Tuesday, August 14, 2018
GERRI B. LAMB FUNERAL AND CELEBRATION OF LIFE
The Funeral and Celebration of Life Service for Gerri Lamb will be held on Saturday, August 18, 2018, at 1:00 pm at the Church of Revelation, where Gerri Lamb served in the Sick and Shut-In Ministry. The Church is located at 1154 White Plains Road, Bronx, NY 10472. The Homegoing Service will be presided over by Pastor Tim Adour and Brother George I. Lamb.
The Viewing will be held Thursday, August 16, 2018, from 4:00 pm – 8:00 pmon and Friday, August 17, 2018, from 4:00 pm – 8:00 pm on at Granby’s Funeral Service, located at 4201 White Plains Road, Bronx, NY 10466.
Gerri B. Lamb was a Castle Hill resident and a community activist for over four decades, died on July 31, 2018, at the age of 73.
Gerri Lamb was born on January 11, 1945, in Wilmington, North Carolina to Lewis and Sarah Thomas-Beckett. She had five sisters and four brothers.
Gerri Lamb, deeply cherished by her family, is survived by her four children: George, Ira, Cheryl, Samantha and Peter; her 12 grandchildren: Shaniece Elliot Lamb, Marcus A. Lamb, Sahrasia A. Guity, Sariah A. Noiis, Solomon G. Cruz, Michael Holcomb, Christian and Aaron Rosado, Angelina Rosario, Shaun Lavin, Ebon, Porrie and Monet Lamb, and her 5 great-grandchildren: Brian Melvin, Jeziah Elliot, Nyair M. Lamb, Raelyn D. Guity-Scott, and Oliver Lavin.
Gerri Lamb moved to New York in 1960 and worked at the United Nations as a Liaison for employment placement services.
In the late 1960’s, Gerri Lamb moved to Bronx County and headed the PTA in every public school her children attended. She ran the Castle Hill Tenants Association and proceeded to work in the Bronx community as a volunteer on behalf of its residents, particularly children, seniors and the poor, through such venues as Pathways for Youth and the Kips Bay Boys and Girls Club.
For many years, Gerri Lamb served as President of the North Bronx Council of NYCHA Tenants, and since its inception in 1991, she chaired the Citywide Council of Presidents, making her the most powerful woman in New York’s public housing.
For more than 20 years, Gerri Lamb served as Castle Hill Resident Association President.
In 1983, Gerri Lamb was able to bring the first “off-campus” site of Touro College to the Castle Hill Community, and during the next four years, more than 20 community residents received their Associates or Bachelors Degree. Gerri Lamb was the driving force behind the ongoing renovation of Castle Hill's community center and the Annual Castle Hill Community Day Celebration. She was responsible for the addition of a gym and bringing in employment, education, computer, literacy, and guidance programs.
Gerri Lamb’s passion for helping people resulted in her being appointed to Bronx Community Board #9, where she remained for more than 25 years, serving in Housing, Zoning and Land Use, Youth and other Committees.
In 2007, after becoming a senior citizen, Gerri Lamb was elected to serve as President of the Castle Hill Senior Center.
Most recently, Gerri Lamb served as a Legislative Aide for Councilman Ruben Diaz, Sr., for whom she had also worked during his tenure in the New York State Senate office. Gerri Lamb also served on the staffs of former Assembly Member Aurelia Greene, and State Senators Israel Ruiz and Efrain Gonzalez, Jr.
Gerri Lamb was the recipient of many awards, including the New York State Minorities in Criminal Justice, Inc.; 2012 IS 131 Parents Association Award; 2007 New York State Housing Authority Queens Community Operations Women’s History Month; 2007 Bronx Christian Charismatic Prayer Fellowship Award; 2010 Women of Distinction Award; the Top 25 Bronx Most Influential Women.
Gerri Lamb was honored to be among the 3.5 million visitors to the National Museum of African American History in Washington, DC. She visited the Museum just weeks before her death.
The following Bronx Elected officials used their social media to express their heartfelt condolences about the passing of Gerri Lamb:
NYC Councilman Reverend Ruben Diaz: said. “My heart is heavy as I am saddened to announce the passing of a friend, staffer, and incredible advocate for the people of Castle Hill – Ms. Gerri Lamb. Gerri Lamb and I have been friends for over 30 years and she has been nothing but kind & loving to myself and others. This is a woman who simply cannot be replaced. She was one of a kind in many regards and I will miss her dearly.”
Bronx Borough President Ruben Diaz, Jr.:said, “I'm saddened to learn of the passing of a Bronx institution, Gerri Lamb. Ms. Lamb was a dedicated community leader and political activist and was also someone my office worked closely with as both a member of the Assembly and as Borough President. Rest in peace. #bronx #nyc”
US Congressman Jose Serrano: “I’m saddened to hear of the passing of Ms. Gerri Lamb. Gerri was a long time community leader in the #Bronx. She was involved in all aspects of community service and was helpful to so many of us. She will be missed. My condolences to her family R.I.P.”
Monday, August 13, 2018
Manhattan U.S. Attorney Announces Criminal Charges Against Zürcher Kantonalbank Of Switzerland
With Deferred Prosecution Agreement Requiring Payment Of $98.5 Million, As Well As Guilty Pleas Of Two Zürcher Kantonalbank Bankers
Bank Admits to Helping U.S. Taxpayer-Clients Hide Hundreds of Millions of Dollars in Offshore Accounts
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, and Don Fort, Chief, Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced the filing of criminal charges against ZÜRCHER KANTONALBANK (“ZKB”), a financial institution headquartered in Zurich, Switzerland. ZKB is charged with conspiring to help U.S. taxpayer-clients evade their U.S. tax obligations, file false federal tax returns, and otherwise hide hundreds of millions of dollars in offshore bank accounts held at ZKB.
