News From Congressman Joseph Crowley

Chairman Crowley Statement on May Jobs Report

House Democratic Caucus Chairman Joe Crowley issued the following statement on the May jobs report:

“The president continues to put American jobs and families at risk with his reckless policies that lack insight, judgment, and strategic thinking. His agenda does nothing for working men and women, far too many of whom are continually burdened by Republicans’ attempts to lavish tax breaks on the rich and take away health insurance from the middle class. We can and should do better.”

Chairman Crowley Statement on LGBTQ Pride Month

House Democratic Caucus Chairman Joe Crowley issued the following statement on LGBTQ Pride Month:

“This Pride Month, we celebrate the strength and resilience of the lesbian, gay, bisexual, transgender, and queer community. While we have made incredible progress in the march toward equality, we still have a long way to go to ensure the full rights of LGBTQ Americans, especially for communities of color. As the Trump administration and congressional Republicans continue their shameful attacks on LGBTQ rights, we must continue to raise our voices, fight injustice, and push forward.

 “To all those celebrating pride in Queens, the Bronx, and across the nation, know that I will continue to stand with you as we work to create a more just and inclusive country.”

Chairman Crowley Statement on Immigrant Heritage Month

House Democratic Caucus Chairman Joe Crowley released the following statement on Immigrant Heritage Month, which is celebrated annually during the month of June: 

“During Immigrant Heritage Month, we join together to celebrate our rich history as a nation of immigrants, as well as pay tribute to the contributions immigrant communities have made to the United States. 

“But as we celebrate our heritage, we must also acknowledge the many challenges immigrants face in our country. President Trump’s administration continues to demonize immigrants and promote an anti-immigrant agenda. In Congress, Republican leaders are refusing to bring forward the DREAM Act, despite bipartisan support for providing security to these young men and women who call America home. And at the border, even families seeking asylum are being torn apart.

“As the son and grandson of immigrants, I know how crucial it is to protect and live up to our country’s proud tradition of welcoming immigrants. As we celebrate Immigrant Heritage Month, let us reaffirm our commitment to upholding our nation’s values and working to make our immigration system more just and fair to those in pursuit of a better life in America.”

News From Congressman Eliot Engel

Engel Statement on National Gun Violence Awareness Day

  Congressman Eliot Engel, a Member of the Congressional Gun Violence Protection Task Force, issued the following statement on National Gun Violence Awareness Day:

“Today, I am wearing orange to honor the victims of gun violence, including Hadiya Pendleton who, at fifteen years old, was shot and killed a week after performing at President Obama’s 2013 Inauguration. This movement was started when Hadiya’s friends wore orange to commemorate her life, and the lives of so many others that were cut short by gun violence.

“National Gun Violence Awareness Day brings attention to the 33,000 Americans who are killed by guns every year. And for every one person killed with a gun, two more are injured. Our country faces a gun violence epidemic. It is long past time we come together to pass responsible gun safety laws that keep guns out of the hands of dangerous individuals. In Congress, I’m fighting to keep our schools, streets, playgrounds, and homes safe. I’ve worked to ban assault weapons, high-capacity magazines and armor-piercing bullets, institute universal background checks, adopt extreme risk protection orders, and restore funding for gun violence research.  

“It is my hope that National Gun Violence Awareness Day will bring us one step closer to curbing gun violence in America.”

Engel, 64 House Dems Call Upon Trump To Stop Raising Health Care Costs

  Congressman Eliot L. Engel joined 64 House Democrats to urge President Donald Trump to end his campaign of intentional sabotage of the Affordable Care Act.

The Representatives sent their letter as a growing number of states face premium spikes that insurers have directly attributed to the Trump Administration’s acts of sabotage. These actions include the GOP tax scam – which the nonpartisan Congressional Budget Office predicts will lead to millions more uninsured Americans – and moving to once again allow insurance companies to sell “junk plans.”

The Representatives wrote:

“We are deeply concerned by your Administration’s actions, which both trigger higher health insurance premiums as well as undermine access to high-quality, affordable health care for millions of hard-working Americans. The reporting of early filings by health insurers shows that healthcare premiums will rise sharply next year. Their justifications reveal that your Administration’s actions are to blame.”

A signed copy of the letter is available here.

