Acting Manhattan U.S. Attorney Announces Charges In $7 Million Scheme To Defraud Loan Programs Intended To Help Small Businesses During COVID-19 Pandemic

 

Taiwanese National Arrested for Misrepresenting Employee Payroll Figures for Multiple Companies to Receive COVID-19 Loan Funds; Spent Over $275,000 of Loan Proceeds on Personal Luxury Expenses

  Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Kevin Kupperbusch, Special Agent-in-Charge of the Eastern Region Office of the Inspector General of the U.S. Small Business Administration (“SBA”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of SHENG-WEN CHENG, a/k/a “Justin Cheng,” a/k/a “Justin Jung,” a Taiwanese national residing in New York, New York, for a fraudulent scheme to obtain over $7 million in government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic.  In connection with loan applications for relief available from the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program, CHENG used the identities of other individuals to falsely represent to the SBA and five financial institutions that companies controlled by him had a total of over 200 employees and paid $1.5 million in monthly wages, when, in fact, his companies appear to have a total of no more than 14 employees.  Of the approximately $2.8 million in PPP loan proceeds that CHENG has received to date, CHENG transferred over $880,000 abroad, withdrew approximately $360,000 in cash and/or cashier’s checks, and spent over $275,000 on personal expenses.  CHENG was charged with several counts of fraud, including major fraud against the United States, wire fraud, and bank fraud, as well as one count of aggravated identity theft for forging the electronic signature of a payroll company employee in payroll documents provided to financial institutions.  CHENG was arrested this morning and will be presented later today before U.S. Magistrate Judge Stewart D. Aaron.

Acting U.S. Attorney Audrey Strauss said:  “At a time when so many small businesses and their employees are facing dire financial straits, Sheng-Wen Cheng allegedly saw not an emergency lifeline but a gravy train.  As alleged, Cheng fraudulently applied for over $7 million in government-guaranteed loans under programs designed to provide relief for small businesses financially strapped by the COVID-19 pandemic.  Cheng allegedly lied to the Small Business Administration and several financial institutions about ownership of his companies, the number of people the companies employed, and how any loan proceeds would be applied, and he used forged and fraudulent documents in the process.  Of the nearly $3 million he actually received, Cheng allegedly transferred nearly $1 million to overseas accounts, and spent nearly $300,000 on personal luxury items such as an 18-carat gold Rolex, a $17,000-a-month luxury condo, and a Mercedes.  The paid vacation ended with his arrest this morning.”

FBI Assistant Director William F. Sweeney Jr said:  “While small business owners throughout the country sought loans from the Paycheck Protection Program in order to pay employee wages and maintain basic business functions, Justin Cheng, a self-proclaimed ‘serial entrepreneur,’ acquired more than $3 million in financial relief, which he then used for personal benefit, as alleged today. True entrepreneurs who have been trying to keep their businesses afloat during these trying times are directly affected by this type of fraud, while the taxpaying citizens of this country are indirectly impacted by all those who siphon money illegitimately from this multibillion-dollar program. This isn’t the first case of SBA fraud we’ve seen, and it won’t be the last, but rest assured those who try to buck the system will be met with federal criminal charges wherever and whenever possible.”

SBA Special Agent-in-Charge Kevin Kupperbusch, said:  “This is a critical time for our nation’s small businesses.  Our Office will continue to combat fraud schemes that involve SBA’s programs for personal gain and greed.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.” 

IRS-CI Special Agent in Charge Jonathan D. Larsen said:  “As alleged in the criminal complaint, Mr. Cheng fraudulently took advantage of programs meant to help those in need during a world-wide pandemic. IRS-CI will continue to prioritize investigations where criminals seek to steal money from well-deserving citizens amidst this ongoing public health crisis.”    

According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP.  Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs.  Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application.  The CARES Act also expanded the separate EIDL Program, which provided small businesses with low-interest loans that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19.  To qualify for an EIDL Program loan under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19.

CHENG, a Taiwanese national who entered the United States on a student visa, is a self-proclaimed “serial entrepreneur” who earned a Bachelor’s Degree from Pennsylvania State University (“Penn State”).  From at least in or about April 2020 through at least on or about August 13, 2020, CHENG appears to have used the identities of other individuals to submit online applications to the SBA and at least five financial institutions for a total of over $7 million in government-guaranteed loans through the SBA’s PPP and EIDL Program for several companies controlled by CHENG, namely Alchemy Finance, Inc., Alchemy Guarantor LLC d/b/a “Celer Offer,” Celeri Network, Inc., Celeri Treasury LLC, and Wynston York LLC (collectively, the “Cheng Companies”).  In connection with these loan applications, CHENG represented, among other things, that other individuals were the sole owners of the Cheng Companies and that the Cheng Companies together had over 200 employees and paid a total of approximately $1.5 million in wages to those employees on a monthly basis.  In fact, however, the Cheng Companies appear to have a total of no more than 14 employees. 

