Monday, December 11, 2017

EXPLOSION AT PORT AUTHORITY BUS TERMINAL Information Session


Police Commissioner James P. O’Neill: At 7:20 am, approximately, 7:20 am this morning, we had terror related incident in the subway, in the passageway between 42nd and Eight, and 42nd and Seventh. The Governor is going to speak. The Mayor is going to speak. I’m going to give you some more details.

Governor Andrew Cuomo: Thank you, good morning to everyone. The first news this morning was obviously very frightening and disturbing. When you hear about a bomb in the subway station, which is in many ways one of our worst nightmares, the reality turns out better than the initial expectation and fear.

You had a number of law enforcement agencies that did a fantastic job. The NYPD, the PAPD, the Port Authority Police, the MTA Police, they were all on it. You see behind us representatives of all the agencies coordinated. The Assistant Director of the FBI, Bill Sweeney, is here. So everyone worked together.

There was an explosion. The Police Commissioner will go over the details. It was a minor – it was an effectively low tech device. There were several injuries, we hope minor, and it was handled extraordinarily well. There was a disruption in train service and bus service while a sweep was being done, that’s all being restored now, as you will hear from Joh Lhota. The subway station – subway service, except at 42nd Street is being restored. The Port Authority Bus Terminal is re-opened, so buses will be running once again.

This is New York. The reality is that we are a target by many who would like to make a statement against democracy, against freedom. We are the Statue of Liberty in our harbor. And that makes us an international target, we understand that. With the internet now, anyone can go on the internet, and download garbage and vileness on how to put together an amateur level explosive device, and that is a reality that we live with. The counter-reality is that this is New York, and we all pitch together, and we are a savvy people, and we keep our eyes open. And that’s what see something, say something is all about. And we have the best law enforcement on the globe. And we are all working together extraordinarily well. 

I want to thank the Mayor and the Mayor’s Office for doing a great job this morning and we will go forward, and we will go forward together. All the service will resume. Let’s go back to work. We are not going to allow them to disrupt us. That’s exactly what they want and that is exactly what they’re not going to get. 

Mayor Bill de Blasio: Thank you very much Governor. Let’s be clear, as New Yorkers, our lives revolve around the subways. When we hear of an attack on the subway, it’s incredibly unsettling. And let’s be also clear, this was attempted terrorist attack. Thank God the perpetrator did not achieve his ultimate goals. Thank God our first responders were there so quickly to address the situation, to make sure people were safe. Thank God the only injuries, that we know at this point, were minor.

But I agree 100 percent with the Governor’s point. The choice of New York is always for a reason. Because we’re beacons to the world and we actually show that society of many faiths and many backgrounds can work, and we showed that democracy can work. And our enemies want to undermine that, the terrorist want to undermine that, so they yearn to attack New York City. But New York City is blessed with the finest law enforcement, and what our first responders did today was another example the ability to assess a situation quickly, contain it, and make sure people are safe.

Let me just say, it’s very important for my fellow New Yorkers to know. There are no additional known instance at this time, there are no additional known activities. We will wait for a fuller investigation, of course, by the NYPD, the MTA police, the Port Authority police, and the FBI, but at this point in time, all we know of is one individual, who thank God was unsuccessful in his aims. There are also no credible and specific threats against New York City at this time. But we will give you more information, of course, as the investigation unfolds.

The first responders responded brilliantly. Now the mission of the NYPD is to secure all major transit hubs and major sites in this city. So you will see expanded NYPD presence today all over the city. New Yorkers have come to understand when you see our specialized forces, when you see those long guns, and those highly trained officers, that’s something that should be reassuring to you. That means that the NYPD is on full alert and out in force and that means you are safe. 

Finally I want to say, the Governor invoked that phrase, we can’t say it enough times, when you see something, say something. This is the difference maker. We’ve seen it time and again. When an everyday New Yorker sees something that doesn’t make sense, hears something, sees a package, gets a feeling that something’s wrong. Don’t hold it yourself, tell a police officer. They are the ones who can take the information and act on it. It is so important to speak up because you could be saving many lives by doing so.

I’ll finish by saying this. This is most resilient place on Earth, we’ve proven it time and time again. We’ve proved it just over a month ago. We proved it on 9/11. We are going to prove it again today. The terrorists will not win, we are going keep being New Yorkers. Let’s get back to work. Thank you.

