MAYOR DE BLASIO APPOINTS RICHARD A. CARRANZA AS SCHOOLS CHANCELLOR

Superintendent of Houston Independent School District during Hurricane Harvey

Proven record of narrowing the achievement gap, turning around struggling schools and championing education for English Language learners in diverse cities

  Mayor Bill de Blasio  appointed Richard A. Carranza as New York City’s next Schools Chancellor. As Superintendent of the Houston Independent School District, Carranza led the effort to re-open schools after Hurricane Harvey. Carranza also previously served as the Superintendent of the San Francisco Unified School District, where he raised graduation rates to historic highs. With a strong commitment to equity and excellence, Carranza has a proven record of narrowing the achievement gap and turning around struggling schools in these diverse districts.

“Richard Carranza understands the power of public education to change lives, and he has a proven record of strengthening public schools and lifting up students and families,” said Mayor de Blasio. “He understands the tremendous work New York City educators do every day to put our children on the path to success. Richard is the right person to lead our school system forward as we build on the progress we’ve made over the past four years and make our vision of equity and excellence for every child a reality. Carmen Fariña leaves a tremendous legacy not only from her four years as Chancellor, but as an inspiring and innovative educator and public servant for more than 50 years.”

“With a proven record of leadership and success in Houston, San Francisco and Las Vegas, and a warmth that will help him connect with students, parents and teachers alike, Richard Carranza is uniquely well-positioned to build on the incredible progress we’ve made here in New York City. Richard understands that schools are so much more than the places our children go to learn—they are the heart of our communities. I look forward to working closely with him to ensure all of NYC’s children and their families thrive,” said First Lady Chirlane McCray.

"I am thrilled Richard will be New York City Schools Chancellor,” said Chancellor Carmen Farina. “We are philosophically on the same page and he has a proven track record as an educator with a laser focus on what's in the classroom. He's made critical investments in professional development, strengthened the leadership pipeline for principals and has immersed himself in the community to empower families. Every step of his career, he's focused on equity for all not just some. I know he will deepen the Equity & Excellence agenda and bring new ideas that will make New York City better." 

“As the son of blue collar workers and a lifetime educator, it is an honor to serve New York City’s 1.1 million children as Schools Chancellor,” said Richard Carranza. “I want to thank the Mayor and First Lady for the opportunity to join an administration that knows public education is an investment in our future. I will work every day to further the progress Chancellor Fariña has made in strengthening our public schools for generations to come.”

In Houston, Carranza was widely praised for leading the successful effort to re-open schools two-weeks after Hurricane Harvey. This included coordinating transportation for students living in shelter and providing counseling for all students and staff. During his eight years as Deputy Superintendent and then Superintendent in San Francisco, Carranza drove remarkable progress in academic outcomes, outpacing gains in the state and narrowing the achievement gap.  He raised graduation rates for African-American students by 13.9 percentage points, and for Hispanic students by 15.4 percentage points, significantly faster than the overall growth rates in California as a whole.

About Richard A. Carranza

Richard A. Carranza has served as Superintendent of the Houston Independent School District since August 2016. HISD is the largest school district in Texas and the seventh largest district in the United States, with a predominately Hispanic and Black student population.

Prior to Houston, Carranza worked for the San Francisco Unified School District, first as Deputy Superintendent for Instruction, Innovation and Social Justice then Superintendent. Before moving to San Francisco, he served as Northwest Region superintendent for the Clark County School District in Las Vegas, where he oversaw 66 schools with more than 66,000 students. He began his career as a high school, bilingual social studies and music teacher, then a principal in Tucson.

Carranza is the past chairman of the Board of Directors for the Council of the Great City Schools, where he served as a national spokesperson on significant issues facing urban school districts. He also served on the Board of Directors of the Association of Latino Administrators and Superintendents, the National Commission on Teaching and America’s Future, the American Association of School Administrators Executive Committee, and the K to College Advisory Board.

Education Week profiled Carranza as a national 2015 Leader to Learn From. He earned a bachelor of arts in secondary education from the University of Arizona and a master of education with distinction in educational leadership from Northern Arizona University. He has completed his doctoral coursework through Northern Arizona University and is currently pursuing a doctorate of education through Nova Southeastern University in Educational leadership.

Carranza is a fluent Spanish-speaker and accomplished mariachi musician. He is married to Monique and has two daughters. 

