RECOVERY FOR ALL OF US: CITY ANNOUNCES SMALL BUSINESS ECONOMIC SUPPORT PROGRAMS

 

Over $155 million will be allocated to small businesses across the City

 

 Mayor Bill de Blasio, the Office of Management and Budget (OMB), and NYC Department of Small Business Services (SBS) Commissioner Jonnel Doris announced that over $155 million will be allocated for small business recovery and job training in emerging markets in New York City’s Executive Budget for Fiscal Year 2022 (FY22).

 

Since the beginning of the pandemic, SBS has launched 28 initiatives to help small businesses and jobseekers stay resilient, including a hotline that has helped over 57,000 callers and resources connecting 5,000 businesses to over $142 million in funding. Through the City’s ‘Fair Share: PPP’ program, 4,174 businesses received assistance in applying for $294 million in PPP. The FY22 Executive Plan is expected to reach 40,000 businesses across the five boroughs.

“Small businesses knit New York City together – and they were hit hard last year, even as Wall Street made record profits. But help is on the way,” said Mayor Bill de Blasio. “These investments will keep New York City the most vibrant city in the world and help build a recovery for all of us.”

“Small businesses are the backbone of NYC’s economy, their survival is imperative to the City’s future," said J. Phillip Thompson, Deputy Mayor for Strategic Policy Initiatives and Co-Chair of the Racial Inclusion and Equity Task Force. "Our work is far from finished, but the City is committed to a fair, just, and inclusive recovery for all small businesses." 

 

“As the City continues on its journey to recovery, it is critical that we make small businesses the central focus of our relief efforts,” said Jonnel Doris, Commissioner of the NYC Department of Small Business Services and Co-Chair of the Small Business Subcommittee of the Taskforce on Racial Inclusion and Equity. “SBS will continue to strive for an inclusive recovery, ensuring all small businesses have the resources they need to get back on their feet.” 

In the new fiscal year, the following new and existing programs will help to boost the resilience of small businesses across the City, create more job opportunities in emerging markets and revitalize commercial corridors.”

Facilitating Economic Resilience

 

NYC Small Business Loan Fund

The NYC Small Business Recovery Loan program is a $100 million fund, partly funded with private capital, dedicated to helping small businesses retain staff and keep their doors open. Using census tract data to target communities hardest hit by COVID-19, New York City will provide low-interest loans of up to $100,000 to approximately 2,000 small businesses.

 

Small Business Grant Program

The $100 million Small Business Grant Program will provide direct support to small businesses to boost our recovery and put New Yorkers back to work. It will include $50 million in rental assistance for small businesses in the arts, entertainment, recreation, food services, and accommodation sectors, and an additional $50 million focused on small businesses in low- to moderate income communities, using census tract data, to hire staff or meet unpaid expenses incurred since March 2020.

 

Commercial Lease Assistance Program

The existing Commercial Lease Assistance program will receive $10.4 million to provide expanded free legal services to help businesses sign, change or terminate leases, or address a commercial lease issue. This funding will help to expand outreach to small businesses in the 33 hardest hit neighborhoods identified by the Mayor’s Taskforce on Racial Inclusion & Equity (TRIE) that were disproportionately impacted by the COVID-19 pandemic.

 

Accelerate Small Business Reopening/Opening

The City will allocate $5 million to establish a small business recovery “one-stop shop” service to help businesses meet requirements for opening/reopening inspections, licensing and permitting as the COVID-19 pandemic subsides.

 

Catalyzing Job Opportunities in Emerging Markets

 

Career Pathways

The Career Pathways Initiative will receive $2.5 million to support training in the technology, healthcare, industrial, and food service sectors, with a special focus on connecting underrepresented groups to careers such as web development, data analysis, commercial driving, cable installation, nursing and medical assistant.

 

Apprentice NYC

Apprentice NYC will receive $1.5 million. This initiative recasts a traditional workforce development approach to address 21^st century skills, allowing workers to learn while they earn in careers in healthcare, tech, manufacturing, and food service.

Green Jobs & Manufacturing

HireNYC Construction Careers will receive $1.5 million that connects NYCHA residents and low-income New Yorkers to the construction trades through pre-apprenticeship training. This strategy leverages the City’s investments in capital construction projects to help maximize the number low income New Yorkers and NYCHA residents that enter the trades. This funding will also assist manufacturing businesses in developing blueprints to manufacture more products locally and reduce operating costs.

 

Revitalizing Commercial Corridors

 

Avenue NYC Program

The Avenue NYC Commercial Revitalization program will receive $1.2 million to expand outreach into more neighborhoods, exclusively in low- to moderate income neighborhoods with a focus on the 33 hardest-hit neighborhoods defined by TRIE that were disproportionately impacted by the COVID-19 pandemic. 

