Attorney General James and Acting Tax Commissioner Hiller Pump Brakes on Brooklyn Gas Station That Pocketed Almost $250,000 in Sales Tax

 

 New York Attorney General Letitia James and Acting New York Commissioner of Taxation and Finance Amanda Hiller today announced the conviction of Brooklyn-based gas station Verrazano Enterprises, Inc. for Grand Larceny, stemming from the theft of over $244,000 in sales tax in connection with the sale of motor fuel. Gas station owner Muhammad Adrees also pleaded guilty to Criminal Solicitation. As part of their pleas, Verrazano and Adrees collectively paid over $189,000 in restitution and executed a confession of judgment for the entire amount that was stolen from New York state. 

“While this gas station may have stolen from New York state to fill up its own bank accounts, our prosecution pumped the brakes on Verrazano’s illegal operation,” said Attorney General James. “Any company that attempts to defraud New York state will find there’s no getaway car waiting, because our office will not hesitate to use every tool at our disposal to stop these bad actors dead in their tracks. I want to thank Acting Commissioner Hiller for her partnership and her department’s important work in protecting New York taxpayers.”

“The gas station blatantly disregarded an obligation to report millions in taxable sales and to pay sales tax owed — violating the trust of customers, depriving Brooklyn of revenue for vital services, and gaining an unfair advantage over similar businesses,” said Acting Commissioner Hiller. “We'll continue to work with all levels of law enforcement, including the Attorney General's Office, to root out this type of illegal behavior.”

A joint investigation by the Office of the Attorney General’s (OAG) Criminal Enforcement and Financial Crimes Bureau and the Department of Taxation and Finance’s (DTF) Criminal Investigations Division revealed that Verrazano systematically underreported taxable motor fuel sales and, additionally, failed to remit collected sales tax from December 2009 up to and through November 2015. A DTF audit of sales tax returns for the relevant time period revealed that Verrazano underreported its taxable sales by $10,552,877. As a result, after crediting sales tax of $531,913.28 that was pre-paid to DTF by the wholesale supplier, Verrazano failed to remit $244,581.85 in sales tax due to New York state.

This morning, before the Honorable Abena Darkeh in Kings County State Supreme Court, Verrazano tendered a plea of guilty to one count of Grand Larceny in the Second Degree, a Class C Felony. Also, this morning, before the Honorable Abena Darkeh in Kings County State Criminal Court, Adrees tendered a plea of guilty to one count of Criminal Solicitation in the Fifth Degree. Both Verrazano and Adrees jointly paid over $189,000 in restitution to DTF, executed a confession of judgment for the benefit of DTF for the entire amount that was stolen, and were sentenced to a conditional discharge. 

The OAG wishes to thank DTF’s’ Criminal Investigations Division for their valuable assistance in this investigation.

The investigation by the OAG was conducted by Detective Investigator Brian Metz, under the supervision of Supervising Detective Michael Leahy and Deputy Chief Antoine Karam. The Investigations Bureau is led by Chief Oliver Pu-Folkes. 

Governor Cuomo Announces New Record-Lows for Single-Day and 7-Day Average COVID-19 Positivity Rate

 

Statewide Positivity Rate is 0.44%

7-Day Average is 0.60% - Declined 59 Consecutive Days

Hospitalizations Fall Below 1,000 for First Time Since October 21

77,131 Vaccine Doses Administered Over Last 24 Hours

10 COVID-19 Deaths Statewide Yesterday  

 Governor Andrew M. Cuomo today announced that the statewide single-day COVID-19 positivity rate dropped to 0.44 percent yesterday, and the seven-day average dropped to 0.60 percent - both record lows. Additionally, hospitalizations statewide fell below 1,000 for the first time since October 21.   

"COVID rates across the state have never been lower and hospitalizations are under 1,000 for the first time in 8 months, all while businesses are reopening and people are coming back together again," Governor Cuomo said. "Our state is back, and that's a testament to the New Yorkers who have stayed tough and smart over the last year - but most of all, it's a testament to the more than 19 million vaccinations we've put in arms. The vaccines are safe, free, and effective, period, and the sooner we get each and every eligible New Yorker vaccinated, the sooner we can finish off this pandemic once and for all."