News From Congressman Eliot Engel

Engel Statement on March 5^th Deadline for DACA Renewal

  “Today is the day DREAMers have been dreading since President Trump unilaterally decided to end the Deferred Action for Childhood Arrivals program, more commonly known as DACA. It’s a sad day indeed.

“For months, Congress, under Republican rule, has done nothing but pay lip-service to the very real problem the President created when he killed DACA. Despite a near constant outcry from Democrats, advocates, DREAMers themselves, their friends, and their families, the GOP has done nothing. As a result, 800,000 DACA recipients have been left to twist in the wind, with hundreds losing their legal status every single day, opening them to the very real possibility of deportation. Though, court rulings have provided temporary reprieve by halting the termination of DACA, DREAMers still urgently need a permanent legislative fix. Unfortunately, there appears to be no solution in sight from Republican leadership, which is absolutely shameful.

“As discouraging as this process has been, it’s not at all surprising. The GOP has been pushing a not-so-subtle xenophobic agenda for some time now, and the plight of the DREAMers was never a real priority to their party. If they really cared about DREAMers, they could have at any point in time passed a continuing resolution that included a DACA renewal. But instead, they used these kids as a bargaining chip to try and advance their hardline, anti-immigrant agenda.

“Since the decision was made to end DACA, Congress has passed five continuing resolutions to fund the government on a short-term basis. I have voted against all five of them because they did not protect our DREAMers. The time for talk is over. Republicans must immediately bring to the floor a clean Dream Act before more families are torn apart by their heartless ploy. Enough games.”

STATEMENT ON STATE DEPARTMENT FAILURE TO USE ANTI-PROPAGANDA FUNDING

  Representative Eliot L. Engel, Ranking Member of the House Committee on Foreign Affairs, today made the following statement regarding the Department of State’s reported failure to use $120 million designated to combat Russian propaganda:

“Weeks after Secretary Tillerson lamented that it’s ‘very difficult’ to stop Russia’s meddling in our elections, it’s becoming clearer and clearer that this Administration isn’t even interested in trying. Last summer, I pressed the State Department to use the resources Congress provided to push back on Russian propaganda, yet the Department hasn’t spent a single dollar. I’m tired of excuses and I’m tired of waiting. When Secretary Tillerson appears before our Committee later this month, I expect to hear why this Administration has again ignored Congress and what his Department intends to do to deal with this attack on our democracy.”

STATE COMPTROLLER DiNAPOLI ANNOUNCES SALE OF GENERAL OBLIGATION BONDS

Competitive Offering to Feature Tax-Exempt and Taxable Bonds

 State Comptroller Thomas P. DiNapoli today announced the details of the competitive sale scheduled for March 8 of tax-exempt and taxable New York State General Obligation bonds totaling $215.2 million. The state expects to sell $146.2 million for new money transportation, education and environmental purposes.  Depending on market conditions, the state also expects to sell $69 million to refund a portion of certain outstanding General Obligation bonds to reduce the state’s debt service costs.

The net proceeds of $123.7 million of the new money portion of the Series 2018A Tax-Exempt Bonds will finance projects authorized by the following voter-approved bond acts: Environmental Quality (1972), Environmental Quality (1986), Clean Water/Clean Air (1996), Rebuild and Renew New York Transportation (2005) and Smart Schools (2014). The net proceeds of $63.6 million of the refunding portion of the Series 2018A Tax-Exempt bonds will refund certain outstanding General Obligation bonds. The Series 2018A Tax-Exempt Bonds will mature over 14 years.

The net proceeds of $36.6 million of the Series 2018B Taxable Bonds will finance projects authorized by the following voter-approved bond acts: Environmental Quality (1972), Environmental Quality (1986), Clean Water/Clean Air (1996), Rebuild and Renew New York Transportation (2005) and Smart Schools (2014). The Series 2018B Taxable Bonds will mature over 10 years.

The net proceeds of $12.7 million of the Series 2018C Tax-Exempt Refunding Bonds will provide funds to refund certain outstanding state General Obligation bonds. The Series 2018C bonds would mature over 9 years.  

The bonds will be awarded pursuant to electronic competitive bidding to be held via BiDCOMP/Parity on behalf of the Comptroller of the State of New York on March 8, 2018 unless postponed, as set forth in the Notices of Sale published in The Bond Buyer on March 2, 2018. The bonds will be dated the date of delivery, expected to be March 15.

