Second 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 MARTIN SILVER, a managing partner and the chief operating 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, SILVER 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, SILVER has also agreed to cooperate with the Government’s ongoing investigation.

Manhattan U.S. Attorney Audrey Strauss said:  “Today, Martin Silver admitted to participating in a sophisticated, decade-long scheme to defraud IIG funds and investors, abandoning his fiduciary responsibilities to IIG’s clients, and causing millions of dollars of losses.  My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.”

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

Background of IIG 

SILVER and a co-conspirator (“CC-1”) founded IIG in 1994.  SILVER was a managing partner and the chief operating 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, SILVER, 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, SILVER 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.   

MARTIN SILVER, 63, of 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 November 16, 2021, at 11:00 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. 

Comptroller Stringer, Muslim Community Leaders and Hunger Relief Organizations Announce Five-Borough ‘Iftar on the Go’ to Expand Access to Free Halal Meals During Ramadan

 

Joins Islamic Relief USA and community-based organizations to distribute nearly 4,500 halal Iftar on the Go meals to families in need

Urges City’s restoration of Ramadan halal meal boxes that successfully added much-needed capacity to feed families in need last year

Calls for more pop-up vaccination sites and mobile vaccination vans at mosques, community centers and other places of worship to reach Muslim New Yorkers facing barriers to immunization

New York City Comptroller Scott M. Stringer in partnership with Islamic Relief USA, local elected officials, Muslim community leaders and hunger relief organizations, announced ‘Iftar on the Go’– a five-borough food distribution to expand access to free, halal meals and conduct SNAP outreach in multiple languages for New Yorkers during Ramadan. Comptroller Stringer also urged the City to restore and ensure quality and diversity in the Ramadan Halal emergency meal boxes that added much-needed capacity to feed families last year. As the COVID-19 pandemic has acutely heightened food insecurity in New York City, Comptroller Stringer has called for increased halal options, funding for community-based organizations and food pantries, and cultural and linguistic competence in the City’s current food programming to ensure that New Yorkers of all backgrounds are able to access benefits.

Comptroller Stringer also underscored that Ramadan is an opportunity to expand vaccine access to Muslim communities that face systemic obstacles to immunization, including language barriers, digital barriers, and lack of workplace flexibility to take paid time off for vaccination. Comptroller Stringer called on the City to:

• Double-down on pop-up vaccination sites across the five boroughs during Ramadan and beyond to include more mosques, community centers and other places of worship.
• Deploy mobile vaccination vans to mosques after evening prayers, specifically targeting transit-deserts and areas disproportionately impacted by COVID.
• Ensure ample walk-in options for seniors at these mobile sites, many of whom were left out due to the digital divide and language access.

“Ramadan is a time to reflect and take care of one other. No one should have to go hungry in the middle of a public health crisis, and especially during Ramadan,” said Comptroller Stringer. “I am proud to stand with Muslim community leaders and food security advocates to announce our five-borough Iftar on the Go to get halal meals, nutrition and support to families in need. Ramadan is also a chance for the City to ramp up vaccination outreach and meet Muslim New Yorkers where they are this holy month. Mosques, community centers and other places of worship can be lifesaving immunization hubs during Ramadan to protect thousands of our neighbors.”

“The month of Ramadan is an opportunity for Muslims across the world to increase giving and empathy. It is a time to remember our neighbors who are struggling and have found themselves in vulnerable circumstances,” said Sharif Aly, Chief Executive Officer at Islamic Relief USA. “The ongoing COVID-19 pandemic has particularly exacerbated food insecurity throughout the country. We are pleased to be collaborating with the New York City Comptroller’s Office to provide hot meals to those who are breaking their fasts or simply seeking a nutritious dinner during this holy month.”