 
Today's data is summarized briefly below:  

 

·     Test Results Reported - 128,002

·     Total Positive - 565

·     Percent Positive - 0.44%

·     7-Day Average Percent Positive - 0.60% 

·     Patient Hospitalization - 970 (-37)

·     Patients Newly Admitted - 112

·     Patients in ICU - 245 (-7)

·     Patients in ICU with Intubation - 143 (+7)

·     Total Discharges - 182,602 (+130)

·     Deaths - 10

·     Total Deaths - 42,745

Total vaccine doses administered - 19,226,670

Total vaccine doses administered over past 24 hours - 77,131

Total vaccine doses administered over past 7 days - 510,701

Percent of New Yorkers ages 18 and older with at least       one vaccine dose - 65.7%

Percent of New Yorkers ages 18 and older with completed vaccine series - 57.6%

Percent of all New Yorkers with at least one vaccine dose - 54.0%

Percent of all New Yorkers with completed vaccine series - 46.3%   

Mayor de Blasio Appoints Victor Olds as Chief Procurement Officer and Director of the Mayor's Office of Contract Services

 

 Mayor Bill de Blasio today appointed Victor O. Olds as Chief Procurement Officer and Director of the Mayor’s Office of Contract Services (MOCS). Olds, who has served as General Counsel at MOCS since 2016 and spearheaded the M/WBE program at the agency, is succeeding outgoing Chief Procurement Officer and Director Daniel Symon.

“Victor is a true New Yorker dedicated to serving the people of New York City,” said Mayor Bill de Blasio. “From getting PPE for our heathcare heroes during the height of the pandemic to bringing more City business to MWBEs, Victor has made our city a fairer and safer place. I thank Dan Symon for his incredible service to New York City and continued success.”

“It is truly an honor to be appointed the City Chief Procurement Officer and Director of the Mayor’s Office of Contract Services,” said Victor Olds, incoming Chief Procurement Officer and Director of the Mayor’s Office of Contract Services. “I believe deeply in the work we are doing to support our City agencies in providing the goods and services the people of this City need. I will continue the work of making business with the City more equitable, efficient and

accessible for all New Yorkers.”

“It has been my honor to work side by side with Vic.  More than anything else, he is a world class person.  Yes, he is perfect for this job, but more importantly the right leader for MOCS to continue the work we built together,” said Daniel Symon, outgoing Chief Procurement Officer and Director of the Mayor’s Office of Contract Services.

Victor Olds brings experience and a passion for equity and innovation to citywide procurement.

At MOCS, Olds spearheaded multiple new initiatives to bring efficiency and increase equity, including developing and implementing PASSPort, a citywide overhaul of the procurement process and increasing the Minority and Women-Owned Business Enterprise contract utilization to over $1 billion annually. During the COVID-19 pandemic, Olds established a personal protective equipment global supply chain for New York City. As General Counsel at MOCS, Olds also advised Chief Procurement Officer, senior Administration officials and Mayoral Agencies on $20 billion City procurement spending. 

Olds began his career as a Litigation Associate at an international law firm, where he litigated arbitration disputes and commercial contract agreements. He also served as Director of Young Adult Ministry at The Brooklyn Tabernacle, a multicultural, non-denominational church in Brooklyn.

Olds is a graduate of Cornell University and earned his JD from the Fordham University School of Law. He is a native New Yorker and lives in Brooklyn with his wife and two daughters.

“Victor is a world class public servant and perfect fit to lead MOCS as our city continues to recover from COVID,” said Deputy Mayor for Operations Laura Anglin. “His commitment to equity is unparalleled, and I’m thrilled he will be taking on this new role.”