A copy of the Preliminary Official Statement is available.

TO BATTLE CONGESTION, MAYOR DE BLASIO ANNOUNCES STEPPED-UP ENFORCEMENT OF “DON’T BLOCK THE BOX”

Mayor’s congestion initiative includes “Clear Intersections” which will see NYPD write violations at fifty targeted intersections in all five boroughs

  Mayor Bill de Blasio announced today that the NYC DOT and the NYPD had prepared enhancements to 50 key intersections where block- the-box violations will now be aggressively enforced.  DOT Commissioner Polly Trottenberg and NYPD Chief Thomas Chan made the “Clear Intersections” announcement at one of the targeted intersections -- at Broadway and Broome Street in the SoHo section of Manhattan.

“Late last year, we announced a series of initiatives designed to address congestion issues around New York City, a symptom of the city’s record population and economic vitality,” said Mayor de Blasio.  “Blocking the box is one area where focused NYPD enforcement can and will make a big difference to keep traffic moving around hotspots in every borough.”

“The NYPD is dedicated to the Mayor’s initiative to improve traffic flow and to move traffic safely,” said NYPD Chief of Transportation Thomas Chan.  “Drivers who block intersections are contributing to overall congestion, and their disregard of this particular traffic rule comes at the expense of other drivers including emergency vehicles.  Additionally, pedestrians are endangered when they have to navigate between vehicles that are blocking crosswalks.  The NYPD’s enforcement efforts will reduce congestion and improve pedestrian safety.  Motorists should be advised that officers will be out in force issuing summonses to those who block the box.”

“Today, DOT and NYPD are bringing back “don’t block the box” to 50 busy intersections around the City,” saidDOT Commissioner Polly Trottenberg.  “We know traffic can be frustrating, but blocking the box just causes gridlock for everybody — bus riders, pedestrians, cyclists and your fellow motorists.  Please be courteous and safe — and don’t block the box.”

In Manhattan, vehicle travel times have declined by 23% since 2010.  Drivers who enter intersections without sufficient space on the other side “block-the box,” which can have cascading effects on traffic and create dangers to pedestrians who cannot cross streets safely. The Clear Intersections effort includes 50 key intersections citywide and is part of a comprehensive series of efforts announced by Mayor Bill de Blasio last October to ease congestion in busy thoroughfares across the five boroughs.  Block-the-box violators face minimum fines of $115 and possible points that can lead to the loss of a driver’s license. 

As part of Clear Intersections, DOT has installed special markings and/or updated signage at key intersections (see list below) to make drivers aware of the restrictions.  The City chose intersections along major routes leading to river crossings, highway on-ramps, and commercial centers. NYPD will increase enforcement at these locations to keep traffic moving, hiring an additional 50 uniformed officers to enforce block-the-box violations.

Clear Intersections will be in effect at the following locations:

Manhattan

1.         Broadway & West 57 Street

2.         Dyer Avenue & West 41 Street

3.         Fort Washington Avenue & West 165 Street

4.         3 Avenue & East 36 Street

5.         Broadway & Spring Street

6.         Delancey Street & Bowery

7.         Delancey Street & Allen Street

8.         9 Avenue & West 207 Street

9.         10 Avenue & West 40 Street

10.       West Side Highway (9A)/12 AV & West 51 Street

11.       Broadway & Canal Street

12.       Canal Street & Centre Street

13.       Delancey Street & Essex Street

14.       Hudson Street & Beach Street/Ericsson Place

15.       3 Avenue & East 57 Street

16.       3 Avenue & East 58 Street

17.       3 Avenue & East 59 Street

18.       3 Avenue & East 35 Street

19.       6 Avenue & Watts Street

20.       10 Avenue & West 41 Street

21.       Broadway and Broome Street

22.       Broadway and Chambers Street

23.       Broadway & West 66 Street

24.       Amsterdam Avenue & 181 Street

25.       Canal Street & West Broadway

26.       Hudson Street & Laight Street

27.       Hudson Street & Vestry Street

Queens

28.       Queens Boulevard & Skillman Avenue

29.       Northern Boulevard & Queens Boulevard

30.       Queens Boulevard & Roosevelt Avenue

31.       Astoria Boulevard & 31 Street

32.       21 Street & 49 Avenue

33.       Laurel Hill Boulevard & 65 Place

34.       Queens Midtown Expressway *N S/R & Grand Avenue

35.       Main Street & Roosevelt Avenue

36.       71 Avenue & Austin Street

37.       37 Avenue & 138 Street

38.       Metropolitan Avenue & 60 Street

39.       Queens Plaza South (SR) & 28 Street

The Bronx

40.       135 Street & Third Avenue

Brooklyn

41.       Flatbush Avenue & 8 Avenue

42.       Atlantic Avenue & Pennsylvania Avenue

43.       86 Street & 7 Avenue

44.       Tillary Street & Jay Street

45.       Flatbush Avenue & Myrtle Avenue

Staten Island

46.       College of Staten Island & Victory Boulevard

47.       Narrows Road South & Hylan Boulevard w/b @ Steuben Street

48.       Narrows Road South & Hylan Boulevard

49.       Narrows Road South & Fingerboard Road

50.       Narrows Road North & Fingerboard Road

EDITOR'S NOTE: 

In typical Mayor Bill de Blasio fashion we see only one of fifty intersections targeted in the Bronx, while five intersections are targeted in Staten Island. It appears that Staten Island is no longer the 'Forgotten Borough', but that the Bronx has become the 'New Forgotten Borough'.

We also can not see why this enforcement has not been ongoing from the first day of the first term of the current mayor. Did this mayor all of a sudden realize the problems of New York City? Did it take four years for a mayor who was the Public Advocate to find out the needs of New York City? But in the long run it will be the drivers of New York City who pay for this, especially the 'For Hire Drivers' who wind up getting stuck inside the Box. Where is the City Council 'Horse, Buggy, and Stagecoach' Cowboy Committee Chair on this new enforcement? 

South Bronx Unite No New Prisons -: Not in the South Bronx, Not Anywhere

No New Prisons:

Not in the South Bronx,

Not Anywhere

TOWN HALL MEETING
Thurs, March 8, 6-8 pm 
P.S. 65 Mother Hale Academy
677 E 141st St (at Cypress) 
* organized by the Diego Beekman Mutual Housing Association *

We unequivocally reject the city’s plan to site a new jail at 320 Concord Avenue in our South Bronx neighborhood, and we oppose the construction of any new jails in New York City.  The decision to construct a new jail in the South Bronx, made without any input from the local community, is a slap in the face of South Bronx residents who have suffered from top-down city planning decrees that put the interests of the powerful above the needs of the people in the nation’s poorest Congressional District. From the planning of the Cross Bronx Expressway to the relocation of Fresh Direct to our community’s waterfront, decisions are made for our community with complete disregard for the people who live here. Our vision for the health and wellbeing of our people is constantly eclipsed by the wants of those outside our community.

 

The siting of a new jail at 320 Concord Avenue is in direct conflict with locally-driven, grassroots neighborhood efforts to develop our community in a way that respects the long history of organizing by Bronxites who struggled through years of abandonment and neglect. Building on a twenty-two year struggle to stabilize the Diego Beekman housing complex and the surrounding community, local residents have worked to develop the Diego Beekman Neighborhood Plan, with the lot at 320 Concord Avenue established as a neighborhood Hub for housing, commerce, and community space. (see Diego Beekman Open Letter to Mayor de Blasio and NYC Council Speaker Johnson in Opposition to A New South Bronx Jail, which we support).

 

The South Bronx already carries a disproportionate burden of New York City’s failure to invest in sustainable ways to address its social and environmental problems. The city’s failure to provide genuinely affordable housing results in a concentration of homeless shelters in the South Bronx. The failure to meaningfully address heroin addiction in our community (before the opioid crisis became mainstream) results in similar concentration of methadone clinics in our neighborhood. The excess consumption of New Yorkers hits us in the form of 5,000 tons of trash processed daily in the South Bronx waste transfer station. And the desire of wealthier New Yorkers for gourmet food delivered to their doorstep will soon bring an additional 1,000 diesel truck trips per day through our neighborhood that has the highest asthma rate in the nation.

 

In the same way, New York City’s failure to invest more aggressively in alternatives to incarceration and more restorative ways to deal with crime now results in the plan for a new jail in the South Bronx. Our opposition to the new jail is in no way a rejection of the people caught up in the criminal justice system. A disproportionate number of the city’s prisoners are from the South Bronx and they too are members of our community. We desire fairer, swifter, and more humane forms of justice for our brothers and sisters in the justice system, and for that reason we applaud the city’s plan to close Rikers Island.

