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Friday, March 26, 2021
Reminder Join our Bronx Progressives March General Virtual Meeting
MAYOR DE BLASIO APPOINTS MARCOS GONZALEZ SOLER TO HEAD MAYOR’S OFFICE OF CRIMINAL JUSTICE
Mayor Bill de Blasio today announced that Marcos Soler will head the Mayor’s Office of Criminal Justice. As Director, Soler will oversee citywide criminal justice policy and develop and implement strategies across city agencies and partners to enhance public safety. Soler will play a critical role in implementing the City’s police reform plan and also serve as the Mayor’s representative to the courts, district attorneys, and state criminal justice agencies, among others.
“Throughout my Administration we’ve seen the incredible impact of the Cure Violence Movement and Crisis Management System in neighborhoods across our city,” said Mayor Bill de Blasio. “Now, as we build a recovery for all of us, it’s time to deepen that work. I trust that Marcos will lead the charge to bring us back, all while keeping New York City the safest big city in America.”
"For seven years, this administration has shown that it is possible to reduce both crime and imprisonment with fairer, more targeted enforcement and innovative community-based strategies across the entire justice system. MOCJ has played a critical role in advancing the most ambitious and successful changes to operations of the criminal justice the City has seen in decades," said Marcos Gonzalez Soler, Director of the Mayor’s Office of Criminal Justice. "It has been my privilege to work alongside the dedicated, hardworking, and immensely talented staff that make up our office for years as chief of staff. Now as director, it will be my honor to continue to advance the mayor’s agenda of criminal justice reform.”
Marcos Gonzalez Soler has served as Chief of Staff at the Mayor’s Office of Criminal Justice since 2015. Before that, Soler was the deputy executive director for policy and strategic initiatives at the Civilian Complaint Review Board. He worked closely with the board in conceptualizing and implementing major initiatives at the CCRB, including the implementation of the administrative prosecution unit and the drafting of several policy reports and recommendations. He served as acting executive director from February to April of 2013.
Soler also served as deputy federal monitor in the agreement for the sustainable reform of the Puerto Rico Police Department, the largest reform agreement in the United States. Between 2009 and 2011, he was a board member and treasurer of the National Association for Civilian Oversight of Law Enforcement (NACOLE).
Soler serves as an adjunct faculty member in the political science department at John Jay College of Criminal Justice. At John Jay, Soler developed the first of its kind graduate level course in public oversight of law enforcement in coordination with National Association for Civilian Oversight of Law Enforcement. He had also taught in the NYPD executive master program in criminal justice at John Jay.
Soler holds a Master’s in public policy and management and a Ph.D. in politics from The New School University, where he was the recipient of the Hannah Arendt Award for the best dissertation in politics. He was a doctoral research fellow in jurisprudence at the University of Valencia School of Law and a research fellow at the Spanish Center for Constitutional Studies. He holds several graduate and law degrees from several European universities, including University of Valencia Law School & University of Valencia, the European Academy of Legal theory, the International Institute for the Sociology of Law, and the Spanish National Center for Constitutional Studies. Additionally, he is a graduate of the New York City Leadership Institute and a recipient of the Mayor’s Graduate Scholarship program. A native of Spain, Soler moved to New York City in 1998. He lives with his wife, a public-school teacher, and children on Staten Island.
“Over the last seven years the Mayor's Office of Criminal Justice has played a critical role conceptualizing, implementing, and coordinating significant change in our justice system—from developing the historic plan to close Rikers to creative gun violence prevention and community-led safety initiatives,” Susan Herman, Director of ThriveNYC, said. “We have seen dramatic changes in every part of the criminal justice system largely due to MOCJ's efforts and Marcos Soler has been a valuable member of the leadership team that has made it happen. As he takes the helm, I congratulate him and look forward to continuing to work together to make New York a safer, fairer, and healthier city.”
“Marcos’ expertise on the issues is matched by his commitment to making New York City a more just and equitable place. He is absolutely the right person to lead the Mayor’s Office of Criminal Justice,” said CCRB Executive Director Jonathan Darche. “The CCRB looks forward to working with Marcos and MOCJ on implementing police reforms and empowering civilian oversight in our City.”
