Thursday, March 1, 2018
Tuesday, February 27, 2018
CONGRESSMAN ADRIANO ESPAILLAT RECOGNIZES THE DOMINICAN COMMUNITY ON THE 174TH ANNIVERSARY OF THE COUNTRY'S INDEPENDENCE
Today, Rep. Adriano Espaillat issued the following statement to commemorate the 174th anniversary of the Independence of the Dominican Republic:
"Founded in 1844, today marks the 174th anniversary of the Independence of the Dominican Republic, celebrated annually as Dominican Republic Independence Day,” said Rep. Espaillat. “In honor of founding fathers Juan Pablo Duarte, Ramón MatÃas Mella, Francisco del Rosario Sánchez and other patriots, Dominican communities established in New York and states around the country are hard-working communities, proud of our roots and of our heritage, and supportive of our families, especially as it pertains to the next generation of leaders and ensuring our youth have the opportunity to achieve in the future.
“As we celebrate Dominican Republic Independence Day, it is with great appreciation in large part to the Dominican community and the diversity of New York’s 13th congressional district, that I have the honor of being the first Dominican-American to serve in the United States Congress. I understand this great importance, and I am extremely grateful and humble for those who made it possible for this Dominican dreamer who came to America with his family at the age of 9 to reach his aspirations and follow my dreams. I vow to continue my fight and dedicate my work to ensuring that the more than 2,400 DREAMers in my district have the same opportunities to achieve a shot at the American Dream in a country as great as ours.”
News From Congressman Eliot Engel
Engel, House Dems Introduce Assault Weapons Ban of 2018
Congressman Eliot L. Engel, a member of the House Gun Violence Prevention Task Force, joined more than 150 Democratic colleagues in introducing the Assault Weapons Ban of 2018, which would make it “unlawful for a person to import, sell, manufacture, transfer, or possess, in or affecting interstate or foreign commerce, a semiautomatic assault weapon.”
“As I have said many times before: the Second Amendment wasn’t written with semi-automatic weapons in mind. They are weapons of war and no fair-minded person would confuse regulating them with infringing on personal freedom,” Congressman Engel said. “It’s long past time Congress did something to stop this horrific gun violence, and there is no better place to start than getting these weapons of war off our streets.”
The Assault Weapons Ban will prohibit the sale, transfer, production, and importation of:
- Semi-automatic rifles and handguns with a military-style feature that can accept a detachable magazine;
- Semi-automatic rifles and handguns with a fixed magazine that can hold more than 10 rounds;
- Semi-automatic shotguns with a military-style feature;
- Any ammunition feeding device that can hold more than 10 rounds;
- And 205 specifically-named and listed firearms.
As the frequency of mass shootings has increased in recent years, assault weapons have become the weapon of choice for these murderers. Assault weapons were used in attacks on Marjory Stoneman Douglas High School in Florida and the Route 91 Harvest music festival in Las Vegas. Shooters have also used assault weapons to commit mass murder at Sandy Hook Elementary School and a movie theatre in Aurora, Colorado. When an assault weapon or a high-capacity magazine is used in a shooting, the number of victims who are killed increases by 63%. There have been almost 8,300 incidents of gun violence so far in 2018. More than 2,200 Americans have lost their lives. More than 500 children have been killed or injured.
“I voted for the original assault weapons ban which unfortunately was allowed to lapse under President George W. Bush,” Engel said. “Now we can’t afford to waste another moment without fixing that mistake. This really shouldn’t be a partisan issue—how many more children have to die before the GOP decides to act? Banning assault weapons, universal background checks, limiting magazine capacities; these aren’t outlandish ideas. This stuff is commonsense and my colleagues across the aisle need to wake up and realize that. They work for the American people, not the NRA.”
Engel Statement on Net Neutrality Day of Action
Congressman Eliot L. Engel, a member of the House Energy and Commerce Committee’s Subcommittee on Communications and Technology, issued the following statement:
“I applaud all the advocates who today are making their voices heard in support of net neutrality and I join them in expressing my dismay over the FCC’s continued push to destroy a free and open internet.
“Net neutrality is the principle that all data on the internet should be treated equally, regardless of its source, content, or destination. It ensures that user choices are not limited by the preferences of internet service providers, and it allows companies to compete based on the merits of their offerings and not the size of their pocketbooks.
