Five Members Of New York Area Drug Trafficking Organization Charged With Diverting And Selling Tens Of Thousands Of Oxycodone Pills

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and George P. Beach II, the Superintendent of the New York State Police, announced an Indictment charging RICKY RIOS, JEANETTE SANTIAGO, ADRIEL VASQUEZ, CINDY GARCIA, and ULTIMO MONTILLA with a conspiracy to distribute oxycodone pills.  The case has been assigned to United States District Judge Paul A. Engelmayer. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, these defendants created a network spanning New York City to Connecticut for the distribution of tens of thousands of highly addictive and dangerous pills, helping to fuel the opioid epidemic plaguing our nation.  We are committed, along with our law enforcement partners, to stopping the diversion of prescription opioids.”

DEA Special Agent in Charge James J. Hunt said:  “This organization monopolized on opioid addiction by pushing tens of thousands of oxycodone pills throughout the Northeast, allegedly.  Every day, more than 100 Americans die from opioid overdoses; both law enforcement and our community members are focused on bringing to justice drug trafficking organizations that exploit addiction for profit.” 

NYPD Commissioner James P. O’Neill said:  “I commend all the dedicated members of the federal task force who investigated and took down the individuals responsible for diverting and selling these pills on the streets of New York.  Cases like this perfectly highlight the value of the NYPD’s law enforcement partnerships at every level of government.”

Superintendent George P. Beach II said:  “Oxycodone is a highly addictive medication, and the operators of this trafficking ring profited by illegally diverting tens of thousands of doses for sale on the streets, knowing it would be abused. I thank our federal and local partners for their efforts to put a stop to this illegal trafficking operation.”

As alleged in the underlying Complaints and the Indictment charging the defendants in Manhattan federal court[1]:

The defendants were members of a drug trafficking organization (the “DTO”) that operated in the Bronx, among other places.  The defendants and other members and associates of the DTO obtained oxycodone pills from individuals with prescriptions, stored and packaged those pills in an apartment in the Bronx, and then resold them.  Between November 2016 and February 2018, the defendants and other members and associates of the DTO were responsible for diverting and selling tens of thousands of oxycodone pills. 

A chart with the names, ages, residences, and maximum penalties for the defendants is set forth below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.

The Indictment was the result of a long-term investigation by the DEA’s Drug Enforcement Task Force, which comprises agents and officers of the DEA, the New York City Police Department, and the New York State Police.  This case is being handled by the Office’s Narcotics Unit.  Assistant United States Attorney Michael K. Krouse is in charge of the prosecution.

The charges contained in the Complaints and the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. 

DEFENDANT	AGE	RESIDENCE	MAXIMUM PENALTY
RICKY RIOS	49	Seymour, CT	20 years in prison
JEANETTE SANTIAGO	37	Bronx, NY	20 years in prison
ADRIEL VASQUEZ	37	Yonkers, NY	20 years in prison
CINDY GARCIA	40	Yonkers, NY	20 years in prison
ULTIMO MONTILLA	40	Bronx, NY	20 years in prison

 

[1] As the introductory phrase signifies, the entirety of the text of the Complaints the Indictment and the description of those materials set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Drug Dealer Charged With Causing December 2016 Overdose Death In The Bronx

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest and unsealing of a Complaint charging THAYSHIKA TORRES with distributing the heroin and fentanyl that resulted in a non-fatal overdose and a subsequent fatal overdose of Elizabeth Stephens in December 2016.  The Complaint also alleges that TORRES distributed heroin between September 2016 and December 2016.  TORRES was arrested this morning by the NYPD, and will be presented later today before U.S. Magistrate James L. Cott in Manhattan federal court. 

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Thayshika Torres sold the heroin that resulted in the non-fatal overdose of Elizabeth Stephens on December 2, 2016.  Then, just three weeks later, Torres allegedly sold Stephens a dose of fentanyl that ended her life.  Working with the NYPD, we will continue to target anyone who sells these dangerous drugs in New York City, from large-scale international drug traffickers to street-corner dealers.”