Iftar on the Go halal meal distribution and SNAP outreach locations and dates are available below:

Queens

Partner: Majlis Ash-Shura: Islamic Leadership Council of NY
Location: 88-29 161 Street, Jamaica, NY 11432
Dates:

• Thursday, April 15 at 7:00pm
• Thursday, April 22 at 7:15pm
• Thursday, April 29 at 7:20pm
• Thursday, May 6 at 7:30pm

Manhattan

Partner: Food Bank For New York City
Location: 252 West 116th Street New York, NY 10026
Dates:

• Thursday, April 15 at 4:00pm
• Thursday, April 22 at 4:00pm
• Thursday, April 29 at 4:00pm
• Thursday, May 6 at 4:00pm

Brooklyn

Partner: APNA Brooklyn Community Center
Location: 236 Neptune Avenue, Brooklyn, NY 11235
Dates:

• Friday, April 16 at 2:00pm
• Friday, April 23 at 2:00pm
• Friday, April 30 at 2:00pm
• Friday, May 7 at 2:00pm

Staten Island

Partner: Bait-ul Jammat – House of Community
Location: 192 Corson Ave Staten Island, NY 10301
Dates:

• Tuesday, April 20 at 11am
• Tuesday, April 27 at 11am
• Tuesday, May 4 at 11am
• Tuesday, May 11 at 11am

Bronx

Partner: SAPNA NYC
Location: 2348 Waterbury Ave Bronx, NY 10462
Dates:

• Friday, April 16 at 2pm
• Friday, April 23 at 2pm
• Friday, April 30 at 2pm
• Friday, May 7 at 2pm

Last month, Comptroller Stringer joined more than 100 community-based organizations in calling for $25 million in FEMA reimbursement funding to be specifically dedicated to providing emergency food to undocumented New Yorkers who are unable to access federally funded safety net programs like SNAP. In February, Comptroller Stringer released a comprehensive food security plan to reach any New Yorker in need regardless of immigration status, including expanded SNAP outreach and purchasing power and the creation of a “shared delivery zone” program that centralizes neighbors’ food deliveries to meet online retailers’ minimum purchasing requirements.

In 2018, Comptroller Stringer convened a diverse coalition of Muslim and Jewish stakeholders to review his Halal and Kosher School Lunch Pilot Proposal and organize around expanding universal free school lunches to include halal and kosher food options. which was eventually funded by the City Council in several schools.

Mosaab Sadeia, Outreach Manager at Majlis Ash-Shura: Islamic Leadership Council of NY said: “So many of our Muslim brothers and sisters have kept our city moving as frontline workers through this pandemic—but disproportionately face barriers to food security and immunization. There have been efforts by the city in both areas, and we are calling to see these efforts continued and expanded. Comptroller Stringer’s recommendations for scaling up pop-up vaccination sites and mobile vaccination vans at mosques and community centers are easy steps the City can take that would drastically expand access for our community.”

Sultana Ocasio, Director of Food Bank For New York City’s Community Kitchen & Food Pantry, said: “The absence of food in the day and the humility and gratitude experienced in breaking your fast at sunset are so important in Ramadan. Ramadan is a time of sharing food, and we are grateful for NYC Comptroller Stringer and our friends at Islamic Relief USA for providing our Muslim neighbors with halal Iftar meals after breaking their fasts during this important time of the year.”

Erum Hanif, Chief Executive Officer of APNA Brooklyn Community Center said: “From helping launch a pilot program for free halal school lunches to proposing a food security plan with increased cultural and linguistic competence, Comptroller Stringer understands that our community shouldn’t have to choose between our faith and feeding our families. Comptroller Stringer is laying out smart and strategic recommendations to what the City can do to lift up approximately 1 million Muslim New Yorkers many of whom are currently underserved and unrepresented during the most challenging time of their lives.”

Jamilah LaSalle, Co-Founder of the Bait-ul Jamaat – House of Community said: “The nutritional and dietary needs of undeserved communities on Staten Island are vast. Through the collaborative efforts of the NYC Comptroller’s Office and Islamic Relief USA, organizations with the mission to fight hunger such as ours will be able to help address this need for Muslim families by providing halal meals and doing snap outreach during this holy month.”

Diya Basu-Sen, Executive Director of SAPNA NYC said: “The past year has been incredibly tough for working class immigrant communities and communities of color with many forced to make unbearably difficult choices about what they can afford – choosing between food, rent, minutes on their phone, and other basic necessities. Last year at Sapna we decided to open an emergency food pantry because while the city has increased food assistance programs, finding culturally appropriate fresh produce and staples is still difficult for many families. In the midst of a pandemic that has already resulted in so much fear, anxiety, and loss, being able to provide families with the food that they are used to eating is a small way of maintaining normalcy at a time when everything seems out of their control. We’re grateful to be partnering with Comptroller Stringer and IRUSA this Ramadan to provide iftar meals to our communities in the Bronx so that families can focus on their spiritual reflection and prayer instead of worrying about their next meal. These iftar food distributions will also allow us to do outreach on SNAP enrollment, COVID vaccines, and other community needs that will help ensure a more equitable recovery for our city.

