California Man Pleads Guilty To Multimillion-Dollar Fraud On Film Investors

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that STEVEN BROWN pled guilty today to defrauding victims of over $9.5 million by participating in a fraudulent scheme to solicit investments in feature-length films and documentaries based on misrepresentations and fraudulent documents.  BROWN pled guilty before United States Magistrate Judge Henry B. Pitman and is scheduled to be sentenced on July 18, 2018, at 2:00 p.m., before U.S. District Judge Kimba M. Wood. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As he admitted today, Steven Brown defrauded investors of millions of dollars by convincing them to invest in Hollywood films and documentaries with false promises and fraudulent documents.  Even after he was arrested, he continued his fraud and induced yet another investor to provide additional money using the same fraudulent tactics.  Now Brown’s scheme has been revealed, and he faces significant time for his scheme.”        

According to allegations in an Indictment and other documents filed in federal court, as well as statements made in public court proceedings:

From 2009 through 2017, STEVEN BROWN participated in a scheme in which he, along with co-conspirators, solicited investments in the marketing and production of feature-length films and documentaries from investors, including by furnishing them with fraudulent documents and by promising guaranteed returns, which never materialized.

In order to solicit these investments, BROWN and others made material misrepresentations about, among other things, their own investments in the films for which they were soliciting money, as well as investments that they claimed to have received from other investors.  To support their claims, BROWN and his coconspirators at times sent the victims falsified financial records that reflected investments in the films that had never actually been made.  BROWN and his coconspirators also told certain victims that their investments would be guaranteed by a fictitious entity, and provided falsified documents in support of these purported guarantees.  On one occasion, Brown sent an email to a victim attaching what purported to be a current bank statement for an account held by the fictitious entity, as well as an email from an executive at the fictitious entity guaranteeing the victim’s investment.  In fact, neither the account nor the executive actually existed.

BROWN continued to solicit investments in film projects based on misrepresentations even after being arrested on the criminal charges brought in this case.  In 2017, BROWN solicited an investment from a victim of the scheme in a film production and distribution company with which BROWN was purportedly involved by promising the victim a 50 percent return on the investment.  The victim’s funds were never returned and were, in part, used to pay expenses unrelated to any film projects.    

In total, BROWN and his co-conspirators solicited millions of dollars from their victims, allegedly to be used for either marketing or production costs associated with the various films.  In reality, however, the money that was received from these investors was primarily used to fund other projects, to pay back previously defrauded investors, and to pay the personal expenses of BROWN and his co-conspirators, including, among other things, the purchase of a condominium for BROWN.

BROWN, 48, of Los Angeles, California, pled guilty to one count of conspiring to commit wire fraud, which carries a maximum term of 20 years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.

A.G. Schneiderman Releases New Report On Mutual Fund Fees

Announces Agreement By 13 Major Firms To Make New And Enhanced Disclosures To Retail Investors Following Industry-Wide Investigation

Disclosures Will Affect 400 Actively Managed Mutual Funds; U.S. Mutual Funds Currently Manage Over $16 Trillion In Net Assets Nationwide 

AG Releases Report Finding Mutual Fund Firms Gave Unequal Access To Important Information About Actively Managed Funds; Firms Commended For Agreeing to Publish the Information For All Investors

AG Schneiderman: Firms Must Ensure That All Investors Have The Same Access To Information About Their Investment Options 

  Attorney General Eric T. Schneiderman announced that after an industry-wide investigation into mutual fund disclosures and fees, 13 major mutual fund firms—including those run by some of the largest players in the mutual fund industry—have agreed to voluntarily publish important information about their mutual funds to all retail investors. Under the agreements announced today, the firms will disclose new information that can help retail investors determine whether a higher-cost, actively managed mutual fund fits their investment goals better than another, lower-cost alternative.

The newly disclosed information, known as Active Share, measures the percentage of stock holdings in a fund’s portfolio that differs from that fund’s benchmark index—key information investors can use to determine whether a higher-fee, actively managed fund has the potential to beat the benchmark returns of a lower-cost, passively managed fund. The AG’s investigation found that while these major mutual fund firms regularly disclosed this information to well-heeled institutional and professional investors, retail investors were often excluded.

