Thursday, November 8, 2018

Two Men Sentenced In Manhattan Federal Court For Defrauding Investors Of Over $7 Million In Fuel Cell Company Investor Fraud Scheme


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that GEORGE DOUMANIS and EMANUEL PANTELAKIS were sentenced in Manhattan federal court to 53 months and one year and one day in prison, respectively, for defrauding investors in Terminus Energy, Inc., a publicly traded penny stock, of over $7 million.  DOUMANIS and PANTELAKIS each pled guilty on December 1, 2017, to one count of conspiracy to commit securities fraud before U.S. District Judge Andrew L. Carter Jr., who also imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “George Doumanis and Emanuel Pantelakis lured investors for a supposed fuel cell technology they knew was a fiction.  They duped victims into investing over $7 million with misleading documents, and they used more than $1 million of that to pay their own personal expenses.  Today they learned the true price of that kind of criminal deceitfulness.”
According to the allegations contained in the Indictment filed against DOUMANIS, PANTELAKIS, and their co-conspirator, and statements made in related court filings and proceedings:
From at least February 2008 until at least 2014, DOUMANIS and PANTELAKIS, along with their co-conspirator Danny Pratte, who previously pled guilty, engaged in a scheme to defraud investors in the publicly traded company Terminus Energy, Inc. (“Terminus”), by inducing victims to invest in Terminus stock through material misrepresentations and omissions and by misappropriating investor funds for their own purposes.
Terminus was purportedly producing and marketing a commercially viable solid oxide “fuel cell” as an alternative energy source.  DOUMANIS and PANTELAKIS sold shares of Terminus to investors through private offerings.  In connection with such sales, DOUMANIS and PANTELAKIS provided investors with private placement memorandums (“PPMs”) that contained materially false and misleading statements.  For example, the PPMs falsely stated that (i) Terminus had completed its goal of developing a working fuel cell in mid-2008; (ii) Terminus would use specified investor funds to make payment on third-party development contracts designed to manufacture a working fuel cell; and (iii) Terminus would pay no more than 10 percent in sales commissions.  In truth, and as DOUMANIS and PANTELAKIS well knew, (i) there was no working fuel cell; (ii) the third-party contracts had been cancelled after Terminus failed to make payment to the third parties; and (iii) unregistered salespeople were receiving commissions far in excess of 10 percent.  The PPMs also failed to accurately disclose the involvement of either DOUMANIS, who was barred from involvement in penny stocks as a result of a 2003 conviction for conspiracy to commit securities fraud, wire fraud, and mail fraud, or PANTELAKIS, who had been permanently barred by the Financial Industry Regulatory Authority (“FINRA”) following allegations that he had made fraudulent misrepresentations to customers in connection with the sale of securities.  DOUMANIS and PANTELAKIS also caused similar misrepresentations to be made in business plans, executive summaries, and presentations shared with potential investors, as well as in publicly available press releases.  Through these false and misleading statements, DOUMANIS and PANTELAKIS fraudulently induced investors to purchase over $7 million of Terminus stock.
Rather than use the investor money as promised, DOUMANIS and PANTELAKIS misappropriated the funds for their own use and for use by co-conspirators.  DOUMANIS personally received at least $573,201 and PANTELAKIS personally received at least $428,997.  In addition, the unregistered salespeople collectively received undisclosed commissions of more than $1.5 million.
In addition to their prison terms, DOUMANIS, 60, of Rocky Point, New York, and PANTELAKIS, 43, of Queens, New York, were sentenced to three years of supervised release, forfeiture money judgments in the amount of $573,201 and $428,997, respectively, and restitution in an amount to be determined by the Court at a later date.
Danny Pratte pled guilty to one count of conspiracy to commit securities fraud and was sentenced by Judge Carter on October 19, 2018.
Mr. Berman praised the work of the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission.

JOB FAIR NOV 14th AT STEVENSON HIGH SCHOOL


GET READY FOR NEXT WEEK'S JOB FAIR
After our highly successful job fair last month, we're gearing up to make sure this one is just as, or more successful.
And don't forget, many of these employers also offer part-time work.
So update your resumes, bring a bunch of copies and hope to see you there!


Bronx Chamber of Commerce 2019 Bronx Business Directory & Resource Guide


Bronx Chamber of Commerce
2019 Bronx Business Directory & Resource Guide
Don't Be Left Out!
Events, Communications & Grants Director 
"The Network for Business Success"
Bronx Chamber of Commerce 1200 Waters Place, Suite 106
Bronx, NY 10461 718-828-3900.