Commissioner O’Neill: Alright these are the preliminary facts. So – just – it just happened a couple hours ago, so you have to understand these are preliminary facts. At approximately 7:20 am, at a below ground walkway, which connects the IND line at 4-2 and Eight Avenue with the IRT line at 4-2 and seven, and that’s the shuttle at Time Square and the 1,2,3 train.

Police were called to a reported explosion. Responding units found an injured 27-year-old male. We’ve identified him as Akayed Ullah, A-K-A-Y-E-D-U-L-L-A-H. He had burns and wounds to his body. Preliminary investigation at the scene indicates this male was wearing an improvised, low-tech explosive device attached to his body. He intentionally detonated that device. Looks like that there were three other people in the immediate area also sustain minor injuries, but Dan Nigro is going to talk about that. The subject was placed in custody and transported to Bellevue Hospital.

Immediate police response to the scene included members of the Transit Bureau, Emergency Service Decision, Bomb Squad, Counter-Terrorism, MTA Police, State Troopers, and the FBI’s Joint Terrorist Taskforce.  In addition, the NYPD Strategic Response Group and Critical Response Command, were assigned to other key transportation hubs and other locations throughout the city as a precautionary measure.

This incident was captured on transit system video. A further review and interviewing witnesses is under way, a thorough background investigation Akayed Ullah is being conducted by the Joint Terrorist Taskforce. We are asking anyone who may have any information about this individual or incident to call the terror headline, and that’s, 8-8-8-NYC-SAFE.

Just as the Governor said, and as the Mayor said, we are New Yorkers, we don’t live in fear. If you see something doesn’t look right ,you have an obligation to come forward, call 9-1-1, flag down a cop, and give us a chance to investigate it. 

Fire Commissioner Daniel Nigro:  As the Police Commissioner mentioned the perpetrator detonated the device, it caused burns to the hands and the abdomen, also lacerations. Our EMS personnel removed the perpetrator to Bellevue Hospital where they’re being treated now. Three other people that were in proximity of the explosion removed themselves. Two of them took themselves to Mt. Saini West, one to Mt. Saini Queens. All with minor injuries that are consistent with being in the area of the explosion. That is ringing in the ears and headaches. So we have three minor injuries to people that were in that corridor and serious injuries to the perpetrator.

MTA Chairman Joe Lhota: Thank you. As the Commissioners have both said, and the Mayor and the Governor have both said, earlier this morning we received an alert of the explosion that happened in the tunnel and immediately the MTA and the transit authority shut down the lines on the Eight Avenue line, the A, the C, the E. Many of them were rerouted. I will tell you right now, they are all back. The only disruption we have right now is that on both the Seventh Avenue line, as well as the Eighth Avenue line, we’re bypassing the Times Square-42nd Street corridor. And also the shuttle between Grand Central and Times Square is currently shut down. We expect it to be back up and normal by – by this evening’s rush hour.

I do want to also state that on November 6th, just a month or so ago, we had a tabletop exercise with the NYPD to coordinate our efforts in the event that something like this ever happened. And the result of that was today in less than two hours we are back totally up to speed and getting our passengers around. I want to especially thank, not only the NYPD, but also our passengers and our customers for their patience.

STATE SENATOR RUBEN DIAZ ANNOUNCES THE CELEBRATION OF CHRISTMAS IN THE BRONX


  State Senator Rev. Rubén Díaz, together with Mr. Edward Cox, President of the New York State Republican Party, Assemblyman Luis Sepulveda, Councilman Rafael Salamanca and the New York Hispanic Clergy Organization, will be celebrating Christmas in the Bronx, with free toys for children present.


The Christmas in the Bronx event, has been held for the past four consecutive years, and this year will take place, on Tuesday, December 19, at 4:00 PM in the Auditorium of the I.S. 131 Albert Einstein School located at 885 Bolton Avenue (Corner of Story Avenue & White Plains Road), in Bronx County.

The first 1,000 children who attend between the ages of 1 thru 9 will receive a free toy.

Note: Child must be present to receive a toy.

For more information, contact Senator Diaz's office at 718-991-3161.

