At First Gun Violence Prevention Community Meeting in Brooklyn, Governor Cuomo Announces More Than 4,000 Jobs Available for At-Risk Youth in Emerging New York City Gun Violence Hot Spots

 

2,000 Summer Jobs Will Be Created for Youth in Gun Violence Hot Spots in New York City; 2,388 Long-Term Jobs Will Be Created in Partnership Consortium for Worker Education in New York City

At First in Series of Community Meetings, State and Community Leaders Agree on Initiatives to Respond to Ongoing Gun Violence in East Brooklyn

Key Initiatives Include Creating Jobs and Summer Programs for At-Risk Youth; Increasing Presence of Violence Interveners in Community; and Expanding Community Services and Assistance for Mental Health, Substance Abuse and Family Crisis

 At the first gun violence prevention community meeting in Brooklyn, Governor Andrew M. Cuomo today announced more than 4,000 jobs will be available for at-risk youth in emerging gun violence hot spots in New York City. The state will provide funding to create 2,000 summer jobs for youth aged 15 to 24 in emerging gun violence hot spot areas in New York City to keep them employed until the start of school this year. The State is also partnering with Consortium for Worker Education to provide long-term jobs for 2,388 young people who are out of school and live in the neighborhoods in New York City most impacted by gun violence.

"Gun violence is a complex issue that needs a different response if we want to end it once and for all," Governor Cuomo said. "A key piece of this response is getting to young people before they enter the pipeline of the system and stopping the cycle of violence before it even starts. This can't just be one initiative - that's not going to work here - we need to empower community groups and give them the tools and resources they need to reach young people and intervene, and that's exactly what we're doing here in East Brooklyn. This is the first community in the state that we are reaching out to, and I believe the product of this meeting and the ones that come after will be saving young lives."

During this first gun violence prevention community meeting, the state and community leaders agreed on several initiatives to respond to the ongoing gun violence in the East Brooklyn community. The initiatives focus on engaging the most at-risk youth in cluster zones in employment and community activities, hiring new community-based gun violence interrupters, as well as assistance for mental health and substance use disorders. This was the first in a series of community meetings that will be held in emerging gun violence hot spots across the state. Last week, Governor Cuomo issued Executive Order No. 211 declaring gun violence a disaster emergency and requiring New York State's Division of Criminal Justice Services to compile incident-level data provided by major police departments on a weekly basis so that it may be used by the newly established Office of Gun Violence Prevention to track emerging gun violence hot spots and deploy resources to areas most in need.

In today's meeting, specific steps to combat gun violence in East Brooklyn included:

1. Creating up to 900 jobs for youth in East Brooklyn, including 415 summer jobs and 485 long-term jobs placed by CWE;
2. Establishing summer programs for youth in East Brooklyn, including 100 dedicated events at Shirley Chisholm State Park;
3. Hiring new violence interveners to work at existing community intervention programs in the East Brooklyn community and increasing the intervener staff at Brookdale Hospital to allow for 24/7 coverage; and
4. Expanding community services and assistance for mental health support, substance abuse treatment and family crisis intervention.

Manhattan U.S. Attorney Announces Kidnapping Conspiracy Charges Against An Iranian Intelligence Officer And Members Of An Iranian Intelligence Network

 

Iranian Intelligence Services Allegedly Plotted to Kidnap a U.S. Journalist and Human Rights Activist from New York City for Rendition to Iran