NEW YORK CITY EMERGENCY MANAGEMENT INTRODUCES NEW PHASE OF “KNOW YOUR ZONE” CAMPAIGN TO RAISE AWARENESS OF HURRICANE RISKS DURING THE 2018 ATLANTIC HURRICANE SEASON

  To mark the beginning of the 2018 Atlantic hurricane season, the New York City Emergency Management Department today launched a new phase of the Know Your Zone hurricane awareness campaign to encourage New Yorkers to find out whether they live in one of the city’s six hurricane evacuation zones. Atlantic hurricane season runs from June 1 through November 30. The 2018 Know Your Zone campaign includes new video public service announcements (PSAs)* demonstrating that New Yorkers have the power to prepare for hurricanes by knowing the hazards they may face, having a plan, and staying informed.

“Start preparing for hurricane season now so you’ll be ready long before a hurricane threatens New York City,” saidNew York City Emergency Management Commissioner Joseph Esposito. “Find out whether you live in a hurricane evacuation zone, and make an emergency plan with your family by visiting NYC.gov/knowyourzone or calling 311.”

The National Oceanic and Atmospheric Administration (NOAA) has issued its 2018 Atlantic hurricane season outlook with forecasters predicting a near or above-normal season. NOAA’s forecasters predict a 70 percent likelihood of 10 to 16 named storms of which 5 to 9 could become hurricanes (winds of 74+ mph), including 1 to 4 major hurricanes (category 3, 4, or 5; winds of 111+ mph).

To help raise awareness of hurricane season, Know Your Zone advertisements will be displayed on bus shelters and Link NYC kiosks and will run in newspapers throughout the five boroughs beginning in June. Through the Know Your Zone campaign, NYC Emergency Management aims to reach the roughly three million New Yorkers living within the city’s hurricane evacuation zones. Areas of the city subject to storm surge flooding are divided into six evacuation zones

(1 through 6) based on risk of storm surge flooding. The City may order residents to evacuate depending on a hurricane’s track and projected storm surge.

New Yorkers should take key steps to prepare for the start of hurricane season:

·         Know your zone – Find out whether you live in one of the city’s six hurricane evacuation zones. Use the Hurricane Evacuation Zone Finder at NYC.gov/knowyourzone or call 311 (212-639-9675 for Video Relay Service, or TTY: 212-504-4115) to find out if your address is located in an evacuation zone. If you live in an evacuation zone, have a plan for where you will go if an evacuation order is issued for your area

·         Know what to do – Make a plan so you know what to do, how to find each other, and how to communicate if a hurricane strikes. Use the Ready New York: My Emergency Plan at NYC.gov/myemergencyplan, or use the Ready NYC mobile application, available for smartphones and tablets.

·         Stay informed –Sign up for Notify NYC to receive free emergency notifications and updates via email, phone, SMS/text, or Twitter. Messages are also available in American Sign Language (ASL). Get the free mobile application, visit NYC.gov/notifynyc, call 311, or follow @NotifyNYC on Twitter.

In preparation for the upcoming hurricane season, NYC Emergency Management released the 2018 edition of the “Ready New York: Hurricanes and New York City” guide, available in print and in 13 languages and audio format. The guide offers instructions for preparing an emergency plan, and features a map of the City’s six hurricane evacuation zones and a list of hurricane evacuation centers in all five boroughs. Visit NYC.gov/knowyourzone to download the guide, or call 311 to request a copy.

DOI ANNOUNCES INITIATIVE TO STRENGTHEN ANTI-FRAUD TRAINING AT NYC’S SOCIAL SERVICE AGENCIES

--This Project Stems from a DOI Investigation Exposing a Half-Million-Dollar Theft from a City-Funded Nonprofit --

  Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”), announced today that DOI is strengthening anti-fraud training for more than six dozen auditors at the City’s social service agencies through a two-hour workshop that will help auditors better spot and act on potential fraud and compliance issues involving City-funded nonprofits. Over the coming months, DOI will conduct these trainings at agencies that oversee $3.8 billion in City-funded nonprofit human services’ contracts, specifically the City Department for the Aging (“DFTA”), City Administration for Children’s Services (“ACS”), City Department of Health and Mental Hygiene (“DOHMH”), City Department of Social Services, which is comprised of the City Human Resources Administration (“HRA”) and the City Department of Homeless Services (“DHS), and the City Department of Youth and Community Development (“DYCD”). The trainings will include how compliance can be tested and confirmed, weaknesses and red flags can be identified, relevant records can be chosen for review, and indicia of fraud can be spotted, such as altered and falsified invoices, missing payroll checks and other documentation, and weak internal controls. 

