PUBLIC ADVOCATE CALLS ON MAYOR TO DEFY GOVERNOR AND DISTRIBUTE VACCINE TO VULNERABLE NEW YORKERS, CHALLENGES CUOMO TO ISSUE FINE

 

Public Advocate Jumaane D. Williams issued the following statement after Mayor Bill de Blasio announced today that there are hundreds of thousands of vaccine doses available which the city has been unable to distribute to the elderly or essential workers as a result of state restrictions and the threat of fines. 

"On a day when thousands of New Yorkers tested positive for COVID-19, the city has hundreds of thousands of vaccines going to waste rather than to those in need. Mayor de Blasio should immediately direct NYC Health + Hospitals to distribute these lifesaving doses to the vulnerable populations next in line, regardless of state approval. If Governor Cuomo wants to issue a million-dollar fine to the city that he has already deprived of adequate financial aid, revenue raising, and borrowing authority, then I am ready to stand-in court or not- and defend the decision to protect as many people as possible, as quickly as possible."

Three Kings Event in 13th Council Distric

 

Balthasar, Melchior, and Gasper The Three Kings came to say hello to Councilman Mark Gjonaj at his office on Williamsbridge Road  Wednesday, and to help Santa give out a sleigh full of toys to the boys and girls who stopped by. The local McDonalds provided hot cocoa and those delicious McDonald cookies for the children to enjoy. 

Gifts for the children included a book, a toy, a hat or scarf, and taking your photo with the Three Kings and other spiritual leaders. The line stretched down and around the block as over one hundred children took part in the event.

Above - Councilman Mark Gjonaj with the three Kings and members of the Bronx McDonalds executive team.

Below - The line stretched down the block and around the corner.

Above - Members of the 45th Precinct Community Affairs Division were on hand for crowd control, and also to hand out the McDonalds cookies and hand sanitizer. 

Below - Santa with one of his favorite helpers Lilly Anna.

Above and Below - Santa helps children pick out their gifts.

A group photo with Councilman Gjonaj, The Three King, members of the Clergy who helped, Santa Claus, Executive Team members from the Bronx McDonalds, and some of the children who participated in the event.

Russian Hacker Sentenced To 12 Years In Prison For Involvement In Massive Network Intrusions At U.S. Financial Institutions, Brokerage Firms, A Major News Publication, And Other Companies

 

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that ANDREI TYURIN, a/k/a “Andrei Tiurin,” was sentenced in Manhattan federal court to 144 months in prison for computer intrusion, wire fraud, bank fraud, and illegal online gambling offenses in connection with his involvement in a massive computer hacking campaign targeting U.S. financial institutions, brokerage firms, financial news publishers, and other American companies.  TYURIN is charged with committing these crimes with Gery Shalon, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham,” Joshua Samuel Aaron, a/k/a “Mike Shields,” and Ziv Orenstein, a/k/a “Aviv Stein,” a/k/a “John Avery,” in furtherance of securities market manipulation, illegal online gambling, and payment processing fraud schemes perpetrated by Shalon, Aaron, Orenstein, and their co-conspirators.  TYURIN previously pled guilty to these charges, and was sentenced today before U.S. District Judge Laura Taylor Swain. 

Acting U.S. Attorney Audrey Strauss said:  “From his home in Moscow, Andrei Tyurin played a major role in orchestrating and facilitating an international hacking campaign that included one of the largest thefts of U.S. customer data from a single financial institution in history, stealing the personal information of more than 80 million J.P. Morgan Chase customers.  The conspiracy targeted major financial institutions, brokerage firms, news agencies, and other companies, and netted Tyurin over $19 million in criminal proceeds.  Now Tyurin has been sentenced to 12 years in prison for his crimes.”