 Audrey Strauss, the United States Attorney for the Southern District of New York, Mark J. Lesko, the Acting Assistant Attorney General for National Security, and William F. Sweeney Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of kidnapping conspiracy, sanctions violations conspiracy, bank and wire fraud conspiracy, and money laundering conspiracy charges against ALIREZA SHAVAROGHI FARAHANI, a/k/a “Vezarat Salimi,” a/k/a “Haj Ali,” MAHMOUD KHAZEIN, KIYA SADEGHI, and OMID NOORI, and sanctions violations conspiracy, bank and wire fraud conspiracy, money laundering conspiracy, and structuring charges against NILOUFAR BAHADORIFAR, a/k/a “Nellie Bahadorifar.”  The charges are contained in a Superseding Indictment unsealed today in Manhattan federal court.  The case is pending before U.S. District Judge Ronnie Abrams.  BAHADORIFAR was arrested on July 1, 2021 in California on charges contained in an underlying indictment.  BAHADORIFAR will be arraigned on the charges in the Superseding Indictment by Judge Abrams at a date and time to be set by the Court.  FARAHANI, KHAZEIN, SADEGHI, and NOORI, all of whom are based in Iran, remain at large.     

U.S. Attorney Audrey Strauss said: “As alleged, four of the defendants monitored and planned to kidnap a U.S. citizen of Iranian origin who has been critical of the regime’s autocracy, and to forcibly take their intended victim to Iran, where the victim’s fate would have been uncertain at best.  Among this country’s most cherished freedoms is the right to speak one’s mind without fear of government reprisal.  A U.S. citizen living in the United States must be able to advocate for human rights without being targeted by foreign intelligence operatives.  Thanks to the FBI’s exposure of their alleged scheme, these defendants have failed to silence criticism by forcible abduction.”

Acting Assistant Attorney General Mark J. Lesko said: “Every person in the United States must be free from harassment, threats and physical harm by foreign powers.  Through this indictment, we bring to light one such pernicious plot to harm an American citizen who was exercising their First Amendment rights, and we commit ourselves to bring the defendants to justice.”

FBI Assistant Director William F. Sweeney Jr. said: “This is not some far-fetched movie plot. We allege a group, backed by the Iranian government, conspired to kidnap a U.S. based journalist here on our soil and forcibly return her to Iran. Not on our watch. FBI special agents and analysts will continue to aggressively hunt for foreign operatives who attempt illegal action inside our borders or against our citizens. Working side-by-side with our international partners, the FBI’s reach is global. When we find you, you will be brought here and held accountable under U.S. law.”

According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1] 

FARAHANI is an Iranian intelligence official who resides in Iran.  KHAZEIN, SADEGHI, and NOORI are Iranian intelligence assets who also reside in Iran.  Since at least June 2020, FARAHANI, and the intelligence network he manages – including KHAZEIN, SADEGHI, and NOORI – have plotted to kidnap a U.S. citizen of Iranian origin (“Victim-1”) from within the United States in furtherance of the Government of Iran’s efforts to silence Victim-1’s criticisms of the regime.  Victim-1 is a journalist, author, and human rights activist, residing in Brooklyn, New York, who has publicized the Government of Iran’s human rights abuses. 

Prior to the plot to kidnap Victim-1 on U.S. soil, the Government of Iran attempted to lure Victim-1 to a third country in order to capture Victim-1 for rendition to Iran.  In approximately 2018, Iranian government officials attempted to induce relatives of Victim-1, who reside in Iran, to invite Victim-1 to travel to a third country for the apparent purpose of having Victim-1 arrested or detained and transported to Iran for imprisonment.  Victim-1’s relatives did not accept the offer.  Iranian intelligence services have previously lured other Iranian dissidents from France and from the United States for the purposes of capturing and imprisoning regime critics and have publicly claimed responsibility for these capture operations.  An electronic device used by FARAHANI contains, among other things, a photo of Victim-1 alongside photos of two other individuals, both of whom were captured by Iranian intelligence, with one later executed and the other imprisoned in Iran, and a caption in Farsi stating, “Gradually the gathering gets bigger...  Are you coming, or should we come for you?”

