Saturday, May 29, 2021

Construction Company President Charged With Defrauding The State Department In Multimillion-Dollar Fraud Schemes

 

Sina Moayedi Allegedly Paid Lucrative Bribes to State Department Insider in Exchange for Confidential Bidding Information, and Fraudulently Induced State Department to Pay His Company Approximately $100 Million

 Audrey Strauss, the United States Attorney for the Southern District of New York, and Michael Speckhardt, the Special Agent in Charge of the U.S. Department of State, Office of Inspector General, announced the arrest today of SINA MOAYEDI, the owner of a construction company, on charges including bribery and fraud.  MOAYEDI was arrested in Castleton, Virginia, and will be presented later today in the Western District of Virginia before U.S. Magistrate Judge Joel C. Hoppe. 

Manhattan U.S. Attorney Audrey Strauss said:  “As alleged, Sina Moayedi made misrepresentations about his employees’ qualifications and his company’s ownership in order to induce the State Department into awarding approximately $100 million in lucrative construction contracts to Moayedi’s company, Montage, Inc.  Moayedi also allegedly cultivated a State Department insider, and paid the insider lucrative bribes in exchange for confidential State Department bidding information.  Moayedi must now be held accountable for his alleged brazen fraud on the government.”

Special Agent in Charge Michael Speckhardt said:  “As alleged, the defendant’s scheme to undermine the Department’s procurement process for personal gain caught up with him today and he will now be held accountable.  His alleged actions not only hurt other legitimate businesses competing for awards, but also damage the public’s trust in the effective and efficient utilization of taxpayer money.”

According to allegations in the Complaint[1]:

Montage, Inc. (“Montage”) is a U.S.-based business that is primarily involved in worldwide Government construction projects, including embassies, military posts, consulates, and similar overseas properties owned and operated by the United States Government.  Montage has performed over $220 million in contracting work for the U.S. Government, including for the Department of Defense, the Department of Justice/Federal Bureau of Investigation, the State Department, the Department of the Interior, the Department of Agriculture, the National Aeronautics and Space Administration (“NASA”), the Equal Employment Opportunity Commission (“EEOC”), and the Department of Veterans Affairs.  Since 2014, Montage appears to have focused primarily on competing for and obtaining contracts with the State Department.  During that period, the State Department has awarded Montage approximately six overseas U.S. Embassy/Consulate construction project contracts totaling $100 million, in locales such as Ecuador, Spain, Sudan, the Czech Republic, and Bermuda.  The founder of Montage is SINA MOAYEDI.

Montage engaged in at least two fraud schemes.  The first scheme alleges that, from approximately 2014 to September 2020, MOAYEDI and Montage lied that it was a female-owned business in order to secure unmerited advantages in the bidding process.  By way of context, it is advantageous to a company, when bidding for federal government contracts, to be majority-owned by an individual from a socially or economically disadvantaged community.  In fact, certain contracts (or portions of contracts) are “set aside” for – i.e., only available to – such companies.  MOAYEDI and Montage repeatedly represented falsely in submissions to the State Department that Montage was female-owned, or female-owned and minority-owned, in order falsely to induce the State Department to award Montage lucrative construction contracts.  In actuality, MOAYEDI repeatedly lied about Montage being a female-owned business, and indeed, MOAYEDI controls Montage and makes all material decisions on Montage’s behalf.  As MOAYEDI revealed to a bank that inquired about Montage’s ownership status, “I am the sole owner and president of Montage and have always been.”  Montage and MOAYEDI also repeatedly misrepresented, and significantly overstated, the qualifications of Montage employees.  MOAYEDI made these misrepresentations in order to, among other things, meet State Department and contractual requirements for minimum experience in certain key positions.