NYPD Commissioner James P. O’Neill said:  “The NYPD, in close collaboration with all of our law enforcement partners, are relentless in pursuing anyone who illegally sells narcotics and preys on people’s vulnerabilities.  It is imperative that we save as many lives as possible while combatting this opioid crisis that knows no boundaries – which touches every aspect of our society, regardless of race, occupation, or economic status.”

According to the allegations in the Complaint[1]:

On December 2, 2016, Elizabeth Stephens, a 39-year-old resident of the Bronx, suffered a non-lethal overdose from heroin inside the apartment building in which TORRES was living.  Emergency Medical Services personnel revived Stephens and brought her to the emergency room.  Just hours after Stephens’s December 2 overdose, she sent a text message to TORRES asking TORRES to “let people know that stuff is strong.” 

On December 23, 2016, Stephens suffered a fatal overdose in the same apartment building.  That morning, Stephens placed three phone calls to TORRES between approximately 10:56 a.m. and 11:57 a.m.  These were the last outgoing calls placed from Stephens’s phone.  Less than an hour after the last call, at approximately 12:49 p.m., a resident of TORRES’s apartment building found Stephens lying outside the elevator in a hallway three floors above TORRES’s apartment.  Shortly thereafter, Stephens was pronounced dead at a local hospital.  An autopsy revealed that Stephens died from a lethal dose of opioids. 

TORRES also sold heroin to undercover officers and confidential informants both before and after Stephens’s overdoses, including on September 2, 2016, October 18, 2017, October 24, 2017, February 22, 2018, and February 27, 2018.  Laboratory testing confirmed that the heroin TORRES sold on October 18 and 24, 2017, also contained fentanyl. 

TORRES, 37, of the Bronx, is charged with two counts of distribution and possession with intent to distribute heroin.  TORRES faces a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison on each count based upon her distribution of the heroin that led to Elizabeth Stephens’s non-fatal overdose on December 2, 2016, and her distribution of the fentanyl that led to Stephens’s fatal overdose on December 23, 2016.

The statutory maximum and minimum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendant would be determined by the judge.

Mr. Berman praised the outstanding investigative work of the NYPD in this case. 

The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

CEO And President Of New York Credit Union Charged With Embezzlement And Fraud

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KAM WONG, the chief executive officer and president of the oldest New York credit union (the “Credit Union”), a non-profit financial institution, was charged in Manhattan federal court with fraud, embezzlement, and aggravated identity theft offenses related to defrauding the Credit Union in connection with hundreds of thousands of sham expense reimbursements.  WONG was arrested this morning and is scheduled to appear before U.S. Magistrate Judge James L. Cott in Manhattan federal court later today. 

U.S. Attorney Geoffrey S. Berman said:  “As alleged, the CEO and president of New York’s oldest credit union abused his position of trust as a guardian of municipal, state, and federal workers’ financial accounts to enrich himself.  Kam Wong allegedly stole money from the credit union’s earnings that were intended to reward the credit union’s members, not line Wong’s pockets.  I want to thank my Office’s Special Agents for their dedicated efforts in this ongoing investigation.”

According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court and publicly available documents:

KAM WONG, the defendant, is the CEO and president of the Credit Union, a non-profit financial institution headquartered in New York, New York, which is federally insured.  The Credit Union is the oldest credit union in New York State and one of the oldest and largest in the country, providing bank services to more than 425,000 members, including municipal, state, and federal workers in New York City.  The Credit Union’s earnings are intended to be directed back to its members in the form of more favorable rates and fewer and lower fees for products and services.

From at least 2013 through January 2018, WONG engaged in a long-running multi-faceted scheme to obtain money from the Credit Union to which he was not entitled, and took steps to seek to conceal what he had done.  Among other things, WONG allegedly embezzled from and defrauded the Credit Union by submitting sham invoices (the “Sham Invoices”) for dental work never performed on him or paid by him, and, as a result, obtained reimbursement for hundreds of thousands of dollars of such nonexistent dental work, as well as for his alleged personal tax liability for these and other payments or benefits.

