Monday, April 26, 2021

Co-Founder Of Hedge Fund Charged With $40 Million Securities Fraud Scheme

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the arrest yesterday afternoon of ANDREW FRANZONE, the founder and former general partner of FF Fund I L.P. on charges of securities fraud and wire fraud for his role in a scheme to fraudulently induce more than 100 investors to invest approximately $40 million in his fund by, among other things, lying about the fund’s investment strategy, liquidity, and amount of assets under management.  FRANZONE was arrested yesterday afternoon in Fort Lauderdale, Florida, on a criminal complaint (the “Complaint”) and will be presented before a magistrate judge in the Southern District of Florida.

Manhattan U.S. Attorney Audrey Strauss said:  “Andrew Franzone allegedly promised his clients access to his successful liquid trading strategy and consistent, positive trading returns.  As alleged, those promises were lies.  Franzone lied about his fund’s investments and performance, and he lied in promising clients that they had could readily access their invested capital.  While his investors lost money, Franzone enriched himself.  We will continue to work with our law enforcement partners to protect investors from these types of deceptive practices.”

USPIS Inspector-in-Charge Philip R. Bartlett said:  “Mr. Franzone allegedly misled investors to believe his fund was liquid and he could cover their redemption requests, in a scheme to lure them in to investing in his hedge fund. This should be a reminder that greed has no boundaries and does not care about a favorable portfolio. Postal Inspectors remind all investors to thoroughly check offers, and if they sound too good to be true, keep your money in the bank.”

As alleged in the Complaint unsealed today in Manhattan federal Court[1]:

FRANZONE co-founded Farrell Franzone Investments LLC in 2010.  FRANZONE described Farrell Franzone as an opportunity for investors to invest, through the purchase of limited partnership (“LP”) interests, in a hedge fund purporting to trade preferred securities and options and to maintain a highly liquid portfolio for its investors.  FRANZONE renamed the fund FF Fund I (“FF Fund”) in 2014, and served as its general partner from that time until approximately September 2019. 

In connection with marketing the FF Fund to investors, FRANZONE touted FF Fund as a “multi-strategy investment program … focus[ed] on three unique asset classes: the preferred stock market, the option market, and the private investment portfolio.”  When discussing FF Fund, FRANZONE assured investors that FF Fund was focused on trading in the preferred securities and options markets, which afforded its investors access to quarterly liquidity, and that FF Fund had a track record of consistent positive trading returns since its inception in August 2010. 

FRANZONE’s representations about FF Fund’s strategy, liquidity, and performance were largely fabricated.  Instead of engaging primarily in preferred securities and options trading that ensured the FF Fund’s liquidity, FRANZONE instead diverted more than 80% of FF Fund’s capital to high-risk, illiquid private investments, many of which were either worthless or significantly impaired.  FRANZONE also misappropriated FF Fund’s assets to fund his own personal business interests, including the purchase of an airplane hangar, and lied to investors about FF Fund’s performance and assets under management.

Through these and other fraudulent misrepresentations and omissions, FRANZONE induced over 100 investors to invest more than $40 million in FF Fund.  Despite showing investors positive trading returns as late as 2019, FF Fund was unable to fulfill redemption requests in early 2019 and is currently in the process of being liquidated.

FRANZONE, 44, of Fort Lauderdale, Florida, is charged with one count of securities fraud, which carries a maximum potential sentence of 20 years in prison, and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison.  The maximum potential penalties 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 USPIS and thanked the U.S. Securities and Exchange Commission, which has separately filed a civil action against FRANZONE and FF Fund Management.

The allegations contained in the Complaint 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 Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.

Councilman Mark Gjonaj's NYC Moving Forward Week in Review - 4/23/2021

 

Dear Friends,

I hope you and your families are doing well as we are moving forward to warmer weather, businesses and schools reopening in person operations - hand in hand with getting the Covid-19 vaccine, getting tested, social distancing and wearing a mask.

This week we were proud to celebrate Earth Day in a series of events, park cleanups, graffiti removals, reusable bag giveaways, as well as voting on important legislation to reduce and re-use food waste.

In an effort to keep our neighborhoods and commercial corridors cleaner, businesses in City Island, who signed up for our Adopt a Trash Can program, received the Trash Cans. We are looking forward to a successful program as we roll it in other neighborhoods.

Team Gjonaj was proud to join forces with the NYPD 45th Precinct Domestic Violence Unit as we hosted an event in honor of Sexual Assault Awareness Month, to further raise awareness about sexual assault and violence.

April is National Pet Month and we were glad to do a Pet Food Giveaway in City Island, in partnership with Animal Care Center of NYC and meet many of the lovely City Island furry friends and their owners.