The second scheme charged in the Complaint is a bribery scheme during at least 2016 and 2017.  Insider-1 is employed in the State Department’s Overseas Building Operations (“OBO”), which, according to OBO’s website, “directs the worldwide overseas building program for the Department of State and the U.S. Government community serving abroad.”  Specifically, Insider-1 works for the State Department’s OBO Project Development and Coordination Division, European division.  In connection with overseas construction projects, the State Department has a Technical Evaluation Panel (TEP) that considers all aspects of an offeror’s plan to execute the project.  The TEP has the power to disqualify an offeror.  Insider-1 oversaw the TEP for the Hamilton, Bermuda, project – a project that was awarded to Montage.  In at least 2016 and 2017, MOAYEDI paid cash bribes to Insider-1 in exchange for confidential State Department bidding information relating to a particular multimillion-dollar contract in Bermuda, for which Montage was then bidding.  In connection with the bidding process for the Bermuda project, Insider-1 informed MOAYEDI, in sum and substance, that:  His bid was low; Montage could raise its bid by $300,000 and would still be the low bidder; and he should kick back 20 percent, or $60,000, to Insider-1 in return for this information.  Shortly thereafter, Montage increased its bid by nearly $1 million.  In a letter accompanying the revised bid, MOAYEDI falsely represented to the State Department that Montage’s revised bid was attributable to “an arithmetic error in our estimate worksheets.”  MOAYEDI then paid Insider-1 $60,000 in cash, in three separate payments, using two men as intermediaries.

MOAYEDI, 66, of Chevy Chase, Maryland, is charged with one count of wire fraud, and one count of conspiracy to commit wire fraud, each of which carries a maximum potential prison sentence of 20 years, and one count of bribery of a public official, which carries a maximum potential prison sentence of 15 years.  

The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only; any sentencing of the defendant will be determined by the judge.

Ms. Strauss praised the outstanding investigative work of the State Department, Office of Inspector General, Special Agents from the United States Attorney’s Office for the Southern District of New York, and the Internal Revenue Service.  She also thanked Special Agents from the United States Attorney’s Office for the District of Columbia and the Montgomery County, Maryland, Police Department.

 [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.

Attorney General James Continues to Modernize and Streamline Investment Adviser and Securities Filings in New York State

 

New Rules and Guidance Add Transparency and Protection for Industry and Investors

  New York Attorney General Letitia James today announced additional guidance further elaborating on recent rule amendments prepared by the Investor Protection Bureau (IPB) and adopted in 2020. Through these new rules, the Office of the Attorney General (OAG) has increased transparency for the public into the investment adviser representatives and securities issuers operating in New York state. 

“These new rules are propelling this office’s investment registration functions into the 21st century and helping to level the playing field,” said Attorney General James. “By moving to standardized electronic filings and payments, our systems are now providing enhanced transparency to New Yorkers when it comes to their investments. Every one of these improvements will assist my office in its ongoing battle to keep New Yorkers, and their nest eggs, safe.”

The OAG has created a number of resources to assist potential filers, including the following:

Securities Issuers Using the NASAA Electronic Filing Depository (EFD):

Investment Adviser Representatives:

Additional information, including the adopted rules, is available on the IPB’s Rule Change page.

The IPB has also recently begun accepting — on a voluntary basis — online payments for filings currently submitted on paper, in addition to paper checks that will continue to be accepted. The IPB ePayment system link and the user guide can be found on the IPB’s main webpage

Investment adviser representatives should expect delays in processing of applications during the implementation period through December 2, 2021. Interested parties should periodically check the IPB Rule Change page for updated information regarding the new rules.

Governor Cuomo Announces Nearly 65 Percent of New Yorkers Aged 18 and Older Have Taken at Least One COVID-19 Vaccine Dose

 

20% of New Yorkers Ages 12 to 15 Have Received at Least One Dose since Becoming Eligible Earlier This Month

99,770 Doses Administered in the Last 24 Hours

645,333 Doses Administered Over Past Seven Days

Vaccine Dashboard Updated Daily on the State's Vaccine Program Here


Governor Andrew M. Cuomo today announced that nearly 65 percent of New Yorkers aged 18 and older have taken at least one COVID-19 vaccine dose. 20 percent of New Yorkers ages 12 to 15 have received at least one dose since becoming eligible earlier this month. 99,770 doses have been administered across the state's vast distribution network in the last 24 hours, and 645,333 doses have been administered statewide over the past seven days.

