Two Texas Men And One Oregon Man Charged With Fraud Scheme To Obtain Over $14 Million In Covid-Relief Loans

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Amaleka McCall-Brathwaite, Eastern Region Special Agent-in-Charge of the Office of the Inspector General of the U.S. Small Business Administration (“SBA”), Jonathan D. Larsen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Stephen Donnelly, Acting Special Agent in Charge of the Office of the Inspector General of the Board of Governors for the Federal Reserve announced that APOCALYPSE BELLA, a/k/a “Dias Yumba,” MACKENZY TOUSSAINT, a/k/a “Mack,” and AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” were charged with participating in a fraudulent scheme to obtain over $14 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. TOUSSAINT and MUNDENDI are expected to be presented tomorrow before a U.S. magistrate judge in the Northern District of Texas.  BELLA was arrested on March 18, 2021 in the Eastern District of Virginia.  The case is assigned to U.S. District Judge Alvin K. Hellerstein.

U.S. Attorney Audrey Strauss said:  “Apocalypse Bella and his co-defendants are charged with engaging in a scheme to obtain over $14 million in fraudulent loans from the government. The Coronavirus pandemic has profoundly affected the global economy, and Government-funded Coronavirus loan programs provide much-needed economic relief to individuals, families, and businesses suffering economic hardships.  This Office and our law enforcement partners will continue to ensure the watchful protection of these critical funds from fraud.”

FBI Assistant Director William F. Sweeney Jr. said:  “As alleged in the indictment, the defendants in this case are charged with fraudulently securing loans intended to help honest small businesses and their employees deal with the pandemic’s economic effects.  Our actions should serve as a reminder of our steadfast commitment to bringing justice to those who would seek to illegally leverage government programs for selfishly personal gains.  These defendants now face a personal reckoning - the result of which may be an extended stay in federal prison for each of them.”

IRS-CI Special Agent-in-Charge Jonathan Larsen said:  “The CARES Act and the Payroll Protection Program have been a life line to help sustain the many small and large businesses who were impacted by the pandemic.  The defendants are accused of fraud against these programs solely to enrich themselves, a flagrant and reprehensible abuse of these programs, which has kept so many American businesses afloat. Today’s charges make it clear that IRS-CI and our partners will continue to aggressively root alleged abusers of these programs.”

Acting Special Agent in Charge, Eastern Region, OIG for the Federal Reserve Board and CFPB Stephen Donnelly said: “We are fully committed to bringing to justice wrongdoers who exploit and defraud financial institutions and the government’s response to the COVID-19 pandemic.” 

SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite said: “Law enforcement will identify all conspirators to pull fraud schemes out by the roots. SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”     

According to the Indictment[1] unsealed today in Manhattan federal court:

APOCALYPSE BELLA, a/k/a “Dias Yumba,” MACKENZY TOUSSAINT, a/k/a “Mack,” and AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” were involved in an extensive scheme to prepare and submit fraudulent applications to the Small Business Administration (“SBA”) and to at least one company which processes loan applications under the SBA’s Paycheck Protection Program (“PPP”), in order to obtain at least approximately $14 million in government-guaranteed loans for various companies through the PPP, designed to provide financial relief to qualifying companies during the novel coronavirus/COVID-19 pandemic. 

This scheme resulted in the approval of fraudulently procured loans for two companies (“Company-1” and “Company-2”), both located in the Southern District of New York, totaling approximately $4 million, and the distribution of the proceeds of these fraudulently obtained funds to a series of bank accounts located in the United States and elsewhere, including bank accounts controlled by TOUSSAINT and BELLA. 

The PPP loan applications for Company-1 and Company-2 were false, containing lies designed to maximize proceeds to the fraud scheme.  Specifically, applications for both Company-1 and Company-2 contained material differences from loan applications submitted for both companies for the Economic Injury Disaster Loan (“EIDL”) program just months earlier.  For instance, the PPP loan application for Company-1 represented that Company-1 had over 100 employees.  However, an earlier EIDL loan application for Company-1 dated on or about March 30, 2020, represented that Company-1 had only four employees.