“The democratization of the internet should not be impeded. The FCC has failed the American people under Chairman Ajit Pai’s leadership, and thus it falls to Congress to undo the mess they have made. I am pleased to cosponsor legislation that would restore net neutrality now and for future generations, and I urge my colleagues on the right to join us in this fight.”
MAYOR DE BLASIO APPEARS LIVE ON INSIDE CITY HALL RESPONDS TO IDC NYCHA REPORT
Here is the transcript from the NY 1 interview of Mayor Bill de Blasio by host Errol Louis on the question of the IDC report on NYCHA, and the mayor's answer before Mr. Louis could finish the question. The IDC response to the mayor follows.
Louis: I understand there are going to be folks on the steps of City Hall talking about this very issue. As you may know, the IDC issued a statement today calling the lead issues in NYCHA because of the deteriorating housing stock worst that Flint, that there’s high levels of –
Mayor: Look, I’m sick of the IDC, period. That’s a highly irresponsible statement on their part. Flint is a national disgrace and horrible damage was done there. In the case of NYCHA, the problem was identified. There have been numerous inspections undertaken, numerous remediation efforts. I wish that had been done in the previous administration.
It is a fact that those inspections stopped in the last administration. They should not have. I wish we had seen it and understood it earlier. But once it was identified, we swung into action. The inspections have been happening the last two years. The remediation has been happening. Thank God our children have been protected and the incidents of lead poisoning have been going down consistently in New York City.
We have the strongest public health department in the whole country. It is night and day from what happened in Flint and it’s irresponsible of the IDC. And the IDC is simply trying to cover up their own sins.
The IDC really bears a lot of responsibility here having aided and abetted Republicans for all these years. If we had a Democratic State Senate, there would be a lot more support for public housing. There would be a lot more support for affordable housing. There would be support for stronger rent laws.
So, I’m just sick of the IDC. If they don’t come home to the Democratic Party right away, they will suffer the consequences.
Statement from the Independent Democratic Conference
It is regrettable that instead of the Mayor addressing allegations of human rights violations against NYCHA residents committed by New York City under his administration, he rather attack IDC members of the state legislature who are committed to protecting all 400,000 NYCHA residents and trying to do the job that he should be doing. Unfortunately, the only thing progressive that is happening at NYCHA is that the conditions are getting progressively worse.
Monday, February 26, 2018
DOI RELEASES 2017 STATISTICS SHOWING GAINS IN ARRESTS, INVESTIGATIONS, AND REFORMS STRENGTHENING CITY OPERATIONS
Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”), issued the 2017
Calendar Year data for DOI today, reflecting increases in arrests, current investigations and recommended
reforms to strengthen and improve procedures at City agencies. Commissioner Peters also released statistics that
detail the number of complaints received and investigations conducted in 2017 by DOI’s Inspector General for the
New York City Department of Education (“DOE”), also known as the Special Commissioner of Investigation for the
New York City School District.
DOI Commissioner Mark G. Peters said, “These numbers reflect the critical nature of the City’s Inspector
General: holding fraudsters accountable, stopping misconduct by City employees and others, uncovering and
stemming theft of City funds, and prompting change that improves how this City operates. The work of the New
York City Department of Investigation is broad and rests in DOI’s ability to both make arrests and effect change
through reforms. I congratulate the dedicated team here at DOI and thank our partnering agencies who have
joined us in the fight against corruption and fraud.”
The number of DOI complaints, current investigations, closed investigations, arrests and recommended
reforms all increased from 2016 to 2017:
- Complaints: In 2017, DOI received more than 12,400 complaints, a 5% increase from the 11,837 complaints received in 2016.
- Current Investigations: In 2017, DOI counted 2,001 current investigations, a 7% increase from the 1,866 in 2016.
- Closed Cases: DOI closed approximately 1,343 investigations in 2017, a 10% increase from 2016 when the agency closed 1,217 cases.
- Arrests: DOI made 726 arrests in 2017, a 4% increase from the 696 the agency made in 2016.
- Reforms: DOI issued 969 policy and procedure reforms in 2017, a 42% increase from the 681 the agency issued in 2016.
DOI’s investigations in 2017 touched on several major areas, specifically investigations that exposed and
stopped the theft of public funds, strengthened fairness and integrity in City operations, found City employees
exploiting their insider access and protected the safety of New Yorkers.