"I look forward to working with Marcos in building a fairer criminal justice system," said Community Affairs Unit Commissioner Roberto Perez. "I am confident that Marcos will successfully advance this administration's community-focused policies like the Mayor's Action Plan for Neighborhood Safety, borough-based jails, and NYPD reform."
Attorney General James and Tax Commissioner Schmidt Announce Convictions of Long Island Auto Repair Shops for Tax Evasion
Broadway Towing and Broadway Auto & Towing Failed to Pay Over $700,000 in Sales Tax
Businesses Underreported More Than $8 Million in Taxable Sales Over a Decade
New York Attorney General Letitia James and New York Commissioner of Taxation and Finance Michael Schmidt today announced the guilty pleas of two Long Island auto repair shops and their owner for tax evasion. Broadway Towing, Inc. and Broadway Auto & Towing, Inc. pleaded guilty to Criminal Tax Fraud for underreporting more than $8 million in taxable sales over a 10-year period. The owner of both shops — Luis Crespo, 53 of Freeport — additionally pleaded guilty to Petit Larceny. As part of their pleas, the defendants agreed to repay the state of New York more than $900,000 in restitution, interest, and penalties.
“There’s no award presented to those who partake in tax evasion, but Broadway Towing’s performance has ensured the company finally pays New York state more than $900,000 in restitution, interest, and penalties,” said Attorney General James. “Today’s convictions should serve as a clear reminder that we will never tolerate those who seek to defraud our state out of its owed tax revenue, especially as we continue to face budget shortfalls. The lights have finally dimmed on Broadway Towing’s fraud. I thank Commissioner Schmidt and the Department of Taxation and Finance for their partnership in bringing accountability and justice to our communities.”
“Business owners who tilt the playing field for their own personal gain not only violate the trust of their community, they rob it of critical funding for public programs and services,” said Commissioner Schmidt. “This is hundreds of thousands of dollars that would have helped improve lives in local neighborhoods, but instead they were siphoned off for personal profit. We’ll continue to work with the attorney general and all levels of law enforcement to ensure those committing tax fraud are held accountable.”
A joint investigation by the Office of the Attorney General’s (OAG) Auto Insurance Fraud Unit and the New York state Department of Taxation and Finance’s (Tax Department) Criminal Investigations Division revealed that — between 2009 and 2018 — Crespo collectively underreported a total of more than $8 million in taxable sales, and failed to remit more than $700,000 in sales tax collected from his two auto body repair shops — both located at 25 Broadway in Freeport.
According to complaints filed in Nassau County Court and a Tax Department audit of sales tax returns, for the period between December 1, 2009 and February 28, 2018, Broadway Towing underreported its taxable sales by $5,414,789 — resulting in a failure to remit $467,025 in sales tax due to New York state. The Tax Department’s audit further revealed that, between December 1, 2009 and November 30, 2016, Broadway Auto & Towing underreported its taxable sales by $3,150,930 — resulting in a failure to remit $271,767 in sales tax due to New York state.
This morning — before the Honorable Terence P. Murphy in Nassau County First District Court — Broadway Towing and Broadway Auto & Towing each pleaded guilty to one count of Criminal Tax Fraud in the Third Degree (a Class D felony). Crespo — who has already paid $160,000 in restitution to the Tax Department to date — pleaded guilty to Petit Larceny (a Class A misdemeanor), and was sentenced to a three-year conditional discharge. As part of his sentence, Crespo must pay an additional $750,000 in restitution to the Tax Department.
The OAG wishes to thank the Tax Department’s Criminal Investigations Division, as well as the New York state Department of Financial Services and the National Insurance Crime Bureau, for their valuable assistance in this investigation.
This case was investigated by Detective John Roman and Senior Auditor Dmitry Temis of the Auto Insurance Fraud Unit, under the direction of Supervising Detectives Edward Keegan and Natalie Shifrin and Deputy Chief Leonard D'Alessandro. The Investigations Bureau is led by Chief Oliver Pu-Folkes.
281 Days and Counting
Any time now Dr. Choskhi, you can give me the COVID-19 vaccination. I gave it to you last week Mayor de Blasio. I am just checking the injection site.