“These new disclosures will give Main Street investors access to critical information before making investment decisions for themselves and their families,” said Attorney General Schneiderman. “By working with us to help level the playing field for all investors, these firms are taking an important step forward. I encourage all mutual fund firms to follow suit.” 

A report issued today by Attorney General Eric Schneiderman’s Investor Protection Bureau, “Mutual Fund Fees and Active Share,” details the findings of an investigation into fees charged by actively managed mutual funds, their disclosures to investors, and their portfolio composition relative to their fees.

The Attorney General’s investigation considered fees and disclosures for over 2,000 actively managed mutual funds – mutual funds are a popular way for investors to diversify their savings, and today, nearly half of American households invest in mutual funds, either directly through individual and retirement accounts or indirectly through other investment vehicles. 

The key findings detailed in the report are:

• Actively managed funds are typically much more expensive investment options than index funds. On average, fees on an investment in an actively managed fund cost an investor almost 4.5x more per year than fees on an investment in a passive fund.
• Higher fees for actively managed mutual funds do not necessarily reflect a higher level of active management. When choosing among actively managed mutual funds, investors should not conclude that a higher fee necessarily reflects a higher level of active management, as measured by the fund’s variation from its benchmark. Based on a review of fees and disclosures for over 2,000 mutual funds, investors cannot necessarily assume that a high fee, or expense ratio, for a particular mutual fund means that the fund will have a high Active Share – in other words, an investor cannot look only to the fees charged to invest in a fund in order to assess the fund’s potential to outperform the market (or the risk of underperformance), as measured by the Active Share metric. 
• Fund managers use Active Share information to help analyze mutual fund investments, and mutual fund companies provide Active Share to some professional and institutional investors, but generally not to retail investors. The Active Share metric allows investors to understand how much a particular fund overlaps with or diverges from its benchmark index. While not an absolute indicator of active management, Active Share has become a widely-used metric for mutual fund managers.

Following the Attorney General’s investigation, 13 firms agreed to make Active Share information available to all mutual fund investors by committing to publish Active Share for their actively managed, equity-based mutual funds available to U.S. investors (the 14th firm surveyed by NYOAG – Fidelity Management & Research Company – was already publishing Active Share for its relevant funds). Each of these firms will post on their websites the Active Share of the relevant funds on a quarterly basis. The firms who have agreed to publish Active Share information are: AllianceBernstein LP; BlackRock, Inc.; The Dreyfus Corporation (a subsidiary of BNY Mellon); The Capital Group Companies, Inc. (American Funds); Columbia Management Investment Advisors, LLC; Eaton Vance Management; Goldman Sachs Asset Management, L.P.; JP Morgan Chase & Co.; OppenheimerFunds, Inc.; Nuveen, LLC (a subsidiary of TIAA); T. Rowe Price Associates, Inc.; USAA Asset Management Company; and The Vanguard Group, Inc. The report recommends that all mutual fund firms provide Active Share information to all investors equally. Most of the firms that have agreed to post Active Share information will do so beginning in spring 2018.

The report also notes that investors must be more vigilant than ever in an era when the Trump administration and Congress have taken steps to roll back federal regulations that protect investors when they make retirement investment decisions, like choosing to invest in actively management mutual funds. Retail investors often rely on the advice of brokers or financial advisors, and there is significant uncertainty regarding the standard of care those advisors owe to retirement investors under federal law. Accordingly, the report concludes that Americans saving for retirement must be especially vigilant in evaluating investment choices and the investment recommendations made by their advisors. The report advises that investors should understand Active Share and can consider asking for Active Share information when making mutual fund investment decisions.

MAYOR DE BLASIO ANNOUNCES COMPLETION OF ROOF REPLACEMENTS AT 65 NYCHA BUILDINGS

New roofs prevent mold and leaks in apartments for 13,000 residents, construction kicks off to replace another 78 roofs by next summer

  Mayor Bill de Blasio today announced that roofs have been completely replaced at 65 NYCHA buildings. These new roofs will benefit approximately 13,000 residents by reducing mold, which can cause asthma and other respiratory illness. This marks the completion of the first phase of a major roof replacement begun by the City in 2015. The first 65 roofs cost approximately $91.5 million, $8.5 million under budget. A second phase of 78 roofs, costing $100 million, has now entered construction and will be completed by June 2019.