 

Our opposition to the construction of a new jail goes beyond “Not In My Back Yard” to a broader concern about how the city’s resources are allocated to deal with people in conflict with the law. We are not just against the siting of a new jail in our neighborhood – we don’t want a new jail built period. Over the last 25 years, the city’s jail population has fallen from a high of 21,674 in 1991 to under 9,000 earlier this year, accomplished through a combination of falling crime rates and criminal justice reforms. The plan to replace Rikers assumes a need for 5,000 jail beds in ten year as reforms continue. We challenge the city to come up with a more aggressive plan to further reduce the number of people in jail, thus making the need to construct a new facility unnecessary. Through a combination of bail reform, decriminalization of minor offenses, and investment in alternatives to incarceration, we believe this is more than possible.

It is not lost on us that in New York City’s plan to replace Riker with smaller facilities, the Bronx is the only borough where a new facility is planned for construction. In Brooklyn, Queens, and Manhattan, the plan is to repurpose existing jail complexes, thus not expanding the footprint of the criminal justice system in these boroughs. But in the Bronx, the borough that has suffered the most disinvestment, we see once again the pattern of spending millions on an ever-expanding criminal justice infrastructure. The new Bronx County Criminal Court that opened in 2007 cost $352 million dollars to construct. The new 40th Police Precinct is expected to cost $51 million to build. The plan to renovate the Horizon Juvenile Detention Center to accommodate adolescents from Rikers is expected to cost $170 million. The construction of a new jail to replace Rikers (when we already have the Vernon C. Bain Detention Center in Hunts Point) will likely cost more than all the aforementioned developments. And yet when our community asks for the renovation of community centers, the creation of green spaces, living wage jobs, truly affordable housing, and other investments in positive supports that would alleviate the conditions that push so many into the criminal justice system, we are told that the resources don’t exist.

 

We will not accept more spending on infrastructure that coerces and controls when our neighborhood is in desperate need of community-driven development. We will not accept the construction of a new jail, in the South Bronx, or anywhere. We will not accept a vision for our community that relies on caging people instead of investing in the resources they need to thrive.

For these reasons, we categorically reject the building of a new jail in the South Bronx, and call on the city to invest its economic resources in people, not prisons.

Film Producer Found Guilty In Multimillion-Dollar Investment Scheme

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID BERGSTEIN, a film producer and entrepreneur, was convicted yesterday of defrauding investors of more than $26 million.  BERGSTEIN will be sentenced on June 8, 2018, by U.S. District Judge P. Kevin Castel, who presided over the four-week trial. 

Co-defendant Keith Wellner had previously pled guilty and has been cooperating with the Government.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As a unanimous jury swiftly found, David Bergstein defrauded investors out of more than $26 million.  He withheld material information, transferred funds without disclosing conflicts of interest, and misappropriated funds for his own use.  He now stands convicted of serious federal crimes.”

According to the Indictment and evidence presented at trial:

From 2011 through 2012, BERGSTEIN engaged in a scheme to defraud investors in Weston Capital Asset Management (“WCAM”), a New York-based registered investment adviser, by (i) concealing material information from Weston investors about financial transactions involving their money; (ii) transferring funds from one pool of Weston’s investors to make payments to, provide a security interest for, or otherwise benefit, another pool of Weston’s investors, without the required disclosures to investors concerning conflicts of interest; and (iii) misappropriating a portion of funds transferred from investor accounts for their own and others’ benefit.  BERGSTEIN orchestrated this scheme in part through two transactions involving Weston investors’ assets: first, a loan from a Weston fund called the Partners 2 (or “P2”) Fund, and, second, a swap agreement with a Weston fund called the Wimbledon TT Portfolio (the “TT Portfolio”). 

The Partners 2 Loan Scheme

In 2010, Weston agreed to a transaction with an entity named Gerova Financial Corporation (“Gerova”), an international reinsurance company, in which Weston sent assets from one of its hedge funds (the Wimbledon Financing Fund, or “WFF”) to Gerova in exchange for restricted shares of Gerova stock.  This exchange was intended to replace illiquid hedge fund assets with stock, which could be bought and sold more easily.  In 2011, however, Gerova’s stock price plummeted.  Weston subsequently sought to unwind the transaction, and Weston’s president was introduced to BERGSTEIN for this purpose.  BERGSTEIN and Weston’s principals subsequently formulated the outlines of a structure in which Weston would return its Gerova stock, receive its assets back from Gerova, and place those assets into another entity called Arius Libra Inc. (“Arius Libra”) as part of an investment in a separate business.  Certain payments would be made along the way to facilitate the transfers.  