REPRESENTATIVE ADRIANO ESPAILLAT SUPPORTS NANCY PELOSI AS SPEAKER OF THE HOUSE


  Representative Adriano Espaillat (NY-13) released the following statement in support of Nancy Pelosi to become Speaker of the House during the 116th Congress.

“I am proud to lend my support to Nancy Pelosi to become Speaker of the House during the 116th Congress, said Rep. Adriano Espaillat. “She has more than proven her tenacity and ability to lead the Democratic Caucus to victories on the issues that matter the most to our communities, America’s working families, and the future of our nation.  I am proud to continue to lend my support as I have long stood with Nancy and the leadership she continues to bring to the U.S. House of Representatives.” 

Wave Hill events November 22-29


Thu, November 22

Closed to the public.

Fri, November 23

Black Friday Meditation

Avoid “Black Friday” busyness! Join us for a community meditation focused on gratitude and clearing your mind of holiday clutter. Get inspired by the outdoors and the peace and tranquility that nature evokes, and learn how to work loving kindness into each day. Led by Neem Dewji of Yoga for Bliss. Please bring a meditation cushion and be on time; latecomers will not be admitted. Free with admission to the grounds.

WAVE HILL HOUSE, 11AM–NOON

Sat, November 24

Family Art Project: Natural Weavings for Harvest Time

Gather fall leaves, cones, pods and seed heads. Weave them together with other materials from the gardens and meadows to create a decorative wall hanging celebrating the bounty and beauty of the season. Free, and admission to the grounds is free until noon.

WAVE HILL HOUSE, 10AM‒1PM

Sat, November 24

Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Sat, November 24

Gallery Tour

Meet the artists and curators of our fall exhibitions. In a new collaboration, Wave Hill is partnering with the American Society of Botanical Artists (ASBA) to produce and host ASBA’s 21st Annual International. ASBA’s mission is to provide a thriving, interactive community dedicated to perpetuating the tradition and contemporary practice of botanical art. This juried exhibition consists of two-dimensional original botanical art, including some specimens found at Wave Hill. In the Sunroom Project Space, Keren Anavy, creating a conservatory from man-made materials, responds to Wave Hill’s late-fall landscape. Suspended from the ceiling, abstract paintings on translucent Mylar dip into shallow pools of ink and correspond to the changing colors of Wave Hill’s seasonal plants. Anavy is also collaborating with Valerie Green/Dance Entropy on Utopia, a dance performance, which will be presented in the gallery. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Sun, November 25

Family Art Project: Natural Weavings for Harvest Time

Gather fall leaves, cones, pods and seed heads. Weave them together with other materials from the gardens and meadows to create a decorative wall hanging celebrating the bounty and beauty of the season. Free with admission to the grounds.

WAVE HILL HOUSE, 10AM‒1PM

Sun, November 25

Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

Mon, November 26

Closed to the public.

Tue, November 27

Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Tue, November 27

Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. In a new collaboration, Wave Hill is partnering with the American Society of Botanical Artists (ASBA) to produce and host ASBA’s 21st Annual International. ASBA’s mission is to provide a thriving, interactive community dedicated to perpetuating the tradition and contemporary practice of botanical art. This juried exhibition consists of two-dimensional original botanical art, including some specimens found at Wave Hill. In the Sunroom Project Space, Keren Anavy, creating a conservatory from man-made materials, responds to Wave Hill’s late-fall landscape. Suspended from the ceiling, abstract paintings on translucent Mylar dip into shallow pools of ink and correspond to the changing colors of Wave Hill’s seasonal plants. Anavy is also collaborating with Valerie Green/Dance Entropy on Utopia, a dance performance, which will be presented in the gallery. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Thu, November 29

Members Night 2018

Mark your calendars for Wave Hill’s biggest shopping night of the year! Join us for this exclusive, Members-only event and experience the breathtaking beauty of Wave Hill on an early winter night. Shop for boutique merchandise in The Shop, and find the perfect gift for that special someone—and everyone!—on your list. Iconic Armor Hall will be transformed into a seasonal market with local artisans on hand to share unique and specialty goods and gourmet offers. Dine in The CafĂ©, and complete the experience with live music in the warmth of Wave Hill House. This event is not to be missed!

