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Thursday, January 23, 2020
Bronx Progressives Annual Meeting - Wednesday, Jan 29th, 2019 at 6:30pm!
Wednesday, January 22, 2020
Brooklyn Borough President Eric Adams - Come Join Our Vegan & Veg-Curious Meetup!
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Manhattan Man Pleads Guilty To Attempting To Provide Material Support To Terrorist Organization
Jesus Wilfredo Encarnacion Attempted to Travel Overseas to Join Lashkar e-Tayyiba
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, the Assistant Attorney General for National Security, announced today that JESUS WILFREDO ENCARNACION, a/k/a “Jihadistsoldgier,” “Jihadinhear,” “Jihadinheart,” “Lionofthegood,” pled guilty to attempting to provide material support to Lashkar e-Tayyiba (“LeT”), a Pakistan-based designated foreign terrorist organization responsible for multiple high-profile attacks, including the infamous Mumbai attacks in November 2008. ENCARNACION pled guilty today before United States District Judge Ronnie Abrams.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Jesus Encarnacion plotted to travel abroad to join and train with the terrorist organization Lashkar e-Tayyiba, infamous worldwide for their brutal jihadist murder of innocent civilians, and to carry out shootings, bombings, and beheadings on their behalf. Thanks to the excellent work of the FBI and the NYPD, Encarnacion was intercepted before his deadly plot could take flight, and he now awaits sentencing for his crime.”
According to the criminal Complaint, Indictment, and other documents filed in the case, as well as statements made during the plea proceeding:
In November 2018, ENCARNACION expressed his desire to join a terrorist group in an online group chat, where he met another individual (“CC-1”). CC-1 introduced ENCARNACION to an individual who, unbeknownst to CC-1 or ENCARNACION, was in fact an undercover FBI employee (“UC-1”). ENCARNACION repeatedly expressed, in the course of recorded communications through a social media service with CC-1 and through an encrypted messaging service with UC-1, his allegiance to and support for LeT, which, since approximately 2001, has been designated as a Foreign Terrorist Organization by both the United States Secretary of State and the Immigration and Nationality Act.
Over several months, ENCARNACION discussed his desire and plans to join LeT overseas so that he could receive training and participate in violent acts of terrorism. For example, ENCARNACION told UC-1 that he was “ready to kill and die in the name of Allah” and sought UC-1’s assistance to help ENCARNACION travel abroad to serve as an “executioner” for LeT, stating, “I want to execute. I want to behead. Shoot.” ENCARNACION further stated that he aspired to commit terrorist attacks (“a bombing and shooting”) in the United States, but lacked “guidance” and “guns” to do so.
By early 2019, ENCARNACION and UC-1 agreed on a plan that ENCARNACION believed would allow him to join LeT in Pakistan. ENCARNACION told UC-1 that he had made arrangements to travel to a particular city in Europe (the “European City”), as the first step in traveling to Pakistan to join LeT. ENCARNACION purchased an airline ticket for a flight scheduled to depart on February 7, 2019, from John F. Kennedy International Airport (“JFK Airport”) to the European City. On February 7, 2019, ENCARNACION traveled to JFK Airport, where he was arrested by the Federal Bureau of Investigation (“FBI”) after he attempted to board that flight.
ENCARNACION, 30, of New York, New York, pled guilty to one count of attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
ENCARNACION is scheduled to be sentenced by Judge Abrams on April 24, 2020, at 11:30 a.m.
Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Mr. Berman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U. S. Customs and Border Protection.
Former Congressman Christopher Collins Sentenced For Insider Trading Scheme And Lying To Federal Law Enforcement Agents
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CHRISTOPHER COLLINS, who represented the 27th District of New York as a member of the U.S. House of Representatives, was sentenced to 26 months in prison today by U.S. District Judge Vernon S. Broderick for participating in a scheme to commit insider trading and for making false statements to federal law enforcement agents when interviewed about his conduct.
