Vincent Esposito Sentenced In Manhattan Federal Court To 24 Months In Prison

And Forfeiture Of $3.8 Million For Racketeering Conspiracy

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that VINCENT ESPOSITO was sentenced today to 24 months in prison by U.S. District Judge Victor Marrero for conspiring to commit racketeering offenses with members and associates of the Genovese Crime Family of La Cosa Nostra.  Judge Marrero also imposed financial penalties, including approximately $3.8 million in forfeiture, a $20,000 fine, and restitution to be determined.  ESPOSITO previously pled guilty on April 10, 2019, before U.S. Magistrate Judge Sarah Netburn.

U.S. Attorney Geoffrey S. Berman said:  “By his own admission, for more than a decade Vincent Esposito made millions with members of the Genovese Crime Family by extorting payments, demanding kickbacks, committing fraud, and instilling fear.  Today Esposito has been sentenced to prison for racketeering conspiracy.”

According to the Indictment and statements made during public court proceedings:

La Cosa Nostra, also known as the “Mob” or the “Mafia,” operates through entities known as “Families.”  One of the Families operating in the New York City area is the Genovese Crime Family.  For years, continuing until 2017, ESPOSITO conspired with other members and associates of the Genovese Crime Family to commit a wide range of crimes to enrich themselves, including multiple acts of extortion, honest services fraud, and bribery.  Among other things, ESPOSITO directed the long-running extortion of a union official (“Official-1”) for annual tribute payments of more than over $10,000, and had a number of lower-ranking members of the enterprise collect money and convey threats to Official-1 on Esposito’s behalf.  In another extortion scheme, ESPOSITO’s co-conspirators extorted a different union official (“Official-2”) and a financial adviser (the “Adviser”) for a cut of commissions made from union investments.

At the time of ESPOSITO’s arrest, the Federal Bureau of Investigation (“FBI”) executed a search warrant on his home and seized more than $3.8 million in U.S. currency hidden throughout the residence, along with an unregistered handgun, ammunition, brass knuckles, and lists of made members of the Genovese Crime Family.  Under the terms of his guilty plea, ESPOSITO agreed to forfeit the more than $3.8 million seized by the FBI as criminal proceeds resulting from the offense. 

In addition to the prison term, ESPOSITO, 51, of New York, NY, was sentenced to three years of supervised release, and was ordered to forfeit $3,816,685.59 and to pay a fine of $20,000.

Mr. Berman praised the outstanding investigative work of the FBI, the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

Attorney General James Launches Inquiry Into Dangerous Conditions At Subway Station

Significant Flooding at Court Square Station Resulted in Individual Almost Colliding with Oncoming Train

  Attorney General Letitia James announced that her office is launching an inquiry in response to an incident at the Court Street subway station in Queens, NY whereby an individual nearly collided with a moving train because of excessive flooding in the station. In response to a letter from Senate Deputy Leader Michael Gianaris, Attorney General James is demanding that New Line Structures and Civetta Construction, the companies responsible for recent construction work at the station, produce relevant documents, including contracts, and that all documents related to work on this station be preserved.

“This is an incredibly dangerous situation that easily could have resulted in the loss of a life, and we need answers,” said Attorney General Letitia James. “These companies are hired to improve conditions without jeopardizing public safety. Yet, I am deeply concerned that instead they may have created a treacherous environment for New Yorkers in this incident. My office is looking into the companies responsible for this work because such dangerous conditions are unacceptable. And I thank Senator Gianaris for his advocacy and partnership in finding and holding accountable those responsible for this hazard.”

“As the MTA struggles to deliver on its mission for New Yorkers, this is another horrible incident that reveals the dangers subway riders face just for trying to move around our city,” said Senate Deputy Leader Michael Gianaris. “In this case, people were nearly killed due to the negligence of a private corporation which must be held to account. In situations like this, too much deference is typically afforded to faceless corporate entities to the detriment of the public and I thank Attorney General James for looking into this deplorable episode, holding these contractors accountable, and seeking whatever remedies are available for the serious damages caused.”

The incident occurred on Wednesday evening during a period of heavy rain in New York City. In a video, viewers can see an individual, who was on the subway platform at Court Square, forced off of his feet by a forceful stream of water gushing across the platform, just as a train was arriving into the station. The individual almost collides with an oncoming train because of the force of the water stream. The water stream can be seen emanating from an area of the platform that is under construction and being managed by New Line Structures and Civetta Construction. 

