Investment Adviser And Broker Sentenced For Securities Fraud Scheme

   Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that CHRISTOPHER CERVINO, a/k/a “Smitty,” was sentenced to one year and one day in prison, and SHEIK F. KHAN, a/k/a “Abida Khan,” was sentenced to 53 months in prison for their roles in a securities fraud scheme involving the shares of a publicly traded company called VGTel, Inc. (“VGTL”).  CERVINO and KHAN were convicted after a three-week jury trial before U.S. District Judge Andrew L. Carter, who imposed yesterday’s sentence. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Securities broker Christopher Cervino and investment adviser Sheik Khan created a massive web of lies to defraud investors of millions of dollars.  They manipulated the market, and their clients’ trust, to ensure they made money.  Thankfully their days of deceptive trading and investing are over, and they will spend time in prison for their crimes.”

According to the Indictment other filings in Manhattan federal court, evidence at trial, and statements made in court proceedings:

The securities fraud scheme was conceived and led by Edward Durante, a recidivist securities fraud defendant, who pled guilty in August 2016 to various crimes related to the scheme, including conspiracy, securities fraud, money laundering, and perjury.  As part of the scheme, Durante, CERVINO, KHAN, and others conspired to control and manipulate the public stock of VGTL in order to artificially inflate the stock price and trading volume so as to profit from sales of VGTL stock and to further induce investments in private shares of VGTL. 

Durante, through entities he controlled, held a majority of the publicly traded stock of VGTL.  Durante recruited CERVINO, a broker, to open brokerage accounts associated with Durante-controlled entities and investors who were clients of KHAN, an investment adviser.  Many of KHAN’s clients had no idea that KHAN and Durante had opened accounts on their behalf with CERVINO.  KHAN, along with Durante, then induced her clients to purchase VGTL stock through CERVINO – sometimes without the clients’ knowledge or permission – while Durante and CERVINO ensured that many of these purchases were matched with sales of VGTL stock by Durante-controlled accounts.  The reality of these transactions was that Durante and his co-conspirators were effectively taking both sides of a single transaction in VGTL stock in order to artificially control VGTL’s stock price.  The defendants’ efforts to artificially inflate the market for VGTL increased the stock price from approximately $.25 per share to as much as $1.90 during the course of the scheme, and dramatically inflated the trading volume, which increased the defendants’ abilities to raise private investments in VGTL and to unload Durante-controlled shares at artificially high prices at the expense of victim investors.  To compensate CERVINO for his efforts to control and manipulate the market in VGTL, Durante made at least two cash payments to CERVINO totaling $35,000, in addition to the substantial commissions CERVINO received for executing trades in VGTL.  For her part, KHAN received more than $400,000 from Durante, including more than $100,000 in payments for liquidating her clients’ investments in safe annuities so that the money could then be invested into VGTL.  In total, CERVINO purchased more than $3.5 million of VGTL shares in client accounts controlled by KHAN and/or Durante.  The VGTL shares were ultimately worthless and clients lost the entirety of their investments.

In addition to the prison term, CHRISTOPHER CERVINO, 45, was sentenced to three years of supervised release and ordered to forfeit $35,000.

In addition to the prison term, SHEIK F. KHAN, 54, was sentenced to three years of supervised release and ordered to forfeit $290,787.

Restitution for both defendants will be determined at a later date.

Mr. Berman praised the work of the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and thanked the Securities and Exchange Commission for its assistance. 

Comptroller Stringer Audit: School Construction Authority’s Shoddy Oversight of $100 Million “Miscellaneous” Checking Account Leads to Lost Dollars

SCA Failed to Follow State Law Investment Requirements

Comptroller Stringer Calls for Strict Measures to Improve Financial Transparency and Performance

  According to a new audit released by Comptroller Scott M. Stringer, the City-funded School Construction Authority (SCA) has kept more than $100 million in an obscure– and inadequately managed – “miscellaneous” checking account. The audit examined a two-year period and discovered inadequate controls over the account – which could lead to waste or abuse – as well as a failure to follow a State law requiring investment of public dollars entrusted to the SCA in order to ensure maximum returns.

The SCA is funded largely through the City’s capital budget, but it also receives money from other sources, ranging from lease payments to insurance and litigation settlements. For those external dollars, the SCA created a special account called the “Other Funds Account” (formerly known as the “Miscellaneous Checking Account”). The Comptroller’s office found that the account’s balance grew dramatically—from $20 million to $104 million—between Fiscal Years 2007 and 2016.