Thursday, March 25, 2021
CEO Of NYC Non-Profit Charged In Bribery And Kickbacks Scheme Involving Publicly Funded Housing And Social Services
Audrey Strauss, the United States Attorney for the Southern District of New York, and Margaret Garnett, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest of VICTOR RIVERA on charges of honest services fraud and money laundering. As alleged in an Information filed today in Manhattan federal court, RIVERA, while leading a non-profit organization (“Organization-1”) that operated soup kitchens, homeless shelters, and affordable-housing facilities in New York City, schemed to enrich himself through bribes and kickbacks from Organization-1’s contractors. RIVERA will be presented and arraigned later today before United States District Judge Sidney H. Stein.
Manhattan U.S. Attorney Audrey Strauss said: “Many of the over 8.4 million residents of New York City rely on government-assisted non-profits to provide food, affordable housing, and other essential services for their well-being. As alleged in today’s charges, by accepting bribes and kickbacks, Victor Rivera sought to leverage his position as the CEO of a non-profit into a very much for-profit situation for himself. The vast majority of organizations in New York City’s non-profit networks honorably provide assistance to those in need, but when any individual selfishly exploits one of those organizations for their own personal gain, they will find themselves facing criminal charges for corruption.”
DOI Commissioner Margaret Garnett said: “As CEO of a City-funded nonprofit, this defendant should have been serving the underprivileged, including the homeless; instead, according to the criminal information, he schemed to enrich himself and his relatives, taking bribes and kickbacks from those doing business with his organization. New York City provides billions of dollars to support nonprofits, many of which run organizations with integrity and provide valuable, essential services. But corruption at nonprofit social services contractors remains an investigative priority for DOI, and today's arrest should serve as notice to any individual who sees the City's coffers as a path to personal profit. DOI thanks the U.S. Attorney's Office for the Southern District of New York for its partnership and commitment to this important corruption investigation.”
As alleged in the Information:[1]
RIVERA was the President and Chief Executive Officer of Organization-1, which annually spent millions of dollars in public funds on real estate, security, cleaning, construction, and food expenses, among other costs related to the housing and social services Organization-1 provided. From at least in or about 2013 until in or about 2020, RIVERA engaged in a scheme to enrich himself and his relatives by soliciting and accepting bribes and kickbacks from contractors doing work related to or for Organization-1. The scheme yielded RIVERA at least hundreds of thousands of dollars in illicit gains. RIVERA laundered some of the corrupt payments through intermediary entities he controlled, including through a purported consulting company nominally owned by one of RIVERA’s relatives.
RIVERA, 61, of Stony Point, New York, is charged with one count of honest services wire fraud conspiracy, one count of honest services wire fraud, and one count of money laundering. Each count carries a maximum potential prison sentence of 20 years. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only; any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of Special Agents of the United States Attorney’s Office for the Southern District of New York and of DOI, and thanked the Internal Revenue Service for its participation in the investigation.
The allegations contained in the Information 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 Information and the description of the Information set forth below constitute only allegations, and every fact described should be treated as an allegation.
RAY McGUIRE CAMPAIGN FILES 18K PETITION SIGNATURES TO QUALIFY FOR THE DEMOCRATIC MAYORAL PRIMARY
Democrat Ray McGuire today filed more than 18,000 petition signatures to the Board of Elections to qualify for the June primary election ballot.
“We are now really at the start of this campaign and today's filing shows that New Yorkers are beginning to be engaged,” said Ray McGuire. “People from every borough and every neighborhood are responding to our message for the most inclusive comeback in New York City history. New Yorkers want a change from politics as usual and deserve a mayor who can truly lead our economic recovery; I will be that mayor.”
The campaign's 18,000+ signatures were collected from neighborhoods across all five boroughs without institutional support from clubs, unions or elected officials. Powered by a robust volunteer network with over 1000 volunteers and growing, #TeamRay petitioned from the South Bronx to South Jamaica, Queens and everywhere in between.
