Bronx Chamber of Commerce Veterans Luncheon - Thursday November 14th

MANHATTAN U.S. ATTORNEY SETTLES FRAUD SUIT AGAINST AHERN PAINTING CONTRACTORS FOR FALSE STATEMENTS ABOUT DISADVANTAGED BUSINESS PARTICIPATION ON FEDERAL CONSTRUCTION PROJECTS

Ahern Painting Contractors Agrees to Pay $3 Million and Admits Conduct Alleged in the Complaint 

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Douglas Shoemaker, regional Special Agent-in-Charge of the United States Department of Transportation Office of Inspector General (“USDOT-OIG”), Margaret Garnett, the Commissioner of the New York City Department of Investigation (“DOI”), and Carolyn Pokorny, Inspector General of the Metropolitan Transportation Authority (“MTA-OIG”), announced today that the United States has settled civil fraud claims against New York-area painting contractor AHERN PAINTING CONTRACTORS CO. (“AHERN”). The settlement resolves the United States’ allegations in a False Claims Act lawsuit that AHERN fraudulently obtained payments on two federally funded construction projects by misrepresenting compliance with Disadvantaged Business Enterprise (“DBE”) rules, which require participation of businesses owned by women and minorities. Specifically, the United States alleged that AHERN misrepresented that co-defendant TOWER MAINTENANCE CORP. (“TOWER”), a certified DBE, was solely performing millions of dollars of work on the two projects when in fact much of that work was performed by co-defendant SPECTRUM PAINTING CORP. (“SPECTRUM”), a non-DBE. As part of the settlement approved by U.S. District Judge Deborah A. Batts, AHERN admits and accepts responsibility for conduct alleged in the Government’s complaint and agrees to pay $3 million to the United States. The case against defendants TOWER and SPECTRUM is ongoing

 Manhattan U.S. Attorney Geoffrey S. Berman said: “Contractors who exploit the Disadvantaged Business Enterprise program to unlawfully obtain millions of dollars in federal funding will be held to account. Today’s settlement reflects this Office’s commitment to root out fraud in federally funded contracts, so that legitimate minority- and women-owned businesses can participate in public construction projects.”.

 USDOT-OIG regional Special Agent-in-Charge Douglas Shoemaker said: “Today’s settlement is a positive step on the way to closing the chapter on this egregious fraud scheme involving federally funded contracts administered through the New York City Department of Transportation and the Metropolitan Transportation Authority. While the damage to the integrity of DOT’s DBE program in this instance has been done, it only serves to strengthen our resolve in pursuing those whose greed prevents the legitimate participation of disadvantaged businesses in federal contracting on public transportation projects.” 

 DOI Commissioner Margaret Garnett said: “Today’s multimillion-dollar settlement demonstrates that law enforcement has its sights on exposing fraud by companies that exploit City and Federal programs aimed at increasing the participation of disadvantaged businesses in public construction projects. DOI and its partners will continue to protect the integrity and effectiveness of these programs with investigations that uncover and deter dishonest conduct.” 

 MTA Inspector General Carolyn Pokorny said: “Disadvantaged Business Enterprise regulations enable honest competition in construction contracts by ensuring an equal and inclusive playing field for all. Today’s DBE fraud settlement highlights the commitment of the Office of the MTA Inspector General, along with all of our prosecutorial and investigative partners, towards prohibiting and rooting out discrimination.” 

As alleged in the complaint filed in Manhattan federal court on March 2, 2019, AHERN was a contractor on two federally funded steel painting projects to renovate the Brooklyn Bridge and Queens Plaza. Contracts for both projects required AHERN to hire DBEs to do a percentage of the work involved and adhere to the DBE regulations. Instead of hiring qualified DBEs to perform the allotted DBE work, AHERN allowed SPECTRUM and TOWER to use TOWER’s status as a DBE to take credit for millions of dollars of work performed, managed, and supervised by non-DBE SPECTRUM. To conceal this scheme, SPECTRUM employees repeatedly identified themselves as TOWER employees in documents that AHERN passed along to supervisors on the project. AHERN and TOWER repeatedly submitted false statements and records to NYC-DOT and MTA misrepresenting that TOWER alone did all of the work allocated to DBEs and that TOWER did not hire a subcontractor to perform any of that work.

As part of the settlement, AHERN admits, acknowledges, and accepts responsibility for conduct alleged in the complaint as described below:

 In March 2010, AHERN’s superintendent met with a TOWER manager and a SPECTRUM manager to do a walk-through of the Brooklyn Bridge worksite. AHERN’s superintendent understood that the SPECTRUM manager would assist TOWER in preparing the bid TOWER submitted for its work as a DBE subcontractor on the Brooklyn Bridge Project; o I

In documents that AHERN received from TOWER and then submitted to Skanska in 2010, TOWER identified the individual who AHERN knew to be a SPECTRUM manager as a “TOWER VP” or as a TOWER employee working on the Brooklyn Bridge Project. In documents AHERN received from TOWER and then submitted to the MTA in 2011, TOWER identified the individual AHERN knew to be a SPECTRUM manager as TOWER’s superintendent for the Queens Plaza Project;

Throughout the Brooklyn Bridge and Queens Plaza Projects, AHERN managers communicated directly with the SPECTRUM manager regarding the management and supervision of the projects, including scheduling and inspecting TOWER’s DBE work, ordering materials for TOWER’s DBE work, and payment for TOWER’s DBE work. An AHERN executive also communicated directly with SPECTRUM’s owner regarding the Brooklyn Bridge and Queens Plaza Projects.

AHERN recklessly disregarded facts showing that SPECTRUM managed and supervised TOWER’s DBE work on the Brooklyn Bridge and Queens Plaza Projects.

AHERN failed to seek clarification regarding the financial and other arrangements between TOWER and SPECTRUM or request a copy of any contract or agreement between TOWER and SPECTRUM regarding SPECTRUM’s role. If AHERN had done so, and TOWER had responded truthfully, AHERN would have learned that TOWER and SPECTRUM had entered into written agreements specifying that SPECTRUM would provide project management support and furnish equipment on the Brooklyn Bridge and Queens Plaza Projects, that TOWER and SPECTRUM would split any profits from the TOWER DBE work on the Brooklyn Bridge and Queens Plaza Projects, and that in addition to the SPECTRUM manager, two other individuals AHERN believed to be TOWER managers were in fact employed by SPECTRUM.

Mr. Berman praised the outstanding investigative work of the USDOT-OIG, DOI, and MTA-OIG.

Congresswoman Ocasio-Cortez Halloween Party

 With a line continuously down the block as children and their parents came from all directions it was questionable if Congresswoman Ocasio-Cortez would attend due to an impeachment vote in Washington, and bad weather in both Washington and New York. 

Above and Below - Children go around and play in the middle area set up waiting for AOC.

Above and Below - Congresswoman Ocasio-Cortez would make the event by the midway mark, and everyone wanted their picture with AOC.

Al Shaib Community Peace Meeting

  Al Shaib President Yaseen Shaibi tells of some of the accomplishments of guest Bronx District Attorney Darcel Clark at the monthly community meeting. DA Clark would then get up to speak about her first term as Bronx DA, and what lies ahead for her next term. DA Clark is running on the Democratic Party line with no opposition.

Above - District Leader John Perez a regular at the community meetings gives some insight as to what is going on in the area.

Below - Shiek Musa gives an overview of the job of Bronx District Attorney.

Above - Bronx District Attorney Clark took questions, here answering a question about the new no cash bail law recently passed in Albany, When questioned about repeat offenders, she said that she did not write the new laws, but has to be guided by said new criminal laws,

Below - A group photo with DA Clark.

Bronx Chamber of Commerce Halloween Party

  Early on at the Bronx Chamber of Commerce Halloween Party are (L - R) Darry Saldana, Lisa Sorin, June Eisland, Anna Reyes, Vanessa Baijnauth, and Dolores Saldana.

BRONX VETERANS DAY PARADE November 2nd

The Bronx Veterans Parade will be taking place Saturday, November 2, 2019.
Gather with the Bronx Veterans Parade Task Team at 11:00 am at the corner of Crotona Parkway & East 175th Street Bronx NY, to start marching at 12:00 Sharp!!!

Bronx Man Sentenced To More Than 12 Years In Prison For Conspiring To Distribute Narcotics On The Dark Web

Luis Fernandez Shipped Fentanyl and Carfentanil from New York to Customers Across the United States

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LUIS FERNANDEZ was sentenced to 151 months in prison for participating in a conspiracy to distribute carfentanil, fentanyl, and a fentanyl analogue over the “dark web,” and for possessing a firearm after being convicted of a felony.  Fentanyl is a synthetic opioid that is significantly stronger than heroin, and carfentanil is a fentanyl analogue that is approximately 100 times stronger than fentanyl.  FERNANDEZ was also ordered to forfeit $269,623 in narcotics proceeds.  FERNANDEZ pled guilty on July 30, 2019, before U.S. District Judge Denise L. Cote, who imposed today’s sentence. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Luis Fernandez and his co-defendant Richard Castro sold large quantities of fentanyl and carfentanil to hundreds of individuals across the country, including over the dark web.  Today’s sentence should be another clear reminder that any short-term profits from drug dealing are not worth the long-term price.”

According to the allegations in the Superseding Information to which FERNANDEZ pled guilty, public court filings, and statements made in court:

From at least in or about November 2015 through March 2019, FERNANDEZ and his co-defendant Richard Castro[1] conspired to distribute carfentanil, fentanyl, and phenyl fentanyl (an analogue of fentanyl).  For most of this period, the conspiracy dealt drugs over the dark web, using the monikers “Chemsusa”, “Chems_usa”, and “Chemical_usa.”  Castro was an operator of these online monikers and the leader of this conspiracy.  On one dark web marketplace, Dream Market, Castro boasted that he had completed more than 3,200 transactions on other dark web markets, including more than 1,800 on AlphaBay.  The customer feedback for “Chemsusa” included, “Extremely potent and definitely the real Carf,” as well as “The Carfent is unbelievably well synthesized, keep up the amazing work.”  In June 2018, Castro, using the “Chemsusa” moniker, informed customers that he was moving his business off of dark web marketplaces and would accept purchase requests for narcotics only via encrypted email.  To learn the off-market email address, “Chems_usa” required willing customers to pay a fee.  An undercover law enforcement officer paid this fee, obtained the encrypted email address, and placed orders with Castro.  Castro’s customers paid him in Bitcoin.

FERNANDEZ managed the conspiracy’s stash house, packaged narcotics, and shipped the narcotics via U.S. mail from the New York City area to hundreds of individuals throughout the United States.  For example, in early March 2019, FERNANDEZ was observed dropping several envelopes in a mailbox in Coney Island, New York; law enforcement seized and searched these envelopes, each of which contained carfentanil. 

In mid-March 2019, law enforcement searched FERNANDEZ’s residence in the Bronx, New York.  During this search, officers found, among other things, the following evidence in FERNANDEZ’s bedroom: (1) mailing labels similar to those found on packages connected to the conspiracy, (2) addresses of customers who had received packages from the conspiracy, and (3) approximately 78 grams of fentanyl analogues and 307.5 grams of u-47700 (an opioid analgesic that is approximately 7.5 times more potent than morphine).  Law enforcement also recovered a fumigation mask and rubber gloves.  In a different bedroom of FERNANDEZ’s residence, law enforcement recovered a Model R-73 handgun.  Because FERNANDEZ had previously been convicted of a felony (stemming from his sale of cocaine), he was legally prohibited from possessing this handgun.

In imposing sentence, the Court stated that the defendant played a “critical” role in the conspiracy and that he was responsible for “shipping death.”

In addition to his prison term, FERNANDEZ, 42, of the Bronx, was sentenced to four years of supervised release.

Mr. Berman praised the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the New York City Police Department for their outstanding investigative work.  Mr. Berman also thanked the Internal Revenue Service and the Orange County, Florida, Sheriff’s Office for their valuable assistance.  

[1] Castro pled guilty to money laundering and narcotics distribution conspiracy on July 25, 2019.

6 Mexican Nationals Plead Guilty To International Sex Trafficking Offenses

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EFRAIN GRANADOS-CORONA, a/k/a “Chavito,” a/k/a “Cepillo,” pled guilty today before U.S. District Judge Andrew L. Carter to sex trafficking by use of force, fraud, or coercion.  Five additional defendants in this case – JULIO SAINZ-FLORES, a/k/a “Rogelio,” JUAN ROMERO-GRANADOS, a/k/a “Chegoya,” a/k/a “El Guero,” ALAN ROMERO-GRANADOS, a/k/a “El Flaco,” PEDRO ROJAS-ROMERO, and EMILIO ROJAS-ROMERO – pled guilty to sex trafficking offenses last month before U.S. District Judge Andrew L. Carter.

U.S. Attorney Geoffrey S. Berman said:  “These defendants systematically preyed on innocent women and girls in Mexico, smuggled them into the United States, and forced them into prostitution – depriving them of their freedom and dignity.  The devastation to these victims caused by the defendants is beyond comprehension.  With the defendants’ guilty pleas, we seek to deliver justice for the victims, and to deter others from engaging in this reprehensible conduct.”

According to the allegations in the Indictment to which each defendant pled guilty, public court filings, and statements made in court: 

EFRAIN GRANADOS-CORONA, a/k/a “Chavito,” a/k/a “Cepillo,” JULIO SAINZ-FLORES, a/k/a “Rogelio,” JUAN ROMERO-GRANADOS, a/k/a “Chegoya,” a/k/a “El Guero,” ALAN ROMERO-GRANADOS, a/k/a “El Flaco,” PEDRO ROJAS-ROMERO, and EMILIO ROJAS-ROMERO, the defendants, are members of an international sex trafficking organization (the “STO”).  Many of the members of the STO are related by blood, marriage and community. 

Between at least in or about 2000 and 2016, members of the STO (the “Traffickers”) have used false promises, physical and sexual violence, threats of the same, lies, and coercion to force and coerce adult and minor women (the “Victims”) to work in prostitution in both Mexico and the United States.

In most cases, a Trafficker enticed a Victim – frequently a minor – in Mexico.  The Trafficker then used multiple means to isolate the Victim from her family.  In some cases, the Trafficker used romantic promises to induce the Victim to leave her family and live with him.  In other cases, the Trafficker raped the Victim, making it difficult for her to return to her family due to the associated stigma of the rape.  Once a Victim was separated from her family, the Trafficker frequently monitored her communications, kept her locked in an apartment, left her without food, and engaged in physical or sexual violence against the Victim.  Traffickers often told Victims that the Traffickers owed a significant debt and that the Victim must work in prostitution to assist in repaying the debt.  Traffickers typically began forcing the Victims to work in prostitution in Mexico.  Victims were often required to see at least 20 to 40 customers per day.  Traffickers monitored the number of clients a Victim saw by surveilling the Victim, communicating with brothel workers, and by counting the number of condoms provided to a Victim.  Traffickers typically required the Victims to turn over all of the prostitution proceeds to the Traffickers. 

After a Victim worked in prostitution in Mexico for some time, Traffickers typically arranged for the Victim to be smuggled into the United States.  Members of the STO assisted one another in making smuggling arrangements.  In many cases, multiple Traffickers and multiple Victims were smuggled into the United States together.  In other cases, one Trafficker remained in Mexico while arranging for a Victim to be smuggled together with another Trafficker and other Victims.

Once in the United States, the members of the STO generally maintained their Victims at one of several shared apartments in New York City.  Victims living in the same apartment were frequently forbidden to communicate with one another.  Once in the United States, Traffickers continued to use physical and sexual violence, threats of the same, lies, and coercion to force the Victims to work in prostitution. 

In most cases, the Trafficker or another member of the STO provided a Victim with contact information with which to find work.  The Victims typically worked weeklong shifts either in a brothel, or in a “delivery service.”  In a delivery service, the Victim was delivered to a customer’s home by a “driver.”  These brothels and delivery services were located both within New York and in surrounding states, including but not limited to Connecticut, Maryland, Virginia, New Jersey, and Delaware.

Generally, each customer paid $30-35 for 15 minutes of sex.  Of that, half of the money typically went to the driver (in the case of a delivery service) or to the brothel.  The other $15 went to the Victim, who was then typically forced to give all of the proceeds to the Trafficker.  When a Trafficker was unavailable, a Victim might also give the proceeds to another member of the STO.

The Traffickers then frequently sent, or had their Victims send, some of the prostitution proceeds to Traffickers’ family members and associates in Mexico by wire transfer.  Such transfers provided financial assistance to the Traffickers’ families and provided financial support to the Traffickers themselves if they returned to Mexico.   

EFRAIN GRANADOS-CORONA, 43, of Mexico, pled guilty to sex trafficking by force, fraud, and coercion, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life imprisonment.

JULIO SAINZ-FLORES, 37, of Mexico, pled guilty to sex trafficking of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment.

JUAN ROMERO-GRANADOS, 33, ALAN ROMERO-GRANADOS, 28, PEDRO ROJAS-ROMERO, 40, and EMILIO ROJAS-ROMERO, 37, all of Mexico, pled guilty to conspiring to commit sex trafficking by force, fraud, and coercion, which carries a maximum sentence of life imprisonment.

The defendants are scheduled to be sentenced by Judge Carter in early 2020.