Wednesday, December 11, 2019

Free Legal Workshop: Forming Your Business & Tax Considerations


LIVE.     WORK.     SHOP.     THRIVE. 


Join us. The Holidays are around the corner, make sure you go into the new year with expert advice on how to form your business! 

In partnership with the Bronx Chamber of Commerce and Debevoise & Plimpton LLP, join us for a free legal workshop hosted here at the HUB. The workshop will consist of a free legal presentation on how to choose the right structure for your small business, followed by brief one-on-one sessions with a lawyer! If you have a general legal question regarding your business' taxes or legal structure, you won't want to miss out on this opportunity for a free one-on-one session with an experienced lawyer
!

 

15 Defendants Charged In Manhattan Federal Court For $18 Million Fraud Scheme


  Geoffrey S. Berman, United States Attorney for the Southern District of New York, Dermot Shea, the Commissioner of the Police Department for the City of New York (“NYPD”), Philip R. Bartlett, the Inspector-in-Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Patrick Freaney, the Assistant Special Agent-in-Charge of the New York Field Office of the United States Secret Service (“USSS”), and Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced the unsealing today of a criminal Complaint charging 15 defendants with conspiracy to commit wire fraud and bank fraud.  Four defendants were arrested today in the District of Maryland, the District of Columbia, and the Eastern District of Virginia, and were to be presented today in those districts’ federal courts.  One defendant is in state custody and will be presented at a later date.  Ten defendants remain at large.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, these defendants conspired to steal millions of dollars by stealing identities, opening fictitious bank accounts, and depositing stolen checks – or conning victims to wire funds – into those accounts.  All told, as alleged, the scheme netted more than $18 million and victimized numerous individuals and businesses.  Thanks to the combined efforts of our law enforcement partners, the game is up.”
NYPD Commissioner Dermot Shea said:  “This case shows that as criminals move into the areas of cyber-related frauds, law enforcement is following.  I want to thank the members of the NYPD’s Financial Crimes Task Force, working alongside our federal partners and prosecutors in the U.S. Attorney’s office, in the Southern District, for their success today in this important investigation.”
USPIS Inspector-in-Charge Philip R. Bartlett said:  “This Case is an excellent example of interagency cooperation and collaboration.  Those who choose to break the law will be swiftly brought to justice to answer for their crimes.”
USSS Assistant Special Agent-in-Charge Patrick Freaney said:  “The success of this investigation illustrates the commitment of the U.S. Secret Service in working with our law enforcement partners to confront the continued threat of cyber enabled financial crimes.  The Secret Service remains dedicated in actively pursuing those whose actions threaten the financial security of individuals, businesses, and the financial infrastructure of the United States.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said:  “As alleged in the criminal complaint, these 15 defendants used an elaborate bank and wire fraud scheme to steal over $18 million from victim.  HSI New York will continue to work tirelessly to investigate criminals who target our citizens.  Through our law enforcement partnerships, to include the NYPD, USPIS and USSS as well as the prosecutors at the U.S. Attorney’s Office, Southern District of New York, HSI will work to help maintain the integrity of our financial systems.”
As alleged in the criminal Complaint:[1] 
OLADAYO OLADOKUN, FAROUK KUKOYI, BALDWIN OSUJI, HENRY OGBUOKIRI, JOSHUA HICKS, ANTHONY LEE NELSON, DERRICK BANKS, IBRAHIIMA DOUKOURE, JAMAR SKEETE, PAUL YAW OSEI JR., KOWAN POOLE, DARREL WILLIAMS, DARYL BARTLEY, GARNET STEVEN MURRAY-SESAY, a/k/a “Steven Garnet Murray-Sesay,” and ANDREW HEAVEN participated in an $18 million fraud scheme consisting of three key phases.  First, members of the conspiracy opened more than 60 business bank accounts using the real personal identifying information, including names and social security numbers, of identity theft victims.  Second, members of the conspiracy deposited money into these bank accounts that they obtained by defrauding victims.  Third, members of the conspiracy accessed the fraud proceeds by transferring the proceeds into other bank accounts or by withdrawing cash. 
Members of the conspiracy typically defrauded their victims in one of two ways.  In some instances, members of the conspiracy deposited stolen or forged checks.  For example, members of the conspiracy obtained three checks that had been mailed by a national sports league from New York, New York, and deposited those stolen checks into bank accounts that were opened in the names of the intended recipients.  In other instances, members of the conspiracy deceived victims into making electronic transfers.  For example, a member of the conspiracy posing as a victim’s financial adviser caused the victim to wire money from a bank branch in New York, New York, to a bank account controlled by members of the conspiracy. 
To date, law enforcement has identified more than 100 fraudulent transactions in furtherance of the scheme, totaling more than $18 million. 
All defendants – OLADOKUN, 46, KUKOYI, 33, OSUJI, 31, OGBUOKIRI, 32, HICKS, 24, NELSON, 28, BANKS, 27, DOUKOURE, 61, SKEETE, 36, OSEI, 32, POOLE, 29, WILLIAMS, 62, BARTLEY, 58, MURRAY-SESAY, 35, and HEAVEN, 49 – are charged with conspiracy to commit bank fraud and wire fraud, which carries a maximum sentence of 30 years in prison.  Seven defendants – OGBUOKIRI, HICKS, BANKS, POOLE, WILLIAMS, BARTLEY, and MURRAY-SESAY – are also charged with aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Berman praised the outstanding work of the Financial Crimes Task Force of the NYPD and the USSS, the Mail Theft Team of the USPIS, and the Dark Web and Crypto Currency Group of HSI.  Mr. Berman also thanked the Washington Field Office of the USSS for its assistance in the apprehension of the defendants. 
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.

Donald J. Trump Pays Court-Ordered $2 Million For Illegally Using Trump Foundation Funds


Trump Ordered to Pay Eight Separate Charities $250,000 Each
Remaining $1.8 Million in Trump Foundation Bank Account Disbursed Among Charities
  New York Attorney General Letitia James today released the following statement after Donald J. Trump was forced to pay more than $2 million in court-ordered damages to eight different charities for illegally misusing charitable funds at the Trump Foundation for political purposes:
“Not only has the Trump Foundation shut down for its misconduct, but the president has been forced to pay $2 million for misusing charitable funds for his own political gain. Charities are not a means to an end, which is why these damages speak to the president’s abuse of power and represent a victory for not-for-profits that follow the law. Funds have finally gone where they deserve — to eight credible charities. My office will continue to fight for accountability because no one is above the law — not a businessman, not a candidate for office, and not even the president of the United States.”
As part of a resolution of the lawsuit announced on November 7th, Trump was ordered to pay $2 million, or $250,000, a piece to eight different charities. Those charities are Army Emergency Relief, the Children’s Aid Society, Citymeals-on-Wheels, Give an Hour, Martha’s Table, the United Negro College Fund, the United Way of National Capital Area, and the U.S. Holocaust Memorial Museum. Additionally, Trump was forced to reimburse his namesake foundation $11,525 for sports paraphernalia and champagne purchased at a charity gala, which was added to $1,797,598.30 already in the foundation’s bank account. The combined $1,809,123.30 was split evenly and recently transferred to the eight agreed upon charities. Each charity ended up receiving a total of $476,140.41.
Additionally, as part of the settlement, Trump was required to agree to 19 admissions, acknowledging his personal misuse of funds at the Trump Foundation, and agreed to restrictions on future charitable service and ongoing reporting to the Office of the Attorney General, in the event he creates a new charity. The settlement also included mandatory training requirements for Donald Trump Jr., Ivanka Trump, and Eric Trump, which the three children have already undergone. Finally, the settlement required the Trump Foundation to shutter its doors last December and dissolve under court supervision.

AG James' Statement On ExxonMobil Ruling


New York Attorney General Letitia James released the following statement after a ruling was rendered in the case of People of the State of New York v. ExxonMobil Corporation:
“As Rex Tillerson admitted at trial, all investors are entitled to the truth. For the first time in history, ExxonMobil was compelled to answer publicly for their internal decisions that misled investors. The oil giant never took seriously the severe economic impact that climate change regulations would have on the company, contrary to what they were telling the public. Throughout this case, we laid out how Exxon made materially false, misleading, and confusing representations to the American people about the company’s response to climate change regulations. Exxon’s inability to tell the truth further underscores the lies that have been sold to the American public for decades. Despite this decision, we will continue to fight to ensure companies are held responsible for actions that undermine and jeopardize the financial health and safety of Americans across our country, and we will continue to fight to end climate change.” 

BRONX MAN SENTENCED TO 25 YEARS IN PRISON FOR FATALLY STABBING FRIEND


Jury Found Defendant Guilty of First-Degree Manslaughter 

  Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to 25 years in prison for fatally stabbing his friend in 2016. 

 District Attorney Clark said, “The defendant killed his friend, a father of one, by stabbing him on a crowded street. I hope the sentence imposed today brings some peace to the victim’s family, especially the victim’s mother who took the stand during the trial and recounted the most difficult experience a mom can go through: hearing of her son’s death and identifying his body.” 

 District Attorney Clark said the defendant, Eric Ortiz, 57, of 2295 Grand Concourse, was sentenced today to 25 years in prison and five years post-release supervision by Bronx Supreme Court Justice Michael Gross. A jury found the defendant guilty of first-degree Manslaughter on March 22, 2019. 

 According to the investigation, at about 8 p.m. on March 1, 2016, in front of a cellular phone store the defendant worked in located at 332 East Fordham Road, the defendant was fighting with an individual. The victim, Christopher Cabrera, 27, who was friends with Ortiz, attempted to calm the defendant down. Ortiz became angry with the victim and stabbed him with a sharp object in the liver. Cabrera was taken to St. Barnabas Hospital and was pronounced dead about two hours after the incident.

 District Attorney Clark thanked Assistant District Attorney Paul Rosenfeld of the Homicide Bureau and NYPD Detective Michael Fassert of the 46th Precinct for their assistance in the investigation.

Bronx Borough President Ruben Diaz Jr's. Chanukah Celebration & Menorah Lighting Ceremony



MAYOR DE BLASIO, SPEAKER JOHNSON AND CITY COUNCIL ANNOUNCE THE LAUNCH OF THE INDIRECT FUNDING INITIATIVE


The initiative increases financial stability among Human Services providers; New York City becomes the first major city in the country to provide full indirect funding  

  Mayor Bill de Blasio and Speaker Corey Johnson today announced that the City has launched the Indirect Cost Rate (ICR) Funding Initiative, a groundbreaking process that will increase financial stability for human services providers, predominately nonprofit organizations. By filling out the Indirect Entryway Choice Form, providers can now take the first step towards receiving additional funding for their organizational indirect costs.

With this effort, New York City will become the first major city in the United States to commit to strengthening the health and human service infrastructure through increased indirect funding.
“Nonprofits play a critical role in uplifting our most vulnerable New Yorkers. We are excited to partner with Speaker Johnson and City Council to provide the necessary resources to ensure that health organizations can continue to deliver services for New Yorkers for generations to come,” said Mayor Bill de Blasio.

“We need to do more to help nonprofits that are providing a broad array of essential services to New Yorkers and this initiative will do just that. Community-based organizations are our partners in government but for too long, they didn’t always get the complete funding they needed for indirect services like administrative expenses and overhead costs, such as rent. In this year’s budget, the Council and the Administration created the Indirect Cost Rate (ICR) Funding Initiative, which requires the City to cover the full indirect cost of programs delivered by our CBO partners. We are so proud we reached an agreement with the providers to make sure they get their fair share. With the launch of ICR, the City is keeping its commitment to help nonprofits and allow them to continue the good work they do every day,” said Speaker Corey Johnson.

“Our nonprofit partners provide essential health and human services to millions of New Yorkers including our most vulnerable communities, and this initiative reinforces our commitment to the stability of these vital organizations,” said Deputy Mayor for Health and Human Services Dr. Raúl Perea-Henze. “I want to thank Mayor de Blasio for his leadership and Speaker Johnson and the City Council for a collaboration that has resulted in a clear process to ensure resources are available to support the financial health of our non-profit partners. This outcome shows what the Nonprofit Resiliency Committee is achieving for our communities with its focus on partnership and teamwork.”

“In the pursuit of the Mayor’s fairness agenda, the indirect initiative is a hallmark achievement.  It allows us to honor important commitments to our nonprofit human service partners and the New Yorkers they serve.  The Mayor’s Office of Contract Services is proud to be part of the implementation team,” said Dan Symon, New York City Chief Procurement Officer and Director of the Mayor’s Office of Contract Services.

The ICR Funding Initiative grew out of a partnership between the Mayor, City Council and sector leaders. It comes at a time when human service organizations are being called upon to reach more deeply into communities to help New Yorkers in need.

This announcement builds on recent steps the City has taken to ensure resiliency in the human services sector. Following a $106 million annual investment in Fiscal Year 2018, the City adopted the Health and Human Services Cost Policies and Procedures Manual in March 2019 to standardize cost definitions, indirect cost rate calculations and indirect cost rate claiming policies for health and human service contracts across all City agencies, nearly $7 billion annually. 

In June 2019 the Mayor and City Council committed to funding an adjustment to the ICR in the FY2020 Budget. This commitment was honored in the recent November Plan Update with a $54 million annual investment.

KEY FEATURES OF THE ICR FUNDING INITIATIVE:

Citywide Applicability: The funding initiative applies to health and human contracts across all City agencies, including the Department of Education, with limited exceptions.

Rate Options for Organizations of All Sizes: To accommodate providers of all sizes and levels of sophistication, there are four options for organization to establish their indirect cost rate.

Uniform and Streamlined Processes: All indirect cost rate claims and funding requests are centralized and submitted to and approved by the City’s Implementation Team (CIT). The initiative leverages existing City technology, including the HHS Accelerator and PASSPort (Procurement and Sourcing Solutions Portal) to upload, store and notify providers, City agencies and the CIT of actions taken, information needed and rate acceptance.

Generous Timeframes: Providers have over 12 months to establish and claim an indirect cost rate and make a funding request.

Retroactivity: Providers submitting claims by June 30, 2020 will receive funding retroactive to the beginning of Fiscal Year 2020. Claims received between July 1 and December 31, 2020 will be retroactive to the beginning of Fiscal Year 2021.  

Deep Provider and Agency Engagement: The ICR is a result of an unprecedented level of communication between Coalitions, Providers, and City Agencies. In response to surveys and workgroups, the City convened Technical Assistance meetings, and developed an Indirect Implementation Webpage which offers training resources, a revised Cost Manual, FAQ, videos, and webinars.
               
The City’s investments to date in the nonprofit sector have totaled over $700 million annually and have supported wage increases for employees, including a minimum wage of $15 per hour and a 9 percent increase in wages, and parity for early childcare workers, funding for indirect rates, rate enhancements for several critical programs such as homeless shelters, Beacon youth centers, and case management for senior centers.

These actions build on the Administration’s launch of the Non-Profit Resiliency Committee (NRC) in September 2016, which represented a substantial change in the City’s approach to working with nonprofit service providers, resulting in a fuller and more collaborative partnership.

“Talk of changes to “indirect cost rates” might not sound revolutionary to an ordinary bystander, but this is indeed a bright new day in New York City,” said Jennifer Jones Austin, CEO and Executive Director of FPWA. “Human service nonprofits stand with our neighbors in need, every day, at the crossroads of hope and despair, opportunity and desolation, dignity and injustice. It is their work that carries, for all of us, our humanity as New Yorkers. Yet until now they have never been provided the real resources required to sustain their operations. Today, thanks to the leadership of the Mayor, the Speaker and the City Council, we are finally on the path to resourcing these nonprofits in a way that is commensurate to their contribution to our city.  The result will be a more stable, capable, and enduring human services sector.”

MAYOR DE BLASIO, CHANCELLOR CARRANZA RENAME QUEENS ELEMENTARY SCHOOL TO HONOR HÉCTOR FIGUEROA


The Héctor Figueroa School opened at the start of the 2019-20 school year

 Mayor Bill de Blasio and Schools Chancellor Richard A. Carranza today announced the re-naming of PS 398, a Jackson Heights, Queens elementary school to be The Héctor Figueroa School. The re-naming honors the late union leader and 32BJ SEIU President who passed away earlier this year.

“Héctor Figueroa was the embodiment of the fight for fairness and justice. His legacy lives on across the entire City – from workers who now have benefits they deserve to those who continue to draw inspiration from his mission,” said Mayor Bill de Blasio. “Now, children from this school will see his name daily and learn how to take action for what is right.” 

“This school community could not have made a more perfect choice to name their school after a Jackson Heights leader who was so dedicated to equity in our schools and our workplaces. As our students learn about the world they’ll also learn that everyone’s voice deserves to be heard, just like Héctor believed deeply. I couldn’t be prouder to celebrate that and honor his legacy,” said Chancellor Richard A. Carranza.

“I am proud, and a little sad, to celebrate PS 398 taking on the name of my dear brother Héctor Figueroa,” said Kyle Bragg, President of 32BJ. “Héctor loved Queens as a place where families from all over the world learned to call each other neighbors, friends, and family. That’s why we are so glad his name and legacy will have a chance to live on in the county he called home, where he was so happy to raise his family and work to make things better for all families.”

Héctor Figueroa was an international labor movement leader and president of the Local 32BJ of the Service Employees International Union (SEIU), which represents more than 175,000 security guards, school cleaners and handypersons, doorpersons and airport workers. Figueroa was a leader in the Fight for 15, a grass-roots effort led by fast-food workers which started in New York City and grew into a nationwide campaign for a higher minimum wage. Born in Ponce, Puerto Rico, Figueroa came from a family of educators; his father was a school principal and his mother was a teacher and principal.

Open for the first time in the 2019-20 school year, The Héctor Figueroa School currently serves 117 Pre-K and Kindergarten students. The Jackson Heights neighborhood of Queens has been home to the Figueroa family for years, and will grow to serve 476 students in grades Pre-K through fifth grade. Principal Erica Ureña-Thus engaged school community in this process, which highlighted significant figures from the Jackson Heights community. Students, teachers, and families votes and decided to officially rename the school in his honor.

The state-of-the-art building is fully ADA-accessible, fully air-conditioned, and includes:

·         Art, music and science resource rooms
·         Reading and speech rooms
·         An early childhood playground and rooftop playground for upper grades
·         A gymnatorium
·         A community meeting room

The 476 seats at PS 398 The Héctor Figueroa School will help alleviate overcrowding in District 30 as part of the more than 2,100 new seats created in Queens for the 2019-2020 school year.

Senate Majority Leader Andrea Stewart-Cousins said, "Hector Figueroa dedicated his life to improving the lives of millions of New Yorkers and Americans. Hector fought tirelessly, not only for his union brothers and sisters, but also for causes like immigrant rights, social and economic justice, environmental protection, and workplace safety. This deserving honor will help ensure future generations of children will know his name and learn from his legacy of service."

“Héctor Figueroa was a champion for social justice and the rights of all people,” Assembly Speaker Carl Heastie said, “As the son of two educators, he would have been proud to know that this state-of-the-art school carrying his name will give kids in Queens a quality education and the building blocks they need for a bright future. I hope that these students will be inspired by his legacy of fighting for justice and human rights.”

“Héctor Figueroa was a giant in the labor community and a powerful voice for hard-working women and men in New York. His death was a big loss for this City but renaming PS398 in his Queens neighborhood in his honor is a fitting tribute. I look forward to seeing future students thriving at a school named after this important social justice leader and my good friend,” said Speaker Corey Johnson.