Woman Sentenced to 20 Years-to-Life For Fatal Times Square Subway Push

  Manhattan District Attorney Cyrus R. Vance, Jr., announced the sentencing of MELANIE LIVERPOOL, 33, to 20 years-to-life in prison for shoving 49-year-old Connie Watton in front of an oncoming train at the Times Square – 42nd Street subway station, killing her, on November 7, 2016. LIVERPOOL pleaded guilty to Murder in the Second Degree — the sole count in the indictment against her — on March 4, 2019.

“Melanie Liverpool committed an unconscionable crime when she shoved Ms. Watton off a subway platform and into a speeding train, ending her life and taking her away from her beloved husband and friends,” said District Attorney Vance. “Now, thanks to the NYPD and my office’s prosecutors, she will serve significant prison time for this horrific act of violence.”

District Attorney Vance thanked the NYPD, particularly Officers Brian Bulanowski and Kyle Rugino of Transit District 3 and Detective John Kiernan of the Midtown South Detective Squad, for its assistance on the investigation. 

Defendant Information:

MELANIE LIVERPOOL, 

D.O.B. 2/1/1986  Queens, NY

Convicted: Murder in the Second Degree, 

a class A felony, one count

Sentenced: 20 years-to-life in prison

Stringer Audit Reveals Inadequate Oversight of DOB Amusement Park Inspections, Highlighting Widespread Inconsistencies

DOB strengthens inspection oversight following Comptroller’s audit

  New York City Comptroller Scott M. Stringer released a new audit of the Department of Buildings (DOB) revealing the agency’s consistent failure to properly account for its inspections of amusement devices and rides often found at street fairs and in New York City’s amusement parks and public parks. The audit identified widespread inconsistencies in inspection records, reflecting deficient oversight at the DOB. In one example, 86 percent of the random spot checks of these devices reportedly performed by the DOB Elevator Unit and sampled in the Comptroller’s audit were not recorded on the rides’ DOB-issued compliance certificates, known as “green cards.” Further, DOB inspection records indicate that hundreds of inspections were made on devices that other DOB records stated were no longer in operation, suggesting that these records are inaccurate and unreliable. Following the Comptroller’s audit, DOB has agreed to integrate inspection results into DOB NOW, an updated system for tracking inspections, which could streamline and strengthen the oversight process.

“Part of what makes New York City such a great place to raise a family is that our communities have the space and opportunity to come together in celebration. That’s why we can’t take chances with inspections or the safety of New Yorkers,” said Comptroller Stringer. “The lack of oversight and management at the Department of Buildings has put hundreds of inspections in question and may have led to a waste of taxpayer money. Our audit is pushing the Department of Buildings to make fundamental changes in how it ensures inspections are completed and tracked, and that means more fun and peace of mind for New Yorkers.”

Amusement devices include permanent, temporary, and portable rides – all of which must pass an initial inspection performed by DOB’s Elevator Unit before receiving a license for public use at a street fair, carnival, or amusement park. While permanent devices must receive an inspection roughly every 120 days, temporary devices, often seen at street fairs, receive an inspection every time they are set up at a location and are approved for a period of not more than two weeks at a time.

According to DOB rules, all amusement devices across New York City are subject to random spot checks while in use to ensure that devices are operated safely, are on level ground, and that operators are following safety requirements such as enforcing height requirements and making sure that riders lock their seatbelts. Spot checks constitute the vast majority – 95 percent – of amusement device inspections by DOB and are performed solely during inspectors’ overtime hours.

The Comptroller’s audit surveyed nine locations across all five boroughs and reviewed 1,857 spot checks reportedly made by DOB’s Elevator Unit between January 1, 2016 through July 25, 2018, and reviewed DOB’s checklists of 242 periodic inspections of permanent amusement park devices, to determine the accuracy and reliability of the inspection process.

Findings include:

86 Percent of Sampled Random Inspections of Amusement Devices Cannot be Verified

Inspectors are required to record results of periodic inspections on “green cards” assigned to each amusement device. For random spot checks, however, DOB requires its inspectors to sign only one green card — for one device — at each amusement park or street fair they visit, which is supposed to signify that the inspector checked all the devices at the location. However, that practice was not consistently followed.