BELLA, TOUSSAINT, and MUNDENDI devised and executed this fraudulent scheme by conspiring with individuals who own, operate or otherwise are affiliated with businesses, such as Company-1 and Company-2.  BELLA, TOUSSAINT, MUNDENDI, and other co-conspirators supervised and coordinated the submission of fraudulent PPP loan applications for those businesses, and in some cases, completed and/or submitted the fraudulent applications themselves.        

BELLA, 36, of Clackamas, Oregon, TOUSSAINT, 39, of Irving, Texas, and MUNDENDI, 32, of Dallas, Texas, are charged with one count of conspiracy, which carries a maximum sentence of five years in prison, one count of major fraud against the United States, which carries a maximum sentence of ten years in prison, and one count of wire fraud and wire fraud conspiracy, each of which carry a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Ms. Strauss praised the outstanding work of the FBI, SBA-OIG, IRS-CI, and the OIG for the Federal Reserve.

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

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

MAYOR BILL DE BLASIO ANNOUNCES PROGRESS ON RETURN TO OFFICE PLANS FOR CITY WORKERS

Agencies invest over $206 million in rigorous health and safety measures

 As an additional 80,000 City workers prepare to begin to return to the office on Monday, May 3^rd, Mayor Bill de Blasio today announced that the Mayoral Restart Taskforce has approved bespoke return to office plans for 65 mayoral offices and agencies in New York City. The Taskforce, which met with each agency or office individually, worked across government to ensure City workers return to a workplace that has been thoroughly and exhaustively prepared to welcome them back safely.

 

From June 2020 to March 2021, New York City spent over $206 million to prepare office buildings for workers’ return. Further resources will be allocated as needed to make necessary adjustments and keep workplaces safe.

 

“New York City will spare no effort to ensure our public servants return to workplaces that are fully equipped to keep them safe. With nearly 6 million vaccine doses already distributed, and individualized safety plans for every office, now is the perfect time to take the next step in building a recovery for all of us,” said Mayor Bill de Blasio. “City workers have served their fellow New Yorkers tirelessly throughout this pandemic, and I look forward to welcoming them back with open arms.”

 

Approved plans are in alignment with extensive guidance developed by the Department of Citywide Administrative Services, the Department of Health and Mental Hygiene, and the Office of Labor Relations. The Taskforce required careful calculation of occupancy based on physical distancing and HVAC-related factors, as well as adherence to rigorous policies mandating face coverings, cleaning, and health screenings.

 

"Dedicated public servants have helped New York City throughout this pandemic, and they will be essential to our city's recovery," said Quintin Haynes, Executive Deputy Commissioner of the NYC Department of Citywide Administrative Services. "In preparation for city agencies returning teleworking employees to the office, DCAS and the Mayoral Restart Taskforce offered comprehensive guidance to all city agencies to help safeguard employees and ensure a smooth transition."

 

“As we’ve learned, the precautions we take can make a tremendous difference,” said Health Commissioner Dr. Dave A. Chokshi. “Creating a workspace that enables staff to distance and remain masked is critical. I also urge every New Yorker – including municipal employees – to get vaccinated. It is the single greatest precaution we can take to protect ourselves and those we love.”

 

Mayor de Blasio also confirmed today that nearly 180,000 City workers have already received their first vaccination dose, and over 146,000 have been fully vaccinated. The City has set up vaccination sites in every borough specifically for City workers. Last week, the Mayor announced 99% of New Yorkers live within one mile of a vaccine site.

 

Ten different agencies have begun their own vaccination programs, and vaccine appointment booking services have been made available for City staff to book appointments for themselves and their families. The Vaccine Command Center is coordinating inter-agency efforts to book appointments for city employees at sites citywide, including 100 Church Street – a new site dedicated to City employees.