Sunday, December 10, 2017

100 PERCENT Diaz Sr. Resigns


100 PERCENT
By Robert Press

Ruben Diaz Sr. Resigns

  State Senator Ruben Diaz Sr. has given State Senate Democratic Conference Leader Andrea Stewart-Cousins his resignation from the New York State Senate as of midnight December 31, 2017. The letter says nothing about the soon to be former senator's accomplishments, and asks that the 32nd State Senate office be kept open to serve the 50 to 60 constituents served daily over the past 15 years. In case you didn't know, Reverend Ruben Diaz Sr. was elected to be the new Councilman from the 18th City Council district replacing term limited Annabele Palma. 
  Diaz had said that he was going to stay on until the last minute possible, but has changed his mind in resigning at the last moment in 2017. That should force Governor Cuomo's hand to call a special election since not only had Diaz Sr. left the State Senate, but so will have Westchester County State Senator George Latimer from the 37th district. That would mean two less Democrats in the State Senate, and would give the Republicans control over the state senate, even if all Democrats were to come back to the Senate Democratic Conference. 
 There are a few Assembly seats that will also have to be filled by special election, and the 80th A.D. here in the Bronx is one where current Assemblyman Mark Gjonaj will become Councilman Mark Gjonaj beginning in January 2018. 
  Speaking of the 80th A.D. Soon to be former State Senator Ruben Diaz Sr. has sent out one of his famous 'What You Should Know' letters about a possible candidate in the special election for the 80th A. D. Is it that this candidate also lives in that part of the 80th A.D. that is in the 32nd State Senate district? Has Diaz Sr. learned from an old Amigo friend that if you are in an assembly district and also happen to be in a state senate district that you can play games to pick where you want to run? Is Diaz Sr. trying to have this person not run in the special election for the 32nd State Senate District, but run in the special election for the 80th A.D.? It seems that Assemblyman Luis Sepulveda has been fortunate that his friend Mayor Bill de Blasio took what would have been the possible next 32nd State Senator (as was originally planned) into the de Blasio administration. Is this other person who (I was told) just happens to work currently in the de Blasio administration going to be pushed into running against the former Chief of Staff for Assemblyman Gjonaj, who now happens to work for the Cuomo administration?  Let's throw in the fact that Jessica Ramos also of Mayor Bill de Blasio's administration has left her job to run against IDC State Senator Jose Peralta. Also IDC member Marisol Alcantara will be facing a challenge by former City Councilman Robert Jackson who should be supported by anti IDC forces. So much for peace in the Democratic State Senate. I have already told IDC Leader Jeff Klein it would be foolish to agree to dealing with those who pushed him to leaving the Senate Democratic Conference. As a constituent of Senator Jeff Klein I like the IDC and the way he has served his district, the Bronx, the city, and the state. 

  Upcoming events - 
Tuesday - December 12th 3:30 PM Bronx House Menorah Lighting 990 Pelham Parkway.
Wednesday - December 13th 10:00 AM Bronx Borough President Ruben Diaz Jr. lights the official Bronx Menorah at the Riverdale Y 5625 Arlington Avenue. 
Thursday December 14th - Bronx Democratic County Organization Christmas Party 6 PM Andrew Freedman House 1125 Grand Concourse, It's 'Ugly Sweater' night.
Friday December 22nd - TEAM DIAZ Christmas Party 7 - 12 PM Maestro's Caterers 1703 Bronxdale Avenue "BY INVITATION ONLY' 'NO CHILDREN'. 718-991 3161 for more information. 
Check the archive section on the left to read more about these upcoming events or other items.

If you have any comments about this column or would like to have an event listed or covered here, you can e-mail me at 100percentbronxnews@gmail.com or call 718-644-4199. 



Saturday, December 9, 2017

Real Estate Developers Sentenced In White Plains Federal Court For Conspiracy To Corrupt The Electoral Process In Bloomingburg


  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that SHALOM LAMM and KENNETH NAKDIMEN were sentenced for conspiracy to corrupt the electoral process, in connection with an election in Bloomingburg, New York.  LAMM was sentenced today to 10 months in prison.  NAKDIMEN was previously sentenced on September 15, 2017, to six months in prison.  Both defendants were sentenced by United States District Judge Vincent Briccetti in White Plains federal court. 

Acting U.S. Attorney Joon H. Kim stated:  “False and fraudulent voter registrations have no place in our democracy.  As the sentences imposed on Shalom Lamm and Kenneth Nakdimen show, those who try to undermine the integrity of our elections will be prosecuted and punished.”