On multiple occasions in 2020 and 2021, as part of the plot to kidnap Victim-1, FARAHANI and his network procured the services of private investigators to surveil, photograph, and video record Victim-1 and Victim-1’s household members in Brooklyn.  The extensive surveillance that FARAHANI’s network procured included requests for days’ worth of surveillance at Victim-1’s home and the surrounding area, videos and photographs of Victim-1’s family and associates, surveillance of Victim-1 outside Victim-1’s residence, and the installation of and access to a live high-definition video feed depicting Victim-1’s home.  The network repeatedly insisted on high-quality photographs and video recordings of Victim-1 and Victim-1’s household members; a large volume of content; pictures of visitors and objects around the house; and depictions of Victim-1’s body language.  The network procured the surveillance by misrepresenting their identities and the purpose of the surveillance to the investigators, and laundered money into the United States from Iran in order to pay for the surveillance, photos, and video recordings of Victim-1.  SADEGHI acted as the network’s primary point of contact with the private investigators in the United States, and NOORI facilitated payment to the investigators in furtherance of the plot targeting Victim-1.

As part of the kidnapping plot, the FARAHANI-led intelligence network also researched methods of transporting Victim-1 out of the United States for rendition to Iran.  SADEGHI, for example, researched a service offering military-style speedboats for self-operated maritime evacuation out of New York City, and maritime travel from New York to Venezuela, a country whose de facto government has friendly relations with Iran.  KHAZEIN researched travel routes from Victim-1’s residence to a waterfront neighborhood in Brooklyn, the location of Victim-1’s residence relative to Venezuela, and the location of Victim-1’s residence relative to Tehran.    

The network that FARAHANI directs has also targeted victims in other countries, including victims in Canada, the United Kingdom, and the United Arab Emirates, and has worked to procure similar surveillance of those victims.

BAHADORIFAR is originally from Iran and is currently a California resident.  BAHADORIFAR has provided financial and other services from the United States to Iranian residents and entities, including to KHAZEIN, since at least in or about 2015, including access to the U.S. financial system and U.S. financial institutions through the use of card accounts, and has offered to manage business interests in the United States on KHAZEIN’s behalf.  Among other things, BAHADORIFAR caused a payment to be made to a private investigator for surveillance of Victim-1 on KHAZEIN’s behalf.  BAHADORIFAR is not charged with participating in the kidnapping conspiracy, but is alleged to have provided financial services that supported the plot and is charged with conspiring to violate sanctions against Iran, to commit bank and wire fraud, and to commit money laundering.  BAHADORIFAR is also charged with structuring cash deposits totaling more than approximately $445,000.

ALIREZA SHAVAROGHI FARAHANI, 50, MAHMOUD KHAZEIN, 42, KIYA SADEGHI, 35, and OMID NOORI, 45, all of Iran, have each been charged with: (1) conspiring to kidnap, which carries a maximum sentence of life in prison (Count One), (2) conspiring to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum sentence of 20 years in prison (Count Two), (3) conspiring to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison (Count Three), and (4) conspiring to launder money, which carries a maximum sentence of 20 years in prison (Count Four).  NILOUFAR BAHADORIFAR, 46, of California, is charged in Counts Two, Three, and Four, and is further charged with structuring (Count Five), which carries a maximum sentence of 10 years in prison.  The potential maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge Abrams.

BAHADORIFAR was arrested on charges contained in an underlying indictment on July 1, 2021, and was arraigned by Judge Abrams on that indictment on July 8, 2021.  FARAHANI, KHAZEIN, SADEGHI, and NOORI remain at large. 

Ms. Strauss praised the outstanding investigative work of the FBI’s New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force.  Ms. Strauss also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, the FBI’s Los Angeles Field Office Orange County Resident Agency, and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for their assistance.

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

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

Attorney General James Returns $427,000 to New Yorkers Who Had Events Cancelled Due to COVID-19 Pandemic

 

76 New Yorkers Fully Refunded Deposits for Events Cancelled Due to NYS’s Restrictions on Large Gatherings  

AG James Has Helped Return Nearly $800,000 to New Yorkers Who Reserved Spaces for Events Cancelled Since March 2020

  New York Attorney General Letitia James today announced she successfully arranged for the Greentree Country Club in New Rochelle, NY to make full restitution to 76 consumers who paid deposits for events that were cancelled as a result of the coronavirus disease 2019 (COVID-19) pandemic. After the Office of the Attorney General (OAG) intervened to work with the owner of the Greentree Country Club — M.N. & G Restaurant and Caterer, Inc. — all consumers who sought a refund received full restitution, totaling $427,000.