"We're working hard to make sure every New Yorker is able to access the COVID-19 vaccine as conveniently as possible so that we can reopen our society and defeat the virus for good. Our state has made huge progress on the numbers in recent months and nearly 65 percent of New Yorkers 18 and older have taken at least one dose, but vaccination is the key to moving into the new normal and we need anyone who has not yet taken the vaccine to do so," Governor Cuomo said. "We continue to offer incentives — including a full scholarship to a SUNY or CUNY college and a $5 million lottery — and establish pop-up sites at locations like state parks and transportation station stops. New York is getting creative to put shots in arms, and we'll continue that effort full steam ahead until we're able to beat back COVID and move into the future."

All New York State mass vaccination sites are now open to eligible New Yorkers for walk-in vaccination on a first come first serve basis. The walk-in appointments are reserved for first doses only with second doses to be scheduled automatically after administration of the initial shot. In addition, all vaccine providers are encouraged to allow walk-in appointments for eligible New Yorkers. People who would prefer to schedule an appointment at a state-run mass vaccination site can do so 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 vaccines.gov to find information on vaccine appointments near them.                                            

STATEWIDE BREAKDOWN

Total doses administered - 18,815,739

Total doses administered over past 24 hours - 99,770

Total doses administered over past 7 days - 645,333

Percent of New Yorkers ages 18 and older with at least one vaccine dose - 64.7%

Percent of New Yorkers ages 18 and older with completed vaccine series - 56.1%

Percent of all New Yorkers with at least one vaccine dose - 53.0%

Percent of all New Yorkers with completed vaccine series - 45.1%

Comptroller Stringer Calls On NYCHA to Create ‘Shared Delivery Center’ Pilot Program to Combat Hunger and Expand Access to Healthy, Affordable Groceries

 

Calls on NYCHA to create pilot program for Shared Grocery Delivery Centers that would allow residents to pool food deliveries from online retailers without paying onerous delivery fees

Program would expand access to healthy and affordable grocery options for NYCHA residents, increase convenience for seniors, those with limited mobility, and those who work long hours, create the opportunity to use SNAP benefits from home, and reduce delivery trucks idling and traffic congestion near NYCHA developments

Builds on Comptroller Stringer’s February 2020 food security plan to combat hunger in New York City, including a $25 million City-based emergency food program to serve undocumented New Yorkers excluded from federal and state safety net programs, expanded SNAP outreach and purchasing power, and increased halal and kosher food options

 New York City Comptroller Scott M. Stringer called on the New York City Housing Authority (NYCHA) to pilot an innovative Shared Grocery Delivery Centers program that would allow residents to accept food deliveries from online retailers at a central location within NYCHA developments without steep minimums and delivery fees. In a letter to NYCHA Chair and CEO Greg Russ, Comptroller Stringer underscored how the nation’s largest public housing agency has an obligation to combat the food insecurity crisis impacting low income communities of color in New York City. Comptroller Stringer’s proposal for Shared Delivery Centers would expand access to healthy and affordable grocery options for NYCHA residents in food deserts, increase convenience for residents who will be able to receive groceries even if they are away, expand SNAP purchasing power, and reduce delivery truck idling and traffic congestion near NYCHA developments.