In order to support the false representations in the loan applications about the number of employees at and the wages paid by the Cheng Companies, CHENG submitted fraudulent and doctored tax records that were never actually filed with the IRS, and payroll records containing the forged electronic signature of a payroll company employee.  CHENG also submitted a payroll summary for one of his companies that listed the names of more than 90 purported employees, several of whom are current and former athletes, artists, actors, and public figures.  For example, the list of purported employee names included a co-anchor on Good Morning America, a former National Football League player, and a prominent Penn State football coach who is now deceased.

Based on the fraudulent PPP loan applications submitted by CHENG, a total of more than $3.7 million in PPP loans were approved for the Cheng Companies and approximately $2.8 million in PPP loan proceeds were deposited into bank accounts solely controlled by CHENG as of on or about August 13, 2020.  Based on bank records received to date, instead of using the PPP loan proceeds for payroll costs, mortgage interest, rent, and/or utilities for the purported Cheng Companies as required by the PPP, CHENG used a portion of the $2.8 million in loan proceeds he received as follows: 

• A total of at least approximately $881,000 in PPP loan proceeds was transferred to accounts of different individuals and entities located at banks based in Taiwan, the United Kingdom, South Korea, and Singapore.

• A total of at least approximately $360,000 in PPP loan proceeds appears to have been withdrawn in cash and/or cashier’s checks.
   
• A total of at least approximately $279,000 in PPP loan proceeds was spent on personal expenses, including the purchase of an 18-carat gold Rolex watch for approximately $40,000, rent and move-in fees for a $17,000 per month luxury condominium for CHENG, approximately $50,000 of furnishings for CHENG’s condominium, at least approximately $80,000 toward the purchase of a 2020 S560X4 Mercedes, and purchases totaling approximately $37,000 at Louis Vuitton, Chanel, Burberry, Gucci, Christian Louboutin, and Yves Saint Laurent.
   
• A total of at least approximately $160,000 in PPP loan proceeds was transferred to Alchemy Marketplace, another company owned and controlled by CHENG, in international accounts.

CHENG, 24 of New York, New York, is charged with one count of bank fraud, one count of wire fraud, and one count of making false statements to a bank, each of which carries a maximum sentence of 30 years in prison; one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison; one count of making false statements, which carries a maximum sentence of five years in prison; one count of making false statements to the SBA, which carries a maximum sentence of two years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.  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.

Any businesses or individuals who believe they may have been a victim in this investigation or have information regarding this investigation should call the FBI at 1-800-CALL-FBI (225-5324).

Ms. Strauss praised the investigative work of the FBI, SBA-OIG, and IRS-CI, and noted that the investigation remains ongoing.  Ms. Strauss also thanked U. S. Customs and Border Protection and the New York State Department of Labor for their assistance with the investigation.

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

[1] As the introductory phrase signifies, the entirety of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Operators Of Global Cryptocurrency Ponzi Scheme And Attorney Charged With Fraud And Money Laundering

 

Defendants Defrauded Victims of Tens of Millions of Dollars

  Audrey Strauss, Acting United States Attorney for the Southern District of New York,  and Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced the unsealing of an indictment charging PABLO RENATO RODRIGUEZ, GUTEMBERG DOS SANTOS, SCOTT HUGHES, CECILIA MILLAN, and JACKIE AGUILAR for their roles in an internationally coordinated fraud and money laundering ring involved in defrauding individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company.

The case has been assigned to U.S. District Judge George B. Daniels.  RODRIGUEZ and HUGHES are expected to be presented today before U.S. Magistrate Judge John Early of the Central District of California, MILLAN is expected to be presented today before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina, and AGUILAR is expected to be presented today before U.S. Magistrate Judge Christine A. Nowak of the Eastern District of Texas.  DOS SANTOS was arrested in Panama City, Panama, and is pending extradition to the United States. 

Acting United States Attorney Audrey Strauss said:  “As alleged, the defendants put a modern-day spin on an age-old investment scam, promising extraordinary rates of guaranteed return on phantom investments in cryptocurrencies.  Thanks to HSI, the defendants are in custody and facing serious criminal charges.”

HSI Special Agent-in-Charge Peter C. Fitzhugh said:  “Those arrested today have not only been charged with running a multimillion-dollar cryptocurrency investment fraud and money laundering ring, but also for allegedly spending their victim’s money on luxury cars, jewelry, and homes. These alleged fraudsters pulled out all the stops to sell their scheme to their victims with enticing recruitment events, then shamelessly used proceeds of their scheme to recruit additional victims through even more aggressive and lavish marketing pitches. As today’s arrests show, HSI New York’s El Dorado Task Force investigates financial crimes of every type, and will stop those who prey on unsuspecting investors who entrust their hard-earned savings to so-called financial advisors.  Those who violate this trust for their personal gain will face consequences for their actions.”

According to the allegations in the Superseding Indictment unsealed today:[1]   

RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and AGUILAR participated in a coordinated scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”).  Beginning in late 2015, AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN and AGUILAR, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry.  Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.

RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and AGUILAR traveled throughout the United States, and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships.  In furtherance of the AirBit Club Scheme, the Victims were induced to buy memberships in cash, including in the Southern District of New York.  Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”).  While Victims saw “profits” accumulate on their Online Portal, those representations were false: no Bitcoin mining or trading on behalf of Victims in fact took place.  Instead, RODRIGUEZ, DOS SANTOS, MILLAN, and AGUILAR enriched themselves, and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims. 

HUGHES, an attorney licensed to practice law in California, had previously represented RODRIGUEZ and DOS SANTOS in a Securities and Exchange Commission investigation related to another investment scheme known as Vizinova before aiding RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet. 

In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all.  In one instance, AGUILAR told one Victim of the AirBit Club Scheme who was complaining about her inability to withdraw AirBit Club returns that she should “bring new blood” into the AirBit Club Scheme in order to receive her returns.

In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the Airbit Club Terms and Conditions, due to the economic and financial crisis caused by (Covid-19).”

RODRIGUEZ, DOS SANTOS, HUGHES, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”).  The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds.  Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds.  Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme.  In total, the defendants laundered at least $20 million in proceeds of the Scheme through these various methods.

RODRIGUEZ, 37, of Irvine, California, DOS SANTOS, 45, of Panama City, Panama, and MILLAN, 37, of Greensboro, North Carolina, are each charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering.   HUGHES, 44, of Newport Beach, California, is charged with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.  AGUILAR, 55, of Plano, Texas, is charged with one count of conspiracy to commit wire fraud.

The wire fraud conspiracy and money laundering conspiracy charges each carry a maximum term of 20 years in prison, and the bank fraud conspiracy charge carries a maximum term of 30 years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge. 

Ms. Strauss praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force, HSI Panama, the HSI Panama City Transnational Criminal Investigative Unit, and HSI New Orleans.  Ms. Strauss further thanked the attorneys and investigators at the Securities and Exchange Commission whose expertise and diligence were integral to the development of this investigation.

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

 [1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.

AOC Backs Sanders for President, Ignores Biden in Brief Remarks

In one of the shortest speeches of the convention, progressive star Rep. Alexandria Ocasio-Cortez did not endorse Biden for president Tuesday but instead nominated his 2020 rival, Bernie Sanders. 

Her appearance was a part of the procedure of the convention to give a nod to the person who came in second place in the delegate count. 

“In a time when millions of people in the United States are looking for deep systemic solutions to our crises of mass evictions, unemployment, and lack of health care, and espíritu del pueblo and out of a love for all people, I hereby second the nomination of Senator Bernard Sanders of Vermont for president of the United States of America,” she said. 

Watch Rep. Alexandria Ocasio-Cortez's full remarks at the 2020 DNC

AUG. 18, 202001:37

It’s not a surprise that Ocasio-Cortez, who has spoken explicitly about her morals driving her politics, backed Sanders, who she also endorsed during the primaries. The self-described Democratic Socialist, known for stinging her critics on social media, is one of the most outspoken, progressive and youngest members of Congress. 

She spoke to those who are actively participating in social justice protests around the country and those who want a nationwide movement that fights for “social, economic, and human rights,” including health care for all, tuition-free higher education, a higher minimum wage and protecting unions. Ocasio-Cortez notably did not mention by name any of the signature policies that she and Sanders champion, including the Green New Deal or Medicare for All. She also does not mention Biden or Trump by name.

Bob King, the former president of the United Auto Workers union, nominated Bernie Sanders for president during the Democratic National Convention on Tuesday, as Sanders has delegates from the primary that allow for him to be nominated as a purely symbolic act. 

"Bernie’s moral clarity has emboldened the Democratic Party’s fight for justice," King said in nominating Sanders. "The grassroots energy of his supporters has cemented important advances in our platform. Bernie will continue to lead a movement that helps defeat Trump and delivers transformational change."

Mayor de Blasio on Measures Being Taken to Keep COVID-19 Cases Low

 

Mayor Bill de Blasio: Good morning, everybody. Something all New Yorkers should be proud of – people all around this country, all around this world are looking at New York City right now. And New York City is regarded as a major success story in the fight against the coronavirus. We were down for the count, we were the epicenter, and we have come back in a remarkable fashion because of you. I want to always be clear. The credit goes to New Yorkers. It goes to every single one of you who did the hard work of fighting back this disease. And we have been, throughout, guided by data, guided by science. We've done this the right way because we actually paid attention to the facts. We've talked to you about the facts and you listened and you acted. So, this is what we need to keep doing. We need to be vigilant. We need to be focused on continuing this fight until it's done.