U.S. Attorney Geoffrey S. Berman said: “Former New York Congressman and Innate board member Christopher Collins received confidential, nonpublic information that one of Innate’s drugs in development had just failed a clinical trial. Moments later, from the White House lawn, Collins notified his son Cameron, so that he could trade the stock ahead of the public announcement and avoid taking a substantial loss on the stock. He then lied to the FBI when asked about his conduct. Collins’s greed and disregard for the law have now led to a criminal conviction for insider trading and lying to the FBI, his resignation from Congress, and over two years in federal prison. Lawmakers bear the profound privilege and responsibility of writing and passing laws, but equally as important, the absolute obligation of following them. Collins’s hubris is a stark reminder that the people of New York can and should demand more from their elected officials, and that no matter how powerful, no lawmaker is above the law.”
The following facts are based on the allegations contained in the Superseding Indictment and statements made in related court filings and proceedings:
The Insider Trading Scheme
The Scheme
In or about June 2017, CHRISTOPHER COLLINS, who, in addition to serving on the board of directors of Innate Immunotherapeutics (“Innate”), an Australian biotechnology company, was also one of Innate’s largest shareholders, participated in a scheme to commit insider trading. Specifically, on or about June 22, 2017, CHRISTOPHER COLLINS learned that MIS416 – a multiple sclerosis drug that Innate was developing – had failed a critical drug trial that was meant to determine the drug’s clinical efficacy (the “Drug Trial”). The negative Drug Trial results were highly confidential, and, as an insider who owed duties of trust and confidence to Innate, CHRISTOPHER COLLINS was obligated to keep the Drug Trial results secret until Innate publicly released them. Instead, in breach of those duties, CHRISTOPHER COLLINS tipped his son, Cameron Collins, who was also a substantial Innate shareholder, so that Cameron Collins could make timely trades and tip others before Innate publicly released the Drug Trial results. Cameron Collins traded on the inside information and passed it to Stephen Zarsky, the father of his fiancée, as well as to three individuals not named in the Superseding Indictment (“Individual-1,” “Individual-2,” and “Individual-6”), so that they could utilize the information for the same purpose. Zarsky, in turn, traded on the information and used it to tip three more individuals not named in the Superseding Indictment (“Individual-3,” “Individual-4,” and “Individual-5,”) so that they too could engage in timely trades in Innate stock. All of the trades preceded the public release of the negative Drug Trial results.
In total, these trades allowed Cameron Collins and Zarsky, and Individual-1 through Individual-6, to avoid over $768,000 in losses that they would have otherwise incurred if they had sold their stock in Innate after the Drug Trial results became public.
The Drug Trial Results
In or about October 2014, Innate initiated a Phase 2B clinical trial of its primary drug, MIS416. Successful completion of the Drug Trial was a necessary prerequisite to the commercialization of MIS416. Because Innate had no other significant products in development, its stock price was tied to the success of MIS416.
The Drug Trial was widely expected to be completed around the summer of 2017. For example, on or about June 9, 2017, Innate’s chief executive officer (“CEO”) sent various individuals, including CHRISTOPHER COLLINS, an email stating that “the delivery date for [the] review and ‘verdict’” of the Drug Trial “will [] occur at COB on US Thursday June 22nd.” As the summer progressed, individuals within Innate remained optimistic that MIS416’s Drug Trial results would be positive. The initial Drug Trial results were made available by trial administrators to Innate’s CEO on June 22, 2017. These results established that MIS416 lacked therapeutic value in the treatment of multiple sclerosis. The results were not publicly released at that time. Instead, they were released publicly on June 26, 2017, after the U.S. markets had closed (the “Public Announcement”). Innate’s stock price subsequently crashed, dropping 92% on the first trading day following the Public Announcement.
Dissemination of the Drug Trial Results
On or about June 22, 2017, at approximately 6:55 p.m., Innate’s CEO sent an email describing the Drug Trial results to the company’s board of directors, including CHRISTOPHER COLLINS. The email explained to Innate’s board of directors for the first time that the Drug Trial had been a failure. The email began, in part, “I have bad news to report,” and continued to explain that “the top line analysis of the ‘intent to treat’ patient population (ie every subject who was successfully enrolled in the study) would pretty clearly indicate[s] ‘clinical failure.’” The email continued, “Top-line 12-month data . . . show no clinically meaningful or statistically significant differences in [outcomes] between MIS416 and placebo,” and concluded by stating, “No doubt we will want to consider this extremely bad news . . . .”