263 Days and Counting

 

I got the Johnson and Johnson vaccine from the Commissioner of Health of NYC, Dr. Chokshi. I had my wife Charlene besides me in case anything happened. It has now been over a month and nothing has happened to me. I am my same old self who dodges any hard question from reporters, I still think the Post is a rag, and we need to put more bike lanes, bus lanes, and homeless people from Brooklyn and Manhattan into the Bronx. 

So you see the Johnson and Johnson vaccine has had no ill effect to me while I am Mayor. Charlene how much time did they give me, 263 days now?

NYS Office of the Comptroller DiNAPOLI: MIDDLETOWN CHIROPRACTOR SENTENCED TO NINE YEARS FOR INSURANCE FRAUD

 

James Spina to Serve 108 Months, Pay More than $18 Million in Restitution and Forfeiture; Co-Conspirators Await Sentencing

 State Comptroller Thomas P. DiNapoli announced James “Jay” Spina was sentenced in federal court for running a large-scale healthcare insurance fraud scheme. Spina and three co-conspirators systematically double-billed insurers, charged for services never rendered, created shell companies and falsified records to hide their crimes.

Spina pled guilty to one count of conspiracy to commit healthcare fraud and today was sentenced to serve 108 months (nine years) in federal prison, plus three years of probation and pay $9.7 million in restitution and forfeit $9.1 million.

"Mr. Spina orchestrated a massive criminal health insurance fraud which systematically defrauded the state, federal and private insurers of millions of dollars,” DiNapoli said. “This type of fraud harms all New Yorkers and contributes to higher health care costs across the state and country. Thanks to my partnership with U.S. Attorney Audrey Strauss, the FBI, the U.S. Department of Health and Human Services Inspector General and the Orange County Sheriff's Office, Mr. Spina has been held accountable." 

U.S. Attorney Audrey Strauss said: “James Spina led a sophisticated, widespread, and callous scheme that put greed and profits ahead of patients and their well-being.  In doing so, he betrayed his professional obligations and bilked insurance companies and Medicare out of millions of dollars.  Thanks to the coordinated efforts of federal and state investigative agencies, Spina will now serve a lengthy sentence in federal prison.”

In 2018, Spina and three others were charged with billing insurers for medically unnecessary services and procedures, submitting claims for services not rendered, double-billing for services, fabricating medical records and concealing the fraud by blocking audits. The submitted claims totaled more than $80 million.

All four individuals who were charged have pleaded guilty.

264 Days and Counting

 

My congratulations to Eric Dinowitz 11th Council District, and Oswald Feliz 15 Council District up there in the Bronx on winning your respective special elections. We knew you were going to win Eric, and Oswald you pulled it out. 

Both of you will finish out the terms that the previous council member did not. That means that all three of us will be leaving on December 31, 2021, that is me at least because both of you are running for re-election, something I can't.

A RECOVERY FOR ALL OF US: MAYOR DE BLASIO, CHANCELLOR PORTER, DYCD COMMISSIONER CHONG ANNOUNCE INNOVATIVE SUMMER RISING PLAN

 

Summer Rising will provide hands-on academic support & enrichment opportunities as well as critical childcare services  

   

 Mayor Bill de Blasio, Schools Chancellor Meisha Porter and Department of Youth & Community Development (DYCD) Commissioner Bill Chong today announced Summer Rising, the City’s free, summer plan for any child in grades K-12 who wants to participate. For the first time ever, the City will use the Community Schools strategy to integrate the New York City Department of Education’s (NYCDOE’s) academic supports and DYCD’s school-based enrichment programming to create a comprehensive summer program during the most critical summer for New York City students. Summer Rising will be student-centered, experiential, academically rigorous and culturally responsive and sustaining.  