 

Now, what I want to talk about today is a new phase that we're announcing, in the way we're going to provide you with the information to keep fighting this fight, to give you the best, most accurate information about what's happening, and to do it in a way that helps you recognize what you have to do because that's what's been the key ingredient. Now, the success we've had is absolutely connected to the level of testing that we've achieved. And it's been hard work. And it's often been lonely work for New York City because we haven't gotten the support we needed from the federal government. But New Yorkers have been getting tested and we want to double down on that because it's been crucial to our success. So, we need everyone to go get tested and we are today doing a special effort, a special outreach effort, a special blitz – Get Tested Tuesday. Everyone who has not yet got tested, especially who has not been tested at all, please get tested. If you haven't been tested in a long time, it's a good time to get tested. We have testing locations available at, check this out, over 200 sites across the five boroughs. There are lots and lots of options. Every single one of them will give you that test for free. It is easy. It is safe. So, we want to get this word out in every way we can. I'll be out there flyering today to let people know how important it is, to engage my fellow New Yorkers. But today, Get Tested Tuesday, a great day, if you haven't done so, to go out there and get that test.

 

Now, we, obviously, are focused every hour, every day on keeping the infection level low in New York City. That's what's been working for us and New Yorkers are doing great, but we have a real concern about travel. We have a concern about people coming in from outside, from the states and the areas that have been most deeply affected. We have a concern about New Yorkers going to those places and then coming home. So, look, let's start at the beginning. We've come so far and we need to, once and for all, defeat this disease. I'm going to urge all New Yorkers at this point to avoid travel to any of the states that are having a particularly bad problem with the coronavirus. Now, again, I understand for some people there's an emergency situation, a family crisis, or something they have to do for business, and they don’t have a choice, but I just want to urge people, if you have a choice, go to a place – if you're going to travel, go to a place that is not on the New York State list of states that are experiencing a profound coronavirus problem. If you have a choice in travel, don't go where the problem is for your own safety, for your family’s safety, for all New Yorkers’ safety because, of course, if you go there, there's a chance you bring that disease back. Now, if you do go, take the law seriously. You have to quarantine upon your return. So, we're focused on New Yorkers who travel and come back and we're obviously focused on folks who come in from outside New York City for whatever reason, that everyone has to focus on the mandatory 14-day quarantine.

 

Now the Sheriff's Office, as a lot of you know, has been doing extraordinary work to address this law, to make sure people know it is their obligation, been out there at checkpoints around the city, reminding people that it is the law to fill out that questionnaire about their travel, to give us a way to contact them and then to comply with the quarantine. And I want to remind everyone that failure to comply with the quarantine is a Class-B misdemeanor. It's serious stuff, but clearly, it's been talked about a lot in recent days. A lot of people haven't gotten the message. A lot of people don't necessarily take it as seriously as they need to. So, we're going another step today. Today I'll be signing an executive order and that will require hotels and short term rentals to have travelers from the restricted states fill out these forms before giving them access to their room. So, I want to be very clear about this – under this executive order that I'm about to sign any hotel, any short term rental must get that form from the traveler complete with the contact information and if they don't have that form from the traveler, they should not give them access to their room. Period. This is going to be now a rule here in New York City, because we have to get serious about the fact that there's a real danger here. We have to confront it. We have the right tool to confront it, which is the quarantine, but now people have to take that seriously. So, this executive order would be another step to make clear to everyone how serious it is. And there are real consequences for those who don't comply.

 

[Mayor de Blasio signs executive order]

 

Okay. Now, the executive order will add another tool to our arsenal, the ways we are going about making this very clear to folks. And, again, this is going to be part of a series of stepped up actions to make clear just how serious this quarantine is. And you're going to see the sheriff and his team out there a lot around New York City. They're doing an extraordinary job. Here to tell you what else we'll be doing to make sure that people quarantine appropriately, Sheriff Joe Fucito.

 

New York City Sheriff Joseph Fucito: Thank you, Mr. Mayor. I wanted to make a very brief statement. Keeping New York infection rates low is one of the most critical public safety and health initiatives facing the city, and we must continue to do our part, to keep each other safe. For New Yorkers, I offer simple advice, avoid traveling to areas with high rates of coronavirus and if travel is necessary, comply with the quarantine requirements. For travelers to New York City, the new executive order is designed to safeguard the health of all residents. The Sheriff's Office in coordination with the Department of Health and Mental Hygiene wants to have a measured response that gives visitors all the convenience to complete the state travelers forms and comply with the quarantine and all the authority of law to ensure it's obeyed. Failure to comply with the Mayor's emergency order is a Class-B misdemeanor and noncompliance with completing the form or following the quarantine mandate is a crime. In addition to criminal penalties and monetary fines, you may be subject to civil commitment until you comply with these important provisions of law. For travelers, this is a threshold moment. What you do and how you act can save someone's life. So, please take a moment and put a stranger's needs before your own desires. Thank you for your anticipated cooperation and please be governed accordingly. Now, the Mayor has asked me to describe a little bit of what our enforcement actions will consist of. We are going to continue to have checkpoints throughout different entry points into New York City. And we're also going to investigate large gatherings that are illegal even before COVID-19 hit New York City. It is important to note that we must work together to stop the coronavirus and that means following social distancing mandates. Thank you.