At the time CHRISTOPHER COLLINS received this email, he was attending the Congressional Picnic at the White House. At 7:10 p.m., CHRISTOPHER COLLINS replied to the email, stating, in part, “Wow. Makes no sense. How are these results even possible???” After responding to the Innate CEO’s email, CHRISTOPHER COLLINS called his son, Cameron Collins. They traded six missed calls between 7:11 p.m. and 7:15 p.m. At 7:16 p.m., CHRISTOPHER COLLINS and Cameron Collins spoke for more than six minutes. During that six-minute phone call, CHRISTOPHER COLLINS told Cameron Collins, in sum and substance, that MIS416 had failed the Drug Trial.
Trading and Tipping by CAMERON COLLINS and ZARSKY
Cameron Collins began placing orders to sell his Innate shares the morning after he received inside information from CHRISTOPHER COLLINS. Between the morning of Friday, June 23, 2017, and the close of the market on Monday, June 26, 2017, Cameron Collins sold approximately 1,391,500 shares of Innate stock. These sales allowed Cameron Collins to avoid approximately $570,900 in losses.
Furthermore, after learning the Drug Trial results from CHRISTOPHER COLLINS, on or about the night of June 22, 2017, Cameron Collins provided the Drug Trial results to at least the following three sets of individuals so that they could trade in advance of the Public Announcement: (1) his fiancée, Individual-1; (2) Zarsky and Zarsky’s wife, Individual-2; and (3) Cameron Collins’s friend, Individual-6. Collectively, these individuals avoided approximately $186,620 in losses as a result of their trading on inside information.
On or about the morning of June 23, 2017, Zarsky provided the negative Drug Trial results that he had learned from Cameron Collins and Individual-1 to at least the following individuals, among others, or otherwise caused them to trade or attempt to trade in advance of the Public Announcement: (1) his brother, Individual-3; (2) his sister, Individual-4; and (3) his longstanding friend, Individual-5. Collectively, these individuals avoided approximately $10,900 in losses as a result of their trading on inside information.
False Statements to the FBI
On or about April 25, 2018, special agents from the Federal Bureau of Investigation (“FBI”) separately interviewed CHRISTOPHER COLLINS, Cameron Collins and Zarsky. During these interviews, and as detailed in the Superseding Indictment, CHRISTOPHER COLLINS, Cameron Collins and Zarsky made false statements to the FBI to cover up their participation in the insider trading scheme.
In addition to the prison term, CHRISTOPHER COLLINS was sentenced to one year of supervised release and ordered to pay a fine of $200,000.
Mr. Berman praised the outstanding work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.
AG James Pushes Back On Proposal Allowing Predatory Lenders To Take Advantage Of New York's Most Vulnerable Communities
AG James Leads Bipartisan Coalition in Sending Letter Asking Federal Banking Regulator to Withdraw Rule Facilitating ‘Rent-A-Bank’ Schemes
New York Attorney General Letitia James led a bipartisan coalition of attorneys general that included the attorneys general of California, Illinois, and 19 other states to object to a proposed rule that would undermine New York’s efforts to prevent predatory lenders from taking advantage of consumers by charging high interest rates on loans and bypassing state caps — or usury laws — already in place. In a comment letter submitted to the Office of the Comptroller of the Currency (OCC), the coalition of attorneys general urge the OCC to reject the proposed rule that would enable predatory lenders to circumvent these caps through “rent-a-bank” schemes — arrangements in which heavily regulated national banks act as lenders in name only and enter into sham partnerships with unregulated entities so that they can receive exemptions that allow them to issue loans at interest rates that exceed state caps.
“At a time when credit card companies are making record profits and millions of Americans struggle to make ends meet, it is disappointing that the federal government has chosen to protect big banks’ profits rather than vulnerable consumers,” said Attorney General James. “Rather than stem the tide of exploitative and predatory loans that trap consumers in a cycle of debt, the OCC wants to open the floodgates by sanctioning schemes that allow the financial services industry to target New Yorkers. Rent-a-bank schemes make a mockery of federal law, and the OCC’s sanctioning of these schemes is an insult to the majority of states whose citizens have rejected the absurd notion that freedom means the ‘right’ to take out a loan at a triple-digit interest rate.”