The campaign's 18,000+ signatures were collected from neighborhoods across all five boroughs without institutional support from clubs, unions or elected officials. Powered by a robust volunteer network with over 1000 volunteers and growing, #TeamRay petitioned from the South Bronx to South Jamaica, Queens and everywhere in between.
"Our team has been working diligently and safely to not only qualify for the ballot, but also to share Ray's message with New Yorkers, and it is resonating. We are building a true grassroots apparatus with New Yorkers who are eager for change. We're proud of what we've accomplished so far and look forward to moving into the next phase of our campaign," said Rasheida Smith, field director for Ray McGuire for Mayor.
A RECOVERY FOR ALL OF US: MAYOR DE BLASIO, DOT ANNOUNCE NEW APPLICATION FOR 2021 EXPANSION OF OPEN STREETS
Mayor Bill de Blasio today announced that the Department of Transportation (DOT) has released the 2021 application for New York City’s nation-leading Open Streets program, which allows communities to dedicate roadway space to pedestrians and cyclists. Interested businesses and community partners can learn more and apply now at www.nyc.gov/openstreets.
“Last year, New York City seized an unprecedented crisis to totally reimagine our city streets. Open Streets was a runaway success – and now, I’m proud to deliver the framework we need to make it permanent,” said Mayor Bill de Blasio. “With better signage, new barriers, and more support for community partners, this program will be sustainable for the long term – and better position New York City to break free of car culture and build a recovery for all of us.”
DOT will work with community partners to develop operational plans for multiple uses, including outdoor dining and programming, while maintaining loading, deliveries, and emergency access.
“Under Mayor de Blasio’s leadership and in partnership with the Council and other City agencies, DOT launched multiple new programs to reimagine our streets in response to the pandemic, creating the nation’s largest Open Streets program, with outdoor dining corridors, play streets and open-air learning spaces,” said DOT Commissioner Hank Gutman. “Open Streets in communities across the five boroughs provided a true bright spot in a difficult year, and we are confident this new application will help us bring in more partners to make the initiative even better as the city continues to recover in 2021.”
This application will be open for groups interested in managing either of two distinct types of Open Streets:
- Temporary Limited Local Access – street designated for pedestrian and cyclist use, during a specified set of hours and days each week, where local vehicle access for parking and loading is permitted, and drivers are advised to drive 5 MPH.
- Temporary Full Closure – temporarily closed to vehicles for pedestrian and cyclist use, to support local businesses, and for community programming (formerly including Open Streets: Restaurants).
The Open Streets program will now replace DOT’s Weekend Walks and Seasonal Streets programs. Groups of three or more eligible businesses along a corridor may also submit an application for Open Streets, but must identify one business entity to apply for and represent the group. Both new and returning partners must apply to manage an Open Street in their communities.
Open Streets applicants submitting a proposal agree to help manage all aspects of the program, which may include but are not limited to the following:
- Managing street closure barricades (setup, oversight, breakdown)
- Coordinating operations and any programming executed on Open Streets
- Regularly notifying local stakeholders and the community about hours and guidelines using social media, digital outreach, and print media outlets, and/or other forms of communication
- Facilitating Open Streets certification for all restaurants and retail/service establishments included in the temporary full street closure, and coordinating operations and any programming executed on Open Streets.
Jury Convicts Architects Of Scheme To Fraudulently Process Over $150 Million Through U.S. Financial Institutions
Audrey Strauss, the United States Attorney for the Southern District of New York, announced the conviction today of HAMID “Ray” AKHAVAN and RUBEN WEIGAND, following a four-week trial before the Honorable Jed S. Rakoff. AKHAVAN and WEIGAND devised a complex scheme involving fake companies, false websites, and fake “customer service centers,” to deceive U.S. issuing banks and credit unions into effectuating more than $150 million of credit and debit card purchases of marijuana by disguising those purchases as being for other kinds of goods, such as face creams and dog products. The defendants were each convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
Manhattan U.S. Attorney Audrey Strauss said: “As a jury has now found, Ray Akhavan and Ruben Weigand were in the business of selling lies. Under the radar of U.S. banks and credit card companies screening for suspicious and illegal activity, these men offered their services: creating fake companies and fake websites, and ginning up fake web traffic to those fake websites, all in the service of fraudulently moving money through the United States financial system. Today, a jury has seen through those lies and convicted Akhavan and Weigand of bank fraud.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
From in or around 2016 through in or around 2019, AKHAVAN and WEIGAND, working with others, including principals from one of the leading on-demand marijuana delivery companies in the United States (the “Company”) planned and executed a scheme to deceive United States banks and other financial institutions into processing over $150 million in credit and debit card payments for the purchase and delivery of marijuana products (the “Scheme”).