 

Mayor: Thank you very much, Sheriff. Again, thank you to you and your team. The work you're doing literally is life saving and we're so appreciative for it. Now, everyone, again, what's important is to use the laws, use these rules to fight back this disease, keep the infection rate low. That’s what's going to save lives, that's what's going to allow us to bring back New York City, to give people back their livelihoods. It all connects. So, we are doing all this to get us to a better place. What we're absolutely certain of is that the information we share with the public has been crucial. The public, in this case, has been so deeply desirous of more and more information, more clarity. People all over New York City want to know what's going on, they want transparency, they want clarity. It's helping them make the right decisions. So, one of the things that we've been focused on throughout this crisis is how to present the best possible information to all New Yorkers.

 

Starting today, we're going to provide a bigger timeframe for the information we provide. We're going to show the last four weeks of data together. It'll be broken out into categories that make it a lot clearer what's going on and where we stand in the battle against the coronavirus. Now, right now, New York City makes more data available in a more transparent fashion than any city in America. And I think that is directly related to the success we've had. The fact that people take that information and they act on it. So, we will continue to improve it and update it. And one of the areas we've looked at is our indicators. Now, basically from the beginning of this crisis, we've used more or less the same type of indicators. But as we've looked at the situation, we recognize that there is a changing reality. Some of the thresholds we have set in the past, need to be tightened up because we need to go farther. It's great that we fought back the coronavirus this far, but we're not done. We want to push it down even more. So, we're going to be changing some of our approach to the indicators to make clear what we need in this moment and to give you the most accurate information. Here to tell you about the changes, our Health Commissioner, Dave Chokshi.

 

Commissioner Dave Chokshi, Department of Health and Mental Hygiene: Thank you, Mr. Mayor. From the beginning, core components of our response have been transparency and data. We set indicators that we have watched like hawks. However, thanks to what New Yorkers have done the context has changed. With lower transmission we need more precise indicators that allow us to zero in on how COVID is spreading. So, we will be making changes to the data on the Health Department's website starting today. First, we will keep hospital admissions for COVID-like illness on our dashboard as a general marker of disease activity. But we will add the percent of patients with COVID-like illness who actually test positive to make this indicator more precise. As we head into flu season, we need to be able to distinguish flu patients who often have COVID-like symptoms from COVID patients to have an accurate read of what is happening in our communities. Precision is the name of the game. And so, we will also change reporting of the percent of COVID tests that are positive to include two decimal places. For example, you'll see 1.80 percent rather than two percent. And we'll lower the threshold for positive test results from 15 percent to five percent. The higher threshold was an appropriate benchmark for reopening as we transitioned to lower levels of disease transmission. The new lower milestone will alert us earlier if we need to be concerned. We will also add an indicator on new daily cases reported in the city. We'll use a seven-day average to smooth out day to day fluctuations in this new indicator. Along with the percent positive results, this will give us a more complete view of COVID circulating in our city. We want to see the absolute number of new cases remain as low as possible. Other indicators do not have the utility that they once had, like the Health + Hospitals ICU capacity.

 

I do want to take a moment to emphasize how much removing this indicator means to me. Having served at H + H during the peak, I remember how tested our ICU capacity was. It's a marker of our progress that we're able to change out this indicator. The current context is also informing updates to our website. To date, we have shared aggregate numbers that span the duration of the pandemic, which we will continue to do, but we recognize that there's interest in knowing what is happening in the more recent past, both at the city, as well as the neighborhood level. So, we will present case and fatality numbers and rates for the most recent four-week period. Our website will also soon feature antibody test results by ZIP code, with the capacity to organize the data by age, borough, neighborhood, poverty, and sex. We will be the first jurisdiction in the nation to present our antibody data this way. While there is still much to learn about the science of COVID-19 antibody testing, it is an important element to consider when understanding the epidemiology of COVID.

 

Finally, I just want to recognize the staff at the Health Department who work incredibly hard to make this data available to New Yorkers. Sound data is the lifeblood of our response and it can save lives. So, thanks to my staff and thank you to all of you for getting this information to New Yorkers.

 

Mayor: Thank you so much, Dave. And Dave, to you and your whole team, thank you. This is really good work and I know work you've put yourself into immediately to figure out what is the best way to give information to all New Yorkers and the best way to present our reality as it continues to evolve. And thank God it has been evolving in a good direction because everyone's hard work. So, here are our newest indicators.

 

Indicator one, daily number of people admitted to New York City hospitals for suspected COVID-19 – so, again, the threshold remains 200 patients, today's report only 44 patients. That's great. And now we'll be talking every day about the actual percent testing positive for COVID-19. That is 13.3 percent. So, again, folks come into the hospital, present symptoms, might be COVID, we're using the overall number of the people who present symptoms, but then we're also giving you the updated number once the tests are provided to see what we came up with. So, 13 percent actually testing positive for COVID-19 within that group.

 

Okay. A new metric now, number two, new reported cases over a seven-day average. Okay, so this is brand new. We're setting a threshold here of 550 cases [inaudible] over time, of course, daily counts of how many new cases of people testing positive for COVID-19. This one works simply, we take seven days of data and divide by seven, come up with a daily average and report the most recent daily average. So, threshold of 550, today's report 328 cases.