Legislatively as part of the NYC Council Committee on Cultural Affairs, we held an oversight hearing to investigate ways to increase diversity in the arts and in our city’s cultural institutions - including, resolving the ethnic pay gap within cultural organizations and uplifting up nonprofits that are dedicated to supporting minorities in the arts.

We are proud of serving you and being with you throughout this pandemic. We are continuing to give out food boxes, offer Rapid Testing and many more services throughout our community. Please do not hesitate to contact my office with any issues or concerns at 718-931-1721 or email at MGjonaj@council.nyc.gov.

Sincerely,

NYC Councilman Mark Gjonaj
District 13, Bronx



This week, Councilman Mark Gjonaj received his second dose of the COVID-19 vaccine at Jacobi Hospital. Vaccination is important because it not only protects the person who gets the vaccine, but also helps to keep diseases from spreading to others, like family members, neighbors and the community. #StopTheSpreadOfCOVID19

Sunday, April 25, 2021

Governor Cuomo Updates New Yorkers on State Vaccination Program

 

139,416 Doses Administered in the Last 24 Hours  

More than 1.1 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 updated New Yorkers on the state's vaccination program. 139,416 doses have been administered across the state's vast distribution network in the last 24 hours, and more than 1.1 million doses have been administered over the past seven days. The week 19 allocation of 1,245,960 first and second doses is expected to finish arriving today.  

"Our providers are working around the clock to get more shots into arms, and the best way we can support them is by getting vaccinated and continuing to practice the safe behaviors we know will help defeat COVID once and for all,"Governor Cuomo said. "The momentum is on our side and to keep our progress moving in the right direction, we have not only continued to expand access to the vaccine, but we are working hard every day to fight hesitancy as well. We will win the war against this virus, but we can only do it if we work together as one New York community."

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.     

STATEWIDE BREAKDOWN

Total doses administered - 14,435,026
Total doses administered over past 24 hours - 139,416
Total doses administered over past 7 days - 1,137,695
Percent of New Yorkers with at least one vaccine dose - 44.1%
Percent of New Yorkers with completed vaccine series - 31.1%  

CITY TO IMMEDIATELY RESUME USE OF SAFE AND EFFECTIVE JOHNSON & JOHNSON VACCINE AFTER FEDERAL GOVERNMENT LIFTS PAUSE

 

 Following a decision by the U.S. Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) to lift the pause on administration of the Johnson & Johnson/Janssen (Johnson and Johnson) vaccine, Mayor de Blasio announced that the City will immediately resume use of the vaccine. 

“The one-shot Johnson & Johnson vaccine is back and New York City will immediately resume our innovative mobile, pop-up, and homebound vaccination programs with this shot,” said Mayor Bill de Blasio. “I received the Johnson & Johnson vaccine along with our Health Commissioner Dr. Chokshi. We know firsthand that the vaccine is safe and effective, and now it’s easier than ever to get your shot. I encourage all New Yorkers to join the millions of your friends, family and neighbors who’ve been vaccinated. You can lead our city’s comeback.”

 

“The joint CDC and FDA recommendation to resume the use of the Johnson & Johnson vaccine with an updated warning shows that our safety system works,” said Health Commissioner Dr. Dave Chokshi. “I received the Johnson & Johnson vaccine, and I trust it is safe and effective. If I had the chance to decide again, knowing what I know now, I would still choose to receive the Johnson & Johnson vaccine.”

 

With the pause on use of the vaccine lifted, City-run operations such as in-home vaccination for homebound New Yorkers, mobile buses and vans, pop-up sites at houses of worship and other locations will resume use of Johnson & Johnson. Some providers will first exhaust their allocation of Pfizer or Moderna vaccines, which were used while the Johnson & Johnson evaluation was underway. The NYC Department of Health and Mental Hygiene will continue its extensive outreach to providers and clinicians to ensure they are aware of the new federal guidance. 

 

New Yorkers can make a vaccine appointment at vaccinefinder.nyc.gov, call 877-VAX-4-NYC or walk in at any City-run site and get vaccinated. 

 

 

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Statement from Congressman Jamaal Bowman, State Senator Alessandra Biaggi, State Assemblymember Jeffrey Dinowitz, and Councilmember Eric Dinowitz Regarding Attacks against Synagogues in the Bronx

 

  In response to anti-Semetic vandalism and assault in the Riverdale section of the Northwest Bronx, Rep. Jamaal Bowman, State Sen. Alessandra Biaggi, State Assembly member Jeffrey Dinowitz, and Councilmember Eric Dinowitz issued the following statement Sunday:  

“Over the weekend we received the horrific news of a string of hate crimes and vandalism at four local synagogues and places of worship in Riverdale. Our teams have been in close communication with community leaders and the NYPD in order to work towards the physical and psychological safety of the community. We are proud to represent Riverdale — a neighborhood that is inclusive, accepting, and loving. The rise in hate crimes towards Jewish people is alarming and deeply painful to see. Hate has no place here.