When auditing the account for Fiscal Years 2015 and 2016, Comptroller Stringer found that the SCA’s internal controls over it were insufficient to ensure proper accountability and transparency. In addition, the audit found that rather than investing the funds as authorized by State law, the SCA kept them in a checking account that earned minimal interest from May 2015 through June 2016 – a missed opportunity to earn better returns. That failure to follow State law and invest those dollars as prescribed by law, means that hundreds of thousands of dollars that could be going to improving school facilities have been left on the table.

“When the bureaucracy can’t get its house in order, taxpayers lose and our kids miss out on the facilities they deserve. The SCA’s bungling of financial records potentially cost the City millions. When we could’ve earned a significant return by investing tens of millions of dollars, the SCA knowingly left money on the table. That incompetence comes at the expense of our children,” said New York City Comptroller Scott M. Stringer. “Hundreds of thousands of critical, additional dollars that could have been put toward supporting our schools, our kids, and facilities were ultimately lost. That’s unacceptable. The SCA must immediately implement controls that will allow for stronger oversight of public funds in the future.”

Comptroller Stringer issued a series of recommendations as part of the audit, including:

• Deposit the funds maintained in the Other Funds Account not needed for immediate use in an investment account in accordance with the General Municipal Law.
• Implement controls to ensure that it accurately and consistently records the funding source classifications and use designations (dedicated or discretionary) of Other Funds Account funds in all of the SCA’s financial records.

To see Comptroller Stringer’s audit, click here.

STATEMENT ON GOVERNMENT SHUTDOWN FROM CONGRESSMEN ENGEL AND ESPAILLAT

Engel Statement on GOP Forcing a Government Shutdown

“The Republican Majority, which controls the House, the Senate, and the White House, had months to address the most pressing issues facing our nation. These include renewing DACA, reauthorizing the Children’s Health Insurance Program (CHIP), funding community health centers and, of course, keeping our government running.

“Instead of tackling even one of these issues, they worked exclusively on passing a huge tax cut for big corporations and the wealthiest Americans. Then, at the last moment, they decided to hold kids’ health care hostage to extort votes for a bill that doesn’t take care of our veterans, people grappling with addiction, or Americans desperately waiting for disaster aid.

“My fellow Democrats and I refused to be coerced. We told the Majority to put forward a bill that dealt with the issues our constituents are facing, and they failed. As a result, the government has shut down.

“Though many government services are now temporarily shuttered, my offices—both in Washington and in my district—will remain open during normal business hours and stand ready to assist with any constituent issues you may have. Democrats have been consistent in their desire to put petty politics aside and begin fixing the many problems our country faces. It’s time the Republicans joined us in that effort.”  

Congressman Adriano Espaillat statement regarding Senate Republicans’ failure to avert a government shutdown.

“I am deeply disappointed that Senate Republicans have voted to reject the bill that would have funded the government and averted a government shutdown that impacts millions of Americans,”said Rep. Espaillat. “Successful governments work together in bipartisan ways that benefit each of us while creating stability and opportunity for us all – regardless of status or country of birth. Republicans control the White House and hold the majority in both the House of Representatives and the Senate. Instead of working with Democrats to reauthorize children’s health insurance, fund community health centers, address the national opioid crisis, and pass bipartisan immigration reform, President Trump and Republicans instead chose to relinquish their responsibility to govern. They have continuously stalled negotiations that would provide a solution and path for citizenship for 800,000 Dreamers and their families.

“It is my sincere hope that we can come to a remedy and create a funding deal that will put our nation back on the right path.

“During this shutdown, I will continue to honor my commitment to serve the constituents of New York’s 13th congressional district and will be meeting with families and constituents impacted directly by the government shutdown throughout the community.”

Police, Fire, and EMS called to Van Cortlandt Park for Rescue

  At 1 PM a NYC Parks Employee went to fix a fence at pond 15 in Van Cortlandt Park. He found footprints leading to a hole in the middle of the pond, but none back at the time. His supervisor was called to the site, and the NYPD, NYFD, and EMS quickly responded to what seemed to be someone who may have fallen through the ice. 

 It was decided to send two divers down the hole to look for anyone who could be under the frozen lake. After an extensive search for over an hour the rescue mission was called off as an EMS supervisor told me that a person could only survive for thirty or forty minutes at the most in the freezing water under the ice top. 

Above - The footprints you see are those of rescue workers who one at a time went to investigate the hole in the ice to try to see if anyone was floating under the Ice.

Below - The Police and Fire Department rescuers are waiting for scuba divers to go into the hole in the ice to look for anyone who may be underwater. However no one was found in the pond. 

Bronx Borough President Ruben Diaz Jr. - BLACK HISTORY MONTH

Honorees include - 
Former Councilwoman Helen Diane Doster,
Mr. Shaun King,
Ms. Tamika Mallory.