Under the federal National Bank Act, national banks that are licensed and regulated by the OCC are permitted to charge interest on loans at the maximum rate permitted by their home state, even in states where that interest rate would violate state usury laws. The ability to preempt state usury laws in this way is a privilege granted to national banks — and only to national banks — because they are subject to extensive federal oversight and supervision. This privilege is extremely valuable to national banks because it permits them to lend money at rates in great excess of the rates they pay to borrow money. While federal law provides a carve out from state usury laws for federally-regulated banks, state law continues to protect residents from predatory lending by non-banks, such as payday, auto title, and installment lenders. Congress affirmed that role with the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, preserving more protective state laws and rejecting attempts by the OCC to limit the authority of states over the financial services industry.
Despite the protections in Dodd-Frank, the new regulations proposed by the OCC — originally proposed in November 2019 — would extend the National Bank Act exemption for federally-regulated banks to non-bank debt buyers, such as payday lenders or any entity that purchases debt from a national bank. The proposed rule seeks to achieve this result by recasting National Bank Act preemption as an ordinary property interest that can be assigned, and codifying an obscure doctrine that purportedly concerns the assignability of contractual rights — a sharp reversal in law and policy.
In the comment letter, Attorney General James and the coalition of attorneys general object to the proposed rule, stating that it stands in direct conflict with the National Bank Act and the Dodd-Frank Act, exceeds the OCC’s statutory authority, and violates the Administrative Procedure Act. Further, Congress has clearly rejected legislation to expand the National Bank Act preemption to non-banks, further undermining the OCC’s attempt to rewrite federal law to suit its extreme policy preferences.
Joining Attorney General James in sending today’s letter to OCC are the attorneys general of California, Colorado, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, South Dakota, Virginia, Washington, Wisconsin, and the District of Columbia, in addition to the Hawaii Office of Consumer Protections.
Comptroller Stringer Audit Reveals Weak City Oversight of $53 Million Homebase Homelessness Prevention Program
As homelessness spending reaches all-time high and homeless population continues to soar, City fails to adequately track outcomes or fully oversee providers in key program
HRA failed to review two-thirds of Homebase case files and delayed fiscal audits and recoupments of contract advances -- including more than $2.2 million in advance payments
In the midst of New York City’s homelessness crisis, Comptroller Scott M. Stringer today released a concerning new audit revealing the City’s weak oversight of the its $53 million-per‑year Homebase Program, which is intended to help families and single adults overcome housing crises, avoid homelessness, and achieve housing stability. The Comptroller’s audit exposed failures by the City’s Human Resources Administration (HRA) to adequately and promptly review Homebase providers’ case files and to promptly alert them to correct the deficiencies it finds. Further, HRA’s incomplete tracking of clients who repeatedly return to the Homebase program for services and financial assistance after their cases are closed, combined with inaccurate program records, undercut the City’s ability to assess the effectiveness of the Homebase program and the individual providers. The audit also revealed lengthy delays in HRA’s fiscal reviews of its Homebase contracts and its failure to recoup more than $2.2 million in advance payments 16 months after one group of Homebase contracts ended.
“We are in the middle of a mounting homelessness crisis, with thousands of families struggling in our shelters. While the City is spending more money than ever before on services that are supposed to help people overcome and prevent homelessness, we are not seeing the reductions in homelessness that we should. This audit presents a damning example of the poor management and failures that plague the City’s approach to this ballooning crisis,” said Comptroller Stringer. “There’s a human cost to the City’s failures. If we don’t keep track of the resources that are intended to help vulnerable New Yorkers, the very people we must lift up fall through the cracks. In the fight against homelessness, every penny counts. The City needs to step up and ensure these programs are working and that no dollar is being wasted.”
The Homebase Program is a City-administered homelessness prevention program operating out of 26 locations across all five boroughs. It primarily serves households whose income is below 200 percent of the federal poverty level for families with children or 30 percent of Area Median Income for adult households who are at risk of homelessness or who have recently left the shelter system.
