Bookkeeper Charged In Manhattan Federal Court With Embezzling Over $3.4 Million From Literary Agency And Its Clients

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DARIN WEBB was arrested this morning on wire fraud charges stemming from his scheme to defraud a Manhattan-based literary agency (the “Agency”) and its clients of more than $3.4 million.  WEBB provided bookkeeping services for the Agency and carried out his scheme by making unauthorized transfers from the Agency’s bank accounts, and then making changes to the Agency’s accounting system to evade detection.  WEBB was arrested this morning in Manhattan, and will be presented today before United States Magistrate Judge Barbara C. Moses.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Darin Webb, a bookkeeper for a firm in the book business, cooked the firm’s books to conceal a multimillion-dollar embezzlement.  Now he is in custody and facing prosecution.” 

FBI Assistant Director William F. Sweeney Jr. said:  “As alleged, Darin Webb was responsible for the financial welfare of the agency whose accounts he oversaw, but instead of upholding his fiscal responsibilities, he spent his time swindling more than $3.4 million from his victims.  Cooking the books rarely pays off in the long run, as the defendant has learned today.”

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

From in or about 2001 through in or about March 2018, DARIN WEBB, the defendant, was engaged as a bookkeeper for the Agency.  From at least January 2011 through March 2018, WEBB used his position as the Agency’s bookkeeper to transfer more than $3.4 million of funds, belonging to the Agency and the Agency’s clients, from the Agency’s bank accounts to bank accounts that WEBB controlled.  In order to evade detection of his criminal conduct and carry out his scheme, WEBB made changes to the Agency’s accounting records to disguise the nature of the transfers.

WEBB, 47, of Manhattan, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.

[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.

BRONX WEEK BUSINESS LUNCHEON

 Over 100 business leaders from the Bronx attended the Bronx Week Business Luncheon when Bronx Borough President Ruben Diaz Jr. gave highlights from his 2017 Annual Bronx Development Report. 

The complete 32 page 2017 Annual Development Report by borough and by Community Board can be found here  https://on.nyc.gov/2rHHTn7. 

  Awards were given to eleven businesses and their owners either based in the Bronx or doing business in the Bronx. They were Associated Supermarkets Group (ASG), Citiwide Exterminating Inc., La Flor de Mayo Express inc., La Rosa Del Monte, Nebraskaland, Pen & Pistol, Puerto Salvo, Puerto Rican USA Importers, Salsa Catering, South of France, and Transcon International. Photos of the event are below.

Above - BOEDC President Ms. Marlene Cintron opens the luncheon.

Bronx Borough President Ruben Diaz Jr. goes over jis 2017 Annual Development Report. 

Above - Ms. Maribel Sof owner of the Restaurant 'South of France' located at 1800 Westchester Avenue Bronx receives her award from BP Diaz and Ms. Cintron.

Below - MS. Zulema Wiscovitch of Associated Supermarket Group with stores in the Bronx receives her award from BP Diaz and Ms. Cintron.

Above - Frank Hernandez of La Flor De Mayo Express INC. receives his award from BP Diaz and Ms. Cintron. 

Below - All the awardees with Bronx BP Diaz (middle back row, and Deputy BP McFadden front row (right). 

BP DIAZ RELEASES ‘BRONX ANNUAL DEVELOPMENT REPORT’

The Bronx was home to $2.7 billion, 16.2 thousand sq. ft. of new development in 2017

  Bronx Borough President Ruben Diaz Jr. released his “Bronx Annual Development Report” this afternoon during the 2018 Bronx Week Business Luncheon at Tosca Marquee in Throggs Neck.

The report finds that The Bronx continues to see incredible interest from all sectors of the development world, be it residential, commercial or institutional. In 2017, The Bronx saw more than $2.7 billion in total development, the second most of any year during Borough President Diaz’s time in office.

The borough also saw 16,263,954 square feet of total development during the same year, 15 percent more than 2016 and the highest of any year of Borough President Diaz’s tenure. In 2017 the borough was also home to 7,379 new residential units of all types, the most of any year since 2009.

“Look at the numbers. We had an amazing 2017. We are continuing to see unprecedented interest in The Bronx from all sectors,” said Bronx Borough President Ruben Diaz Jr. “Working together with our Bronx businesses, along with our development leaders, our community boards, non-profits and elected officials, we are all—together—making The Bronx an even better place to live, work and raise a family.”

