Pelham- And Bronx-Based Tax Preparer Pleads Guilty In White Plains Federal Court To Preparing And Filing False Income Tax Returns

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that MICHAEL MAGNALDI, a former Pelham resident and an owner and operator of a Bronx-based tax preparation business, pled guilty to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count of subscribing to a false tax return for tax year 2016.  MAGNALDI pled guilty before U.S. Magistrate Judge Paul E. Davison. 

U.S. Attorney Geoffrey S. Berman said:  “After serving in the New York City Department of Finance for 15 years, Michael Magnaldi betrayed the public’s trust by engaging in a years-long pattern of preparing false returns for clients and falsely understating his own income the same year he bought a $705,000 home in Pelham.  Magnaldi’s fraudulent conduct undermined the government’s ability to fund its mandates and cost the government $476,184 in tax revenue.  As we enter tax filing season, Magnaldi now stands convicted of two counts of criminal tax charges and awaits sentencing for his crimes.”

IRS-CI Special Agent-in-Charge Jonathan D. Larsen said:  “As the tax season heats up, this is an important reminder to taxpayers to beware of unscrupulous tax return preparers. Fraudulent tax return preparers harm taxpayers, legitimate businesses, and the American public. IRS-CI is steadfast in its commitment to ending such tax fraud and today’s guilty plea shows the serious consequences for violating this nation’s tax laws.”

According to the allegations contained in the Information to which MAGNALDI pled guilty, MAGNALDI’s plea agreement, and statements made in court:           

MAGNALDI has years of audit experience in the New York City Department of Finance.  Since at least 2014, MAGNALDI owned and operated MGM Tax Solutions, a tax preparation business located in the Bronx, New York. 

As charged in Count One of the Information, for the 2014 through 2017 tax years, MAGNALDI prepared for clients 37 false Forms 1040 containing, among other false information, false Schedule D capital losses, false Individual Retirement Account (“IRA”) contribution deductions, and false Education Tax credits.  MAGNALDI unsuccessfully attempted to conceal his role in preparing these fraudulent tax returns by not listing his or any name as the return preparer, to make it seem as if the returns were self-prepared.  In response to IRS correspondence audits, MAGNALDI caused additional false forms to be sent to the IRS, in an attempt to substantiate the false losses, deductions, and credits claimed on the tax returns.  The total tax loss for the 37 false individual income tax returns of MAGNALDI’s clients is $232,767. 

As charged in Count Two of the Information, in addition to the false filings prepared on behalf of his clients, MAGNALDI also falsely understated his own and his business’s income on their 2016 tax returns, the same year he bought a roughly $705,000 home in Pelham.  Specifically, MAGNALDI falsely understated income on MGM Tax Solutions’ 2016 Form 1120S, which understated flow-through income on MAGNALDI’s 2016 Form 1040.  The tax loss for MAGNALDI’s understatement of flow-through income is $243,417.

The total tax loss resulting from both schemes is $476,184.  

MAGNALDI, 54, formerly of Pelham, New York, and currently living in St. Augustine, Florida, pled guilty to one count of aiding and assisting in the filing of false tax returns for tax years 2014 to 2017 and one count of subscribing to a false tax return for tax year 2016, each of which carries a maximum sentence of three years in prison.  As part of the plea agreement, MAGNALDI has agreed to pay restitution to the IRS in the amount of at least $476,184 plus interest and penalties.  Sentencing is scheduled for May 8, 2020, at 10:00 a.m., before U.S. District Judge Vincent L. Briccetti.

The maximum potential sentences 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 IRS Criminal Investigation in this case.

Financial Adviser Sentenced To 30 Months In Prison For Defrauding Clients In Fake Investment Scheme

  Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that ELIAS HERBERT HAFEN, a former financial adviser at two investment banks with offices in New York, New York, was sentenced yesterday to 30 months in prison for having defrauded his clients out of more than $1.6 million.  HAFEN previously pled guilty to one count of investment adviser fraud before United States District Judge Alvin K. Hellerstein, who imposed yesterday’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “Elias Hafen promised to invest his clients’ money in a high-yield fund with guaranteed returns, and propped up his fraud with fake account statements.  He never invested his clients’ money, instead using it to line his pockets.”

According to allegations in the Information, other documents filed in federal court, and statements made in public court proceedings, including during HAFEN’s guilty plea:

From 2011 until 2018, HAFEN engaged in a scheme to defraud 11 of his financial advisory clients into believing that HAFEN had access to a high-yield investment fund with guaranteed returns, which was not affiliated with the investment bank at which HAFEN worked.  On HAFEN’s advice, these clients transferred approximately $1.6 million directly to HAFEN’s personal bank account for investment in the purported investment fund over the years that HAFEN engaged in his fraudulent scheme.  HAFEN also created fictitious “Investor’s Statements” bearing the name of a non-existent investment company purporting to detail the status of his victims’ investments.  In reality, however, there was no investment fund at all; HAFEN was using the victims’ funds to pay for personal expenses. 