According to the allegations contained in the Indictment, as well as statements made in related court filings and proceedings:

Starting in 2006, LAMM and NAKDIMEN, real estate developers, sought to build and sell real estate in Bloomingburg, New York.  From these real estate development projects, LAMM, NAKDIMEN, and others hoped for and anticipated making hundreds of millions of dollars.  But by late 2013, the first of their real estate developments had met local opposition, and still remained under construction and uninhabitable.  When met with resistance, rather than seek to advance their real estate development project through legitimate means, LAMM, NAKDIMEN, and others instead decided to corrupt the democratic electoral process in Bloomingburg by falsely registering voters and paying bribes for voters who would help elect public officials favorable to their project.

Specifically, in advance of an election in March 2014 for Mayor of Bloomingburg and other local officials, LAMM, NAKDIMEN, and others, and people working on their behalf, developed and worked on a plan to falsely register numerous people who were not entitled to register and vote in Bloomingburg because they actually lived elsewhere.  Those people included some who never intended to live in Bloomingburg, some who had never kept a home in Bloomingburg, and indeed, some who had never set foot in Bloomingburg.  LAMM, NAKDIMEN, and others took steps to cover up their scheme to register voters who did not actually live in Bloomingburg by, among other things, creating and back-dating false leases and placing items like toothbrushes and toothpaste in unoccupied apartments to make it seem as if the falsely registered voters lived there.

LAMM, NAKDIMEN, and others also bribed potential voters by offering payments, subsidies, and other items of value to get non-residents of Bloomingburg to register unlawfully and vote there. 
   
In addition to the prison terms, LAMM, 58, of Bloomingburg, New York, was sentenced to one year of supervised release, a $20,000 fine, and 400 hours of community service and NAKDIMEN, 64, of Monsey, New York, was also ordered to pay a $20,000 fine and 400 hours of community service.

Mr. Kim praised the outstanding investigative work of the FBI-Hudson Valley White Collar Crime Task Force, the Sullivan County District Attorney’s Office, the Sullivan County Sherriff’s Office, the Orange County Sheriff’s Office, the Orange County District Attorney’s Office, the Internal Revenue Service, and the United States Postal Inspection Service.  Mr. Kim also thanked the Department of Justice’s Public Integrity Section, Election Crimes Branch, for its assistance in the case.

Former Hoboken City Council President Sentenced To 30 Months In Prison For His Participation In A $7 Million Car Loan Scheme


  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that former Hoboken, New Jersey, City Council president and attorney CHRISTOPHER CAMPOS was sentenced in Manhattan federal court to 30 months in prison for fraudulently obtaining millions of dollars in car loans.  CAMPOS used approximately 20 straw buyers to purchase more than 200 new automobiles based on false representations that, among other things, the straw buyers would use the cars for their personal use when, in fact, CAMPOS and his co-conspirators obtained the vehicles in order to lease them as livery cabs.  After a week-long trial, CAMPOS was found guilty on June 22, 2017, of bank and wire fraud and conspiracy to commit bank and wire fraud.  U.S. District Judge Valerie E. Caproni presided over that trial and imposed today’s sentence.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “Christopher Campos, an attorney and former Hoboken City Council president, defrauded lenders out of millions of dollars.  He put up straw buyers to obtain loans for ‘personal use’ cars that in fact comprised a fleet of over 200 vehicles leased to livery drivers.  Campos has now received the significant sentence his crimes merit.”
           
According to the allegations contained in the Complaint, Indictment, and the evidence presented in Court during the trial:

Between approximately October 2012 and September 2013, CAMPOS and his co-conspirator Julio Alvarez, among others, orchestrated a scheme to fraudulently obtain new automobiles that they intended to lease to livery cab drivers.  In order to secure financing in connection with the purchase of these new cars, CAMPOS and other co-conspirators enlisted and aided individuals with good credit histories (“straw buyers”) to submit fraudulent car loan applications to numerous lenders.  In order to obtain the new vehicles, CAMPOS and other co-conspirators sent straw buyers to several car dealerships located throughout the New York City area, where dealership employees helped straw buyers submit fraudulent loan applications. 

The auto loan applications submitted by the straw buyers falsely represented that the vehicles would be used for the buyers’ personal use, rather than as part of the defendants’ leasing business.  In addition, in many cases, the car loan applications misrepresented personal information about the straw buyers, including their incomes and assets.  CAMPOS also caused financing applications to be sent to multiple financial institutions at the same time so that the lenders would not know that the straw buyers were incurring obligations to other lenders in connection with the purchase of multiple new automobiles.