Stopped the Theft of Public Funds
A core element of DOI’s work is to safeguard taxpayer funds from those individuals who seek to steal
them, in particular for personal gain. In 2017, DOI’s investigations in this area included investigating fraud
involving City-funded nonprofits, City employees who allegedly used their insider access to skim taxpayer funds
for personal profit and schemes to steal from Hurricane Sandy disaster relief. Highlights include:
- An investigation that led to the arrest of a City employee with the City Human Resources Administration (“HRA”) and a co-conspirator on charges of embezzling tens of thousands of dollars in public benefits that had been earmarked for a food assistance program. An associated report documented the findings and made a series of recommendations to close operational gaps within HRA that were found during the investigation;
- The arrests of five individuals for defrauding disaster relief associated with the Build it Back program and a report documenting the findings of an interim investigation examining contractor invoices and field audits that so far has saved approximately $40 million in taxpayer funds;
- A former Human Resources Manager at a nonprofit that provided low income housing services who was convicted of stealing more than $400,000 for her personal use and sentenced to 1 to 3 years for Grand Larceny in the Second Degree and ordered to pay restitution in the amount of the theft; Prison sentences for a City-funded nonprofit executive and spouse in connection with the theft of more than a half-million dollars;
- Uncovering a $3 million fraud scheme in partnership with the United States Attorney’s Office of the Eastern District involving the submission of reimbursement claims for school meals that were never served; and
- Working with our law enforcement partners to uncover how millions of dollars were stolen from the City’s healthcare system and arresting medical professionals charged with unlawful prescribing practices that contributed to the opioid crisis in New York City.
Protecting New Yorkers’ Safety
DOI’s investigations into construction fraud, protocols surrounding child abuse investigations and the
operation and management of public housing exposed how safety and integrity are powerfully linked. In 2017,
DOI investigations resulted in arrests, prison sentences and reforms, including:
- Exposing an illegal gas meter installation scheme that led to the arrests of National Grid employees and others on charges of enterprise corruption. DOI made recommendations to National Grid to ensure that gas power is delivered safely in the City;
- In partnership with the Brooklyn District Attorney’s Office, DOI investigated the death of a worker at a construction site resulting in the indictment of a construction company owner on manslaughter and other charges;
- Contraband smuggling and inmate assault by City Department of Correction (“DOC”) staff remained a focus for DOI in 2017 and resulted in one dozen arrests and multiple jail sentencings of DOC staff; The conviction of a Correction Officer on filing a fraudulent use-of-force report to cover up the assault of an inmate;
- Working with the Brooklyn District Attorney’s Office on an investigation that led to the arrests of property managers and developers, a private asbestos inspector and City Department of Buildings inspectors in separate schemes involving construction fraud, including fraudulent asbestos inspections and bribe receiving by the City inspectors;
- The sentencing of a landlord to between three-to-six years in prison for his role in a widespread bribery scheme involving City employees that was uncovered by DOI and the Manhattan District Attorney’s Office;
- Finding deficiencies in the response by the City Administration for Children’s Services (“ACS”) to abuse and neglect allegations related to a three-year old boy who was allegedly beaten to death, and issuing recommendations that were adopted by ACS to improve how the agency handles allegations involving ongoing criminal conduct;
- Conducting an undercover operation at the New York City Housing Authority (“NYCHA”) that found insufficient inventory controls over large appliances, a problem that DOI first alerted NYCHA to in 2016;
- Determining that NYCHA continued in its failure to fully enforce its policies to remove criminal offenders, despite a 2015 DOI report that alerted NYCHA to these failures and recommended improvements; Lending intelligence and other assistance to law enforcement partners to stop gang and other criminal activity on NYCHA properties; and
- Exposing that NYCHA failed to conduct mandatory lead paint safety inspections for four years.
Strengthening Fairness and Integrity
DOI issued 16 reports in 2017 that documented investigations and made recommendations to remedy
vulnerabilities found during DOI investigations. These reports provide a window for the public to understand the
challenges facing the City and how to overcome them; and they enhance the investigations DOI conducts by
publicly exposing wrongdoing and holding the City accountable. Results in this area included:
- Reports issued on areas of concern within the New York City Police Department (“NYPD”), including improvements needed in how officers handle situations involving people in mental crisis, gaps in Department-wide training for officers on interactions with LGBTQ people, and how NYPD can strengthen how it assists undocumented victims of serious crimes – who have been helpful to NYPD – with obtaining federal immigration relief;
- Prevailing wage investigations that included the recovery and reimbursement of wages to workers on school construction sites of more than $1.2 million dollars;
- A report on the use of fraudulent parking placards and related arrests;
- DOI continued its investigation into City employees who filed fraudulent supplemental disability claims forms with AFLAC and received payment while collecting their full City salaries, resulting in 2017 in the arrests of seven City employees, 14 guilty pleas, and court-ordered restitution totaling more than $432,000; and
- A detailed report on how high-level managers at DOC, including the agency’s Commissioner, misused their City-issued vehicles, taking them on personal trips.
