State Senator Gustavo Rivera Introduces Dakota's Law To Protect Children in New York State From Lead Poisoning

Legislation Will Implement Stronger, More Proactive Measures To Address Lead Poisoning and Exposure of Children in Public and Private Housing Across New York State

Senator Rivera Partnered with NYCHA Resident and Leader Tiesha Jones To Create This Bill After Jones' Daughter, Dakota, Suffered Permanent Developmental Challenges from Extended Lead Exposure 

  State Senator Gustavo Rivera introduced 'Dakota's Law' in the State Senate - a bill that will establish a comprehensive system of preventive measures to address elevated blood lead levels and lead poisoning in all children in New York State. Whether in public or private housing, this bill will expand screening and testing to all children in New York State under 18 years old, prompt adequate action by healthcare providers to report elevated blood lead levels to their local health officers, and trigger proactive action to mitigate the source of lead exposure. Further, this bill will enhance protocols for parents, guardians, healthcare providers, state and local health officers, private property owners, and public housing officials to take proactive action to prevent lead poisoning in children. 

If enacted, Dakota's Law would: 

• Lower the definition of elevated blood lead levels from 10 micrograms to 5 as recommended by the Center for Disease Control and Prevention (CDC). Triggering action at 5 micrograms allows time to address exposure before it causes permanent damage.

• Raise the age of children who are protected and screened under state law from 6 years of age to up to 18 years old.

• Require physicians to report elevated blood lead levels of 5 micrograms or more found in screening and testing of any child under 18 years old to the local or state health department.

• Create a hotline for physicians to report elevated blood lead levels that would activate health officers across the state to conduct investigations in private or public housing units.

• Require that the state assist any local health office with investigations if need be.

• Mandate private insurers and Medicaid to cover screening and testing.

• Include lead exposure testing and elevated blood lead levels on the statewide immunization information system.

• Add questions to a lead exposure risk assessment to check if children were screened and tested at 12 and 24 months old so parents and physicians can assess potential risk or need for additional screening and testing.

The introduction of this bill comes due to mounting concerns about the presence of lead in public housing units in New York City, which had not been adequately inspected for years. The bill was drafted with the input and support of Senator Rivera's constituent, Tiesha Jones, President of the NYCHA Bailey Houses Residents' Council, whose daughter, Dakota, suffered permanent developmental challenges due to a prolonged exposure to lead at her public housing unit during her early childhood years. Despite Jones' efforts to secure medical attention for her daughter and asking for the appropriate lead testing each year, steps were not taken to eliminate the sources of exposure inside her home before the poisoning had reached levels that irreversibly endangered Dakota's overall development.

"Tiesha Jones' leadership in our community consistently inspires me, but her fight to prevent lead poisoning and exposure in children across New York after what happened to her daughter, is truly remarkable," said State Senator Gustavo Rivera. "Our partnership in writing Dakota's Law will create stronger requirements to protect all New York children from lead poisoning and to address lead exposure in homes across our State. We must do everything in our power to find tangible solutions to end lead poisoning in New York State and ensure our children live in safe and healthy environments."

"We would like you to review your updated quote in particular: "Dakota's Law gives parents a sense of hope for their children's well being and for a healthier future free of lead poisoning and its terrible effects," said Tiesha Jones, Dakota's Mother and President of the NYCHA Bailey Houses Residents' Council. "My ultimate goal is to ensure that all children in New York State, whether in public housing or in a private home, are tested more frequently for elevated blood lead levels during their childhood and that all doctors report them to their local health agencies to quickly determine the source of lead exposure. I don't want child in our State to go through what Dakota did and this law will prevent precisely that."