 

The City has also partnered with labor unions and the Office of Court Administration to provide dedicated vaccine programs.

 

Approximately 220,000 employees, the majority of the City's workforce, have been in the office or field throughout the pandemic. Those beginning to return on May 3^rd have been teleworking. Approximately 43 percent of the City workforce will be in the office every day; the Mayor’s Office will operate at 50 percent of capacity.

 

Watch Out For Companies Trying to Get Information From You. Where is the New York State Attorney General's Office on this Attempted Fraud?

 

What is going on here, or is this fraud New York State Attorney General James

This company already has my information to ship this order so why are they having me take additional surveys that have nothing to do with this which keeps saying two more steps?

Order in Process

Free Shipping

$0.00 - No Cost

Complete the survey to qualify

2 more steps!

Quickly take our short survey and get matched to more savings

195 million American adults take at least 

1 prescription medication. 

How many do you take?

I take 1 prescription medication

I take 2-4 prescription medications

I take 5-10 prescription medications

I take 11 or more prescription medications

I do not take any prescription medications

2 more steps!

Quickly take our short survey and get matched to more savings

90% of Americans have health insurance. 

What is your primary plan?

HMO

PPO

Medicare

Affordable Care Act (ACA)

Medicaid

I don't have insurance

2 more steps!

Quickly take our short survey and get matched to more savings

Over 30 million Americans have diabetes. 

Do you or a loved one have diabetes?

Yes I or a loved one have diabetes

Yes and I or a loved one test for blood sugar about two times per day

Yes and I or a loved one test for blood sugar four or more times per day

No we do not have diabetes

• -----------------------------------------------------------------------------------

At this point I stopped and wrote this article.

If it looks to good to be true, It probably isn't, 

someone is trying to sell you something.

We are now going to turn this over to the 

New York State Attorney' General Office.

254 Days and Counting

 

It's January 1, 2021, this is my new job.

So that's what I have to look forward to when I am term limited out of office.

MANHATTAN MAN INDICTED FOR POSSESSING 15 LBS. OF COCAINE IN HIS CAR AND FOR ATTEMPTING TO FLEE FROM POLICE IN BRONX

 

Officers Found $2 Million in Drugs During Traffic Stop in Mount Eden 

 Bronx District Attorney Darcel D. Clark today announced that a Manhattan man has been indicted on multiple Criminal Possession of a Controlled Substance charges after police found 15 pounds of cocaine, with a street value of over $2 million dollars, in his car during a traffic stop in the Bronx. 

 District Attorney Clark said, “The defendant was allegedly speeding and tried to flee from police when they attempted to conduct a traffic stop. When police arrested the defendant, they allegedly found six bricks of cocaine weighing a total of 15 pounds in his car. The police stopped a large amount of illegal drugs--whose profits fuel violence and other crimes--from being sold on our streets.” 

 District Attorney Clark said the defendant, Melvin Read-Svazo, 33, of 1980 Park Avenue, Manhattan, was arraigned today on first and second-degree Criminal Possession of a Controlled Substance, two counts of third-degree Criminal Possession of a Controlled Substance, fourth, fifth and seventh-degree Criminal Possession of a Controlled Substance, third-degree Unlawful Fleeing of a Police Officer in a Motor Vehicle, second-degree Reckless Endangerment and Reckless Driving before Bronx Supreme Court Justice Efrain Alvarado. Bail was set at $75, 000 cash/$75,000 bond/$75,000 partially secured bond at 10 percent. The defendant is due back in court on July 9, 2021.

 According to the investigation, at approximately 12:27 a.m. on February 7, 2021 on the corner of Mount Eden Parkway and Selwyn Avenue, police officers in a marked car saw the defendant in a white BMW X6 with temporary New Jersey license plates speeding. Police Officers activated their lights and the defendant ignored them and continued to speed, driving through a red light. Read-Svazo, who had an open warrant, allegedly got out of the car and fled on foot. Police caught up to him and he was arrested on the corner of Walton Avenue and East 175th Street. When officers checked the defendant’s vehicle, they allegedly found two bags in the rear passenger floor which contained 6.8 kilos (15 pounds) of cocaine.