“The pandemic caused a wave of disruption throughout New York state as we saw weddings, religious ceremonies, professional conferences, and many other large gatherings cancelled or delayed,” said Attorney General James. “Most of those events required deposits, totaling thousands of dollars paid upfront. After working with the owners of the Greentree County Club, I am happy to announce that all 76 consumers who paid deposits to the club will receive full restitution as we put $427,000 back into New Yorkers’ pockets. Since the start of the pandemic, we now have returned almost $800,000 to New Yorkers and will continue to fight for more, especially as the pandemic continues to take a financial toll on our state’s residents.”

In the spring of 2020, when COVID-19 began to quickly spread across the state, New York, like the rest of the nation, initiated lockdowns that prohibited large scale events from taking place. As events began to be cancelled, consumers who had placed deposits for events began to request refunds from the Greentree Country Club but were denied. Those consumers, instead, were offered other resolutions, such as rescheduling the event to a future date, accepting a credit of the deposit for future use, or transferring the credit to another person or event. Between April and September of 2020, the OAG received complaints from numerous consumers who paid deposits for cancelled events at the Greentree Country Club. The OAG was able to quickly resolve these matters earlier this year and negotiated thousands of dollars in refunds for those complainants. Based on the volume of complaints, the OAG initiated a full investigation, resulting in today’s restitution.

The OAG worked with the Greentree Country Club to make consumers whole and return those deposits that were not forfeited by unforeseeable events, like the COVID-19 pandemic. The OAG successfully negotiated with the Greentree Country Club to secure full restitution for 76 consumers who previously paid deposits to the venue. All 76 consumers have now been fully reimbursed the $427,000 they paid.

From March of 2020 through the present, the OAG received similar complaints about events booked and later cancelled due to pandemic restrictions. During this time, Attorney General James has helped recover a total of almost $800,000 for New Yorkers whose events were cancelled. In a number of other instances, consumers were able to successfully reschedule their events for a later date.

If consumers are having issues receiving a refund on a deposit for an event cancelled due to COVID-19 statewide regulations, they are encouraged to fill out an OAG complaint form or call the office’s hotline at (800) 771-7755.

Leader Of Manhattan Drug Trafficking Organization Sentenced To 15 Years In Prison

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that PEDRO VICIOSO DE LIMA, a/k/a “Pep,” a/k/a “Pepo,” was sentenced today in Manhattan federal court to 180 months in prison for leading a drug trafficking organization (the “DTO”) that was responsible for dealing fentanyl-laced heroin that has been tied to multiple suspected fatal and nonfatal overdoses.  VICIOSO DE LIMA previously pled guilty to participating in a conspiracy to distribute heroin, and was sentenced today before U.S. District Judge Colleen McMahon.

U.S. Attorney Audrey Strauss said: “As he previously admitted, Pedro Vicioso De Lima led a Washington Heights drug distribution network that sold fentanyl-laced heroin even after he was aware that customers were overdosing on it.  Vicioso De Lima’s drug peddling and his callous disregard for its consequences have resulted in today’s prison sentence.”

According to the allegations in the Indictment and other filings and statements made in Court:

VICIOSO DE LIMA was the leader of a drug trafficking organization (the “DTO”) that operated in New York, New York, and controlled heroin sales from a building at 501 West 167th Street (the “DTO’s Building”) and the immediately surrounding vicinity (the “DTO’s Drug Territory”).  From July 2016 to October 2018, the DTO is estimated to have distributed more than 85 kilograms of heroin, much of it laced with fentanyl.  VICIOSO DE LIMA controlled and oversaw the operations of the DTO, and together with his trusted second-in-command, Victor Hidalgo, managed stash houses in the DTO’s Drug Territory where the DTO stored its wares.  The defendant directed other members of the DTO on matters ranging from how to handle drugs being sold by the DTO, to managing lookouts who worked for the DTO and surveilled for law enforcement, to handling complaints by customers about the quality of drugs being sold by the DTO. 