“Our borough continues to attract investors, developers and businesses at breakneck speed. These efforts have resulted in a historical decline in unemployment and a massive improvement in the quality of life of our residents,” said Marlene Cintron, President of the Bronx Overall Economic Development Corporation.

In addition to outlining the growth the borough saw in 2017, the “Bronx Annual Development Report” also illustrates the year-to-year investment and construction The Bronx has played host to since 2009, when Borough President Diaz first took office.

Since then, the borough has seen more than $15.4 billion in total development, as well as more than 84.8 million square feet of total development construction. A total of 36,437 residential units have also been constructed in The Bronx since 2009, as well, with 58 percent of those (21,157) having been developed with government subsidies.

“The vast majority of this new housing has been low and moderate income units. We are helping to keep people in The Bronx,” said Borough President Diaz. “We are making sure that new development works for those families who already call The Bronx their home, and that new attention in The Bronx helps everyone thrive.”

The full report can be read at https://on.nyc.gov/2rHHTn7.

CM Levine Launches “Languages for All” Campaign to Expand Bilingual Education in City Schools

  Today, Council Member Mark Levine launched a new Languages for All campaign aimed at creating a robust expansion of foreign language education programs in NYC.

Learning a foreign language early in life can be an invaluable asset to a child growing up in the world’s most global city. However, very few of the DOE’s language learning programs reach students during their most formative years. In addition to the obvious economic benefits associated with knowing a second language, studies have proven that language learning benefits students in countless ways, including: higher levels of academic achievement, improved cognitive ability, enhanced decision-making ability, and even staving off the effects of Alzheimer’s disease.

Council Member Levine is renewing his call for the City to increase the number of elementary students in immersion programs to 20% of all students and to grow the number of languages offered to 20, a goal the City has not yet met despite progress.

The DOE currently offers 245 Dual Language programs across the five boroughs for 11 languages, including: Spanish, Chinese, French, Russian, Polish, Japanese, Arabic, Haitian Creole, Italian, Hebrew, and Korean.

Council Member Levine introduced two pieces of legislation to expand dual languages programs in the City, including:

·     A bill directing the DOE to annually report to the Council on the number and progress of foreign language learning (FLL) programs in the City (Int 762-2018); and

·  A resolution calling on the State to enact A.1154/S. 3641 sponsored by Assembly member Nily Rozic and State Senator Kevin Parker that would establish incentives for college students to become bilingual-certified teachers (Res 273-2018).

“New York is the most multilingual city in the world, and yet, our City’s public schools are falling behind when it comes to foreign language instruction at an early age,” said Council Member Levine. “As the world becomes ever more connected, multilingualism is an increasingly valuable asset in the job market. Language learning-- especially at a young age--also aids cognitive development and promotes academic achievement in other subjects. For young people to succeed in today’s global world, we need to create a language learning system for the 21st Century, focused on immersion at a young age.”

Former District Manager Indicted for Allegedly Forging Signature of Community Board Chairman to Give Himself Unauthorized Raises

Defendant Allegedly Stole $38,345 in Salary to Which He Was Not Entitled

  Brooklyn District Attorney Eric Gonzalez, together with New York City Department of Investigation of Commissioner Mark G. Peters, today announced that the former District Manager of Community Board 6, which includes Cobble Hill, Carroll Gardens, Red Hook, and Park Slope, was arraigned today on a 17-count indictment in which he is charged with forgery and other charges for forging signatures on four occasions to give himself raises without approval or authorization.

  District Attorney Gonzalez said, “This defendant allegedly sought to enrich himself with taxpayer money to which he was not entitled. This was a betrayal of the public trust that cannot be tolerated. I remain committed to rooting out crimes such as this that can carry a heavy cost over the long term. We will now seek to hold this defendant accountable.”

  Commissioner Peters said, “This defendant gave himself multiple raises, including a merit increase, and falsified his manager’s authorization to get them approved by the City, according to the charges. New Yorkers expect – and deserve – public servants serving their communities with integrity that is beyond reproach. DOI will continue to pursue those City workers criminally who take advantage of taxpayers and steal City funds. We thank our partners at the Brooklyn District Attorney’s Office for their collaboration on this investigation.”

