Manhattan U.S. Attorney Announces Bank Fraud Charges Against NYPD Detective

Michael Bonanno Engaged in a Bank Fraud Scheme With a Co-Conspirator, Who is Also Charged

  Geoffrey S. Berman, the 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”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that MICHAEL BONANNO was arrested and charged in Manhattan federal court with bank fraud, conspiracy to commit bank fraud, and aggravated identity theft, in connection with a scheme to use stolen bank account numbers to make payments on BONANNO’s credit card and home mortgage accounts.  BONANNO was arrested at his home this morning and will be presented today before Magistrate Judge Debra Freeman. 

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Michael Bonanno, who was at the time a detective in the NYPD’s Crime Stoppers unit, and his co-conspirator used victims’ bank account numbers in a scheme to steal hundreds of thousands of dollars from New Yorkers.  In so doing, Bonanno betrayed the public that he swore to protect.  I commend the FBI and the Internal Affairs Bureau of the NYPD for their outstanding work in this investigation.”  

FBI Assistant Director William F. Sweeney Jr. said:  “Plain and simple, Michael Bonanno allegedly used other people’s money to pay off his debts while simultaneously serving as a police officer, charged with investigating criminal wrongdoing.  We don’t allow the general public to get away with these types of crimes, and we won’t allow members of the law enforcement community to get away with them either.” 

NYPD Commissioner James P. O’Neill said:  “I want to commend the dedicated investigators in the NYPD Internal Affairs Bureau and the FBI as well as the prosecutors in the Southern District whose tireless efforts on this corruption case exposed the criminal activity alleged in this arrest.”    

According to the allegations in the Complaints unsealed today in Manhattan federal court: [[1]]

BONANNO is a NYPD detective and was a member of the NYPD Crime Stoppers unit, which receives and investigates anonymous tips about criminal activity from members of the community.

From November 2016 to March 2017, BONANNO and a co-conspirator stole and attempted to steal money from the bank accounts of multiple New York residents by making unauthorized wire transfers from victims’ bank accounts to accounts controlled by BONANNO, and by cashing fraudulent checks written from victims’ accounts into an account controlled by BONANNO.

In total, BONANNO and his co-conspirator attempted approximately $1,457,642 in fraudulent wire transfers from victims’ accounts to BONANNO’s accounts, and deposited approximately $68,900 worth of forged checks into BONANNO’s accounts.

BONANNO, 44, of Staten Island, New York, has been charged with one count of bank fraud and one count of conspiracy to commit bank fraud, each of which carries a sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Berman praised the investigative work of the FBI and NYPD Internal Affairs Bureau in this 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 herein constitute only allegations, and every fact described should be treated as an allegation.

Statement from Councilman Salamanca Chair of the City Council Land Use Committee on New Jail in the Bronx

"There’s no doubt in my mind that it's time to shut down Rikers Island, and for me, it’s not only due to the critical state of the facilities there, but also because of the deep stigma that surrounds Rikers that resonates with many.

‘But as we address the important issue on how to it shut down, we also need to use the opportunity to address another stigma - one that resonates in lower-income communities, mostly of color, who for far too long have taken on more than their fair share of the types of facilities more affluent neighborhoods have refused to accept.

‘The South Bronx is a perfect example of a community that has historically taken on more than its fair share.  Not only do we have a growing juvenile detention center in the middle of one of our busiest commercial hubs, but we also have the Vernon C. Bain Center, a relic from the crack epidemic of the 1980’s and 1990’s.

‘While the Vernon C. Bain Center, or ‘The Boat’, was supposed to be temporary, it has instead been anchored on the waterfront of Hunts Point for more than twenty-five years. And in that time, it has only added to a stigma that I believe surrounds the South Bronx. For residents, it’s a symbol of embarrassment. For outsiders, it symbolizes that the South Bronx is dangerous, disparate and not worthy of investment. I can’t stand for that.

‘While I understand that four of the five boroughs are finally being asked to take on their fair share, I think that the Bronx has to be given particular attention due to the historical, emotional and psychological encumbrances before us. That attention, to me, includes a real conversation about not only shutting down Rikers, but also on shuttering ‘The Boat’ once and for all.

