VACCINE FOR ALL: MAYOR DE BLASIO, TASKFORCE EXPAND EQUITY EFFORT

 

Thirty-three neighborhoods around the city were identified based on equity burdens and the impact of COVID-19 in 2020

 Mayor Bill de Blasio and the Taskforce on Racial Inclusion and Equity today announced the next phase of its Vaccine for All effort and released demographic information of vaccine recipients. With an expanded list of 33 neighborhoods identified by the Taskforce, the City will use this data to broaden its outreach and education to address vaccine hesitancy, prioritize appointments, add new vaccine sites, and improve the scheduling website to ensure the pace of vaccination is consistent throughout the city.

"We launched our vaccine effort with a clear commitment to provide a vaccine for all New Yorkers," said Mayor Bill de Blasio. “Now we are going even further to ensure the vaccine reaches everyone, equally, with a focus on the neighborhoods we know have borne the brunt of COVID-19.”

“Ensuring equity among our communities is central to our city’s recovery efforts. We want all of our communities to trust the vaccine’s efficacy and have access to it,” said First Lady Chirlane McCray. “As distribution expands, we will continue gathering more data and processing what we have learned over the past year so that our hardest hit neighborhoods are fully supported and included in the plan.”

 

Equitable distribution of the vaccine has been the driving force of the City’s Vaccine for All effort. The majority of City vaccination sites are already located in the 33 Taskforce neighborhoods, as well as other, soon-to-open hubs, like Citi Field and Yankee Stadium.  The City has also mounted an extensive outreach campaign, holding informational and educational events for residents, providers, partners, and elected officials in Task Force neighborhoods and other areas across the city. With the assistance of trusted community partners, the City has distributed tens of thousands of pieces of literature to spread the word of a safe and effective vaccine to residents in priority neighborhoods and held training events so community partners can support navigation of vaccination services. The City will also continue to hold regular community conversations to address vaccine hesitancy and elevate community feedback on vaccination rollout and access.

 

To deepen this work, City will now prioritize appointments for residents at vaccine sites in the Taskforce neighborhoods, setting aside specific hours and slots. For eligible essential workers in the Taskforce neighborhoods, the City will create 'family plans' - allowing the workers to schedule appointments for eligible family members on-site. To improve accessibility, the City’s appointment scheduling site will now be available in a total of 11 languages, including English, Arabic, Urdu, Bengali, French, Haitian-Creole, Korean, Polish, Russian, Spanish, and Simplified Chinese.

Building on the initial list of 27 neighborhoods, the Taskforce has broadened its criteria and expanded to a total of 33 neighborhoods, now including Williamsbridge and Baychester, Midwood, Jackson Heights and East Elmhurst, Kew Gardens and Woodhaven, Richmond Hill and South Ozone, and Queens Village. These neighborhoods were added based on a range of factors including high COVID-19 mortality and case rates, high prevalence of chronic illness, presence of overcrowded housing, the number of individuals experiencing poverty, and other preexisting health disparities.

To address the key drivers of vaccine hesitancy, the NYC Vaccine for All campaign will build on its previous work and launch a "Vaccine Facts” campaign (or “Vax Facts”) in February to address the key drivers of vaccine hesitancy across broadcast, digital, and print platforms, including local and ethnic media. The City will also partner with local leaders for tailored community engagement and host days of action, deploying census-style outreach campaign to build trust and distribution vaccine FAQs in the 33 neighborhoods.

The full list of 33 Neighborhoods identified by the Taskforce is below.

Task Force Neighborhoods

 