According to the allegations contained in the Indictments to which TYURIN pled guilty, other filings in this case, and statements made during court proceedings, including TYURIN’s guilty plea hearing:

From approximately 2012 to mid-2015, TYURIN engaged in an extensive computer hacking campaign targeting financial institutions, brokerage firms, and financial news publishers in the U.S. (including but not limited to J.P. Morgan Chase Bank, E*Trade, Scottrade, and the Wall Street Journal), and was responsible for the theft of personal information of over 100 million customers of the victim companies.  TYURIN’s hack of J.P. Morgan Chase Bank alone resulted in the theft of personal information of over 80 million customers.  TYURIN engaged in these crimes at the direction of his partner Gery Shalon, and in furtherance of other criminal schemes overseen and operated by Shalon and his co-conspirators, including securities fraud schemes in the United States.  For example, in an effort to artificially inflate the price of certain stocks publicly traded in the U.S., Shalon and his co-conspirators marketed the stocks in a deceptive and misleading manner to customers of the victim companies whose contact information TYURIN stole in the intrusions. 

In addition to the U.S. financial sector hacks, from approximately 2007 to mid-2015 TYURIN also conducted cyberattacks against numerous U.S. and foreign companies in furtherance of various criminal enterprises operated by Shalon and his co-conspirators, including unlawful internet gambling businesses and international payment processors.  Nearly all of these illegal businesses, like the securities market manipulation schemes, exploited the fruits of TYURIN’s computer hacking campaigns.  TYURIN’s hacking activity included the targeting of companies known to be used for email marketing campaigns, competitor online casinos, and a merchant risk intelligence firm based in the United States, in order for the co-conspirators to monitor the firm’s efforts to audit potentially criminal online credit card transactions on behalf of major credit card networks, and thus avoid detection of their own criminal schemes.

In furtherance of his hacking activities, TYURIN used computer infrastructure located across five continents, which he controlled from his home in Moscow, and maintained persistent access over extended periods of time to the victims’ networks, regularly refreshing the stolen data by repeatedly downloading information from these companies.  And once his hacking activities were detected, TYURIN worked with Shalon to destroy the evidence of their criminal activity and undermine U.S. law enforcement’s efforts to identify and arrest them. 

Through these various criminal schemes, TYURIN, Shalon, and their co-conspirators obtained hundreds of millions of dollars in illicit proceeds, and TYURIN himself earned over $19 million in profits from his hacking activity.

TYURIN, 37, of Moscow, Russia, pled guilty to one count of conspiracy to commit computer hacking, one count of wire fraud, one count of conspiracy to violate the Unlawful Internet Gambling Enforcement Act, and one count of conspiracy to commit wire fraud and bank fraud.  In addition, TYURIN pled guilty to one count of conspiracy to commit wire fraud, and one count of conspiracy to commit computer hacking, from charges that were transferred from the Northern District of Georgia for purposes of his plea.  In addition to the prison term, Judge Swain ordered TYURIN to serve three years of supervised release, and to pay forfeiture in the amount of $19,214,956. The Court will determine TYURIN’s restitution obligations at a hearing scheduled for April 6, 2021.  TYURIN has been in U.S. custody since he was extradited from the country of Georgia in September 2018, and will commence serving his sentence immediately.   

Ms. Strauss praised the investigative work of the FBI and the U.S. Secret Service, and expressed her sincere gratitude to the Chief Prosecutor’s Office of Georgia and the Ministry of Justice of Georgia for their support and assistance with the extradition proceedings.  She also thanked the Securities and Exchange Commission, Homeland Security Investigations, the Financial Industry Regulatory Authority, the Office of International Affairs of the U.S. Department of Justice’s Criminal Division for its assistance with the extradition, and the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information sharing among the victim institutions.

The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Eun Young Choi, Noah Solowiejczyk, and Sarah Lai are in charge of the prosecution.

New York City Council’s 2021 Charter meeting, the Council will vote on the appointment of several new committee chairs.

 

The Council will vote to appoint Council Member Vanessa L. Gibson to serve as chair of the Committee on Oversight and Investigations. She is replacing former Council Member Ritchie Torres, now a representative for the 15th Congressional District. Council Member Gibson is currently chair of the Subcommittee on Capital Budget and Finance, a role she will be transitioning out of, and co-chair of the Women’s Caucus. The Committee on Oversight and Investigations has jurisdiction over investigating matters within the Council’s jurisdiction concerning property, affairs, or government of New York City, as well as the Department of Investigation.