‘As we move forward, I hope the fact that the South Bronx has been historically disenfranchised is taken into real consideration. As we work to build a more just New York, I for one will not let that fact be forgotten.”

STATEMENT FROM BOROUGH PRESIDENT DIAZ RE: Proposed New Jail in The Bronx

  “I was surprised to learn that the administration has already selected a site for a new jail in The Bronx. I hope that, going forward, this lack of outreach is not a harbinger of the amount of community input the people of my borough will have in this process. I expect that the administration will present my office with a detailed outline of their plans for a new jail, and I will examine those plans carefully as the process moves forward.

“Criminal justice reform, and the need for a fairer court system, is a defining issue of our time. I was proud to work to end ‘stop and frisk’ and to ‘raise the age’ of criminal liability, and that work informs my office’s current efforts to end cash bail and reform parole. Our jail system is a human rights violation, and efforts to limit the unconstitutional levels of our jail population are certainly welcome.

“However, any new site for a jail in this borough must be thoroughly vetted, and the people of The Bronx must have a meaningful say in the selection of any future site, be it the one that has been proposed in Mott Haven or other appropriate sites that could host a new jail. Presenting the selection of this site as a fait accompli undermines the entire process, and has the potential to derail necessary criminal justice reform,” said Bronx Borough President Ruben Diaz Jr.

EDITOR'S NOTE:

We agree 100 PERCENT with Bronx Borough President Ruben Diaz Jr. on this issue.

It seems very interesting that when one looks at the three sites in Brooklyn, Queens, and Manhattan the three sites are currently or have been correction facilities, Hence the name Detention Center after the borough name. 

Once again that the old phrase "The Bronx is Being Dumped Upon" seems fitting.

MAYOR DE BLASIO AND CITY COUNCIL REACH AGREEMENT TO REPLACE RIKERS ISLAND JAILS WITH COMMUNITY-BASED FACILITIES

The agreement ensures a single public review of identified jail sites in four boroughs and marks critical unity on the path to close Rikers Island and modernize the City’s justice system

  Mayor de Blasio and Speaker Corey Johnson announced an agreement today to move forward on closing Rikers Island and creating a smaller, safer and fairer borough-based jail system. Together with the Council Members representing these areas, the Mayor and Speaker have agreed to a single public review process for four proposed sites in Manhattan, Brooklyn, the Bronx and Queens. These sites together will provide off-Island space for 5,000 detainees, and will include the three existing DOC facilities in Manhattan, Brooklyn and Queens, as well as a new site in the Bronx located at 320 Concord Avenue in Mott Haven.

“This agreement marks a huge step forward on our path to closing Rikers Island,” said Mayor de Blasio. “In partnership with the City Council, we can now move ahead with creating a borough-based jail system that’s smaller, safer and fairer. I want to thank these representatives, who share our vision of a more rehabilitative and humane criminal justice system that brings staff and detainees closer to their communities.”

“Today is a historic day, as we are yet one step closer to closing Rikers Island.  The New York City Council is proud to have spearheaded the historic Close Rikers movement by creating the Lippman commission and passing legislation enacting many of its recommendations. The Council has also funded innovative programming to keep cases out of the criminal justice system altogether, such as the CLEAR and HOPE programs, which provide treatment instead of incarceration to those with substance abuse issues. We all know that closing jails on Rikers means opening more humane, community-based facilities elsewhere. I am proud to stand with my Council colleagues and thank them for their support on this crucial issue. I look forward to working closely with Mayor de Blasio, my Council colleagues representing these communities, and the communities themselves in finally achieving our shared goal of closing Rikers Island,” said Speaker Corey Johnson.

“Many Bronx families have been touched by our criminal justice system and understand the importance of creating a more humane approach to detention,” said Council Member Diana Ayala. “This proposed site represents an opportunity to help improve detainee rehabilitation and ultimate reintegration into society, while also creating a safer work environment for officers. I am committed to creating a robust community engagement process on the ground to make sure the neighborhoods I represent and residents throughout the Bronx have an opportunity to provide input into this important proposal. I thank the Mayor, my colleagues and my predecessor, Melissa Mark-Viverito, for her vision in calling for the closing of Rikers Island two years ago.”