Auditors found instances in which all green cards at a location were signed, other instances where some, but not all, green cards were signed, and instances where only one green card was signed. As a result of DOB’s inconsistent practice, of the 1,857 spot checks sampled in the audit, only 267 (14 percent) were recorded on the devices’ green cards. The absence of consistent green card recording means that 86 percent of sampled spot checks reported in DOB’s central Buildings Information System (BIS) could not be verified by the Comptroller’s office or by DOB. As a practical matter, the spot checks reported in BIS cannot be readily verified to determine whether they happened and whether the reported results are accurate.

Missing and Unreliable DOB Records

DOB has a significant and longstanding backlog of inspection results to be recorded, making DOB’s internal tracking system unreliable. As a result, the Comptroller’s audit found:

• While a review of green cards for sampled devices show that 94 percent of the 176 periodic inspections were recorded as performed, only 41 percent of those inspections were recorded into BIS – DOB’s central data system.
• While, according to DOB officials, every device set up in New York City must receive at least one spot check during operation, DOB’s BIS database shows:
  • For the 119 devices active in 2016, 31 percent had no record of a spot check.
  • For the 124 devices active in 2017, 19 percent had no record of a spot check.
  • For the 114 devices active in 2018, 13 percent had no record of a spot check.
• While some devices received just one or two spot checks over the course of three years, another 52 devices received anywhere from 44 to 265 spot checks, revealing a potential waste of resources from inspector overtime and lax oversight of device inspections.
• DOB records aren’t just missing, in some cases they appear to be wildly inaccurate.
  • DOB incorrectly reported that multiple spot checks were performed for a device at Luna Park in Coney Island that was not set-up and not in use – in fact, it was removed from service the prior year.
  • Following this discovery, the audit team comprehensively reviewed DOB listings for “removed” devices against its listings of inspections for “active” devices and identified an additional 16 devices that, according to DOB, received a total of 294 inspections despite being listed in the agency’s own records as “removed” and not operational.

Audit Leads to Stronger DOB Procedures

DOB agreed with the audit’s finding that the agency’s recordkeeping had issues – and agreed to implement the Comptroller’s recommendations including, but not limited to:

• Ensure adequate oversight of the inspections of amusement devices, including by developing written procedures detailing management’s responsibilities for monitoring and reviewing data related to spot checks and periodic inspections, and ensuring that management performs regular reviews.
• Generate periodic reports of spot checks to ensure that all devices are receiving at least one spot check annually, and to ensure that resources are being used efficiently.
• Ensure that inspectors are entering the inspections into DOB NOW on the day they are conducted, implement a plan to eliminate the entry backlog for amusement device inspections, and ensure that going forward inspections are recorded timely.
• Implement procedures for tracking temporary and portable devices and their associated inspections.

Senate Transportation Chair Kennedy Joins Senator Biaggi on Tour of Westchester Square #6 Subway Station

  MTA workers can be seen cleaning and painting before State Senator Alessandra Biaggi and State Senate Transportation Chair Tim Kennedy paid a visit to the Westchester Square #6 Subway Station. In speaking with the MTA supervisor who said she received a call that there was going to be company at the station and to clean it up before the visit, she wanted to know just whom was coming to visit that warranted the station clean up. 

Besides cleaning liter from the stairs, Metro Card machines and windows were cleaned, and fresh coats of paint were put on several wall trims and door frames. When Senators Kennedy and Biaggi arrived to see that the MTA was still cleaning and painting Senator Kennedy said that maybe more stations need to be visited so they will be cleaned up. 

Behind Senator Kennedy are (L - R) Dan Padernacht Chair Traffic and Transportation Committee CB 8, State Senator Alessandra Biaggi, Matthew Cruz District Manager CB 10, Former Councilman James Vacca, and Kevin Daloia Transportation Alternatives.

Above - Senators Biaggi and Kennedy ask this subway rider who uses a cane the problems of getting to the train platform. Since the Westchester Square #6 station does not have an elevator the station is limited in just who can enter the train at the Westchester Square station. It was noted that stations on either side of this stop also do not have any handicap access. 

Below - The peeling paint from under the Westchester Square #6 station was also a concern to both senators. 