The Council will also vote to appoint Council Member Helen Rosenthal to serve as chair of the Subcommittee on Capital Budget and Finance. Council Member Rosenthal will replace Council Member Vanessa L. Gibson as chair. Council Member Rosenthal is currently chair of the Committee on Women and Gender Equity, a role she will be transitioning out of. The Subcommittee on Capital Budget and Finance plays a critical role in the planning of the city’s budget and fiscal policy decisions. 

The Council will also vote to appoint Council Member Darma V. Diaz to serve as chair of the Committee on Women and Gender Equity. Council Member Diaz will replace Council Member Helen Rosenthal as chair. The Committee on Women and Gender Equity has jurisdiction over issues relating to advancing the economic mobility, social inclusion, leadership and civic participation of women and girls, domestic violence, Office to End Gender-Based Violence and the Commission on Gender Equity. 

The Council will also vote to appoint Council Member Diana Ayala to serve as chair of the Committee on Consumer Affairs and Business Licensing. Council Member Ayala is currently chair of the Committee on Mental Health, Disabilities, and Addictions, a role she will be transitioning out of, and co-chair of the Progressive Caucus. The Committee on Consumer Affairs and Business Licensing has jurisdiction over New York City’s Department of Consumer Affairs and Office of Nightlife, including practices and policies relating to New Yorkers’ consumer rights. 

The Council will also vote to appoint Council Member Farah N. Louis to serve as chair of the Committee on Mental Health, Disabilities and Addictions. Council Member Louis will replace current Council Member Diana Ayala as chair. Council Member Louis is currently vice co-chair for the Black, Latino, and Asian Caucus (BLAC) and co-chair for the Women’s Caucus. The Committee on Mental Health, Disabilities and Addictions has jurisdiction over the New York City Department of Health and Mental Hygiene (DOHMH) and the Mayor’s Office for People with Disabilities. 

The Council will also vote to appoint Council Member Kevin C. Riley to serve as chair of the Subcommittee on Landmarks, Public Sitings, and Dispositions. The Subcommittee on Landmarks, Public Sitings, and Dispositions reviews and makes recommendations on New York City’s designations of property as landmarks or historic districts, as well as decisions to site public facilities and decisions regarding the use of maritime facilities such as piers. 

Attorney General James Announces Arrests in Nearly Decade-Long Ponzi Scheme that Defrauded Investors Across New York and Nation of More Than $1 Million

 

Purported Managers of Headhunting Firms Charged with Money Laundering, Grand Larceny, Securities Fraud, and Scheme to Defraud

 New York Attorney General Letitia James today announced the arrests of two defendants charged with operating a nearly decade-long Ponzi scheme that defrauded investors from throughout New York and the rest of the nation of more than $1 million. Attorney General James today filed a 42-count felony complaint charging Carl R. Carro (59, of Walton in Delaware County) and James W. Doyle (72, of White Plains in Westchester County) — the purported managing directors of headhunting companies Endeavor Management Solutions, LLC and Endeavor Consultancy, LLC — of multiple counts of Money Laundering, Grand Larceny, Securities Fraud, and Scheme to Defraud.

“When New Yorkers put their hard-earned savings into an investment, they expect their money to work for them, but the greed of the operators of these corporations never gave victims a chance to make a profit,” said Attorney General James. “After nearly a decade, the Ponzi scheme perpetrated by Carl Carro and James Doyle fell like a house of cards, robbing most victims of thousands of dollars. Today, we’re holding these two men accountable for cheating investors and using investment funds to enrich and dig themselves out of a hole. My office will continue to use every resource at its disposal to hold accountable anyone who tries to cheat innocent New Yorkers out of their hard-earned savings.”

According to the Office of the Attorney General’s (OAG) felony complaint, between at least January 2012 and December 2020, Carro and Doyle solicited investments in their companies, Endeavor Management Solutions and Endeavor Consultancy, from over 50 victims from New York and from other states around the country. Carro and Doyle allegedly misrepresented to investors that Endeavor was a headhunting firm hired by prestigious clients to find candidates for openings on their boards of directors. Carro and Doyle are charged with luring investors with false promises of interviews for board positions, then offering purported no-risk investment opportunities in their firm. The two defendants allegedly promised their victims that investments would be held in an untouched cash reserve fund that purportedly held over $1 million and guaranteed a 10 to 20 percent return on investment after 30 days.