  The District Attorney identified the defendant as Craig Hammerman, 53, of Fort Greene, Brooklyn. He was arraigned today before Brooklyn Supreme Court Justice Danny Chun on an indictment in which he is charged with four counts of second-degree forgery, four counts of second-degree criminal possession of a forged instrument, four counts of first-degree offering a false instrument for filing, four counts of first-degree falsifying business records and one count of third-degree grand larceny. He faces up to seven years in prison if convicted of the top count. He was released without bail and ordered to return to court on August 8, 2018.

  The District Attorney said that, according to the investigation, between May 2015 and October 2017, the defendant, who was the District Manager of Community Board 6 (CB 6), allegedly forged the signature of Community Board Chairman Sayar Lonial three times and forged the signature of former Community Board Chairman Gary Reilly one time to give himself unauthorized raises.

  The forgery was discovered by CB 6 during an internal investigation in September 2017, and the matter was referred to the Department of Investigation. A subsequent investigation by DOI and the DA’s office revealed a series of forged letters authorizing salary increases. A letter dated October 2016, which was sent to the office of the Brooklyn Borough President, authorized a raise for Hammerman and contained Lonial’s forged signature. A second letter dated March 2017 was sent to the Office of Management and Budget authorizing a salary increase for Hammerman and contained Lonial’s forged signature. This document was accompanied by supporting documentation, referred to as a Planned Action Report, which also contained Lonial’s forged signature. A third letter was discovered, dated May 2015, which authorized a raise for Hammerman and contained the signature of Gary Reilly, who was, at the time, the Chairman of CB 6. A representative of the Brooklyn Borough President’s office, which processes salary increases for CB 6 employees, calculated that Hammerman received $38,345 in salary that he was not entitled to as a result of his alleged fraud.

  Hammerman’s salary was $121,931 when he resigned in October 2017.

 The case was investigated by Special Investigator Beatriz Solorzano, of the New York City Department of Investigation, under the supervision of Inspector General Andrew Sein, Associate Commissioner Andrew Brunsden, Deputy Commissioner/Chief of Investigations Susan Lambiase, and First Deputy Commissioner Lesley Brovner.

The District Attorney thanked the Office of Borough President Eric L. Adams for its cooperation in this investigation.

An indictment is an accusatory instrument and not proof of a defendant’s guilt

Founders Of Cryptocurrency Company Indicted In Manhattan Federal Court With Scheme To Defraud Investors

Government Recovers Digital Funds Worth More Than $60 Million

  Robert Khuzami, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that a grand jury in the Southern District of New York has returned an Indictment charging SOHRAB SHARMA, a/k/a “Sam Sharma,” RAYMOND TRAPANI, a/k/a “Ray,” and ROBERT FARKAS, a/k/a “RJ,” a/k/a “Bob,” the three co-founders of a startup company called Centra Tech, Inc. (“Centra Tech”), that purported to offer cryptocurrency-related financial products, with conspiring to commit, and the commission of, securities and wire fraud in connection with a scheme to induce victims to invest millions of dollars’ worth of digital funds for the purchase of unregistered securities, in the form of digital currency tokens issued by Centra Tech, through material misrepresentations and omissions.  SHARMA, TRAPANI, and FARKAS were all arrested last month based on criminal complaints filed by this Office charging them with the same crimes. 

Following their arrests, this Office and the Federal Bureau of Investigation (“FBI”) seized 91,000 Ether units, consisting of digital funds raised from victims as part of the charged scheme.  This seized digital currency is presently worth more than $60 million.  The case has been assigned to United States District Judge Lorna G. Schofield.

Mr. Khuzami said:  “As alleged, the defendants conspired to capitalize on investor interest in the burgeoning cryptocurrency market.  They allegedly made false claims about their product and about relationships they had with credible financial institutions, even creating a fictitious Centra Tech CEO.  Whether traditional or cutting-edge, investment vehicles can’t legally be peddled with falsehoods and lies.”