 

Shop Your City Campaign

The Shop Your City advertising campaign will receive $1.1 million to support businesses by encouraging New  Yorkers to shop locally.

 

Partnerships for Parks - Webinars, SummerStage, and more!

 

PRIORITIZING PARKS IN THE 2021 NYC ELECTIONS: ESSENTIALS FOR GRASSROOTS ADVOCACY New York City’s 2021 citywide elections arrive amidst a public health crisis, economic challenges, increasing threats to our climate, and a reckoning with injustices. Parks play a central role in addressing all of these issues and shaping the future of our communities and city. How do we elevate the urgent needs facing parks, get candidates engaged, and make our voices heard? This webinar, co-led by New Yorkers for Parks, will help you learn how to advocate for parks and green spaces to support healthy, vibrant neighborhoods ahead of a pivotal election with historic turnover in City government. Join us to learn: Advocacy tips to raise the profile of parks as an urgent issue and how to take action The changes NYC will see in City government and the role elected officials play in influencing policies and funding for parks and green spaces How ranked-choice voting works and its impact on the election Featured speakers include: Carlos Castell Croke, Associate for New York City Programs, New York League of Conservation Voters. Jessica Saab, Advocacy and Communications Project Manager, New Yorkers for Parks Katherine Thompson, Co-chair, Friends of Bushwick Inlet Park Registration for this session is required and will close the day before the event. You will receive information on how to join the webinar once you register. If you have any questions, contact us at academy@cityparksfoundation.org. Wednesday, April 28 from 6:00 pm to 7:30 pm REGISTER NOW WORKING WITH NYC PARKS: HOW TO BUILD RELATIONSHIPS Community groups who support neighborhood parks and green spaces are most effective when they understand how NYC Parks operates and develop relationships with staff. NYC Parks can be a challenging system to navigate;   this webinar will help lay the groundwork for a mutually beneficial relationship so you can best advocate for projects in your community. Join us to learn: Examples of successful community group relationships with NYC Parks staff. How NYC Parks is structured, centrally and in each borough. Tips on how to build successful working relationships. Relevant COVID-19 updates to NYC Parks policies. Registration for this session is required and will close the day before the event. You will receive information on how to join the webinar once you register. If you have any questions, contact us at academy@cityparksfoundation.org. May 12 from 6:00 pm to 7:30 pm REGISTER NOW TOUR 25 YEARS OF PFP  As part of our 25th anniversary exhibition, It’s Our Park: 25 Years of Communities in Action, we created an in-depth view of the broad scope of work we accomplished over a quarter-century of caring for parks in New York City. Check out the Google Tours of this rich, 25-year history. Through text, photos, and videos you will travel to different neighborhoods and learn how PfP and our partners have helped shape the city by turning parks into thriving community spaces. CHECK OUT THE TOURS SUMMERSTAGE REOPENS  It's not summer without Capital One City Parks Foundation SummerStage. The festival is thrilled to announce it's coming back this summer with free performances in the Central Park venue and in Harlem’s Marcus Garvey Park.* Sing and dance in the parks this summer to celebrate! After an incredibly difficult year for our city, this summer the festival will be celebrating live performing arts with distinctly New York genres—hip-hop, Latin, indie rock, contemporary dance, jazz, and global. Performances will follow all state and local regulations regarding large-scale outdoor events, including limited capacity and socially-distanced seating. Admittance will require a free ticket, proof of vaccine and/or negative COVID test, and health screenings. All in-person performances will be live-streamed on SummerStageAnywhere.org, rights permitting.   Stay tuned for more details to come including the season lineup and how to reserve free tickets to attend. We can’t wait to see you in the parks this summer!  * Pending updates to NYC health/safety guidelines. MORE INFO Partnerships for Parks is a joint program of City Parks Foundation and NYC Parks that supports and champions a growing network of leaders caring and advocating for neighborhood parks and green spaces. We equip people and organizations with the skills and tools needed to transform these spaces into dynamic community assets.

Governor Cuomo Updates New Yorkers on State's Progress During COVID-19 Pandemic April 23, 2021.

 

Statewide Positivity Rate is 2.03%; Lowest One-Day Positivity Since November 5, 2020 

Statewide 7-Day Average Positivity Rate is 2.45%; Lowest 7-Day Average Positivity Since November 10, 2020 

3,387 Patient Hospitalizations Statewide; Lowest Hospitalizations SinceNovember 28, 2020

786 Patients in the ICU; Lowest ICU Patients Since December 2, 2020 

483 Intubated; Lowest Intubations Since December 6, 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 in New York City where he announced that the region's 7-day average positivity, 2.57 percent, is the lowest it has been since November 26, 2020 and the region's hospitalizations, 1,663, is the lowest it has been since December 9, 2020. 