The Mayor announced the roof replacement program’s progress at Queensbridge Houses, the largest public housing development in the United Sates. All 26 roofs at the development have been replaced for the first time in more than 30 years. In addition to new roofs, the de Blasio Administration has also installed free wifi throughout the development, 360 CCTV cameras and 858 security lights. Crime at Queensbridge has fallen 21% since 2013.

“Residents may never see the new roof over their heads, but they will feel the difference. We are targeting a major source of leaks and mold, making kids healthier and helping parents sleep easier. With the right resources, we can deliver real-time improvements to the quality of life for thousands of families,” said Mayor de Blasio.

“These new roofs mean real quality of life improvements for 13,000 residents,” said NYCHA Chair and CEO Shola Olatoye. “While only the first phase in a $1.3 billion investment, through these critical infrastructure repairs, we are making major strides toward achieving our NextGeneration NYCHA goal to provide safe, clean and connected communities for all public housing residents.”

The Mayor has dedicated $1.3 billion to repair 950 deteriorating roofs for 175,000 NYCHA residents. Leaky roofs are not only responsible for key sources of water and excessive moisture that causes mold in apartments, but also represent a danger to a building’s physical structure. This critical infrastructure upgrade will provide a long-term, cost-saving solution that will improve the quality of life for residents.

 Phase 1: COMPLETE

65 Roofs Fully Replaced  $91.5 Million

Borough	Development	number of buildings	Total City         Funds
Queens	Queensbridge North	13	$28,183,463.00
Queens	Queensbridge South	13	$27,863,809.00
Brooklyn	Albany 1 & 2	9	$9,870,447.00
Bronx	Parkside	14	$14,441,871.00
Brooklyn	Sheepshead Bay	16	$11,216,416.00

Phase 2: IN CONSTRUCTION

78 Roofs to be Replaced  $100 Million

Borough	Development	Number of buildings	Total City Funds
Manhattan	Wise Towers	2	$3,377,000.00
Manhattan	White	1	$1,733,000.00
Bronx	Sedgwick	7	$7,534,000.00
Manhattan	Saint Nicholas	13	$15,691,000.00
Brooklyn	Tilden	8	$4,682,000.00
Brooklyn	Cypress Hills	15	$13,726,000.00
Brooklyn	Breukelen	32	$53,352,000.00

The de Blasio Administration has made an unprecedented commitment to preserve and strengthen public housing. This investment is part of the Administration’s total commitment to $2.1 billion to support NYCHA’s capital infrastructure from Fiscal Year 2014 to Fiscal Year 2027 and $1.6 billion to support NYCHA’s operations from Fiscal Year 2014 to Fiscal Year 2022. This investment includes $1.3 billion to fix over 900 roofs, over $500 million to repair deteriorating exterior brickwork at nearly 400 buildings, and $140 million to improve security at 15 NYCHA developments.  The City waived NYCHA’s annual PILOT and NYPD payments to the City, relieving NYCHA of nearly $100 million in operating expenses a year. In January 2018, the Mayor announced $13 million to improve NYCHA’s response to heating emergencies this winter, followed by an additional $200 million for long-term heating improvements at 20 NYCHA developments.

Wave Hill Events April 18‒April 26 Earth Day Weekend!

Wed, April 18    2018 Horticultural Lecture #3: Timothy Young—Writers and Gardens in the Archives   

The stories of great gardens are told in their physical presence—and on paper. Archives show the planning and execution of gardens through journals and sketches. They also reveal the philosophy of the gardener. This lecture focuses on the archival legacies of several 20th-century writers and artists who built gardens, including Vita Sackville-West, Robert Dash and Rupert Barneby and Dwight Ripley. Timothy Young holds the title of Curator of Modern Books and Manuscripts at Beinecke Library at Yale University. Individual tickets: $25/$20 Wave Hill Member or student. Seating is limited, and advance reservations are recommended, online at wavehill.org. The lecture takes place at the New York School of Interior Design at 170 East 70^thStreet in Manhattan.