“The COVID-19 pandemic and economic crisis have left families in NYCHA especially vulnerable to malnutrition and hunger,” said Comptroller Stringer. “Online food retailers can be a lifeline for NYCHA residents facing food insecurity — but the steep minimums and delivery charges are out of reach for so many families trying to ends meet. My proposal for a ‘shared delivery center’ program would allow NYCHA residents to combine their purchasing power so that more of their hard-earned money is spent on food, not fees — and create access to nutritious groceries not available in so many of the city’s food deserts. There is no reason that a single New Yorker should go hungry in our city, and I urge NYCHA to swiftly get to work to implement this program and help tenants put healthy food on the table.”

Comptroller Stringer’s letter recommended the following steps NYCHA could take to implement this pilot program:

  • Identify a NYCHA development with appropriate community space that already has cold storage or has the capacity to accommodate a large fridge and freezer. This space will serve as the “Shared Grocery Delivery Center” and supports NYCHA’s aim of maximizing uses in ground floor community space which may have vacancy rates in excess of 20 percent.
  • Establish a partnership with a retailer or retailers that will waive delivery fees and minimum order requirements for residents of the development in exchange for use of a single grocery drop-off location and the possibility of an expanded customer base. Online retailers that accept SNAP should be prioritized when selecting a partner.
  • Allocate staff or volunteer resources to accept groceries in the community space on behalf of residents and ensure their security until they are picked up.
  • Promote the program within the development so residents are aware of the opportunity.

Joel Berg, CEO of Hunger Free America said: “We have long championed the idea of food delivery hubs at public housing developments. Such hubs would be a win-win, making it easier and cheaper for companies to deliver food and making it more convenient for community members — most of whom are working — to pick it up at a time that works best for them. The end goal is to make healthier food cheaper and more convenient for struggling New Yorkers. We hope that NYCHA adopts this recommendation quickly.”

Patricia Burns, Lehman Houses Tenant Association President said: “For too long we’ve seen our residents struggle with getting affordable, nutritious groceries for their families, and that was before the COVID-19 pandemic hit. Comptroller Stringer’s plan to create shared delivery centers is an innovative and cost-effective solution that we urge NYCHA to start implementing today.”

Tyrone Ball, President of St. Nicholas Houses Tenant Association said: “NYCHA residents and working families shouldn’t have to waste their hard-earned dollars on excessive grocery delivery fees. Comptroller Stringer’s proposal to establish shared delivery sites in NYCHA housing would allow residents to take advantage of all the convenience that online grocery delivery has to offer at a much more affordable price while expanding SNAP benefits and reducing truck idling and traffic around NYCHA developments.”

Leona Shoemaker, President of King Towers Tenant Association said: “As our city begins to recover from COVID-19, NYCHA residents and lower-income communities of color who were hit hardest by the pandemic are still grappling with economic hardship and food insecurity. This proposal is an example of how we can make an equitable recovery and a smart solution for making sure all New Yorkers have access to necessities like healthy and affordable groceries. Thank you to Comptroller Stringer for speaking up on behalf of NYCHA residents and lifting up underserved communities.”

Luis Torres, President of Clinton Houses Tenant Association said: “Hardworking families and homebound senior citizens in NYCHA housing have much to gain from Comptroller Stringer’s proposal, including increased affordability and options for healthy food, expanded SNAP access, and the ability to receive deliveries while working long hours. We proudly stand with Comptroller Stringer in calling on NYCHA to start creating shared delivery centers immediately and help our residents put high-quality meals on the table.”

In February 2020, Comptroller Stringer released a comprehensive food security plan to combat hunger in New York City and reach any New Yorker in need regardless of immigration status. Comptroller Stringer called for the City to create a $25 million emergency food program to serve undocumented New Yorkers left out of federal and state safety net programs, expand SNAP outreach and purchasing power, and increase cultural competence, including expanded kosher and halal options, in the City’s current food programming to ensure that New Yorkers of all backgrounds are able to access benefits. In April 2020, Comptroller 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 plan to expand access to free, halal meals and conduct SNAP outreach in multiple languages for New Yorkers during Ramadan.

