Thursday, March 21, 2019

PS 83 Blood Drive Very Successful



  The New York Blood Center held its annual Blood Drive at the Bogart Avenue School. Blood Levels are low due to several reasons including the flu season. It was hoped that over two dozen pints of blood would be collected yesterday, and over three dozen or forty pints to be exact were collected. This very successful Blood Drive was due to the staff of PS 83 and the many people who came in to volunteer to give their blood. 

 Not everyone was allowed to give blood however, as first there were a few questions to answer. Then the donor was interviewed and their blood pressure was taken. while most people passed this interview process a few had to be turned away for one reason or another. after the interview donors were greeted and sat back as the blood was drawn from their arms. after the pint of blood was collected donors had a snack and drink of water or juice while they rested a few minutes before they left. 

Wednesday, March 20, 2019

Statement of Police Commissioner James P. O'Neill Before the New York City Council Committee on Public Safety on the Preliminary Budget for Fiscal Year 2020


  In 2018, as you know, New York City experienced another remarkable year in reducing violence and property crime: Overall index crime is at its lowest level here since 1957 — more than 60 years ago. Robberies, burglaries, and auto thefts have all continued their downward trends. 2018 was the second year in a row we had fewer than 300 murders — again, less than any year in New York since 1951, when there were half-a-million fewer people in our city. Our current murder rate of 3.4 per 100,000 residents is among the lowest in the nation. Also in 2018, we recorded the lowest number of shootings in New York City's modern history — for the third year in a row. On five separate occasions, the city went five or more days without a recorded murder, including for nine consecutive days, spanning November 25th to December 3rd. And for the first time ever, the NYPD recorded three straight months — October, November, and December — below 20 murders.
We did see a substantial increase in reported rapes over the last year. We know that part of this is attributable to the NYPD's substantially increased outreach efforts to help survivors report what happened. We now have advocates inside every police station house, specifically for domestic-violence victims and victims of other crimes. Last year, we saw an increase of more than 300 walk-in reports at precincts for sexual-assault complaints. We also know that — and this is a belief shared by survivors' advocates, with whom we regularly meet — that rape has been, and continues to be, our number one underreported crime. In fact, about a quarter of the rapes reported in 2018 took place prior to 2018. To me — and to the entire NYPD leadership — that means we are successfully building trust with survivors. And it is crucial that we continue on that path; this historic underreporting is beginning to be addressed in a substantial, and vitally-important way.
As you know, last year we conducted a complete overhaul of our entire Special Victims Division — now led by Deputy Chief Judith Harrison. We are renovating and upgrading facilities, adding more highly-trained personnel, and fine-tuning our response to survivors of these horrific crimes to make sure we provide every service and every comfort they need. And our Special Victims detectives are working to fully investigate both past and current-year sex assaults with a thoroughness and sensitivity that provides all survivors with empathy, closure, and justice. The NYPD will never rest in our determination to drive down the crime of rape, one of the most heinous of all violent offenses. And we, therefore, will never stop looking for ways to innovate and improve our practices in this area.
2018 was also a major milestone in another way: Five years ago, the NYPD charted a course toward furthering the steady-crime declines we saw in the previous two decades. We deliberately pivoted away from a largely enforcement-driven approach, toward a more precise and targeted paradigm. The core of the plan was, and continues to be, our Neighborhood Policing philosophy — a total shift in the NYPD's crime-fighting model that puts our members in closer connection with people all across the city. And police officers are using their great capacities of heart and mind to solve problems, where possible, without enforcement actions. Our cops now regularly work the same shifts in the same sectors. They are getting to know their neighborhoods, their community residents, their local problems, and their local criminals. They are getting the time and latitude to work at solving local crime and quality-of-life concerns. And the result is a more-flexible, more-responsive, more-measured, and more-effective police presence. Investigations are also more focused, with patrol cops playing an expanded role in gathering evidence and information, and precinct detective squads working in closer coordination with specialty squads like Gang and Narcotics to bring in more and even stronger cases against violent criminals. And because we involve our six local district attorneys, or the U.S. Attorneys for the Southern or Eastern Districts, from the outset, we are able to pre-indict many offenders before they are arrested, charge them appropriately, and see their cases through to meaningful prison sentences.
We also support our new approach with major improvements in training and technology, all implemented in the past five years. Perhaps most importantly, we decentralized and democratized technology and data-access in the department, equipping all officers with smartphones that connect them to databases, to the public, and to each other. We have gone from cops who lacked email addresses or any other way than a police radio to communicate in the field, to officers who now have instant access to a wide range of information and functionalities, and who regularly share their cell phone numbers and email addresses with local residents and businesses. The short-term results are in and, unlike a lot of five-year plans in world history, ours is actually working. Neighborhood Policing has pushed both crime and enforcement down substantially. Overall crime declined by 14.2 percent, and murders by 11.9 percent. Shooting incidents are down 31 percent. Compared to the five-year period prior to these last five years, the average for murders now is 30 percent lower, and the average for shootings is 29 percent lower. We are not just achieving massive declines in violence — with our intensified and focused investigations of gangs, we are sustaining those declines over the longer term. And in other categories: Robbery is down 32.6 percent in five years; burglary is down 33.3 percent; auto theft is down 26.4 percent. It may be hard to believe, but there were more than 140,000 auto thefts in New York City in 1990; last year, there were just over 5,000 — a reduction of about 96 percent.
Neighborhood Policing continues to be a paradigm shift for the NYPD in its goal of combining greater police community relations while continuing to drive down crime spikes, in real time, wherever and whenever they may arise. Part of the success of our hyperlocal focus is due to our Build-the-Block meetings held in every sector of every neighborhood. Led by designated Neighborhood Coordination Officers, not by commanding officers or other superior officers, the purpose is to meet with constituents to identify public safety challenges that are unique to specific neighborhoods, and to discuss potential solutions. The meetings are strategy sessions between local police officers and the people they serve, where relationships are fostered, problems and crime are discussed, and a process for feedback is developed. To date, NCOs have held more than 1,500 Build-the-Block meetings to address problems, help fight crime, and build stronger relationships between officers and community members. New Yorkers can find the next Build-the-Block meeting in their neighborhood at: BuildTheBlock.NYC.