In addition to the prison term, HAFEN, 64, was also sentenced to three years of supervised release, ordered to pay $745,000 in restitution, and ordered to forfeit $806,750.

Mr. Berman praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.

AG James, NY Strike Force Take Down Long Island Gun Trafficking Ring

Individuals Illegally Sold 32 Firearms, Including Assault Weapons, High-Capacity Ammunition Feeding Devices, and More Than One Thousand Rounds of Ammunition

 New York Attorney General Letitia James and the New York Strike Force today announced a 125-count indictment, charging four individuals for their roles in a gun trafficking operation that illegally sold 32 firearms on Long Island. The indictment — unsealed in Suffolk County Court today — charges Scotbert Green, James McNulty, Harold Lamm, and Carl Singer with trafficking numerous assault weapons, semiautomatic pistols, revolvers, high-capacity ammunition feeding devices, and more than one thousand rounds of ammunition.

“Illegal guns have no place in our homes or on our streets,” said Attorney General James. “These individuals put all of our communities at risk by allegedly trafficking dozens of guns, including assault weapons, from other states into New York. Our streets are a little safer tonight because of this investigation and I thank the New York Strike Force for their invaluable partnership.”

Some of the assault weapons, semiautomatic pistols, revolvers, high-capacity ammunition feeding devices, and more than one thousand rounds of ammunition recovered through this gun trafficking operation.

 Some of the assault weapons, semiautomatic pistols, revolvers, high-capacity ammunition feeding devices, and more than one thousand rounds of ammunition recovered through this gun trafficking operation.

Today’s take down was the result of a joint investigation between the Attorney General’s Organized Crime Task Force (OCTF) and the New York Strike Force — a crime-fighting unit comprising federal, state, and local law enforcement agencies, supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.

The investigation — dubbed “Operation Silence of the Lamm” after one of the defendants — included the use of physical surveillance, electronic surveillance, and undercover operations. During the course of the recorded transactions, the defendants repeatedly referenced their ability to obtain guns from other states and bring them into New York to be sold. The four defendants were charged with Criminal Sale of a Firearm, Criminal Possession of a Weapon, and Conspiracy for their participation in the illegal gun trafficking operation. 

According to the indictment, Scotbert Green acted as a broker between his firearms suppliers, James McNulty and Carl Singer, and sold firearms and ammunition to undercover officers on nine occasions between January 28, 2019 and June 26, 2019. Similarly, McNulty obtained firearms from his supplier, Harold Lamm, and sold numerous firearms and ammunition to undercover officers on five occasions between April 4, 2019 and October 24, 2019. 

In a separate 28-count indictment, McNulty is also charged with selling an additional seven firearms, including an assault weapon, four high-capacity ammunition feeding devices, and ammunition to an undercover officer on January 27, 2020.

The investigation resulted in the recovery of the following firearms and ammunition from the defendants:

Seven 9-millimeter semiautomatic pistols
Seven .45 caliber semiautomatic pistols
Four .40 caliber semiautomatic pistols
Four .380 caliber semiautomatic pistols
Two .32 caliber semiautomatic pistols
Two .38 caliber revolvers
One .410-gauge revolver
One .44 magnum revolver
One .44 special caliber revolver
One .9-millimeter semiautomatic rifle (assault weapon)
One 9-millimeter semiautomatic pistol (assault weapon)
One .455 caliber revolver – inoperable
One .357 caliber revolver
One 12-gauge shotgun – not chargeable
1,063 rounds of ammunition
18 high-capacity ammunition feeding devices

The 125-count indictment — unsealed today in Suffolk County Court — charged the four individuals with 12 crimes, including Criminal Sale of a Firearm in the Second Degree, Criminal Possession of a Weapon in the Second Degree, and Conspiracy in the Fourth Degree, among other charges. Green, McNulty, and Lamm were also charged with Criminal Sale of a Firearm in the First Degree, a Class B violent felony. If convicted, Green, McNulty, and Lamm face a maximum of 25 years in prison, and Singer faces a maximum of 15 years in prison.

The separate 28-count indictment against McNulty — also unsealed today — charged McNulty with Criminal Sale of a Firearm in the Second Degree, Criminal Possession of a Weapon in the Second Degree, among other charges. If convicted on this indictment, McNulty faces an additional maximum of 15 years in prison.  