Recent reports revealed disparities in the number of children reported to have elevated blood lead levels in New York City. According to the NYC Department of Health and Mental Hygiene, there were 820 children six years old and younger living in public housing who had blood lead levels of 5 micrograms or more between 2012 and 2016, while there were 4,928 children across the City with this kind of exposure in 2016 alone. This bill aims to address the critical need for a lower microgram level and to enhance protocols to protect children both in private and public residences. Although the CDC recommends to consider blood lead levels elevated at 5 micrograms, the legal requirement in New York State is to act when those levels are at 10 micrograms. Dakota's Law will codify the CDC's recommendation since children with 10 micrograms are already highly susceptible to developmental damage. In addition, currently only children 6 years and younger activate the investigative requirements in New York State. Under Dakota's Law, children up to 18 years old will be included in these enhanced protections.

This comprehensive bill seeks to provide a mechanism to connect key stakeholders in the fight to end lead exposure and poisoning in New York State. Parents, guardians, and family caretakers will have more resources to help children in their care. Physicians and other authorized practitioners will become instrumental in the process of evaluating lead levels in children and will expand their mandatory reporting requirements to prompt appropriate action. State and local health officers will be responsible for addressing reports of elevated blood lead levels in children and will receive more information about where children are potentially being exposed to lead. Public housing officials will have a legal mandate to take actions to address signs of lead poisoning in all children proactively. School Administrators will be able to access information about elevated blood lead levels in their students' immunization record in order to appropriately address any special education needs a child may have resulting from developmental delays from lead exposure.

Trump White House Continues To Attack Cynthia Nixon Over Her Call to #AbolishICE

 Today, the Trump administration put out a statement slamming Cynthia Nixon, invoking the tragedy of September 11th. The statement came just days after Vice President Mike Pence also attacked Cynthia for her calls to abolish ICE. Cynthia issued the following statement in response.

"I do remember 9/11, Donald. When I and many other New Yorkers were running to pick up our kids and make sure our loved ones were safe, you called up FOX News and talked about how you now owned the tallest building in Manhattan. The lesson of 9/11 was not that we need to tear families apart. It was that our country is strongest when we stand together."

DiNAPOLI RELEASES BOND CALENDAR FOR THIRD QUARTER

Tentative Schedule Includes $9.05 Billion of New Money, Refunding and Reoffering Debt Sales

  New York State Comptroller Thomas P. DiNapoli today announced a tentative schedule for the planned bond sales for the state, New York City and their major public authorities during the third quarter of 2018. 

The planned sales of $9.05 billion include $5.45 billion of new money and $3.6 billion of refundings as follows:

·  $5.76 billion scheduled for July, of which $3.45 billion is new money and $2.31 billion are refundings; 

· $1.99 billion scheduled for August, of which $700 million is new money and $1.29 billion are refundings; and

· $1.30 billion scheduled for September, all of which is new money.

The anticipated sales in the third quarter compare to past planned sales of $4.29 billion during the second quarter of 2018, and $8.58 billion during the third quarter of 2017. 

The State Comptroller’s office chairs the Securities Coordinating Committee, which was created by Gubernatorial Executive Order primarily to coordinate the borrowing activities of the state, New York City and their respective public authorities.  All borrowings are scheduled at the request of the issuer and done pursuant to their borrowing programs. 

A new schedule is released every quarter and updated as necessary. The schedule is released by the committee to assist participants in the municipal bond market. It is contingent upon execution of all project approvals required by law. The collection and release of this information by the Office of the State Comptroller is not intended as an endorsement of the proposed issuances it contains, many of which will be subject to approval by the Office of the State Comptroller. 

The prospective third quarter calendar includes anticipated bond sales by the following issuers: the City of New York, the Dormitory Authority of the State of New York, New York City Housing Development Corp., New York City Transitional Finance Authority, the New York State Environmental Facilities Corporation, the Port Authority of New York & New Jersey, the State of New York Mortgage Agency and the Triborough Bridge & Tunnel Authority.