Neighborhood Policing is, without a doubt, the most radical, top-to-bottom, operational change the NYPD has embarked on in nearly 25 years. What we have learned is that if we want everyone who lives and works in our communities to trust and respect their police officers, each of us in leadership roles also must trust and respect our police officers. We had to allow our men and women in uniform to be decision-makers and problem-solvers. We needed them to take ownership of, and great pride in, all the people and all the areas of New York City they protect. And, collectively, we always need to treat everyone we serve equally and fairly. In short, our style of New York policing is a game-changer for our profession and a model for the rest of America.
On the enforcement side during the past five years, street-stops by our officers are down more than 90 percent citywide — even as we improve monitoring and supervision to make sure that all stops are being reported by the officers who find them necessary to make. Overall arrests are down 37.3 percent, and summonses are down nearly 79 percent. Marijuana misdemeanor and violation arrests are down 71 percent. As we believed we could in 2014, we have shown that we can drive crime down significantly with a far less-intrusive enforcement profile. While arrests and summonses for quality-of-life violations and minor crimes are way down, felony arrests — for rape, assault, grand larceny and burglary — are all up. And while many misdemeanor arrest categories have fallen steeply, Detective Bureau arrests are up nearly 20 percent in the last five years. Detective arrests are based on exhaustive investigations that specifically direct our enforcement efforts — with laser-like focus — on the serious crimes and the serious offenders, who are a relatively small percentage of the population.
As a result, the crime reductions New York City has achieved in the past few years are categorically historic. Simply put: The city has not been this safe in three generations. Some observers believed we would never be this safe. Some assumed that more than 2,200 murders in 1990 was just the price of doing business in New York City — that nothing could be done about it. But the people who wore police uniforms in New York City knew otherwise. And they knew that reversing the decades-long trend of rising crime and violence would take time, and they knew that it could not be a solo effort. They understood that reclaiming our neighborhoods required the coordinated efforts of the entire police department and, ultimately the full partnership of the millions of people who live and work here.
It can also be said that 2018 was a milestone in the NYPD's historic 25-year crime-fighting period: The murder rate is a tenth of what it once was; total crime has been cut by 78 percent. We say that we are the safest large city in America, and we certainly are when our citywide crime rate is compared to the other biggest cities in the country. However, there are still stubborn pockets of crime — and especially violent crime — in New York. In fact, in 2018, there were six precincts with violent crime rates more than twice as high as the rest of the city. The 40th Precinct in the Bronx had the highest overall rate, including the second-highest robbery rate and the third-highest assault rate. The 73rd Precinct in Brooklyn had the third-highest rate, including the second-highest murder rate and the highest shooting rate. Other precincts — the 41st and 42nd in the Bronx; the 75th in Brooklyn; and the 25th in Manhattan together lead the city in violence. So, let me be clear: Even these six precincts have seen huge drops in violent crime since the early 1990s. But we will never be satisfied with that. We can always do better. And we must do better. The NYPD and our city have a moral obligation to these precincts, because everyone who lives and works in New York City deserves to live in safety — free of fear. Our achievements do give us reason to make the following declaration: We vow not to rest until every block, in every neighborhood, enjoys the same level of safety and well-being as the rest of the city. One's zip code must never be the primary determination of one's safety. And it is our pledge to ensure that every neighborhood is safe, regardless of where in New York City one calls home. This is our job, and we owe it to every single New Yorker. But this job can only be accomplished in partnership with the rest of the city, inside and outside government. For this reason, I have begun to convene action meetings in each of the six precincts I mentioned earlier, where violence is double the citywide average. The meetings include various elected officials and heads of our partner agencies at the city, state, and federal levels; plus business owners, clergy, service providers, and community leaders — the people on the ground who are the backbone of this important work. And we have been meeting with the cops in these commands to ask them what they think their police department can do better, and how best we can develop new solutions and get them whatever help they feel they need. Out of these meetings, change is coming. Change in how we police, how we partner with our fellow city agencies and elected officials, how we partner with neighborhood residents, and how we partner with business and civic leaders.
Further, the NYPD has devised a five-point plan to address surges in crime and violence as they appear. The plan calls for adding up to eight additional officers in so-called hot spots in each of several precincts identified on a rolling basis throughout the five boroughs. The officers will be assigned to high-visibility posts and backed with resources from our Strategic Response Group. Other portions of the plan call for stronger gun prosecutions — particularly in Brooklyn, where we are closely collaborating with District Attorney Eric Gonzalez — and expansion of our Ceasefire anti-gang outreach initiative, helping parolees, and conducting intensive investigations when guns are used in domestic-violence crimes.
All of these partnerships stand to generate the creative and innovative solutions that will bring down crime in these communities. Brownsville can and should be as safe as Brooklyn Heights. Crime can and should be as low in the South Bronx as it is in TriBeCa. We get there when we all come together, talk frankly, and recommit ourselves to this mission. At the NYPD, we view this as an urgent mission for everyone in these communities, and all over our city, to come together as one to ensure that every square block of New York City is free from both the threat, and the fear of, crime. How we get there is the next evolution of policing in New York. That means continuing to fight — in partnership — for every block, in every neighborhood, every day. And the question is: What can we all do together to advance this noble effort? New York needs everybody throughout the five boroughs to share the responsibility for public safety. Crime, fear, and disorder are not only police problems. New York needs all of our ideas, and all of our actions — now. And that goes for the entire public safety spectrum — from traditional crime to terrorism, to the seedbed-activities that can draw young people down paths of criminality.