Commissioner Peters also released statistics related to the Inspector General for DOE, whose
investigations involved employees, individuals, and vendors associated with DOE and included cases of alleged
sexual misconduct and inappropriate relationships with students, among others. In 2017, the office processed a
total of 6,277 complaints. Other highlights included 739 new investigations opened; 691 investigations completed
that were opened in 2017, and earlier years; and substantiated findings in 24% of investigations conducted.
A total of 759 complaints included a sexual component and 213 investigations were opened involving
those allegations. Sexual misconduct allegations included criminal acts, inappropriate relationships with students,
physical and verbal harassment of a sexual nature, and inappropriate cell phone and social media contact
involving DOE employees. Substantiated findings were made in 12% of the sexual misconduct investigations that
were conducted.
A significant number of complaints in 2017 also involved a Pre-Kindergarten For All (“Pre-K”) issue. The
office received 352 complaints involving Pre-K in 2017, a 12% increase from 2016, likely reflecting the expansion
of the Pre-K program this past year and a more heightened awareness and reporting of incidents. These
complaints ranged from allegations of unsupervised children to corporal punishment and sexual abuse.
The office also monitored 489 complaints and opened 222 investigations based on those allegations.
These cases involved misconduct allegations made against DOE employees, which originally were referred to
another agency, including the New York City Police Department (“NYPD”).
Indictments and criminal complaints are accusations. Defendants are presumed innocent until proven guilty.
Bribery and Corruption are a Trap. Don’t Get Caught Up. Report It at 212-3-NYC-DOI.
DA VANCE, PARTNERS ANNOUNCE TAKEDOWN OF ILLEGAL MONOPOLY THAT DOMINATED TOWING INDUSTRY CITYWIDE
Organized Crime Operation Allegedly Maintained Violent Monopoly in Manhattan, Bronx, Queens,
Brooklyn, and Long Island
Manhattan District Attorney Cyrus R. Vance, Jr., New York City Police Commissioner
James P. O’Neill, and New York City Department of Investigation (“DOI”) Commissioner
Mark G. Peters today announced the indictment of multiple individuals and companies for
maintaining an unlawful monopoly on the towing industry in New York City through an
elaborate series of schemes involving shell companies, insurance fraud, bid rigging, and other
crimes. Seventeen individuals and ten companies are charged in a series of New York State
Supreme Court indictments with Enterprise Corruption, Scheme to Defraud in the First
Degree, Conspiracy in the Fourth Degree, and Offering a False Instrument for Filing in the
First Degree, among other charges.
[1]
“If you were involved in a collision between June 2015 and December 2017 and received
assistance from a tow company, chances are, you were an unwitting customer of an illegal
enterprise that dominated New York City’s towing industry until our takedown today,” said
Manhattan District Attorney Cyrus R. Vance, Jr. “In order to ensure fair competition and
encourage entrepreneurs to set up shop here in the City, we cannot allow this type of
systemic fraud and abuse to persist within any industry. As alleged in this case, the
defendants worked in concert to maintain a violent monopoly on the city’s towing business,
in the kind of industrywide racket that harkens back to an earlier era. The City may have
changed, but in certain trades, pervasive corruption still exists, and I thank our partners,
including DOI and the NYPD, for their partnership and assistance with this investigation.”
DOI Commissioner Mark G. Peters said: “These defendants exploited the tow truck
licensing procedures of New York City to advance their fraud, according to the charges.
Intentionally fabricating information to the City and corrupting its procedures is a crime. In
partnership, the Manhattan District Attorney’s Office, NYPD, and DOI will work together
to root out corruption and strengthen the procedures governing this industry.”
New York City Sheriff Joseph Fucito said: “It is important for our citizens to have
confidence in the integrity of the towing industry that provides so many public safety
services for our roadways. The Department of Finance, Office of City Sheriff stands with
our partners, the Manhattan District Attorney’s Office, and NYPD to investigate and
uncover both criminal activity and unpaid tax liabilities.”