NEW YORK SCHOOL OF INTERIOR DESIGN, 6‒7:30PM

Sat, April 21    Family Art Project: Earth Day Gratitude Garden

Reflect upon the abundance of this Earth. What are your favorite things that grow, be they trees, bees, broccoli or bananas? Sculpt a miniature garden using oil clay in bright colors. Then share what you are thankful for on a paper flag, and plant it in our outdoor, communal “gratitude garden.” You’ll see that the more gratitude the garden is given, the more it grows! Free, and admission to the grounds is free until noon. Earth Day Weekend event.

WAVE HILL HOUSE, 10AM‒1PM

Sat, April 21    In The Shop: Spend $50, Receive a Reusable Tote

In honor of Earth Day, receive a reusable tote when you spend $50 or more in The Shop at Wave Hill. Earth Day Weekend event.

PERKINS VISITOR CENTER, 10AM‒4PM

Sat, April 21    Woodworking Workshop: Green Roof Birdhouse

Sharpen both your woodworking and gardening skills as you construct and plant a birdhouse with a rooftop of live succulent plants. Master carpenter and Director of Facilities Frank Perrone and Director of Public Programs Laurel Rimmer provide instruction and inspiration in this hands-on workshop. No previous carpentry experience required. Ages 12 and older welcome with an adult. Space is limited! $60 per project; 10% discount to Wave Hill Members. Registration required, online at wavehill.org or onsite at the Perkins Visitor Center. Earth Day Weekend event.

MEET AT WAVE HILL HOUSE, 10AM–4PM

Sat, April 21    Earth Day Garden Meditation

Use the garden landscape as inspiration this Earth Day weekend, with healer, artist and yogi Sara Hart of iHart Lens. Using the art of meditation and other healing arts, practice simple techniques to connect and feel grounded on any occasion, anywhere, any day. Indoor space is provided in case of rain. Registration is not required. Free, and admission to the grounds is free until noon. Earth Day Weekend event. 

ON THE GROUNDS, 11AM–NOON

Sat, April 21    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM‒NOON 

Sat, April 21    Wave Hill History Walk

Discover the fascinating history of Wave Hill’s architecture and landscape on a walk with a Wave Hill Garden Guide. Hear about the people who once called Wave Hill home, among them Mark Twain, Theodore Roosevelt, Bashford Dean and Arturo Toscanini. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 1PM

Sat, April 21    Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. Avifauna: Interplay of Birds + Habitatfeatures artworks that delve into the relationship between birds and their habitats—from the role birds play in propagating plants to changes in how natural and built environments affect migration patterns. Artists working in photography, video, artist books, wall painting, installation, drawing and sound include Tatiana Arocha, Tanya Chaly, Marna Chester, Nina Katchadourian, Paula McCartney, Jeff Mertz, Peter Morgan, Sarah Nicholls, James Proseck, Jenna Spevek and Fred Tomaselli. In the Sunroom Project Space, Adrienne Elise Tarver builds tactile plant sculptures that create an immersive, sheltering landscape. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Sun, April 22    Family Art Project: Earth Day Gratitude Garden

Reflect upon the abundance of this Earth. What are your favorite things that grow, be they trees, bees, broccoli or bananas? Sculpt a miniature garden using oil clay in bright colors. Then share what you are thankful for on a paper flag, and plant it in our outdoor, communal “gratitude garden.” You’ll see that the more gratitude the garden is given, the more it grows! Free with admission to the grounds. Earth Day Weekend event.

WAVE HILL HOUSE, 10AM‒1PM

Sun, April 22    In The Shop: Spend $50, Receive a Reusable Tote

In honor of Earth Day, receive a reusable tote when you spend $50 or more in The Shop at Wave Hill. Earth Day Weekend event.

PERKINS VISITOR CENTER, 10AM‒4PM

Sun, April 22    Pre-Concert Tea

Enjoy Afternoon Tea in the Mark Twain Room prior to today’s concert in Armor Hall. The Café at Wave Hill pairs a classic menu with an assortment of green, black and herbal teas. This traditional tea service includes the four classic elements of savory, scones, sweets and tea. The menu, presented by Great Performances, includes an array of tea sandwiches, scones and bite-sized desserts. Afternoon Tea also includes a glass of sparkling wine. Afternoon Tea Service is $36. Wave Hill Members receive a 10% discount. Advance registration is required online. We will take reservations until 5PM, Thursday, April 19.