Mr. Berman also announced a deferred prosecution agreement with ZKB (the “Agreement”), under which ZKB admitted to its unlawful conduct in assisting U.S. taxpayer-clients in violating their legal duties. The admissions are contained in a detailed Statement of Facts attached to the Agreement. The Agreement requires ZKB to pay a total of $98.5 million. The $98.5 million figure reflects, in part, a credit given to ZKB because of its cooperation in this case. However, the amount of ZKB’s cooperation credit was reduced by the Government due to ZKB’s actions, as described in the Statement of Facts, in dissuading two indicted ZKB bankers from cooperating with U.S. authorities for years after their indictment. Those indicted bankers, STEPHAN FELLMANN and CHRISTOF REIST, also pled guilty today.
The criminal charge against ZKB is contained in an Information (the “Information”) alleging one count of conspiracy to willfully and knowingly (1) defraud the IRS, (2) file false federal income tax returns, and (3) evade federal income taxes. If ZKB abides by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charges.
ZKB has also agreed to provide ongoing assistance to the Department of Justice, including providing detailed information about accounts in which U.S. taxpayers have a direct or indirect interest, including detailed information as to other banks that transferred funds into those accounts or that accepted funds when the ZKB accounts were closed. In addition, ZKB has agreed to cooperate with prosecutors in making treaty requests to Switzerland or other countries for account information.
Manhattan U.S. Attorney Geoffrey S. Berman said: “ZKB and two of its bankers have admitted to conspiring to assist U.S. taxpayers in evading their tax obligations. The bank enabled taxpayers to hide accounts from the IRS and actively sought to win the business of Americans looking to evade taxes. After doing so, ZKB dissuaded the two bankers from cooperating with U.S. authorities, which has today resulted in a reduction in the bank’s cooperation credit. The substantial financial penalties imposed on the bank, and the two bankers’ pleas, should make clear that helping U.S. taxpayers to be tax evaders will not be tolerated.”
Principal Deputy Assistant Attorney General Richard E. Zuckerman said: “ZKB and the other defendants in this case knew that U.S. taxpayers were maintaining undisclosed ‘black money’ accounts at ZKB in order to avoid their tax obligations and did nothing to prevent it. Today’s agreement and guilty pleas send a clear message that this type of conduct will not be tolerated. The Department will continue to work with our partners at IRS-CI to prosecute financial institutions and individuals that conspire to defraud the United States.”
IRS-CI Chief Don Fort said: “Today’s resolution with ZKB and the guilty pleas of two bank employees send a strong message of enforcement and commitment to the international banking community as well as U.S. taxpayers. When individuals and entities hide behind shell corporations and anonymous bank accounts, they are not only cheating the U.S. government, they are cheating the honest taxpaying citizens who are obeying the law and doing the right thing.”
According to the Information, statements made during the proceedings today, and other documents filed in Manhattan federal court, including the Statement of Facts to the Agreement:
The Offense Conduct
From at least in or about 2002 through in or about 2009, ZKB helped certain U.S. taxpayers with accounts at ZKB evade their U.S. tax obligations, file false federal tax returns with the IRS, and otherwise hide accounts held at ZKB from the IRS (hereinafter, “undeclared accounts”). ZKB did so by opening and maintaining undeclared accounts for U.S. taxpayers at ZKB, and by allowing third-party asset managers to open undeclared accounts for U.S. taxpayers at ZKB. ZKB held approximately 2,000 undeclared accounts on behalf of U.S. taxpayer-clients, who collectively evaded over $39 million in U.S. taxes, between 2002 and 2013.
In furtherance of a scheme to help U.S. taxpayers hide assets from the IRS and evade taxes, ZKB undertook, among other actions, the following:
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ZKB entered into approximately 349 “code word agreements” with U.S. taxpayer-clients under which the bank agreed not to identify the U.S. taxpayers by name on bank documents, but rather to identify the U.S. taxpayers by code name, in order to reduce the risk that U.S. tax authorities would learn the identities of the U.S. taxpayers. ZKB understood that a primary reason why U.S. taxpayers sought these “code word” accounts was to evade detection by U.S. tax authorities.
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ZKB opened and maintained accounts for many U.S. taxpayer-clients held in the name of non-U.S. corporations, foundations, trusts, or other legal entities (collectively, “structures”), thereby helping those U.S. taxpayers conceal their beneficial ownership of the accounts. Some of the structures had no business purpose (“sham structures”), but rather, existed solely for the purpose of helping ZKB’s U.S. taxpayer-clients hide their offshore assets.
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ZKB agreed to hold bank statements and other mail relating to approximately 750 accounts of U.S. domiciled taxpayer-clients at ZKB’s offices in Switzerland, rather than send them to U.S. taxpayer-clients in the United States, which helped ensure that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities.
- ZKB solicited new business through the website www.swiss-bank-accounts.com, which was operated by a third party, and which resulted in the opening of accounts at ZKB for U.S. taxpayer-clients whose accounts were undeclared.