The administration of Homebase was transferred from the Department of Homeless Services (DHS) to HRA in January 2017, during the scope period this audit covered. However, a majority of the staff in leadership roles overseeing the program have remained the same. HRA currently has Homebase contracts with seven non-profit organizations: Help USA, Bronxworks, Catholic Charities Community Services Archdiocese of NY (ARCHNY), Catholic Charities Neighborhood Services (CCNS), CAMBA, Rise Boro Community Partnership; and SUS Urgent Housing Programs.
HRA’s Inadequate Case File Reviews
The Comptroller’s audit found:
- As of May 2019, HRA had formally reviewed, and provided the Comptroller’s Office with printed summaries for, only 80 of the 240 Homebase case files it should have reviewed in the preceding 18 months;
- Although the 80 reviews HRA did initiate dated back to site visits its staff conducted in May and June 2018, the agency did not inform its contracted providers of the results—including multiple deficiencies—before May 2019, in most cases a full year after the review;
- According to the 80 Homebase case-review summaries HRA originally gave the Comptroller’s office, HRA staff identified 67 deficiencies in 54 of the 80 cases they reviewed—or 68 percent;
- The deficiencies included 6 instances where clients with income above Homebase program limits were incorrectly deemed eligible to receive services and dozens of instances in which the Homebase service providers’ files lacked required information and documents concerning their clients’ public assistance benefits, income, and financial resources;
- There were numerous instances in which HRA’s findings and conclusions were internally inconsistent. In one example, HRA agency staff reviewed five case files maintained by one provider and noted in the conclusion section of their report that two of the five cases did not meet the Homebase program’s income eligibility requirements and should not have received services, but they also noted—inconsistently—in another section of their report that all five cases met income requirements.
- Toward the end of the year-long audit—after the Comptroller’s auditors informed HRA of the abovementioned deficiencies and inconsistencies—HRA officials claimed for the first time that the case file review summaries they had previously provided to the Comptroller office were not the final versions. HRA later provided the Comptroller’s office with new documents that it claimed were the final versions, which differed significantly from the original summaries.
- For example, HRA’s revised summaries reported only 23 deficiencies in the 80 case files HRA had reviewed, significantly fewer than the 67 reported in HRA’s original summaries. HRA did not explain the numerous changes, and none of the revised summaries were dated. The original summaries had all been dated either January or February 2019, eight to nine months after HRA had reviewed the case files. According to HRA, the “final” case file review summaries were not shared with providers until May 19, 2019—in most cases a full year after the site visits.
Information Missing from Homebase Providers’ Case Files
The Comptroller’s auditors also visited 5 of HRA’s contracted Homebase providers and found that 17 of 50 sampled client case files they maintained were either missing required documents or lacked required information.
The deficiencies found in the Homebase contracted providers’ sampled case files are detailed in the table below:
The Comptroller’s auditors also identified additional issues in the providers’ case records, including some that were particularly concerning. For example, according to the providers’ records, 5 of the 28 homes they visited were found to be not habitable. However, the Comptroller’s auditors found no evidence that the conditions relating to four of those five homes were fixed by the landlords while the Homebase clients continued to reside there. These cases included one where the provider’s case manager observed a rodent infestation, mold or mildew, a water leak and broken windows during the home visit.
In addition, for 27 Homebase cases that remained open longer than 90 days, including 17 cases that were in the program for more than 120 days, up to 270 days, the files contained no evidence that the providers had reassessed the cases as required.
Incomplete Tracking of Homebase-Case Outcomes
HRA does not fully track clients who return to the Homebase Program in ways that could enhance its ability to evaluate the services provided. Clients who return to Homebase for assistance with a new housing crisis are allowed to open a new Homebase case. The Comptroller’s Office found:
- 2,661 (11 percent) of 24,938 households with Homebase service start dates during Fiscal Year 2018 (July 1, 2017 through June 30, 2018) returned to Homebase from one to four additional times within the same 12-month period after their initial cases were closed;
- Out of these 2,661 households, 1,860 came back and received the same level of Homebase service more than once;
- 19 (38 percent) of the 50 sampled cases involved clients who had received Homebase services within 36 months prior to the initiation of the cases we reviewed—3 of whom had previously received services less than 60 days before receiving services in the sampled cases.
Failure to Recoup Advance Payments
The audit found that HRA does not follow its own procedures to recoup advances. For example, the Comptroller’s Office found:
- $2,271,797 in advance payments for seven contracts that were closed out in October 2017 were not recouped as of March 6, 2019—16 months after the closeouts.