In addition to the alleged fraud in connection with dental reimbursements, the ongoing investigation has revealed that WONG obtained numerous other payments from the Credit Union under suspicious or questionable circumstances.  These include millions of dollars in cash payments in lieu of a long-term disability insurance policy, as well as millions more for taxes to cover those payments; reimbursement payments for repairs to a luxury vehicle the Credit Union leased to WONG, which repair work was already covered by insurance; cash withdrawals from a Credit Union business credit card for purportedly “testing” the Credit Union’s ATMs; substantial educational, housing, and living expenses for two of WONG’s friend’s relatives, whom the Credit Union hired at his direction to be interns; tens of thousands of dollars in annual cash advances, for which WONG provided no supporting documentation; and payments for 320 days of purportedly unused sick leave, in violation of WONG’s contract and the Credit Union’s policies. 

WONG generally deposited the proceeds of his scheme into a Credit Union account, from which, between July 2013 and January 2018, he then withdrew approximately $1.9 million from ATMs, over the course of more than 2,500 transactions, an average of more than one-and-a-half transactions per day.  From this account, WONG also spent at least approximately $3.55 million on New York State Lottery tickets.

In or about January 2018, after WONG learned about the investigation, WONG misled federal agents and Credit Union Board members in order to, after the fact, explain and justify some of these payments.  On or about February 22, 2018, WONG was placed on leave by the Credit Union’s Board of Directors upon the recommendation of a Special Committee overseeing an internal investigation prompted by this criminal investigation.

WONG, 62, of Valley Stream, Long Island, is charged with one count of embezzlement from a federally insured credit union, one count of bank fraud, one count of wire fraud, each of which carries a maximum penalty of 30 years in prison, and one count of aggravated identify theft, which carries a mandatory two-year consecutive term in prison. 

The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Berman praised the work of the Special Agents of the United States Attorney’s Office for the Southern District of New York. 

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.

Statement From Acting Attorney General Barbara Underwood

  “I am honored to serve the people of New York as acting Attorney General. The work of this office is critically important. Our office has never been stronger, and this extraordinarily talented, dedicated, and tireless team of public servants will ensure that our work continues without interruption.”

Barbara D. Underwood was appointed New York Solicitor General in January 2007. Prior to her appointment she served as Counsel and as Chief Assistant to the United States Attorney for the Eastern District of New York. From 1998 to 2001 she was the Acting Solicitor General and Principal Deputy Solicitor General of the United States. She has held executive positions in the Queens and Brooklyn District Attorneys’ Offices, and served as a trial attorney in the Manhattan District Attorney’s Office. She has argued 20 cases in the United States Supreme Court, as well as many cases in the state and federal courts of appeals. She has served as Chair of the Executive Committee and Chair of the Council on Criminal Justice of the New York City Bar Association. She was Professor of Law at Yale Law School, Visiting Professor at New York University School of Law, and Adjunct Professor at Brooklyn Law School. She was a law clerk to Chief Judge David L. Bazelon of the U.S. Court of Appeals for the D.C. Circuit and to Justice Thurgood Marshall of the U.S. Supreme Court. She received a B.A. from Harvard University (Radcliffe College) and a J.D. from Georgetown University Law Center, where she graduated first in her class. 

Statement By Attorney General Eric T. Schneiderman

  “It’s been my great honor and privilege to serve as Attorney General for the people of the State of New York. In the last several hours, serious allegations, which I strongly contest, have been made against me. While these allegations are unrelated to my professional conduct or the operations of the office, they will effectively prevent me from leading the office’s work at this critical time. I therefore resign my office, effective at the close of business on May 8, 2018.”

MAYOR DE BLASIO SIGNS LEGISLATION STRENGTHENING PROTECTIONS AGAINST SEXUAL HARASSMENT

  Today, Mayor de Blasio signed 11 bills to combat workplace sexual harassment. These bills mandate anti-sexual harassment trainings in the public and private sectors; make information about sexual harassment available so more New Yorkers know their rights; require sexual harassment data reporting from city agencies; and expand sexual harassment protections under the New York City Human Rights Law.

“Society has been stacked in favor of men for far too long, leading many to believe they can harass women without fear of punishment,” said Mayor de Blasio. “New York City will not allow that continue. We are taking action to protect workers against sexual harassment and saying loudly and clearly that anyone who harasses a co-worker will face justice.”