Our city will always face challenges. Challenges that test our crime-fighting strategies at the most local of levels, and challenges that test our intelligence-gathering and preparedness at a citywide — and even a global — scale. And that important work continues around the clock, every day of the year, with our analysts, our cops, and our many partners on the FBI-NYPD Joint Terrorism Task Force. It was the first JTTF in the nation, formed in December 1980. And now it is comprised of 300 investigators from 56 agencies — 113 of whom are NYPD cops. Additionally, the NYPD's Critical Response Command works 24/7 protecting sites and infrastructure around the city. And cops in our Strategic Response Group are at the ready to rapidly respond to any emerging threat, be it an active-shooter situation or other terror incident. Along with our elite Emergency Service Unit, they are all informed by our first-rate Intelligence Bureau, which continues to be the industry-leader in detecting, deciphering, and responding to an always-fluid threat stream.
This is a new era, in so many ways. We know, for example, that the legalization of marijuana is coming. And we need to determine how and when laws about use and possession are enforced. I have concerns about home-cultivation, for instance, and driving while impaired — because there is currently no instant test for marijuana levels in the human body. I also have great concerns about people under 21 years of age smoking marijuana. We are also facing pushback from some quarters about the definition of who constitutes a threat to public safety when it comes to fare evasion in our subways. One thing is clear to me, however: This city and its police must always control access to the transit system. To abandon our efforts there would be both irresponsible and highly dangerous. Marijuana and fare evasion are just two examples of the changing playing field. But our future also presents an entirely new possibility. It is now possible to think about how we can equip and enable our cops to help kids avoid a first act of criminal behavior. And we will prove that when the public and the police work together, we can make positive, lasting change in our society. That change begins when people are safe. And it is sustained when they feel safe, too. Our aim is to keep raising the bar for fair and effective policing in this country year after year, again and again. And we are doing it with the help of New Yorkers in every neighborhood. And I ask each of you, and the people you represent, to continue to think of ways that — together — we can make every single part of this city as safe as our safest streets are today.
Turning to budgetary issues, the NYPD plans to again apply for, and obtain, federal assistance to protect members of the public and critical infrastructure, including the Financial District, the transit system, bridges, tunnels, and ports.
Although we have already started planning for the Federal Fiscal Year 2019 preparedness grant-funding process, the applications guidelines for the Homeland Security preparedness grants have not yet been released. This is because the recent federal government shutdown — including the Department of Homeland Security and the Federal Emergency Management Agency — delayed the approval of the FY19 appropriations. The NYPD relies on these funds to help protect all New Yorkers and visitors to our city against terrorist attacks, and to strengthen our homeland-security preparedness. As our nation's top terror target, New York City has been the target of about 30 terror plots since the devastating 9/11 attacks. These plots have included a suicide-bomber in a subway passageway beneath Times Square, the fatal truck attack on pedestrians and bicyclists along the West Side Highway, plans to place bombs among the festive crowds watching the July 4th fireworks over the East River, and an ISIS plot to capture on video the beheading of a woman in Manhattan.
The federal Homeland Security funds buy us a lot, including our Bomb Squad's Total Containment Vessel — the rolling vault that allowed the NYPD to remove the live pressure-cooker bomb planted on a street in Chelsea, and some of the 16 pipe bombs mailed to CNN in Columbus Circle and other recipients throughout New York and the country. The money also funds our Vapor Wake dogs that patrol large-scale events searching for hidden explosives, and our active-shooter training that hones the tactical skills of thousands of officers who might one day have to face a machine-gun-wielding attacker in a crowded concert venue or a school. Federal funds have also allowed the NYPD to develop and sustain our sensor and information technology centerpiece known as the Domain Awareness System, or DAS, which supports the department's counterterrorism mission; hire Intelligence Research Specialists, deploy officers to the transit system and other strategic locations citywide based on intelligence; and train officers to respond to chemical, ordnance, biological and radiological threats or incidents, as well as active-shooter scenarios. The NYPD also uses federal funds to purchase personal protective equipment for uniformed members of the service, and to purchase other critical equipment that enhances our ability to protect New Yorkers and vital transportation and port infrastructure. Regarding the Preliminary Budget and its impact on the NYPD: The NYPD's Fiscal Year 2020 City Tax Levy Expense Budget is $5.3 billion. The vast majority of this — 92 percent — is allocated for personnel costs. Highlights in the Preliminary Budget include:
  • Additional civilian staffing for the Body-Worn Camera program; this includes attorneys, media technicians, and IT personnel for a total of $6.3 million annually.
  • Cabling upgrades & facility work totaling $12.5 million, most of which is to allow precincts to better upload body-worn camera footage to the NYPD's network. The balance of funds are for improvements to 137 Centre Street, the facility for our Manhattan Special Victims Squad.
  • Crisis Intervention Team (CIT) Training: $5.3 million annually to continue training our uniformed members, and to improve services provided to people with behavioral-health challenges as they relate to the criminal justice system. This includes scenario-based training in crisis intervention techniques.
The Police Department's 10-Year Capital Commitment Plan contains $1.99 billion for Fiscal Years 2019 through 2029. The September Capital included additional funding for 100 Old Slip, totaling $13.3 million. This funding will allow for a comprehensive renovation of 100 Old Slip, a historic landmark building located in the heart of Lower Manhattan's Financial District. The NYPD will incorporate a public-use space in addition to running a law-enforcement operations facility.
Across the NYPD, we will continue to leverage every tool available to us to keep New York City safe, including the use of new and innovative technology. We are keenly focused on technological advances, and how they can be applied to fighting crime, creating safer and more-efficient ways for police officers to do their jobs, and contributing to the important work of building trust. Building trust with the people we serve; fighting traditional crime; combating international terrorism — none of this is easy. But cops do not take these jobs because they are easy. People join the police department to make a difference — to do good, and NYPD members accomplish that every single day. And they do it in newer, and better ways every day, too.
In closing, I can tell you our city is in much better shape today than it was when I became a cop in 1983. Those of you who lived and worked here decades ago know it, too: This is not the same city it was in the 1980s and 1990s. And each year, we make even greater headway. Together, we are proving that New York City is the place that others across our nation want to emulate. And we are setting that tone through our brand of New York policing.