ZKB knew that certain U.S. taxpayer-clients were maintaining undeclared accounts at ZKB in order to evade their U.S. tax obligations, in violation of U.S. law. ZKB understood the legal prohibitions regarding tax evasion to be distinct from ZKB’s obligations under its Qualified Intermediary Agreement. Certain ZKB bankers commonly used the term “Schwarzgeld” – German for “black money” – internally to refer to undeclared accounts, including those held by U.S. citizens. Until the middle of 2008, ZKB did not prevent any U.S. persons from opening an account if they refused to fill out a Form W-9, even though ZKB knew that such accounts were, or were highly likely to be, undeclared. Indeed, in May 2006, internal ZKB documents explicitly discussed the profitability of “[n]on-disclosed U.S. persons.”
At its high-water mark in 2008, ZKB had approximately $794 million in assets under management relating to undeclared accounts held by U.S. taxpayer-clients. From 2002 through 2013, ZKB earned approximately $21 million in profits on approximately $24 million gross revenues from its undeclared U.S. taxpayer accounts, including accounts held through structures.
In early 2008, U.S. enforcement actions against the Swiss banking institution UBS became public. In or about July 2008, UBS announced that it would cease providing cross-border private banking services to U.S.-domiciled clients. Rather than immediately closing down its own U.S. taxpayer undeclared accounts as a result of the UBS investigation, ZKB, through its external asset manager (“EAM”) desk, instead treated UBS’s decision to stop accepting U.S. taxpayer-clients as a business opportunity, and actively sought to increase its U.S. taxpayer-client base. ZKB gained many U.S. taxpayer-clients through EAMs working with the bank.
However, in 2008 and 2009, at the same time as ZKB’s EAM Desk proactively sought to increase its U.S. taxpayer-client base, ZKB also began implementing a number of measures that gradually limited securities accounts held by U.S. taxpayer-clients. At first the restrictions applied only to former UBS clients, but ZKB expanded its restrictions over time. By June of 2009, ZKB decided to close its business with all U.S. domiciled clients holding securities accounts, and in 2011, ZKB decided to exit its business with all remaining U.S.-domiciled customers. By 2012, ZKB had closed virtually all accounts held by U.S. domiciled taxpayers, and for those U.S. clients domiciled outside of the U.S., ZKB sought a Form W-9 and proof of U.S. tax compliance. ZKB has now terminated all U.S. cross-border business.
Indictment of ZKB Employees and ZKB’s Response to the Indictment
Despite ZKB’s cooperation with the Government in this case, the Government views the actions of ZKB with respect to indicted bankers FELLMANN and REIST, described in the Statement of Facts, as inconsistent with a policy of full cooperation. Those actions, accordingly, have reduced the amount of cooperation credit afforded by the Government to ZKB.
In December 2012, three ZKB bankers – FELLMANN, REIST, and Otto Hüppi – were charged in the Southern District of New York with conspiracy to defraud the United States and the IRS for their role in ZKB’s offense. Although ZKB retained independent U.S. counsel for the bankers, beginning in 2013 and continuing through 2015, ZKB’s in-house counsel and, at times, ZKB employees from the Human Resources department and other departments, regularly met with FELLMANN and REIST. At those meetings, which were not attended by FELLMANN and REIST’s independent U.S. counsel, ZKB, among other things, made statements that caused FELLMANN and REIST to feel dissuaded from reaching out to the U.S. Attorney’s Office in order to explore the possibility of cooperating. In addition, ZKB’s in-house counsel suggested to FELLMANN that he did not have any information of value to contribute to the U.S. Attorney’s Office’s ongoing investigation. Furthermore, based on conversations with ZKB, FELLMANN and REIST felt that their continued employment at ZKB and ZKB’s ongoing payment of their legal fees would be threatened should they take steps that were viewed by ZKB as inconsistent with the bank’s own interests. Due in part to these discussions with ZKB, FELLMANN and REIST did not seek to cooperate with the investigation until the summer of 2015, approximately two and a half years after being indicted.
FELLMANN, 53, a Swiss citizen, and REIST, 60, a Swiss citizen, each pled guilty to one count of conspiracy to willfully fail to file returns, supply information, or pay tax. FELLMANN and REIST each face a maximum sentence of one year in prison. The statutory maximum sentence is prescribed by Congress and is provided here for information purposes only, as any sentences imposed on the defendants will be determined by the judge.
FELLMANN and REIST are each scheduled to be sentenced before U.S. District Judge J. Paul Oetken on November 30, 2018.
Hüppi remains a fugitive.
Mr. Berman praised the outstanding investigative work of IRS-CI, and thanked the Justice Department’s Tax Division for its assistance in the investigation.
Bank Admits to Helping U.S. Taxpayer-Clients Hide Hundreds of Millions of Dollars in Offshore Accounts
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, and Don Fort, Chief, Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced the filing of criminal charges against ZÜRCHER KANTONALBANK (“ZKB”), a financial institution headquartered in Zurich, Switzerland. ZKB is charged with conspiring to help U.S. taxpayer-clients evade their U.S. tax obligations, file false federal tax returns, and otherwise hide hundreds of millions of dollars in offshore bank accounts held at ZKB.