 An indictment is an accusatory instrument and not proof of a defendant’s guilt.

Attorney General James’ Office of Special Investigation Releases Report on the Death of Michael Wallace

 

 New York Attorney General Letitia James’ Office of Special Investigation (OSI), formerly known as the Special Investigations and Prosecutions Unit (SIPU), released its report on the death of Michael Wallace. After a thorough and exhaustive investigation, including evidence from body-worn cameras, 911 recordings, medical records, and many hours of police and civilian witness interviews, OSI determined that the justification for the use of force in this situation exercised by the Schenectady Police Department (SPD) could not be disproven beyond a reasonable doubt.

In the early hours of March 24, 2020, two separate incidents occurred involving Mr. Wallace and members of SPD. The first incident was initiated by a 911 call placed by Mr. Wallace at approximately 5:20 A.M. In his call to 911, Mr. Wallace was somewhat incoherent but the fact that he was experiencing a mental health issue was abundantly clear. Officers were sent to meet Mr. Wallace, and when they arrived at his apartment, he continued to exhibit signs of a mental health issue. His fiancé was with him at the time, and after assurances from Mr. Wallace and his fiancé that he was okay, officers left.

Three hours later, a security guard at Mr. Wallace’s apartment complex placed an emergency call and reported that Mr. Wallace had pulled a gun on an employee of the apartment complex. When SPD officers arrived at the scene, they kicked the door to Mr. Wallace’s apartment and announced their presence. The door abruptly swung open, and Mr. Wallace appeared to be holding a pistol that was aimed at them. SPD officers then opened fire. Mr. Wallace was taken to a nearby hospital where he was pronounced dead. The weapon that was pointed at the officers was later confirmed as a CO2 pellet pistol.

In this case, the critical factor was whether or not the officers reasonably believed that deadly physical force was necessary to defend themselves or another individual from what they reasonably believed to be the use or imminent use of unlawful deadly physical force by another person. Because it was reasonable for the shooting officers to believe that deadly physical force was necessary to defend themselves or other officers from what they believed to be the use or imminent use of deadly physical force by Mr. Wallace, OSI determined that criminal charges could not be pursued against any officer in this case.

However, the totality of the circumstances involved in this tragic incident underscores the need for communities to develop programs that direct mental health professionals, not police officers, to mental health-related calls for assistance, where there is no indication that a police response is needed — such as Mr. Wallace’s initial 911 call. The OSI strongly recommends that SPD and its community partners work toward developing this type of response program for Schenectady.

“This incident highlights the tragic reality that too many of our communities are ill-equipped to handle emergency mental health crises that demand a response from mental health professionals, not police,” said Attorney General James. “Mr. Wallace was clearly experiencing mental health concerns, and it’s a great tragedy that it resulted in a dangerous and ultimately fatal situation. It’s critical that the city of Schenectady and municipalities across the state develop systems that divert mental health calls away from a law enforcement response, and instead, are directed to mental health professionals who are trained to support individuals in these crises. I express my condolences to Michael Wallace’s family, friends, and loved ones, and I will continue to advocate for the change that is desperately needed.”

Akayed Ullah Sentenced To Life In Prison For Bombing New York City Subway Station In 2017 On Behalf Of ISIS

 

 Audrey Strauss, the U.S. Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the Police Department for the City of New York (“NYPD”), announced that AKAYED ULLAH was sentenced today in Manhattan federal court to life in prison for carrying out a terrorist bombing attack on behalf of the Islamic State of Iraq and al-Sham (“ISIS”) in a subway station under the Port Authority Bus Terminal in New York City on December 11, 2017.  In November 2018, a jury convicted ULLAH after a one-week trial of all six counts in the Indictment.  The sentence was imposed by the Honorable Richard J. Sullivan, who also presided over the trial. 