Neighborhoods	Borough	ZIP Codes (modZCTAs)
Lower East Side and Chinatown	Manhattan	10002, 10003, 10009, 10013
Morningside Heights and Hamilton Heights	Manhattan	10025, 10027 10031, 10032
Central Harlem	Manhattan	10026, 10027, 10030, 10037 10039
East Harlem	Manhattan	10029, 10035
Washington Heights and Inwood	Manhattan	10032, 10033, 10034, 10040
Mott Haven and Melrose	Bronx	10451, 10454, 10455, 10456
Hunts Point and Longwood	Bronx	10455, 10459, 10474
Morrisania and Crotona	Bronx	10456, 10459, 10460
Highbridge and Concourse	Bronx	10452
Fordham and University Heights	Bronx	10453, 10458
Belmont and East Tremont	Bronx	10457, 10458
Kingsbridge	Bronx	10463, 10468
Parkchester and Soundview	Bronx	10472, 10473
Williamsbridge and Baychester, Edenwald	Bronx	10466, 10467, 10468
Bedford Stuyvesant	Brooklyn	11205, 11206, 11216, 11221, 11233, 11238
Bushwick	Brooklyn	11206, 11207, 11221, 11237
East New York and Starrett City	Brooklyn	11207 11208, 11239
Sunset Park	Brooklyn	11220, 11232
Coney Island	Brooklyn	11224, 11235
Flatbush and Midwood	Brooklyn	11226
Brownsville	Brooklyn	11212, 11233
East Flatbush	Brooklyn	11203, 11226
Flatlands and Canarsie	Brooklyn	11236
Queensbridge and Astoria	Queens	11101
Jackson Heights	Queens	11368, 11369
Elmhurst and Corona	Queens	11368
Briarwood, Flushing South	Queens	11435
Kew Gardens and Woodhaven	Queens	11419, 11421
Woodhaven, Richmond Hill, South Ozone Park	Queens	11419, 11420
Jamaica and Hollis	Queens	11412, 11423, 11432, 11433, 11434, 11435, 11436
Queens Village	Queens	11429
Rockaway and Broad Channel	Queens	11691, 11692, 11693, 11694
St. George, Stapleton, Port Richmond	Staten Island	10301, 10303, 10304, 10310

“Equitable vaccine distribution, especially to neighborhoods most impacted by COVID and long histories of racism, must be front and center if we are to achieve a full and fair recovery for our City, said Deputy Mayor for Health and Human Services and Task Force Co-Chair Melanie Hartzog. “Our Task Force on Racial Inclusion and Equity is making sure our efforts are focused on reaching these communities most in need, addressing hesitancy, building trust, and expanding access so all New Yorkers feel safe and informed getting their shots — which will make our whole city safer.” 

 “Data is the lifeblood of our response and identifying where vaccine uptake is lower will help us adapt to ensure an equitable distribution,” said Health Commissioner Dr. Dave Chokshi. “We need all New Yorkers to know that this vaccine is safe and effective, and we are working hard every day to ensure we have the supply to vaccinate as many New Yorkers as possible.”

 

“Transparency promotes trust and we have a lot of work to do to build confidence with the city’s communities,” said First Deputy Health Commissioner and Chief Equity Officer Dr. Torian Easterling. “This public health emergency has highlighted the systemic racism that’s entrenched in our nation’s policies and practices, and we are determined to make sure that this does not happen in the campaign to vaccinate New Yorkers.”

 

Bronx Borough President Ruben Diaz Jr. Endorses Candidate Ischia Bravo in the March 23rd 15th City Council Special Election

Standing between a life sized poster and the real candidate, Bronx Borough President Ruben Diaz Jr. endorsed 15th City Council Special Election candidate Ischia Bravo. BP Diaz Jr. said he would be all in to help candidate Ischia Bravo win the special election on March 23rd to replace former city councilman, now Congressman Ritchie Torres.

Afterwards Team Bravo went outside for a group photo

I call on 11th City Council Candidate Eric Dinowitz to Request the Resignation of District Leader Marcos Sierra or Denounce his Endorsement by the Bronx Democratic Party and State Senator Jamaal Bailey

If Brooklyn District Leader Lori Maslow can be requested to resign over comments made about China and Chinese foodhttps://nypost.com/2021/01/29/brooklyn-district-leader-resigns-after-backlash-to-anti-china-comments/?fbclid=IwAR3-Dj_bLo99z7YEuSZGopkk7Pj4ZcpmkJpVr-39-HxCEJ7X4yiRVQjGSSU 

Why is it that Bronx District Leader Marcos Sierra who Bronx Democratic Party Secretary Assembly Jeffrey Dinowitz said, mad a racially charged statement against a white member of the media not be requested to resign by the Bronx Democratic Party and its leader State Senator Jamaal Bailey.

 The statement by 80th A.D. District Leader Marcos Sierra was "So you feel either of those contests can better benefit from an older white cis male running to represent a majority minority district huh?Robert Press".