The complaint lays out that instead of holding the investments in a cash reserve fund, Carro and Doyle deposited investor monies into various accounts, none of which ever had a balance of more than $200,000. An OAG audit revealed that investor funds were used for personal expenses and to pay back previously defrauded investors. According to the audit, Carro and Doyle spent nearly $500,000 on cash withdrawals, more than $200,000 to pay credit card bills, squandered more than $57,000 on pet expenses, and exhausted more than $350,000 to pay previously defrauded investors, including over $170,000 in restitution to victims in Carro’s prior criminal cases. Carro and Doyle are charged with stealing between $15,000 and $30,000 from each of the more than 50 victims from 2012 to the present, with total losses to all victim-investors exceeding $1 million. 

To further their nearly decade-long scheme, Carro and Doyle allegedly engaged in a pattern of excuses and delay tactics regarding their inability to repay investors. These delay tactics included telling investors that the bank would not release their funds, when in fact the funds were already depleted; alleging that repayment checks were in the mail, only for investors to receive empty envelopes; and creating a fictitious attorney to act as in-house-counsel for Endeavor during disputes with investors’ over the return of their investments.

The felony complaint also lays out how the two defendants engaged in a complex money-laundering scheme to conceal and promote their ongoing crimes. Carro and Doyle allegedly used bank accounts at multiple financial institutions in an effort to disguise and conceal the true source and ownership of the money. The complaint further charges that the proceeds were laundered in a Ponzi-like manner to make repayments to previously defrauded investors, without revealing that the actual source of the repayments was funds from newly defrauded investors. While the defendants repaid some investors a very small percentage of their investment, most investors received no repayment at all. 

The OAG’s 42-count felony complaint — filed in Walton Town Court in Delaware County — charges Carro and Doyle, acting in concert, with two counts of Money Laundering in the Second Degree (a class “­­­C” felony), 19 counts of Grand Larceny in the Third Degree (a class “D” felony), 20 counts of Securities Fraud under the Martin Act (a class “E” felony), and one count of Scheme to Defraud in the First Degree (a class “E” felony).  

Carro and Doyle were arraigned today before the Honorable Jacqueline Lamport. Carro was remanded and Doyle was released on his own recognizance. 

The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty in a court of law.

Governor Cuomo Updates New Yorkers on State's Progress During COVID-19 Pandemic - JANUARY 7, 2021

 

8,548 Patient Hospitalizations Statewide

1,424 Patients in the ICU; 859 Intubated

Statewide Positivity Rate is 7.39%

197 COVID-19 Deaths in New York State Yesterday

 Governor Andrew M. Cuomo today updated New Yorkers on the state's progress during the ongoing COVID-19 pandemic.

"The holiday COVID hangover is here which is problematic enough, but with the introduction of the U.K. strain and the federal government's refusal to help contain it with common-sense testing requirements for international travelers, our work has become that much more complicated," Governor Cuomo said. "Despite this new challenge, New York is staying tough, and working with the health care community to ensure hospitals do not become overwhelmed. With those efforts ongoing, it's as important as ever that we collectively stay smart and commit ourselves to taking the steps necessary for stopping the spread."

Today's data is summarized briefly below:

• Test Results Reported - 238,550
• Total Positive - 17,636
• Percent Positive - 7.39%
• Patient Hospitalization -  8,548 (-117)
• Patients Newly Admitted - 1,050
• Hospital Counties - 56
• Number ICU - 1,424 (+16)
• Number ICU with Intubation - 859 (-18)
• Total Discharges - 107,243 (+924)
• Deaths - 197
• Total Deaths - 31,164

Former NYPD Sergeant Charged With 9/11 Benefits Fraud

 

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Dermot Shea, Police Commissioner of the City of New York (“NYPD”), and Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office (“DOJ-OIG”), announced today that SALLY SPINOSA was charged in Manhattan federal court with two counts of making false claims for monetary awards and medical benefits by falsely and materially overstating the amount of time she spent on recovery efforts after the September 11, 2001, attack on New York, as well as one count of aggravated identity theft for submitting a fraudulent affidavit in connection with her benefits application.  SPINOSA surrendered this morning and will be presented before Magistrate Judge Kevin Nathaniel Fox in Manhattan this afternoon.