Four Arrested in Sixteen-Defendant Oath Keeper Conspiracy Case for Activities Leading to U.S. Capitol Breach

 

Fourth Superseding Indictment Identifies Additional Conspirators, Alleges Obstruction and Assault on Law Enforcement

  Three Florida men and one Alabama man were arrested for crimes related to the breach of the U.S. Capitol on Jan. 6, which disrupted a joint session of the U.S. Congress in the process of ascertaining and counting the electoral votes related to the presidential election.

Joseph Hackett, 50, of Sarasota, Florida; Jason Dolan, 44, of Wellington, Florida; William Isaacs, 21, of Kissimmee, Florida; and Jonathan Walden, 46, of Birmingham, Alabama, are charged with federal offenses that include conspiracy, among other charges, related to the Jan. 6 Capitol breach. Dolan was arrested on Thursday, May 27, and Isaacs self-surrendered the same day. Hackett was arrested on Friday, May 28. Walden was arrested today, June 3. Hackett, Dolan, Isaacs and Walden are the latest four of 16 defendants to be arrested in this case.

As alleged in the indictment, the defendants agreed to plan and participate in an operation to interfere with the certification of the electoral college vote by coordinating in advance with others, using websites and social media to recruit participants, and traveling to Washington, D.C., with paramilitary gear and supplies including firearms, tactical vests with plates, helmets and radio equipment. As early as Jan. 3, Hackett, Dolan and Isaacs joined an invitation-only encrypted Signal group message titled, “OK FL DC OP Jan 6”.

Sometime before Jan. 5, Walden sent a message to co-defendant Joshua James expressing his interest in joining the quick reaction force team. His message to James reads, “I am interested in the QRF team in D.C. I am a former Firefighter, EMT-B and have a K-9 trained for security patrol (82 ib. German Shepherd named “Warrior”) I have a Jump Bag with Trauma supplies and have ALL the necessary 2A gear that the situation may require. PLEASE ADVISE. As soon as I hear from you I can hit the road and join up! Jonathan Walden,” followed by a phone number.

On the afternoon of Jan. 6, Walden and others rode in a pair of golf carts toward the Capitol, at times swerving around law enforcement vehicles. After they arrived at 2:33 p.m., Walden and others aggressively berated and taunted law enforcement officers in riot gear guarding the perimeter of the building. At 2:35 p.m., Hackett and Isaacs joined together with others known and unknown to form a column or “stack” of individuals wearing Oath Keepers clothing, patches, insignia and battle gear, each keeping at least one hand on the shoulder of the other in front of them. Dolan joined the stack at the top of the steps and the group collectively and forcibly entered the Capitol.

Hackett, Dolan, Isaacs and Walden are each charged with conspiracy, obstruction of an official proceeding and aiding and abetting, and entering and remaining on restricted grounds. Hackett, Dolan and Isaacs are also charged with destruction of government property and aiding and abetting. Isaacs is also charged with civil disorder and aiding and abetting as well as assaulting, resisting or impeding certain officers.

The superseding indictment adds charges for previously arrested defendants, including Joshua James, charged with one count of obstruction of justice and assaulting and interfering with law enforcement in addition to conspiracy, civil disorder and other allegations. As alleged, James deleted evidence of offenses from his cell phone and assaulted Metropolitan Police Department (MPD) officers who blocked his path into the Capitol Rotunda.

Kelly Meggs and Kenneth Harrelson are additionally charged with one count of obstruction of justice for deleting evidence of these offenses from their cell phones.

Donovan Crowl, Jessica Watkins, Sandra Parker, Graydon Young and William Isaacs are jointly charged with one count of interfering with law enforcement during a civil disorder and aiding and abetting for helping to push a crowd into MPD riot police officers who had formed a line blocking the hallway that leads from the rotunda north towards the Senate chamber.

The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Offices for the Middle District of Florida, Southern District of Florida and Middle District of Alabama.

The case is being investigated by the FBI’s Washington Field Office, as well as the Metropolitan Police Department, with significant assistance provided by the FBI’s Tampa, Miami and Birmingham Field Offices. 

