Owner Of New York Investment Fund Pleads Guilty To Committing $22 Million Scheme To Defraud Investors

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BRENT BORLAND, the owner and principal of a New York-based investment fund known as Belize Infrastructure Fund I LLC (“Belize Fund”), pled guilty to perpetrating a $22 million investment fraud scheme against dozens of Belize Fund investors.   BORLAND pled guilty today before U.S. District Judge Katherine Polk Failla to conspiring to commit, and the commission of, securities fraud and wire fraud. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Brent Borland solicited funds from investors for a project to build a new airport in Belize.  In doing so, Borland promised a high rate of return and assured investors that their funds were secured by real property.  Not only was he not truthful about the collateral for their investments, Borland used a substantial portion of investors’ funds to support his own lavish lifestyle.  Today, Brent Borland admitted to investor fraud to the tune of $22 million, and faces substantial time in federal prison.”

According to the Complaint and Indictment:

From 2014 through March 2018, BORLAND and others solicited and received approximately $21.9 million through Belize Fund from approximately 40 investors based upon representations that BORLAND would use the investors’ money to construct an airport in Belize.  BORLAND promised investors high rates of return on their investments, which he represented were temporary “bridge financing.”  BORLAND also represented to investors that their investments would be fully secured by real property in Belize that was unencumbered by any liens or obligations.

In fact, however, BORLAND misappropriated millions of dollars of investors’ funds and used those funds for his own personal benefit.  BORLAND diverted at least approximately 30 percent of the approximately $21.9 million invested by victims to himself to pay for a variety of personal expenses, including his mortgage payments, credit card bills, luxury automobiles, a beach club membership, and private school tuition for his children.  In contrast to BORLAND’s representations that investors would receive high rates of return within a specified time frame, all known investors in the scheme lost money.  And while BORLAND represented that the investments would be secured by real property, the property purportedly serving as collateral was improperly pledged to multiple investors and, in some cases, did not even exist. 

BORLAND, 48, pled guilty to one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum potential sentence of five years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison.  The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.  BORLAND is scheduled to be sentenced before Judge Failla on June 21, 2019.

Mr. Berman praised the investigative work of the U.S. Postal Inspection Service and thanked the Securities and Exchange Commission. 

If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900.  For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.

Attorney General James Announces Guilty Pleas Of Construction Contractors For Failing To Pay Workers On Public Work Projects

Vickram and Gayatri Mangru, Owners Of Vick Construction and AVM Construction Corp., Pleaded Guilty to Failure To Pay Prevailing Wages On Construction Work at Several New York City Public Schools 

  Attorney General Letitia James announced the guilty pleas of Vickram Mangru, his wife Gayatri Mangru, and AVM Construction Corp., of Valley Stream, NY, for failing to pay proper prevailing wages to workers and falsifying business records related to a publicly-funded New York City construction project. The defendants were charged with failing to pay three workers their required prevailing and overtime wages, as well as supplemental benefits from December 2012 through February 2015. The defendants unlawfully falsified payroll records to conceal their crimes, and thereby stole more than $280,000 from three workers. In October 2017, a Bronx County Grand Jury returned an indictment charging the defendants with two counts of Failure to Pay Prevailing Wages and Benefits and two counts of Falsifying Business Records in the First Degree.   

“Intentionally underpaying workers is both highly illegal and immoral,” said Attorney General Letitia James. “Not only did the defendants take advantage of innocent workers trying to earn a living, they also took advantage of New York City by falsifying records to the Department of Education. This office will never hesitate to investigate any employer who tries to cheat our workers or our government.” 

Defendants Vickram Mangru and AVM Construction Corp. both pleaded guilty in Bronx County Supreme Court before the Honorable Barry E. Warhit, to felony Failure to Pay Prevailing Wages and Benefits counts under the indictment. Defendant Gayatri Mangru pleaded guilty to one count of misdemeanor Failure to Pay Prevailing Wages and Benefits in the indictment for her involvement in the crimes. As a condition of their pleas, the Defendants will pay restitution to the three workers in the amount of $80,000 before their sentencing. Defendant Vickram Mangru will be sentenced to 30 days of incarceration and will subsequently serve three years probation; Defendants AVM Construction Corp. and Gayatri Mangru will be sentenced to conditional discharges and additional fines. A judgment order of restitution will be entered for the remaining amount owed.   

In addition, all defendants will be barred from bidding on or being awarded any public works contract in the State of New York for a period of five (5) years.   