Regional Director of the Northeast Region of the NICB Kevin Gallagher said: “The
National Insurance Crime Bureau would like to applaud the Manhattan District Attorney’s
Office and the New York City Police Department for their continued efforts in addressing
insurance fraud and related crime in New York. The cost of insurance fraud and related
crimes is shared by all consumers and it is important that we identify and prosecute those
responsible for raising our insurance expenses. This investigation sends a strong message to
others who may be contemplating engaging in insurance related crimes. We look forward to
our continued partnership with the NYPD and Manhattan District Attorney’s Office in
combating insurance related crimes for all New Yorkers.”
The indictments are the result of a long-term, joint investigation into illegal conduct and
fraud in the towing industry by the Manhattan District Attorney’s Office’s Rackets Bureau,
NYPD Criminal Enterprise Investigations Section (“CEIS”), and DOI, with additional
assistance by the NYC Sheriff’s Office, New York State Department of Taxation and
Finance, and National Insurance Crime Bureau (“NICB”).
The indicted individuals include: JAIME BAUTISTA, JOSEPH CASTILLO, DAVID
CONTI, GEORGE COPPOLINO, CARL FAVA, JESUS GARCIA, DOMENICK
GENISE, MIGUEL HERNANDEZ, DAUNTE HUFF, MICHAEL MAZZIO,
ANGELO MAZZIO, SALVATORE MAZZIO, EDWIN ROIG, DANIEL
STEININGER, KAREN STEININGER, NORMAN TEITLER, and MAURECE
WIMBERLY. The indicted companies include: APPLE TOWING, INC., AUTHORIZED
AUTO BODY, INC., BROADWAY CAR SALON, INC., D&D’S IMPRESSIVE AUTO
COLLISION, INC., FACTORY PLUS COLLISION, INC., MIKE’S HEAVY DUTY
TOWING, INC., RJN FAMILY ENTERPRISES, INC. D/B/A TABS CONSULTING,
INC., SOUTHSIDE COLLISION, INC., SOUTHSIDE COLLISION AND TOWING,
INC., and TOW-ARRIFIC, INC.
Daniel Steininger’s Criminal Enterprise
DANIEL STEININGER, 44, managed a criminal enterprise (the “STEININGER
ENTERPRISE”) composed of individuals and corporations that worked together to restrict
competition in the towing industry in New York City, maximize auto body work at their
shops by fraudulently acquiring tow truck companies and their licenses, and engage in
insurance fraud by inflating insurance claims for the work done at the defendants’ auto body
shops. The STEININGER ENTERPRISE also colluded with other towing companies to infiltrate additional towing markets for heavy duty towing and New York City’s arterial
highway towing program.
Citywide Towing Scheme
In New York City, towing businesses are regulated through a series of operating
requirements and service area agreements that include specific licensing rules set out by the
New York City Department of Consumer Affairs (“DCA”), geographic service zones, and
rotation programs called the Direct Accident Response Program (“DARP”) and Rotation
Tow Program (“ROTOW”). Through these programs, the NYPD maintains a rotating roster
of participating companies that are summoned to locations throughout the city to remove
disabled vehicles.
According to the indictment and documents filed in court, between June 2015 and
December 2017, STEININGER managed a fraudulent monopoly on the towing industry in
New York City through a coordinated criminal conspiracy involving his co-defendants, their
companies, and the manipulation of towing industry regulations.
For example, STEININGER, the owner of D&D’S IMPRESSIVE AUTO COLLISION,
INC. (“D&D AUTO”), a towing company and auto body repair facility, employed the
assistance of NORMAN TEITLER, 74, who acted as a broker and helped the defendant
purchase additional towing companies. STEININGER, however, failed to notify DCA
about the acquisitions, which would have violated an ownership transfer rule known as “the
10% rule” and require the defendant’s new companies to hold towing licenses for a period
of at least one year before becoming re-eligible for DARP participation. Consequently, by
purchasing the companies without DCA’s knowledge, STEININGER was able to acquire
multiple DARP licenses without qualifying for them, which led to the companies—all of
which were controlled by STEININGER—being placed on the same rotating collision
response rosters multiple times in different geographic zones.