Manhattan U.S. Attorney Audrey Strauss said:  “Akayed Ullah, previously convicted in a New York federal court of carrying out a lone-wolf bombing attack on behalf of ISIS at the Port Authority Bus Terminal, a bustling transit artery in New York City, admittedly intended to murder as many innocent Americans as possible. Ullah’s motive was clear and unambiguous: a deeply held ideological hatred for America. Ironically, Ullah’s actions resulted only in reaffirming the greatness of America by displaying the fairness and impartiality for which our justice system stands. Ullah received a speedy, fair, public trial, and was convicted by a jury of his peers. Akayed Ullah’s message of hatred clearly backfired; his just sentence of life in prison only exemplifies that cowardly acts of terrorism will be met with law enforcement’s unwavering resolve to protect our core values of freedom and democracy.”

Assistant Attorney General John C. Demers said:  “Ullah constructed a pipe bomb and detonated it in a mass transit hub in the heart of New York City to harm and terrorize as many people as possible – and he admitted that he did it on behalf of ISIS. This case reminds us that the threat of ISIS-inspired terrorism remains real. This sentence holds Ullah accountable, as he will spend the rest of his life in federal prison for his crimes. I want to thank all of the agents, analysts, and prosecutors whose outstanding work made this result possible.”

FBI Assistant Director William F. Sweeney Jr. said:  “Bound and determined to incite fear and create a mass casualty incident, Ullah detonated a pipe bomb of his own creation in one of New York City’s major transportation hubs during morning rush hour. The quick thinking of PAPD officers, who responded to the threat undeterred by the potential risk to their safety, in addition to the work of the FBI’s JTTF and the NYPD, is another example for the public of our joint commitment to keep the citizens and visitors of New York City safe. Today’s sentencing is a just ending in this case.”

NYPD Commissioner Dermot Shea said:  “Akayed Ullah accepted the call from ISIS to target and kill New Yorkers. Through planning and research, he built a pipe bomb and detonated it in the heart of the New York City Transit System under the Port Authority Bus Terminal. Fortunately, this cowardly act resulted in no loss of life to New Yorkers.  I commend the FBI agents and NYPD detectives of the JTTF, prosecutors from the United States Attorney for the Southern District of New York, and our other Law Enforcement partners for bringing this individual to Justice.”

As set forth in the Complaint, Indictment, evidence presented at trial, and other court filings and proceedings:

On December 11, 2017, at approximately 7:20 a.m., AKAYED ULLAH detonated a pipe bomb strapped to his chest in a subway station under the Port Authority Bus Terminal in midtown Manhattan.  Shortly after the blast, first responders located ULLAH lying on the ground in the station where he had detonated the improvised explosive device, and he was taken into custody.  Surveillance footage captured ULLAH walking through the station immediately prior to the explosion, and then detonating the bomb.

ULLAH began radicalizing in about 2014.  ULLAH was angry at U.S. foreign policy in the Middle East, and began seeking out online materials promoting radical Islamic terrorist ideology.  In particular, ULLAH was inspired by ISIS propaganda, including a video in which ISIS instructed supporters to carry out attacks in their homelands if they were unable to travel overseas to join ISIS.  ULLAH began researching how to build a bomb about a year prior to his attack.  He built his pipe bomb in the weeks leading up to the attack at his Brooklyn apartment.     