According to the allegations in the Indictment filed in this case, the criminal complaints previously unsealed in this case, and in other filings and statements at public court proceedings in the case:[1]

After SHARMA and TRAPANI worked together at a luxury car rental company in Florida called “Miami Exotics,” they and FARKAS co-founded a startup company called Centra Tech that claimed to offer cryptocurrency-related financial productions, including a purported debit card, the “Centra Card,” that supposedly allowed users to spend various types of cryptocurrency to make purchases at any establishment that accepts Visa or Mastercard payment cards.  In approximately July 2017, SHARMA, TRAPANI, and FARKAS began soliciting investors to purchase unregistered securities, in the form of digital tokens issued by Centra Tech, through a so-called “initial coin offering” or “ICO.”  As part of this effort, SHARMA, TRAPANI, and FARKAS, in oral and written offering materials that were disseminated via the internet, represented: (a) that Centra Tech had an experienced executive team with impressive credentials, including a purported CEO named “Michael Edwards” with more than 20 years of banking industry experience and a master’s degree in business administration from Harvard University; (b) that Centra Tech had formed partnerships with Bancorp, Visa, and Mastercard to issue Centra Cards licensed by Visa or Mastercard; and (c) that Centra Tech had money transmitter and other licenses in 38 states, among other claims.  Based in part on these claims, victims provided millions of dollars’ worth of digital funds in investments for the purchase of Centra Tech tokens.  In or about October 2017, at the end of Centra Tech’s ICO, those digital funds raised from victims were worth more than $25 million.  Due to appreciation in the value of those digital funds raised from victims, those digital funds are presently worth more than $60 million.    

The representations that SHARMA, TRAPANI, and FARKAS made to help secure these investments, however, were false.  In fact, the purported CEO “Michael Edwards” and another supposed member of Centra Tech’s executive team are fictitious people who were fabricated to dupe investors; Centra Tech had no such partnerships with Bancorp, Visa, or Mastercard; and Centra Tech did not have such licenses in a number of those states.

SHARMA, TRAPANI, and FARKAS were well aware of the falsity of such claims.  For example, with respect to Centra Tech’s purported partnerships with Bancorp, Visa, and Mastercard, SHARMA engaged in a cellphone text message conversation with TRAPANI on or about July 31, 2017, in which they discussed Centra Tech’s lack of actual partnerships with banks or credit card companies.  During that exchange, SHARMA wrote:  “Should write down a list of places to call tomorrow,” “For the conbranded [sic] card.”  Later in the exchange, SHARMA wrote:  “Gotta get it going on the banks today plz.”  SHARMA also subsequently wrote:  “We just need to get s [sic] banking license,” “Need our direct agreement with visa,” “Or MasterCard,” “That’s the move,” “Cut out the middle man,” “I wish we just knew someone.” 

With respect to Centra Tech’s purported CEO “Michael Edwards,” SHARMA text-messaged TRAPANI on or about July 29, 2017, that they “Need to find someone who looks like Michael,” “Team photos,” “He’s real lol,” “Everyone real,” “Except Jessica,” “And Mike.”  Similarly, SHARMA later wrote during that same exchange:  “Gonna kill both Ceo and her,” “Gonna say they were married and got into an accident.” 

Finally, with respect to Centra Tech’s purported money transmitter and other licenses in 38 states, SHARMA had a text message conversation with TRAPANI and FARKAS on or about August 30, 2017, about applying for state licenses that Centra Tech had previously represented it already held in 38 states.  For example, SHARMA wrote in one message on or about August 30, 2017, to TRAPANI and FARKAS:  “Gotta apply for all licenses,” “Should I even say this.” 

On or about May 2, 2018, this Office and the FBI seized, pursuant to a judicially authorized seizure warrant, 91,000 Ether units, consisting of digital funds raised from victims who purchased digital tokens issued by Centra Tech during its ICO based on fraudulent misrepresentations and omissions.  The seized funds are presently worth more than $60 million. 

In a separate action, the United States Securities and Exchange Commission (the “SEC”) has filed civil charges against SHARMA, TRAPANI, and FARKAS.           

SHARMA, 27, TRAPANI, 27, and FARKAS, 31, are all residents of Florida.  All three of them are charged in a four-count Indictment with one count of conspiracy to commit securities fraud, which carries a maximum potential sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of 20 years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison.  In addition to potential prison sentences, each of these charges also carries potential financial penalties.  The maximum potential prison sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. 