The detailed forward issuance calendar can be obtained at: www.osc.state.ny.us/pension/scccalendar.pdf

Continued Increase in Federal Regional Violent Crime Prosecutions

 These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

June 1 - June 30, 2018

St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers.  Federal prosecution is a powerful tool in the fight to reduce violent crime.  At least 85% of federal sentences must be served; there is no parole in the federal system.  None.  Sentences are served in prisons far from St. Louis.  Below is a list of defendants prosecuted federally in June as a result of the hard work of police and agents:

Robert Childs, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Don Collins, 36, Jennings, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.

Joseph Paster, 30, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.

Clifton Hudson, 34, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.

Daylin Crafton, 30, Florissant, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and ammunition.

Joseph Dixon, Jr., 21, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possession of a firearm in furtherance of a crime of violence. 

Joey Foster, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Davian Hampton, 39, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Virgil Johnson, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Anthony Langston, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Terrence McGee, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Robert Siebert, 63, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm with an obliterated serial number and user of illegal narcotics in possession of a firearm.

Tredell Wilkes, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jevin Fossie, 31, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute heroin and possession of a firearm in furtherance of a drug-trafficking crime.

Eric Jackson, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Corzelius Kent, 34, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug-trafficking crime.

Luis Sanchez-Padilla, 21, St. Louis, was indicted by a federal grand jury on one felony count of illegal alien in possession of a firearm.

Anthony Tobias-Haywood, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Clarence Hill, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Terrance White, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jaleel Adams, 23, St. Louis, was indicted by a federal grand jury on one felony count of distributing acetyl-fentanyl and that the death of a person resulted from the use of such acetyl-fentanyl; possession of a firearm in furtherance of a drug-trafficking crime; and possessed a stolen firearm.

Jesse Calhoun, 51, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jeremy Dickerson, 27, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.

Michael Dilworth, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Leroy Eason, III, 43, St. Louis, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute heroin; felon in possession of a firearm; and possession of a firearm in furtherance of a drug-trafficking crime.

John Ehrsam, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Anthony Ewing, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Dominick Foote, 38, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute a controlled substance; possession of a firearm in furtherance of one or more drug-trafficking crimes; and felon in possession of a firearm.

Danny Harris, 22, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Leona Jackson, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Cyrano Jones, 47, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; and possession of a firearm in furtherance of a drug trafficking crime.

Jeffrey Jones, 21, St. Ann, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Avion Kincade, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jared Levitt, 19, St. Louis, was indicted by a federal grand jury on one felony count of drug user in possession a firearm; possession with the intent to distribute liquid marijuana; and possession of a firearm in furtherance of a drug-trafficking crime.

De’Andre Logan, 18, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possessing a firearm in furtherance of a crime of violence.

William Young, 25, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possessing a firearm in furtherance of a crime of violence.

Lorenzo Luna-Espinoza, 22, Midland, TX, was indicted by a federal grand jury on one felony count of illegal alien in possession of a firearm.

Donte Parks, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Clark Roberts, 49, Cahokia, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with the intent to distribute cocaine; and possession of a firearm in furtherance of a drug-trafficking crime.

Travis Robinson, 21, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Devin Thompson, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.

Cory Chandler, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Vinson Griffin, Jr., 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute heroin; and possession of a firearm in furtherance of a drug trafficking crime.

Victor Mora, 33, was indicted by a federal grand jury on one felony count of interference with commerce by violence.

Tyrell Phillips, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Jerome Rankins, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Earl Rice, 60, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms.

Darius Scott, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

John Spudich, Jr., St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Quoc Tran, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Kenneth Watkins, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.

Emanuel Wesseh, 26, was indicted by a federal grand jury on one felony count of prohibited person in possession of a firearm.

Anthony Williams was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug-trafficking crime.

Brandon Woods, 34, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; interference with commerce by violence; brandishing a firearm in furtherance of a crime of violence; and carjacking.

Roger Goff, 21, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and possession with intent to distribute a controlled substance.

Dyanthany Proudie, 26, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute.