PERKINS VISITOR CENTER, WAVE HILL HOUSE, 5:30–9PM


A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–4:30PM,  November 1–March 14. Closes 5:30PM, starting March 15.

ADMISSION – $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES – Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm
  
DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

A DOZEN CITY & STATE ELECTED OFFICIALS ANNOUNCE THEIR ENDORSEMENT OF JUMAANE WILLIAMS FOR NYC PUBLIC ADVOCATE


  New York City Council Member Jumaane Williams (D-Brooklyn) today announced that his campaign to become the city's next Public Advocate has received endorsements from a dozen local Council Members, Assembly Members and State Senators. The announcement comes after the current Public Advocate, Letitia James, won her election on Tuesday to become New York State's Attorney General-elect.

"We witnessed history this week with the election of our state's first black woman Attorney General, and I am honored to be endorsed as her successor by so many of my colleagues in government," said Jumaane. "Since announcing my intention to run for Public Advocate several weeks ago, I've had many conversations with activists, elected officials, community leaders and organizations, and have received an incredible outpour of support. As we continue to build out our campaign's infrastructure and gear up for a special election, I look forward to meeting with New Yorkers throughout the five boroughs to share my vision of becoming a Public Advocate for the people."

The elected officials who today announced their endorsements of Williams' campaign include:

NEW YORK STATE SENATE

State Senator Kevin Parker (D-Brooklyn) said, "Jumaane has been a fearless leader in government who has worked tirelessly on behalf of the people of New York. I've seen that first hand, working beside him to take on many issues within our shared community, like fighting for affordable housing, better schools and safer streets. I'm excited by the prospect of working with him as our city's next Public Advocate."

State Senator James Sanders Jr. (D-Queens) said, "New Yorkers need a Public Advocate who will fight for more affordable housing, safer streets, improved public safety and better schools. I've served with Jumaane in the Council and have seen him tackle these hard issues head on. His background has well positioned him to be an extremely effective Public Advocate, so I am proud to support him in this race." 

NEW YORK STATE ASSEMBLY

Assembly Member Rodneyse Bichotte (D-Brooklyn) said, "Jumaane has proven to be a bold and progressive leader who fights for justice, inclusion, equity and more for the people of Brooklyn and beyond. It has been a privilege to work with him to advance a truly progressive agenda in the city and state, and I am proud to endorse him as our next Public Advocate-- the People's Advocate."

Assembly Member Walter Mosley (D-Brooklyn) said, "New York City needs a Public Advocate who will stand up for all of us, that's why I'm supporting my friend and colleague, Jumaane Williams. Jumaane has been a fierce activist for tenants and has been on the front lines pf criminal justice reform. He's never wavered from a fight, no matter how big. Over the years, I have worked hand in hand with Jumaane on issues affecting residents in Brooklyn, and I know that he is the right person to continue this work as our city's next Public Advocate."

Assembly Member Diana Richardson (D-Brooklyn) said, "Jumaane Williams has a proven track record that speaks for itself. He has made a substantial impact on our city by lifting the voices of unheard New Yorkers and advancing reforms that bring transformational change to Brooklynites and New Yorkers throughout the five boroughs. He is the activist elected official we need as New York's next Public Advocate, and I am proud to endorse his grassroots campaign."

Assembly Member Helene Weinstein (D-Brooklyn) said, "Our city's government requires a strong and vocal Public Advocate, and Jumaane has proven his ability to be both. He is an effective legislator and uses his role as an activist to raise the voices of underserved communities. I have worked closely with him and seen him demonstrate a concern and improve the quality of life for constituents throughout our overlapping districts. He is the Public Advocate we need"

Assembly Member Jamie Williams (D-Brooklyn) said, "Jumaane is one of a kind. I admire his dedication to his constituency and the democratic ideals of which our country is founded on. I know that Jumaane is always on the front lines advocating and crusading for those who can't; even while his safety may be in jeopardy. Jumaane is the person who will be there fighting the good fight for the ideals that are fair and just; making sure that the citizens of New York City are not being taken advantage of. If there is one person who embodies the ideals of the quintessential Public Advocate that is and will always be Jumaane Williams. The success he brought to the 45th Council District as a distinguished member of the City Council will only help further his successes as the Public Advocate. I can think of no one better and nor would I want to have anyone else there to insure the protection of New York City as the Public Advocate." 

Assembly Member-elect Mathylde Frontus (D-Brooklyn) said, "Jumaane is an activist elected official who has worked relentlessly to advocate for the people of this city. His bold leadership is exactly what we need as our city's next Public Advocate, and I'm excited to endorse his grassroots campaign."