 DOI Commissioner Mark G. Peters said, “This comprehensive anti-fraud training will provide essential tools to professionals safeguarding billions of dollars in taxpayer funds. These frontline auditors know the nonprofits they do business with better than anyone and are likely the first to see evidence of potential fraud. This proactive approach will ensure everyone is on the same page: Each and every one of us can be the answer to stopping corruption and fraud. I commend DFTA, in particular Commissioner Donna Corrado, for acting on DOI’s recommendations.”

 DOI decided to establish this systemic initiative following its 2016 investigation that exposed a halfmillion-dollar theft from a City-funded nonprofit that served senior citizens in upper Manhattan, and led to the conviction and incarceration of that nonprofit’s executive and spouse. DOI documented its findings in a report that revealed the City agency overseeing the nonprofit, DFTA, did not have adequate auditing resources to successfully monitor and review the numerous nonprofits with which it contracted. As a result, DOI recommended that DFTA strengthen its auditing protocols and hire additional staff. DFTA agreed to DOI’s findings and recommendations in that 2016 report and successfully requested and received additional auditor positions. DFTA has since enhanced its auditing operations, including through conducting more targeted and thorough audits.

 As the City’s Inspector General, when DOI makes recommendations in one case, it looks Citywide to see if there are other agencies where these reforms would be useful. DOI saw that the recommendation for training at DFTA would be helpful at other human services agencies and reached out to provide the training to ACS, DOHMH, HRA, DHS and DYCD. Each of these agencies has agreed to have their auditors participate in the training.

 DOI’s first training workshop is taking place today, May 30th, at DFTA, with subsequent trainings scheduled throughout the summer at the other social service agencies as a means towards ensuring audit staff across the City can identify red flags for fraud and abuse during the course of their audits. DOI will provide refresher courses on an as needed basis.

 This initiative is an expansion of the specialized anti-corruption training that DOI has conducted since 2010 for City Council-funded nonprofit organizations, presenting at a special session during the Capacity Building Training for Council-Funded Community Partners, hosted by the Mayor’s Office of Contract Services and funded by the City Council. This training also resulted from DOI investigations. Nonprofit organizations must complete the Capacity Building Training to be eligible for more than $10,000 in City Council funding. The Capacity Building Training for Council-Funded Community Partners was designed to provide nonprofit executive staff and board members with tips and tools for effective implementation of best practices and legal requirements. The full-day curriculum includes legal compliance and governance, internal controls, nonprofit accounting, and managing city contracts, in addition to the DOI anti-corruption session. DOI has trained over 5,000 attendees though these in-person sessions and through the online curriculum.

Cuny Medgar Evers College Lecturer Pled Guilty To Wire Fraud For Selling Fake College Certificates

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MAMDOUH ABDEL-SAYED, a tenured lecturer at the City University of New York’s Medgar Evers College (“Medgar Evers College”), pled guilty yesterday in Manhattan federal court to wire fraud related to his selling of sham Medgar Evers College certificates that purported to represent the completion of health care courses at the College.  ABDEL-SAYED pled guilty before U.S. District Judge Vernon S. Broderick.    

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As he admitted in court, Mamdouh Abdel-Sayed abused his position on the CUNY faculty to enrich himself by creating and selling fake health care program certificates.  In so doing, Abdel-Sayed put public health at risk.  I commend our partners at the New York State Inspector General and the Department of Education Office of Inspector General for their continued commitment to rooting out corruption at federally funded New York schools.”

According to the allegations contained in the Complaint, the Indictment, and statements made in court and publicly available documents:

MAMDOUH ABDEL-SAYED is a tenured lecturer in the Biology Department at Medgar Evers College.  From at least 2013 through 2017, without authorization from Medgar Evers College, ABDEL-SAYED purported to teach health care courses at the College on topics such as Electrocardiograms, Phlebotomy, and Sonography, and provided students with sham certificates of completion for the courses, in exchange for which ABDEL-SAYED charged fees of up to $1,000 per certificate, which money he kept for himself.  ABDEL-SAYED attempted to avoid scrutiny from the College’s security guards in conducting the unauthorized courses.    

In addition to charging fees for the unauthorized courses and sham certificates, ABDEL-SAYED encouraged students to use the certificates in obtaining employment in the health care field, including at New York City-area hospitals.  When asked by employment agencies to verify the authenticity of the certificates, ABDEL-SAYED falsely informed the agencies that the certificates were issued by Medgar Evers College.  In fact, ABDEL-SAYED created the sham certificates himself, and provided them to students even if the students did not attend his unauthorized courses, so long as the students paid ABDEL-SAYED for the certificates.  In addition, ABDEL-SAYED distributed copies of purported national certification examinations – which he informed students on a recorded conversation it was “illegal” for them to possess – in order to assist the students in passing licensing examinations supposedly administered by the State for certain medical techniques. 