Jamarco Cousins, 30, St. Louis, pled guilty to felon in possession of a firearm.

Anthony Williams, 40, St. Louis, pled guilty to felon in possession of a firearm.

Cortez Cooper, 38, St. Louis, pled guilty to felon in possession of a firearm.

Justin Willis, 24, St. Louis, pled guilty to felon in possession of a firearm.

Domonique Isreal, 25, St. Louis, pled guilty to possession of a firearm in furtherance of a drug trafficking crime.

Christopher Wilson, 28, Omaha, NE, pled guilty to felon in possession of a firearm.

Marlon Adams, 37, St. Louis, pled guilty to felon in possession of a firearm.

Devosha Gray, 19, St. Louis, pled guilty to felon in possession of a firearm.

Alex Wheelis, 27, St. Louis, pled guilty to felon in possession of a firearm.

Donovan Jacobs, 26, St. Louis, pled guilty to felon in possession of a firearm.

Kirk Wallace, 33, St. Louis, pled guilty to felon in possession of a firearm.

William Johnson, 23, St. Louis, pled guilty to felon in possession of a firearm.

Corey States, 40, St. Louis, pled guilty to felon in possession of a firearm.

Andre Adams, 32, St. Louis, pled guilty to felon in possession of a firearm.

Devin Tate, 25, pled guilty to felon in possession of a firearm.

Devosha Gray, 19, St. Louis, pled guilty to felon in possession of a firearm.

Maurice Cooper, 38, St. Louis, pled guilty to felon in possession of a firearm.

Demarco Moorehead, 27, St. Louis, pled guilty to felon in possession of a firearm.

Deandre Thompson, 45, St. Louis, pled guilty to felon in possession of a firearm.

Acotra Weaver, 28, St. Louis, pled guilty to felon in possession of a firearm.

Darryl E. Allen, 50, St. Louis, pled guilty to felon in possession of a firearm.

Tito Santiago, 33, St. Louis, pled guilty to felon in possession of a firearm.

Damen Gascic, 33, pled guilty to felon in possession of a firearm; possession of an unregistered firearm; possession of controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.

Wilbert Anderson, 26, St. Louis, pled guilty to felon in possession of a firearm.

Squacar Gray, 40, St. Louis, pled guilty to felon in possession of a firearm.

Donnell Witherspoon, 37, St. Louis, pled guilty to felon in possession of a firearm.

Melvin Cooper, 49, St. Louis, pled guilty to felon in possession of a firearm.

Damon Catchings, 44, pled guilty to felon in possession of a firearm.

Charles D. Smith, 29, St. Louis, pled guilty to felon in possession of a firearm.

Marvin Williams, 42, St. Louis, pled guilty to felon in possession of a firearm; forcible assault with a firearm; and possession with the intent to distribute marijuana.

Marquis Shores, 35, pled guilty to felon in possession of a firearm.

Sterling Turner, 39, pled guilty to felon in possession of a firearm.

Donovan Jacobs, 26, St. Louis, pled guilty to felon in possession of a firearm.

Deon D. Story, Jr., 38, St. Louis, pled guilty to felon in possession of a firearm.

Justin I. Morrow, 20, St. Louis, pled guilty to armed robbery and discharging a firearm in furtherance of a crime of violence.

Charles J. Jones, 45, St. Louis, pled guilty to felon in possession of a firearm.

Kenneth Foster, 44, St. Louis, pled guilty to felon in possession of a firearm.

Donnell Witherspoon, 37, St. Louis, pled guilty to felon in possession of a firearm.

Kenneth J. Pace, 24, St. Louis, was sentenced to 42 months in prison for felon in possession of a firearm.

Darryl Easley, 48, St. Louis, was sentenced to 96 months in prison for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.

Dominique D. Simpson, 26, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.

Kenyetta Chapman, 22, Stockton, CA, was sentenced to 27 months in prison for felon in possession of a firearm.