Mr. Berman also announced a deferred prosecution agreement with ZKB (the “Agreement”), under which ZKB admitted to its unlawful conduct in assisting U.S. taxpayer-clients in violating their legal duties. The admissions are contained in a detailed Statement of Facts attached to the Agreement. The Agreement requires ZKB to pay a total of $98.5 million. The $98.5 million figure reflects, in part, a credit given to ZKB because of its cooperation in this case. However, the amount of ZKB’s cooperation credit was reduced by the Government due to ZKB’s actions, as described in the Statement of Facts, in dissuading two indicted ZKB bankers from cooperating with U.S. authorities for years after their indictment. Those indicted bankers, STEPHAN FELLMANN and CHRISTOF REIST, also pled guilty today.
The criminal charge against ZKB is contained in an Information (the “Information”) alleging one count of conspiracy to willfully and knowingly (1) defraud the IRS, (2) file false federal income tax returns, and (3) evade federal income taxes. If ZKB abides by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charges.
ZKB has also agreed to provide ongoing assistance to the Department of Justice, including providing detailed information about accounts in which U.S. taxpayers have a direct or indirect interest, including detailed information as to other banks that transferred funds into those accounts or that accepted funds when the ZKB accounts were closed. In addition, ZKB has agreed to cooperate with prosecutors in making treaty requests to Switzerland or other countries for account information.
Manhattan U.S. Attorney Geoffrey S. Berman said: “ZKB and two of its bankers have admitted to conspiring to assist U.S. taxpayers in evading their tax obligations. The bank enabled taxpayers to hide accounts from the IRS and actively sought to win the business of Americans looking to evade taxes. After doing so, ZKB dissuaded the two bankers from cooperating with U.S. authorities, which has today resulted in a reduction in the bank’s cooperation credit. The substantial financial penalties imposed on the bank, and the two bankers’ pleas, should make clear that helping U.S. taxpayers to be tax evaders will not be tolerated.”
Principal Deputy Assistant Attorney General Richard E. Zuckerman said: “ZKB and the other defendants in this case knew that U.S. taxpayers were maintaining undisclosed ‘black money’ accounts at ZKB in order to avoid their tax obligations and did nothing to prevent it. Today’s agreement and guilty pleas send a clear message that this type of conduct will not be tolerated. The Department will continue to work with our partners at IRS-CI to prosecute financial institutions and individuals that conspire to defraud the United States.”
IRS-CI Chief Don Fort said: “Today’s resolution with ZKB and the guilty pleas of two bank employees send a strong message of enforcement and commitment to the international banking community as well as U.S. taxpayers. When individuals and entities hide behind shell corporations and anonymous bank accounts, they are not only cheating the U.S. government, they are cheating the honest taxpaying citizens who are obeying the law and doing the right thing.”
According to the Information, statements made during the proceedings today, and other documents filed in Manhattan federal court, including the Statement of Facts to the Agreement:
The Offense Conduct
From at least in or about 2002 through in or about 2009, ZKB helped certain U.S. taxpayers with accounts at ZKB evade their U.S. tax obligations, file false federal tax returns with the IRS, and otherwise hide accounts held at ZKB from the IRS (hereinafter, “undeclared accounts”). ZKB did so by opening and maintaining undeclared accounts for U.S. taxpayers at ZKB, and by allowing third-party asset managers to open undeclared accounts for U.S. taxpayers at ZKB. ZKB held approximately 2,000 undeclared accounts on behalf of U.S. taxpayer-clients, who collectively evaded over $39 million in U.S. taxes, between 2002 and 2013.
In furtherance of a scheme to help U.S. taxpayers hide assets from the IRS and evade taxes, ZKB undertook, among other actions, the following:
- ZKB entered into approximately 349 “code word agreements” with U.S. taxpayer-clients under which the bank agreed not to identify the U.S. taxpayers by name on bank documents, but rather to identify the U.S. taxpayers by code name, in order to reduce the risk that U.S. tax authorities would learn the identities of the U.S. taxpayers. ZKB understood that a primary reason why U.S. taxpayers sought these “code word” accounts was to evade detection by U.S. tax authorities.
- ZKB opened and maintained accounts for many U.S. taxpayer-clients held in the name of non-U.S. corporations, foundations, trusts, or other legal entities (collectively, “structures”), thereby helping those U.S. taxpayers conceal their beneficial ownership of the accounts. Some of the structures had no business purpose (“sham structures”), but rather, existed solely for the purpose of helping ZKB’s U.S. taxpayer-clients hide their offshore assets.
- ZKB agreed to hold bank statements and other mail relating to approximately 750 accounts of U.S. domiciled taxpayer-clients at ZKB’s offices in Switzerland, rather than send them to U.S. taxpayer-clients in the United States, which helped ensure that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities.
- ZKB solicited new business through the website www.swiss-bank-accounts.com, which was operated by a third party, and which resulted in the opening of accounts at ZKB for U.S. taxpayer-clients whose accounts were undeclared.
ZKB knew that certain U.S. taxpayer-clients were maintaining undeclared accounts at ZKB in order to evade their U.S. tax obligations, in violation of U.S. law. ZKB understood the legal prohibitions regarding tax evasion to be distinct from ZKB’s obligations under its Qualified Intermediary Agreement. Certain ZKB bankers commonly used the term “Schwarzgeld” – German for “black money” – internally to refer to undeclared accounts, including those held by U.S. citizens. Until the middle of 2008, ZKB did not prevent any U.S. persons from opening an account if they refused to fill out a Form W-9, even though ZKB knew that such accounts were, or were highly likely to be, undeclared. Indeed, in May 2006, internal ZKB documents explicitly discussed the profitability of “[n]on-disclosed U.S. persons.”