These companies included TOW-ARRIFIC, INC., which listed STEININGER’s sister,
KAREN STEININGER, 38, as president of the company, as well as SOUTHSIDE
COLLISION AND TOWING, INC., and SOUTHSIDE COLLISION, INC., which were
registered to DAVID CONTI, 44. Both of the tow truck companies were also associated
with a number of auto body repair facilities that functioned as fronts within the
STEININGER ENTERPRISE’s organization, including AUTHORIZED AUTO BODY,
INC., BROADWAY CAR SALON, INC., and FACTORY PLUS COLLISION, INC. As
an additional requirement for participation in DARP and ROTOW programs, towing
companies must maintain a licensed shop or storage yard within the designated service zone.
DAUNTE HUFF, 40, was tasked with ensuring that STEININGER’s various shell
companies passed inspections, when in reality, many of these locations lacked staffing,
business records, or any of the other statutory requirements for storing vehicles.
Tow truck drivers who were part of the STEININGER ENTERPRISE also disregarded the
rotation programs altogether and engaged in a practice known as “chasing” by monitoring
police radio transmissions, identifying collision sites, and racing to the incident location to
secure jobs ahead of competitors and before a responding NYPD officer could summon a
DARP company to the scene. Occasionally, competitors arrived at a location only to find that one of STEININGER’s associates was already soliciting business from a potential
customer, leading to situations in which conflict, violence, and retribution took place.
STEININGER encouraged his drivers to exert their authority in geographic areas controlled
by his companies and instructed drivers to “show some force” and “cause a ruckus.” In one
instance, driver JAIME BAUTISTA, 35, assaulted a bystander following an altercation with a
competitor. In other instances, drivers damaged rival vehicles as a warning or form of
retaliation, which was called “blasting” or “booming.”
In addition to geographic service zones, STEININGER, his co-defendants, and their
companies monopolized several types of towing jobs, including large capacity vehicles such
as tractor trailers. Because no DARP-equivalent exists for incidents involving heavy duty
vehicles, chasing is prevalent, and the first company to arrive on scene typically claims the
clean-up and tow job.
Arterial Towing & Bid Rigging
STEININGER and his co-defendants also established a fraudulent monopoly on towing
jobs involving city highways. Under current regulations, only the exclusive permit holder is
allowed to tow a disabled vehicle from a designated highway segment; the contract is not
transferrable and subcontracting is not typically permitted. However, MICHAEL MAZZIO,
49, ANGELO MAZZIO, 53, and SALVATORE MAZZIO, 40, who controlled the permits
for multiple highway segments, subcontracted collision work to companies controlled by
STEININGER and his co-defendants in exchange for a quarterly fee of approximately
$20,000 and a portion of the proceeds from resulting insurance claims. This agreement was
overseen by CARL FAVA, 58, and GEORGE COPPOLINO, 53.
Later, in 2017, the NYPD formally reopened the bidding process and sought applications
from tow truck companies seeking to service multiple highway segments. Working together,
the defendants manipulated the application and bidding process to establish a monopoly on
arterial towing jobs involving city highways.
For example, DANIEL STEININGER and KAREN STEININGER, as well as their
respective companies, D&D AUTO and TOW-ARRIFIC, INC., agreed to submit
“competing” applications for control of the same highway segments in order to increase the
odds that one of their companies would be awarded a contract. TEITLER and his company,
RJN FAMILY ENTERPRISES, INC. d/b/a TABS CONSULTING, INC., also assisted
multiple companies with fraudulent application materials.
Insurance Fraud
As charged in the indictment, between June 2015 and April 2017, auto body shop managers
JOSEPH CASTILLO, 44, MIGUEL HERNANDEZ, 32, EDWIN ROIG, 59, and
MAURECE WIMBERLY, 45, participated in the theft of hundreds of thousands of dollars
from insurance companies under the direction of STEININGER and his co-defendant,
DOMENICK GENISE, 44, who instructed the managers to inflate insurance claims
through fraudulent methods including:
*Charging for additional damage the defendants themselves caused to vehicles after
removing a disabled vehicle from a collision site, a practice known as “damage
enhancement.”
• Claiming to perform repairs that were never made.
• Replacing parts that did not need to be replaced.
• Claiming that vehicles were towed when, in fact, they were not.
• Billing insurance companies for new parts that were actually used parts.
The defendants also fraudulently inflated insurance claims by transporting vehicles directly
to STEININGER’S repair facility, D&D AUTO, from FACTORY PLUS COLLISION,
INC., in order to receive higher claim rates for labor and materials.