Raynard Davison, 44, St. Louis, was sentenced to 8 months in prison for felon in possession of a firearm.

Amin Suluki-Bey, 48, St. Louis, was sentenced to 114 months in prison for armed robbery and brandishing a firearm in furtherance of a crime of violence.

Rashad Faries, 26, St. Louis, was sentenced to 18 months in prison for receipt of a firearm  while under Indictment.

Joshua Brison, 24, St. Louis, was sentenced to 30 months in prison for importing a firearm/ammunition into the United States.

Johnnie Stewart, 36, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.

Demante Syms, 26, St. Louis was sentenced to life in prison for his participation in the killing of three individuals in furtherance of drug trafficking and his tampering with a witness.

Jerome Hughes, 31, St. Louis, was sentenced to 21 months in prison for felon in possession of a firearm.

Anthony Young, 45, St. Louis, was sentenced to 108 months in prison for felon in possession of a firearm.

George Grice, 32, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm and possession with intent to distribute heroin.

Terrell Raney, 40, St. Louis, was sentenced to 19 months in prison for felon in possession of a firearm.

Chad M. Jackson, 34, Florissant, was sentenced to 30 months in prison for felon in possession of a firearm.

Cory Smith, 29, Fenton, was sentenced to 33 months in prison for possession of a firearm/ammunition.

Jacobi Temple, 27, St. Louis, was sentenced to 50 years in prison for conspiracy to distribute heroin and two counts of discharge of a firearm in furtherance of drug trafficking where deaths resulted.

Ramiro C. Valenzuela, 29, St. Charles, was sentenced to 21 months in prison for felon in possession of a firearm.

Jake Richardson, 24, St. Louis, was sentenced to 36 months in prison for felon in possession of a firearm.

Willie McFarland, 43, St. Louis, was sentenced to 18 months in prison for felon in possession of a firearm.

Quavo D. Williams, 22, Washington Park, IL, was sentenced to 12 years in prison for attempted carjacking and brandishing a firearm in furtherance of a crime of violence.

Michael Thomas-Williams, 35, Hazelwood, was sentenced to 90 months in prison for felon in possession of a firearm.

Michael E. Broom, Jr., 28, St. Louis, was sentenced to 60 months in prison for felon in possession of a firearm.

Dane Reed, 41, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.

EDITOR'S NOTE:

If the PROJECT SAFE NEIGHBORHOOD (PSN) program is working in St. Louis, why is not here in New York City?

The above was for June 1 - June 30. One month only. 118 dangerous people taken off the streets of St. Louis. How many could be taken of the streets of New York City?

The population of St. Louis is 320,000 people. The population of New York City is 8,500,000 people. The population of the Bronx is just under 1,500,000 people.

Reputed Godfather of Payday Lending Sentenced to 168 months in Federal Prison

 U.S. Attorney William M. McSwain announced that Charles Hallinan, 77, of Villanova, Pennsylvania, was sentenced today to 168 months in federal prison and ordered to pay a $2.5 million fine in connection with a scheme to collect hundreds of millions of dollars in unlawful debt obtained from high-interest loans. In November 2017, a federal jury convicted Hallinan of all 17 counts of criminal conduct the government charged in its superseding indictment: two counts of conspiracy to violate the Racketeer Influenced and Corrupt Organization Act (“RICO”); one count of conspiracy to commit mail fraud, wire fraud, and money laundering; two counts of mail fraud and aiding and abetting; three counts of wire fraud and aiding and abetting; and nine counts of international money laundering and aiding and abetting.

Hallinan, a former investment banker, was in the payday lending business from at least 1997 to 2013.  Dubbed “the Godfather of payday lending” by the media during his trial, Hallinan owned, operated, and financed companies that issued small-amount, fixed-fee loans and collected debts on these loans in excess of $690 million.  The loans were known in the industry as “payday loans” because borrowers often took them out to cover expenses and then paid back the principal, plus fees and interest, with their next paychecks or other steady income, such as social security payments.  Hallinan made his illegal fortune by charging fixed fees and high interest rates far in excess of what was permitted under states’ usury laws. 