Following the attack on December 11, 2017, law enforcement located remnants of the pipe bomb on ULLAH’s person and strewn across the attack site in the subway station.  Law enforcement found, among other things: (i) a nine-volt battery inside ULLAH’s pants pocket, which he used as the power source for triggering the bomb; (ii) wires connected to the battery and running underneath ULLAH’s jacket; (iii) plastic zip ties underneath ULLAH’s jacket, which he used to strap the bomb to his body; (iv) several fragments of a metal pipe, which ULLAH had filled with an explosive substance that he made using sugar and match heads; (v) fragments of Christmas tree lightbulbs attached to wires, which ULLAH used to ignite the explosion; and (vi) numerous metal screws.  ULLAH filled his pipe bomb with dozens of metal screws to function as shrapnel, for the purpose of causing maximum damage.

On the morning of the attack, shortly before detonating his bomb, ULLAH posted a statement on Facebook referring to the then-President of the United States, stating: “Trump you failed to protect your nation.”  ULLAH also posted an ISIS slogan so that ISIS would know that he had carried out the attack on behalf of ISIS.

After ULLAH was taken into custody following the attack, he waived his Miranda rights and spoke to law enforcement.  ULLAH stated, among other things, that he carried out the bombing on behalf of ISIS, and chose a busy weekday morning for the attack in order to “terrorize as many people as possible.”  One commuter who was inside the station when ULLAH detonated the pipe bomb suffered a shrapnel wound to his leg, and two other victims partly lost their hearing as a result of the blast.  ULLAH’s attack caused the Port Authority subway station and bus terminal to shut down temporarily, disrupting the lives of commuters across the New York City area.

After the attack, law enforcement searched ULLAH’s apartment pursuant to a search warrant.  Agents recovered, among other things, ULLAH’s passport, which contained the handwritten statement, “O AMERICA, DIE IN YOUR RAGE.”  Less than two weeks before carrying out the attack, ULLAH had watched and drawn inspiration from a particular ISIS propaganda video that proclaimed, “die in your rage, America,” with an image of the U.S. Congress in the background.

Later in December 2017, while in custody at the Metropolitan Correctional Center on the charges in this case, ULLAH began chanting “more is coming” at a correctional officer, and then told the officer: “You started this war, we will finish it. More is coming, you’ll see.”

In addition to the prison term, ULLAH, 31, was sentenced to life of supervised release.   

Ms. Strauss praised the outstanding investigative efforts of the FBI, the NYPD, and the Port Authority of New York and New Jersey Police Department.  ULLAH’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York and the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. 

Governor Cuomo Announces Lowest One-Day Positivity Since November 5, 2020

 

3,567 Patient Hospitalizations Statewide; Lowest Hospitalizations Since November 29, 2020

811 Patients in the ICU; Lowest ICU Patients Since December 3, 2020

499 Intubated; Lowest Intubations Since December 7, 2020

Statewide 7-Day Average Positivity Rate is 2.57%; Lowest 7-Day Positivity Since November 1, 2020

45 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.

Earlier today, Governor Cuomo was on Long Island where he announced that the region's 7-day average positivity, 2.76 percent, is the lowest it has been since November 10, 2020, and the region's hospitalizations, 540, is the lowest it has been since November 30, 2020.

"The dedication and determination of New Yorkers in fighting the COVID pandemic is stronger than ever and it shows in the numbers," Governor Cuomo said. "As our hospitalizations continue to decrease and vaccination rates increase, we are closer than ever to the light at the end of the tunnel. While we should all be encouraged by the progress we've made, this fight is not yet over and I urge New Yorkers to continue following the practices we know stop COVID in its tracks: wear a mask, wash your hands and social distance. We're all in this together, united, loving and New York Tough."

Today's data is summarized briefly below:

• Test Results Reported - 242,432
• Total Positive - 4,996
• Percent Positive - 2.06%
• 7-Day Average Percent Positive - 2.57%
• Patient Hospitalization - 3,567 (-190)
• Net Change Patient Hospitalization Past Week - -369
• Patients Newly Admitted - 405
• Hospital Counties - 51
• Number ICU - 811 (-6)
• Number ICU with Intubation - 499 (-6)
• Total Discharges - 172,383 (+511)
• Deaths - 45
• Total Deaths - 41,678