In total, the scheme carried out by CAMPOS, Alvarez, and others involved approximately 20 straw buyers, the purchase of approximately 200 new vehicles, and ultimately resulted in lenders disbursing over $7,000,000 in fraudulently obtained car loans.  Most of those loans ultimately went into default.

Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation.  Mr. Kim also thanked the National Insurance Crime Bureau (“NICB”), the New York Automobile Insurance Plan (“NYAIP”), and the New York State Department of Motor Vehicles for their substantial assistance in the investigation and trial.

Operation Ghost Ride: A.G. Schneiderman Announces Sentencing Of Owner Of Albany Transportation Companies For Stealing Thousands In Medicaid Transit Scam


Percy Sanville, Jr., Owner of A&N Transportation, And Co-Owner of Ammediate Transport Submitted Bogus Medicaid Claims For Transportation Services
Sanville Sentenced to Two to Six Years in Prison
  Attorney General Eric T. Schneiderman announced the sentencing of Percy Sanville, Jr., 42, owner of A&N Transportation, and Co-Owner of Ammediate Transport upon his conviction of the crime of Grand Larceny in the Third Degree, a class D felony. Sanville was sentenced by Acting Supreme Court Justice Hon. Roger D. McDonough to two to six years in prison.
Sanville previously admitted that he submitted false claims to Medicaid for transportation for himself to physical therapy appointments between September 7, 2016 and November 30, 2016 that never occurred. Sanville’s business partner, Rafael Gonzalez also previously pled guilty to falsely billing Medicaid for transportation that never occurred.  Gonzalez is scheduled to be sentenced on January 5, 2018.
“The defendant and his business partner carried out an elaborate hoax to defraud Medicaid and exploit New Yorkers by billing Medicaid for transportation that never occurred,” said Attorney General Schneiderman. “Ghost rides result in costs being passed along to taxpayers, while undermining the vital services on which our most vulnerable depend. My office will not tolerate this behavior and will continue to bring scammers to justice.”
An undercover investigation conducted by the Attorney General’s Office, referred to as “Operation Ghost Ride,” revealed earlier this year that Sanville and Gonzalez stole over $50,000 from Medicaid by submitting fraudulent claims for transportation services that were never provided.

Operation Decoy Delivery: A.G. Schneiderman Announces Conviction After Trial Of Ringleader In Insurance Fraud Scheme