Tax Preparer Sentenced To 2 Years In Prison For Fraudlent Scheme To Steal Over $1 Million From His Clients


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that TOM SHIN was sentenced to two years in prison for aiding the preparation of a false tax return and wire fraud.  SHIN pled guilty on November 29, 2018, before U.S. District Court Judge Valerie E. Caproni, who imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “Instead of honestly performing the tax services he was hired to do, Tom Shin used his expert knowledge in a scheme to defraud his clients of more than $1.3 million that was intended to pay taxes owed to the federal and state governments.  Today, Shin has been held accountable for breaching his clients’ trust.”
According to the allegations in the Complaint and Indictment to which SHIN pled guilty:
SHIN was hired to prepare joint federal and state tax returns for two individuals (the “Clients”) for tax year 2017.  SHIN showed the Clients completed tax return forms indicating that the Clients owed approximately $1.3 million in taxes.  However, SHIN actually filed false returns on behalf of the Clients without their knowledge, which concealed the Clients’ tax liability.  SHIN then, in connection with applications for extensions of time to file his personal tax returns, directed tax authorities to withdraw approximately $1.3 million from the Clients’ bank account, and then filed personal tax returns seeking an approximately $1.3 million refund.  The net result of the alleged scheme would have been a transfer of approximately $1.3 million from the Clients’ bank account to SHIN.
In addition to the prison term, SHIN, 36, of Staten Island, New York, was sentenced to two years of supervised release.  SHIN was also ordered to forfeit $335,394. 
U.S. Attorney Berman thanked the Internal Revenue Service and the New York State Department of Taxation and Finance for their outstanding work.