Saturday February 10, 2018
12 - 3 PM 
Einstein Community Room Coop-City

RSVP to 718-590 - 3552
or e-mail  lroldan@bronxbp.nyc.gov

Wave Hill Events Feb 2‒Feb 9 Hoot and Howl Weekend!

Sat, February 3    Family Art Project: Coyote and Owl Fixtures and Tricksters

Hear about the folklore surrounding two wonderfully mysterious and enchanting creatures, the owl and the coyote. Learn about these local animals and their habits and special attributes. Then create a fanciful, wintery tableau of simple, paper puppets and shadowy scenes that capture your own make-believe owl and coyote mythology. Free, and admission to the grounds is free until noon. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 10AM‒1PM

Sat, February 3    Hoot and Howl in The Shop

On this special weekend devoted to owls and coyotes, save 20% on all owl and coyote hand and finger puppets. Hoot and Howl Weekend event. 

PERKINS VISITOR CENTER, 10AM‒4PM

Sat, February 3    Coyote and Owl Info Station

Check out skulls, feathers, pelts and other owl and coyote paraphernalia with environmental educators from the Hudson Highlands Nature Museum and the Urban Park Rangers. Students from Wave Hill's Woodland Ecology Research Mentorship Program will also be on hand to share their research on coyotes cavorting in Wave Hill's own backyard. See images of coyotes captured on hidden cameras and test your coyote street smarts in a game based on Bronx coyote behavior. Free, and admission to the grounds is free until noon. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 10AM‒1PM

Sat, February 3    Owl Pellet Dissection

Owls swallow their prey whole. Parts of their prey, such as bones, feathers and fur, are bound up during digestion into a tight pellet, which the owl regurgitates. Drop in for this exploratory workshop with naturalistGabriel Willow and discover the origins of the owl’s diet. Ages eight and older welcome with an adult. Free, and admission to the grounds is free until noon. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 11AM‒1PM

Sat, February 3    Nature Talk: Coyotes in Riverdale

Highly adaptable animals, coyotes have made a home right here in our neighborhood in the Bronx. You may have heard, or even seen, coyotes yourself. Ferdie Yau, professional dog trainer and biologist with the Gotham Coyote Project, has been studying coyote behavior with his team of students from Wave Hill’sWoodland Ecology Research Mentorship program. Hear how trained dogs are helping us learn about Riverdale’s coyotes and how we can safely coexist with these clever canines. Ages 12 and older welcome with an adult. Free, and admission to the grounds is free until noon. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 11AM‒NOON

Sat, February 3    Coyote Scat-Detection Dog Demonstration

Watch a live training demonstration with the Gotham Coyote Project’s scat-detection dog. Learn how Ferdie Yau, professional dog trainer and biologist with the Gotham Coyote Project, trains dogs to help in the study of urban coyotes in NYC. Ages eight and older welcome with an adult. Free with admission to the grounds.Hoot and Howl Weekend event.

WAVE HILL HOUSE, 1PM

Sat, February 3    Nature Presentation: Owl Discovery

Get an in-depth look into the fascinating world of local owls with environmental educators from Volunteers for Wildlife, a wildlife hospital and education center. Meet live owls and enjoy up-close observation of their amazing, nocturnal hunting adaptations. Ages six and older welcome with an adult. Free with admission to the grounds. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 2PM

Sun, February 4    Family Art Project: Coyote and Owl Fixtures and Tricksters

Hear about the folklore surrounding two wonderfully mysterious and enchanting creatures, the owl and the coyote. Learn about these local animals and their habits and special attributes. Then create a fanciful, wintery tableau of simple, paper puppets and shadowy scenes that capture your own make-believe owl and coyote mythology. Free with admission to the grounds. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 10AM‒1PM

Sun, February 4    Hoot and Howl in The Shop 

On this special weekend devoted to owls and coyotes, save 20% on all owl and coyote hand and finger puppets. Hoot and Howl Weekend event. 

PERKINS VISITOR CENTER, 10AM‒4PM

Sun, February 4    Coyote and Owl Info Station

Check out skulls, feathers, pelts and other owl and coyote paraphernalia with environmental educators from the Hudson Highlands Nature Museum and the Urban Park Rangers. Students from Wave Hill's Woodland Ecology Research Mentorship program will also be on hand to share their research on coyotes cavorting in Wave Hill's own backyard. See images of coyotes captured on hidden cameras and test your coyote street smarts in a game based on Bronx coyote behavior. Free with admission to the grounds. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 10AM‒1PM