"New Yorkers are once again showing their communities and the nation the meaning of New York Tough," Governor Cuomo said. "The progress we have made statewide in the decrease of infections and hospitalizations and the increase in vaccinations is bringing us closer than ever before to reaching our goals and putting an end to this COVID nightmare. While the fight is not yet over, I encourage New Yorkers to continue their great work and follow the practices we know stop the spread: wear a mask, wash your hands and social distance."

Today's data is summarized briefly below:

• Test Results Reported - 240,930
• Total Positive - 4,901
• Percent Positive - 2.03%
• 7-Day Average Percent Positive - 2.45% 
• Patient Hospitalization - 3,387 (-180)  
• Net Change Patient Hospitalization Past Week - -497
• Patients Newly Admitted - 378
• Hospital Counties - 52
• Number ICU - 786 (-25)  
• Number ICU with Intubation - 483 (-16)  
• Total Discharges - 172,873 (+490) 
• Deaths - 45
• Total Deaths - 41,723

U.S. Attorney Announces Extradition Of United Kingdom Citizen For His Role In An International Carbon Credit Fraud Scheme

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that CHRISTOPHER WRIGHT, a citizen of the United Kingdom, was extradited today from Spain.  WRIGHT is  charged with wire fraud and money laundering relating to his role in a telemarketing scheme involving the fraudulent sale of purported “carbon credits” to victims in the United Kingdom.   WRIGHT was arrested in Spain on January 27, 2021, and is the second defendant charged in the case.  WRIGHT is expected to be presented on Friday, April 23, 2021, before U.S. Magistrate Judge James L. Cott.  WRIGHT’s case is assigned to U.S. District Judge Jesse M. Furman. 

U.S. Attorney Audrey Strauss said:  “As alleged, Wright and his codefendants deceived retirees in the United Kingdom with false promises of big returns on restricted stock and environmentally friendly ‘carbon credits.’  Many of the victims lost their life savings, while Wright and his criminal associates allegedly hid the proceeds in the United States and overseas.  Thanks to the IRS and international cooperation, Wright is now in U.S. custody and facing charges in this District.”

IRS-CI Special Agent in Charge Jonathan D. Larsen said:  “The charges in this case are particularly troubling because this scam allegedly targeted the elderly and retirees, many of whom as a result have lost their hard-earned nest eggs.  This case is a painful reminder that cold-callers promising substantial investments are almost always looking to prey on the elderly. For those with elderly loved ones, take the time to warn them about these scams.”

According to the allegations in the Indictment:[1]

From in or about 2009 up to and including in or about 2015, WRIGHT and other co-conspirators engaged in a scheme to defraud victims in the United Kingdom through the sale of false, fraudulent, and materially misleading investments, and to launder the proceeds of the fraud through bank accounts in the United States and foreign countries.  WRIGHT used the services of telemarketing call centers to identify and cold-call potential victims, who were primarily elderly or retired individuals residing in the United Kingdom.  Over a series of telephone calls, the telemarketers persuaded victims to invest money under various false and misleading pretenses, including the promise of short-term, high-yield, no-risk returns, when in fact the investments were high-risk, illiquid, and in some instances, entirely fictitious.  Many victims were persuaded to make additional investments under the false pretense that they would not be permitted to sell their holdings until they purchased more.  In reliance on the false representations and promises, the victims wired funds to various bank accounts in the United States, including in the Southern District of New York, in the names of corporate entities controlled by one of Wright’s co-conspirators.  WRIGHT assisted in mailing and emailing of documents related to the fraudulent investments, including purchase contracts and investment certificates, to the victims.  Victims who tried to sell their investments found they were unable to do so.  The victims never received a refund on their principal or any return on their investments. 

In order to conceal the nature, location, source, ownership, and control of the proceeds of the fraudulent scheme, WRIGHT and his co-conspirators set up overseas bank accounts in Cyprus, Switzerland, and the United Kingdom, in the names of various shell companies, which were used to launder a substantial portion of the fraud proceeds.

The nature of the particular fraudulent investment vehicles being marketed to the victims changed over time.  From in or about 2009 until in or about 2011, WRIGHT and his co-conspirators sold the stock of Florida-based corporation DirectView Holdings, Inc. (“DirectView”), to the victims based on telemarketers’ false representations and promises that the shares were a no-risk, short-term investment in a debt-free company, and that the shares were likely to increase over 100 percent in value in a short period of time.  In fact, DirectView’s annual report filed with the United States Securities and Exchange Commission (“SEC”) for the year ending December 31, 2010, contained dire warnings about the poor fiscal health of DirectView and the risk attendant in purchasing stock, including that the company “may be forced to cease operations” due to losses and cash flow problems, and purchasers “may find it extremely difficult or impossible to resell our shares.”