Financial Broker Pleads Guilty In Manhattan Federal Court To Tax Evasion And Failure To File Tax Returns


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RICHARD JOSEPHBERG pled guilty today to one count of tax evasion and three counts of willful failure to file tax returns.  In particular, JOSEPHBERG admitted that he deliberately evaded the assessment of hundreds of thousands of dollars in federal income taxes by fraudulently reporting a 2011 commission of approximately $1.5 million as a long-term capital gain, which was taxed at a much lower rate than ordinary income.  In addition, he admitted that he willfully failed to timely file any tax returns for the calendar years 2013 through 2015.  As part of his plea, JOSEPHBERG agreed to pay at least $1,275,624 in restitution to the IRS and the New York State Department of Taxation and Finance.  JOSEPHBERG pled guilty before United States Circuit Judge Richard J. Sullivan. 

U.S. Attorney Geoffrey S. Berman said:  “As he admitted, Richard Josephberg defrauded the IRS and evaded taxes by disguising more than $1.5 million in income as long-term capital gain.  He also admitted he failed to file tax returns for four years.  Now Josephberg awaits sentencing for his multifaceted tax dodge.”
According to the Indictment, public filings, and other statements made in open court:
JOSEPHBERG was previously convicted in September 2007, in the U.S. District Court for the Southern District of New York, of 16 counts of tax fraud and one count of health care fraud, which resulted in a sentence of 50 months in prison and three years’ supervised release.  While on supervised release for that conviction, he began engaging in the criminal conduct that formed the basis of today’s plea. 
Specifically, starting in late 2010, JOSEPHBERG began working for an investor relations firm (“Firm-1”) in Manhattan.  Through the individual who operated Firm-1, JOSEPHBERG secured a commission-based arrangement with another investment firm (“Firm-2”), which agreed to pay JOSEPHBERG a commission of approximately 15 percent of any profit generated by Firm-2 on financing deals originated by JOSEPHBERG.  For originating one such financing deal, JOSEPHBERG was entitled to commission payments totaling approximately $1.57 million in 2011.  After receiving payments totaling approximately $35,725 in his own name, JOSEPHBERG directed Firm-2 to issue the remaining commission payments in the name of a newly formed nominee corporate entity called “Almorli Advisors Inc.”  JOSEPHBERG opened a new bank account in the name of Almorli Advisors Inc. (“Almorli Bank Account-1”), and deposited payments totaling approximately $1.53 million into that account.
In March 2012, while preparing to file 2011 federal income tax returns, JOSEPHBERG took steps to evade paying hundreds of thousands of dollars in federal income taxes by disguising and concealing the type of income that JOSEPHBERG had received from Firm-2.  On or about March 27, 2012, JOSEPHBERG formed a second entity called “Almorli Advisors NY LLC,” which served as a shell company to insulate JOSEPHBERG from IRS scrutiny.  JOSEPHBERG caused his accountant to prepare a false 2011 partnership income tax return, Form 1065, in the name of Almorli Advisors NY LLC (the “2011 Form 1065”), listing JOSEPHBERG as a 99 percent partner and JOSEPHBERG’s son as a one percent partner.  To evade a substantial part of the income taxes due and owing for 2011, JOSEPHBERG caused the 2011 Form 1065 falsely to report the commission payments from Firm-2, totaling approximately $1,574,922, as a long-term capital gain, rather than ordinary income.  JOSEPHBERG’s purported 99 percent share of this false long-term capital gain flowed through to JOSEPHBERG’s 2011 individual income tax return, Form 1040.  JOSEPHBERG’s fraudulent misclassification of this income resulted in a reported tax liability that was hundreds of thousands of dollars lower than the true tax liability because individual long-term capital gains were taxed at a significantly lower rate than ordinary income.   
JOSEPHBERG also engaged in a scheme to evade the assessment of federal income taxes for calendar years 2013 through 2016.  During those years, JOSEPHBERG received substantial income from performing consulting and other professional services.  Despite earning substantial income, JOSEPHBERG failed timely to file any federal income tax returns for the calendar years 2013 through 2016 until after IRS agents informed JOSEPHBERG in May 2017 that he was under investigation.  In addition to not timely filing any tax returns, JOSEPHBERG took various affirmative steps to evade the assessment of taxes.  Among other things, JOSEPHBERG routed substantial amounts of income through Almorli Bank Account-1 and another bank account in the name of Almorli Advisors Inc., which bank accounts JOSEPHBERG controlled and used to pay for his personal expenses. 
JOSEPHBERG’s tax evasion and failure to file tax returns had a dual purpose:  by using corporate entities to conceal personal income, JOSEPHBERG was attempting both to evade paying his substantial outstanding tax liabilities from prior years (1997, 1998, and 2005) and to evade assessment of taxes for 2011 and 2013 through 2016, as charged in the Indictment.
JOSEPHBERG, 72, of Greenwich, Connecticut, pled guilty to one count of tax evasion for the tax year 2011, which carries a maximum sentence of five years in prison, and three counts of willful failure to file tax returns for the tax years 2013 through 2015, each of which carries a maximum sentence of one year in prison.  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.  As part of his plea, JOSEPHBERG agreed to pay at least $1,275,624 in restitution to the IRS and the New York State Department of Taxation and Finance.  JOSEPHBERG is scheduled to be sentenced by Judge Sullivan on July 15, 2019, at 2 p.m.
Mr. Berman praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case.  Mr. Berman also thanked the New York State Department of Taxation and Finance for its assistance in the prosecution.