Those charged in today’s indictment include:

SCOTBERT GREEN, 63, of Brentwood, New York;
JAMES MCNULTY, 33, of Deer Park, New York;
HAROLD LAMM, 36, of Deer Park, New York;
CARL SINGER, 89, of Islandia, New York;

"Gun traffickers invade our communities by putting weapons in the wrong hands for the wrong reasons," said DEA Special Agent in Charge Ray Donovan. "By seizing 32 illegal guns from the streets of Long Island, we are making our communities safer from gun-related crime and violence. I applaud the men and women whose diligent work led to these arrests and seizures.”

“The four suspects who were running this illegal gun trafficking operation had absolutely no regard for the potential damage that could have been inflicted if these firearms ended up in the wrong hands,” said State Police Superintendent Keith M. Corlett. “I commend our members and all our partners for their outstanding work on this case. Taking these firearms off the streets prevented future crimes and may have saved lives.”

“I would like to thank Attorney General James and the NY Strike Force for bringing down this gun trafficking ring and seizing dozens of guns that were destined for communities here on Long Island,” said Suffolk County Executive Steve Bellone. “This investigation sends a strong message about our unrelenting commitment to reducing firearm violence in Suffolk County and keeping illegal weapons off of our streets.”

“When law enforcement investigates criminals who are illegally selling firearms, they are putting themselves in harm’s way in order to prevent these weapons from ending up in the wrong hands,” said Suffolk County District Attorney Timothy Sini. “Illegal gun trafficking — particularly the illegal sale of assault weapons — can have deadly consequences, which is why every time an illegal trafficking operation is shut down, it has potentially saved lives. I thank Attorney General James, the New York Strike Force and all of the partnering agencies involved in this investigation for their vigilance in targeting gun traffickers and continuing to keep Suffolk County safe.”

“The number of firearms, to include automatic weapons, that were seized during this operation is a clear representation of the potential violence that the alleged gun traffickers were ready to contribute to,” said Peter C. Fitzhugh, Special Agent in Charge of HSI New York. “HSI, along with its law enforcement partners, prioritize the safety of our citizens and will aggressively pursue investigations into those who are willing to supply dangerous weapons contrary to the law.”

The Office of the Attorney General wishes to thank the members of the New York Strike Force for their partnership in this investigation, including the New York Division of the Drug Enforcement Administration (DEA); the New York State Police; the New York City Police Department; Immigration and Customs Enforcement – Homeland Security Investigations; the U.S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Customs and Border Protection; the U.S. Secret Service; the U.S. Marshals Service, the New York National Guard; the Clarkstown Police Department; the U.S. Coast Guard; the Port Washington Police Department; and the New York State Department of Corrections and Community Supervision.

The Office of the Attorney General also wishes to thank the Suffolk County Police Department, the Suffolk County District Attorney’s Office, and members of the DEA’s New York Drug Enforcement Task Force for their valuable participation and assistance in this investigation.

The joint investigation with the Drug Enforcement Administration’s New York Field Division Organized Crime Drug Enforcement Strike Force was directed by OCTF Investigators Bradley Rutty and Andrew Scala, the U.S. Army National Guard Counterdrug Task Force, and Supervising Investigator Paul Grzegorski, under the supervision of OCTF Assistant Chief John Sullivan and Deputy Chief Christopher Vasta. The Attorney General’s Investigations Division is led by Chief Oliver Pu-Folkes. .

The charges against the defendants are merely accusations and the defendants are presumed innocent unless and until proven guilty.

Additional photos of firearms and ammunition recovered:

BRONX WOMAN SENTENCED FOR STEALING OVER $100,000 IN HRA AND SNAP BENEFITS

Defendant Pleaded Guilty to Falsifying Business Records; Must Pay Back Thousands to City of New York

 Bronx District Attorney Darcel D. Clark today announced that a Bronx woman has been sentenced for stealing over $100,000 in Human Resources Administration (HRA) benefits and Supplemental Nutrition Assistance Program (SNAP) benefits. 

 District Attorney Clark said, “Throughout the years the defendant illegally collected funds, her husband was working for the New York City Fire Department and the New York City Department of Sanitation. The defendant also failed to disclose that she was working at Domino’s Pizza. She stole money that is meant to help those in the most vulnerable situations.” 

 District Attorney Clark said the defendant, Eleana Marrero, 32, of Westchester Avenue, Bronx, N.Y., was sentenced today to five years’ probation, was ordered to pay back $30,000 in restitution and received a $86,963 judgement order of restitution by Bronx Supreme Court Justice Linda Poust-Lopez. Marrero pleaded guilty to first-degree Falsifying Business Records on December 18, 2019. 