At its high-water mark in 2008, ZKB had approximately $794 million in assets under management relating to undeclared accounts held by U.S. taxpayer-clients. From 2002 through 2013, ZKB earned approximately $21 million in profits on approximately $24 million gross revenues from its undeclared U.S. taxpayer accounts, including accounts held through structures.
In early 2008, U.S. enforcement actions against the Swiss banking institution UBS became public. In or about July 2008, UBS announced that it would cease providing cross-border private banking services to U.S.-domiciled clients. Rather than immediately closing down its own U.S. taxpayer undeclared accounts as a result of the UBS investigation, ZKB, through its external asset manager (“EAM”) desk, instead treated UBS’s decision to stop accepting U.S. taxpayer-clients as a business opportunity, and actively sought to increase its U.S. taxpayer-client base. ZKB gained many U.S. taxpayer-clients through EAMs working with the bank.
However, in 2008 and 2009, at the same time as ZKB’s EAM Desk proactively sought to increase its U.S. taxpayer-client base, ZKB also began implementing a number of measures that gradually limited securities accounts held by U.S. taxpayer-clients. At first the restrictions applied only to former UBS clients, but ZKB expanded its restrictions over time. By June of 2009, ZKB decided to close its business with all U.S. domiciled clients holding securities accounts, and in 2011, ZKB decided to exit its business with all remaining U.S.-domiciled customers. By 2012, ZKB had closed virtually all accounts held by U.S. domiciled taxpayers, and for those U.S. clients domiciled outside of the U.S., ZKB sought a Form W-9 and proof of U.S. tax compliance. ZKB has now terminated all U.S. cross-border business.
Indictment of ZKB Employees and ZKB’s Response to the Indictment
Despite ZKB’s cooperation with the Government in this case, the Government views the actions of ZKB with respect to indicted bankers FELLMANN and REIST, described in the Statement of Facts, as inconsistent with a policy of full cooperation. Those actions, accordingly, have reduced the amount of cooperation credit afforded by the Government to ZKB.
In December 2012, three ZKB bankers – FELLMANN, REIST, and Otto Hüppi – were charged in the Southern District of New York with conspiracy to defraud the United States and the IRS for their role in ZKB’s offense. Although ZKB retained independent U.S. counsel for the bankers, beginning in 2013 and continuing through 2015, ZKB’s in-house counsel and, at times, ZKB employees from the Human Resources department and other departments, regularly met with FELLMANN and REIST. At those meetings, which were not attended by FELLMANN and REIST’s independent U.S. counsel, ZKB, among other things, made statements that caused FELLMANN and REIST to feel dissuaded from reaching out to the U.S. Attorney’s Office in order to explore the possibility of cooperating. In addition, ZKB’s in-house counsel suggested to FELLMANN that he did not have any information of value to contribute to the U.S. Attorney’s Office’s ongoing investigation. Furthermore, based on conversations with ZKB, FELLMANN and REIST felt that their continued employment at ZKB and ZKB’s ongoing payment of their legal fees would be threatened should they take steps that were viewed by ZKB as inconsistent with the bank’s own interests. Due in part to these discussions with ZKB, FELLMANN and REIST did not seek to cooperate with the investigation until the summer of 2015, approximately two and a half years after being indicted.
FELLMANN, 53, a Swiss citizen, and REIST, 60, a Swiss citizen, each pled guilty to one count of conspiracy to willfully fail to file returns, supply information, or pay tax. FELLMANN and REIST each face a maximum sentence of one year in prison. The statutory maximum sentence is prescribed by Congress and is provided here for information purposes only, as any sentences imposed on the defendants will be determined by the judge.
FELLMANN and REIST are each scheduled to be sentenced before U.S. District Judge J. Paul Oetken on November 30, 2018.
Hüppi remains a fugitive.
Mr. Berman praised the outstanding investigative work of IRS-CI, and thanked the Justice Department’s Tax Division for its assistance in the investigation.
Comptroller Stringer Economic Update: City’s Unemployment Rate Drops to Record-Low in Second Quarter of 2018
City’s unemployment rate at 4.2%, a historic low
City’s economy steadily expands with 2.7% growth rate, boosted by expanding job market and modest wage growth
New York City’s economy continued to grow moderately during the spring of 2018, as gross city product grew 2.7% for the second consecutive quarter, according to an analysis of the City’s economic performance released today by New York City Comptroller Scott M. Stringer.
Unemployment in New York City hit a historic low of 4.2% in the second quarter as private-sector job growth accelerated, adding 13,800 new jobs in April, May, and June of 2018. Fewer than half of new private-sector jobs were in lower-wage industries, as high-wage industries added 6,000 new jobs – the biggest gain in the last two years.
“Strong economic growth and thousands of new jobs mean greater opportunity for New Yorkers across the five boroughs. We must take advantage of our City’s strong economy now, and set the foundation for long-term growth that lifts everyone up – that means linking local residents with good-paying local jobs, bold ideas to make housing more affordable, and thinking outside the box on issues from childcare to transportation,” said Comptroller Scott M. Stringer. “These numbers are good signs, but there are risks to the continued expansion. Between rising federal deficits and a possible trade war, it is more important than ever to prepare for the future.”
Released every three months, the Comptroller’s Quarterly Economic Update tracks New York City’s economic health and analyzes the City’s economy in a national context. Findings in the Second Quarter 2018 Update include:
NYC Economy Continues at Solid Pace
- New York City’s economy expanded 2.7 percent in the second quarter of 2018, roughly the same pace as in the first quarter.