“Charles Hallinan, a sophisticated, highly educated business person, was nothing more than a loan shark whose entire business model was built on trapping his victims in an endless debt cycle,” said U.S. Attorney McSwain. “For years, this defendant unabashedly preyed on those who could least afford it—struggling borrowers who made these loans oftentimes to pay for life’s necessities.  He bet his lifestyle on the fact that we would not catch him. He lost that bet,” McSwain commented. “Now, it’s time for Hallinan to repay his debt with the only currency we will accept: his freedom and his fortune, amassed at his victims’ expense.”

The government proved at trial that Hallinan knew these loans violated state law, so he hid his personal involvement behind a series of “straw” lenders, including a federally-insured bank and three Indian tribes.  Hallinan’s co-defendant, Delaware attorney Wheeler K. Neff, assisted Hallinan in structuring the scam and hiding Hallinan’s involvement.  Neff was sentenced in May 2018 to eight years’ imprisonment for his part in the scheme.

“Charles Hallinan devised an ugly way to make a pretty penny,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division.  “This multimillionaire lived large on the proceeds of his sleazy payday lending empire, built on the backs of people literally living paycheck to paycheck.  Exorbitant fees and usurious interest rates were the name of the game, and Hallinan always walked away the winner.  Well, not this time.  Now he’s walking away in handcuffs, headed to federal prison.”

As part of the sentence imposed today, the government sought and obtained a significant forfeiture judgment against Hallinan, which will strip him of the trappings of success he acquired as a result of his unlawful conduct.  The district court ordered the defendant to pay a forfeiture money judgment of just over $64 million as proceeds of the RICO conspiracy, and also ordered him to forfeit his interest in approximately $1.2 million in funds in 18 bank accounts; two Mercedes Benz vehicles; one Bentley vehicle; and his Villanova mansion.

“IRS Criminal Investigation is committed to using our forensic accounting skills to help unravel complex financial fraud and money laundering schemes,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco.  “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means. Charles Hallinan’s prison sentence is a reminder that there are detrimental consequences for this type of criminal behavior.”

Two Defendants Convicted on All Counts for International Computer Hacking and Securities Fraud Scheme

Defendants Were Part of a Scheme that Made $30 Million in Profits by Trading on Press Releases Stolen by Hackers from Major Newswire Companies

  Vitaly Korchevsky, a former hedge fund manager, and Vladislav Khalupsky, a securities trader, were convicted today in federal court in Brooklyn of conspiracy to commit wire fraud, conspiracy to commit securities fraud and computer intrusion, conspiracy to commit money laundering and two counts of securities fraud in connection with their roles in an international scheme to hack into three business newswires and steal yet-to-be published press releases containing non-public financial information, which was then used to make trades that generated approximately $30 million in illegal profits.  The verdicts followed a four-week trial before United States District Judge Raymond J. Dearie.  When sentenced, each defendant faces a maximum of 20 years’ imprisonment.

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 Michael Breslin, Deputy Assistant Director, United States Secret Service, Office of Investigations (USSS), announced the verdict.

“The defendants teamed up with cybercriminal co-conspirators to hack pre-distribution press releases and then traded in the stock market based on that stolen information, making massive profits as a result,” stated United States Attorney Donoghue.  “Today’s verdict sends a powerful message that this Office, together with our law enforcement partners, will work tirelessly to disrupt any scheme, no matter how sophisticated, that threatens the integrity and fairness of our markets.”  Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Office for the District of New Jersey (USAO-DNJ), the Department of Homeland Security (DHS) and the U.S. Securities and Exchange Commission (SEC) for their significant cooperation and assistance in this case.