Sun, February 4    Owl Pellet Dissection

Owls swallow their prey whole. Parts of their prey, such as bones, feathers and fur, are bound up during digestion into a tight pellet, which the owl regurgitates. Drop in for this exploratory workshop with naturalistGabriel Willow and discover the origins of the owl’s diet. Ages eight and older welcome with an adult. Free with admission to the grounds. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 11AM‒1PM

Sun, February 4    Nature Talk: Understanding Urban Coyotes

Coyotes inhabit nearly every city in the U.S., but their elusive nature makes them difficult to track. Carol Henger, PhD candidate at Fordham University, studies New York City’s coyote population by examining the DNA from their scat (a.k.a. poop). Hear what her research has revealed about this remarkable, urbanized species. Ages 12 and older welcome with an adult. Free with admission to the grounds. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 11AM‒NOON

Sun, February 4    Winter Workspace Drop-In Sunday

Artists in the Winter Workspace program share their studio practice with visitors on this Drop-In Sunday. Artists in Session 1 of this program are Tomie Arai, Camille Hoffman, Pedro Ramirez, Jessica Rohrer,Jean Shin and Austin Thomas. For more about who is in residence on Sundays, visit wavehill.org. Free with admission to the grounds.

GLYNDOR GALLERY, 1–3PM

Sun, February 4    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

Sun, February 4    Nature Presentation: Owls—Raptors of the Night

Discover how owls adapt to life in the forest and the city, with Carl Heitmuller, an environmental educator from the Hudson Highlands Nature Museum. Meet a live owl from the museum’s collection and find out whoo’s who in your neighborhood. Ages six and older welcome with an adult. Free with admission to the grounds. Hoot and Howl Weekend event.

WAVE HILL HOUSE, 2PM

Mon, February 5

Closed to the public. 

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–4:30PM, November 1–March 14. Closes 5:30PM, starting March 15.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

NEW YORK CITY FILES AMICUS BRIEF TO DEFEND LABOR UNIONS’ RIGHT TO COLLECT FEES

Legal papers defend union rights to collect essential fees from all public employees benefiting from collective bargaining

  Mayor Bill de Blasio and Corporation Counsel Zachary W. Carter today announced that the City of New York has filed an amicus brief with the U.S. Supreme Court in Janus v. American Federation of State, County, and Municipal Employees, Council 31, et al., to defend a legal right that labor unions view as crucial to their success and survival. The City’s amicus brief, along with the briefs of labor leaders, states from across the country, dozens of cities and counties large and small, public schools and hospitals, economists – including three Nobel laureates, constitutional law and labor law professors, members of the clergy across all faiths and faith-based organizations, private and public sector employers, governors, and a large number of nonprofits and foundations whose mission it is to ensure human dignity, equality and fairness to our economy, and others, was filed Friday.

At issue in Janus is the ability of unions to collect fees (known as “agency shop fees”) from public employees who elect not to join a union but nonetheless benefit from union collective bargaining activities. For over forty years, the Supreme Court has upheld the constitutionality of agency shop fees, but plaintiffs in Janus now seek to change the law and limit union rights.

“New York City is the city it is today because of the hardworking unionized men and women who built it and run it. Our city is stronger because of unions’ ability to organize and fight for all of our rights. Especially in the face of our current political climate, we should be bolstering tools for empowering and protecting workers not making them more difficult to come by,” said Mayor Bill de Blasio.

The City’s brief explains how New York City pioneered collective bargaining for public employees and how the City adopted agency shop fees to protect workers and the public through a fair and effective collective bargaining system. The fees are modeled after successful private-sector labor relations strategies.

“Prohibiting agency shop fees would strip jurisdictions like New York City of a tool that has for years helped foster productive relationships between governments and their public workforces. Agency shop fees have strengthened a collective bargaining process that has worked for us for nearly half a century,” said Corporation Counsel Zachary Carter.

Collective bargaining activities in New York City are time- and resource-intensive and require extensive expertise from both the government and union sides. Agency shop fees finance the provision of tools for negotiation and mediation that help resolve disputes for the benefit of public workers and city residents.

The entire 43 page amicus brief can be found here.

Marble Hill Houses - Town Hall on NYCHA concerns January 23rd

  Join the Tenants of Marble Hill, Congressman Adriano Espaillat , Manhattan Borough President Gale Brewer, State Senator Marisol Alcantara , NYS Assembly Members Carmen De La Rosa and Jeffery Dinowitz, NYC Council Members Ydanis Rodriguez, Fernando Cabrera, and Andy Cohen as they host a town hall to discuss several concerns in the Marble Hill Houses such as lack of heat , security, etc. The Town Hall will be held on Tuesday, January 23rd at 7:00pm at St. Stephens Church located at 146 W 228th Street BX, NY 10463.