THE MAYOR’S FUND TO ADVANCE NEW YORK CITY AND NYC SERVICE ANNOUNCE 2021 LOVE YOUR BLOCK GRANT RECIPIENTS

 

13 resident-led groups across New York City have been awarded the “Love Your Block” grant of $1,000 to revitalize a public space in their neighborhood

 The Mayor’s Fund to Advance New York City and NYC Service have launched the 2021 Love Your Block initiative, awarding 13 resident-led groups from across the city with a $1,000 grant to help beautify their block and engage neighborhood volunteers to bring about local change.

In its 12th year, the Love Your Block initiative continues to champion civic engagement by empowering communities to take pride and ownership of their communities. For over a decade, this initiative has awarded 390 grantees, engaged more than 10,500 volunteers and has leveraged a total of $390,000 dollars to revitalize 20 miles of public space in all five boroughs to date. All Love Your Block grantees receive the support of community volunteers and services from City agency partners including: New York City Department of Environmental Protection, New York City Department of Parks and Recreation, The City of New York Department of Sanitation, and New York City Department of Transportation. 

“The City is proud to invest in 13 resident-led community groups through the Love Your Block initiative,” said Mayor Bill de Blasio. “Our community leaders are the resident experts of their neighborhoods, and I look forward to celebrating how they bring forth their unique visions of beautifying public, shared spaces for the benefit of their neighbors and our city.”

 

“Over the last 12 years, Love Your Block continues to be a connector between resident-led groups and our City – supporting people power to address the needs they see street by street, block by block,” said Acting NYC Chief Service Officer Laura Rog. “Resident engagement is critical to our neighborhoods, uniting and empowering residents to make communities and our City thrive.”


“When city residents feel empowered to improve their own neighborhoods and take pride in where they live, it not only benefits the entire community, it improves quality of life for all New Yorkers,” said Daniele Baierlein and Jorge Luis Paniagua Valle, Co-Executive Directors of the Mayor’s Fund to Advance New York City. “By investing in our city and our neighbors, New Yorkers will, in turn, invest in a brighter and more prosperous future for generations to come, one block at a time.” 

The Love Your Block initiative will help build on New York City’s recovery process by delivering tangible results to communities who need it most. This grant funding will go towards educating New York City residents on the tools and City agency services available to them, that when taken advantage of, can increase quality of life through improved public and community spaces. In an effort to combat the crippling effects of the COVID-19 global pandemic, the Mayor’s Fund to Advance New York City and NYC Service sought to reach more residents and covering more miles in hardest-hit COVID-19 neighborhoods. 

The 2021 Love Your Block grantees include: 

Brooklyn

  • Str8OuttaBklyn, Ocean Hill
  • Southside Homeowners Association, South Williamsburg
  • Flatbush Cleanup, Flatbush
  • Crown Street Block Association, Crown Heights
  • Lincoln Road R & B Block Association, Prospect Lefferts Gardens
  • 300 Halsey Street Block Association, Bedford-Stuyvesant
  • 400 Bainbridge Street Block Association, Bedford Stuyvesant

 

Queens

  • Proud Astorian, Astoria
  • Seagirt Avenue & Friends Block Association, Far Rockaway
  • Maspeth Making a Difference, Maspeth
  • Gateway Bike & Boathouse, Rockaway

Bronx

  • The Neighborhood Advisory Community Garden, Melrose 

Manhattan

  • Central Park North Block Association, Harlem

 “The Love Your Block grant is one of many ways New York City supports residents who want to help keep their neighborhoods clean, and DSNY is pleased to supply the awardees with the tools they need. We join the Mayor’s Fund and NYC Service in congratulating all of the recipients,” said New York Sanitation Department Commissioner Edward Grayson.

 

“One major lesson of the last difficult year of COVID is how precious we have all found our shared outdoor open spaces, including the streets themselves,” said DOT Commissioner Hank Gutman. “The Love Your Block initiative predates Open Streets and all the other programs we have created to safely address the pandemic – but it has the same wonderful spirit.  Love Your Block recognizes that we New Yorkers are at our best when we can be outdoors -- sharing experiences with family, friends and neighbors. We heartily congratulate all this year’s grantees for their dedication and commitment to a more unified and beautiful.”