Radio Talk Show Host Craig Carton Sentenced To 42 Months In Prison For Securities And Wire Fraud

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CRAIG CARTON was sentenced to 42 months in prison for securities fraud, wire fraud, and conspiracy to commit those offenses.  CARTON was convicted after a one-week trial before Chief U.S. District Judge Colleen McMahon, who imposed today’s sentence.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Radio personality Craig Carton solicited investments for his ticket buying scheme by claiming to have an in with the operator of two New York-area arenas and a major concert promotion company.  He talked of his ability to buy blocks of tickets to live events and sell them for a profit on the secondary market.  But the talk-show host was all talk.  Carton’s purported agreements to buy blocks of tickets were part of an elaborate fiction.  Today he has learned that the price of defrauding investors is a term in prison.”

As set forth in the Complaint, Indictment, and the evidence presented at trial:

CARTON and Joseph Meli 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 resold on the secondary market.  CARTON and Meli purportedly had access to those blocks of tickets based on agreements that Meli 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, co-defendant Michael Wright, Meli, or any entity associated with them.  After receiving the investor funds, CARTON, Wright, and Meli 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 Meli exchanged emails and text messages regarding their existing debts.  On September 5, 2016, for example, Wright emailed CARTON and Meli, “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, Meli, and/or CARTON were personally indebted for over $1 million.  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 Meli, 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 Meli, 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 resell at a profit.  In early December 2016, Meli 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) Meli and a company controlled by Meli (the “Meli Entity”) and (ii) the Concert Promotion Company.  In each of the purported agreements, the Concert Promotion Company agreed to sell the Meli Entity up $10 million worth of tickets to different concert tours.  However, 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 Meli Entity to finance the purchase of tickets pursuant to the agreements between the Meli Entity and the Concert Promotion Company.  Meli, 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 Meli Entity, to finance the purchase of tickets pursuant to agreements between the Meli Entity and the Concert Promotion Company.  Once again, the Concert Promotion Company had not entered into any such agreements.  Meli, Wright, and CARTON engaged in text messages regarding the disposition of these funds.  Some of the money was used by Meli to repay two individuals who had previously invested with Meli 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, among other things.

CARTON also induced the Hedge Fund to wire $2 million to the Sports and Entertainment Company, based on a purported agreement CARTON purportedly 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.

In addition to the prison term, CARTON, 50, of New York, New York, was sentenced to three years of supervised release and ordered to pay $4,835,186.56 in restitution and to forfeit $4,590,000.  CARTON’S co-defendant, Michael Wright, pled guilty on September 27, 2018, to one count of wire fraud and was sentenced to 21 months in prison. 

Joseph Meli pled guilty to securities fraud in October 2017 and is currently serving a 78-month sentence imposed by U.S. District Judge Kimba M. Wood in April 2018.

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.

Eight Men Sentenced To Prison In Connection With Telemarketing Fraud Scheme Targeting The Elderly

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that eight defendants have been sentenced in connection with their participation in a scheme to defraud victims – many of whom were elderly – by soliciting payments over the telephone.  ARASH KETABCHI, a/k/a “Zach Peterson,” RAYMOND QUILES, CHRISTOPHER WILSON, a/k/a “Eric Fields,” JACK KAVNER, a/k/a “Bob Wiley,” a/k/a “Phil Powers,” JOSEPH McGOWAN, and ANTHONY MEDEIROS pled guilty in 2018.  ANDREW OWIMRIN, a/k/a “Andrew Owens,” a/k/a “Jonathan Stewart,” and SHAHRAM KETABCHI, a/k/a “Steve Ketabchi,” were convicted following a 12-day trial before United States District Judge Sidney H. Stein. 

U.S. Attorney Geoffrey S. Berman said:  “Motivated by greed and the possibility of a quick payday, these defendants aggressively targeted the elderly and other vulnerable victims by convincing them to invest their money in various businesses.  In reality, these so-called opportunities were just fraudulent schemes to steal victims’ money.  Now, they have all been sentenced to prison.”

According to the allegations in the complaint and indictments filed in connection with this case, other filings in Manhattan federal court, and evidence presented at the trial of OWIMRIN and SHAHRAM KETABCHI:

Beginning in October 2013 through March 2017, ARASH KETABCHI, WILSON, KAVNER, McGOWAN, and others operated a group of telemarketing companies (the “Telemarketing Companies”) that engaged in a fraudulent scheme (the “Telemarketing Scheme”), by which they promised to earn victims (the “Victims”) money in exchange for particular Victims making an initial cash “investment” in business development, website design, grant applications, or tax preparation services.  Many Victims, the majority of whom are over 70 years old, “invested” thousands of dollars with the Telemarketing Companies, but did not earn any of the promised returns.  When Victims of the Telemarketing Scheme sought refunds, or fought credit card charges, the Telemarketing Companies provided explanations and documentation to the credit card companies falsely representing that the Victims had received the promised services.  QUILES operated a company that provided so-called “fulfillment” services for the Telemarketing Companies, whereby QUILES’s company would send nominal items, such as boilerplate pamphlets, to Victims in order to help the Telemarketing Companies falsely demonstrate to credit card companies that they had provided services to the Victims.  OWIMRIN and MEDEIROS worked as sales representatives for the Telemarketing Companies.  SHAHRAM KETABCHI was responsible for, among other things, the submission of documents to the credit card companies in order to challenge the Victims’ attempts to recover their funds.

Five other individuals have pled guilty in connection with this case, and await sentencing:

Defendant Name	Companies	Count(s) of Conviction
William Sinclair	Olive Branch Marketing, Paramount Business Solutions	Wire Fraud and Conspiracy to Commit Wire Fraud (18 U.S.C. §§ 1343, 1349) Conspiracy to Commit Money Laundering (18 U.S.C. § 1956(h))
Michael Finocchiaro	Olive Branch Marketing, Paramount Business Solutions	Wire Fraud and Conspiracy to Commit Wire Fraud (18 U.S.C. §§ 1343, 1349) Conspiracy to Commit Money Laundering (18 U.S.C. § 1956(h)) Narcotics Conspiracy (21 U.S.C. § 846)
Daniel Quirk	Carlyle Management Group, Vanguard Business Solutions	Wire Fraud and Conspiracy to Commit Wire Fraud (18 U.S.C. §§ 1343, 1349) Conspiracy to Commit Money Laundering (18 U.S.C. § 1956(h)) Narcotics Conspiracy (21 U.S.C. § 846)
Peter DiQuarto	Olive Branch Marketing, Carlyle Management Group, Vanguard Business Solutions. A1 Business Consultants	Wire Fraud and Conspiracy to Commit Wire Fraud (18 U.S.C. §§ 1343, 1349) Conspiracy to Commit Money Laundering (18 U.S.C. § 1956(h)) Narcotics Conspiracy (21 U.S.C. § 846)
Brooke Marcus	First Trend, Tri-Star, Elite Business Services	Conspiracy to Commit Wire Fraud (18 U.S.C. § 1349)

ARASH KETABCHI, 45, of Wayne, New Jersey, was sentenced by Judge Stein on March 27, 2019, to 87 months in prison and three years of supervised release, and ordered to forfeit $1,059,803.84 and to pay $563,427.99 in restitution.

RAYMOND QUILES, 41, of Old Bridge, New Jersey, was sentenced by Judge Stein on March 27, 2019, to 366 days in prison and three years of supervised release, ordered to perform 480 hours of community service, and to forfeit $542,673.30.

CHRISTOPHER WILSON, 33, of Teaneck, New Jersey, was sentenced by Judge Stein on April 3, 2019, to 78 months in prison and three years of supervised release, and ordered to forfeit $485,818.84 and to pay $397,850.80 in restitution.

JACK KAVNER, 32, of West New York, New Jersey, was sentenced by Judge Stein on April 3, 2019, to 51 months in prison and three years of supervised release, and ordered to forfeit $150,000 and to pay $1,705,586.05 in restitution.

JOSEPH McGOWAN, 32, of Port Chester, New York, was sentenced by Judge Stein on April 3, 2019, to 72 months in prison and three years of supervised release, and ordered to forfeit $1,763,582.05 and to pay $1,705,586.05 in restitution.

ANDREW OWIMRIN, 29, of Montvale, New Jersey, was sentenced by Judge Stein on March 27, 2019, to 52 months in prison and three years of supervised release, and ordered to forfeit $100,000.

SHAHRAM KETABCHI, 48, of Rancho Mission Viejo, California, was sentenced by Judge Stein on March 28, 2019, to four months in prison, three years of supervised release, including six months of home confinement, and 480 hours of community service.  SHAHRAM KETABCHI was also ordered to forfeit $30,825 and to pay $563,427.99 in restitution.

ANTHONY MEDEIROS, 38, of Bloomfield, New Jersey, was sentenced by U.S. District Court Judge Nelson S. Román on September 11, 2018, to 66 months in prison and three years of supervised release.   