I now call on Eric Dinowitz the District Leader from the 81st A.D., and candidate for the 11th City Council Special Election who is endorsed by the Bronx Democratic Party and State Senator Jamaal Bailey to demand that 80th A.D. District Leader Marcos Sierra resign or be removed from his district leader position by the Bronx Democratic Party and its leader State Senator Jamaal Bailey for the statement he said to a white member of the media, that your father Assemblyman Jeffrey Dinowitz the Secretary to the Bronx Democratic Party called racially charged. 

I also call for 11th City Council candidate Eric Dinowitz to renounce the endorsement of the Bronx Democratic Party and of State Senator Jamaal Bailey unless 80th A.D. District Leader either resign or be removed from his position immediately. 

I also call on 80th A.D. Assemblywoman Nathalia Fernandez to call for her Male District Leader Marcos Sierra to resign or be removed by the Bronx Democratic Party Leader State Senator Jamaal Bailey for the racially charged statement he made to a white member of the media.

All other district leaders and elected officials should also call for 80th A.D. Male District Leader Marcos Sierra to resign or be removed by the the Bronx Democratic Party Leader State Senator Jamaal Bailey for the racially charged statement he made to a white member of the media.

Bronx Democratic Party Leader State Senator Jamaal Bailey with District Leader Marcs Sierra at an event.

Governor Cuomo Announces Mass Vaccination Site at Yankee Stadium is in Development

 

With Bronx Positivity Rate Currently at a Concerning 7.6 Percent, Site Will Be Reserved for Bronx Residents

Development of Site Being Made Possible Through Partnership with New York City, SOMOS Community Care and the New York National Guard

Yankee Stadium Site to Bolster State's Commitment to Ensuring Fairness and Equity in Vaccine Distribution Process

Ten Additional Community Vaccination Kits Deployed to NYCHA Senior Housing Developments, Public Housing Sites in Rochester and Hempstead and Churches and Community Centers in the Bronx and Brooklyn to Vaccinate Over 3,800 People This Weekend

 Governor Andrew M. Cuomo today announced a mass vaccination site at Yankee Stadium is under development through a partnership between New York State, New York City, SOMOS Community Care, the New York National Guard and the New York Yankees. With the Bronx positivity rate currently at a concerning 7.6 percent, this site will be reserved specifically for Bronx residents. Information concerning the opening of the facility and scheduling process will be released in the coming days.

Additionally, the Governor announced the deployment of ten more community vaccination kits to underserved communities. Specifically, kits are being deployed to four NYCHA Senior Housing Developments, 2 public housing sites in Rochester and Hempstead, and three church and community center locations in the Bronx and Brooklyn. The establishment of the Yankee Stadium site, as well as the deployment of these ten community vaccination kits, bolster New York State's efforts to equitably distribute the COVID-19 vaccine in communities that are underserved by traditional healthcare institutions. 

Following this weekend's deployments and as the federal vaccine supply increases, New York will continue to deploy these kits until pop-up sites have been established at all 33 NYCHA Senior Housing Developments which house more than 7,600 seniors. Pop-up locations will also continue to be established at other public housing complexes statewide, as well as at more than 300 churches and cultural centers which have volunteered to house these sites through Governor Cuomo's Vaccine Equity Task Force.

"Bronx COVID positivity remains high and to help get it back under control, we will are partnering with New York City, SOMOS, the New York National Guard and the New York Yankees to establish a mass vaccination site at Yankee Stadium," Governor Cuomo said. "The undeniable fact is that COVID has killed Black and Brown communities at a higher rate than the white community, and the Bronx was not immune. Vaccine equity and protecting the communities that were hit the hardest by COVID remain our top priorities. By opening a mass vaccination site at Yankee Stadium we are sending a clear signal to Bronx residents: it's safe, it's effective, and it's the weapon that will win the war, but we will only be successful if everyone is on board."

New York City Mayor Bill de Blasio said, "This is exactly what it will take to defeat COVID and drive a recovery for all of us in New York City. I want to thank the Yankees for stepping up to the plate and the teamwork on display here to continue expanding our vaccination infrastructure in neighborhoods across the city. Our Vaccine For All campaign puts equity front and center, and this new site to exclusively serve the Bronx will be a real home run."