No later than May 2018, VICIOSO DE LIMA was told by Hidalgo that the mixture of heroin being sold by the DTO was causing people to “drop[]” – or overdose – outside the DTO’s Building.  Nevertheless, VICIOSO DE LIMA persisted in leading the DTO and selling its potentially fatal narcotics through his arrest in this case in November 2018.

VICIOSO DE LIMA, 52, of Bergenfield, New Jersey, pled guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram and more of heroin from July 2016 to October 2018.  In addition to the prison term, VICIOSO DE LIMA was sentenced to 10 years of supervised release.

Hidalgo was previously sentenced to 120 months in prison.

Ms. Strauss praised the outstanding investigative work of Homeland Security Investigations, the Drug Enforcement Administration, and the New York City Police Department.

172 Days and Counting

 

We want you to get vaccinated if you have not. Right Dr. Chokshi.  

Let me take a question from a member of the media

Question: Thank you. And then, last week, Dr. Chokshi said that the vast majority of both new cases and hospitalizations are occurring for those who are not yet fully vaccinated. I'm wondering whether you have any data on whether anyone who has gotten the Delta variant or is hospitalized had, had antibodies from having previously had the original strain of COVID?  

  

Mayor: Very good question and I'm going to turn it to Dr. Chokshi.  

  

Commissioner Chokshi: Thank you for this important question, which is if someone has had previous infection and particularly if they have antibodies after that prior infection, are they at risk of getting reinfected, particularly with the Delta variant? And the answer is that there is a small risk of reinfection, and it appears that the Delta variant does have some slightly greater properties to invade the immune system. But natural infection does provide good protection against all of the variants of the virus that are circulating in New York City, including the Delta variant. The final point, which is very important, is that the best way to augment that immunity is to get vaccinated. So, if you're someone like me who had COVID-19 in the past, my recommendation is for you to get vaccinated as well, because we do have evidence that strengthens immunity and it may extend the duration of immunity as well.   

 

SATURDAY, JULY 17TH 2021

4:00pm - 6:00pm PT / 7:00pm 9:00pm ET

CELEBRATING 36 YEARS Throughout its more than 36 year history, the 116th Street Festival has evolved to become a major national event that represents New York’s diverse Latino communities, cultures, passions, and rhythms. While we miss being with our fans on the streets of New York, it’s still too early in the city’s post-COVID recovery to execute an in-person festival so this year we’re once again putting our full force and creativity behind a major virtual experience for 2021 that will be on local and national broadcast TV, on live stream platforms, and on OTT. We know you’ll enjoy this special edition of the festival as we hope and pray that in 2022 we can once again see you back on the streets of the 116th Street Festival.

HOSTED BY

Danny Trejo Connect with Us on Social  #116thStreetFestival Visit our website to learn more

U.S. Attorney Files And Simultaneously Settles Lawsuit Against Jujamcyn Theaters LLC To Improve Accessibility At Five Of Broadway’s Most Historic Theaters

 

Jujamcyn Agrees to Provide Dozens of Additional Wheelchair Accessible and Aisle Transfer Seating Locations, and Remove Hundreds of Barriers to Accessibility

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced today the filing and settlement of a lawsuit in Manhattan federal court against JUJAMCYN THEATERS LLC, the owners and operators of five of Broadway’s most historic theaters, the AL HIRSCHFELD, the AUGUST WILSON, the EUGENE O’NEILL, the ST. JAMES, and the WALTER KERR, involving violations of the Americans With Disabilities Act (the “ADA”).  The settlement, in the form of a consent decree, was entered yesterday by U.S. District Judge Analisa Torres.