- Delays in recoupments persisted into the midpoint of Fiscal Year 2019, when HRA failed to recoup $565,256 (10 percent) then due on more than $5.65 million it had advanced earlier that year on six active contracts.
HRA Does Not Ensure Timely Audits
The Comptroller’s audit found:
- HRA does not ensure that required fiscal audits of providers are completed in a timely manner—or at all.
- Seven of the 11 audits covering the three-year period ending in Fiscal Year 2015 were not completed until after January 2019.
- Five of these audits determined that funds totaling $255,728 needed to be recouped from the providers.
- The audits for the remaining four contracts had still not been completed as of May 7, 2019. As of January 2019, HRA has initiated only 2 of the 16 audits covering the three-year cycle that ended in June 2018.
In response to the findings, Comptroller Stringer made 19 recommendations, including calling on HRA to strengthen its monitoring controls to ensure that it conducts two formal case file review cycles annually and to ensure that its case file review summaries are scrutinized for accuracy and sent to the providers in a timely fashion. The Comptroller also called on HRA to improve tracking of the clients who return to the Homebase Program after their cases are closed to better measure the effectiveness of services the City is providing New Yorkers enrolled in the program.
To view the full audit and recommendations, click here.
Bronx, New York, Man Admits Role In Conspiracy To Distribute Heroin And Fentanyl From A Drug Mill In The Bronx
NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.
Jose Antonio Vasquez Pena, a/k/a “Tono,” 47, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, and Francisco Mercedes Gil, 31, also of the Bronx, New York, pleaded guilty before Judge Salas to the same charges in September 2019.
Three other individuals – Jhan Carlos Capellan Maldonado, 31, Daury Contreras Ulerio, 34, and Reimon Genao Rosario, 23 – were indicted on the same charge as Pena in August 2019. Their cases are pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time—including Rodriguez, Ulerio, Rosario, Gil, and Genao—to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for April 27, 2020.
U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.
The charge and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
EDITOR'S NOTE:
We have left in the City of Newark N.J.
We now have to question if this was a man/men who was/were placed in living quarters in Newark N.J., unsupervised by the NYC Department of Homeless Services.
SIX NEW YORK CITY CORRECTION OFFICERS AND 15 OTHERS CHARGED WITH CONSPIRING TO ACCEPT BRIBES AND SMUGGLE CONTRABAND INTO RIKERS ISLAND FACILITIES
Illegal Narcotics and a Smart Phone Seized by Law Enforcement Officers
Three criminal complaints were unsealed today in federal court in Brooklyn, New
York, charging 21 defendants with conspiring to bribe correction officers employed by the New
York City Department of Corrections (“DOC”) as part of narcotics smuggling conspiracies.
Three defendants remain at large. The initial appearances for 12 of the defendants are scheduled
for this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
Richard P. Donoghue, United States Attorney for the Eastern District of New
York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation,
New York Field Office (FBI), and Margaret M. Garnett, Commissioner, New York City
Department of Investigation (DOI), announced the charges.
“The corruption of correction officers presents a security risk to the entire jail
population, and a potential danger to the residents of our communities,” stated United States
Attorney Donoghue. “We will continue to aggressively investigate and prosecute those who
place their personal enrichment over the public duties they have sworn to perform.” Mr.
Donoghue thanked Homeland Security Investigations, New York, and the New York City Police
Department for their assistance in the investigations.
“The correction officers charged today allegedly accepted bribes to sneak
contraband onto Rikers Island—propagating behavior that has the potential to harm other
officers and prisoners alike. The smuggling of contraband into our jails is a common Hollywood
storyline, but while there’s an element a fiction in many a screenplay, there’s nothing fake about
this real-life threat to our correctional facilities. Along with our partners at the DOI, we are
dedicated to confronting this issue head-on,” stated FBI Assistant Director-in-Charge Sweeney.