Tuesday, March 19, 2019

California Man Charged In Manhattan Federal Court With Defrauding Thousands Of Donors To Scam Political Action Committees


  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JOHN PIERRE DUPONT, a/k/a “John Gary Rinaldo,” was arrested this morning and charged with wire fraud and aggravated identity theft for his role in a years-long, nationwide scheme to defraud thousands of donors who believed they were donating to political action committees and political campaigns.  The defendant is expected to be presented this afternoon in the District Court of Arizona.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, John Pierre Dupont operated multiple fake political action committees and falsely claimed to be raising money to support more than a dozen campaigns.  Thousands of donors believed their hard-earned money was being used to support the causes described in solicitations, but in reality, the scam PACs had no operations beyond the fundraising itself, and no funds were used to support candidates.  My Office will continue to ensure that fraudulent fundraising does not pay – indeed, will result in criminal prosecution – by rooting out scam PACs wherever we find them.”
According to the Complaint[1] unsealed today in Manhattan federal court:
From at least in or about 2015 up to and including the present, JOHN PIERRE DUPONT defrauded thousands of donors who believed they were donating to three political action committees established by DUPONT (the “Scam PACs”),[2] or to campaigns the Scam PACs falsely claimed to support.  DUPONT’s scheme resulted in more than $250,000 being donated through websites he controlled and operated, all of which was retained by DUPONT, both to enrich himself personally and to perpetuate the alleged crime.
The websites purported to be raising money in support of Democratic congressional and senate campaigns generally, as well as approximately 10 particular Senate candidates, a candidate for governor, and a candidate for president.  None of the money raised went either to those campaigns or to support those candidates whatsoever.  Another website operated by DUPONT purported to be raising money “to unite immigrant families” and provide services in connection with certain immigration policies.  In particular, the Foundation for Sanity in Politics PAC website claimed that donations would “go to help pay our volunteer attorneys’, doctors’, nurses’ and social workers’ costs and pay for transportation to unite immigrant families.”  In fact, that PAC had no volunteers, and dedicated no funds to paying for doctors, social workers, or any other professionals, advocacy, or political operations.
The scheme targeted victims across the country, raising funds on the basis of fraudulent representations that the donations would support the relevant causes, candidates, and campaigns.  Instead, virtually all of the money raised was paid to DUPONT or used to perpetuate the fraud through additional fundraising and overhead expenditures.  None of the money donated to the Scam PACs was spent on political contributions during the relevant time period, and DUPONT failed to report the donations, as required, in filings with the Federal Election Commission.
Donations collected by DUPONT during the relevant period totaled more than $250,000, none of which went to campaigns or support for any candidate or cause.
JOHN PIERRE DUPONT, 80, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and aggravated identity theft, which carries a mandatory two years in prison consecutive to any other sentence imposed.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York.
If you think you are a victim of the scheme alleged in this press release, please contact Wendy Olsen, Victim & Witness Services for the U.S. Attorney’s Office for the Southern District of New York, at 866-874-8900.
The charges contained in the Complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty.
 [1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
[2] Businessmen for a Businessman President PAC, Foundation for Sanity in Politics PAC, and Democrats for Congress PAC.

