A.G. Underwood Announces Takedown Of Brooklyn-Based Cigarette Trafficking Ring

Multi-Agency Crackdown Leads to 21-Count Indictment Charging 3-Person Cigarette Trafficking Ring with Distributing More than 1.25 Million Untaxed Cigarettes, Evading Nearly $430,000 in Tax Liability

  Attorney General Barbara D. Underwood today announced the indictment and arrest of three individuals for their alleged roles in trafficking significant quantities of untaxed cigarettes from Virginia to Kings County. In a 21-count indictment unsealed today in Kings County Supreme Court, the defendants were charged with various tax- and money laundering-related crimes for their involvement in the cigarette trafficking network. 

“As we allege, the defendants ran a criminal trafficking ring that funneled over 1.25 million untaxed cigarettes into New York – while cheating New Yorkers out of hundreds of thousands of dollars in taxes,” said Attorney General Underwood. “These traffickers are charged with sidestepping the law, which put legitimate, law-abiding businesses at a disadvantage. We’ll continue to work with our partners in law enforcement to hold accountable those who try to game the system and cheat New Yorkers.”

Code-named “Operation Sidestep,” state, federal, and local law enforcement agents concluded a months-long investigation into a network that allegedly evaded New York State and New York City excise and sales taxes by trafficking more than 1,500 cartons of untaxed cigarettes per week from Virginia to be sold in retail shops in Brooklyn. The investigation was led by the New York State Attorney General's Organized Crime Task Force (“OCTF”) in partnership with the Intelligence Bureau of the New York Police Department (“NYPD”) and Homeland Security Investigations (“HSI”). It is alleged that a total of approximately 1,255,000 cigarettes were smuggled into Brooklyn, evading a total of $426,700 in tax liability due to New York State and New York City. 

“Financial fraud victimizes an unknowing and unwilling public for the unabashed gain of a small handful who know full well their gains compromise the widespread safety, security, and economic health of others,” said HSI Baltimore’s Acting Special Agent in Charge Cardell T. Morant. “I thank the dedicated investigators involved and commend the invaluably productive and efficient partnerships in place that assure these charges will be faced and answered for.”  

During the course of the takedown, authorities seized three handguns, one shotgun, three vehicles, and more than $312,000 in cash from the Ramadans’ home in Maryland, as well as more than 341,000 untaxed cigarettes from a storage location in Brooklyn.

The Attorney General's indictment charges the following three defendants with different crimes, including, but not limited to: Criminal Tax Fraud in the Second Degree (a class C felony), Money Laundering in the Second Degree (a Class C felony), and Conspiracy in the Fourth Degree (class E felony), in relation to their involvement in the cigarette trafficking operation:

Basel Ramadan, 47 years old – Ocean City, MD

Samir Ramadan, 45 years old – Ocean City, MD

Fahd Muthana, a/k/a “Ahmed Abdullah,” 39 years old – Brooklyn, NY

Basel Ramadan and Samir Ramadan were arraigned today in Kings County Supreme Court before Judge Danny Chun; bail for Samir Ramadan was set at $2 million cash or $500,000 bond. Fahd Muthana was arraigned on October 11, 2018 in Kings County Supreme Court before Judge Chun. All three defendants’ cases were adjourned to December 19, 2018.

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

The Attorney General thanks the NYPD and Homeland Security Investigations for their partnership.

The NYPD portion of the investigation was led by Detective Christopher McDonnell and Sgt. Robert Olson. The HSI portion was run by Agent Kenneth Oland and Regional Agent in Charge Frank McGarvey.

Comptroller Stringer Demands End to Exclusionary Policy That Denies Transit Access to New York City Straphangers

The Connecticut DOT and Metro-North Service Agreement preserves an antiquated policy, barring city straphangers from accessing same service as their suburban counterparts

  New York City Comptroller Scott Stringer called on the Connecticut State Department of Transportation (CDOT) and the Metro-North to end an agreement that prohibits passengers in the Bronx from boarding certain trains heading into Grand Central Terminal.

For over a century, and under the auspices of various rail companies, trains running on the New Haven line have allowed suburban passengers commuting from Connecticut and Westchester to exit at only a single station in the Bronx (Fordham), while explicitly refusing to board any Bronx commuters for the last leg of the trip into Manhattan. Today’s announcement follows the release of Comptroller Stringer’s proposal to end the MTA’s two-tiered transit system for 1.4 million Bronx, Queens, and Brooklyn residents who are forced to choose between the high costs of commuter rail or longer commutes on the subway and bus.

When New Haven trains stop at the Fordham Road station, Metro-North’s public address system announces that the stop is “discharge only.” This exclusionary practice is historically rooted in a contract between the long-defunct New York-New Haven and New York-Harlem rail companies that dates back to 1848, but has been effectively extended for decades, most recently through the CDOT and Metro-North’s Amended and Restated Service Agreement.

