Comptroller Stringer: Dozens of LIRR Stations in Brooklyn and Queens are Inaccessible and Falling into Disrepair

Comptroller pens letter to LIRR expressing concerns about several station rehabilitation and accessibility projects that are over budget, behind schedule, and deficient

Requests information on the reduced-fare Atlantic Ticket pilot and whether local LIRR stations are being upgraded to accommodate increased ridership

The City was required to pay the Metropolitan Transportation Authority $97.4 million in FY19 for the operation and maintenance of local commuter rail stations

  Spotlighting deteriorating conditions and inaccessibility challenges that inhibit seniors, young children, and people with disabilities at Long Island Rail Road (LIRR) stations in Brooklyn and Queens, New York City Comptroller Scott M. Stringer sent a letter to LIRR President Phil Eng seeking a comprehensive timeline for the agency to meet its commitment to comply with the Americans with Disabilities Act (ADA) upgrades at 18 Queens and 2 Brooklyn stations. The letter also requested a concrete roadmap regarding station rehabilitation plans at Hollis and Hunters Point Avenue, the construction of new stations in Elmhurst and Sunnyside, and the installation of elevators at Murray Hill, Nostrand Avenue, and St. Albans. Comptroller Stringer’s office has received frequent complaints from local residents and passengers about deteriorating conditions at these stations including old and faded signage, malfunctioning ticket machines, excessive litter, unsanitary conditions, and broken platform surfaces, as well as a lack of elevators or ramps.

“Maintaining and providing equitable access to our public transit system is critical to building a city that works for every New Yorker. The LIRR stations in Queens and Brooklyn should be providing fast, frequent, reliable, and affordable transit to hundreds of thousands of New York City residents living beyond the subway’s reach. Instead, far too many are underutilized, inaccessible, deteriorating, and locked behind an exorbitant pay wall,” said New York City Comptroller Scott M. Stringer. “This issue isn’t just about basic maintenance – it’s an issue of fairness. Behind every motionless elevator or deteriorating station there are New Yorkers who can’t travel. There are people who can’t make it to school or the doctor or a job interview. We need to improve mobility and job access throughout the five boroughs, and that means we need to invest in our commuter rail stations, dramatically reduce in-city fares on the LIRR and Metro-North, allow free transfers to the subway and bus, and increase off-peak frequencies.

To read Comptroller Stringer’s letter to LIRR, click here.

To read Comptroller Stringer’s comprehensive plan for opening up the commuter rail system within New York City, (October 2018) click here.

State Senator Alessandra Biaggi visits Evergreen Garden

  State Senator Alessandra Biaggi visited Evergreen Gardens in the Soundview section of her district Friday Night to hear what residents had to say. Local political gadfly Michael Beltzer who went around with Senator Biaggi door to door was thanked as Senator Biaggi heard tenants problems. We however saw several problems such as the broken ceiling tile and what appears to be mold around the openings a few feet away from where Senator Biaggi was (pictured above).

When Senator Biaggi arrived she gave a quick review of what was done this year in the state legislature, introduced her staff and then asked residents for any problems. 

Problems raised by the tenants of Evergreen Gardens were that of the removal of a BX 5 bus stop, new housing in the area, lack of parking, security in the building floors and and stairwells, upkeep of the grounds. activity in the nearby area and park that needs police action, and getting repairs done since the management office was moved out of the complex to Melrose Avenue (but no specific items were mentioned).  

Senator Biaggi asked if any other elected official had visited the complex, and she was told her predecessor Senator Klein had installed new peep holes in their doors. She was also told that Assemblyman Crespo and Councilman Salamanca were aware of the problems. She also asked the two police officers (P.O Luna, and P.O. Torres) of the 43rd precinct about the deployment of the officers of the 43rd precinct, and P.O. Luna replied that they were not the area NCO officers, and the senator would have to speak to the commanding officer of the precinct.

When asked about an adult fitness program started under Senator Klein she said anything that was funded under Senator Klein will continue to be funded by her. The issue of Thanksgiving turkeys then came up, with Senator Biaggi said she gave out one-hundred turkeys last year in November 2018 before she was sworn in. her staff was very helpful in taking down notes and giving advice, but when leaving there were some tenants who were skeptical of getting any results.

Above - Senator Biaggi speaks to the people in the community room of Evergreen Gardens.

Below - Police officers Luna and Torres from the 43rd precinct were present to hear any problems that the precinct might have to handle. A loose ceiling tile can be seen behind the officers, along with what appears to be mold growing in the top corner. 

Above - On the right side of the room loose ceiling tiles can be seen, along with what appears to be mold.

Below - Another area of the community room has paint peeling from the area next to this pole.

It appeared that Senator Biaggi and her staff were missing the larger problems in Evergreen Gardens that should have been very obvious to them in the room they were in. That being loose or falling ceiling tiles, peeling paint, and probable mold growing around the room.

Owner Of Consumer Products Testing Company Arrested For Fraud Scheme Involving Fabricated Test Results

Former Executives and Supervising Laboratory Technician Have Pleaded Guilty in Multi-Million Dollar Scheme

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Catherine A. Hermsen, Director of the United States Food and Drug Administration (“FDA”) Office of Criminal Investigations (“OCI”), William F. Sweeney, Jr., Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Kevin Gilleece, Acting Rockland County District Attorney, announced that GABRIEL LETIZIA, Jr., the owner and executive director of AMA Laboratories, Inc. (“AMA”), a consumer products testing company in New City, has been charged with  wire fraud and conspiracy to commit wire fraud in connection with his participation in a scheme to defraud AMA’s customers by reporting false laboratory test results.  Letizia was arrested this morning and was presented and arraigned this afternoon before Magistrate Judge Paul E. Davison in White Plains federal court.  The case is assigned to U.S. District Judge Kenneth M. Karas.

U.S. Attorney Geoffrey S. Berman said: “AMA Laboratories, a consumer products testing company, tested consumer products for other companies that relied on AMA for genuine, accurate test results in order to safely bring their products to the consumer market. Unbeknownst to them, AMA’s owner, Gabriel Letizia, and others were engaged in a scheme to falsify those crucial test results by testing their products on far fewer panelists than they reported. Letizia and his co-defendants’ scheme not only cost the victim companies millions, they endangered the safety of thousands of consumers.”

Director, FDA Office of Criminal Investigations Catherine A. Hermsen said: “Honest reporting of product testing is vital for ensuring the safety of drugs and cosmetics for U.S. consumers. When companies and individuals engage in criminal activity that puts the public health at risk, FDA will work to investigate and bring them to justice.”

Acting Rockland County District Attorney Kevin Gilleece said:  “As if enriching themselves through theft and fraud wasn't bad enough, the 30-year scheme perpetrated by these individuals may have had a deleterious impact on the health and wellness of countless victims. Letizia and his employees broke the law and violated the ethical duties owed to their customers and volunteers. The teamwork exhibited by all participating agencies throughout the joint investigation that began with the Rockland County District Attorney's Office was exemplary.”

According to the allegations contained in the Indictment that was unsealed today and statements made in court proceedings[1]:

AMA is a consumer products testing company in Rockland County, New York.  LETIZIA is AMA’s owner and executive director.  David Winne served as AMA’s technical director, Mayya Tatsene served as AMA’s clinical laboratory director, Patrycja Wojtowicz served as AMA’s associate director of clinical studies, and Kaitlyn Gold served as AMA’s supervising laboratory technician.  AMA tested the safety and efficacy of cosmetics, sunscreens and other products on specified numbers of volunteer panelists for consumer products companies. 

From 1987 through April 2017, LETIZIA and others at AMA defrauded AMA’s customers of tens of millions of dollars by testing products on materially lower numbers of panelists than the numbers specified and paid for by AMA’s customers.  LETIZIA, and AMA employees acting under his direction, sent the customers fraudulent reports, which falsely represented to the customers that AMA had tested the products on the number of panelists specified by the customers.  LETIZIA and AMA employees acting under his direction also made materially false and misleading statements about the results of the tests to AMA’s Customers.

LETIZIA, 69, of New City, New York, was charged in the Indictment with conspiracy to commit wire fraud and wire fraud.  The charges each carry a maximum prison term of 20 years.

David Winne pled guilty on May 23, 2019, before United States Magistrate Judge Judith C. McCarthy, to one count of conspiracy to commit wire fraud and one count of wire fraud.  The charges each carry a maximum prison term of 20 years.

Mayya Tatsene pled guilty on May 29, 2019, before United States Magistrate Judge Lisa Margaret Smith, to one count of conspiracy to commit wire fraud and one count of wire fraud.  The charges each carry a maximum prison term of 20 years.

Patrycja Wojtowicz pled guilty on June 12, 2019, before United States Magistrate Judge Judith C. McCarthy, to one count of conspiracy to commit wire fraud and one count of wire fraud.  The charges each carry a maximum prison term of 20 years.

Kaitlyn Gold pled guilty on June 24, 2019, before United States District Judge Cathy Seibel, to one count of conspiracy to commit wire fraud and one count of wire fraud.  The charges each carry a maximum prison term of 20 years.

The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.

Mr. Berman praised the investigative work of the U.S. Food and Drug Administration, Office of Criminal Investigations, the Federal Bureau of Investigation, and the Rockland County District Attorney’s Office.  

[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Former PCAOB Inspections Leader And KPMG Executive Director Sentenced For Scheme To Steal Confidential PCAOB Information

In Order To Fraudulently Improve KPMG’s PCAOB Inspection Results

 Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that CYNTHIA HOLDER, a former Public Company Accounting Oversight Board (“PCAOB”) Inspections Leader and KPMG Executive Director, was sentenced today to 8 months in federal prison for participating in a scheme to defraud the Securities and Exchange Commission (the “SEC”) and the PCAOB by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections, the results of which were shared with, and utilized by, the SEC in carrying out its governmental functions.  HOLDER pled guilty October 16, 2018, before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As a former employee of the PCAOB, Cynthia Holder understood the importance of the organization’s work:  to protect investors and the public by overseeing the audits of public companies.  But she undermined the Board’s and the SEC’s regulatory missions when she stole confidential inspection information and provided it to KPMG, her new employer.  KPMG, in turn, used this confidential information to cheat on PCAOB inspections.  Holder’s sentence should be an example to others that stealing confidential information and corrupting regulatory processes are crimes that this Office takes very seriously.”

According to the allegations contained in the Indictment filed against HOLDER and statements made in related court filings and proceedings:

The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms (“Auditors”) with respect to the financial statements of publicly traded companies (“Issuers”).  The PCAOB inspects the largest U.S. accounting firms on an annual basis.  As part of the inspection process, the PCAOB chooses a selection of audits performed by the accounting firm for a closer review.  Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an Auditor does not perform additional work or modify its work papers in anticipation of an inspection.  Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally.  The PCAOB transmits these Inspection Reports to the SEC, which utilizes them in carrying out its agency functions.     

KPMG is one of the largest accounting firms in the world.  In recent years, KPMG fared poorly in PCAOB inspections and in 2014 received approximately twice as many comments as its competitor firms.  By 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel such as HOLDER and HOLDER’s co-conspirator, Brian Sweet. 

KPMG’s efforts to improve inspection results, however, were not limited to legitimate means.  Instead, between 2015 and 2017, HOLDER, David Middendorf, Thomas Whittle, Jeffrey Wada, Sweet, and others worked to illicitly acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected, in an effort to game the system and improve inspection results.  For example, after Sweet began employment at KPMG, but while HOLDER was still employed by the PCAOB, HOLDER fed Sweet confidential PCAOB information about certain pending inspections.  HOLDER did so while simultaneously seeking employment at KPMG.  During the pendency of her efforts to obtain employment at KPMG, HOLDER – in violation of PCAOB rules – continued to work on KPMG inspections at the PCAOB.  Once she secured a job at KPMG, HOLDER stole valuable confidential information on her way out of the PCAOB and then passed it on to Sweet, her new boss at KPMG.     

In March 2016, HOLDER obtained the PCAOB’s confidential 2016 inspection selections for KPMG from Wada, who was still working at the PCAOB but who had recently been passed over for a promotion.  Wada – who was not responsible for KPMG inspections at the PCAOB

– accessed and stole valuable confidential information from the PCAOB and passed it on to HOLDER.  HOLDER, in turn, provided the 2016 inspection selections to Sweet, who passed them to Middendorf, Whittle, and others.  Middendorf, Whittle, Sweet, and others then agreed to launch a stealth program to “re-review” the audits that had been selected.  In order to cover up their illicit conduct, the KPMG engagement partners were given a false explanation for the re-reviews.  The stealth re-review program allowed KPMG to double-check its audit work, strengthen its work papers, and, in some cases, identify deficiencies or perform new audit work that had not been done during the live audit.

In January 2017, Wada, who had again been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to HOLDER.  At the same time, Wada provided Holder with his resume and sought her assistance in helping him to acquire employment at KPMG.  Sweet shared the preliminary inspection selections provided by Wada with Whittle and Britt, while noting that the information was only preliminary.  Whittle’s response was to ask Sweet to confirm that they would get the final list as well.

In February 2017, Wada texted HOLDER saying, “I have the grocery list. . . . All the things you’ll need for this year.”  Wada then spoke to HOLDER and provided her with the full confidential 2017 final inspection selections.  HOLDER again shared the stolen information with Sweet, who shared it with Middendorf, Whittle, and others.  Middendorf, Whittle, and Sweet agreed to inform engagement partners on the list so that extra attention could be paid to these audits in light of the forthcoming PCAOB inspections. 

In 2017, a KPMG partner who received early notice that her engagement was on the confidential 2017 inspection list reported the matter, as a result of which KPMG’s Office of General Counsel launched an internal investigation.  Thereafter, HOLDER and Sweet took a number of steps to destroy or fabricate evidence relevant to the investigation.  For example, HOLDER deleted a number of relevant text messages, emails, and documents, and said she was going to purchase a “burner phone” so her conversations could not be monitored.  Similarly, Sweet burned evidence of the 2017 inspection list and provided a falsified version of the list to KPMG counsel.

In addition to a prison term, HOLDER, 53, of Houston, Texas, was sentenced to 2 years of supervised release. Restitution amount was deferred to a later date.

Mr. Berman praised the investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission, which has brought an administrative proceeding against Holder. 

DEA Agent And International Narcotics Trafficker Each Plead Guilty In Connection With Decade-Long Narcotics Conspiracy

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FERNANDO GOMEZ and JOSE MARTINEZ-DIAZ, a/k/a “Tony Zinc,” pled guilty in Manhattan federal court to charges related to a decade-long narcotics conspiracy.  GOMEZ, who was an active agent with the Drug Enforcement Administration (“DEA”) until his arrest in December 2018, pled guilty today to a narcotics conspiracy involving the distribution of cocaine.  As part of his plea, Gomez agreed that he supplied guns to MARTINEZ-DIAZ.  MARTINEZ-DIAZ pled guilty on July 29 to his participation in a racketeering conspiracy involving the enterprise known as La Organizacion de Narcotraficantes Unidos (“La ONU”).  As part of his plea, MARTINEZ-DIAZ agreed that his participation in the enterprise involved the distribution of at least 450 kilograms of cocaine and two attempted murders. 

U.S. Attorney Geoffrey S. Berman said:  “DEA Special Agent Fernando Gomez violated the very laws he swore to enforce.  Rather than uphold the nation’s drug laws, for over a decade he helped a major drug trafficker, Jose Martinez-Diaz, get away with his crimes. This case exemplifies the enduring commitment of this Office, along with our law enforcement partners, of preserving the highest degree of integrity for law enforcement from within. And with the guilty pleas of Gomez and Martinez-Diaz, justice will now be served.”

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

GOMEZ, while working as a detective with the City of Evanston Police Department in Illinois, transported firearms to Puerto Rico and provided those firearms to MARTINEZ-DIAZ.  After joining the DEA, GOMEZ helped members of the narcotics conspiracy, including MARTINEZ-DIAZ, evade detection by law enforcement.    

La ONU was a criminal enterprise involved in the trafficking of cocaine from Puerto Rico to the Bronx, New York.  The cocaine was distributed in New York, including out of a daycare center in the Bronx, New York.  Members and associates of La ONU also engaged in acts of violence, including murder, to protect and expand the enterprise’s criminal operations and in connection with rivalries with other criminal organizations. 

MARTINEZ-DIAZ was a high volume cocaine trafficker who supplied La ONU members with drugs that were transported from the Dominican Republic.  La ONU further distributed the cocaine, including in the Southern District of New York.  Martinez-Diaz smuggled the narcotics from the Dominican Republic, usually by boat.  In connection with his membership in La ONU, Martinez-Diaz was involved in the distribution of over 5,000 kilograms of cocaine.

Martinez-Diaz funded and assisted La ONU in its fight against its rival, La Rompe ONU.  For example, Martinez-Diaz provided money to La ONU members to purchase firearms.  In addition, Martinez-Diaz and others created a fake Puerto Rico Police Department patrol car. Members of La ONU used the fake patrol car to harass and intimidate members of La Rompe ONU, and to conduct shootings. 

In or about 2007, Martinez-Diaz ordered a shootout in Puerto Rico.  The target of the shootout was shot but survived.

On another occasion, Martinez-Diaz paid an individual $5,000 in connection with the attempted murder of a rival drug dealer. 

FERNANDO GOMEZ, 42, of Chicago, Illinois, pled guilty to one count of participating in a narcotics conspiracy involving the distribution of cocaine, which carries a maximum sentence of 20 years in prison.  MARTINEZ-DIAZ, of San Juan, Puerto Rico, pled guilty to one count of participating in a racketeering conspiracy, which carries a maximum sentence of 20 years in prison.  Sentencing for GOMEZ is scheduled for November 21, 2019; sentencing for MARTINEZ-DIAZ is scheduled for November 26, 2019 at 3:30 p.m.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendants will be determined by the judge.

Mr. Berman praised the outstanding investigative work of United States Postal Inspection Service, DEA, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice Office of the Inspector General, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

Second Former NYPD Officer Sentenced To Federal Prison For Social Security Disability Fraud And Tax Evasion

Gerard Scparta Fraudulently Collected More Than $630,000 in Social Security Disability Benefits over a Period of 20 Years by Pretending to be Disabled, When in Fact He Was Earning Over $1.6 Million Working at a Strip Club in Manhattan and Engaging in Tax

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GERARD SCPARTA, a former New York City Police Department (“NYPD”) officer, was sentenced today to 18 months in prison for fraudulently obtaining over approximately $630,000 in disability benefits from the Social Security Administration (“SSA”) and underreporting income on his taxes by approximately $268,000.  At the same time SCPARTA was fraudulently collecting disability benefits, he earned a total of approximately $1.6 million working as a security guard and host at a strip club (the “Strip Club”) located in Manhattan.  SCPARTA was sentenced by U.S. District Judge Alison J. Nathan, before whom he had previously pled guilty to tax evasion and theft of government property.

Earlier this year, in a related case also involving a former NYPD police officer and New York City Fire Department (“FDNY”) firefighter, SCOTT MARAIO was sentenced to one year and one day in prison on January 23, 2019 by U.S. District Judge Sidney H. Stein for fraudulently collecting over approximately 360,000 in Social Security benefits over a period of ten years by lying repeatedly to the SSA about his purported inability to work due to disability, when he also worked at the Strip Club and in other employment.  

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Gerard Scparta, a former NYPD officer, illegally collected over $630,000 in disability benefits by claiming that he could not work in any capacity due to anxiety and depression.  During the very same time period, Scparta felt well enough to earn over $1.6 million working at a Manhattan strip club. Gerard Scparta perverted the Disability Insurance system for his own personal gain, depleting a system intended for people with legitimate claims who depend on those benefits for their well-being.  For his reprehensible conduct, Scparta has been sentenced to federal prison and will trade velvet ropes for steel bars.”  

According to documents filed in Manhattan federal court:

The SSA administers Social Security Disability Insurance (“SSD”), a federal benefits program that provides monthly cash benefits to individuals who have worked in the past and paid into Social Security, but who can no longer engage in any substantial gainful activity due to medical disabilities.  SSD is a disability benefit available only to individuals who have a qualifying disability and are unable to work in any profession.  In order to receive SSD, a beneficiary must certify that he or she is incapable of performing any gainful activity due to disability.  In addition, a beneficiary must report to the SSA all sources of income from work activity and any changes in the beneficiary’s medical condition, which are taken into account in determining whether the beneficiary is entitled to payments and the amount of those payments.

GERARD SCPARTA  

Between in or about 1986 and in or about 1997, SCPARTA worked as a police officer with the NYPD.  In or about 1997, after reportedly sustaining an injury at the age of 32, SCPARTA was referred to an individual (“CC-1”) who helped him fraudulently obtain disability benefits.  Specifically, CC-1 submitted SSD application materials signed by SCPARTA that falsely stated, among other things, that SCPARTA suffered from severe depression and anxiety, could not do anything around his house, and was unable to work in any capacity.  In addition, CC-1 coached SCPARTA to make the same false statements to physicians who examined SCPARTA for the purpose of establishing his disability and submitting reports to the SSA.  For example, in one examination by a physician, SCPARTA pretended that he did not know where he was, could not remember the last four vice presidents, and had trouble repeating numbers that were told to him.  Based on these false statements and representations by SCPARTA in documents and reports submitted to the SSA, the SSA approved SCPARTA to receive disability benefits from in or about 1997 onward.

In addition to lying about his disability status and inability to work, SCPARTA falsely claimed on multiple forms submitted to the SSA that he did not work, and failed to report earnings from employment as required.  In fact, from in or about April 2004 up to and including at least in or about December 2017, SCPARTA worked as a security guard and host at the Strip Club.  From in or about 1997 up to and including in or about 2017, SCPARTA received a total of over approximately $638,000 in disability benefits for himself, his wife, and his children, while at the same time SCPARTA earned approximately $1.6 million from his work at the Strip Club. 

Further, from in or about 2012 up to and including in or about 2017, SCPARTA engaged in tax evasion by concealing and attempting to conceal from the IRS the nature and extent of his income.  Specifically, SCARPTA utilized a nominee company registered to his wife to report income that SCPARTA earned from the Strip Club and falsely underreported that income by a total of approximately $268,602 for the tax years 2012 through 2016.

SCOTT MARAIO

From in or about 1985 through in or about 1986, MARAIO worked as an NYPD police officer.  Beginning in or about July 1987, MARAIO began working as a firefighter with the FDNY.  In or about January 2002, at the age of 37, MARAIO stopped working as a firefighter due to a claimed disability, and began receiving disability benefits.  On multiple forms submitted to the SSA, MARAIO falsely claimed he could not work due to problems with his neck and back and failed to report earnings from employment as required.  In fact, from in or about September 2008 through in or about August 2014, MARAIO worked as a security guard at the Strip Club.  In addition, from in or about July 2012 through at least in or about February 2018, MARAIO worked for a staffing company (the “Staffing Company”) in various positions relating to fire safety on construction sites, including as a fire safety manager and fireguard.  From in or about October 2008 through in or about February 2018, MARAIO received a total of over approximately $364,000 in disability benefits for himself, his wife, and his children, while at the same time MARAIO earned a total of approximately $450,000 from his employment at the Strip Club and with the Staffing Company. 

In addition to his prison sentence, SCPARTA, 54, of Campbell Hall, New York, was sentenced to 3 years of supervised release and ordered to make restitution in the amount of $726,517 and to forfeit the $638,586 in Social Security disability benefits he obtained fraudulently.

MARAIO, 54, of Staten Island, New York, was also sentenced to three years of supervised release and ordered to pay restitution and forfeiture of $364,040.

Mr. Berman praised the outstanding investigative work of the United States Social Security Administration, Office of the Inspector General, and the Internal Revenue Service, Criminal Investigation Division.  Mr. Berman also thanked the Manhattan District Attorney’s Office and the New York City Department of Investigation for their assistance with the investigation.   

Comptroller Stringer Audit Reveals DYCD Improperly Altered Site Visit Reports on Crisis Shelters for Runaway Homeless Youth

NYC Department of Youth and Community Development (DYCD) altered more than one-third of the site visit reports it provided to the Comptroller

DYCD first approved incomplete and inconsistent reports and then changed them for the audit

 New York City Comptroller Scott M. Stringer released a disturbing new audit that revealed that the New York City Department of Youth and Community Development (DYCD) improperly altered more than one-third of the 93 site visit reports it had filed for seven crisis shelter locations for runaway and homeless youth in Fiscal Year 2017 before providing them to the Comptroller’s auditors. The audit also found that the agency failed to adequately monitor the shelters and accurately report the results of its site visits to check on the shelters’ performance in working with vulnerable youth. DYCD is the agency tasked with supporting New York City’s young people and their families through community-based programming.

The audit revealed that a DYCD manager initially approved subordinates’ incomplete and inconsistent site visit reports, which were later revised and reapproved by the manager after the auditors requested them. The audit also found that DYCD failed to send a large majority — 79 percent — of the sampled site visit reports back to the crisis shelters to alert the operators to improvements needed in their efforts to serve runaway and homeless youth.

In addition, the audit found that DYCD’s reports covering their Fiscal Year 2017 site visits did not identify the specific case files they reviewed during 91 percent of their case-management visits to the youth crisis shelters or the specific personnel files they reviewed in 96 percent of their administrative visits. The absence of that kind of specific information hinders DYCD’s ability to effectively monitor the shelters’ performance. In that regard, the audit also revealed deficiencies in some shelters’ performance in obtaining timely background clearances for their employees, including criminal history checks, and in ensuring that their staff met training requirements.

“The young people who need our help the most should be able to count on full and honest support from the City, but our audit found inadequate supervision, altered records, and shifting explanations at the agency that exists to help them. When it comes to runaway and homeless youth, we can’t be absent and we can’t hide the truth to shirk our responsibilities. DYCD sets a terrible example by giving us altered records and obscuring the facts, which ultimately only magnifies its own failures,” said New York City Comptroller Scott M. Stringer. “Our job is to hold City government accountable, so we constantly challenge agencies to raise their game for the New Yorkers we all serve. But that’s impossible if we can’t count on honesty from the City agencies we review. We do this work to protect our young people – that mission shouldn’t be undercut by adults. I’m calling for uncompromising accountability and transparency from the top down.”

DYCD protocols call for the agency to monitor crisis shelter service providers by mandating that DYCD’s program managers working with runaway and homeless youth conduct monthly site visits to the contracted facilities providing services. These inspections ensure the shelter service providers are operating safe and supportive environments that meet contractual obligations and comply with applicable regulations.

Comptroller Stringer’s audit of DYCD’s oversight and monitoring of the Runaway and Homeless Youth (RHY) crisis shelter providers found:

• DYCD did not have adequate controls over its own monitoring of the contracted RHY crisis shelters, hindering the agency’s ability to ensure that the services for which it contracts were properly provided to the City’s vulnerable young people.
• DYCD altered and “reapproved” more than one-third of the site visit reports it had previously completed, approved, and filed, after the Comptroller’s auditors requested the reports as part of the Comptroller’s audit.
• The DYCD manager responsible for overseeing the program mangers’ work initially approved the site visit reports without properly reviewing them to verify that the site visits were appropriately conducted and the results were adequately documented showing whether the crisis shelters were compliant with key performance indicators.
• The agency failed to send 79 percent of the sampled site visit reports back to the crisis shelter providers to alert them to improvements needed.

Comptroller Stringer’s audit recommended a series of measures to ensure that DYCD properly supervises and monitors its staff and that its site visits to its contracted youth crisis shelters are adequate, properly performed, and accurately reported. Those steps are necessary to ensure that the shelters operate in compliance with applicable standards and regulations for the protection and well-being of vulnerable young people they serve. The recommendations included:

• DYCD should properly and timely supervise its site visits to the youth crisis shelters and ensure that the reported results are complete and accurate. DYCD’s supervision should include discussions with its staff and if necessary supervisory follow-up visits to the shelters to ensure they provide adequate services to runaway and homeless youths.
• DYCD should require its staff to provide detailed documentation on the personnel and youth-case files they review during site visits to the shelters to ensure that the service providers meet contractual and regulatory requirements.
• DYCD should remind the crisis shelter service providers to obtain required clearances for all prospective employees before their start dates, or in instances where pre-employment clearances cannot be obtained, to ensure that the employees have no unsupervised contact with youths until the clearances are received.
• DYCD should adequately review the service providers’ records to confirm that the required clearances are obtained timely and that providers ensure that employees have no unsupervised contact with youths until such clearances are obtained.

To read Comptroller Stringer’s audit of DYCD’s crisis shelter programming, click here.

Bronx Democratic County Judicial Convention and County Committee Call

  It was a usual Bronx Democratic County Judicial Convention. Three judges were either nominated or renominated for their positions. The three judges in the photo above are surrounded by the Executive Committee of the Bronx Democratic County organization. Judge Wilma Guzman was renominated for her position, Judge Bahaati Pitt was nominated to replace retiring Judge Torres, and Judge John Higett was also nominated for the third vacancy. All three judges were nominated unanimously. 

It was then off to the County Committee call to discuss aa few rule changes submitted by the Rules Committee. 

State Senator Jamaal Bailey Chair of the Rules Committee goes over the minor changes to the Bronx Democratic County rules. He was interrupted by County Committee member Michael Beltzer below with a Point of Order.

After wards Bronx Democratic County Leader Marcos Crespo thanks the Rules Committee for their work, and talks about his years as Chair, and how the BDCC is transparent and listens to its members.