NEW YORK CITY COUNCIL

New York City Council Majority Leader Laurie A. Cumbo (D-Brooklyn) said,"For over a decade, Jumaane has been a tremendous advocate for working families and communities in Brooklyn and across all five boroughs of New York City. He has been a passionate and effective leader fighting for criminal justice reform, affordable housing, and better wages to build safer and stronger communities. He's a true partner and activist elected official in our communities and he's the candidate New Yorkers should elect as our city's next Public Advocate."

New York City Council Member Ben Kallos (D-Manhattan) said, "Advocates make the best elected officials because you know what they believed in then and what they will fight for now. I can't imagine a better Public Advocate than Jumaane Williams who has been fighting for tenants and marginalized communities for his entire life."

New York City Council Member I. Daneek Miller (D-Queens) said, "Jumaane Williams has cemented his status as a champion of the people by virtue of his advocacy and many legislative accomplishments over his nine years at the City Council. I proudly support his candidacy, and look forward to working with him on behalf of our City's working families and communities of color."

New York City Council Member Antonio Reynoso (D-Brooklyn) said, "Jumaane has long been an passionate advocate for the people of New York City, in his activism and in the Council. He is a tireless collaborator who uses every tool he has to take on issues, and brings everyone to the table to help develop solutions that work for all. I know that this is the kind of passionate spirit and expertise that he'll bring to as our next Public Advocate."

NYCHA Town Hall Hosted by Lisa Evers - Tonight


Thursday, November 8 at 6:30 pm (doors open at 5:30 pm), Lisa Evers of HOT97/Fox 5 is hosting a Street Soldiers Town  Hall Event: “NYCHA State of Emergency: What’s Changed?” at BronxWorks Pyramid Community Center.

Wednesday, November 7, 2018

Manhattan U.S. Attorney Announces Conviction Of Radio Talk Show Host Craig Carton For Securities And Wire Fraud