The New York Yankees said, "The New York Yankees are honored to participate in this partnership with Governor Andrew Cuomo, the State of New York, Mayor Bill De Blasio, the City of New York and SOMOS Community Care to open Yankee Stadium to provide vaccines to the people of the Bronx. The Yankees are committed to doing everything in their power to provide this vitally needed service to fight COVID-19."

SOMOS Community Care Chairman Dr. Ramon Tallaj said, "Not just for the Bronx, but for all of New York, Yankee Stadium stands for community, for home. It is a place where we watch heroes being made. And now, as we prepare to vaccinate our heroes, those living in the borough with the highest COVID positivity rate, it also stands for hope. It is an incredible honor to work with the city & state to vaccinate residents of the Bronx at this local landmark. Through our years of work treating underserved New Yorkers by emphasizing preventive care, and providing testing and vaccinations during this ongoing pandemic, my network has demonstrated the critical need for culturally competent, community-based health -- the importance of receiving critical care from doctors you know and trust, doctors who speak your language, share your stories, and understand your culture. Yankee Stadium offers the same comfort and familiarity as receiving care from a doctor who has treated local families for generations. And with a roll-out hindered by mistrust in hospitals, pharmacies, and the vaccines themselves, we are grateful that Governor Cuomo and Mayor de Blasio recognize the vital need for community doctors like us to design an equitable vaccine program that takes the vaccine into the neighborhood, protecting the low-income, immigrant communities of color who have borne the brunt of COVID-19."

Major General Ray Shields, the Adjutant General of New York said, "The men and women of the New York National Guard having been helping our fellow New Yorkers battle the COVID pandemic since March 2020. We are extremely proud to assist with the State's massive vaccination goals. We currently have more than 2,500 New York National Guard Soldiers and Airmen on duty across the State working to stem the pandemic and help get our communities back to normal."

The establishment of these vaccination sites utilizing New York's community vaccination kits was made possible through partnerships with SOMOS, Northwell Health, SUNY Stony Brook and Trillium Health. The ten sites are located at the addresses below:

Brooklyn

Carey Gardens
2315 Surf Avenue

Brooklyn, NY

Open Saturday, January 30 and Sunday, January 31 - 9AM-5PM

Kingsborough Extension
447 Kingsborough 4th Walk
Brooklyn, NY
Opens Sunday, January 31 - 9AM - 5PM

Cornerstone Baptist Church
574 Madison Street
Brooklyn, NY
Opens Monday, February 1 - 9 AM-5PM

Gods Battalion of Prayer
661 Linden Boulevard
Brooklyn, NY
Opens Monday, February 1 - 9 AM-5PM

Bronx

Latino Pastoral Action Center

14 West 170th Street Bronx, NY

Open Friday, January 29; Saturday January 30 and Monday February 1 - 9AM-5PM

Edenwald Houses

1150 East 229th Street Bronx, NY

Open Saturday, January 29 and Sunday, January 31 - 9AM-5PM

Bronx River Addition

1350 Manor Avenue Bronx, NY

Open Saturday, January 29 through Monday, February 1 - 9AM-5PM

Bartow Community Center

2049 Bartow Avenue Bronx, NY

Open Saturday, January 29 through Monday, February 1 - 9AM-5PM

Hempstead
Kennedy Memorial Park Senior Housing
335 Greenwich Street
Hempstead, NY
Opens Saturday, January 30 - 10AM-2PM

Rochester
Seneca Towers Housing Complex
200 Seth Green Drive
Rochester, NY
Open Saturday, January 30 - 10AM-5PM

This expanded deployment of Community Vaccination Kits furthers Governor Cuomo's goal of ensuring the fair and equitable distribution of the COVID-19 vaccine. In late 2020, the Governor announced the launch of New York's Vaccine Equity Task Force chaired by Secretary of State Rossana Rosado, Attorney General Letitia James, National Urban League President & CEO Marc Morial, and Healthfirst President & CEO Pat Wang. Since its establishment, the Task Force has continued work to ensure vulnerable and underserved communities are not left behind by breaking down the barriers to vaccination and ensuring there is equitable distribution of the vaccine across the state. 