 

And then finally, percentage of people tested positive citywide for COVID-19, new threshold, five percent. So, again, we've gone from 15 percent down to a much more stringent five percent. We think this is now the right threshold for our current condition, where we want to keep beating this disease back even more. Happy to say today's report, 1.56 percent. So, these new indicators I think will give us a really good clear picture. And today that picture is a very positive one thanks to all of you.

Governor Cuomo Announces Suspension of 16 Additional New York Bars' Liquor Licenses for Egregious Violations of Coronavirus-Related Regulations

 

148 Businesses' Liquor Licenses Have Been Suspended During Public Health Emergency

Multi-Agency Task Force Conducted Over 3,300 Compliance Checks this Weekend, Observing 66 Additional Violations in New York City and on Long Island

812 Charges Have Been Filed and Processed To Date; Updated List of Suspensions and Charges Available HERE

  Governor Andrew M. Cuomo today announced the state has suspended liquor licenses for sixteen additional bars in New York State after finding egregious violations of pandemic-related Executive Orders, bringing the total number of liquor licenses suspended during the coronavirus pandemic to 148. Between Friday and Sunday nights, the state's multi-agency task force -- led by the State Police and State Liquor Authority -- conducted 3,375 compliance checks, documenting violations at 66 establishments. Businesses found in violation of COVID-19 regulations face fines up to $10,000 per violation, while egregious violations can result in the immediate suspension of a bar or restaurant's liquor license. 

"Five months into this pandemic, New Yorkers have bent the curve -- achieving and maintaining one of the lowest rates of infection in the country, including ten straight days with less than 1% of tests returning positive -- but with outbreaks across the nation, we cannot let our guard down. These bar regulations are designed to keep New Yorkers safe, and the State Liquor Authority and State Police are stepping up to supplement local enforcement and make sure the rules are followed," Governor Cuomo said. "My message to bar owners is the same: this is about protecting the health of your employees, your patrons, and the public writ large. These are serious violations, and we are taking aggressive action because there are simply no more excuses for non-compliance."

State Liquor Authority Chair Vincent Bradley said, "The hard work of the task force appears to be having a positive effect on compliance with the Governor's Executive Orders. But as long as the coronavirus continues to present a very real and dangerous threat to our communities, we will continue our efforts to hold licensees accountable."

The sixteen establishments issued emergency orders of summary suspension from the State Liquor Authority Board are located in New York City, the Mohawk Valley and on Long Island.

In New York City, that includes:

• Bronx - 3
• Brooklyn - 3 
• Manhattan - 6
• Queens - 1

Those outside of New York City include:

• Herkimer - 1
• Oneida - 1
• Nassau - 1

The emergency suspensions were ordered by Chairman Bradley, Commissioner Lily Fan and Commissioner Greeley Ford at special meetings of the Full Board on August 14th, 15th and 16th, conducted by a digitally recorded video under social distancing guidelines. Emergency Summary Suspensions are imposed when the SLA finds the continued operation of a licensed business threatens public health and safety. Suspension orders are served immediately and remain in effect indefinitely, with the maximum penalty including the permanent revocation of the license and fines of up to $10,000 per violation. Licensees subject to an emergency suspension are entitled to an expedited hearing before an SLA Administrative Law Judge.

The bars suspended over the weekend are listed below, along with information on their violations and the date of their suspensions.

"River's Edge" at 657-659 Lenox Avenue in Manhattan, on August 16, 2020 

On August 15th, investigators with the state's multi-agency task force observed approximately fifteen patrons standing and drinking directly outside the premises, most without facial coverings. Inside, investigators documented five patrons sitting at the bar consuming alcohol, in flagrant violation of the Governors' Executive Order in place since March 16, 2020 restricting indoor dining. Investigators also observed three employees not wearing facial coverings and found no evidence that food was being served -- in violation of the state's Alcohol Beverage Control Law dating back to 1964.

"El Porton Bar & Restaurant" at 576 Southern Boulevard in the Bronx, on August 16, 2020 

On August 15th, investigators with the state's multi-agency task force observed eleven patrons consuming alcohol inside the premises, in violation of the Governors' Executive Order in place since March 16, 2020 restricting indoor dining. 

"El Viejo Gran Café" at 498 East 138th Street in the Bronx, on August 16, 2020

On August 15th, investigators with the state's multi-agency task force observed six patrons consuming alcohol and eating inside the premises in violation of the Governors' Executive Order restricting indoor dining, in addition to two employees and the owner without facial coverings. 

"La Espiga 3 Estrellas" at 558 Southern Boulevard in the Bronx, on August 16, 2020 

On August 15th, investigators with the state's multi-agency task force observed eleven patrons consuming alcohol and eating inside the premises in violation of the Governors' Executive Order restricting indoor dining.

"Palace of Zuly" at 913 Wyckoff Avenue in Queens, on August 16, 2020 

On August 15th , NYPD officers observed sixteen patrons consuming alcohol and eating inside the premises, including several at the bar sitting shoulder-to-shoulder, in violation of the Governors' Executive Order restricting indoor dining. Two employees and a manager were observed without facial coverings. The officers also found the business illegally selling hookah without a permit.