“An honest days work deserves an honest days pay and when employers cheat workers from the wages they rightfully earned, regardless of their status,  it’s labor abuse at its worst,” said New York City Comptroller Scott Stringer. “Despite being debarred, this unscrupulous contractor attempted to use his wife’s name to open a company and take advantage of immigrant workers by withholding their prevailing wages yet again — now he is facing the consequences of his actions. I would like to thank the Attorney General for working side by side with my office to prosecute this contractor and bring justice to the workers who are owed their fair share.” 

Between December 22, 2012 and April 12, 2014, Vickram Mangru—as owner of Vick Construction—failed to pay several of his employees’ proper prevailing wages for construction and repair work on several public schools in the Bronx. State law requires that on certain construction projects designated as “public works,” workers must be paid a pre-determined industry minimum wage per hour, plus a benefit rate, collectively known as a “prevailing wage rate.” Instead of paying this prevailing wage rate, the investigation revealed that Vickram Mangru allegedly paid his workers between $120 and $160/day for 40-50 hours worked per week – an amount far less than what his employees were owed under the prevailing wage rate. To cover up the crime, Vickram Mangru falsified Certified Payroll Records and Reports submitted to the New York City Department of Education by claiming that he did pay workers the proper prevailing wage rate. The New York City Comptroller’s Office previously barred the defendant, Vickram Mangru, from obtaining contracts for public works projects in New York City after he was found to be in violation of labor laws. The Comptroller’s Office referred the case to the Attorney General’s Office after Mangru created a new company in an attempt to continue operating in New York City, but was allegedly still committing labor violations.  

The Attorney General thanks the New York City Comptroller’s Office, The Attorney General also thanks the New York City Department of Education Division of School Facilities.   

News From Councilman Mark Gjonaj

2019 Holiday Alternate Side Parking Suspension Calendar

NYC has released the 2019 Holiday Alternate Side Parking Suspension Calendar. The City also suspends alternate side rules due to weather and emergencies. If you have any questions, please call 311.

Nos Quedamos' PHOENIX - February 2019

2019 has taken off like a Phoenix! And we're not just saying that because it's the name of our newsletter, as well as the back story of our community, but because we're so pumped about all the great things that are lining up as a result of the work we put in during 2018. This edition is intended as a brief overview to our community, its stakeholders, and partners. Here are a few projects, events, and initiatives we're excited about (there is also some history within): MELROSE BROADBAND INITIATIVE This past year, Nos Quedamos, in partnership with Neture, was awarded two Downtown Revitalization Initiative (DRI) grants as part of Governor Andrew M. Cuomo's 'Bronx Civic Center' initiative, a $10 million state investment to revitalize portions of the South Bronx. One grant is for a broadband demonstration project that will provide free, although limited, internet access for the residents of El Jardín. The second DRI project anticipates working with three regional community gardens to install a set of photo-voltaic panels to provide each garden with power for lighting, utility needs, and Wi Fi access. These two projects represent Nos Quedamos' ongoing expansion of its community grounded mission. We will keep the community and our partners informed and engaged as we move forward. Read project summaries.

YOLANDA GARCIA MEMORIAL PARK (PENDING)

The modern history of Melrose Commons is one of tenacity and steadfast determination over adversity, and no other person's contributions have had more of an impact in the region than Nos Quedamos' founder, Yolanda García (1961-2005), including spearheading the legendary Melrose Urban Renewal Plan that helped transformed Melrose into a livable and sustainable community.  Now 25-years later, the NYC Department of Parks (Bronx) is finalizing its capital construction of Melrose Commons Park on the site that García always envisioned as a central public green hub in the heart of Melrose (see inset). In honor of her examples as a roll model and selfless advocate of the South Bronx, we are working to have the park (projected to be completed by September 2019) re-dedicated as the 'Yolanda García Memorial Park.'

Unsurprisingly, support for the renaming has been unanimously positive. But we want this to be a community-led victory and are asking for Letters of Support (LOS) from the extended Bronx community as a tribute to García's organizing legacy. Join us in putting an exclamation (!) on her life's work. Send your LOS to Edwin Pagán at epagan@nosquedamos.org

 

Read the impactful support letter from BBP Rubén Díaz Jr. (as an inspiring reference)

WE ARE MELROSE STREET FESTIVAL (SAVE THE DATE)

Nos Quedamos is busy working on the 3rd annual WE ARE MELROSE Street Festival that celebrates the vast diversity and broad cultures that makes up the community. Our 2019 celebration will take place on Saturday, July 20, 2019 from 12-6PM (rain date: Sunday, July 21, 2019). Please add the date to your calendars and let's make it a day of sharing and mutual community building, including cultural programming, environmental and health demonstrations, and child appropriate game-play and other family-friendly activities. For sponsorship opportunities contact at Ana Melendez.