  

Applications for in-person K-8 programs will open on Monday, April 26, and families can sign up through the discover DYCD website. Kindergarten and elementary school students will participate in a five-day a week program for seven weeks, providing critical childcare services for families as they return to the workplace. Students with 12-month IEPs will participate in a five-day a week program for six weeks. Middle school students will participate in a four-day a week program for six weeks, and high school students will participate in a five week program with tailored scheduling to meet their needs. In addition, high school students will have the opportunity to engage in the Summer Youth Employment Program (SYEP) and participate in the Public Schools Athletic League. Schools will begin outreach to families of high school students in the coming weeks to confirm participation. Students attending for promotion purposes will be in the same program as students participating for enrichment.

     

“Our kids have been through so much, and they need our support as we build a recovery for all of us,” said Mayor Bill de Blasio. “This is a free program for all New York City students, combining academics and cultural enrichment for the best summer yet.”

 

“This summer is pivotal for our school communities, and we have created a summer experience unlike anything we have ever done before to bring our students back stronger than ever. Summer Rising will be a holistic experience that combines the power of strong academic supports, social emotional learning and enrichment programming,” said Schools Chancellor Meisha Porter. “Through this innovative partnership with DYCD and our trusted community partners, and thanks to our heroic principals, teachers and staff, we’ll be able to serve any New York City student who wants to attend in-person so they can receive the comprehensive supports they need during this critical time.”

   

“Summer Rising is truly the best of both worlds: bringing together for the first time the strengths of DYCD-funded summer enrichment initiatives and DOE’s academic programs into a singular experience for young people, particularly those from communities hardest hit by the COVID-19 pandemic. DYCD and our network of community providers are excited to join DOE in keeping classrooms open this summer for safe learning, childcare, connection, and fun,” said DYCD Commissioner Bill Chong.  

  

Summer Rising will address immediate academic and social emotional needs of children and youth across the City. Planned and operated collaboratively by school principals and trusted community-based organizations (CBOs), programs for students in grades K-8 will be available citywide including tailored support for those who need academic support and students with disabilities. These programs will provide a bridge to next school year and allow students to re-connect with one another and with their schools, to ensure continued learning, and provide avenues for recreation, exploration, and fun. High school students will have access to academic and social emotional supports designed locally to meet the unique needs of older students.  

  

Summer locations will be available in every borough, with nearly half of all DOE school buildings serving students citywide. All programs will follow rigorous health and safety protocols and have access to testing, nursing support and a telehealth call center. In addition, Situation Room policies and protocols will be followed.  

  

All K-8 students participating in programs will have access to academic classes, enrichment programming including field trips, arts activities and outdoor recreation, and will engage in daily social emotional learning activities.    

  

All programs will be free, in-person, and run in four time frames:  

  

* Students in grades K-5 will participate in summer programming from July 6 to August 20. Students will engage five days a week, receiving academic support, engaging in social emotional learning activities, and participating in enrichment programming.  

* Students with 12-month IEP services will participate in summer programming from July 2 to August 13, five days a week. They will receive instruction and related services based on their IEPs, as well as enrichment programming. 

* Students in grades 6-8 will participate in summer programming from July 6 to August 12. Students will engage four days a week, receiving academic support, engaging in social emotional learning activities, and participating in enrichment programming.

* Students in grades 9-12 who have a Course in Progress, or who need to retake a course they failed in a prior term, will participate in academic instruction from July 6 to August 13. High school students will also have the opportunity to accelerate learning, and access social emotional supports and arts programming. Similar to prior years, high school students will continue to have the opportunity to participate in the Summer Youth Employment Program (SYEP).  

  

There will be remote programming available for interested families whose children are mandated for summer learning or have a 12-month IEP. Program offerings for high school students will depend on school community need and may include a mix of in-person and remote options. 

 

Consistent with years prior, schools will notify families by June if their student is required to participate in summer learning and will share additional details with families about how they can enroll. These students will participate together in the same Summer Rising programs as those students not mandated to attend.

 

In line with previous policy and practice, grade promotion decisions are based on a holistic review of a student's progress toward meeting the standards for their grade level. Teachers will review multiple pieces of student work in English language arts and math to make these decisions. State test scores will not be a factor in whether a student is promoted. If a school requires a student to attend summer learning, their promotion to the next grade is contingent on demonstrating sufficient progress in their summer learning.   