Mr. Berman praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department. 

If you believe you have been a victim of these telemarketing companies:  A1 Business Consultants, Elevated Business Consultants, Element Business Services, Prestige Worldwide Enterprises, Olive Branch Marketing, CTO Consulting, Carlyle Management Group, or Vanguard Business Solutions, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the U.S. Attorney’s Office for the Southern District of New York, at 866-874-8900 or wendy.olsen@usdoj.gov.  You may also report it to Detective Christopher Bastos of the New York City Police Department at 917-480-7167 or christopher.bastos@nypd.org. 

Attorney General James Announces Criminal Convictions of Six Defendants Charged in New York City Insurance Fraud Ring Take Down

Brooklyn-Based Fraud Ring Stole Over $120K from Insurance Carriers by Submitting Fake Accident Claims for High-End Vehicles  

  Attorney General Letitia James today announced the convictions of six individuals for their participation in a sophisticated auto insurance fraud scheme, in which the defendants cheated insurance carriers out of over $120,000 by submitting fake property damage claims for high-end vehicles.   

“This scheme was a brazen attempt to game the insurance system for profit,” said Attorney General Letitia James. “When individuals organize to commit insurance fraud, all New York consumers pay the cost. My office remains committed to rooting out fraud of any kind, and this is no exception.”  

The following defendants pleaded guilty in Kings County Supreme Court for their roles in the scheme:   

• Carlington Haye, age 37, of Kings County, New York  
• Keon Cole, age 35, of Kings County, New York 
• Theresa King, age 28, of Kings County, New York 
• Mkada Beach, age 38, of Kings County, New York 
• Dexter Karl, age 29, of Kings County, New York 
• Omari Brown., age 24, of Kings County, New York  

According to the Attorney General’s indictment and statements made by prosecutors, between January 2014 and September 2015, members of this insurance fraud ring conspired to submit 11 fake property damage claims, which included multiple false representations, including the manner in which car accidents and purported damages occurred. The defendants also resubmitted claims for the same vehicles with pre-existing damages multiple times. In order to maximize insurance payments, the defendants utilized high-end vehicles, including a Lexus, BMW, Audi, Mercedes, and a Bentley. In furtherance of their scheme, the defendants also used the stolen identity of a United States service member in three of the fake claims.   

The defendants received payments ranging from $5,000 to over $20,000 for their fake property damage claims, and cashed insurance checks at two Pay-O-Matic check cashing branches in Kings County, New York. In total, the defendants fraudulently obtained a total of over $120,000 in insurance payments for their counterfeit claims.   

The Attorney General’s 42-count indictment, filed in Kings County Supreme Court on June 2, 2017, charged the defendants with Insurance Fraud in the Second Degree (a class C felony), Insurance Fraud in the Third Degree (a class D felony), Identity Theft in First Degree (a class D felony), Grand Larceny in the Third Degree (a class D felony), Falsifying Business Records in the First Degree (a class E felony), Scheme to Defraud in the First Degree (a class E felony) and Conspiracy in the Fifth Degree (a class A misdemeanor).   

All six defendants charged pleaded guilty to criminal charges. Defendant Teresa King pleaded guilty to Insurance Fraud in the Fourth Degree, a Class E felony, and was sentenced to 1 year in jail. Defendant Carlington Haye pleaded guilty to Insurance Fraud in the Second Degree, a Class C felony, as part of the plea will serve 90 days in jail, will be sentenced to 5 years’ probation, and must pay over $120,000 in restitution. Defendant Keon Cole pleaded guilty to Insurance Fraud in the Third Degree, a Class D felony, and was sentenced to 30 days in jail, 5 years’ probation, and ordered to pay over $50,000 in restitution. Defendant Mkada Beach pleaded guilty to Insurance Fraud in the Fourth Degree and was sentenced to 5 years’ probation. Defendant Dexter Karl pleaded guilty to Insurance Fraud in the Fifth Degree, a Class A misdemeanor, and was sentenced to a conditional discharged and ordered to pay over $6,000 in restitution. Defendant Omari Brown pleaded guilty to Attempted Petit Larceny, a Class B misdemeanor, and was sentenced to a conditional discharge and also ordered to pay over $9,000 in restitution.   

