bronx, NY 10461
718-828-3900

BP DIAZ URGES BRONX RESIDENTS TO APPLY TO THEIR LOCAL COMMUNITY BOARD

  Bronx Borough President Ruben Diaz Jr. is inviting Bronx residents to consider joining their local Community Board. The Office of The Bronx Borough President will be accepting applications for all 12 Community Boards from city residents who reside, work or have professional or other significant interests in The Bronx.

 

“Participation on local Community Boards can provide Bronx residents with a forum to share with their community their expertise and talents,” stated Bronx Borough President Ruben Diaz Jr. “There are great things happening in The Bronx that involve the participation of community boards. It is important that community residents participate in the decisions that are building and revitalizing our borough, and our community boards are a great place to do so.”

 

In addition, Borough President Diaz is encouraging young people ages 16 and 17 to apply for community board membership. Presently, there are six high school students who have been appointed by the borough president to community boards, and Borough President Diaz is working to ensure that there is a least one youth member per community board.

 

“I believe that the earlier young people become engaged in community affairs and interact with government officials and agencies, the better they will understand government and become active leaders in their communities. It is important to hear the voices of our youth when planning for our neighborhoods,” said Borough President Diaz.

 

Applications are available online at http://bronxboropres.nyc.gov/community-boards/. Applications can also be picked up at any Bronx Community Board office, or by calling the Borough President’s Community Board department at (718) 590-3913.

 

The deadline for submission of applications for the next round of appointments isFebruary 9, 2018.