U.S. Attorney Strauss said: “As New York City begins to reopen and welcome the world once again, we are pleased that Jujamcyn Theaters has worked collaboratively with the Office to improve accessibility at its historic venues, so that all patrons are able to enjoy Broadway.  As a result of this suit and settlement, coupled with similar lawsuits filed by the Office against the Shubert Theaters in 2003, and the Nederlander Theaters in 2014, all three of the major Broadway theater organizations have committed to making their venues significantly more accessible to people with disabilities.”

According to the Complaint and Consent Decree filed in Manhattan federal court:

In the course of an investigation and negotiation over several years, the U.S. Attorney’s Office identified numerous ADA violations at each of the five theaters operated by JUJAMCYN THEATERS LLC, all of which were opened in the 1920s.  The ADA generally requires that, for facilities constructed prior to the effective date of the ADA in 1993, barriers to accessibility be removed where it is readily achievable to do so.  Throughout the Government’s investigation and the negotiation of the Consent Decree, JUJAMCYN THEATERS LLC agreed to remove hundreds of barriers to accessibility.

Under the Consent Decree, JUJAMCYN THEATERS LLC agrees to continue its efforts to improve accessibility at its theaters, as the schedules of shows at the theaters permit. Specifically, JUJAMCYN THEATERS LLC has agreed to do the following:

• provide a total of 44 wheelchair accessible seating locations, and direct its ticket vendors to accord priority to persons with disabilities in selling those seating locations;
   
• provide a total of 54 aisle transfer seating locations for persons who are able to transfer from a wheelchair into a seat, and direct its ticket vendors to accord priority to persons with disabilities in selling those seating locations; and
   
• eliminate approximately 200 individual barriers to accessibility in theater restrooms, concession counters, waiting areas, and box offices.

In addition, JUJAMCYN THEATERS LLC will pay a $40,000 civil penalty to the United States.

 

Since President George H.W. Bush signed the ADA into law, the U.S. Attorney’s Office for the Southern District of New York has played a significant role in bringing numerous New York City institutions into compliance with the ADA and its regulations.  The Office’s enforcement efforts include, among many others, Yankee Stadium, Madison Square Garden, Radio City Music Hall, the Shubert Theaters, the Nederlander Theaters, Avery Fisher Hall at Lincoln Center, the Metropolitan Opera, the Apollo Theater, the Puck Building, the Rainbow Room, and The Vessel at Hudson Yards.

 

To file a complaint alleging that any place of public accommodation within the Southern District of New York is not accessible to persons with disabilities, use the Civil Rights Complaint Form available on the United States Attorney’s Office’s website, www.usdoj.gov/usao/nys. Complaints should be sent to:

 

U.S. Attorney’s Office, Southern District of New York

86 Chambers Street, 3rd Floor

New York, New York, 10007

Attention: Chief, Civil Rights Unit

Bank CEO Stephen M. Calk Convicted Of Corruptly Soliciting A Presidential Administration Position In Exchange For Approving $16 Million In Loans

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that STEPHEN M. CALK was convicted of financial institution bribery and conspiracy to commit financial institution bribery, for corruptly using his position as the head of a federally-insured bank to issue millions of dollars in high-risk loans to Paul Manafort in exchange for a personal benefit: CALK’s placement on a 2016 presidential campaign and assistance from Manafort in trying to obtain a senior position with the incoming presidential administration.  CALK was convicted following a three-week trial before U.S. District Judge Lorna G. Schofield.

Manhattan U.S. Attorney Audrey Strauss said:  “A unanimous jury convicted Stephen M. Calk of approving millions of dollars in high-risk loans to Paul Manafort in an effort to secure a personal benefit, namely a high-profile spot on the presidential campaign and appointment as Secretary of the Army or another similarly high-level position in the incoming presidential administration.  Calk used the federally-insured bank he ran as his personal piggybank to try and buy himself prestige and power.  Today’s verdict sends the message that corruption at the highest levels of federally regulated financial institutions will be prosecuted by this Office.”