“The National Insurance Crime Bureau would like to applaud the staff of the New York State Attorney General’s Office for their continued efforts to combat insurance fraud in New York,” said Kevin Gallagher, Regional Director of the Northeast Region of the National Insurance Crime Bureau. “The cost of insurance fraud is shared by all consumers, and these convictions send a strong message to others who may be contemplating engaging in insurance fraud. We look forward to our continued partnership in combatting insurance fraud for all New Yorkers.”  

These convictions are the culmination of a long-term investigation conducted by the Attorney General’s Insurance Fraud Unit. Attorney General James thanks the National Insurance Crime Bureau, New York State Department of Financial Services, New York State Department of Motor Vehicles, New York City Police Department, New York City Department of Finance Office of the City Register, and the Florida Highway Safety and Motor Vehicles for their invaluable assistance in this case. The Attorney General also thanks State Farm Insurance Co., GEICO Insurance Co., Nationwide Insurance Co., United Services Automobile Association, and Progressive Insurance for their valuable assistance.   

Attorney General James Announces Lawsuit Against New York City Stem Cell Clinic For Scamming Vulnerable Patients Out Of Thousands

Park Avenue Stem Cell Deceived New Yorkers Into Paying Thousands of Dollars For Unproven And Potentially Harmful Stem Cell Procedures 

  Attorney General Letitia James announced a lawsuit filed against Park Avenue Stem Cell, a New York City for-profit stem cell clinic, and its managing doctor, Dr. Joel B. Singer, M.D., for allegedly engaging in fraudulent and illegal advertising regarding its stem cell procedures.   

Through advertising efforts, the clinic led vulnerable patients to believe it could treat a variety of serious medical conditions using the patients’ own stem cells, including, but not limited to: urological diseases, erectile dysfunction, cardiac/pulmonary disease, neurological diseases such as Parkinson’s disease and ALS, various autoimmune diseases such as lupus, and orthopedic conditions. While stem cells hold promise for future use, there is currently no adequate scientific substantiation that stem cells can effectively treat any of these conditions.  Despite this, the Defendants charged consumers nearly $4,000 per procedure, with many consumers paying for multiple procedures. 

“Misleading vulnerable consumers who are desperate to find a treatment for serious and painful medical conditions is unacceptable, unlawful, and immoral,” said Attorney General Letitia James. “We will continue to investigate these types of clinics that shamelessly add to the suffering of these consumers by charging them thousands of dollars for treatments that they know are unproven.” 

The complaint also alleges that Defendants misrepresented that their procedures were FDA-approved, that their patients are participating in an established research study, and that their procedures have been endorsed by several scientific and medical organizations.  

In the United States, stem cell products are regulated by the Food and Drug Administration (“FDA”).  Currently, the only stem cell-based products that have been approved by the FDA are blood-forming stem cells derived from cord-blood, which have been approved for limited use. Instead, the defendants, used stem cells obtained from the patient’s own adipose tissue, commonly known as fat, for a wide range of conditions.  

Until at least late 2018, Park Avenue Stem Cell was affiliated with the Cell Surgical Network, a California corporation that was sued by the FDA in May 2018 for allegedly administering stem cell products that were adulterated or misbranded and not approved. The FDA seeks a permanent injunction against the corporation, a related entity and their two main doctors.  As an affiliate, Park Avenue Stem Cell followed the protocols prescribed by CSN. 

For more information on important factors to consider when evaluating stem cell therapies, visit the FDA website. 

Comptroller Stringer Issues Subpoena for Information on $173 Million Purchase of 17 Buildings

“It has been reported that the City has now closed its deal to purchase 17 buildings in the Bronx and Brooklyn. I have repeatedly expressed concern regarding the $173 million price tag that, to date, has lacked any trace of transparency. My office has made multiple requests to see the appraisals and documents that support this seemingly inflated price, and the explanations provided by the City so far have raised more questions than answers. The City has refused to provide my office with all of the documents and information it relied on to make their decisions. The time for excuses is over and I am therefore issuing a subpoena for any and all appraisals and any other information supporting this deal.

“Let me be clear, converting cluster sites into affordable housing is good for New York City. I have long called for the phasing out of the cluster site program and strategic development of affordable housing – but how we get there is just as important. The difference in price between the original estimates and the final settled deal could have been used to create even more affordable housing units. New Yorkers deserve to know whether or not the City is spending their tax dollars responsibly. I am confident that our subpoena will bring these closely-guarded documents to light and provide answers as to whether or not this was a good deal for New Yorkers.”