Chuck Person, Former Division I Men’s Basketball Coach, Pleads Guilty To Bribery In Manhattan Federal Court


Person, a Former Auburn University Men’s Basketball Coach, Pleaded Guilty to Accepting Cash Bribes in Return for Steering College Players on His Team to a Financial Adviser and Business Manager

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CHUCK CONNORS PERSON, a former men’s basketball coach at Auburn University (“Auburn”), pled guilty in Manhattan federal court today to receiving approximately $91,500 in cash bribes from athlete advisers in exchange for using his influence over Auburn basketball players to retain the services of the advisers paying the bribes.  PERSON pled guilty before U.S. District Judge Loretta A. Preska.   

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As he has now admitted, Chuck Person abused his position as a coach and mentor to student-athletes in exchange for personal gain.  In taking tens of thousands of dollars in cash bribes, Person not only placed personal financial gain above his obligations to his employer and the student-athletes he coached, but he broke the law.”
 According to the Complaint, the Indictment, statements made in court and publicly available documents:
Over the course of a year, PERSON, a former men’s basketball coach at Auburn University until shortly after his arrest, agreed to accept cash bribes in return for agreeing to exert his influence over student-athletes on the Division I men’s basketball team he coached to retain the services of the bribe-payers, including once the student-athletes entered the National Basketball Association (“NBA”).  
Beginning in 2016, and continuing into September 2017, when PERSON was arrested, PERSON received approximately $91,500 in cash bribes from a financial adviser and business manager, who, unbeknownst to PERSON, was providing information to law enforcement (“CW-1”).  In exchange for the cash bribes, PERSON agreed to exert his influence over certain student-athletes PERSON coached at Auburn University to retain the services of CW-1 once those players entered the NBA.  The bribe payments are alleged to have been initially arranged by a co-conspirator who had a preexisting relationship with PERSON and operated a clothing store that specialized in making bespoke suits for professional athletes. 
Over the course of the scheme, and in exchange for the cash bribes described above, PERSON did, in fact, arrange multiple meetings between CW-1 and Auburn players and/or their family members.  In those meetings, PERSON falsely touted CW-1’s qualifications as a financial adviser and business manager without disclosing that PERSON was, in fact, being bribed to recommend CW-1.  In one recorded meeting, PERSON stressed to an Auburn University player the importance of keeping their relationship with CW-1 a secret.  Person stated, “most important part is that you  . . . don’t say nothing to anybody . . . don’t share with your sisters, don’t share with any of the teammates, that’s very important cause this is a violation . . . of rules, but this is how the NBA players get it done, they get early relationships, and they form partnerships.”   PERSON later told that player that CW-1 would purchase him a separate cell phone over which they could communicate so as to conceal the nature of the scheme.  
PERSON, 54, of Auburn, Alabama, pled guilty to one count of conspiracy to commit bribery.  As a condition of his plea, PERSON agreed to forfeit $91,500.  The charge carries a maximum term of five years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  Sentencing is scheduled for July 9th, 2019, before Judge Preska.
Mr. Berman praised the work of the FBI and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

Attorney General James Announces $62.5 Million In Settlement Credits For Spectrum Customers


  Attorney General Letitia James today announced that Spectrum (formerly Time Warner Cable) has started to issue credits to New York consumers as required by Charter Communications, Inc.’s December 17, 2018 settlement agreement. The settlement agreement resulted from an action brought by the Office of the Attorney General alleging that the company failed to deliver customers the reliable and fast internet service it had promised. Under the terms of the settlement, Charter is required to issue monetary relief to qualified subscribers and offer video streaming services, described below, at no charge. In all, qualified subscribers will receive $62.5 million in bill credits. Subscribers do not have to fill out any paperwork to obtain the credit, but must contact Spectrum to receive the streaming services. 