In the first 120 days after Jan. 6, approximately 440 individuals were arrested on charges related to the Jan. 6 Capitol breach, including over 125 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.  

Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

The charges contained in any criminal complaint or indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BXDA- National Gun Violence Awareness Day March & Resource Fair

 

The Henry Tops Out At 2395 Palisade Avenue In Spuyten Duyvil, The Bronx (Riverdale)

 

Construction is now topped out on The Henry, a new rental property at 2395 Palisade Avenue in Spuyten Duyvil, The Bronx. The building will eventually comprise 55 apartments, a sub-grade parking lot, a communal lounge, a fitness center, and a shared roof deck with outdoor cooking areas and a landscaped garden.

The Henry is the latest rental property from developer Timber Equities, which confirmed that construction is on schedule for completion and delivery by early 2022.

Designed by Kutnicki Bernstein Architects, the façade is constructed of gray and tan masonry with large windows encased in dark metal framing. When complete, many of the units will offer a private balcony or a terrace facing the Hudson River.

“Given the breathtaking bridge and river views and unrivaled proximity to transit, The Henry stands out as a best-in-class destination for luxury, waterfront living,” said Timber Equities principal Mitch Perle. “The volume of leasing inquiries we’ve received to date, well in advance of completion, underscores the interest in high-quality new construction residences in this location.”

Timber Equities has retained Bohemia Realty Group as its exclusive leasing and marketing agent.

Waterfront and other views of ‘The Henry’ (2395 Palisade Avenue) – Courtesy of Timber Equities

213 Days and Counting - Go Brooklyn Nets

 

Well well, the Brooklyn Net advanced to round two of the NBA playoffs, and the Knicks were eliminated, Boo Hoo for the Knicks they didn't belong in the playoffs anyway, and now they are gone. Go Brooklyn all the way to the championship.

The mayoral debate was last night, and you have a tough choice as voters. I will tell you my choice after the election as I have written it down and put it in a sealed envelope. Charlene you marked each envelope so I know which one to choose after the winner is known so I will be right. 

Manhattan U.S. Attorney Announces $692,000 Settlement Resolving Fraud Claims Against Contractor And Its Owners For Failing To Comply With Dbe Rules On The Tappan Zee Bridge Replacement Project

 

Defendants Repeatedly Failed to Disclose That a Non-DBE Subcontractor Performed Work Exclusively Attributed to Their DBE

 Audrey Strauss, the United States Attorney for the Southern District of New York, and Brian C. Gallagher, Acting Special Agent in Charge of the U.S. Department of Transportation Office of Inspector General Northeastern Region (“DOT-OIG”), announced today that the United States filed and settled a civil fraud lawsuit against NAUGHTON ENERGY CORPORATION (“NAUGHTON ENERGY”) and two of its owners, its president, MARIETTE NAUGHTON, and her husband, JOSEPH NAUGHTON (collectively, “Defendants”).  NAUGHTON ENERGY, a Pennsylvania-based fuel distributor, supplied diesel fuel to vehicles and equipment used in connection with the federally funded New NY Bridge Project (the “NNYB Project”), a construction project to replace New York’s Governor Malcolm Wilson Tappan Zee Bridge.  The settlement resolves the United States’ allegations in a False Claims Act lawsuit that Defendants fraudulently caused the submission of false claims by causing the prime contractor on the NNYB Project (the “Prime Contractor”) to misrepresent compliance with Disadvantaged Business Enterprise (“DBE”) rules, which require participation of businesses owned by women and minorities.  Specifically, the United States alleged that NAUGHTON ENERGY, MARIETTE NAUGHTON, and JOSEPH NAUGHTON misrepresented to the Prime Contractor that NAUGHTON ENERGY was solely performing millions of dollars of work on the NNYB Project when in fact much of that work was performed by a non-DBE subcontractor.  As part of the settlement approved yesterday by U.S. District Judge Valerie E. Caproni, NAUGHTON ENERGY, MARIETTE NAUGHTON, and JOSEPH NAUGHTON admit and accept responsibility for conduct alleged in the Government’s complaint and, pursuant to the terms of a settlement based on their ability to pay, have agreed to pay $692,000 over the next five years to the United States.