With the support of Speaker Johnson and Council Members Chin, Levin, Koslowitz and Ayala, the City has identified four sites to hold new, modified or renovated facilities. These include:

·Manhattan Detention Center, 125 White Street, Manhattan, 10013

·Brooklyn Detention Center, 275 Atlantic Avenue, Brooklyn, 11201

·Queens Detention Center, 126-01 82^nd Avenue, Kew Gardens, 11415

· NYPD Tow Pound, 320 Concord Avenue, Bronx, 10454

These sites will need to go through a public review – a process known as the Uniform Land Use Review Procedure (ULURP) – which includes hearings and recommendations by the local community board, borough president, the City Council and the City Planning Commission. Today’s agreement between the Mayor and Speaker will consolidate the proposal to renovate, expand or construct jails in Manhattan, Brooklyn, Queens and the Bronx into a single ULURP process, which will allow for a more expedited review. An application could be submitted for certification as early as by the end of 2018, and the design process could begin as early as next summer.

Today’s announcement marks another major step in the process to close Rikers Island, which Mayor de Blasio and the City Council first announced in March of last year. In January, the City selected a vendor to identify sites that will eventually replace the jails on Rikers Island. The vendor, Perkins Eastman, and its subcontractors are creating a master plan with recommendations for how to maximize capacity at each of the sites and design jails that best meet the needs of inmates, staff and communities. They will also carry out a comprehensive public engagement process with local communities and stakeholders, and incorporate the feedback and needs of communities into the planning process. In order to expedite the pre-ULURP process, the City will simultaneously carry out environmental reviews to ensure these projects will not have an adverse effect on the surrounding communities.

Because existing borough-based facilities have the capacity to house only approximately 2,300 people, there is no immediate way to close Rikers Island safely and house the population off-Island. Expanding the capacity in the boroughs while simultaneously implementing a series of strategies to significantly reduce the jail population is currently underway. There is now an average of around 9,000 people per day on Rikers Island, which represents a 20 percent reduction since Mayor de Blasio took office.

In recent months, the City has introduced a number of programs that are driving down the jail population. These include a new program that replaces short jail sentences for minor, low-level offenses (typically under 30 days) with services that help prevent recidivism. In addition, the Administration announced that every person in the Department of Correction’s custody will receive re-entry services to help connect them with jobs and opportunities outside of jail, as well as five hours of programming per day to address vocational, educational, and therapeutic needs.

The complete Roadmap to closing Rikers, along with opportunities to get involved, is available atnyc.gov/CloseRikers.

The New York City Council has played a critical role in the movement to close Rikers Island, including convening the Lippman Commission and funding the CLEAR and HOPE programs in partnership with the Brooklyn and Staten Island district attorneys, so that low-level drug offenders can receive treatment and services instead of being sent to jail.

EDITOR'S NOTE:

It seems very interesting that when one looks at the three sites in Brooklyn, Queens, and Manhattan the three sites are currently or have been correction facilities, Hence the name Detention Center after the borough name. 

Councilwoman Ayala is doing her constituents a very big dis favor by taking land where no correction facility is currently or has ever been located, and turning the "Tow Pound" into a maximum jail facility. 

Secondly, where will this current Tow Pound be relocated? In a residential Zone?

DEPARTMENT OF CORRECTION TO INCREASE SAFETY FOR OFFICERS WITH DEDICATED ESU TEAMS FOR HIGHEST-RISK FACILITIES, ADDITIONAL TASERS, AND INCREASED COOPERATION WITH NYPD GANG INTEL BUREAU

The Department will enact a series of security measures, which will be completed this summer, meant to disrupt and significantly reduce violence in city jails and offer COs more protection

  The de Blasio Administration announced today nearly $4.5 million to fund a rapid increase of safety and security measures designed to immediately address violence against New York City Department of Correction officers.