“Today, New Yorkers will start to receive the tens of millions of dollars and additional services owed to them due to the company’s failure to provide quality services to its customers,” said Attorney General Letitia James. “In issuing the largest-ever consumer payout by an internet service provider, my office is proud to set a higher standard for the way that internet providers accurately market services.” 
Spectrum will also offer the following streaming services to approximately 2.2 million current internet subscribers at no extra charge
  • Current subscribers who subscribe to both internet and cable television from Spectrum will have a choice of either three (3) months of HBO OR six (6) months of Showtime. (Note: This benefit is available to subscribers who do not already subscribe to both of the offered services through Spectrum.) 
  • Internet only subscribers will get one (1) month of Spectrum TV Choice streaming service—in which subscribers can (depending on their location) access broadcast television and a choice of 10 pay TV networks—as well as access to Showtime for one (1) month.
Consumers will have until May 30, 2019 to select the no extra charge premium services they want. Consumers should call Spectrum at 1-833-422-8795 for further information.
The Attorney General wants to ensure that all eligible subscribers are able to receive the no cost streaming services. We encourage subscribers to share their experience redeeming the offer by completing this survey.  
Current internet service subscribers who leased a DOCSIS 2.0 modem on a tier of 20 Mbps or higher or an 802.11n wireless router on a tier of 200 Mbps or higher, or who subscribed to a legacy Time Warner Cable plan of 100 Mbps or higher (as of February 1, 2017) will receive a credit of $75. Further, subscribers who leased a DOCSIS 2.0 modem on a tier of 20 Mbps or higher for 24 months or more will receive an additional credit. 

MAYOR DE BLASIO SIGNS LEGISLATION TO PROTECT WORKERS IN COMMERCIAL WASTE INDUSTRY


  Mayor de Blasio held hearings for and signed three pieces of legislation to protect workers in the commercial hauling industry: Intro. 1329-A gives BIC the authority to register unions operating in the trade waste industry; Intro. 1368-A requires trade waste companies to provide workers’ rights information to certain employees; and Intro. 1373-A requires BIC to refer labor and wage violations to appropriate state or federal authorities.

“This package of bills will allow the City to better protect workers and the public from irresponsible companies who put profit before people. Along with our commercial waste zones proposal, this legislation takes another step toward increasing the safety of the waste management industry and protecting workers from abuse,” said Mayor de Blasio.

Int. 1329-A sponsored by Council Member Reynoso gives BIC the authority to register unions who represent employees who are directly involved in the collection, removal, transportation or disposal of trade waste.  Names of all union officers and agents will be disclosed to the City, which will help ensure the trade waste industry remains free from organized crime and other corruption.

Int. 1368-A sponsored by Council Member Moya requires trade waste companies to provide workers’ rights information to employees in the trade waste industry.  Under this law, BIC will require all companies post and share information about workers’ rights, including the maximum number of hours employees are allowed to work in a 24-hour period, the minimum wage they must be paid, safety training requirements, safety equipment required, and information about how to file a complaint, including the list of agencies a worker can approach to file such complaint.  All this information will also be posted on BIC’s website.

Int. 1373-A sponsored by Council Member Reynoso requires BIC to refer labor and wage violations to appropriate state or federal authorities. The bill takes effect immediately after it becomes law.  This bill codifies BIC’s current practice of referring cases of wage theft or other labor violations to appropriate state or federal authorities.  In the past, BIC has worked with agencies such as the U.S. Department of Labor, the United States Attorney’s Offices, the FBI, and the Office of the Attorney General of the State of New York to investigate these claims and to take appropriate action.

“Worker abuses are unacceptable and this Administration is cracking down on bad actors in the trade waste industry. We have been working closely with the City Council on this legislation to give BIC more oversight of trade waste unions and protect workers,” said Business Integrity Commission Commissioner Daniel Brownell.

Collecting and transporting trade waste, particularly in New York City, is a dangerous and strenuous job.  The collection trucks are huge and must share the road with many other motor vehicles, cyclists and pedestrians.  As a result, this Administration has made safety in the industry and on the City’s streets a priority.  BIC continues to promote the universal trade waste safety manual that was created 2018 along with partner agencies and members of the trade waste industry.

BIC has prioritized traffic safety for the trade waste industry, conducting a number of joint enforcement operations with the NYPD targeting unlawful operation of trade waste trucks.  Since last summer, the NYPD and BIC have conducted approximately 15 joint operations, in which BIC issued more than 80 administrative violations to the companies, for issues such as undisclosed drivers, commingling recyclables with garbage and license plates not properly affixed to the trucks. 19 unsafe trade-waste trucks were put out of service on the spot and towed.