U.S. Growth Hit Nearly Four-year High
- The U.S. economy, as measured by the change in real GDP, grew 4.1 percent (advance estimate).
- National economic growth was driven by a 4.0 percent increase in personal consumption and 9.3 percent growth in exports, spurred in part by the anticipation of damaging national trade policies in the future.
Unemployment Rate Falls to Historic Low
- The City’s unemployment rate, adjusted for seasonal variations, fell from 4.3 percent in Q1 2018 to 4.2 percent in Q2 2018, the lowest rate on record.
- All five boroughs experience their lowest second quarter levels on record, as the unemployment rate dropped to:
- 3.4 percent in Queens;
- 3.5 percent in Manhattan;
- 3.9 percent in Staten Island;
- 4.0 percent in Brooklyn; and
- 5.3 percent in the Bronx.
- The number of employed City residents increased by 2,400 in Q2 2018 to a record high of 4,049,200.
New York City Private-Sector Jobs Growth Accelerated
- Private-sector hiring grew at an annual rate of 1.4 percent in Q2 2018.
- Of the 13,800 private-sector jobs added in the second quarter, 6,300 were in low-wage industries; 1,600 were in medium-wage industries; and 6,000 were in high-wage industries.
- Private-sector job gains included 7,700 in health care and social assistance.
- Housing-related sectors, including construction and other real estate and property workers, lost 1,900 jobs in the second quarter, the biggest decline since the first quarter of 2010. Government employment fell by 1,200 jobs.
Average Hourly Earnings and Personal Income Tax Collections Continued to Rise
- Average hourly earnings (AHE) of all private NYC employees rose 2.5 percent in Q2 2018, compared to the same period last year, slightly lower than the U.S. growth rate of 2.7 percent.
- Personal income taxes withheld from paychecks, an indicator of income levels, rose 11.8 percent in Q2 2018 compared to the same time last year – reflecting wage growth as well as a potential bump in one-time bonuses.
- Estimated tax payments, which reflect trends in taxpayers’ non-wage income, including interest earned, rental income, and capital gains, grew 5.0 percent in Q2 2018.
Venture Capital Investment Slowed
- Total venture capital investment in the New York metro area fell 1.7 percent in Q2 2018 compared to the same period last year – to $2.8 billion, as total investment in the U.S. grew by 19.5 percent. However, the number of deals in the New York metro area rose to 193, from 186 in the same period last year.
New Commercial Leasing Surged, While Residential Market Weakened
- New commercial leasing activity in Manhattan increased 16.7 percent to 9.1 million square feet in the second quarter, the highest second-quarter level since 2011. Vacancy rates and average rents remained flat compared with a year ago.
- The residential housing market continued to soften. Home prices in Manhattan, as measured by the average sales price and average price per square foot, fell on a year-over-year basis for the fourth consecutive quarter after nine consecutive quarters of year-over-year growth. The number of Manhattan sales also declined for the third consecutive quarter, causing an increase in listing inventories.
- The number of home sales also fell in Brooklyn and Queens on a year-over-year basis. The average sales price in Brooklyn fell 1.4 percent to $984,047, while the average sales price in Queens rose 7.6 percent to $629,869.
MTA Ridership Continued Decline
- Average weekday ridership on MTA subways fell 1.7 percent and bus ridership fell 4.0 percent in April and May. During the same period, ridership on the Long Island Rail Road (LIRR) fell 0.6 percent, but rose by 0.1 percent on Metro North.
Leading Economic Indicators are Mostly Positive
- The City’s leading economic indicators signaled continued expansion. The current business condition index provided by ISM-New York, Inc. (which measures the current state of the economy from the perspective of business procurement professionals) fell to 58.6 percent in the second quarter, below 60.3 percent in the prior quarter. However, a reading greater than 50 percent indicates growth.
- Initial unemployment claims decreased 11.9 percent, on a year-over-year basis, the second consecutive quarter of decline. However, total building permits in the City fell 3.1 percent to 5,476 in the second quarter from a year ago. A decline in the number of building permits could indicate a fall in demand for construction and construction jobs.
To view the full report, visit Comptroller Stringer’s interactive webpage at www.comptroller.nyc.gov/EconomicData or click here for a PDF.
MAYOR DE BLASIO ANNOUNCES THAT SINCE LAPSE OF SPEED-CAMERA LAW, MORE THAN 132,000 DRIVERS HAVE BEEN OBSERVED TRAVELING AT DANGEROUS SPEEDS NEAR SCHOOLS
Because of State Senate inaction, none of these drivers received a summons; just before the start of school in September, the final 20 mobile cameras will also go dark, leaving students at risk
Mayor Bill de Blasio announced the first status report since the majority of New York City’s school safety speed-cameras went dark last month. According to the Department of Transportation (DOT), which is still collecting speed data from deactivated cameras, 132,253 drivers have been observed through Friday, August 10th exceeding the speed limit by more than 10 miles per hour during school hours. On July 25th, the City was required to shut off speed cameras in 120 school zones.
“In just over two weeks’ time since the cameras stopped issuing summonses, tens of thousands of drivers sped past schools. Even worse, because of State Senate inaction, these drivers will face absolutely no consequences for this lethal behavior,” said Mayor Bill de Blasio. “The State Senate must end their vacation early and act before the first day of school, which is just weeks away. Our children’s lives depend on it.”