Tax Fraud and Money Laundering
STEININGER, GENISE, BAUTISTA, and CONTI also laundered the proceeds obtained
through various schemes by using check cashers to convert insurance claim checks made
payable to their companies. The checks represented millions of dollars in collective insurance
claims. Both STEININGER and GENISE are also charged with falsely filing personal
income tax returns that failed to report this additional income.
The Manhattan District Attorney’s Office’s Asset Forfeiture Unit is also filing a lawsuit
against the indicted defendants seeking the forfeiture of more than $19 million associated
with the alleged scheme.
District Attorney Vance thanked the following organizations and individuals for their
assistance with the investigation: NYPD CEIS; DOI, and in particular, Special Investigator
Anastasia Plakas, First Deputy Inspector General Mary Kozlow, and Inspector General Chin
Ho Cheng (DCA), working under the supervision of Associate Commissioner Andrew
Brunsden, Deputy Commissioner and Chief of Investigations Susan Lambiase, and First
Deputy Commissioner Lesley Brovner; DCA; Geico General Insurance Company;
Progressive Casualty Insurance Company; Allstate Insurance Company; State Farm Mutual
Automobile Company; Liberty Mutual Insurance; and Metropolitan Property & Casualty
Insurance Company.
[1] The charges contained in the indictments are merely allegations, and the defendants are presumed innocent
unless and until proven guilty. All factual recitations are derived from documents filed in court and statements
made on the record in court.
Defendant Information:
DANIEL STEININGER, D.O.B. 12/8/1973 Hempstead, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Criminal Tax Fraud in the Second Degree, a class C felony, 1 count
• Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 4 counts
• Criminal Tax Fraud in the Third Degree, a class D felony, 2 counts
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 36 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 4 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 4 counts
APPLE TOWING, INC.
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
AUTHORIZED AUTO BODY, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
JAIME BAUTISTA, D.O.B. 9/5/1982 Bronx, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
BROADWAY CAR SALON, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count
JOSEPH CASTILLO, D.O.B. 6/22/1973 Commack, NY
Charged:
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
DAVID CONTI, D.O.B. 3/14/1973 Franklin Square, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 5 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
GEORGE COPPOLINO, D.O.B. 4/22/1964 Queens, NY
Charged:
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
D&D’S IMPRESSIVE AUTO COLLISION, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 4 counts
FACTORY PLUS COLLISION, INC.
Charged:
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count
CARL FAVA, D.O.B. 1/15/1960 Forked River, NJ
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E Felony, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
JESUS GARCIA, D.O.B. 4/13/1984 White Plains, NY
Charged:
• Conspiracy in the Fifth Degree, a class A misdemeanor, 1 count
• Contract or Agreement for Monopoly in Restraint of Trade, 1 count
DOMENICK GENISE, D.O.B. 3/16/1973 Oceanside, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Criminal Tax Fraud in the Third Degree, a class D felony, 2 counts
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E Felony, 1 count
• Conspiracy in the Fifth Degree, a class A misdemeanor, 1 count
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
MIGUEL HERNANDEZ, D.O.B. 06/02/1985 Bronx, NY
Charged:
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count
DAUNTE HUFF, D.O.B. 7/23/1977 Queens, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 4 counts
• Offering a False Instrument for Filing in the First Degree, a class E felony, 5 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 1 count
ANGELO MAZZIO, D.O.B. 9/2/1964 Queens, NY
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
MICHAEL MAZZIO, D.O.B. 10/11/1968 or 10/28/1968 Queens, NY
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 3 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
SALVATORE MAZZIO, D.O.B. 5/12/1977 Queens, NY
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
MIKE’S HEAVY DUTY TOWING, INC.
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 3 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
RJN FAMILY ENTERPRISES, INC. D/B/A TABS CONSULTING, INC.
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 18 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
EDWIN ROIG, D.O.B. 3/3/1958 Queens, NY
Charged:
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
SOUTHSIDE COLLISION AND TOWING, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
• Offering a False Instrument for Filing in the First Degree, a class E felony, 5 counts
KAREN STEININGER, D.O.B. 7/22/1979 Queens, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 16 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 1 count
NORMAN TEITLER, D.O.B. 7/30/1943 Staten Island, NY
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 18 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
TOW-ARRIFIC, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 11 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
MAURECE WIMBERLY , D.O.B. 7/8/1972 Queens, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Contract or Agreement for Monopoly in Restraint of Trade, 1 count