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the conviction of CRAIG CARTON for securities fraud, wire fraud, and conspiracy to commit those offenses.  CARTON’s co-defendant, Michael Wright, pled guilty before U.S. Magistrate Judge Stewart D. Aaron in September 2018 for his participation in the scheme.  CARTON is scheduled to be sentenced on February 27, 2018, at 4 p.m. by Chief U.S. District Judge Colleen McMahon, who presided over the one-week trial.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Radio personality Craig Carton solicited investments for his ticket buying scheme by touting his show business contacts and ability to buy blocks of tickets to live events such as Metallica, Barbra Streisand, and others, and sell them for a profit on the secondary ticket market. As a unanimous Manhattan jury has found, Carton was all talk.  Carton fabricated contracts for blocks of tickets and spent the almost $7 million he collected from investors on gambling and personal expenses.  We commend the jury for seeing through Carton’s blatant lies, and holding him responsible for his Ponzi-like scheme. Today’s verdict is a win for investors; lying to them is a federal crime.”
As set forth in the Complaint, Indictment, and the evidence presented at trial:
CARTON and another individual (“CC-1”) worked together to induce investors to provide them with millions of dollars, based on representations that the investor funds would be used to purchase blocks of tickets to concerts, which would then be re-sold on the secondary market.  CARTON and CC-1 purportedly had access to those blocks of tickets based on agreements that CC-1 had with a company that promotes live music and entertainment events (the “Concert Promotion Company”) and that CARTON had with a company that operates two arenas in the New York metropolitan area (the “Sports and Entertainment Company”).  In fact, neither the Concert Promotion Company nor the Sports and Entertainment Company had any such agreement with CARTON, Wright, CC-1, or any entity associated with them.  After receiving the investor funds, CARTON, Wright, and CC-1 misappropriated those funds, using them to, among other things, pay personal debts and repay prior investors as part of a Ponzi-like scheme.   
In the fall of 2016, CARTON, Wright, and CC-1 exchanged emails and text messages regarding their existing debts.  On September 5, 2016, for example, Wright emailed CARTON and CC-1, “for the sake of our conversation tomorrow,” and outlined “the debt past due and due next week.”  Wright listed several apparent creditors, to whom he, CC-1, and/or CARTON were personally indebted for over a million dollars.  Wright listed eight possible options for repaying the debt, including “Run to Costa Rica, change name, and start life all over again – may not be an option.”  CARTON responded to Wright and CC-1, stating “don’t forget I have $1m coming tomorrow from ticket investor[.]  will need to be discussed how to handle.”  On September 7, 2016, CARTON emailed Wright and CC-1, referenced a potential investor (“Investor-1”) in an upcoming holiday concert tour, and suggested “borrow[ing] against projected profits” on that investment. 
Later in the fall of 2016, CARTON began negotiating with a hedge fund (the “Hedge Fund”) regarding a transaction in which the Hedge Fund would extend CARTON capital to finance CARTON’s purchase of event tickets, which CARTON would then re-sell at a profit.  In early December 2016, CC-1 texted CARTON and Wright and discussed using the Hedge Fund’s capital “to repay debts,” and not for the purchase of tickets. 
The next day, December 7, 2016, CARTON emailed the Hedge Fund five agreements between (i) CC-1 and a company controlled by CC-1 (the “CC-1 Entity”) and (ii) the Concert Promotion Company.  In each of the purported agreements, the Concert Promotion Company agreed to sell the CC-1 Entity up $10 million worth of tickets to different concert tours.  However, as alleged, these agreements were fraudulent and had not, in fact, been entered into by the Concert Promotion Company.
The following day, the Hedge Fund and CARTON executed the revolving loan agreement (the “Revolving Loan Agreement”), under which the Hedge Fund agreed to provide CARTON with up to $10 million, for the purpose of funding investments in the purchase of tickets for events.  The Revolving Loan Agreement provided, in sum and substance, that the proceeds of the loan would be used only to purchase tickets pursuant to agreements for the acquisition of tickets, including the agreements with the Concert Promotion Company and for limited business expenses.  The Hedge Fund would receive a share of the profits from the resale of the tickets.
The Hedge Fund then sent $700,000 to the CC-1 Entity to finance the purchase of tickets pursuant to the agreements between the CC-1 Entity and the Concert Promotion Company.  CC-1, however, then sent this money to a bank account controlled by Wright, who then, on December 12, sent $200,000 to CARTON’s personal bank account (the “CARTON Bank Account”), which CARTON then wired to a casino.  Also on December 12, Wright sent another $500,000 to an individual who had previously lent CARTON $500,000, which was due to be repaid that day.
Later in December 2016, the Hedge Fund sent an additional $1.9 million to the CC-1 Entity, to finance the purchase of tickets pursuant to agreements between the CC-1 Entity and the Concert Promotion Company.  Once again, the Concert Promotion Company had not entered into any such agreements.  CC-1, Wright, and CARTON engaged in text messages regarding the disposition of these funds.  Some of the money was used by CC-1 to repay two individuals who had previously invested with CC-1 in a related scheme involving the purported investment in the resale of tickets, and by CARTON to pay casinos and to pay Investor-1 a purported return on an earlier investment in a ticket-related venture.
CARTON also induced the Hedge Fund to wire $2 million to the Sports and Entertainment Company, based purportedly on an agreement he had with the Sports and Entertainment Company (the “Sports and Entertainment Company Agreement”).  The Sports and Entertainment Company Agreement purportedly gave an entity controlled by CARTON (the “CARTON Entity”) the right to purchase $2 million of tickets to concerts at one of the venues operated by the Sports and Entertainment Company.  CARTON, among other things, sent the Hedge Fund a copy of the Sports and Entertainment Company Agreement that purportedly had been signed by the chief executive officer of the Sports and Entertainment Company.  However, this agreement was fraudulent and had never been entered into by the Sports and Entertainment Company or signed by the chief executive officer. 
On December 20, 2016, when the Hedge Fund wired the $2 million to the Sports and Entertainment Company, CARTON contacted the Sports and Entertainment Company and told them, in sum and substance, that the wire had been sent in error and should be sent to the bank account for an entity operated by CARTON and Wright, for which Wright is the signatory.  After the money was rewired to that account, Wright wired $966,000 to Wright’s personal bank account and $700,000 to the CARTON Bank Account.  CARTON then wired approximately $188,000 from the CARTON Bank Account, including at least $133,000 in wires to several casinos.
CARTON, 49, of New York, New York, was convicted of one count of conspiracy to commit securities fraud and wire fraud, one count of wire fraud, and one count of securities fraud.  The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.  The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense.  The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and thanked the Boston Regional Office of the U.S. Securities and Exchange Commission, which has filed civil charges against CARTON and CC-1 in a separate action.