 

“As the steward of more than 30,000 acres of public land, NYC Parks relies greatly on the contributions of volunteers – especially throughout the pandemic,” said NYC Parks Commissioner Mitchell J. Silver, FAICP. “The Love Your Block initiative inspires New Yorkers to lend a helping hand to care for their neighborhood’s shared spaces, making them beautiful and welcoming to all. Special thanks to the Mayor's Fund and NYC Service for their continued partnership and for providing residents with valuable resources that keep our city green.”

 

“As all New Yorkers endeavor to become better stewards of our shared environment it is encouraging to see so many groups across the five boroughs taking action to improve their communities and the health of our planet,” said DEP Commissioner Vincent Sapienza.

 

Governor Cuomo Announces New York State's Lowest Daily Positivity Rate Since COVID-19 Crisis Began

 

Statewide Positivity Rate is 0.59% - Previous Record-Low Was 0.65% on August 27, 2020

7-Day Average Positivity of All 10 Regions of New York State Falls Below 2.0% for First Time Since October 28, 2020

7-Day Statewide Positivity Rate is 0.76% - Lowest Since August 29, 2020, Declined 53 Consecutive Days

1,169 Patient Hospitalizations Statewide - Lowest Since November 1, 2020

 Governor Andrew M. Cuomo today updated New Yorkers on the state's progress during the ongoing COVID-19 pandemic.

The Finger Lakes' 7-day average positivity fell to 1.87% yesterday, bringing the individual 7-day average positivity of all 10 regions across the state below 2.0% for the first time since October 28, 2020.

"As we head into summer, it is incredible to reflect on where we were with COVID a year ago," Governor Cuomo said. "Thanks to the hard work of New Yorkers, we are getting closer to a reimagined normal every day. This is our opportunity to build back safer and stronger than ever before with a new perspective. As we inch toward the end of the tunnel, I want to encourage the people of our state to utilize the greatest tool we have in defeating the virus - the vaccine. It's free, accessible, and effective."

Today's data is summarized briefly below: 

  • Test Results Reported - 159,504
  • Total Positive - 937
  • Percent Positive - 0.59%
  • 7-Day Average Percent Positive - 0.76%
  • Patient Hospitalization - 1,169 (-54)
  • Net Change Patient Hospitalization Past Week - -275
  • Patients Newly Admitted - 151
  • Number ICU - 304 (+4)
  • Number ICU with Intubation - 178 (+1)
  • Total Discharges - 181,867 (+186)
  • Deaths - 11
  • Total Deaths - 42,665

Friday, May 28, 2021

219 Days and Counting

 


Well Charlene we're off to a four day weekend. See you Tuesday, if the city is still here.


Permits Filed For 2069 Bruckner Boulevard In Unionport, The Bronx

 

2069 Bruckner Boulevard in Unionport, The Bronx via Google Maps

Permits have been filed for a nine-story mixed-use building at 2069 Bruckner Boulevard in Unionport, The Bronx. Located between Pugsley Avenue and Olmstead Avenue, the interior lot is near the Parkchester subway station, serviced by the 6 train. Guido Subotovsky under the Bruckner Affordable Owner LLC is listed as the owner behind the applications.

The proposed 95-foot-tall development will yield 280,731 square feet, with 262,718 square feet designated for residential space and 18,013 square feet for commercial space. The building will have 265 residences, most likely condos based on the average unit scope of 991 square feet. The concrete-based structure will also have a 42-foot-long rear yard and 159 enclosed parking spaces.

Aufgang Architects is listed as the architect of record.

Demolition permits were filed in June 2019 for the one-story structure on the site. An estimated completion date has not been announced.