Keep an eye out as we reveal this year's event theme and key-art on April 22, 2019 (Earth Day). Stay tuned. ;)

MELROSE COMMONS PARK DEVELOPMENT INPUT

Nos Quedamos and Asociasión Huerto Y Cultura (Harvest & Culture Association) will be hosting the NYC Parks Department (Bronx) for a community input session on the future of the pending Melrose Commons Park on Wednesday, February 20, 2019 from 6:30-7:30pm. This is an important phase in the park's development and your chance to inform the process at its earliest stage. Bring your vision.
Download the flier here.

COMMUNITY SOUP KITCHEN & COAT DISTRIBUTION DAY

The Bronx County Chapter of the National Latino Peace Officers Association (NLPAO) and 40th Precinct Community Council will be hosting a Soup Kitchen and Distribution day on February 23, 2017 from 11am-3pm at the Church of St. Anselm and St. Roch, located at 685 Tinton Avenue, Bronx. Among the items being provided to the extended community are canned foods, blankets, and coats (for people and pets!). Download the flier.

We Stay / Nos Quedamos

754 Melrose Avenue 

Bronx, NY 10451

The Bronx Democratic Party - Annual Winter Reception

Please Join The Bronx Democratic Party and Chairman Marcos A. Crespo for our annual Winter Reception on Thursday, February 28th from 6 PM - 9 PM.

Bronx Borough President Ruben Diaz Jr. - Dominican Heritage Month Celebration 2019

Bronx Borough President Ruben Diaz Jr. Invites you to celebrate Dominican Heritage Month Beverly Hills Manor 1700 Jerome Avenue The Bronx Thursday, February 28, 2019 6:00 P.M. Come out and enjoy the evening with live music, food and refreshments. Doors to open at 5:30 PM  For more information or to confirm your attendance call 718-590-3989 or email smalave@bronxbp.nyc.gov

Bronxnet Public Advocate Debate

  Of the seventeen candidates running in the special election for NYC Public Advocate only ten came to Lehman College Friday night, for a televised debate on Bronxnet Television. They were Assemblyman Ron Kim, Journalist Nomiki Konst, Councilman Ydanis Rodriguez, Assemblyman Michael Blake, Attorney Jared Rich, Councilman Rafael Espinal, Activist Benjamin Yee, Attorney Dawn Smalls, Activist Anthony Herbert, and Activist David Eisenbach.

  Missing from this debate were seven other candidates Councilman Jumaane Williams, former City Council Speaker Melissa Mark-Viverito, Councilman Eric Ulrich, Assemblyman Daniel O'Donnell, Attorney Manny Alicandro, Teacher Helal Sheikh, and Assemblywoman Latrice Walker who has ended her campaign, but remains on the ballot. 

 The debate started off going off topic on the questions, and even at points became a shouting match as candidates tried to show each other up. That resulted in responses and counter responses with other candidates speaking out, resulting in host Gary Axelbank having to regain control of the debate at times.   

 Key questions included Councilman Ruben Diaz Sr.'s support of candidate Ydanis Rodriguez, which when questioned he said that the For Hire Committee Diaz Sr. had chaired did good work for the taxi industry which is in trouble now. Other candidates chastised Councilman Diaz Sr. going as far as saying he should resign. Assemblyman Michael Blake was asked about the one thousand dollar contribution he gave to Councilman Diaz's campaign. Blake replied that he asked for the money to be returned when the LBGT community asked him to, but he was called out for that by others. 

 The topic of rezoning came up as in the Bronx part of the Jerome Avenue area is being rezoned. Assemblyman Blake said that rezoning results in gentrification. This led to candidate Konst going after Councilman Espinal for the rezoning going on in his district. Espinal replied that it is easy for someone who has not stepped foot in my district to criticize the rezoning. and that led to other candidates jumping in with comments.

 The subject of Amazon came up to which Councilman Espinal chastised Assemblyman Blake for signing the letter to bring Amazon to Queens. this led to a varied back and forth with other candidates jumping in also. 