DOC plans a series of enhancements, which include:

·         Adding dedicated Emergency Services Unit (ESU) patrol groups to high-violence facilities.

·         Expanding the number of Tasers for emergency personnel and select uniform staff.

·         Boosting cooperation and coordination with NYPD on intelligence-sharing and gang intelligence training, and assigning NYPD gang intelligence staff to DOC facilities.

These actions are being taken in response to recent unprovoked attacks against the city’s correction officers. The rollout is designed to disrupt the gang activity responsible for many of these vicious assaults and to safeguard those entrusted with keeping our city safe.

“With these high-visibility and comprehensive measures, we send a clear message to the gangs and violent inmates behind the recent attacks against our officers: We aren’t tolerating it,” said Department of Correction Commissioner Cynthia Brann. “These steps will be taken immediately to boost safety for our staff, especially those working in our highest-risk facilities. We want all our officers and staff to know that we have their backs, and they have the full support of the security apparatus at the Department’s disposal. We are acting aggressively to make sure our jails are safe.”   

The following measures will be completed by the end of June. We will:

·   Add additional emergency response patrol units to the most high-violence facilities:

o   Emergency Services Unit (ESU) is a highly trained team that responds to the most dangerous situations on Rikers, and dedicated ESU teams will be providing extra support during the busy and violence-prone shifts at the four most high-risk facilities – AMKC, GRVC, GMDC, and OBCC – at a cost of $3.6 million annually.

·  Expand Taser deployment to personnel assigned to high-violence areas of the jails:

o   Give Tasers to all ESU personnel and specially-trained captains assigned to restrictive housing units and other targeted areas – bringing the total number of staff with Tasers from 25 to 145.

o   DOC has found that the mere presence of Tasers in jail facilities has helped to avert violence, and this increased presence will cost $240K in the first year and $114K in the years following that. 

·   Disrupt gang violence by expanding coordination and intelligence-sharing with NYPD Gang Intelligence Bureau:

Disrupt gang violence by expanding coordination and intelligence-sharing with NYPD Gang Intelligence Bureau:

o   All Correction Intelligence Bureau officers will go through NYPD Gang Intelligence Bureau’s rigorous training to ensure that just as NYPD monitors gangs aggressively in the streets, DOC can do so in the jails with the same level of training and information.

o   DOC and NYPD are developing a plan that will eventually result in the assignment of dedicated NYPD gang intel staff to the DOC Correctional Intelligence Bureau to assist in this effort, at a cost of $579K annually.

About the New York City Department of Correction

The New York City Department of Correction (DOC) provides for the care, custody, and control of persons accused of crimes or convicted and sentenced to one year or less of jail time. The Department manages 12 inmate facilities, nine of which are located on Rikers Island. In addition, the Department operates two hospital Prison Wards (Bellevue and Elmhurst hospitals) and court holding facilities in each borough. During Fiscal Year 2017, the Department handled over 58,000 admissions and managed an average daily inmate population of approximately 9,500 individuals. Our dedicated workforce of both uniformed and non-uniformed staff members represent the city’s BOLDEST. 

ENGEL STATEMENT ON DNI COATS’S PREDICTION OF RUSSIAN ELECTION INTERFERENCE

    Representative Eliot L. Engel, Ranking Member of the House Committee on Foreign Affairs, today made the following statement regarding comments by Director of National Intelligence Daniel Coats and other officials that Russia will likely interfere in the 2018 American elections:

“President Trump’s most senior advisors appear unanimous in their assessment that Russia is set to meddle in our elections again, reiterated today by DNI Coats. Yet the Administration has done nothing to protect our democracy. At this point, I’m growing concerned that the Administration actually welcomes this foreign interference. Russia worked to benefit President Trump before, and it’s a safe guess that Putin continues to support his political objectives. That means Republican leaders in Congress face a choice: act where the Administration hasn’t to stop this attack on American democracy, or accept Russian help in the upcoming election.”

Council Approves Affordable Housing for 425 Grand Concourse

Today the Council voted to approve 425 Grand Concourse, an affordable housing development in Councilman Salamanca's district that will be the first major new building on the lower Grand Concourse in fifty years.