"Our students have suffered tremendously since the pandemic started, particularly those in communities hardest hit by Covid-19 and they will need support to successfully rebound. The Summer Rising program will provide them with the academic, social and emotional support they need to be ready for school in September while also having fun. The Council is proud to support this initiative and will continue fighting for the support and services our students need to thrive," said Council Speaker Corey Johnson.  

 

“Successful implementation of the community schools strategy has showed us what is possible when schools and Community Based Organizations partner together in meaningful ways,” said Christopher Caruso, Senior Executive Director for  the DOE’s Office of Community Schools. “Summer Rising will capitalize on this strategy at unprecedented scale and is a great step forward for our City’s children and families as we recover from the pandemic.”

 

"Children deserve engaging programs that affirm their identities and offer joyful learning. Summer Rising will allow schools and nonprofits to partner and offer a blend of enrichment and acceleration to make this a great summer,” said Saskia Trail, President and CEO, ExpandED Schools.

 

“Our experience last summer with Recovery Lab affirmed what we have always known -- that combining academic and social emotional supports for children and youth is key. As an organization that is both a direct service provider and a capacity builder, Children's Aid is excited about the opportunity that Summer Rising presents to not only support New York City's students through the summer and into the new school year, but to bring about new ways for schools and communities to work together.  We are encouraged to see community-based organizations lifted up as crucial partners of the educational continuum as we continue to heal as a city. We stand ready as collaborators on the planning and implementation of this effort and are hopeful to see this level of partnership become the norm going forward,” said Phoebe Boyer, President and CEO, Children’s Aid.

 

Butler Memorial United Methodist Church Food Giveaway in collaboration with Senator Jamaal T. Bailey

 

Hello Neighbor, Kindly bring a large Heavy-Duty bag and Cart for produce. We hope to see you there!

Bronx Board of Elections Rank Choice Voting Count in the 11th and 15th City Council Districts

Tables were set up at the Bronx Board of Elections for the Rank Choice Voting redistribution of votes if no candidate won over fifty percent of the vote. 

The 11th Council District tables in the background in blue, and the red tables were for the 15th council district. Bins were set out with the candidate names on them, including two bins one marked write in, and the other marked exhausted (for ballots that were void, or when it got to the next round of RCV no longer had a candidate that was not eliminated). 

In the first two days the ballots were separated by candidate, and by each election district in each assembly district. Tally sheets were also made up for each election district in every assembly district in the election. The absentee ballots were added into the election day totals, and in the 11th council district candidate Eric Dinowitz went from 42% to 48% cementing a victory in the 11th City Council. In the 15th council race after the absentee ballots were distributed the leading candidate Oswald Feliz went from 28% to 27%, while second place candidate Ischia Bravo went from 21% to 22%, with third place candidate John Sanchez going up to 21% for a total of 70% of the vote between these three candidates with very little chance of any of the three candidates being able to declare victory until the third place candidate is eliminated.

In the 15th Council District on day two the 12 write in votes were redistributed, with half being exhausted for not having any other candidate listed. That process took over a half hour because every tally sheet had to be adjusted for write in candidates or marked zero for none. The process then began for the tenth place candidate Mr. Ariel Diaz which took over one hour. The ninth place candidate Jose Padilla Jr. was eliminated and his votes had to be redistributed or exhausted ending the RCV process for day two. While there were only about 4,000 votes cast in the 15th district or ten candidates, in the 11th district there were about 9,000 votes cast for only six candidates. 

 You can see the bins with votes in them, and the bins on top of the three leading candidates expected to be needed for votes to be placed in them during the rounds of RCV in the 15th council district.

Here you can see the group of tally sheets that have to be filled out for each Election District for each candidate, and some of the votes to be redistributed carefully not showing any candidates name of where the vote went.

A confident candidate Oswald Feliz who has a slight lead over candidates Ischia Bravo and John Sanchez in the 15th council district before any votes were redistributed.

We should know in a few days if candidate Feliz is indeed the winner or if candidate Bravo or candidate Sanchez pull out a victory in Rank Choice Voting.