Attorney General Letitia James Announces Arrests Of NYC Pharmacy Owner And Managers For Stealing Millions From Medicaid

NYC Pharmacy Owner and Pharmacy Managers Face Up to 25 Years in Prison for Defrauding Medicaid in a Kickback and Drug Diversion Scheme

  Attorney General Letitia James announced the arrests of a New York City pharmacy owner and three of her managers for participating in a multi-million dollar Medicaid fraud scheme involving kickbacks and HIV drugs. Pharmacy owner Irina Pichkhadze (Pichkhadze), 34, of Queens; three of her pharmacy managers, Raymond Dieffenbacher (Dieffenbacher), 46, of Queens, Yana Dubrinskaya (Dubrinskaya), 31, of Brooklyn, and Tarlan (aka Boris) Pinkhasov (Pinkhasov), 40, of Queens; her pharmacy, Erri, Inc. d/b/a First Choice Pharmacy (First Choice Pharmacy); and two additional companies, Express Audit Prevention Corp. (Express Audit) and OTC Distributors, Inc. (OTC), were charged with crimes related to defrauding Medicaid out of more than $10 million in a kickback and drug diversion scheme through the First Choice Pharmacy located in Harlem.

“It is disturbing and deeply damaging to our society when health care professionals exploit our most vulnerable patients to steal millions of dollars reserved to provide New Yorkers with essential health care,” said Attorney General Letitia James. “We put our trust in medical providers to serve us with honesty and care, and these individuals took advantage of both that trust and our state. My office will continue to hold accountable those who forsake their professional responsibility to their patients and choose instead to use it to line their pockets with public funds.”

The four individual defendants along with First Choice Pharmacy were all charged today in Supreme Court with the crimes of Grand Larceny in the First Degree, two counts, Health Care Fraud in the First Degree, two counts, and Scheme to Defraud in the First Degree. Pichkhadze, Dieffenbacher, and Dubrinskaya were additionally charged, along with Express Audit and OTC, with various counts of money laundering in the first and second degree for allegedly knowingly conducting financial transactions designed to conceal the source of the aforementioned larceny and health care fraud. Lastly, Pichkhadze was charged with two counts of Criminal Possession of a Forged Instrument in the Second Degree for allegedly possessing two fake Department of State documents used to open bank accounts in connection with the money laundering charges. Pichkhadze, Dieffenbacher, and Pinkhasov were arraigned before Justice Gregory Carro. Dubrinskaya was arraigned before Justice Melissa Jackson. The next court date for all four individual defendants is August 1st.

Grand Larceny in the First Degree, Health Care Fraud in the First Degree, and Money Laundering in the First Degree are all class “B” felonies for which the maximum state prison sentence is 25 years. Money Laundering in the Second Degree, Criminal Possession of a Forged Instrument in the Second Degree, and Scheme to Defraud in the First Degree are, respectively, class “C”, “D”, and “E” felonies carrying maximum prison terms of 15, 7, and 4 years.

In court today, prosecutors from the Attorney General’s Medicaid Fraud Control Unit (MFCU) outlined a scheme in which the defendants, acting in concert with each other, allegedly paid or directed employees to pay cash kickbacks to Medicaid recipients in return for each patient’s agreement to fill their HIV prescriptions at Pichkhadze’s First Choice Pharmacy, located at 245 East 124th Street in Manhattan. First Choice Pharmacy in turn billed and eventually received hundreds of thousands of dollars from Medicaid for refills that First Choice Pharmacy either did not dispense to patients, a scheme known as “auto-refilling,” or were predicated on the payment of an unlawful kickback.

State law strictly prohibits all medical providers, including pharmacies, from paying or offering to pay cash kickbacks to anyone in return for the referral of medical services ultimately paid for by Medicaid.   

Prosecutors further alleged today that their investigation found that between January 1, 2013 and December 31, 2016, Pichkhadze’s First Choice Pharmacy did not purchase sufficient quantities of medication from licensed New York State drug wholesalers to justify the quantities of medication it claimed, through its billing records, to have dispensed to patients. Relying on thousands of false claims for payment filed by Pichkhadze’s First Choice Pharmacy, Medicaid and Medicaid funded managed care organizations (MCOs) in turn paid First Choice Pharmacy and the individual defendants over $10.2 million dollars to which, prosecutors allege, they were not entitled. 