After ABDEL-SAYED became aware of the investigation, he instructed an undercover law enforcement investigator, who had posed as a student and purchased several unauthorized certificates from him, to provide false information to federal law enforcement agents and to conceal those certificates from the agents.    

ABDEL-SAYED, 68, of Kearny, New Jersey, pled guilty to one count of wire fraud,  which carries a maximum penalty of 20 years in prison.

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 will be determined by a judge.

ABDEL-SAYED is scheduled to be sentenced by Judge Broderick on September 7, 2018.

Mr. Berman praised the investigative work of the New York State Inspector General’s Office and ED-OIG. 

Head Of Pakistani Drug Trafficking Network Pleads Guilty In Manhattan Federal Court To Conspiring To Import Heroin Into The United States

Shahbaz Khan Conspired to Send Tens of Thousands of Kilograms of Heroin to the United States for Distribution in New York City

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond P. Donovan, Special Agent in Charge of the United States Drug Enforcement Administration (“DEA”) Special Operations Division, announced today that SHAHBAZ KHAN pled guilty to conspiring to import heroin into the United States, and to attempting to import heroin into the United States.  KHAN was taken into custody by Liberian authorities on December 1, 2016, and expelled to the United States later that same day based on a pending Complaint in this District.  He pled guilty today to a Superseding Indictment in Manhattan federal court before U.S. District Judge Lorna G. Schofield.   

U.S. Attorney Geoffrey S. Berman stated:  “Shahbaz Khan boasted to an undercover officer about his ability to smuggle drugs anywhere in the world without detection.  The DEA put the lie to that boast.  Khan has now admitted to conspiring and attempting to import massive quantities of heroin into the United States, and this international narcotics kingpin is now a convicted felon awaiting what could be a substantial sentence.”           

Special Agent in Charge Raymond P. Donovan stated:  “The arrest of Shahbaz Khan was a result of DEA’s relentless pursuit of global drug traffickers and other dangerous transnational criminal networks with our partners across the world.  Khan led a massive and sophisticated heroin network based in Afghanistan and Pakistan, where the vast majority of drug trafficking proceeds have historically been used to finance terrorist insurgencies against the U.S. and our global allies.  He agreed to send huge amounts of deadly drugs to American streets and neighborhoods, which would have fueled the current opioid epidemic and facilitated addiction and abuse by supplying huge amounts of heroin to New York and nationwide.  We are pleased he is facing American justice in a United States court of law.”

According to the, Complaint, the Superseding Indictment, statements made during the plea proceeding, and other filings in this case:

KHAN, a Pakistani national, was the leader of a drug trafficking organization (the “DTO”) based in Afghanistan and Pakistan that produced and distributed massive quantities of heroin around the world.  In 2007, KHAN was designated a Narcotics Kingpin under the Foreign Narcotics Kingpin Designation Act by then-president George W. Bush.  Between approximately August 2016 and October 2016, KHAN conspired to send tens of thousands of kilograms of heroin hidden in maritime shipping containers and air cargo shipments to New York City. 

Beginning in August 2016, KHAN began communicating in a series of telephone calls and in-person meetings in countries in Southwest Asia with individuals whom KHAN believed were heroin traffickers interested in purchasing kilogram quantities of heroin for importation into the United States.  Those individuals were, in fact, working at the DEA’s direction, and included an undercover law enforcement officer (the “UC”). 

In late September 2016, KHAN traveled to a country in Southwest Asia where KHAN met with the UC and others.  During the meeting, KHAN agreed to provide the UC with an initial shipment of five kilograms of heroin for importation into the United States.  KHAN informed the UC that, once the five kilograms of heroin successfully arrived in New York City, KHAN would begin supplying the UC with larger quantities of heroin on a regular basis, including up to 10,000 kilograms of heroin at a time.  KHAN assured the UC that the heroin KHAN would provide was 100% pure.  In describing his history as a narcotics trafficker, KHAN explained he had done work that “had not been done in the past hundred years,” including supplying 114 tons of heroin and hashish to a customer over a one-year period.  KHAN explained that he could ship drugs “anywhere in the word,” hidden in maritime shipping containers or in air-cargo shipments. 