 Candidate Dawn Smalls got into a discussion with other candidates as to what legal powers the Public Advocate had on NYCHA,  saying that one candidate was wrong by mentioning that they would sue NYCHA. She said that being an attorney who has handled problems at NYCHA the Public Advocate can not sue NYCHA, and that was the reason for a federal monitor on NYCHA.

 Overall this was a good debate, but few of the ten candidates could come up with good sound reasoning as to why voters should vote for them. The winner of this debate to me was candidate Dawn Smalls who had the knowledge of the subject matter asked giving the most informative answers without going off topic. The losers were the seven candidates who did not show. 

Above - (L - R) Host Gary Axelbank at the podium, Assemblyman Ron Kim, Journalist Nomiki Konst, Councilman Ydanis Rodriguez, Michael Blake's seat (he arrived after the debate started), and Attorney Jared Rich.

Below - (L - R) Councilman Rafael Espinal, Activist Benjamin Yee, Attorney Dawn Smalls, Activist Anthony Herbert, and Activist David Eisenbach.

Manhattan Doctor Pleads Guilty To Accepting Bribes And Kickbacks From Pharmaceutical Company In Exchange For Prescribing Fentanyl Drug

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ALEXANDRU BURDUCEA, a doctor who practiced in Manhattan, pled guilty today to conspiracy to violate the Anti-Kickback Statute in connection with a scheme to prescribe Subsys, a potent fentanyl-based spray, in exchange for bribes and kickbacks from Subsys’s manufacturer, Insys Therapeutics (“Insys”).  BURDUCEA pled guilty before U.S. Magistrate Judge Kevin Nathaniel Fox.  The case is assigned to U.S. District Judge Kimba M. Wood.

U.S. Attorney Geoffrey S. Berman said:  “As he admitted today, Alexandru Burducea, a prominent Manhattan pain management doctor, accepted tens of thousands of dollars in speaker fees from Insys in exchange for prescribing large volumes of Insys’s powerful fentanyl-based spray, Subsys.  The corrupting influence of money has no place in medicine, especially when it comes to prescribing fentanyl and other dangerous opioids.  Like many other doctors around the country, Dr. Burducea is now being held to account for his participation in this corrupt kickback scheme.”           

According to the allegations contained in the Indictment against BURDUCEA and filings in related proceedings:

The Insys Speakers Bureau 

Subsys, which is manufactured by Insys, is a powerful painkiller approximately 50 to 100 times more potent than morphine.  The U.S. Food and Drug Administration (“FDA”) approved Subsys only for the management of breakthrough pain in cancer patients.  Prescriptions of Subsys typically cost thousands of dollars each month, and Medicare and Medicaid, as well as commercial insurers, reimbursed prescriptions written by BURDUCEA.

In or about August 2012, Insys launched a “Speakers Bureau,” a roster of doctors who would conduct programs (“Speaker Programs”) purportedly aimed at educating other medical practitioners about Subsys.  In reality, Insys used its Speakers Bureau to induce the doctors who served as speakers to prescribe large volumes of Subsys by paying them Speaker Program fees.  Speakers were supposed to conduct an educational slide presentation for other health care practitioners at each Speaker Program.  In reality, many of the Speaker Programs were predominantly social affairs where no educational presentation about Subsys occurred.  Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of medical practitioners who were not present.

BURDUCEA’s Participation in the Scheme

BURDUCEA, a doctor certified in pain management and anesthesiology, was an Assistant Professor of Anesthesiology at a large Manhattan hospital.  BURDUCEA also practiced at an anesthesiology and pain management office associated with the hospital.  From in or about September 2014 until in or about June 2015, BURDUCEA received approximately $68,400 in Speaker Program fees from Insys in exchange for prescribing large volumes of Subsys.  In addition, Insys hired BURDUCEA’s then-girlfriend, now wife, to work as BURDUCEA’s sales representative, and the company paid her large commissions based on the volume of Subsys prescribed by her assigned doctors, including BURDUCEA. 

BURDUCEA, who had never prescribed Subsys before in or about September 2014, became approximately the 14th-highest prescriber of Subsys nationally in the second quarter of 2015, accounting for total net sales of the drug of approximately $621,345 in that quarter.

BURDUCEA, 42, of Little Neck, New York, pled guilty to one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  BURDUCEA is scheduled to be sentenced by Judge Wood on May 22, 2019, at 11:00 a.m.

Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and thanked the U.S. Department of Health and Human Services Office of Inspector General for its assistance in the investigation.