From in or about 2011 until in or about 2015, WRIGHT and his co-conspirators engaged in the sale of fraudulent “carbon credits.”  “Carbon credits,” which are issued as part of governmental and voluntary regulatory regimes, are permits representing the right to emit a certain number of tons of carbon dioxide into the atmosphere.  “Carbon offsets,” which are tied to particular carbon-dioxide emissions reducing projects, represent a reduction in carbon dioxide emissions, and can be purchased by individuals and companies to “offset” their or third parties’ “carbon-footprints.”  The victims were falsely promised that the carbon-related investments they purchased could be easily sold, carried no risk, and would yield a significant, short-term return.  In fact, the carbon credits and offsets that were sold to the victims were fake, and did not represent any actual carbon credits or offsets.

WRIGHT, 48, a citizen of the United Kingdom, is charged with conspiracy to commit mail and wire fraud, substantive mail fraud, and substantive wire fraud, with a penalty enhancement for telemarketing, each of which carries a maximum sentence of 30 years; conspiracy to commit money laundering and two counts of money laundering, each of which carries a maximum sentence of 20 years; and one count of engaging in monetary transactions in property derived from specified unlawful activity, which carries a maximum sentence of 10 years.           

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 outstanding investigative work of IRS Criminal Investigation in this case.

This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises and Complex Frauds and Cybercrime Units. Assistant U.S. Attorneys Jessica Feinstein and Olga I. Zverovich are in charge of the prosecution.

The charges contained in the Indictment 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 indictment, and the description of the indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

BRONX MAN INDICTED FOR FATALLY SHOOTING WOMAN IN CITY ISLAND CONSTRUCTION SITE

 

Shooting Was Captured on Surveillance Video

 Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been indicted on Murder and additional charges for shooting a woman who was working at a construction site on City Island. 

 District Attorney Clark said, “The defendant allegedly shot the victim multiple times during a fit of jealousy. The senseless incident happened in broad daylight in a quiet neighborhood and was captured on surveillance video. We will seek justice for the victim, who was a hard-working mother.” 

 District Attorney Clark said the defendant, Jose Reyes, 66, of 321 East 150th Street, was arraigned today on second-degree Murder, first-degree Manslaughter and two counts of seconddegree Criminal Possession of a Weapon before Bronx Supreme Court Justice John Carter. The defendant was remanded and is due back in court on May 25, 2021.

 According to the investigation, on the afternoon of April 14, 2021, the defendant went to the construction site on 636 City Island Avenue where the victim, Lizbeth Mass, 52, worked. Reyes, who was acquainted with Mass, allegedly became enraged when he saw her boyfriend at the site and realized she was in a relationship. The defendant allegedly left the scene and returned, speeding on a bicycle. The boyfriend of the victim saw Reyes on his bike and was concerned he would do something to Mass. He followed Reyes in his car and when he saw Reyes allegedly shoot Mass three times in the torso with a revolver, the boyfriend ran over the defendant with his vehicle and he, along with other individuals, restrained Reyes until police arrived. The victim was taken to Jacobi Medical Center where she was pronounced dead about an hour after the shooting.

 District Attorney Clark thanked NYPD Detectives Francis Orlando of the Bronx Homicide Squad and NYPD Detective Kristopher Persaud of the 45th Precinct for their assistance in the investigation.

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

MAYOR DE BLASIO, SPEAKER JOHNSON ANNOUNCE INCREASED SUPPORT FOR NONPROFITS AND HUMAN SERVICE PROVIDERS

 

$120 million in added funding over two years brings indirect rate investment to $94 million annually

 Mayor Bill de Blasio and Speaker Johnson today announced increased funding for nonprofits and human service providers for indirect costs. ​This funding will provide financial stability for ​hundreds of nonprofit human service providers as they ​continue to partner with the City on a recovery for all of us.

 

The Indirect Cost Rate (ICR) Funding Initiative​ launched in 2019 and grew out of a partnership between the Mayor, City Council and sector leaders ​through the Nonprofit Resiliency Committee. Today's announcement of $120 million over two years will bring the total investment for indirect cost rates to $94 million annually. This investment fully funds current Accepted Indirect Cost Rates. The City is proud to have partnered with the sector to become a national leader in recognizing the significance of indirect costs in the delivery of human services. This additional funding builds on steps ​and reforms this Administration has taken​ in collaboration with the sector to support resiliency in the human services sector, ​including advance payments on contracts, more timely contract registration, and streamlining business practices.  ​This funding also comes at a time when human service organizations are being called upon to reach more deeply into communities to help New Yorkers in need in light of COVID-19.