In order to complete this transaction, BERGSTEIN and Weston’s principals agreed to loan money from the P2 Fund, another Fund operated and managed by Weston, to Arius Libra.  The purpose of this loan (the “P2 Loan”) was purportedly (i) to pay certain debts associated with Gerova, and (ii) to fund Arius Libra’s purported medical billing businesses.  BERGSTEIN arranged for the P2 Loan to be secured by certain of the assets of WFF.  Thus, in the event the P2 Loan was not repaid, the P2 Fund had the ability to liquidate WFF assets to make P2 investors whole, to the detriment of investors in WFF.  In total, approximately $9 million in investor money was disbursed from the P2 Fund pursuant to the P2 Loan. 

As BERGSTEIN well knew, however, P2 Fund investors were neither informed of the existence of the P2 Loan nor given any information about Arius Libra.  And no disclosures were made to inform either P2 Fund or WFF investors of the conflict of interest arising from the P2 Fund’s security interest in WFF assets, as BERGSTEIN also knew.  And although BERGSTEIN had represented to Weston that disbursements made pursuant to the P2 Loan would be used both to pay off Gerova creditors and to fund Arius Libra’s medical billing businesses, in fact, BERGSTEIN misappropriated millions of dollars of P2 Loan proceeds and used them to pay for, among other things, his own personal expenses, including credit card bills and attorney’s fees.

The TT Portfolio Swap Agreement Scheme

 

In late 2011, BERGSTEIN and Weston’s principals secretly arranged for Weston’s TT Portfolio to enter into a swap agreement with an entity controlled by BERSTEIN known as Swartz IP Services (“Swartz IP”), a transaction that was not disclosed to TT Portfolio investors.  As part of this swap agreement, BERGSTEIN arranged for approximately $17.7 million from the TT Portfolio to be transferred to to Swartz IP.  In exchange, BERGSTEIN agreed to provide certain investment returns and to meet investor redemption requests.  BERGSTEIN induced this transaction by misrepresenting to Weston’s principals that a wealthy investor had capitalized Swartz IP and guaranteed the transaction.

The TT Portfolio transaction was completed without disclosure to investors, even though, for other swap agreements, Weston had amended the TT Portfolio offering memorandum to reflect the particular swap agreement at issue.  Of the money that was transferred to Swartz IP, moreover, BERGSTEIN directed that approximately $3 million be transferred to the P2 Fund to pay back part of the P2 Loan.  BERGSTEIN thus arranged for money from one set of Weston’s investors (the TT Portfolio investors) to be used to pay back part of a debt owed to another set of Weston’s investors (the P2 Fund investors) – another conflict of interest that was not disclosed to P2 or TT Portfolio investors.

As a further part of the scheme, moreover, BERGSTEIN made false representations about Swartz IP’s assets and ability to meet redemption requests and secretly diverted TT Portfolio investor proceeds to pay BERGSTEIN’s personal expenses, including credit card bills, impressionist artwork, and private jets.

BERGSTEIN also gave a false and misleading investor presentation, made false investment disclosures, and distributed a fake loan note concealing the origin of the P2 Loan in order to attempt to conceal his criminal conduct.

BERGSTEIN, 55, of Hidden Hills, California, was convicted of the offenses set forth in the chart attached to this release.  He was remanded following the return of the jury’s verdict.  The statutory maximum sentences are prescribed by Congress and 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 Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the Office’s Criminal Investigators.

COUNT	CHARGE	MAXIMUM PENALTIES
1	Conspiracy to Commit Investment Adviser Fraud and Securities Fraud (18 U.S.C. § 371)	Five years in prison and a $250,000 fine or twice the gross gain or loss from the offense
2	Investment Adviser Fraud (15 U.S.C. §§ 80b-6 & 80b-17; 18 U.S.C. § 2)	Five years in prison and a fine of $10,000
3	Investment Adviser Fraud (15 U.S.C. §§ 80b-6 & 80b-17; 18 U.S.C. § 2)	Five years in prison and a fine of $10,000
4	Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)	20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
5	Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)	20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
6	Wire Fraud (18 U.S.C.      §§ 1343 and 2)	20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
7	Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349)	20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense