Bronx Man Charged With 2015 Murder

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Dermot F. Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the Indictment of BRYANT BROWN, a/k/a “Trigga,” for the murder of Albendris Nunez, 21, in the Bronx, New York, on December 20, 2015.  BROWN was taken into federal custody earlier today and will be presented this afternoon before U.S. Magistrate Judge Katherine H. Parker.  This case is assigned to U.S. District Judge Paul A. Engelmayer.    

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Albendris Nunez was 21 years old when he was murdered in Devoe Park.  As alleged in the Indictment, Bryant Brown was responsible for that murder.  Thanks to our outstanding partners at the NYPD, Brown now faces federal charges for this terrible crime.”

Police Commissioner Dermot Shea said:  “Early on a Sunday, Albendris Nunez was fatally shot on the street outside a Bronx park.  Four years later, our police officers and detectives, working with our law enforcement partners, have brought justice and proven the effectiveness of our unrelenting focus on fighting violent crime."

According to the allegations in the Indictment[1]:

On or about December 20, 2015, BROWN attempted to rob Nunez in vicinity of Devoe Park in the Bronx, New York, and in the course of that robbery Nunez was murdered.

BROWN, 25, of the Bronx, New York, is charged with one count of attempted robbery, which carries a maximum penalty of 20 years in prison, and one count of using a firearm to commit murder during a crime of violence, which carries a maximum penalty of death or life in prison, and a mandatory minimum sentence of five years in prison.  The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding work of the NYPD..

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 [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.

Entrepreneur And Pharmaceutical Company Executive Convicted At Trial For Role In International Insider Trading Scheme

  Audrey Strauss, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515, announced today that TELEMAQUE LAVIDAS was convicted after a one-week trial of illegally tipping his best friend and co-defendant Georgios Nikas with inside information he obtained from his father, a member of the board of directors of a pharmaceutical company. 

Deputy U.S. Attorney Audrey Strauss said:  “As the jury concluded, Telemaque Lavidas was a key player in a long-running international insider trading scheme.  Three times he received insider information from his father about Ariad Pharmaceuticals and passed it on to his friend Georgios Nikas, a criminal pipeline that earned its participants more than $15 million in illicit profits.  Lavidas now awaits sentencing for his crimes.”  

According to the allegations contained in the Superseding Indictment and evidence presented at trial:

Athanase Lavidas, the father of TELEMAQUE LAVIDAS, was a prominent Greek businessman and was a member of the board of directors of Ariad Pharmaceuticals, Inc. (“Ariad”), a pharmaceutical company headquartered in Cambridge, Massachusetts, that developed and marketed a leukemia medication named Iclusig.  In violation of his duties of confidentiality to Ariad, Athanase Lavidas provided TELEMAQUE LAVIDAS with tips about three major corporate developments at Ariad.  On each of those occasions, TELEMAQUE LAVIDAS provided that inside information to his best friend Georgios Nikas (“Nikas”) so that Nikas could make timely, profitable trades ahead of Ariad’s public announcements.

The first tip was in October 2013, when Athanase Lavidas learned that the U.S. Food and Drug Administration (“FDA”) was concerned about potential adverse health issues for patients from Iclusig.  Athanase Lavidas contacted TELEMAQUE LAVIDAS to pass this secret information, and TELEMAQUE LAVIDAS passed that tip to Nikas, who had previously amassed a large long position in Ariad securities.  After receiving the inside information from TELEMAQUE LAVIDAS, Nikas sold his Ariad securities and took a substantial short position.  When Ariad publicly announced the patient safety issues, its stock declined by over 65% and Nikas made over $3.2 million in profits and avoided almost $800,000 in losses.  Ariad discontinued sales of Iclusig later in October.

The second tip was in November and December 2013, when Athanase Lavidas learned that Ariad and the FDA were making significant progress toward returning Iclusig to the market.  Athanase Lavidas passed this secret information to TELEMAQUE LAVIDAS, who in turn passed the tips to Nikas.  Nikas bought Ariad securities based on these tips, and when Ariad publicly announced at the end of December that Iclusig was returning to the market, its stock rose and Nikas made over $1.3 million in profits.

The third tip was in July and August 2015, when Ariad received an unsolicited takeover offer from another pharmaceutical company.  Again, Athanase Lavidas learned of the offer in his capacity as a board member, and informed TELEMAQUE LAVIDAS, who in turn passed the tip to Nikas.  Nikas again bought Ariad securities based on this tip, and when a news article was published in late August reporting on the takeover offer, Ariad’s stock rose and Nikas made over $2 million in profits.

Nikas also passed the tips he received from TELEMAQUE LAVIDAS to a series of stock traders.  In total, Nikas and the traders he tipped earned over $15 million in profits from the inside information that TELEMAQUE LAVIDAS provided.

TELEMAQUE LAVIDAS, 39, of New York, New York, and Greece, was convicted of one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud and securities fraud, three counts of substantive securities fraud under Title 15, United States Code, Sections 78j(b) and 78ff, one count of substantive wire fraud, and one count of substantive securities fraud under Title 18, United States Code, Section 1348.  The conspiracy counts carry maximum prison terms of five and 20 years, respectively; the substantive wire fraud and Title 15 securities fraud counts each carry a maximum sentence of 20 years.  The substantive Title 18 securities fraud count carries a maximum sentence of 25 years.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.

TELEMAQUE LAVIDAS is scheduled to be sentenced before Judge Cote on April 17, 2020, at 2:00 p.m.

Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and also thanked the SEC.

Manhattan Man Pleads Guilty To Child Pornography, Enticing A Minor To Have Sex

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOEL DAVIS pled guilty to enticing a child to engage in illegal sexual activity, possession of child pornography, and distribution and receipt of child pornography.  DAVIS faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison.  DAVIS pled guilty today before United States District Judge George B. Daniels.

U.S. Attorney Geoffrey S. Berman said:  “As he admitted today, Joel Davis arranged to meet a 15-year-old boy for sex, and engaged in illegal sexual activity with the 15-year-old.  He also possessed child pornography that included children under the age of 12.  Davis rightly faces a lengthy prison sentence for victimizing children.”

According to the Information and other documents filed in the case to which DAVIS pled, as well as statements made during the plea proceeding:

In or about June 2018, DAVIS used a cellphone to arrange a meeting to engage in sexual activity with a 15-year-old boy and in fact met with the 15-year-old boy and engaged in illegal sexual activity.  In addition, between at least in or about May 2018 and June 2018, DAVIS possessed images and videos of child pornography, including images of prepubescent minors who were not yet 12 years old, and received and distributed material containing child pornography using a cellphone.

DAVIS, 24, of New York, New York, pled guilty to one count of enticement of a minor under the age of 18 to engage in sexual activity, which carries a mandatory minimum term of 10 years in prison and a maximum of life in prison; one count of possession of child pornography, which carries a mandatory minimum term of five years in prison and a maximum of 20 years in prison; and one count of receipt and distribution of child pornography, which carries a maximum term of imprisonment of 20 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 defendant will be determined by the judge.

DAVIS is scheduled to be sentenced by Judge Daniels on May 7, 2020, at 10:00 a.m.

Mr. Berman praised the outstanding work of the FBI in this investigation.

BRONX MAN SENTENCED TO 17 YEARS IN PRISON FOR FATALLY STABBING ESTRANGED WIFE ON BRONX STREET

Defendant Pleaded Guilty to First-Degree Manslaughter

 Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to 17 years in prison after pleading guilty to Manslaughter for stabbing his estranged wife near a middle school in Morrisania. 

 District Attorney Clark said, “The defendant stabbed his estranged wife, with whom he shared two children, a dozen times near a middle school as students on their way to class watched in horror. He attacked her two weeks after she decided to leave him after enduring years of abuse.”

 District Attorney Clark said the defendant, Victor Garo, 48, of 1585 Townsend Avenue, was sentenced today to 17 years in prison and five years’ post-release supervision by Bronx Supreme Court Justice Bahaati Pitt. The defendant pleaded guilty to first-degree Manslaughter on November 20, 2019.

 According to the investigation, on the morning of September 25, 2017, the victim, Adalgisa Garo, 44, walked her son to school and as she returned home alone Garo jumped out of a car and yelled at her. The victim ran and the defendant chased her and stabbed her 12 times. The attack happened near a school as 12 and 13-year-old children were passing by. The defendant fled the scene and was arrested later that day in Hunts Point. The victim was stabbed in the chest and abdomen. She also had defensive wounds. The victim was taken to Lincoln Hospital where she was pronounced dead on arrival.

 District Attorney Clark thanked NYPD Detective Allan Offley of the 42nd Precinct, and NYPD Detective Patrick Flatley of Bronx Homicide for their assistance in the investigation.

MAYOR DE BLASIO AND CHANCELLOR CARRANZA ANNOUNCE RECORD HIGH GRADUATION RATE

Graduation rate rises to 77.3 percent, increases in all five boroughs as achievement gap continues to narrow

  Mayor Bill de Blasio and Schools Chancellor Richard A. Carranza today announced that New York City’s 2019 four-year high school graduation rate has reached a record high of 77.3 percent. Since the start of the administration, the graduation rate has increased 8.9 percentage points, from 68.4 percent in August 2014 to 77.3 percent in August 2019.

“I have never accepted the status quo and I certainly won’t when it comes to the future of our children,” said Mayor de Blasio. “For the sixth year in a row our record graduation rate is proving that when you invest in equity and excellence for every student in every neighborhood, success follows.” 

“New York City students continue to raise the bar and then exceed it. For the sixth consecutive year, we have achieved a record high graduation rate of 77.3 percent, and this year we are seeing that success grow across every borough and every demographic,” said Schools Chancellor Richard A. Carranza. “This isn’t happening in a vacuum—college readiness rates and postsecondary enrollment rates continue to rise, and we’re on track to achieve our goal of an 84 percent graduation rate by 2026. We’re going to continue to focus on narrowing the achievement gap and ensure that we are seeing both equity and excellence in action in our schools every day.”

Among the cohort of students who entered 9^th grade in the fall of 2015, the graduation rate rose 1.4 percentage points compared to the year prior. For the sixth consecutive year under this administration, graduation rates hit record highs, graduation success is across the board, and the achievement gap continues to narrow:

• The graduation rate was 88.2 percent for Asian students in 2019, a 0.1 point increase from 2018 and a 5.6 point increase from 2014.
• The graduation rate was 73.7 percent for Black students in 2019, a 1.6 point increase from 2018 and a 9.9 point increase from 2014.
• The graduation rate was 72.0 percent for Hispanic students in 2019, a 2.1 point increase from 2018 and a 10.6 point increase from 2014.
• The graduation rate was 85.0 percent for White students in 2019, a 0.8 point increase from 2018 and a 4.4 point increase from 2014. 

The graduation rate for Current English Language Learners (students who were identified as ELLs during the school year of their last enrollment) and Former English Language Learners  (students who had been classified as ELLs and exited ELL status within the past two school years) increased by 4.3 percentage points, rising from 57.4% in 2018 to 61.7% in 2019. When looking just at Current English Language Learners, the graduation rate increased by 6.2 percentage points since 2018, which is more than twice the gain made by the rest of the State.

There were also gains among students with disabilities, with a 2.1 percentage point increase, rising from 50.4% in 2018 to 52.6% in 2019. Since 2014, graduation rates for students with disabilities in New York City have increased by 12.1 percentage points, outpacing the gains made by the rest of the State over the past five years.

The largest improvement in graduation rates was in the Bronx, with a borough-wide record-high of 70.2%.

	Graduation
	2019 # Cohort	% 2019 Grad	% 2018 Grad	Pt. Diff
Bronx	13,891	70.2	67.4	+2.8
Brooklyn	20,385	77.0	76.6	+2.2
Manhattan	15,274	78.3	76.7	+1.6
Queens	19,788	80.7	79.5	+1.1
Staten Island	4,434	82.7	80.8	+2.0

The improvements in graduation rates reflect larger improvements in postsecondary awareness, readiness, and access across New York City public schools. Earlier this school year, Mayor de Blasio and Chancellor Carranza announced:

• The highest-ever postsecondary enrollment rate – 62 percent. A record-high 48,782 students in the Class of 2018 enrolled in college, up approximately 8,000 students since the start of the administration and approximately 3,600 students compared to the year prior.
• The highest-ever college readiness rate – 54.9 percent of all students, and 70.7 percent of graduates, in the Class of 2019 graduated high school on time and met CUNY’s standards for college readiness in English and math.
• New York City students have now outperformed their New York State peers on State ELA exams for four years in a row, after doing so for the first time in 2016. They have closed the gap with their New York State peers on State math exams, with 46 percent of students meeting proficiency standards in Math.

Together, the Equity and Excellence for All initiatives are building a pathway to success in college and careers for all students. Our schools are starting earlier – free, full-day, high-quality education for three-year-olds and four-year-olds through 3-K for All and Pre-K for All. They are strengthening foundational skills and instruction earlier – Universal Literacy so that every student is reading on grade level by the end of 2nd grade; and Algebra for All to improve elementary- and middle-school math instruction and ensure that all 8th graders have access to algebra. They are offering students more challenging, hands-on, college and career-aligned coursework – Computer Science for All brings 21st-century computer science instruction to every school, and AP for All will give all high school students access to at least five Advanced Placement courses. Along the way, they are giving students and families additional support through College Access for All, Single Shepherd, and investment in Community Schools. Efforts to create more diverse and inclusive classrooms, including Equity & Excellence for All: Diversity in New York City Public Schools are central to this pathway.

Seven High-Ranking Members Of Violent Trinitarios Gang Charged With Murder, Racketeering, And Firearms Offenses

  Geoffrey S. Berman, United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Office of the Drug Enforcement Administration (“DEA”), Peter C. Fitzhugh, Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), Keith M. Corlett, Superintendent of the New York State Police (“NYSP”), Dermot F. Shea, Commissioner of the New York City Police Department (“NYPD”), and  Margaret Garnett, Commissioner, New York City Department of Investigation (“DOI”), announced the unsealing of a federal indictment charging EDIBERTO SANTANA, a/k/a “Flaco Veneno,” MIGUEL GENAO, a/k/a “Sombra,” CARLOS RAMIREZ, a/k/a “Guerra,” DARINSO MARTE REYES, a/k/a “Cibao,” ANGEL CRISPIN, a/k/a “Secreto,” JOSE MARICHAL, a/k/a “Menor,” a/k/a “El Menol,” and ENIEL VASQUEZ, a/k/a “Dominican Flow,” with participating in a racketeering conspiracy as members of Sunset, a violent set of the Trinitarios gang.  SANTANA and RAMIREZ are charged with the October 23, 2013, murder of Michael Beltre, and SANTANA is also charged with the November 17, 2013, murder of Rafael Alam.  Six defendants were arrested today and were presented this afternoon before United States Magistrate Judge Katharine H. Parker.  The seventh defendant was already in federal custody on separate charges.  The case has been assigned to United States District Judge Paul A. Crotty.

U.S. Attorney Geoffrey S. Berman said:  “As alleged in the indictment, the defendants in this case include high-ranking members of a violent set of the Trinitarios gang known as Sunset.  The violence perpetrated by Sunset members is exemplified by the two murders charged in today’s indictment.  Thanks to the efforts of our partners at the DEA, HSI, NYPD, NYSP, and DOI, the defendants now face federal charges for these most serious of crimes.”

DEA Special Agent in Charge Raymond P. Donovan said:  “Today’s arrests reemphasize that the Trinitarios have put New Yorkers in the cross hairs of gang violence and crime.  Throughout this investigation, two murders and numerous violent crimes including assaults, robberies, and drug trafficking were uncovered.   I applaud our law enforcement partners at the U.S. Attorney’s Office Southern District of New York, New York City Police Department, New York State Police, Homeland Security Investigations, and New York City Department of Investigation for their diligent work.”

HSI Special Agent in Charge Peter C. Fitzhugh said:  “With today’s arrest of seven members of the Bronx Sunset Trinitarios, a violent sub-set of the Trinitarios National Gang, HSI New York has helped to make the Bronx safer for everyday New Yorkers.  Those arrested today used violence and intimidation to carry out their illegal activities which led to today’s charges, including racketeering, firearms offenses and murder.  HSI, along with its Federal, State and Local law enforcement partners, remain vigilant in our fight against violent gangs and are committed to ridding our city of them.”

DOI Commissioner Margaret Garnett said:  "The charges in this case demonstrate the significant threat that street gangs continue to pose to the safety of New York City neighborhoods. DOI is proud to work with our law enforcement partners on this investigation, holding accountable those whose criminal activity undermines New Yorkers' right to live in safe communities."

As alleged in the Indictment unsealed today in Manhattan federal court and statements made in court[1]:

EDIBERTO SANTANA, a/k/a “Flaco Veneno,” MIGUEL GENAO, a/k/a “Sombra,” CARLOS RAMIREZ, a/k/a “Guerra,” DARINSO MARTE REYES, a/k/a “Cibao,” ANGEL CRISPIN, a/k/a “Secreto,” JOSE MARICHAL, a/k/a “Menor,” a/k/a “El Menol,” and ENIEL VASQUEZ, a/k/a “Dominican Flow,” are members and associates of a racketeering enterprise known as “Sunset,” which operates in the Bronx, Manhattan, and Brooklyn, New York, among other locations.  Sunset is a set or chapter of the nationwide Trinitarios gang.  In order to enrich the enterprise, protect and expand its criminal operations, enforce discipline among its members, and retaliate against members of rival gangs, Sunset members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder; distributed and possessed with intent to distribute narcotics; committed robberies; engaged in fraud; and obtained, possessed, and used firearms.

On or about October 23, 2013, SANTANA and RAMIREZ participated in the murder of Michael Beltre in the vicinity of Jerome Avenue and 193rd Street in the Bronx, New York.

On or about November 17, 2013, SANTANA participated in the murder of Rafael Alam in the vicinity of Jerome Avenue and 174th Street in the Bronx, New York.

Mr. Berman praised the outstanding investigative work of the DEA, HSI, NYPD, NYSP, and DOI.

Staten Island Woman Sentenced To 2 Years In Prison For Defrauding Police Charity Of Over $400,000

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LORRAINE SHANLEY was sentenced today to two years in prison for bank fraud and subscribing to false and fraudulent individual income tax returns, in connection with fraudulently obtaining over $400,000 from a charity providing support to the families of New York City Police Department (“NYPD”) officers killed in the line of duty.  SHANLEY pled guilty on September 20, 2019, before U.S. District Judge Sidney H. Stein, who imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “With every paycheck, thousands of New York City Police Department officers and employees donated to charity to support the surviving spouses and children of officers killed in the line of duty.  Yet for years, Lorraine Shanley exploited that generosity, using her position as the charity’s volunteer treasurer to steal over $400,000 for herself and her family.  Today’s sentence sends a clear message that those who commit such fraud will face serious consequences.”

According to the allegations in the Complaint and Information, public court filings, and statements made in court:

From 2010 to 2017, SHANLEY served as a volunteer treasurer for Survivors of the Shield, a charity that provides financial support to the families of NYPD officers killed in the line of duty.  During that time period, Survivors of the Shield received approximately $1.9 million in donations, over 99% of which came from NYPD employees, from an average of 5,500 NYPD employees per year. 

SHANLEY was an authorized signatory on Survivors of the Shield’s bank account and credit card, and was authorized to use them for Survivor of the Shield’s operations.  But SHANLEY also used the bank account and credit card to benefit herself and her family members.  From 2010 to 2017, SHANLEY fraudulently obtained over $400,000 from Survivors of the Shield’s coffers, taking money for herself and relatives, and paying for various personal expenditures such as landscaping, dental bills, event tickets, airfare, hotels, and shopping at high-end retailers.

In addition to the prison term, SHANLEY, 69, of Staten Island, New York, was sentenced to three years of supervised release, and was ordered to forfeit $406,851 and to pay restitution of $406,851 to Survivors of the Shield, including $290,000 to be paid within 30 days of today's judgment, and $103,983 to the IRS.

Mr. Berman thanked the Internal Revenue Service and special agents with the U.S. Attorney’s Office for their outstanding investigative work.

Attorney General James Announces Settlement With Paypal Charitable Giving Fund, Inc. To Ensure Transparency In Charitable Donations

Attorney General Letitia James, together with 22 state law enforcement partners, has reached an agreement with PayPal Charitable Giving Fund, Inc. to ensure donors receive adequate information and disclosures when making charitable contributions through the company’s online fundraising platform.

“Every individual who chooses to donate funds deserves transparency and honesty throughout the process,” said Attorney General James, co-chair of the charities committee for National Association of Attorneys General. “My office is committed to ensuring that hard-earned dollars go where intended, and that no entity takes advantage of the generosity of New Yorkers.”

PayPal Charitable Giving Fund, Inc. (PPGF) is the charitable arm of PayPal, Inc. PPGF is a 501(c)(3) nonprofit corporation that allows donors to contribute funds electronically to PPGF and to select a charity to receive their contribution. PPFG then aggregates all the contributions and distributes them accordingly to the various charities. PPGF does not collect fees from donors or charities for this service; however, a charity receives contributions more quickly if the charity maintains a PayPal account, a fact that had not been adequately disclosed to donors. And in some instances, PPGF redirected donors’ contributions from the charity selected by the donor to other organizations with similar purposes without informing donors.

Charities regulators nationwide joined the effort to investigate PPGF’s fundraising activities, including its disclosures, vetting practices, and treatment of charitable contributions. To address the states’ concerns, PPGF agreed to adopt reforms to its disclosures to ensure that donors know:

• that they are contributing to PPGF;
• the timeframe in which a selected charity may receive funds from PPGF; and 
• the implication of being an enrolled rather than an unenrolled charity on the PPGF platform.

PPGF also agreed to notify donors when it redirects a donor’s charitable contribution to an organization other than the one selected by the donor. PPGF will provide regulators with future fundraising campaign data to ensure the organization is complying with its obligations under the agreement.

Finally, PPGF agreed to make a payment of $200,000 to the National Association of Attorneys General for deposit into the NAAG Charities Enforcement and Training Fund. This Fund has been established to defray costs associated with the investigation and litigation of cases brought by state charities regulators and to provide training and education to those regulators.

Today’s settlement helps ensure that online donors receive the information they need to make informed decisions about their charitable contributions.

Today’s settlement is led by the attorneys general of Connecticut and Nebraska, and, along with New York, includes the attorneys general of Arkansas, Colorado, District of Columbia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Nevada, New Hampshire, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, and Wisconsin, as well as the Secretary of State for North Carolina.