To facilitate this effort, New York has continued to build kits and work with public housing officials, churches, and community centers to support these efforts and deploy kits to the appropriate locations. Each kit includes step-by-step instructions for how to set up a site, and critical supplies and equipment such as: 

• Office Supplies
• Workstation Equipment
• Communications Equipment
• Cleaning Supplies
• Lighting Equipment
• PPE
• Crowd/Traffic Control Equipment
• Vials
• Syringes
• Room Dividers
• Privacy Curtains

Managing Partner Of Investment Advisory Firm Pleads Guilty To Defrauding Clients And Investors In Over $100 Million Ponzi-Like Fraud Scheme

 

 Audrey Strauss, United States Attorney for the Southern District of New York, announced that DAVID HU, a managing partner and the chief investment officer of the New York-based investment advisory firm International Investment Group (“IIG”), pled guilty today before U.S. District Judge Alvin K. Hellerstein to investment adviser fraud, securities fraud, and wire fraud offenses in connection with an over $100 million scheme to defraud IIG’s investment advisory fund clients and investors.  Throughout the course of more than 10 years, HU perpetrated the scheme by, among other fraudulent actions, creating fictitious investments and overvaluing investments used to generate funds to pay off earlier investors in a Ponzi-like manner.  In connection with his plea agreement, HU has also agreed to forfeit more than $129 million representing proceeds traceable to the commission of the offenses.

Manhattan U.S. Attorney Audrey Strauss said:  “Today, David Hu admitted to shirking his fiduciary responsibilities and defrauding IIG funds and investors for more than a decade, causing millions of dollars of losses.  Hu mismarked millions of dollars of loan assets, falsified paperwork to create fake loans, sold overvalued and fake loans and used the proceeds from those sales to pay off earlier investors, and falsified paperwork to deceive auditors and avoid scrutiny.  He now faces a serious term of imprisonment.”

According to the allegations contained in the Information and based on statements made in Manhattan federal court:           

            Background of IIG 

HU and a co-conspirator (“CC-1”) founded IIG in 1994.  HU was a managing partner and the chief investment officer of IIG.  IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (“TOF”); (2) the IIG Global Trade Finance Fund, Ltd. (“GTFF”); and (3) the IIG Structured Trade Finance Fund, Ltd. (“STFF”).  IIG also advised the Venezuela Recovery Fund (“VRF”), a fund that managed the remaining assets of a failed Venezuelan bank (VRF, together with TOF, GTFF, and STFF, the “IIG Funds”).  In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management.

IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses.  IIG’s principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated.  Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade.  IIG’s purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on “soft commodities,” such as coffee, agriculture, fishing, and other food products.  IIG’s trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.

Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers.  In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry.

IIG purported to value the trade finance loans in the IIG Funds on a regular basis.  IIG and, in turn, HU, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds.

The Scheme

From approximately 2007 to 2019, HU conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner.

The scheme HU participated in involved, among other things:

• Mismarking Defaulted Loans.  HU and CC-1 caused IIG to mismark the value of multiple loans that had, in reality, defaulted (the “Defaulted Loans”).  Instead of acknowledging the defaulted status of these loans, HU and CC-1 instead caused IIG to mark the Defaulted Loans at par plus accrued interest, even though HU and CC-1 knew that the borrowers’ default significantly impaired the true value of these loans.  HU and CC-1 certified these false valuations and caused them to be reported to investors.
   
• Mismarking Distressed Loans.  HU and CC-1 caused IIG to mismark multiple loans that were distressed (the “Distressed Loans”).  These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments.  Even though HU and CC-1 knew that the non-performing status of the loans significantly impaired their true value, they nevertheless caused IIG to continue to mark the loans at par plus accrued interest.
   
• Creating Fictitious Loans.  With respect to TOF, in order to hide the losses resulting from the Defaulted Loans, including from auditors reviewing TOF’s financials, HU and CC-1 removed the Defaulted Loans from the TOF portfolio, replacing them with tens of millions of dollars in fictitious loans to purported borrowers in foreign countries (the “Fake Loans”).  HU and CC-1 also created or directed the creation of documents to keep in IIG’s files as purported documentation of the Fake Loans.  To pass auditor scrutiny, HU and CC-1 also directed purported borrowers – sham  foreign entities that were controlled by IIG’s business associates and that did not engage in actual business – to provide confirmations of the Fake Loans to auditors, including by arranging for TOF to pay a monthly fee to one purported borrower in exchange for providing false confirmations.  In reality, these purported borrowers did not receive a loan from TOF, and were not expected to make any payments to TOF.
   