"Villa's Lounge 2" at 130-132 Audubon Avenue in Manhattan, on August 16, 2020 

On August 14th, as investigators with the state's multi-agency task force approached the premises, they heard loud music, which was encouraging approximately twenty patrons to drink and congregate directly in front of the restaurant after the 11:00 p.m. curfew for outside dining in New York City. Tables were blocking pedestrian walkways and were not properly spaced, with numerous patrons standing shoulder-to-shoulder without facial coverings. There was no food observed being served during the inspection, with investigators also documenting two employees and a manger without facial coverings.   

"Tempest Bar" at 407 8th Avenue in Manhattan, on August 15, 2020   

On August 14th, investigators with the state's multi-agency task force observed approximately twenty patrons standing and drinking directly outside the premises. Inside, investigators documented twenty patrons consuming alcohol while standing at the bar in flagrant violation of the Governors' Executive Order in place since March 16, 2020 restricting indoor dining. 

"Picante" at 3424 Broadway in Manhattan, on August 15, 2020

On August 15th, at approximately 1:00 am -- two hours after New York City's curfew for outdoor dining -- investigators with the state's multi-agency task force observed at least ten patrons standing in front of the premises without masks, consuming alcohol at a plainly illegal stand-up bar window. In addition to the illegal bar window, investigators also observed a live DJ, creating a nightclub atmosphere. In addition, four patrons were found standing and drinking inside the premises at the bar, four employees working in the kitchen were observed without facial coverings, and the evidence reflected no food was being served with alcohol. 

"Rico Pollo" at 3352 Fulton Street in Brooklyn, on August 15, 2020   

On August 13th, investigators with the state's multi-agency task force observed two patrons inside the premises eating and drinking, in addition to several patrons lined up inside without facial coverings ordering food, all in violation of the Governors' Executive Orders in place since March 16, 2020 restricting indoor service. At least ten employees were observed without facial coverings, including the manager, who admitted he could not control the crowds gathered inside. The kitchen was also observed to be extremely unsanitary and a serious health hazard. 

"Juanito's Grocery" at 144 Sherman Avenue in Manhattan, on August 15, 2020    

On August 14th, NYPD officers and investigators with the state's multi-agency task force discovered the licensed grocery store -- which is not permitted to serve alcohol for on-premises consumption at all -- operating as an outdoor nightclub, with table and chairs set up outside, a speaker blasting music, and a window through which alcohol was being served. Approximately 25 patrons were congregating, drinking, and dancing in front of the premises. In addition, hard liquor was being served even though the grocery was only licensed to sell beer. NYPD officers arrested the store clerk, charging her with illegally selling prescription medications, possession and sale of liquor without a license, and failure to comply with social distancing regulations.

"Side Street" at 2 Otsego Street in Mohawk, on August 15, 2020   

On August 14th, investigators with the state's multi-agency task force entered the premises and found a standing room only bar scene, with approximately 30 patrons in the bar area, none of whom were wearing facial coverings. Investigators ordered and were served alcoholic beverages without being seated and without food from a bartender who was not wearing a facial covering. The investigators also observed numerous patrons drinking and milling about, including two who were playing pool near the back of the premises.

"Dick Smith's Tavern" at 1310 Schuyler Street in Utica, on August 15, 2020 

On August 14th, investigators with the state's multi-agency task force observed approximately 30 patrons standing and congregating around the bar area inside the premises, with every seat at the bar filled and several patrons walking around, drinking and mingling without facial coverings. Investigators ordered and were served alcoholic beverages without food from a bartender who was not wearing a facial covering, and noted no patrons ordered or consumed food.

"El Ambiente Restaurant Patio and Lounge" at 2896 Fulton Street in Brooklyn, on August 14, 2020

On August 13th, investigators with the state's multi-agency task force observed over 80 patrons -- including some who were standing and not socially distancing -- consuming alcohol in a cramped, indoor space with tables too close together. In addition, at least twelve patrons were congregating in front of the premises, drinking and ignoring social distancing guidelines. Investigators also documented several employees without proper facial coverings, including a bartender, a valet, a member of the kitchen staff, and two members of the waitstaff.    

"Mio Posto" at 777 West Beech Street in Long Beach, on August 14, 2020

On August 8th, officers with the Long Beach Police Department, responding to complaints from this New Yorkers in this residential neighborhood, heard extremely loud music emanating from the premises and observed twenty patrons congregating outside. Upon entering, officers observed approximately 200 patrons inside the restaurant, which has a maximum occupancy of just 145 under COVID-related regulations. Approximately half of the patrons were in a room with no tables, standing, drinking, ignoring social distancing guidelines, and not wearing facial coverings. The Long Beach Police Department reports that they had previously issued warnings to the premises on two separate occasions in late July. 