“Conspiring with hackers overseas, Korchevsky and Khalupsky worked swiftly to trade on stolen press releases, illegally profiting millions of dollars,” stated FBI Assistant Director-in-Charge Sweeney.  “Such a massive criminal operation called for massive cover-ups, but their attempts to cover their tracks were done in vain.  Devoting much time to the execution of this sneaky scheme, upon sentencing, the defendants will now rightfully face time in prison.”

“This case represents the core of the U.S. Secret Service’s commitment and strategy to aggressively pursue cyber-enabled financial criminal enterprises through our proven taskforce model of global partnerships,” stated USSS Deputy Assistant Director Breslin.  “The guilty verdict delivered today represents a win for the country and for all law enforcement agencies who worked together to ensure that justice was served.”

The evidence at trial established that between February 2010 and August 2015, computer hackers based in the Ukraine gained unauthorized access into the computer networks of Marketwired L.P., PR Newswire Association LLC, and Business Wire, via a series of sophisticated cyberattacks.  At one point, one of the hackers sent an online chat message in Russian to another individual stating, “hacking prnewswire.com.”  The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, revenues and other material non-public information.  Over the course of the scheme, the hackers stole more than 100,000 press releases.

In order to monetize the material non-public information in the stolen press releases, the hackers shared those stolen press releases with a network of traders, including Korchevsky and Khalupsky, via overseas computer servers controlled by the hackers and/or through secure email accounts.  Once they received the stolen press releases, Korchevsky and Khalupsky generally traded ahead of the public distribution of the stolen releases.  In order to execute their trades before the releases were made public, Korchevsky and Khalupsky often had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared information, and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets.  As a result, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release.  The defendants traded on stolen press releases containing material nonpublic information about publicly traded companies that included, among hundreds of others: Align Technology Inc.; CA Technologies; Caterpillar Inc.; Hewlett Packard; Home Depot; Panera Bread Co.; and Verisign Inc.

The illegal trading by the criminal network resulted in gains of more than $30 million, much of which was routed back to the hackers.  Korchevsky traded on the stolen press releases both in accounts that benefited the criminal network as well as in his own personal accounts, and ultimately netted more than $15 million in profits over the course of the scheme.  Khalupsky primarily traded in accounts that benefited the criminal network, and received a percentage of the profits he generated by trading on the stolen press releases, totaling at least $500,000 over the course of the scheme. 

The evidence at trial also demonstrated that the defendants went to great lengths to conceal their roles in the criminal scheme.  The conspirators used separate phones, computers and hotspots to conduct their illegal trading activity, and routinely deleted emails and/or destroyed hardware that contained evidence of their crimes.  The conspirators also directed that payments received for the illegal profits they generated for the criminal network be made to offshore shell companies.

The charges against Korchevsky and Khalupsky were set forth in an indictment that was unsealed in August 2015 in connection with a broader investigation conducted by this Office, the USAO-DNJ, the FBI, the USSS and the DHS, as well as a parallel investigation by the SEC.  In total, nine defendants were charged criminally for their roles in the scheme.  All those defendants have either pleaded guilty or been convicted at trial except for three, who remain at large.

The Defendants:

VITALY KORCHEVSKY
Age: 53
Glen Mills, Pennsylvania

VLADISLAV KHALUPSKY
Age: 47
Brooklyn, New York and Odessa, Ukraine

UPDATED - Remarks as prepared for delivery by Police Commissioner James P. O'Neill - RE: Brooklyn Police Officer Shooting From Kings County Hospital

  Joining me today are: Chief of Department Terry Monahan, Chief of Detectives Dermot Shea, Chief Maddrey, Chief Lear, Brooklyn District Attorney Eric Gonzalez, 1st Deputy Mayor Dean Fuleihan, NYPD Chief Surgeon Dr. Eli Kleiman, Mike Palladino of the Detectives Endowment Association, and Dr. Budarakis of Kings County Hospital.