• Using a CLO Trust to Create Liquidity through Investments in Fraudulent Loans.  In or about 2014, HU and CC-1 obtained approximately $220 million in bank financing to create a collateralized loan obligation trust (the “CLO Trust”), for which IIG served as an investment adviser.  HU and CC-1 then engaged in various deceptive acts, using the CLO Trust, to hide TOF’s losses and generate liquidity for TOF, which was facing investor redemption requests and demands for repayment of loans that IIG had taken from international development banks.  For example, in its capacity as investment adviser for the CLO Trust, IIG, through the efforts of HU and CC-1, caused the newly-created CLO Trust to purchase loans from the TOF portfolio, including Defaulted Loans, Distressed Loans, and Fake Loans, which generated liquidity for TOF.  After the CLO Trust purchased loans in the TOF portfolio, IIG, through the efforts of HU and CC-1, generated additional liquidity by causing the CLO Trust to issue securitized debt instruments based on these loans, payable in various tranches to investors in the CLO Trust.
   
• Using the CLO Trust and Panamanian Shell Entities to Cover Up Losses.  IIG, through the efforts of HU and CC-1, also caused the CLO Trust to create new fraudulent trade finance loans, and used those new fraudulent loans to cover up TOF’s losses.  Specifically, HU caused the creation of shell entities domiciled in Panama (“Panamanian Shell Entities”) that were controlled by an IIG nominee.  Then, HU caused the CLO Trust to enter into fake loan transactions with the Panamanian Shell Entities.  HU caused the creation of fake promissory notes and other paperwork to conceal the fraudulent nature of the loans to the Panamanian Shell Entities.  Finally, under the guise of the fake loan transactions with the Panamanian Shell Entities, the CLO Trust disbursed funds that HU and CC-1 diverted to TOF in order to pay off TOF’s various debts and obligations.
   
• Generating Liquidity by Selling Fraudulent Loans to a Newly-Created Funds Backed by a New Investor.  In or about 2017, HU and CC-1 targeted a foreign institutional investor (“Institutional Investor-1”) to raise money for two new private IIG managed funds: GTFF and STFF. Institutional Investor-1 provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF.  HU and CC-1 caused GTFF and STFF to purchase at least approximately $100 million in fake, distressed, defaulted or otherwise fraudulent loans.  
   
• Inducing a Retail Mutual Fund to Invest in a Fictitious $6 Million Loan.  In or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the “Retail Fund”). As an investment adviser to the Retail Fund, IIG made investment recommendations, including recommendations that the Retail Fund invest in trade finance loans originated by IIG.  In or about February 2017, a borrower (the “Argentine Borrower”) had failed to pay the principal on an approximately $6 million loan (“Loan-1”) in which the Retail Fund had invested and which was nearing its maturity date.  In or about March 2017, HU caused approximately $6 million to be transferred into an account associated with the Argentine Borrower from the account of a different borrower (“Borrower-1”), and further directed the funds from Borrower-1’s account to pay off the debt owed by the Argentine Borrower to the Retail Fund.  To replace the funds from Borrower-1’s account that were used to make it appear as though the Argentine Borrower had repaid its debt to the Retail Fund, HU fraudulently induced the Retail Fund to invest in a new, fake $6 million loan to the Argentine Borrower (the “New Loan”).  HU then directed that the proceeds from the fraudulently induced New Loan be transferred into Borrower-1’s account, effectively reimbursing the account for the earlier $6 million transfer to the Retail Fund.  To further conceal the fraudulent nature of the New Loan, HU caused the creation of forged documents to make it appear as though the New Loan was a legitimate loan to the Argentine Borrower. 

DAVID HU, 63, of West Orange, New Jersey, pled guilty to one count of conspiracy to commit investment adviser fraud, securities fraud, and wire fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.  Sentencing before Judge Hellerstein has been scheduled for June 17, 2021, at 9:00 a.m.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution.

Attorney General James Reviewing Robinhood App Activity

 

New York Attorney General Letitia James released the following statement in regards to recent activity related to the Robinhood application and the trading of GameStop stock:

“We are aware of concerns raised regarding activity on the Robinhood app, including trading related to the GameStop stock. We are reviewing this matter.