Large sums of that money, prosecutors allege, were then funneled through pass through banks accounts, bearing the names of Express Audit, OTC, Minnesota Independant [sic] Drugs, and Azure Drugs., among others, and disguised as payments to pharmaceutical wholesalers. The latter two accounts were opened as assumed names for First Choice Pharmacy and in effect, prosecutors allege, the defendants funneled money back to themselves under the guise of inventory purchases.

During its investigation MFCU executed a search warrant at First Choice Pharmacy and recovered hundreds of bottles of allegedly adulterated, diverted HIV medication. State law requires pharmacies to only secure medication from licensed pharmaceutical wholesalers.

In conjunction with the criminal case, the Attorney General today also filed a civil asset forfeiture and New York State False Claims Act action against criminal defendants Pichkhadze, Dieffenbacher, Dubrinskaya, Pinkhasov, First Choice Pharmacy, Express Audit, and OTC as well as against three non-criminal defendants, Eduard Yagudayev, Janice Dieffenbacher, and Marina Pichkhadze. The asset forfeiture action and civil recovery action seeks to recover over $22 million dollars in damages from the defendants for defrauding the State Medicaid program.

The charges filed in this case are accusations. The defendants are presumed innocent until proven guilty in a court of law.

The Attorney General thanks the New York State Department of Health and Office of the Medicaid Inspector General as well as the United States Department of Health and Human Services, Office of the Inspector General (HHS-OIG) for their assistance in this investigation. The Attorney General also thanks Medicaid MCOs Amida Care and VNS Choice; pharmacy benefit managers CVS/Caremark, Express Scripts, Med Impact, and EPIC; and pharmaceutical wholesalers McKesson and DML Pharmacy Corporation for their cooperation throughout the investigation.

New Yorkers can report suspected fraud to the Attorney General’s toll-free Medicaid Fraud Hotline, at (800) 771-7755 or online at ag.ny.gov/medicaid-fraud/contact

MFCU’s investigation was conducted by Investigator Thomas Dowd with the assistance of Supervising Investigator Dominick DiGennaro and Deputy Chief Investigator Kenneth Morgan. The audit investigation was conducted by Auditor Investigator Lisandra Defex with the assistance of Principal Auditor Investigator Olga Sunitsky, New York City Regional Deputy Chief Auditor Jonathan Romano and New York City Regional Chief Auditor Thomasina Smith.

MTA Bus and Subway Town Hall on Service Improvements?

  Last night the MTA held a Town Hall on service improvements and service cuts. As you can see this scarcely attended meeting was made up of mostly MTA employees. The funny part was that one was able to enter the school, go up to the second floor where the meeting was, but one had to stop and have a metal detecting wand moved over your body before entering the auditorium.

Andy Byford the new Chief Executive Officer of the New York City Transit Authority explained that the system has to be upgraded, and streamlined for better service to its riders. He went over the current system, and explained how new changes would improve service on buses and subways. There will be changes to some bus routes which may include moving buses to different streets to speed up service, cutting down a few stops that are clustered block after block, and new subway signaling.

Assemblyman Jeffrey Dinowitz was on hand and spoke for a few minutes praising the MTA, hoping what Mr. Byford was saying helps the riding public. Afterwards a question and answer period was done with several MTA executives including Mr. Byford. Questions that were written down were asked and answered, but it seemed two different men interjected after questions were answered. When a woman tried to interject she was told she could not. At that point one could see the two men were MTA employees, and the woman was not. 

I spoke to Tim Minton who said he was the Communications Director for the MTA, and asked him two questions. The first was how was the MTA going to stop the governor, state legislature, or even the mayor from taking any monies currently going to the MTA and moving said monies elsewhere in the budget once congestion pricing begins. I used the example of the lottery where monies that use to for education were moved elsewhere once lottery money went to education. I could not get an answer that the MTA would keep the same current funding streams from the state and city.

My second question which also could not be answered was how was the MTA going to offset the lack of revenue from the Henry Hudson Bridge since it was going to be a free bridge to get Assemblyman Dinowitz to go along with congestion pricing. I said that I was told bus routes in the Bronx would be cut or eliminated to make up the loss in revenue. Again there was no answer. 

Above - Assemblyman Jeffrey Dinowitz speaks at the meeting about how the new changes will improve service, and there will no longer be a toll on the Henry Hudson Bridge.

Below - The panel with Andy Buford answered questions read by the moderator on the left. Certain MTA employees interjected after answers while the public was told they could not.