Mr. Khuzami praised the work of the FBI and thanked the SEC for its assistance.  Mr. Khuzami also thanked the Department of Homeland Security, Homeland Security Investigations (“DHS-HIS”) and the District Attorney’s Office for New York County for their assistance in this case.

The allegations contained in the charging documents in this case are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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

Our Revolution Endorses Cynthia Nixon for Governor

Organization built out of Senator Bernie Sanders' 2016 presidential campaign has thousands of grassroots members across the state mobilizing ahead of the primary

  Democratic candidate for governor Cynthia Nixon was endorsed today by Our Revolution. Our Revolution is the spin off of Bernie Sanders’ 2016 presidential run and endorses candidates committed to his same vision of bold progressive change. Cynthia is also endorsed by all 32 New York State Our Revolution local groups.

“Cynthia Nixon is a lifelong progressive who has spent years working on educational equity. She is a bold progressive who is running in the spirit of Senator Bernie Sanders,” said Our Revolution President, Nina Turner. “Cynthia is running to be a governor for the people, not for the billionaires and corporations who have held influence over New York's Democratic establishment for far too long.”

“It is unconscionable that a state with Democratic leadership would have the worst income inequality in the entire country,” Turner added. “Cynthia's support of marijuana legalization and decriminalization, expanding rent stabilization laws statewide, and ending cash bail will give justice to people who for decades have been forced to struggle for survival as corporations and billionaires continue to get rich. The people of New York need a leader at the helm who hears their voice and will use that power to enact public policies that will improve their lives. Cynthia Nixon is that leader.”

Cynthia is joining the ranks of hundreds of other progressive candidates running for office across the country that have been endorsed by the group. Both Our Revolution and Cynthia agree that in New York and across the country we need to elect progressive leaders to address a rigged political system and growing economic inequality. Cynthia’s campaign is about New Yorkers coming together to end racial, economic, and gender inequality across the state.

New York is the most unequal state in the country and Cynthia has made addressing this gap a key part of her platform. Cynthia’s platform includes: finally making good on the Campaign for Fiscal Equity Lawsuit to make sure schools across the state are adequately funded regardless of zip code, a rent justice plan to address the state affordability crisis and skyrocketing rents, fixing our subways and our crumbling statewide infrastructure, community-based economic development that invests in people and jobs instead of funneling millions and even billions of dollars to the Governor’s cronies for little in return, and making millionaires, billionaires and corporations start to pay their fair share in taxes. As governor, Cynthia also plans to transition to 100% renewable energy and move towards a single-payer, Medicare For All style system.

“The activists, grassroots organizers, and leaders of Our Revolution are at the heart of the progressive movement in this country, and I’m proud to join them in the fight to create a more democratic Democratic Party,” said Cynthia Nixon. “We’re running a campaign that’s powered by the people, not corporate contributions. I am thrilled to work with Our Revolution and bring the political revolution to New York.”

This marks the third major national endorsement Cynthia has received since announcing her bid for governor, including Democracy for America and Daily Kos. In the last few days, she’s received endorsements from The Broadway Democrats, Village Independent Democrats and Three Parks Independent Democrats. This adds to an even longer list of endorsements over the last few weeks, including the New Kings Democrats (NKD), Council Member Carlos Menchaca, the Working Families Party, Make the Road Action, Citizens Action, and the New York Progressive Action Network, with more announcements expected in the coming weeks.

Assemblymember Pichardo mourns the passing of Beatrice Castiglia-Catullo

 “I join the community in mourning the loss of Beatrice Castiglia-Catullo, known to all as Ms. Bea, a tireless advocate and champion of our Bronx community. Ms. Bea was the founder of Regional Aid for Interim Needs (R.A.I.N.), which is the largest social services network in the Bronx and provides critical services to more than 30,000 community members. R.A.I.N. manages 11 senior centers in our borough and administers Cucina Dolores, a meals program that targets homeless individuals in the South Bronx.

 “Ms. Bea was a truly remarkable woman who touched countless lives with her infectious altruism and unwavering compassion. Guided by her faith and commitment to serving others, she has undoubtedly helped make our Bronx community a better place. I know that R.A.I.N. will continue to grow and thrive, continuing Ms. Bea’s legacy and honoring her vision to serve those in need.

         

 “I want to extend my heartfelt condolences to Ms. Bea’s family and join the community in commemorating her life and legacy.”