Defendant Jean Mythro Davilmar Convicted Of 29 Felony Counts for Massive Scheme to Defraud
Defendant Filed Forged And Falsified Documents To Fraudulently Obtain Commercial Insurance Policies For Over 100 Vehicles 
  Attorney General Eric T. Schneiderman announced the conviction after trial of Jean Mythro Davilmar, 68, of Brooklyn, NY for his participation in a massive scheme to fraudulently obtain commercial car insurance policies and New York State vehicle registrations. Over an eight-year period, the defendant and his co-conspirators fraudulently obtained thousands of dollars in discounted insurance policies for over 100 vehicles by registering the cars with fake companies including delivery services, prompting investigators to dub the case “Operation Decoy Delivery.” Davilmar and nine other co-conspirators filed forged and falsified documents with insurance carriers, the Kings County Supreme Court Clerk’s Office, and the New York State Department of Motor Vehicle (“DMV”). After a four-week trial, which included testimony from 26 witnesses and the admission of hundreds of documents, the Honorable Justice Danny Chun found the defendant guilty of 29 felony counts. 
“My office won’t hesitate to prosecute insurance fraudsters – no matter how complex or elaborate the scheme,” said Attorney General Schneiderman. “Automobile insurance fraud leads to higher insurance rates for hard-working New Yorkers, while jeopardizing public safety by allowing falsely registered and improperly insured vehicles to operate on our roads. Those plotting similar scams to undermine state agencies or defraud insurance providers should take note: we will hold you accountable.”
“Insurance fraud is a crime that results in higher premiums for law-abiding New Yorkers,” said New York State Department of Financial Services Superintendent Maria T. Vullo.  “This defendant allegedly deprived insurers of hundreds of thousands of dollars in premiums by engaging in an elaborate scheme that included falsifying and forging documents, lying about the purpose, locations and operators of vehicles, and using false addresses. DFS is proud to have assisted the New York State Office of the Attorney General in stopping this fraud and bringing this defendant to justice.”
“The National Insurance Crime Bureau applauds the staff of the New York State Attorney General’s Office for their continued efforts in combatting insurance fraud in New York,” said Kevin Gallagher, Regional Director of the Northeast Region of the National Insurance Crime Bureau. “The cost of insurance fraud is shared by all consumers.  Commercial premium fraud enables unscrupulous individuals and businesses to gain an unfair advantage over those who follow the law. This conviction sends a strong message to other individuals who may be contemplating engaging in insurance fraud. We look forward to our continued partnership with the Attorney General’s Office in fighting against insurance fraud for the benefit of all New Yorkers.”
The evidence at trial showed that between May 2006 and June 2014, Davilmar and his co-defendants engaged in a complex scheme to obtain commercial auto insurance for themselves and others in the names of fictitious business partnerships by submitting falsified documents and making false statements to multiple governmental agencies and insurance carriers.
The defendants created fictitious business partnerships by filing false documents with the Kings County Supreme Court Clerk’s Office. The defendants then fraudulently obtained commercial automobile insurance for multiple vehicles under the names of these fictitious business partnerships. In order to obtain lower premiums, on the applications for commercial insurance, the defendants falsely represented that the vehicles insured under the policies would be engaged in low-risk businesses such as delivery services, performing carpentry, or photography. To further lower premiums, defendants made additional misrepresentations including providing false pedigree information for purported members of the business partnerships, falsely stating the geographical location where the vehicles were operated and garaged, and misrepresenting the actual operators of the vehicles.
After fraudulently obtaining insurance for vehicles under commercial policies, the defendants submitted false registration and title applications to the DMV, registering the vehicles under the names of the fictitious partnerships. These DMV applications allegedly included forged signatures, false addresses, and fictitious individuals listed as the buyers and sellers of the vehicles. In support of their falsified registration and title applications, defendants also submitted copies of the fraudulently obtained insurance cards as proof that the vehicles had valid insurance in New York State, a prerequisite before the DMV could issue registrations and license plates. 
The evidence at trial further revealed that when a policy was canceled for nonpayment or because the defendants could not maintain the facade that the cars were being used in low-risk businesses, the defendants opened another policy with forged documents and transferred the cars onto the new policy.  
Ringleader Davilmar, who testified at trial, admitted to forming fake companies in order to obtain insurance policies for multiple vehicles. The evidence at trial showed that Davilmar created over a dozen fictitious business partnerships, including Florist Locomotion, Landscaping Express, Cleaners Express, Mybeda Express, Bedamy Express, and Damybe Express. Several of the company names were anagrams of the first two letters of the defendant’s middle and last name and his daughter Bettina’s name. Through the submission of fraudulent documents, including business certificates for these fake entities, Davilmar and his co-conspirators obtained over 20 commercial insurance policies for over 100 vehicles, with coverage limits of up to $50,000 per accident for each vehicle. On cross-examination, Davilmar admitted to repeatedly using the alias “Jean Claude Marcelin” on documents filed with the DMV, the Kings County Clerk’s Office, and multiple auto insurance carriers.
In Kings County Supreme Court, Judge Chun convicted Davilmar of two counts of Grand Larceny in the Third Degree (a Class D felony), 17 counts of Insurance Fraud in the Third Degree (a Class D felony), four counts of Offering a False Instrument for Filing in the First Degree (a Class E felony), five counts of Criminal Possession of a Forged Instrument in the Second Degree (a Class D felony), and one count of Scheme to Defraud in the First Degree (a Class E felony). Davilmar faces a maximum sentence of up to 10 to 20 years in prison. He is scheduled to be sentenced on January 10, 2018.
In addition to Davilmar, nine other defendants charged by the Attorney General for their participation in this scheme have pleaded guilty, including insurance brokers Thomas Kurian, John Grima, and Keith Ashman. Kurian pleaded guilty to Falsifying Business Records in the First Degree (a class E felony). Grima pleaded guilty to Criminal Facilitation in the Fourth Degree (a class A misdemeanor). Pierre pleaded guilty to Forgery in the Second Degree (a class D felony) and Bettina Confident pleaded guilty to Offering a False Instrument for Filing in the Second Degree (a class A misdemeanor).  
Additionally, the five co-defendants charged along with Davilmar in the Attorney General’s indictment pled guilty as follows: Joe Sainvilus Jr. pleaded guilty to Criminal Possession of a Forged Instrument in the Second Degree (a class D felony); Jessica Davilmar pleaded guilty to Scheme to Defraud in the First Degree (a class E felony); George M. Thomas pleaded guilty to Scheme to Defraud in the First Degree (a class E felony); Hermine Celestin pleaded guilty to Criminal Possession of a Forged Instrument in the Second Degree (a class A misdemeanor); and Keith M. Ashman pleaded guilty to Criminal Facilitation in the Fourth Degree (a class A misdemeanor). All nine defendants are awaiting sentence.
These arrests are the culmination of a long-term investigation conducted by Attorney General Schneiderman's Automobile Insurance Fraud Unit. The Attorney General thanks the Department of Financial Services, the DMV, the New York Automobile Insurance Plan and the National Insurance Crime Bureau for their valuable assistance in this case.  The Attorney General also thanks the New York City Marshal’s Office, Progressive Insurance Co., Maidstone Insurance Co., National General Insurance Co., Farm Family Casualty Insurance Co., Assigned Risk Solutions, American Transit Insurance Co., GEICO Insurance Co., Travelers Insurance Co. and the CARCO Group for their instrumental cooperation during this investigation. The Attorney General also thanks the King’s County Clerk’s Office, the Massachusetts Registry of Motor Vehicles, and the United States Social Security Administration’s Inspector General’s Office for their valuable assistance. 