"St. Dymphna's" at 117 Avenue A in Manhattan, on August 14, 2020

On August 11th, investigators with the state's multi-agency task force observed numerous patrons standing, drinking, and ignoring social distancing guidelines outside the premises, with multiple customers observed ordering beverages from a takeout window. Investigators checking sales receipts found that practically no food was purchased with orders that evening, in violation of the Governor's Executive Orders. This was the third strike for this business, a repeat offender that the SLA had charged for violating the Governor's Executive Orders on June 26th and on August 10th.   

"Faro Sports Bar & Lounge" at 3247 Fulton Street in Brooklyn, on August 14, 2020

On August 13th, investigators with the state's multi-agency task force found a speaker blasting loud music in front of this premises, encouraging numerous patrons to congregate and linger directly outside. In addition, five employees were observed without facial coverings. Investigators determined that the establishment's liquor license had been illegally sold to a third party without the approval of the SLA and charged the licensee with "availing" the license by allowing persons who are not approved by the SLA to own or operate the premises. With the SLA-approved licensee not present to ensure the public could be protected from the spread of COVID-19 and other dangers, the Board suspended the premise's license.

Governor Cuomo Announces Gyms and Fitness Centers Can Reopen Starting August 24

 

All Gyms and Fitness Centers Able to Open by September 2; Indoor Fitness Classes May Be Delayed Beyond September 2

Facilities Required to Operate at 33 Percent Capacity and Follow Rigorous Health and Safety Protocols, Including Masks at All Times

  Governor Andrew M. Cuomo today announced that gyms and fitness centers can reopen in New York starting August 24. Facilities that reopen will be subject to rigorous health and safety standards and all gyms and fitness centers will be able to open by September 2.

"As New York maintains daily positive test rates below 1 percent, the State has determined that local elected officials can allow gyms and fitness centers to reopen at 33 percent capacity while following rigorous safety protocols, including wearing masks at all times," Governor Cuomo said. "While it's encouraging that we've reached the point where it's acceptable for them to begin reopening in our communities, this is not the time to forget that the pandemic is ongoing. New Yorkers must closely adhere to the guidelines and local health departments are required to strictly enforce them to help ensure gyms and fitness centers reopen safely and protect the public health."

Local elected officials may choose to delay the reopening of gyms and fitness centers until September 2 to, in part, provide time for required local health department inspections, and may also choose to delay the reopening of indoor fitness classes until a date beyond September 2. In New York City, the Mayor will determine whether gyms and fitness centers should postpone reopening. Outside of New York City, the county's chief executive - county executive, administrator, manager, or chair of the local elected legislative body - will determine whether gym reopening needs to be postponed.

Localities can also determine whether gyms postpone resumption of indoor classes. In New York City, the Mayor and, throughout the rest of the state, the county's chief executive may decide to opt-out of indoor group fitness and aquatic classes within their jurisdiction, postponing their resumption until a later date. Local health departments must inspect gyms prior to reopening, or within two weeks of reopening, to ensure strict adherence to Department of Health guidance.

Guidance for Gyms and Fitness Centers

• Capacity: 33% occupancy limit.
• Access: Sign-in with contact information and health screening required.
• PPE: Appropriate face coverings required at all times.
• Distancing: 6 feet of separation at all times.
• Hygiene/Cleaning: Cleaning and disinfection supplies made available to customers; shared equipment cleaned after every use; staff must also be available to clean and disinfect equipment in between uses; rental equipment must be cleaned and disinfected between customer use.
• Classes: By appointment/reservation only; maximum class capacity capped at number of people that can adhere to the 6-feet social distancing rules, but in no case more than 33% of the typical class size (i.e., leave stations, cycles, etc. vacant); classes should be scheduled to allow additional time for cleaning and disinfection in between each session.
• Amenities: Water bottle refill stations permitted, but not shared water fountains; communal showers are closed, but individual showers/stalls can remain open so long as they are cleaned in between use.
• Air Handling Systems: Gyms should operate at MERV-13 or greater; if they are unable to operate at that level, they must have heating, ventilation, and air conditioning (HVAC) professional document their inability to do so and adopt additional ventilation and mitigation protocols from American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and the Centers for Disease Control and Prevention (CDC).
• Inspection: Local health departments shall inspect before or within two weeks of the gym/fitness center opening to ensure compliance.

United States Attorney's Office District of Arizona July 2020 Immigration and Border Crimes Report

 

I.  Illegal Reentry After Deportation (8 U.S.C. 1326)

157 individuals were charged in July with illegal reentry

A.  135 of those 157 individuals had previously been convicted of non-immigration criminal offenses in the U.S.

Of the 135 individuals with non-immigration criminal records:

1.  25 had violent crime convictions, including:

1 individual had a homicide conviction

7 individuals had sex offense convictions

10 individuals had domestic violence convictions

2.  26 had property crime convictions

3.  29 had DUI convictions

4.  66 had drug crime convictions

B.  81 of those 135 individuals had been deported three or more times

II.  Alien Smuggling (8 U.S.C. 1324)

28 individuals were charged in July with alien smuggling

III.  Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)

0 individuals were charged in July with illegal entry on the CCI calendar

Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.

These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.

*The Department of Homeland Security instituted a policy in late March of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.