Second Annual Family Day Event - Today

Blood drive to ease summer blood shortages being held at Van Cortlandt Jewish Center

Van Cortlandt Jewish Center 2019 Summer Blood Drive

  Help stop a potential blood emergency. The Van Cortlandt Jewish Center, 3880 Sedgwick Ave, Bronx, NY 10463 is having a Summer Blood Drive on Sunday, August 4, 2019 from 9:30 AM to 2:00pm in the game room. It is being run by the New York Blood Center.

The summer is always a time when blood banks are low on supplies. You can help by donating. Everyone that gets screened gets a $10 Dunkin’ gift card and high school students, 16 to 19 are eligible for an additional $15 gift card.

To sign up, please call Stu at 646-240-1279. You can also sign up through the form accessible via the VCJC website at https://vcjewishcenter.org/vcjc-blood-drive-august-4/ (https://donate.nybc.org/donor/schedules/drive_schedule/271054). Sign-ups are preferred, but walk-ins are always welcome.

Donor requirements are – Bring your donor card or ID with photo. Eat well and drink fluids before donating. You must be at least 16 to donate and between 16 and 18 you must have a parental permission on NYBC form. Donors over 76 need a doctor’s note, unless NYBC has a previous note and your health status has not changed. You cannot have had a new tattoo in the past 12 months, unless the tattoo was done in NJ. The minimum weight is 110 pounds.

WILLIAMS CALLS FOR NYPD COMMISSIONER TO FIRE DANIEL PANTALEO

   Public Advocate Jumaane D. Williams today sent a letter to NYPD Commissioner James P. O'Neill reiterating his calls for the firing of Officer Daniel Pantaleo, just after the five year anniversary of the day he killed Eric Garner. Calls to fire Pantaleo have re-ignited after the Department of Justice, under Attorney General William Barr, announced it would not bring federal civil rights charges against the officer.

Full text is below, and the letter can also be downloaded here.  

LETTER FROM PUBLIC ADVOCATE WILLIAMS

Dear Commissioner O'Neill,

As you know, five years ago, Eric Garner was killed by a member of the NYPD who used a prohibited tactic - the chokehold. As you also know, Mr. Garner repeated, several times, the phrase, "I Can't Breathe." 

Since then, Mr. Garner's family has fought for justice, on his behalf, and we've stood shoulder to shoulder with them. They've had to watch the video of their family member's killing countless times, all the while waiting for someone - anyone - to deliver any measure of justice. That measure wasn't delivered by his continued employment with the Department, it wasn't delivered by a Grand Jury that declined to indict, and it certainly wasn't delivered by the current U.S. Department of Justice whose leader, Attorney General Barr, overruled several members of his own team by declining to press civil rights charges. 

Simply put, five years is too long to wait. This letter serves as an official request from my office to fire Officer Pantaleo, now.

Sincerely,

 

Jumaane D. Williams
Public Advocate for the City of New York

Engel Votes to Raise Federal Minimum Wage to $15 an Hour

  Congressman Eliot L. Engel, a top member on the House Energy and Commerce Committee, today voted in favor of raising the federal minimum wage to $15 dollars an hour.

The Raise the Wage Act would increase wages for 33 million American workers, according to the Economic Policy Institute, by incrementally raising the federal minimum wage to $15 dollars an hour by 2025. Analysis by the Congressional Budget Office (CBO) concluded the legislation would lift 1.3 million Americans out of poverty, including 600,000 children, and would help narrow the gender pay gap for nearly 20 million women. Engel, who is an original cosponsor of the Raise the Wage Act, has been a longtime advocate for increasing the federal minimum wage to $15 dollars an hour and was a vocal supporter of New York’s efforts to raise their minimum wage as part of the 2016-2017 state budget.  

“This is about treating the American worker fairly at a time when corporate interests have run amok,” Engel said.“Working men and women who earn the federal minimum wage are barely hanging on as costs rise across the board for food, housing, medical care, you name it. While these working families are struggling to make ends meet, big corporations are basking in record profits with CEOs and shareholders reaping the rewards. We need to rebalance the scales here. Raising the federal minimum wage isn’t just the right thing to do from an economic justice perspective—it’s also the right thing to do for our economy. More money in the pockets of American workers means more money staying in the community, flowing to local business. States like New York, which have already raised their minimum wage, have proven that this tack works. I was proud to cosponsor and vote for this bill, and I hope our Senate colleagues will join us in standing up for working-class Americans.”