DOI INVESTIGATION LEADS TO THREE ARRESTS ON CHARGES OF STEALING NEARLY $200,000 IN RENTAL SUBSIDIES FROM NYCHA IN SEPARATE SCHEMES


  Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”), announced the arrests of two sisters, MILAGROS GRIJALBA and NEREIDA GRIJALBA, both former NYCHA Section 8 recipients, and NEREIDA GRIJALBA’s husband JOSE DIAZ, a Bus Operator with the Metropolitan Transportation Authority’s (“MTA”) New York City Transit (“NYCT”) on charges they defrauded NYCHA out of approximately $198,000 in unwarranted rental subsidies, as part of two separate schemes, while they lived in homes they purchased in Orange County. DOI’s investigation began after receiving complaints that the sisters were not residing in their Section 8 apartments in Manhattan and the Bronx, respectively. The Office of the United States Attorney for the Southern District of New York is prosecuting the case.

  DOI Commissioner Mark G. Peters said, “These two sisters were of like mind, cooking up twin schemes to collect rental subsidies from NYCHA while living in their own private homes miles outside of New York City, according to the charges. DOI will continue to investigate Section 8 theft and arrest those who steal scare dollars from the City’s public housing system.” 

  MILAGROS GRIJALBA, 42, of Middletown, N.Y.; NEREIDA GRIJALBA, 40, of Port Jervis, N.Y.; and DIAZ, 53, of Port Jervis, N.Y. each face the federal charge of Theft of Government Funds. NEREIDA and DIAZ also each face the federal charge of Conspiracy to Steal Government Funds. Upon conviction, Theft of Government Funds is punishable by up to ten years in prison and the charge of Conspiracy to Steal Government Funds is punishable by up to five years in prison.

 According to the criminal complaints and DOI’s investigation, MILAGROS GRIJALBA allowed a man claiming to be her son to reside in her Section 8 apartment in Manhattan, without NYCHA’s knowledge or permission, after she moved out of the apartment in 2009 and into a home she and her domestic partner purchased in Middletown, N.Y. for $270,000. The investigation revealed that MILAGROS GRIJALBA also concealed the presence of her domestic partner in the Section 8 apartment since 2004 and the income he earned. MILAGROS GRIJALBA’s conduct resulted in NYCHA overpaying $84,527 in Section 8 rental subsidies between June 2004 and May 2016. 

 In a separate investigation, DOI found that NEREIDA GRIJALBA moved out of her Section 8 apartment in the Bronx in 2012 and into a home she and DIAZ purchased in Port Jervis, N.Y for $280,000. After moving out, NEREIDA GRIJALBA sublet her apartment to an unauthorized occupant for approximately $1,000 a month, according to the charges. DOI also found that NEREIDA GRIJALBA and DIAZ concealed DIAZ’s presence in the Section 8 apartment and the income he received, approximately $102,703 in 2015. NEREIDA GRIJALBA and DIAZ’s conduct defrauded NYCHA of $113,570 between October 2010 and July 2016.

 DOI Commissioner Peters thanked the Acting United States Attorney for the Southern District of New York Joon H. Kim and NYCHA Chair and Chief Executive Officer Shola Olatoye, and their staffs, for their assistance and cooperation in these investigations.

 Criminal complaints are accusations. Defendants are presumed innocent until proven guilty.