“We at DOT know that speeding is a leading cause of traffic deaths – and so we are closely monitoring what the loss of speed cameras does to street safety,” said DOT Commissioner Polly Trottenberg. “But we already know this much: over 130,000 drivers felt comfortable putting their fellow New Yorkers at grave risk, and because of the State Senate, they will pay no penalty for it. The Senate must act now, before the inevitable consequence of their inaction hits.”
“This is a matter of life and death, and we need the Senate to return to Albany and turn the cameras back on,” said Schools Chancellor Richard A. Carranza. “As we get ready for a new school year, we can’t accept a reality where our kids will be less safe as they walk to and from school. The speed camera program is vital for our students, our families, and our City.”
“Today’s news is further evidence that we need speed cameras in school zones. Period. It is unbelievable that we have to continue begging Republicans in the State Senate to extend and expand the lifesaving school zone speed camera program, but that does not mean that we will give up. The Mayor, my colleagues in the Council and I are reinforcing our commitment to safe streets and letting it be known that we will continue to hold Senate Republicans accountable until they step up and do their jobs to protect our city’s children,” said Council Speaker Corey Johnson.
“It is long past time for the Senate to do the right thing and step up to protect school children,” saidAssembly Speaker Carl Heastie. “With students returning to school in just a few short weeks, it is simply unacceptable that the Senate has refused to pass the legislation necessary to keep our children safe and save lives. #passthebill.”
“New York became less safe the moment these speed cameras were turned off – and now we’re seeing how important these protections were. When 132,000 drivers speed through a school zone in three weeks, that represents 132,000 times that families, children, seniors, and everyone on the street were placed in danger,” said New York City Comptroller Scott M. Stringer. “When you put your neighbors at risk, you should be held accountable – and that goes for State Senators as well. Every second without these cameras is too long. We need action now.”
On July 25th, the first 120 speed camera school zones operated by DOT were deactivated and stopped issuing summonses. 20 mobile speed cameras will remain operational until August 30th.
A bill to continue the use of the cameras and also to expand their use to other schools passed the Assembly and has the support of the Governor. The bill, A7798C/S6046C, has 35 co-sponsors in the Senate where only 32 votes are needed to pass any given bill. Nearly every Senator who represents New York City has supported the bill – however, it has not been brought up for a vote by the Senate leadership.
EDITOR'S NOTE:
At previous press conferences I stated that the NYCDOT surveyed a downward slopping road that was directly behind the Russian Mission in Riverdale, and not the street in front of PS 81 which everyone thought was surveyed by the DOT, including State Senator Jeff Klein who helped get the Speed Camera legislation passed in the state senate.
I asked the mayor if he would now do a survey of the street in front of PS 81, telling him that when Senator Klein did two surveys of the street in front of PS 81 the results were much lower than the DOT's survey of Russian diplomats speeding downhill towards the Henry Hudson Parkway South to get to the U.N.
Mayor de Blasio responded "I am not going to cater to the constituents of a certain elected official because they do not like speed cameras."
Last Thursday at the For-hire rally in Union Square Park I asked the Mayor if he was going to endorse the former IDC heads opponent Alessandra Biaggi since he is endorsing opponents of former IDC members. The mayor responded that he has only endorsed one person in Brooklyn who is running against a former IDC member. I countered by saying you also endorsed Ms. Jessica Ramos in Queens. The mayor said that he has not and will consider each candidate separately.
Three days later on Sunday Mayor Bill de Blasio endorsed Jessica Ramos for State Senate over her former IDC member opponent.
Perhaps the mayor should listen to me again by placing more police officers in cars equipped with radar speed monitoring machines. A much larger fine, points on a license, and possible suspension or revocation of a drivers license is much more of a deterrent than a fifty dollar summons to the owner of the vehicle.
Council Member Ruben Diaz Sr - The Trump Effect - WHAT YOU SHOULD KNOW
WHAT YOU SHOULD KNOW
By Councilman Rubén Díaz Sr.
District 18 Bronx County, New York
The Trump Effect
You Should know that President Donald Trump’s policies are starting to take effect on some members of the minority communities.
As you know President Trump has been pointing out, and criticizing the way in which the Democratic Party has, for years, taken the minority communities for granted; especially the African American, Black and Latino Communities.
President Trump has pointed to, as evidence of this fact, the total devastation, and abandon city such as experienced in Detroit, the high crime, murder, and shooting deaths of African American youths on the streets of Chicago, the high unemployment rate, the decay and crumpling public housing, the high number of homelessness, and overcrowded classrooms, in low underperforming public schools, noting that these conditions exists in most urban cities under the control of Democrats in this nation.
President Trump has even indicated that the African Americans are losing jobs, political clout and power and resources due to the increasing influx of the Latino and other immigrants entering the United States.
Due to the Trump effect there are a great number in our communities, Black, Latino, and other lifelong Democrats that have begun an underground movement (# Walk-Away) who have strong sentiments, highly discouraged with the Democratic Party, who are inclined to believe and follow President Trump’s statements. However, given the political climate they are not willing to express their support for Trump publicly from fear of repercussions. I have found that many will speak ill of the President in public, but in private are Trump supporters.
In reading a Daily News article, Monday August 13, 2018, authored by Mr. Kenneth Lovett who is also the Albany News Bureau Chief, I learned that even the Hip-Hop Communities are angry with the Democratic party and they are forming their own political party composed of the African Americans disgusted with the Democrats.