WAVE HILL HOUSE, NOON–2PM

Sun, April 22    Concert: João Luiz, Guitar & special guest Danilo Brito, Mandolin 

João Luiz of the Brasil Guitar Duo will return for another splendid concert. This time he will be joined by fellow Brazilian and master mandolinist Danilo Brito. The two performed sold-out shows this past spring at Jazz at Lincoln Center. Together they will showcase the choro, an enduringly popular Brazilian musical genre known for instrumental virtuosity, improvisation, syncopation and counterpoint. Tickets for this concert are $28 plus admission to the grounds/$24 Wave Hill Member/$12 Children ages 8–18. Order tickets online at wavehill.org or onsite at the Perkins Visitor Center. For additional information, please call 718.549.3200 x251.

WAVE HILL HOUSE, 2PM

Sun, April 22    Garden Highlights Walk

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

MEET AT PERKINS VISITOR CENTER, 2PM

Mon, April 23

Closed to the public.

Tue, April 24    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Tue, April 24    Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. Avifauna: Interplay of Birds + Habitatfeatures artworks that delve into the relationship between birds and their habitats—from the role birds play in propagating plants to changes in how natural and built environments affect migration patterns. Artists working in photography, video, artist books, wall painting, installation, drawing and sound include Tatiana Arocha, Tanya Chaly, Marna Chester, Nina Katchadourian, Paula McCartney, Jeff Mertz, Peter Morgan, Sarah Nicholls, James Proseck, Jenna Spevek and Fred Tomaselli. In the Sunroom Project Space, Adrienne Elise Tarver builds tactile plant sculptures that create an immersive, sheltering landscape. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

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

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–5:30PM,  March 15–October 31. Closes 4:30PM, starting November 1.

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

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

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

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

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

Congressman Adriano Espaillat Statement on Statement on Trump Decision to Deploy National Guard to U.S.-Mexico Border

  Today, Congressman Adriano Espaillat (NY13) released the following statement on President Trump’s decision to deploy the National Guard to the U.S. – Mexico border.

“Deploying National Guard troops to our southern border puts our country at risk, and is one of Trump's many bullying tactics meant to scare immigrant children and families. There are a number of factors that still remain unclear. Unauthorized border crossings are at an all-time low, so what is the immediate crisis? Once again, Trump is throwing red meat to his base and turning the same anti-immigrant rhetoric we witnessed during his campaign now into harmful policy. We must continue to resist these efforts that tear families apart. I urge all border states to stringently review and reject this latest proposal as it fails to uphold our American values.”

MS-13 Gang Member Pleads Guilty to Retaliation Murder on Long Island

Defendant and Co-Conspirators Murdered a Suspected Assassin, Who They Believed Had Killed MS-13 Members in El Salvador

  Earlier today, at the federal courthouse in Central Islip, Edwin Amaya-Sanchez (“Strong”), a member of the Guanacos Little Cycos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to firearms-related murder charges in connection with his participation in the July 14, 2014 murder of Jose Lainez-Murcia, who was shot and killed while sitting in a car outside his home in Brentwood.  The guilty plea was entered before United States District Judge Joseph F. Bianco.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Stuart J. Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.

“Amaya-Sanchez admitted that he participated in the planning and execution of a murder on Long Island in which the victim was marked for death because he was suspected of having killed MS-13 gang members in El Salvador,” stated United States Attorney Donoghue. “This Office and our partners on the FBI’s Long Island Gang Task Force will continue working tirelessly to eliminate MS-13 and the threat this transnational criminal enterprise presents to our community.”

“MS-13 believes it can operate with its own form of vigilante justice, without any repercussions,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI Long Island Gang Task Force won't allow them to continue terrorizing the community, acting outside of the law.”

 “The Suffolk County Police Department is committed to working with our law enforcement partners in bringing criminal gang members and their associates to justice,” stated SCPD Acting Commissioner Cameron.  “This guilty plea of a murderer will send a strong message to gangs across Long Island that illegal activities will not be tolerated.”