"Contraband smuggling enterprises have long plagued City jail facilities. The
arrests today are another example of a pattern in which inmates and outside conspirators identify correction officers vulnerable to corruption, and use them to carry drugs and other illegal
substances into the jails,” stated DOI Commissioner Garnett. “These schemes threaten the safety
of fellow officers and other inmates, and undermine order and discipline in the City’s jails. DOI
will continue to prioritize safety and integrity in the jails, and continue to relentlessly pursue
those who threaten it. DOI thanks its partners at the Office of the U.S. Attorney for the Eastern
District of New York and the FBI for their partnership in the pursuit of these individuals charged
today in our shared effort to root out criminal activity in the City's correction system."
Since early 2019, the FBI and DOI have been investigating contraband rings
involving the payment and receipt of bribes by DOC officers in exchange for transporting
marijuana, the narcotic Suboxone and K2 (a synthetic cannabinoid) and an unauthorized smart
phone into the George R. Vierno Center and the Otis Bantum Correctional Center on Rikers
Island.
As set forth in the complaints, the defendants conspired to smuggle the
contraband into Rikers Island facilities with the assistance of New York City Correction Officers
Darrington James, Patrick Legerme, Aldrin Livingston, Michael Murray, Angel Rodriguez and
Christopher Walker. Defendants James Albert, Clarence Brooks, Kyle Charles, John
Mohammed and Christopher Rivas, who were incarcerated for unrelated offenses, arranged for
marijuana and other contraband to be packaged and secretly delivered to those correction officers
by defendants Celena Burgess, Veronica Jagdeo, Jorcetta King, Aboudou Krigger, Jonathan
Medina, Styles Shephard and Tony West. The defendant correction officers allegedly received
thousands of dollars in bribes to smuggle the drugs past DOC security, for distribution inside the
Rikers Island facilities.
As a part of their investigations, law enforcement officers reviewed financial
records related to online money transfer tools, such as CashApp, conducted surveillance and
reviewed recorded telephone calls made by defendants who used coded language in their
conversations. For example, on February 19, 2019, an inmate at the Vierno facility called a coconspirator to discuss supplying the inmate and Albert with marijuana: “I’m trying to get, um
four ‘Oakland Raider jerseys’ [code for marijuana]. “…’Got Pink Panties’ [code for correction
officer] on the line right now, you heard? Gangsta. You just gotta make it to the ‘Jungle’ [code
for Brooklyn] to drop it off to them and, more or less, we lit from there.” In recorded telephone
calls between Rivas and a co-conspirator in October 2019, Rivas requested a ‘joint’ [code for a
cellular telephone] with a Facetime application. In a subsequent telephone conversation, Rivas
asked West whether the joint is a Size 5 or Size 6 [code for iPhone 5 or iPhone 6], and West
replied that it was a Size 6, referring to an iPhone 6 that was delivered to the Vierno facility the
previous night.
On October 25, 2019, a DOC Special Search Team seized an iPhone 6 and an
iPhone charger from Rivas’s laundry bag and 12 clear plastic bags containing marijuana from his
person.
The charges in the complaint are allegations, and the defendants are presumed
innocent unless and until proven guilty. If convicted, the defendants each face a maximum
sentence of five years’ imprisonment.
The Defendants: ---
JAMES ALBERT
Age: 43
Comstock, New York
CLARENCE BROOKS
Age: 39
Bronx, New York
CELENA BURGESS
Age: 43
New York, New York
KYLE CHARLES
Age: 32
Brooklyn, New York
VERONICA JAGDEO
Age: 24
Freeport, New York
DARRINGTON JAMES
Age: 30
Queens, New York
JORCETTA KING
Age: 33
Bronx, New York
ABOUDOU KRIGGER
Age: 25
Bronx, New York
PATRICK LEGERME
Age: 29
Queens, New York
ALDRIN LIVINGSTON
Age: 31
Queens, New York
JONATHAN MEDINA
Age: 29
Queens, New York
JOHN MOHAMMED
Age: 27
Rome, New York
MICHAEL MURRAY
Age: 28
Brooklyn, New York
CHRISTOPHER RIVAS
Age: 32
New York, New York
ANGEL RODRIGUEZ
Age: 23
Bellport, New York
STYLES SHEPHARD
Age: 24
New York, New York
CHRISTOPHER WALKER
Age: 28
Brooklyn, New York
TONY WEST
Age: 24
Brooklyn, New York