In early October 2016, one of KHAN’s employees, acting at his direction, delivered the five-kilogram initial shipment of heroin in the same country in Southwest Asia.  Through a series of recorded telephone calls, KHAN confirmed with the UC that the heroin his employee had provided was KHAN’s, that the heroin was to be transported to New York City, and that KHAN would be paid for the heroin once it arrived in the United States.

In December 2016, KHAN traveled with the UC to Liberia to inspect a warehouse that could serve as a transshipment point for maritime heroin shipments between Pakistan and New York.  KHAN was arrested by Liberian authorities upon his arrival in Liberia and expelled to the United States. 

KHAN, 70, of Pakistan, pled guilty to one count of conspiring to import one kilogram and more of heroin into the United States, and to one count of attempting to distribute one kilogram and more of heroin, knowing and intending that it would be imported into the United States.  KHAN faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.  Sentencing is scheduled for October 9, 2018, before Judge Schofield. 

Mr. Berman praised the outstanding investigative efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit; the DEA Accra, Canberra, Sydney, Dubai, Islamabad, Kabul, Nairobi, and New Delhi Country Offices; the DEA New York Organized Crime Drug Enforcement Task Force Financial Investigative Team; the Government of Liberia; the Liberian Drug Enforcement Agency; the DEA Nairobi Country Office Kenyan Police Vetted Unit; the Australian Criminal Intelligence Commission; and the Maldives Police Service.  The defendant’s arrest and subsequent expulsion are also the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York and the Department of Justice’s Office of International Affairs.

A.G. Underwood Announces Criminal Indictment Of Queens Investment Advisor For Defrauding Elderly Clients Of Nearly $5 Million

Dean S. Mustaphalli — Owner And Operator of Mustaphalli Capital Partners Fund, LP — Arraigned On 99-Count Indictment Charging Securities Fraud, Grand Larceny, Forgery, and Scheme to Defraud

Underwood: Mustaphalli Deceived and Took Advantage of Clients’ Trust – Looting and Squandering Millions from Senior New Yorkers Who Relied on Those Savings

  Attorney General Barbara D. Underwood today announced a 99-count criminal indictment charging Queens investment advisor Dean S. Mustaphalli —  the owner and operator of Mustaphalli Capital Partners Fund, LP — with operating a multi-million dollar securities fraud scheme.  

Mustaphalli allegedly engaged in a scheme to defraud investors — many of whom were elderly and at or near retirement — out of their savings by investing them in his hedge fund without their knowledge or consent. During the relevant time period, Mustaphalli’s hedge fund collapsed, losing 92% of its value. The Attorney General’s indictment, unsealed in Queens County Supreme Court, charges Mustaphalli with Grand Larceny, Forgery, and Securities Fraud violations under the Martin Act, among other charges. If convicted, Mustaphalli faces up to 10 to 20 years in prison.

According to the Attorney General’s criminal indictment, Mustaphalli’s scheme brought in more than $5 million from 22 victims between June 2014 and March 2017 alone — including many southeast Queens residents, including a number who live in Rochdale Village, a Mitchell-Lama affordable housing complex. A separate civil lawsuit filed by the Attorney General’s office in June 2017 alleges that Mustaphalli fraudulently solicited an additional $7 million from prior investors between 2012 and 2014. In total, Mustaphalli allegedly fraudulently solicited his former clients to invest over $12 million – and lost over $11 million of their hard-earned money.

“New Yorkers should be able to trust the people they turn to for investment advice,” Attorney General Underwood said. “Yet, as we allege, Dean Mustaphalli deceived the clients that trusted him – looting and squandering millions from senior New Yorkers who relied on those savings. Our office will continue to crack down on unscrupulous financial advisors who scam and swindle New Yorkers out of their hard-earned money.”

In June 2017, after a years-long investigation, the Attorney General’s Investor Protection Bureau filed a civil complaint in New York County. In February 2017, the Attorney General’s Criminal Enforcement and Financial Crimes Bureau commenced a criminal investigation into Mustaphalli’s conduct, resulting in the 99-count criminal indictment.  

As set forth in court documents and according to statements made by prosecutors at arraignment, Mustaphalli’s scheme allegedly targeted elderly New Yorkers who had been his investment advisory clients for many years before he opened his own hedge fund, and who had very little prior investment experience.  As their investment advisor, Mustaphalli knew that these investors had relatively conservative investment objectives.   

Nevertheless, beginning in 2010, Mustaphalli allegedly moved his clients’ assets to a platform that would conceal his risky trading activity. Without explanation, and simply saying that the fund would be “better” for clients, Mustaphalli allegedly diverted his clients’ relatively safe investment portfolios to a hedge fund run solely by Mustaphalli.  