This information is only about three (3) hours old, is preliminary, and is subject to change.

At about 6:40 this morning, officers assigned to our Brooklyn North Warrants Squad were driving in an unmarked police vehicle, westbound on Fulton Street, between Kingston and Tompkins Avenues.  

While driving, the officers recognized a man walking eastbound on the sidewalk who they knew was wanted for a domestic violence robbery involving a firearm.

The officers made a U-turn and the suspect started to run. The suspect ran onto Tompkins, and then made a right onto Decatur Street.

The officers were able to get in front of the suspect, got out of their vehicle, and chased him on foot. 

The police identified themselves and told the man to show them his hands. The suspect then displayed a gun and shot at the officers, striking a detective once in the leg. The detective returned fire, as did two other officers – and the suspect ran away.

After a search of the immediate area, responding officers located and apprehended the suspect inside a hallway at 39 Kingston Avenue.

A firearm was recovered nearby [in a garbage can].

The suspect is identified as 33-year-old Kelvin Stichel of Brooklyn. He has numerous prior arrests, including for assaulting the police. He is currently being treated at another hospital for an apparent gunshot wound, is expected to survive, and will be charged shortly.

Our detective is a male who has seven (7) years with the NYPD. He is conscious and alert and talking to doctors. At this point, it appears the bullet passed straight through his upper right thigh – in and out.

I want to thank the staff here at Kings County Hospital for the highly-skilled medical care they provided us today, and every time we need to come here. 

And Mayor de Blasio spoke with our injured detective by telephone a short while ago.

This morning’s incident highlights the extremely dangerous work the men and women of the NYPD perform on a daily basis on behalf of New Yorkers in all five boroughs, in every neighborhood. 

We should all be grateful for the outcome today, particularly as we come off yesterday’s one-year anniversary of the murder of Detective Miosotis Familia in the Bronx.

UPDATE:

Police Officer Miguel Soto left the Hospital in the afternoon with his young son on his left thigh, with his wife walking and holding his arm.

The man identified as the shooter Kevin Stichel (age 33) also wounded in the shoot out is in custody with a bullet wound in his arm.

Manhattan U.S. Attorney Files Civil Injunction Lawsuit Against Convicted Tax Preparer To Prevent Him From Continuing To Engage In Tax Preparation Business

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the filing of a civil complaint against SAMUEL GENTLE, who was previously convicted of preparing fraudulent federal tax returns through a tax preparation business, to prohibit him from preparing tax returns for others or engaging in activities that substantially interfere with the administration of federal tax laws. 

U.S. Attorney Geoffrey S. Berman said:  “A tax return preparer who has repeatedly cheated the tax system by filing fraudulent tax returns should not be permitted to continue business as usual.  This Office is committed to ensuring the integrity of the federal tax system that depends on truthful, accurate reporting.”

As alleged in the Government’s complaint filed in federal district court today:

From 2008 to 2014, GENTLE systematically and intentionally filed fraudulent federal tax returns on behalf of customers through his tax return preparation business, GenGen, Inc.  In preparing these tax returns, GENTLE repeatedly invented charitable donations, claimed phony business losses for nonexistent businesses, and fabricated unreimbursed employee business expenses.  GENTLE, who filed an average of 3,200 federal tax returns each year and whose profits depended on word-of-mouth referrals, prepared and fraudulently filed false tax returns in order to reduce his customers’ tax liabilities or obtain tax refunds to which his clients were not entitled.  GENTLE’s conduct caused the United States to lose millions of dollars in understated taxes and fraudulent refunds.  In 2016, a jury found GENTLE guilty of 38 counts of aiding and assisting in the preparation of false and fraudulent federal tax returns.  The Government is now seeking an injunction against GENTLE that would, among other things, permanently bar him from preparing or filing federal tax returns on behalf of others.

Mr. Berman thanked the Internal Revenue Service for its assistance with this case.