Manhattan U.S. Attorney Audrey Strauss said:  “DBE participation goals create opportunities for DBEs to work on federally funded construction projects.  When DBEs fail to disclose the involvement of non-DBEs in their work, they effectively divert resources to ineligible firms and undermine the DBE program’s goal of creating an environment in which businesses owned by women and minorities can compete fairly for United States Department of Transportation-assisted contracts.”

USDOT-OIG Acting Special Agent in Charge Brian C. Gallagher, said:  “The settlement reached today only strengthens our resolve in pursuing those whose spurious actions prevent the legitimate participation of disadvantaged enterprises (DBE) in federally funded transportation projects.  While the integrity of DOT’s DBE program was compromised in this instance, we remain steadfast working alongside our law enforcement and prosecutorial partners to ensure funds designated to support disadvantaged small businesses are used for their intended benefit and purpose.”

As alleged in the Complaint, from August 1, 2013, through January 16, 2020, Defendants caused the submission of false claims for payment to the United States Department of Transportation (the “DOT”).  Specifically, Defendants represented that NAUGHTON ENERGY, a certified DBE, provided fuel, trucking, and manpower services without assistance from a subcontractor.  The Complaint alleges that, from the outset of their involvement on the NNYB Project, Defendants represented that they could deliver diesel fuel to the work site wholly independently.  However, Defendants lacked both a fuel truck with sufficient capacity and employees with the necessary union affiliation to effectively make these deliveries.  Defendants, therefore, arranged for a non-DBE subcontractor (“Subcontractor Y”) to supply the required fuel delivery truck (the “Project Truck”) and union personnel.  In exchange, Defendants shared half of their profits from the NNYB Project with Subcontractor Y.  Defendants never disclosed this arrangement to the Prime Contractor, and instead, made concerted efforts to give the false appearance that NAUGHTON ENERGY performed the work unassisted.  These efforts included: (1) arranging a sham transaction wherein Subcontractor Y transferred ownership of the Project Truck, worth over $10,000, to NAUGHTON ENERGY for a mere $1; and (2) placing the owner of Subcontractor Y on NAUGHTON ENERGY’s payroll, to give the false impression that NAUGHTON ENERGY employees performed all of the services at issue.  Even after the Prime Contractor’s DBE program manager directly inquired as to Subcontractor Y’s involvement, Defendants continued to falsely state that NAUGHTON ENERGY performed its work without any subcontractor involvement.

As part of the settlement, Defendants admitted conduct alleged in the Complaint, including that:

*   Prior to beginning work on the project, Defendants contacted a non-DBE company, Subcontractor Y, to assist NAUGHTON ENERGY with providing diesel fuel services to the Prime Contractor.

*   NAUGHTON ENERGY used Subcontractor Y to provide diesel fuel services on the project because: (1) absent an agreement with Subcontractor Y regarding the use of its truck, NAUGHTON ENERGY did not have a fuel delivery truck with sufficient capacity to effectively provide diesel fuel services for the project; and (2) NAUGHTON ENERGY lacked the affiliation with the requisite union necessary to have its own staff work on the project

*   Defendants did not disclose this arrangement to the Prime Contractor.  Instead, Defendants took the following actions that made it appear that no subcontractor was involved in providing NAUGHTON ENERGY’s services: (1) Defendants negotiated with Subcontractor Y to transfer title of the Project Truck to NAUGHTON ENERGY for $1; and (2) Defendants placed an owner of Subcontractor Y on NAUGHTON ENERGY’s payroll.

*   Defendants failed to disclose Subcontractor Y’s involvement in the work performed on the project.

Ms. Strauss praised the outstanding investigative work of DOT-OIG.  She also thanked the New York State Office of the Inspector General for its assistance.  This case is being handled by the Office’s Civil Frauds Unit.  Assistant U.S. Attorney Jessica Jean Hu is in charge of the case.