According to Mr. Lovett’s article the Hip Hop Community led by Ms. Jineea Butler is forming their African American political party under the name of “The New American Party” Ms. Butler is the founder of the “Hip Hop Union”. Ms. Jineea Butler has confirmed these rumors stating that she is trying to recruit Hip Hop artists such as LL Cool J., and others. Assisting Ms. Butler’s efforts is Mr. Eric Barrier, who is part of the Hip Hop duo Eric B. and Ramkin.
In our community there are those that believe that the election of the admitted, Socialist Ms. Alexandria Ocasio-Cortes, is a result of the peoples sentiments of the Democrats taking the minority vote for granted.
Ms. Ocasio-Cortes was an unknown, 28 year old Puerto Rican woman who defeated a white male, seasoned Democrat, believed to become the next Speaker of the House, Mr. Joseph Crowley, who also took the minority Democratic vote for granted.
The problem with Ocasio-Cortes is that she is doing the same things as the other Democrats. Ms. Ocasio is taking us for granted, believing that once she has won the Democratic primary makes her a shoe in come the general elections. Apparently she has forgotten the district that elected her, and is traveling the nation on interviews instead of preparing herself to beat Crowley. She has forgotten that Congressman Crowley is still in the running, and that even though he is not actively campaigning his name will appear as a candidate for re-election for the New York State “Working Families Party”.
We all know that once you are the Democratic Party Candidate you may be safe. But some are saying that after getting to know more about Ms. Ocasio-Cortes and her admission of being a devoted socialist, they may be inclined to jump the line and re-elect Mr. Joe Crowley on the “Working Families Party” line, come November 6, and that will be due to the Trump Effect.
I am Councilman Rev. Ruben Diaz and this is what you should know.
EDITOR'S NOTE:
It is a shame that since the Bronx Democratic County organization backed the losing white male candidate in a majority minority district that they send out the 'Old Pit Bull' to stir up trouble. The oldest member of the Bronx delegation who is no stranger to Republican candidates running for office is now saying that the white Queens Democratic County Leader who is running on the Working Families Party line could defeat the Latina choice of the Democratic Party on November 6th.
Yes the current City Councilman Rev. Ruben Diaz Sr. who stood with Republican candidate for Governor Rob Astorino on East 149th Street, and broke bread not with the winning Republican candidate for President, but one of the also rans is saying that the choice of the Democratic Party can lose in November. Ms. Alexandria Ocasio-Cortez defeated the Queens Democratic County Leader in the 14th Congressional Primary, and said Queens Democratic County Leader had said that he would support Ms. Ocasio-Cortez in November. That is the job of a Democratic county leader, to support the winner of the Democratic Primary, not a candidate running on a non Democratic party line.
So why is the Queens Democratic County Leader running on the Working Families Party line, and why Councilman Rev. Ruben Diaz Sr. do you think that the Queens Democratic County Leader can win on a party line other than the Democratic Party line? Has this soon to be former congressman moved to the Bronx and to your council district? Or are you telling us that the Bronx Democratic County Leader is going to support a candidate running on the Working Families Party line over the candidate of the Democratic Party?
By the way Councilman Rev. Diaz Sr., you spell Ocasio-Cortez with a 'Z' at the end, not an 'S'. That is what you need to know.
After Months of Delaying, Governor Cuomo Finally Agrees to Debate Cynthia Nixon -- His First 1-on-1 Debate in 12 Years
In response to news that Governor Cuomo’s campaign has agreed to participate in a debate hosted by WCBS, Cynthia for New York senior advisor Rebecca Katz has released the following statement agreeing to the debate:
“Nearly 100 days ago, Cynthia Nixon agreed to a debate hosted by WABC. Since then, she has also agreed to a debate hosted by NY1. Governor Cuomo has agreed to neither, and never so much as negotiated with either station.
“Now, we are hearing that Cuomo has agreed to participate in a debate hosted by WCBS, with the format and all of the details negotiated in advance, then presented to our campaign on a take-it-or-leave-it basis.
“The result: a debate at Andrew Cuomo’s chosen location and TV station, in his preferred format, with a favorable audience, and on a date in the last week of August when a minimum of New Yorkers will be watching.
“CBS management has acknowledged that the only way to get Governor Cuomo to show up is by giving him everything he wants. We weren’t even given a seat at the table.
“We understand this isn’t a level playing field. It hasn’t been since the very beginning. Nothing is easy when you’re an outsider, and it's even harder when you’re a woman.
“Cynthia will debate Governor Cuomo backwards and in high heels if she has to.”
State Senator Gustavo Rivera and U.S. Senator Kirsten Gillibrand Celebrate NYCHA Bailey Houses' "Empowering the Community" Day
On Friday August 10, State Senator Gustavo Rivera and U.S. Senator Kirsten Gillibrand joined residents of NYCHA's Bailey Houses at their second annual "Empowering the Community" Family Day celebration.
During their visit, State Senator Gustavo Rivera and U.S. Senator Kirsten Gillibrand were able to partake in the day-long festivity along many residents of Bailey Houses. Further, they shared valuable time with Tiesha Jones, President of the Bailey Houses' Resident Council and the inspiration behind the creation of Dakota's Law, a bill sponsored by Senator Rivera in the New York State Senate that would prevent lead exposure in children across New York.
Senator Gillibrand and Senator Rivera enjoyed the festivities of the event with Bailey Houses residents.