"When women step forward with a grievance, it is the employer’s responsibility to listen and take appropriate action,” said First Lady Chirlane McCray. “With this new package of bills, New York City is holding ALL employers accountable for what they do when employees come forward to report sexual harassment in the workplace."

"As revelations from the #MeToo and Time’s Up movements continue to unfold, including the recent troubling events here in New York, it’s important victims of sexual harassment know they will always be heard. All New Yorkers are entitled to a safe, respectful workplace, and the ‘Stop Sexual Harassment in NYC Act’ sends a strong message to public and private employers that there is no place for sexual harassment in our city. It is our responsibility as legislators to take action and protect all of our constituents by ensuring they feel safe no matter where they are ‒ at work, on the train or in the company of people they trust. I thank my colleagues, especially the Council’s Committee on Women Chair Helen Rosenthal, for their activism and I thank the Mayor for his support. I am immensely proud New York City is leading the charge to end sexual harassment,” said Speaker Corey Johnson, sponsor of Intro. 612-A.

Requiring Anti-Sexual Harassment Trainings

• Intro. 612-A requires all city agencies and the offices of the Mayor, borough presidents, Comptroller, and Public Advocate to conduct annual anti-sexual harassment trainings for all employees. 

• Intro. 632-A requires employers with 15 or more employees to conduct annual anti-sexual harassment training for all employees.

Ensuring New Yorkers Know Their Rights

• Intro. 614-A requires the New York City Commission on Human Rights to clearly post resources about sexual harassment on its website, including an explanation that sexual harassment is a form of unlawful discrimination under local law. 

• Intro. 630-A requires all employers in the city to display an anti-sexual harassment rights and responsibility poster designed by the Commission on Human Rights.

Reporting on Harassment at City Agencies and Assessing Workplace Climate

• Intro. 613-A requires all city agencies and the offices of the Mayor, borough presidents, Comptroller, and Public Advocate to assess workplace risk factors associated with sexual harassment as identified by the United States Equal Employment Opportunity Commission Select Task Force on the Study of Harassment in the Workplace. In doing so, agencies can better develop responsive strategies to combat sexual harassment.

• Intro. 664-A, requires all city agencies, as well as the offices of the Mayor, borough presidents, Comptroller and the Public Advocate, to conduct climate surveys to assess the general awareness and knowledge of the city’s equal employment opportunity policy, including but not limited to sexual harassment policies and prevention at city agencies. 

• Intro. 653-A requires all city agencies, as well as the offices of the Mayor, Borough Presidents, Comptroller and Public Advocate, to annually report on incidents of workplace sexual harassment to the Department of Citywide Administrative Services.

• Intro. 693 requires that contractors and subcontractors that apply for city contracts include their employment practices, policies and procedures as they relate to preventing and addressing sexual harassment in the employment report required of proposed contractors and subcontractors.

Expanding Sexual Harassment Protections Under The New York City Human Rights Law

• Intro. 657-A, amends the New York City Human Rights Law to apply provisions related to gender-based discrimination to all employers, regardless of the number of employees.

• Intro. 660-A would amend the policy statement of the New York City Human Rights Law to include sexual harassment as a form of discrimination that the New York City Commission on Human Rights shall have the power to eliminate and prevent.

• Intro. 663-A, amends the New York City Human Rights Law to increase the statute of limitations for filing harassment claims based on unwelcome conduct that intimidates, interferes with, oppresses, threatens, humiliates or degrades a person based on such person’s gender from one year to three years from the time that the alleged harassment occurred.

Letitia James lines up enough votes to be named interim AG

This comes from the New York Post.

  Public Advocate Letitia James has lined up enough votes in the state Assembly — including its powerful leader, Speaker Carl Heastie — to be named as interim Attorney General, sources said Wednesday.

The sources said Assembly Democrats led by Heastie are brokering a deal that would give James the post — vacated Monday by Eric Schneiderman amid allegations he choked and hit women — in a deal with Bronx Democrats.