The Scheme involved the deception of virtually all of the participants in the payment processing network, including issuing banks in the United States (the “Issuing Banks”) and Visa and MasterCard. The primary method used by AKHAVAN, WEIGAND, and other coconspirators to deceive the Issuing Banks involved the purchase and use of shell companies that were used to disguise the marijuana transactions through the use of phony merchants (the “Phony Merchants”). The shell companies were used to open offshore bank accounts with merchant acquiring banks and to initiate credit card charges for marijuana purchases made through the Company. AKHAVAN and WEIGAND worked with other co-conspirators to create these phony merchant accounts – including phony online merchants purportedly selling dog products, diving gear, carbonated drinks, green tea, and face creams – and established Visa and MasterCard merchant processing accounts with one or more offshore acquiring banks. They then arranged for more than a dozen Phony Merchants to be used by the Company to process debit and credit card purchases of marijuana products. Many of the Phony Merchants purported to be based in the United Kingdom, but, despite being based outside the United States, claimed to maintain U.S.-based customer service numbers.
To facilitate the Scheme, webpages were created and deployed to lend legitimacy to the Phony Merchants. The Phony Merchants typically had web pages suggesting that they were involved in selling legitimate goods, such as carbonated drinks, face cream, dog products, and diving gear. Yet these companies were actually being used to facilitate the approval and processing of marijuana transactions. The defendants’ scheme even involved fake visits to those websites to make it appear as though the websites had real customers and were operating legitimate online businesses.
The defendants’ scheme also involved the use of online tracking pixels. Because the descriptors listed on Company customers’ credit card statements often were the URLs for the Phony Merchant websites, Company customers were sometimes confused and did not recognize the transactions on their credit card statements. The defendants and their coconspirators were concerned that confused customers would call their Issuing Banks and inadvertently reveal the Scheme by indicating that they had purchased marijuana products and/or that they had made a purchase through the Company. To lessen the risk that customers would be confused, the defendants used a number of techniques, including online tracking pixels to track which users had visited the Company’s website. If a Company customer had visited the Company’s website and went to the URL listed on their credit card statement, they would automatically be re-routed to a webpage connected to the Company so that the customer would understand what the real purchase had been for (i.e., from the Company). However, in order to hide the Scheme, the defendants ensured that if a third party such as a bank or credit card company investigator visited a URL of a Phony Merchant, they would not be re-routed, and would therefore be unable to discern any connection between the Phony Merchant website and the Company and/or the sale of marijuana products.
Over $150 million in marijuana credit and debit card transactions were processed using the Phony Merchants. Some of the merchant websites listed for those transactions included: diverkingdom.com, desirescent.com, outdoormaxx.com, and happypuppybox.com. Moreover, none of the Phony Merchant website names listed for those transactions referred to the Company or to marijuana. AKHAVAN, WEIGAND, and others also worked with and directed others to apply incorrect merchant category codes (“MCCs”) to the marijuana transactions in order to disguise the nature of those transactions and create the false appearance that the transactions were completely unrelated to marijuana. Some of the MCCs/categories listed for the transactions included freight carrier, trucking; clock, jewelry, watch, and silverware; stenographic services; department stores; music stores/pianos; and cosmetic stores.
AKHAVAN was the leader of the transaction laundering scheme and WEIGAND was responsible for overseeing the acquiring bank accounts used by the Phony Merchants and sending the proceeds from the marijuana transactions back to bank accounts in the United States.
AKHAVAN, 43, of, California, and WEIGAND, 38, of Germany, were each convicted of one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge. Sentencing before Judge Rakoff is scheduled for June 25, 2021.
Ms. Strauss praised the work of the Federal Bureau of Investigation.