“Metro-North and the Connecticut DOT’s decision to uphold this exclusionary policy of bypassing and neglecting Bronx residents is abhorrent and irresponsible,” said Comptroller Stringer. “While New York City’s transit system is in crisis, the MTA and Connecticut DOT are barring Bronx communities from trains that connect them with their jobs, schools, and loved ones. Your zip code should never determine your quality of life – not in this city or anywhere else in America. If New York wants to lead this nation, we must bring our transit system into the 21st century on every front. End this policy now.”

A report and proposal released by the Comptroller’s office Tuesday detailed a plan that would dramatically expand transit access in 31 neighborhoods in the Bronx, Brooklyn, and Queens with Metro-North or Long Island Rail Road stations. Of these 31 neighborhoods, 13 are located beyond the subway map and are critically in need of improved transit access and mobility. People of color account for 82 percent of the population in these neighborhoods and 41 percent are foreign born. Nearly 60 percent of the renters in these communities are “rent-burdened,” leaving them with little to spare for the steep commuter rail fares.

Circumstances in the Bronx, meanwhile, are particularly dramatic. In the eleven neighborhoods with a Metro-North station, the unemployment rate is 12 percent and 61 percent of residents are rent-burdened — further underscoring the need for more affordable transit and improved job access across the city.

Moving forward, the Comptroller calls on the MTA to charge a flat fare of $2.75 on all transit trips within the city — whether bus, subway, or commuter rail­ — and allow free transfers. He also demands more frequent commuter rail service within the five boroughs, improved bus connections to Metro-North and LIRR stops, and that all commuter rail stations be made ADA accessible.

DE BLASIO ADMINISTRATION ANNOUNCES HEATING IMPROVEMENTS FOR NYCHA RESIDENTS IN ADVANCE OF WINTER

New strategy to reduce outages and restore heat faster by installing new boilers, hiring more heating staff and external contractors, as well as improving resident communication

  The de Blasio Administration announced the result of heating improvements made across NYCHA this summer and fall to prepare for cold weather. In response to last year’s record cold temperatures, NYCHA’s new leadership has developed a comprehensive strategy to reduce outages and restore heating faster this winter. Systemwide, NYCHA residents now have more heating staff, more mobile boilers on hand for emergencies and better handling of their heat complaints. And 87,000 residents at developments that had chronic heating issues last year have received target improvements, ranging from new boilers to new third-party experts that will manage heating plants to reduce outages.

  

“Every NYCHA resident deserves heat in the winter. Our new leadership at NYCHA have delivered major improvements that will reduce outages and get the heat back on faster,” said Mayor Bill de Blasio. “This plan will benefit all 400,000 New Yorkers who call NYCHA home, and is the only the beginning of more improvements to come."

“In preparation for this winter season, we have been fully dedicated to ensuring real improvements to keep residents warmer,” said NYCHA Interim Chair and CEO Stanley Brezenoff. “While there is no magic wand, our operations team, under the leadership of our General Manager Vito Mustaciuolo, is tackling problems we have immediate control over while looking to the future when we can have more reliable heating throughout our portfolio for all New Yorkers who rely on us.”

“After joining NYCHA in the height of the heating problems last winter, I committed from day one to ensure that we were better prepared when this winter season came around,” said NYCHA General Manager Vito Mustaciuolo. “With unprecedented support from Mayor de Blasio, we have achieved operational improvements, streamlined capital timelines and better technology both internally and for resident communication, so when the winter freeze comes, we will be able to respond faster and get boilers up and running quicker.”

Last winter in New York City was one of the coldest on record, bringing NYCHA’s aging infrastructure to a brink. Approximately half of NYCHA developments experienced one or more heat service interruptions lasting longer than 24 hours last heat season. This winter, NYCHA is targeting investments towards the worst performing heating systems. 

The citywide improvements for the 2018-19 heating season include:

• More Heating Staff: NYCHA has added 50 new heating technicians this heating season, and added more contracts with skilled laborers to provided additional expertise if needed. These staffing expansions will improve maintenance and speed response times.
• Better Customer Service: When NYCHA makes heating repairs, it will now robocall all affected residents before closing out work orders. Any resident that has not experienced heat restoration will be able to immediately respond through the call to keep staff on site to address their issue.
• New Mobile Boilers: 5 additional mobile boilers are ready to deploy during emergencies to keep heat running.

The targeted improvements affected 87,000 residents include:

• New Boilers: 12 developments have had boilers replaced since last winter with three more under repair now, improving heating service for 9,100 residents. Six developments, with 7,300 residents, have received dedicated mobile boilers. 
• Outside Experts to Monitor and Manage Boilers: For 41 scattered sites or high-tech heating plants, third-party agencies will provide faster and better fixes, helping 70,000 residents experience better heat this season. Further developments will be transferred to third party managers over the course of the heating season.