In return for their support, she will back Bronx Borough President Ruben Diaz Jr. in a special election for her public advocate post, which would also be a springboard to run for mayor in 2021.

“It would be foolish of him not to take it,” said Bronx Assemblyman Jose Rivera of Diaz.

James put out a statement Wednesday morning making clear her intention to replace Schneiderman.

“Two days after allegations against the former Attorney General surfaced, we are all still coming to terms with his alleged shocking and grotesque behavior,” she wrote. “In line with its constitutional duties, the state legislature is carrying on a process to elect a temporary replacement. I am honored by the encouragement and support I have revived and am considering the best ways to continue serving New York.

“I remain moved by the tremendous courage and bravery that the survivors who came forward demonstrated, and am reminded that women’s voices are needed more than ever at the highest levels of government and in every corner of society.”

Other sources said the back-room deal raises ethical concerns. “Trading political favors” for elected office could be setting up James up for a fall, said one insider.

The last thing Democrats need is another controversy involving the Attorney General following the spectacular fall of Schneiderman, who resigned just hours after the New Yorker published charges by four women that he had hit them.

If she gets the appointment, James would likely face a number of challengers in September’s Democratic primary.

Zephyr Teachout, a well-known progressive working on Cynthia Nixon’s gubernatorial campaign, has already expressed interest. So has state Sen. Mike Gianaris of Queens.

Republicans are hopeful too that they can finally regain a statewide seat that has no incumbent.

Republican Manny Alicandro, a former Wall Street lawyer, announced on Monday he would run for the seat.

With Schneiderman gone, state Sen. John DeFrancisco, who recently withdrew from the gubernatorial race, is among those being named as another possible GOP challenger.

Sen. Majority Leader John Flanagan said Tuesday that the Syracuse state senator could do the job “with his eyes closed.”

Sources previously told The Post James wasted no time hitting the phones to drum up support for herself after Schneiderman resigned Monday night following allegations that he abused women.

Assemblyman Dinowitz Passes Critical Legislation Strengthening 'Transit Lockbox'

  State Assembly passes legislation that would prohibit the diversion of public transit funding without express legislative consent, a problem which has long plagued the transit systems such as the MTA and their ability to manage debt.

  Assemblyman Jeffrey Dinowitz (D-Bronx) today announced passage of legislation to require funding dedicated to public transportation systems (including the MTA) be used for their intended purpose. The bill would also require any legislation that diverts public transportation funding to include a diversion impact statement which reflects the amount of the diversion from each fund listed separately, the amount diverted expressed as current monthly transit fares, the cumulative amount of diversion from the previous five years, and a detailed estimate of the impact on service, maintenance, security, and current capital program.

For many years, the MTA has seen their operational costs increasingly used to pay debt service. The MTA’s debt service payments have grown from essentially nothing in the early 1980’s to over $2.5 billion in 2018. Despite this increasing cost burden siphoning much-needed resources away from a subway system in crisis, the MTA and other transportation systems have remained a frequent target of Governors who wish to use dedicated taxes to support transit projects to cover budgetary shortfalls in unrelated areas. The diverted funds are then replaced with bonds or loans that are backed by these same taxes, further adding to the existing debt burden.

Assemblyman Dinowitz has championed this bipartisan and common-sense legislation with State Senator Martin Golden (R-Brooklyn), resurrecting the bill as the MTA is once again in a state of crisis. A similar bill was vetoed by Governor Cuomo in 2013. Transit and good government advocates have hailed the legislation as a much-needed salve of transparency which will both hold the Governor and Legislature accountable when it comes to adequately funding public transportation systems in New York State. The bill (A8511) now moves to the State Senate, where it passed unanimously in June of 2013.

Assemblyman Jeffrey Dinowitz (D-Bronx) said: “As we examine every way to raise dedicated and sustainable revenue for mass transit in New York, it has become increasingly clear that we need to ensure that our promises to straphangers remain kept. If the people of New York are expected to continue paying increased fares and new taxes or fees to fix our subways and buses, then they should be confident that this money is being spent in the right place. I am proud of my colleagues for supporting this bill, and urge Governor Cuomo change his decision from several years ago by signing this bill into law.”