This site is important to a lot of Bronxites because for over one hundred years it was the site of PS 31, also known as the Castle on the Concourse. Over the years, thousands of Bronx students attended school at PS 31 before it was ultimately shuttered and demolished.

Because of the site’s significance to the community, Councilman Salamanca worked to ensure that any development to replace PS 31 would be built to be a proud part of the community and would provide needed services to all of those who currently call the South Bronx home.  

After many months of negotiation, we have succeeded in bringing a great project to the district. The new building, rising 27 stories, will house a grocery store, a charter school, a clinic and other community space on the lower floors.

The building will be designed to Passive House standards, consuming significantly less energy than a conventional housing project.

The building also is directly next to Garrison Playground, park space that is slated to benefit from $1.5 million in Council capital funds that Councilman Salamanca secured a few years ago. Councilman Salamanca worked to ensure that the developer and management company of 425 Grand Concourse will pay to staff a full time maintenance worker $52,000 annually to maintain the playground into perpetuity.  

And finally, 425 Grand Concourse works to help address the need of affordable housing for families in the South Bronx. 277 units will be 100% affordable ranging from 30% to 100% of AMI. Many of those units will be permanently affordable.

As always, the importance of delivering affordable housing for the community through quality developments is incredibly important Councilman Salamanca.  It is particularly important today in my his capacity as the Council Land Use Chair that one of the first big land use actions taken this session was to approve this important project.

Two Defendants Charged In Manhattan Federal Court With Sex Trafficking And Other Offenses

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrests of LAVELLEOUS PURCELL, a/k/a “King Casino,” a/k/a “Mike Hill,” and GLORIA PALMER, a/k/a “Gloria Hearn.” PURCELL is charged with sex trafficking and related offenses.  PALMER is charged with conspiracy to use interstate commerce to promote PURCELL’s illegal sex trafficking activity.  PURCELL was presented Friday in Manhattan federal court before United States Magistrate Judge Stewart D. Aaron and detained.  PALMER was presented Friday in federal court in Rochester and released on bail.  The case has been assigned to United States District Judge Denise L. Cote. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Lavelleous Purcell’s conduct was exploitive, forcing women to engage in sex for money, and keeping the money for himself.  Thanks to the FBI and NYPD, Purcell and his alleged accomplice, Gloria Palmer, are in custody.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “The subject in this case allegedly forced women to have sex for money.  Our FBI agents and law enforcement partner detectives won’t ever stop pursuing pimps who profit from using women not as human beings, but as objects and as a way to make money.  However, the practice isn’t going to ever go away unless the demand goes away.  We ask anyone with information about this case, or any other situation they suspect may be human trafficking, to call us.”

According to the Indictment unsealed today in Manhattan federal court,[1] and statements made in court during the defendants’ presentments:

For the past several years, PURCELL has worked as a sex trafficker and pimp under the alias “King Casino.”  From 2012 to 2016, PURCELL trafficked women, forcing them to engage in commercial sex, for which he was paid.  Since at least 2015, PURCELL has recruited women to travel in interstate commerce to engage in prostitution and has transported women across state lines to engage in prostitution.  PALMER used the facilities of interstate commerce to promote the prostitution business by booking hotel rooms for PURCELL and the women.

To date, law enforcement agents have identified over 50 women who appear to have engaged in commercial sex at PURCELL’s direction.

PALMER assisted in PURCELL’s sex trafficking business by, among other things, booking hotel rooms for PURCELL and the women he trafficked, for which PURCELL paid PALMER a monthly fee.

The charges in the Indictment against LAVELLEOUS PURCELL, 39, of Hempstead, New York, and GLORIA PALMER, 26, of Rochester, New York, are included in the chart below.  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.

Any individuals who believe they have information that may be relevant to the investigation should contact the FBI at 1-212-384-1000 or https://tips.fbi.gov/.

Mr. Berman thanked the FBI and NYPD for their outstanding investigative work in this matter.  Mr. Berman also thanked the New York County District Attorney’s Office for its assistance with this investigation. 

The charges and allegations 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.