Acting U.S. Attorney Audrey Strauss said:  “After the September 11 attacks on New York City, the brave men and women of the NYPD risked their lives and safety to rebuild the City.  As alleged, former NYPD sergeant Sally Spinosa exploited her position by brazenly – and falsely – claiming to have worked hundreds of hours in the recovery effort.  When law enforcement officers break the laws they are sworn to uphold, they do a disservice to their fellow officers, to the departments that employ them, and to the public they serve.  My Office will work tirelessly with our law enforcement partners to uncover and prosecute such conduct.”

NYPD Commissioner Dermot Shea said:  “There is no place in the NYPD for criminal behavior.  I commend Deputy Commissioner Joseph Reznick and Internal Affairs officers for their thorough investigation, in partnership with the U.S. Attorney’s Office, Southern District, and the Department of Justice Office of the Inspector General.”

DOJ-OIG Special Agent in Charge Russell W. Cunningham said:  “The victim compensation funds are meant to provide some relief for victims of the 9/11 terrorist attacks.  Spinosa allegedly tried to defraud the government and take benefits from the fund that she did not deserve.  The charges brought today show that the DOJ OIG will thoroughly investigate allegations of fraud of these funds.”

According to the allegations in the Complaint filed yesterday in Manhattan federal court[1]:

Following the attacks on New York and Washington, D.C., on September 11, 2001, Congress created certain programs to provide monetary compensation and medical treatment for victims of the attacks.  Specifically, Congress created the September 11th Victim Compensation Fund (the “VCF”) to provide compensation for any individual who suffered physical harm or was killed as a result of either the September 11th attacks or the debris removal and recovery efforts that took place in the immediate aftermath of the attacks.  Congress also created the World Trade Center Health Program (“WTCHP”) to provide, among other things, monitoring and medical treatment benefits for individuals who have or may develop health conditions due to exposure at disaster or recovery sites tied to the September 11th attacks.  Both the VCF and the WTCHP are funded by Congress.  An individual can be deemed eligible for a VCF award either by submitting medical documents and proof-of-presence documents directly to the VCF, or by going through the WTCHP’s process for having a medical condition certified.

SALLY SPINOSA served as an NYPD officer from in or about July 1986 until July 2019, and was a sergeant in the investigations unit of the NYPD’s Patrol Services Bureau of Staten Island (the “Staten Island Investigations Unit”) on September 11, 2001.  In 2010, SPINOSA participated in a screening interview with the WTCHP in which she falsely stated that she worked for hundreds of hours at the Fresh Kills Landfill in Staten Island, New York (the “Landfill”), from September 2001 to June 2002.  Similarly, in 2014, SPINOSA applied for a monetary award from the VCF, falsely claiming that she was at the Landfill for two hours each day for 62 straight days from September 20, 2001, to November 20, 2001.  In support of her application, SPINOSA submitted proof-of-presence documents, including an affidavit purportedly signed by one of her supervisors at the Staten Island Investigations Unit (“Officer-1”) stating that Officer-1 frequently visited the Landfill with SPINOSA to supervise subordinates (the “Officer-1 Affidavit”).

However, contrary to SPINOSA’s representations to the WTCHP and the VCF, in fact SPINOSA spent little to no time at the Landfill.  Indeed, during much of the time SPINOSA claimed to be working at the Landfill, SPINOSA was pregnant and doing limited work outside the Staten Island Investigations Unit’s offices, or was out of the office entirely on parental leave. Moreover, the Officer-1 Affidavit that SPINOSA submitted in support of her VCF application was fraudulent and was never signed by Officer-1.  