 

“We condemn in the strongest possible terms the hate crimes and vandalism that are occurring in Riverdale. No one should be attacked or living in fear because of their race, religion, ethnicity, or sexual orientation. The threat towards synagogues and other Jewish institutions is real and we must treat these issues head on. Jewish people have been the victims of hate crimes and persecution for centuries, and this week’s events are a somber reminder that we must all be vigilant in weeding out antisemitism. Our hearts go out to everyone in our district who has been impacted by these hate crimes.

 

“Our offices are closely monitoring this situation. We thank Captain Emilio Melendez, all the NYPD investigators, the NYS Hate Crime Task Force, our colleagues in government and all the rabbis and community leaders who are involved in ensuring that justice is served. This is a true demonstration of unity and is an example of the resilience of Riverdale. We urge that anyone with relevant information reach out to the 50th precinct. If you see a crime being committed, call 911 immediately. We will continue to unite as a community to make sure it is loud and clear that hate has no place here.”


Governor Cuomo Updates New Yorkers on State's Progress During COVID-19 Pandemic April 25, 2021

 

Statewide 7-Day Average Positivity Rate Drops to 2.19%—Lowest Since November 8

Hospitalizations Drop to 3,198—Lowest Since November 28

ICU Patients Drop to 742—Lowest Since December 1

Intubations Drop to 460—Lowest Since December 4

Statewide Positivity Rate is 1.88%

50 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.

"New Yorkers are staying safe, getting vaccinated and following the public health guidance, and we're seeing a decrease in the numbers as a result of their efforts," Governor Cuomo said. "We're getting closer to the light at the end of the tunnel, but it's important that we don't lose any of our hard-earned progress. Washing hands, wearing masks and social distancing are important tools we can use to combat the virus as we work toward getting every New Yorker vaccinated. This has been a long battle, but I know as long as we stay united, we can get through it and defeat COVID once and for all."

Today's data is summarized briefly below: 

  • Test Results Reported - 217,972
  • Total Positive - 4,087
  • Percent Positive - 1.88%
  • 7-Day Average Percent Positive - 2.19%
  • Patient Hospitalization - 3,198 (-96)
  • Net Change Patient Hospitalization Past Week - -556
  • Patients Newly Admitted - 411
  • Hospital Counties - 52
  • Number ICU - 742 (-25)
  • Number ICU with Intubation - 460 (-22)
  • Total Discharges - 173,775 (+464)
  • Deaths - 50
  • Total Deaths - 41,808

McDonalds at 1600 Bruckner Boulevard Grand Re-opening


Friday morning Friends and elected officials came together to celebrate the Grand Re-Opening of the McDonalds Restaurant located at 1600 Bruckner Boulevard in the Food Bazzaar Shopping Center. Mr. Tony Rodriguez is the owner of thirteen McDonalds in Manhattan and the Bronx with 1600 Bruckner Boulevard as one of his first McDonalds. 

On hand to help Mr. Rodriguez celebrate his success were City Council members Ruben Diaz Sr. (in whose council district the McDonalds is located), and Mark Gjonaj (the Chair of the Small Business Committee in the City Council). Assemblyman Kenny Burgos rounded out the current elected officials, but also on hand was Community Board 9 District Manager and City Council candidate William Rivera  (now being considered a favorite in the race to replace Councilman Diaz Sr. in the City Council). 

Also on hand were BOEDC President Marlene Cintron, Bronx Chamber of Commerce Executive Director Lisa Sorin, 43rd Precinct commanding officer Deputy Inspector Keiyon Ramsey, and many local community leaders. 

Mr. Tony Rodriguez started as a worker in a Brooklyn McDonalds in 1973. after several years as an NYPD officer he returned to McDonalds as an owner and operator today of 13 McDonalds in Manhattan and the Bronx. 


Councilman Ruben Diaz Sr. said the one thing he loves most about Tony Rodriguez's McDonalds is the delicious French Fries, to which Tony replied, 'Get him an extra large order of fries'.


Councilman Mark Gjonaj thanked Tony Rodriguez for the huge amount of meat that Tony gave to be given out to people in need during the current pandemic with a citation from the City Council.


The newly renovated McDonalds at 1600 Bruckner Boulevard features new automated order locations.


The Newly redesigned front counter to take orders, and distribute the food to customers.