As set forth in prior court filings and the defendant’s statements during his guilty plea, Amaya-Sanchez and other MS-13 members orchestrated the murder of Lainez-Murcia because they suspected that Lainez-Murcia was an assassin who had killed MS-13 members in El Salvador.  Amaya-Sanchez knew where Lainez-Murcia lived, what car he drove, and what time he left for work in the morning, because they previously worked together.  In the early morning hours of July 14, 2014, Amaya-Sanchez drove two other MS-13 members, each of whom was armed with a 9mm handgun, to Lainez-Murcia’s neighborhood and dropped them off.  When Lainez-Murcia left the house and entered his car, the MS-13 members approached and fired multiple times with the 9mm handguns, killing him.  The two MS-13 members ran down the block where Amaya-Sanchez picked them up and drove away.

Amaya-Sanchez, an illegal alien from El Salvador who previously was deported from the United States and illegally returned, faces a mandatory minimum sentence of 10 years’ imprisonment and a maximum sentence of life in prison when sentenced by Judge Bianco on October 17, 2018.  Upon completion of his sentence, the defendant faces deportation from the United States. 

Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization.  The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America.  With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York.  A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district, and has convicted dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, the New York State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys John J. Durham, Paul G. Scotti, Michael T. Keilty and Raymond A. Tierney are in charge of the prosecution.

The Defendant:

Edwin Amaya-Sanchez (also known as “strong”)

Age:  30

Brentwood, New York

Con Ed Contractor Sentenced to 48 Months’ Imprisonment for Bribery and Tax Evasion Charges

Defendant Concealed and Then Deducted Bribe Payments to Con Ed Supervisors as Business Deductions on His Companies’ Tax Returns

  Yesterday, in federal court in Brooklyn, Rodolfo Quiambao, the former President and Chief Executive Officer of the engineering and electrical design firm Rudell & Associates, Inc. (Rudell), was sentenced to 48 months’ imprisonment for federal programs bribery and tax evasion in connection with his scheme to pay bribes and kickbacks to supervisors at Consolidated Edison of New York (Con Ed) in exchange for receiving lucrative contracts and other benefits from the public utility services provider.  Quiambao was also sentenced to pay a $125,000 fine and more than $4.5 million in restitution to the IRS.  At the time of his guilty plea in March 2016, Quiambao agreed to forfeit $1 million in criminal proceeds.  Yesterday’s sentencing took place before United States District Judge Allyne R. Ross. 

Richard P. Donoghue, United States Attorney for the Eastern District of New York; James D. Robnett, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), New York; Michael Nestor, Inspector General, The Port Authority of New York and New Jersey, Office of the Inspector General; and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Custom Enforcement (ICE), Homeland Security Investigations (HSI), in New York, announced the sentence.  

According to court filings and facts presented during court proceedings, starting in approximately 2000, Quiambao surreptitiously and regularly gave Con Ed supervisors hundreds of thousands of dollars in cash and checks in exchange for securing work, including lucrative “sole source” contracts, for his company.  Quiambao also engaged in tax evasion by first concealing and then deducting the bribe payments he paid to the Con Ed supervisors as business deductions on his companies’ tax returns.   

Quiambao’s sentencing was the latest step in the government’s investigation of bribery and kickback schemes involving employees and contractors of Con Ed.  Since 2008, 13 Con Ed supervisors and employees and three Con Ed contractors have been convicted.

The government’s case is being prosecuted by the Office’s Public Integrity Section.  Assistant United States Attorneys Paul Tuchmann and Claire S. Kedeshian are in charge of the prosecution.

The Defendant:

RODOLFO QUIAMBAO

Age:  73

Residence: Queens, New York

Statement by The Bronx Democratic Party on the Reunification of the Senate Democrats

Today, Senate Democrats have reached a deal to reunify in order to take control of the Senate Chamber. The fact of the matter is that Senator Jeff Klein has always been a dedicated partner in passing progressive legislation in Albany and in bringing needed resources to the Bronx. 

This move further solidifies his dedication to the Democratic Party and to doing what is best for the communities we serve. As such, we're happy that one our very own Bronx Legislators will remain in Senate leadership as Deputy Democratic Leader. 

We thank Governor Cuomo and the Senate Democrats for making this happen. Now, more than ever, it's necessary for us as a Party to have a united front as we head into the mid-term congressional elections. More importantly, now that the leaders of the Senate Democrats have agreed to unify, the rest of us have to follow suit and also unify behind them - all of them - heading into the upcoming New York State Democratic primaries. 

If we demanded that they come together for the sake of the Party, then we must also come together to support them for the sake of the Party.