 

“Nonprofits serving our most vulnerable residents are critical partners in our recovery,” said Mayor Bill de Blasio. “Indirect cost funding will help keep doors open, support workers and help bring our city back. I thank Speaker Johnson and the City Council for their partnership.”

 

“Nonprofits fill the vacuum to provide critical services for New Yorkers, playing a crucial role in our social safety net that has become even more important as we battle COVID-19. Despite that, they haven't always received the funding they need. The Council has long advocated to pay these non-profits their fair share, including in 2019 when we created the Indirect Cost Rate Funding Initiative with this Administration. We also asked for increased funding in our budget response this year, which is exactly what we are getting. The fact that this is baselined makes this welcome news even better. I thank the de Blasio Administration for being our partner in this effort, and my Council colleagues for always fighting for our nonprofits," said Council Speaker Corey Johnson.

 

“Our City’s mission and commitment to support New Yorkers in need would not be possible without our absolutely vital human services providers and non-profit partners,” said Deputy Mayor for Health and Human Services Melanie Hartzog. “For years, they’ve been on the frontlines, doing the hard work on the ground every day, as part of our shared push for a more progressive, inclusive, and supportive New York – and this past year, they went above and beyond, to do more for our vulnerable neighbors than any of us could have imagined. With this announcement, we’re focused on investing in these vital partners to increase sustainability for the sector, ensuring they can keep providing that helping hand that so many in our city rely on.”

 

The funding is applicable to health and human contracts across all City agencies, including the Department of Education, with limited exceptions, and accommodates providers and all levels of sophistication. It covers a portion of provider costs that are not directly attributed to service delivery, but are necessary for operations like accounting, human resources, rent, general operations, and other eligible costs.

 

The City’s investments to date in the nonprofit sector have totaled over $700 million annually and have supported wage increases for employees, including a minimum wage of $15 per hour and a 9 percent increase in wages, and parity for early childcare workers, funding for indirect rates, rate enhancements for several critical programs such as homeless shelters, Beacon youth centers, and case management for senior centers.

 

These actions build on the Administration’s launch of the Non-Profit Resiliency Committee (NRC) in September 2016, which represented a substantial change in the City’s approach to working with nonprofit service providers, resulting in a fuller and more collaborative partnership.

Governor Cuomo Announces More than 14 Million COVID-19 Vaccine Doses Have Been Administered in New York State

 

30% of New Yorkers Now Fully Vaccinated

184,119 Doses Administered in the Last 24 Hours     

More than 1.2 Million Doses Administered Over Past Seven Days     

Vaccine Dashboard Updated Daily on the State's Vaccine Program; Go to ny.gov/vaccinetracker 

 Governor Andrew M. Cuomo today announced more than 14 million COVID-19 vaccine doses have been administered in New York State, and 30 percent of New Yorkers are now fully vaccinated. 184,119 doses have been administered across the state's vast distribution network in the last 24 hours, and more than 1.2 million doses have been administered over the past seven days.   

"We are hitting new milestones in our vaccination efforts every day thanks to the hard work of our health professionals and volunteers, but we won't win the war against COVID until we reach herd immunity," Governor Cuomo said. "We've expanded vaccine eligibility to every single New Yorker and increased our efforts to improve access for our most vulnerable, underserved populations, but some New Yorkers are still hesitant to get the vaccine. We will continue working with trusted community leaders across the state to spread the word that the vaccine is safe and effective because when we all work together as a community, we will be able to beat COVID once and for all."

New Yorkers can schedule an appointment at a state-run mass vaccination site on the Am I Eligible App or by calling 1-833-NYS-4-VAX. People may also contact their local health department, pharmacy, doctor or hospital to schedule appointments where vaccines are available, or visit vaccinefinder.org to find information on vaccine appointments near you. New York's vast distribution network and large population of eligible individuals still far exceed the supply coming from the federal government. Due to limited supply, New Yorkers are encouraged to remain patient and are advised not to show up at vaccination sites without an appointment.  

STATEWIDE BREAKDOWN

Total doses administered - 14,124,641

Total doses administered over past 24 hours - 184,119

Total doses administered over past 7 days - 1,248,961

Percent of New Yorkers with at least one vaccine dose - 43.4%

Percent of New Yorkers with completed vaccine series - 30.2% 

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.