• Better Windows: 7,600 senior apartments received new window balances, a key issue in last year’s struggles to keep the cold out. These repaired windows will lock in the heat more securely for NYCHA’s elderly residents.

Below is a list of sites that are receiving targeted improvements:

New Boilers

·         104-14 Tapscott Street

·         Claremont Rehab (Group 2)

·         Claremont Rehab (Group 4)

·         Coney Island I (Site 1B)

·         Coney Island (Sites 4&5)

·         Fort Washington Avenue Rehab

·         Hope Gardens

·         Ingersoll

·         International Tower

·         Lower East Side I

·         Manhattanville Rehab (Group 2)

·         Manhattanville Rehab (Group 3) *

·         Melrose*

·         Ocean Hill-Brownsville

·         Rehab Program (Wise Rehab)

·         Robinson *

·         Rutland Towers*

·         Sutter Avenue-Union Street

·         Taft*

·         Washington Heights Rehab

·         Wyckoff Gardens*

Note: The locations with an asterisk are receiving a mobile boiler.

Third Party Management

·         303 Vernon Avenue

·         Albany

·         Albany II

·         Astoria

·         Beach 41ST Street

·         Brownsville

·         Conlon Lihfe Towers

·         Cooper Park

·         Corsi Houses

·         East River

·         Elliot

·         Fiorentino Plaza

·         Glenmore Plaza

·         Highbridge Gardens

·         Howard

·         Hughes Apartments

·         International Tower

·         Jefferson

·         Kingsborough

·         Kingsborough Extension

·         Lexington

·         Long Island Baptist Houses

·         Low Houses

·         Pink

·         Queensbridge North

·         Queensbridge South

·         Rangel

·         Roosevelt I

·         Roosevelt II

·         Shelton House

·         Sumner

·         Tilden

·         Unity Plaza (Sites 17,24,25A)

·         Unity Plaza (SITES 4-27)

·         Van Dyke I

·         Van Dyke II

·         Vandalia Avenue

·         Wagner

·         Washington

·         Williamsburg

·         Woodson

Better Windows

·         Armstrong I

·         Baruch Houses Addition

·         Betances I

·         Bethune Gardens

·         Borinquen Plaza I

·         Boston Road Plaza

·         Bronx River Addition

·         Brown

·         Cassidy-Lafayette

·         Chelsea Addition

·         Claremont Parkway- Franklin Avenue

·         College Avenue – East 165^th Street

·         Conlon Lihfe Towers

·         Corsi Houses

·         Davidson

·         East 152^nd Street- Courtlandt Avenue

·         Fort Washington Avenue Rehab

·         Garvey (Group A)

·         Glebe Avenue- Westchester Avenue

·         Haber

·         Harborview Terrace

·         Hope Gardens

·         International Tower

·         Kingsborough Extension

·         La Guardia Addition

·         Leavitt Street- 34^th Avenue

·         Lower East Side I

·         Marshall Plaza

·         Meltzer Tower

·         Middletown Plaza

·         Mitchel

·         Morris Park Senior Citizens Home

·         Morrisania Air Rights

·         Palmetto Gardens

·         Public School 139 (Conversion)

·         Randall Avenue-Balcom Avenue

·         Rehab Program (College Point)

·         Reid Apartments

·         Robbins Plaza

·         Roosevelt I

·         Shelton House

·         Stuyvesant Gardens II

·         Surfside Gardens

·         Twin Parks East (Site 9)

·         Union Avenue – East 163^rd Street

·         Upaca (Site 5)

·         Upaca (Site 6)

·         Van Dyke II

·         Vandalia Avenue

·         West Brighton II

·         West Tremont Avenue – Sedgewick Avenue

·         White

·         Woodson

The de Blasio Administration has made an unprecedented commitment to preserve and strengthen public housing. This investment is part of the Administration’s total commitment to $2.1 billion to support NYCHA’s capital infrastructure from Fiscal Year 2014 to Fiscal Year 2027 and $1.6 billion to support NYCHA’s operations from Fiscal Year 2014 to Fiscal Year 2022. This investment includes $1.3 billion to fix over 900 roofs, over $500 million to repair deteriorating exterior brickwork at nearly 400 buildings, and $140 million to improve security at 15 NYCHA developments.

The City waived NYCHA’s annual PILOT and NYPD payments to the City, relieving NYCHA of nearly $100 million in operating expenses a year. In January 2018, the Mayor announced $13 million to improve NYCHA’s response to heating emergencies this winter, followed by an additional $200 million for long-term heating improvements at 20 NYCHA developments.