As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:

CALK, The Federal Savings Bank, and Paul Manafort

STEPHEN M. CALK was the chairman and chief executive officer of The Federal Savings Bank, a federal savings association headquartered in Chicago, Illinois, with an office in New York, New York (the “Bank”).  The Bank was owned in its entirety by National Bancorp Holdings, a Chicago-based bank holding company (the “Holding Company”), and CALK was the chairman, chief executive officer, and owner of approximately 67% of the Holding Company.

Paul Manafort was a lobbyist and political consultant.  Beginning in or about March 2016, Manafort held a senior role with a 2016 presidential campaign (the “Presidential Campaign”), and from June 2016 through August 2016, he served as chairman of the Presidential Campaign.  After Manafort’s formal role with the Presidential Campaign concluded in or about August 2016, Manafort continued to be informally involved in the campaign.  Beginning in or about November 2016, when the candidate was elected President of the United States, Manafort provided informal input to the presidential transition team (the “Presidential Transition Team”).

The Corrupt Scheme

Between in or about July 2016 and January 2017, CALK engaged in a corrupt scheme to exploit his position as the head of the Bank and the Holding Company in an effort to secure a valuable personal benefit for himself, namely, Manafort’s assistance in obtaining for CALK a senior position in the presidential administration.  During this time period, Manafort sought millions of dollars in loans from the Bank.  CALK understood that Manafort urgently needed these loans in order to terminate or avoid foreclosure proceedings on multiple properties owned by Manafort and Manafort’s family.  Further, CALK believed that Manafort could use his influence with the Presidential Transition Team to assist CALK in obtaining a senior administration position.

CALK thus sought to leverage his control over the Bank and the loans sought by Manafort to his personal advantage.  Specifically, CALK offered to, and did, cause the Bank and Holding Company to extend $16 million in loans to Manafort in exchange for Manafort’s requested assistance in obtaining a high-level position in the presidential administration.  For example, and while Manafort’s loans were pending approval, CALK provided Manafort with a ranked list of the governmental positions he desired, which started with Secretary of the Treasury, and was followed by Deputy Secretary of the Treasury, Secretary of Commerce, and Secretary of Defense, as well as 19 ambassadorships similarly ranked and starting with the United Kingdom, France, Germany, and Italy.

In approving these loans to Manafort, CALK was aware of significant red flags regarding Manafort’s ability to repay the loans, such as his history of defaulting on prior loans.  Moreover, given the size of the loans, Manafort’s debt became the single largest lending relationship at the Bank.  In order to enable the Bank to issue these loans without violating the Bank’s legal limit on loans to a single borrower, CALK authorized a maneuver never before performed by the Bank, in which the Holding Company—which CALK also controlled—acquired a portion of the loans from the Bank.

During the same time period, Manafort provided CALK with valuable personal benefits.  First, in or about the summer of 2016, during the Presidential Campaign—and just days after CALK and the rest of the Bank’s credit committee conditionally approved a proposed $9.5 million loan to Manafort — Manafort appointed CALK to a prestigious economic advisory committee affiliated with the campaign.  And second, in or about late November and early December 2016—after the candidate had been elected President, after Manafort’s first loan from the Bank had been issued, and while a second set of loans worth $6.5 million sought by Manafort was pending approval by the Bank— Manafort used his influence with the Presidential Transition Team to assist Calk, recommending CALK for an administration position.  Due to Manafort’s efforts, CALK was formally interviewed for the position of Under Secretary of the Army on January 10, 2017 at the Presidential Transition Team’s principal offices in New York, New York.  CALK was not ultimately hired.

To conceal the unlawful nature of his scheme, CALK made false and misleading statements to the OCC regarding the loans to Manafort.  For example, CALK falsely stated to the OCC regulators that he had not known that the Manafort’s properties had been in foreclosure prior to issuing the loans.  CALK also stated that he had never desired a position in the presidential administration. 

CALK, 56, was found guilty of one count of financial institution bribery, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit financial institution bribery, which carries a maximum sentence of 5 years in prison.  CALK is scheduled to be sentenced on January 10, 2022.

Ms. Strauss praised the outstanding investigative work of the FBI and FDIC OIG.