 According to the investigation, between May 2014 and May 2017, the defendant lied about her income in City of New York HRA and SNAP benefit applications and recertifications. In the paperwork, Marrero did not disclose her husband’s income, who was a City of New York employee for the FDNY and the NYC Department of Sanitation. The defendant also lied about her income by failing to disclose in applications that she was employed by Domino’s Pizza. Marrero stole $39,590.43 in welfare cash assistance, $22,736 in SNAP benefits and $54, 636.74 in Medicaid benefits, totaling $116,963.17 in stolen funds.

 District Attorney Clark also thanked Investigator Nyah Paul of the New York State Office of the Welfare Inspector General.

Statement from Senator Rivera on the Composition of the Medicaid Redesign Team II

 "I continue to be greatly concerned about the recommendations the Medicaid Redesign Team II will be making given that there are serious gaps in the representation of the membership and the unrealistic timeline outlined by the administration. While the team that was announced today includes respected members of the health care industry, it leaves key players and sectors that are a critical to our health care delivery system out of the decision making process, most notably safety net providers, like NYC Health +Hospitals and Federally Qualified Health Centers, actual medical providers, pharmacists, and consumer representatives. The goal of Medicaid is to provide health care to New Yorkers who can´t afford to pay for it. You would think that it would be critical to include those providing a significant part of that care in a conversation on how to redesign the program."

State Senator Gustavo Rivera is the Chair of the State Senate Health Committee.

STATE OF THE CITY 2020: MAYOR DE BLASIO AND CHANCELLOR CARRANZA ANNOUNCE ACCELERATED EXPANSION OF 3-K FOR ALL

City will now serve 26,000 three-year-olds across all five boroughs in 2020-21 school year

 As part of the Mayor’s 2020 State of the City address, Mayor de Blasio and Schools Chancellor Richard A. Carranza are announcing that 3-K is expanding to Districts 1 (Chinatown, East Village, Lower East Side) and 14 (Greenpoint, Williamsburg) in the Fall, bringing the total number of Districts to 16, spanning every borough across the City. In the Fall of 2020, 3-K will also expand to Districts 12 (Central Bronx) and 29 (Cambria Heights, Hollis, Laurelton, Queens Village, Springfield Gardens, St. Albans) as announced in 2018. 3-K and Pre-K applications open today.

Through this expansion, 3-K for All will serve 26,000 children citywide for the 2020-21 school year. This includes all 3-year-old children served citywide in Head Start and Child Care programs, which transferred from ACS to management by the DOE this summer to create a single early childhood system for families.

"Every family should be able to give their child the world, and expanding 3-K will help us set even more of our students on the path to success,” said Mayor Bill de Blasio. “3-K and Pre-K for All are unlocking the potential of every child and creating more opportunity for families.” 

"I'm so excited to make 3-K bigger and better than ever this fall, serving a total of 16 districts and up to 26,000 three year olds. We know that the City's youngest learners and their families benefit tremendously from getting in the classroom earlier, and I thank Mayor de Blasio for his leadership and support in growing early childhood education each year,” said Chancellor Richard A. Caranza.

3-K for All is the nation’s most ambitious effort to provide universal, free, full-day, high-quality early childhood education for every three-year-old child, and builds on the success of Pre-K for All. Research has found every dollar invested in high-quality early education saves taxpayers as much as $13 in the long-term.

These districts were selected based on need and space availability, and builds on the Mayor’s commitment to early childhood education. Each year, the City has outpaced its planned growth—originally, 3-K was expanding to only 8 districts by Fall 2020.

With this increased commitment, the full schedule for 3-K expansion is: 

·    2017-18: District 7 (South Bronx) and District 23 (Brownsville)

·   2018-19: District 4 (East Harlem), District 5 (Harlem), District 16 (Bedford-Stuyvesant), and District 27 (Broad Channel, Howard Beach, Ozone Park, Rockaways)

·   2019-20: District 6 (Washington Heights and Inwood), District 8 (Country Club, Pelham Bay, Throgs Neck, Castle Hill, Soundview, Hunts Point), District 9 (Grand Concourse, Highbridge, Morrisania), District 19 (East New York), District 31 (Staten Island), and District 32 (Bushwick)

·   2020-21: District 1 (Chinatown, East Village, Lower East Side), District 12 (Central Bronx), District 14 (Greenpoint, Williamsburg), and District 29 (Cambria Heights, Hollis, Laurelton, Queens Village, Springfield Gardens, St. Albans)

The application for 3-K opens today, Wednesday February 5, and will remain open until Friday, April 24. Families in these new districts will be notified as new program options are added to the application, and they will be able to update their application at any time before submitting. Families can find programs and apply online at MySchools.nyc. Families can also apply over the phone at 718-935-2009, or in person at a Family Welcome Center. The online application is available in ten languages, and families can submit an application over the phone or in person in over 200 languages. All New York City families with children born in 2016 can apply for pre-K, and all families with children born in 2017 can apply for 3-K in the 2020-21 school year.