Nevertheless, and based on her false and fraudulent misrepresentations, in or around 2017 the WTCHP granted her benefits.  The WTCHP has since paid for certain medical visits and prescription drugs for SPINOSA.  While SPINOSA’s original fraudulent application to the VCF was denied in 2014, she reapplied in 2017 and 2018 relying on the same false and fraudulent information.  SPINOSA’s VCF claim remains pending.

SPINOSA, 55, of Freehold, New Jersey, has been charged with one count of submitting false claims, which carries a maximum penalty of five years in prison, one count of wire fraud, which carries a maximum penalty of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory penalty of two years in prison.  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.

Ms. Strauss praised the investigative work of the NYPD’s Internal Affairs Bureau and DOJ-OIG.

This case is being handled by the Office’s Public Corruption Unit.  Assistant United States Attorneys Kedar S. Bhatia and Catherine E. Ghosh are in charge of the prosecution.

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 text 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.

Attorney General James Provides Guidance to Law Enforcement Group on Evictions During COVID-19 Pandemic

 

Law Enforcement Handling of Eviction Warrants Established by

Emergency Evictions and Foreclosure Prevention Act

 New York Attorney General Letitia James today issued guidance to the New York State Sheriffs’ Association that provides key reminders regarding law enforcement's role in the eviction process during the coronavirus disease 2019 (COVID-19) public health crisis.

On December 28, 2020, the COVID-19 Emergency Evictions and Foreclosure Prevention Act of 2020 was signed into law, providing protections for tenants at risk of eviction, including clarification for law enforcement officials carrying out evictions. The law allows tenants to get an automatic stay of eviction in all cases through May 1, 2021 by completing and sending a hardship declaration to their landlord, the court, a sheriff, marshal, or city constable. The law also makes all eviction warrants — those currently issued and those that will be issued — defective unless they contain specific language referencing the hardship declaration.

“As the financial instability spurred by the coronavirus continues, it is imperative for the state to enforce laws that protect New Yorkers from unlawfully losing their homes,” said Attorney General James. “My office remains willing and able to assist local sheriffs and law enforcement departments as they familiarize themselves with the new law, which they are charged with enforcing.”

Attorney General James highlights the following reminders regarding hardship declarations:

• A tenant is allowed to provide a declaration to their landlord in English (or their primary language) at any point of the eviction process.
• The tenant may also provide the declaration to the court and/or the person that is evicting them (i.e. sheriff, marshal, city constable).
• Upon receipt of a declaration, landlords are prohibited from starting a new eviction case or continuing with an existing eviction case until at least May 1, 2021.
• The declaration should state that the tenant has either had an income loss; increased living costs related to essential work or health impacts (including from being unable to secure moving expenses); the inability to obtain employment or earn income due to responsibilities to care for children or elderly, disabled, or sick family members; or financial hardship during the COVID-19 pandemic.
• Additionally, hardship may include that the tenant, or someone in their household, will suffer a significant health risk of becoming ill from COVID-19 due to an underlying medical condition, if forced to move from their home.
  • A “significant health risk” related to contracting COVID-19 for a tenant or occupant is defined under the law as being over the age of 65, having a disability, or having an underlying medical condition, which may include, but is not limited to, being immunocompromised.

Upon receipt of a declaration, law enforcement officials are prohibited from evicting the tenant and occupants, and instead, must notify the court that a declaration has been received. The Office of the Attorney General (OAG) encourages sheriffs and other law enforcement officers who execute eviction warrants to provide declarations to all occupants when engaged in an eviction. The OAG continues to actively monitor housing practices throughout the state to ensure that unlawful evictions do not occur. The OAG has already sent cease and desist letters to landlords throughout the state who have unlawfully threatened tenants with eviction amidst the COVID-19 pandemic. Additionally, Attorney General James issued unlawful eviction guidance to law enforcement departments, and to New Yorkers highlighting how to navigate tenant issues related to COVID-19. Threats of eviction are not only illegal, but also damaging to the well-being of New Yorkers. 

All COVID-19 guidance on tenant protections, among other important updates for the public and businesses, can be found on the OAG website.