As further set forth in the civil complaint, Mustaphalli allegedly targeted his first wave of investors beginning in 2012, moving $7.1 million into his hedge fund, Mustaphalli Capital Partners Fund, LP (“MCPF”). Mustaphalli then allegedly engaged in a series of high-risk investment strategies, and by the end of that year, MCPF lost 92% of its value. In one instance, Mustaphalli allegedly bet $2.5 million on the volatility of the price of Mastercard stock, which lost his clients over $2 million in a single trade. By 2014, only $200,000 was left in the fund.  

As set forth in the criminal indictment and according to statements made by prosecutors at arraignment, after losing almost $7 million of investor monies, Mustaphalli then allegedly brought 22 new clients into his hedge fund by 2015, collecting $5 million in additional investor funds or monies’. Once again, Mustaphalli allegedly targeted mostly elderly individuals who had been his clients for many years and trusted him. To effect these transfers, Mustaphalli allegedly forged account opening documents and submitted fake email addresses for his clients, many of whom did not even know how to operate a computer. 

According to court filings and statements made by prosecutors, Mustaphalli’s clients allegedly had no idea that their retirement monies were being transferred into an extremely high-risk investment, much less to a hedge fund. To further his scheme, the defendant allegedly provided his clients with only the signature pages of fund documents, and forged his client’s initials next to the portion of the documents entitled “Accredited Investor Status,” which falsely stated the investors’ net worth was over $1 million dollars. In fact, almost none of the defendant’s clients had a net worth of over $1 million dollars; indeed, a few investors live in Rochdale Village, a Mitchell-Lama Cooperative located in Queens, which sets aside affordable housing for moderate and middle-income residents. Notably, it is a requirement that hedge fund investors meet the definition of an “accredited investor,” which is a person whose net worth exceeds $1 million.

By December 2015, MCPF had lost approximately 80% of its value, again because Mustaphalli allegedly engaged in extremely high-risk and unauthorized trading strategies, including speculative options trading.  

According to prosecutors, most of the 22 investors named in the indictment allegedly lost all or most of their retirement savings, with losses totaling over $4 million.   

Mustaphalli allegedly sought to deflect blame for the losses by telling investors that the losses were due to “oil, bad markets, and the election.” Mustaphalli allegedly promised one investor, “if Hillary wins, you’ll get your money back,” and told another that “Brexit” was to blame for the Fund’s losses.

In the aftermath of these devastating losses, Mustaphalli allegedly used shell companies that he created to divert $100,000 of the remaining fund balance to himself, leaving investors with at best 20 percent of their original investment.

The Attorney General’s 99-count criminal indictment, unsealed late yesterday in Queens Supreme Court, charges the defendant with: 18 counts of Grand Larceny in the Second Degree (a Class “C” felony); one count of Grand Larceny in the Third Degree (a Class “D” felony); 12 counts of Forgery in the Second Degree (a Class “D” felony); 23 counts of Criminal Possession of a Forged Instrument in the Second Degree (a Class “D” felony); 22 counts of  Falsifying Business Records in the First Degree (a Class “E” felony); 21 counts of securities fraud under the Martin Act (a Class “E” felony); and two counts of Scheme to Defraud in the First Degree (a Class “E” felony).

Mustaphalli was arraigned yesterday in Queens County Supreme Court before the Honorable Judge Wong. Bail was set in the amount of $2 million cash or bond, and the defendant was ordered to surrender any travel documents.

The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.

The Attorney General thanks the Financial Industry Regulatory Authority (FINRA) and, in particular, its Criminal Prosecution Assistance Group for their valuable assistance on this case. 

Engel on Trump Rolling Back Protections for Federal Workers

  Congressman Eliot L. Engel issued the following statement on President Trump issuing executive orders to roll back protections for federal workers:

"This move by the Trump Administration to crack down on Federal Workers' Unions is just their latest attempt to weaken workers' rights in this country. For decades, Republicans have sought to destroy unions because they believe corporate interests should be put before those of the American worker. It was shameful when Reagan did it in the 80's and it is just as shameful now with President Trump, who has a long history of stiffing working-class folks going back to his days in Atlantic City. 

"During my time in Congress, I have voted against amendments which sought to curtail official time, and against measures designed to expedite the firing of federal employees within the VA, because our federal workforce should be free from political pressures and whims. Labor has always been the backbone of our country and the true engine that drives our economic prosperity. Our leaders in government should be working to strengthen our unions, not bring them to their knees."