3-K and pre-K enrollment specialists – experts on sites across each neighborhood – will also be available to help families throughout the process as they find a program that best fits their child’s needs. 

Pre-K for All and 3-K for All are part of the Mayor and Chancellor’s Equity and Excellence for All agenda, which is building a pathway to success in college and careers for all students. 3-K for All and Pre-K for All are strengthening foundational skills and instruction earlier; Universal Literacy is working towards ensuring every student is reading on grade level by the end of 2nd grade; and Algebra for All is improving elementary- and middle-school math instruction and ensuring that all 8th graders have access to algebra. Equity and Excellence for All is also 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 is giving 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, outlined in the 2017 New York City school diversity plan and through diversity pilots taking root in eight districts, are central to this pathway.

News From Congressman Eliot Engel

Engel Leads New York City Delegation to Protect Public Health Preparedness Program

 Congressman Eliot L. Engel led the entire New York City Congressional Delegation on a letter to the Assistant Secretary for Preparedness and Response (ASPR) about changes to the Hospital Preparedness Program (HPP), which could affect the City’s ability to respond to public health threats.

“Having a robust public health infrastructure is critical to protecting the City from 21^st century health threats,” said Rep. Engel. “The Hospital Preparedness Program provides crucial resources to support these efforts. Any changes to program need to account for the complex and unique threats that urban centers like New York City face.”

“The Assistant Secretary for Preparedness and Response must explain what methodology led to a cut to New York City’s Hospital Preparedness Program funding,” said New York City Health Commissioner Dr. Oxiris Barbot. “Coordination between public health departments and the health care system is critical for public health emergency response. As we are learning from the current coronavirus outbreak, the only way to prevent another outbreak is to maintain vigilance—and if you start cutting the budget, the cost down the road will be even greater. We look forward to working with Representative Engel and the New York City delegation on this important issue.”

HPP is the only source of federal funding for helping health care systems prepare and respond to complex health threats, including natural and man-made incidents. In 2019, ASPR proposed changes to HPP’s grant formula which could eliminate nearly 5% of the City’s HPP dollars, affecting local hospitals such as Montefiore Hospital-Wakefield Campus. This letter seeks additional information about ASPR’s changes to HPP.

Congressman Engel has been a long-time proponent of HPP. On June 4, 2019, he supported passage of the Pandemic and All-Hazards Preparedness and Advancing Innovation Act, which was signed into law and provides $385 million annually for HPP over the next five years. Engel is a member of the House Energy and Commerce Committee’s Health Subcommittee.

ENGEL STATEMENT ON THE END OF SENATE REPUBLICANS’ SHAM TRIAL

Representative Eliot L. Engel, Chairman of the House Committee on Foreign Affairs, today made the following statement:

“There’s no such thing as an acquittal when you don’t have a real trial. The Senate’s sham process was nothing more than an extension of the President’s coverup. Today’s vote was the ultimate demonstration that the Party of Lincoln has become the Party of Trump, and that for Republican lawmakers—with one courageous exception—there’s no duty or oath higher than showing loyalty to this President.

“The evidence is overwhelming that the President deserved to be impeached and removed. His abuse of power was blatant. His obstruction of a legitimate congressional inquiry was unprecedented; not even Richard Nixon went so far. There can be no justification for his actions. Those who voted not to remove him acted out of sheer partisanship and did damage to the institutions that underpin our democracy.

“Despite the Senate Republicans’ near total abdication of their responsibility, the House will not go along with the notion that this President is above the law. The Foreign Affairs Committee will push ahead with our oversight efforts to hold this administration accountable and to demonstrate to the American people that some of us in Washington still believe in the Constitution and the rule of law.”

Partnerships for Parks - Bronx News Blast-February

Partnerships for Parks is turning 25 this year!

Since 1995, PfP has been working side-by-side with communities across New York City to sustain parks through greening, beautifying, and programming. Join us to celebrate our 25th anniversary and envision the future at one of our upcoming events. The schedule will be available shortly on our website. Please sign up for our newsletter, and follow us on Facebook, Instagram, and Twitter for updates. Share your own photos with us using the hashtag #wearepfp.