Doctor Selling COVID-19 “Cure” Pleads Guilty

 

 Jennings Ryan Staley, a physician who attempted to profit from the pandemic by marketing a “miracle cure” for COVID-19, pleaded guilty in federal court today, admitting that he tried to smuggle hydroxychloroquine into the United States to sell in his coronavirus “treatment kits.”

Staley, the former operator of Skinny Beach Med Spas in and around San Diego, also admitted in his plea agreement that he abused his position of trust as a physician in making the extreme claims, and that he lied to the FBI when confronted about it.

The doctor pleaded guilty to one count of importation contrary to law, admitting that he worked with a Chinese supplier to try to smuggle into the United States a barrel that he believed contained over 26 pounds of hydroxychloroquine powder by mislabeling it as “yam extract.”  Staley admitted that he intended to sell the hydroxychloroquine powder in capsules as part of his 2020 business venture selling the COVID-19 “treatment kits.”

In his plea agreement, Staley also admitted that he wrote a prescription for hydroxychloroquine for one of his employees and then misused the employee’s name and personal identifying information and answered questions as though he were the employee to fill the prescription, all without the employee’s knowledge or consent. Staley agreed that he engaged in this conduct in order to obtain more of the drug for his enterprise. 

In late March and early April 2020, Staley marketed and sold his treatment kits to Skinny Beach customers.  According to the plea agreement, he described his products—which included hydroxychloroquine—as a “one hundred percent” cure, a “magic bullet,” an “amazing weapon,” and “almost too good to be true,” and stated that the products would provide at least six weeks of immunity. Staley admitted that these statements were material to his potential customers, and that as a doctor he abused a position of public trust. An undercover agent purchased six of Staley’s treatment packs for $4,000. 

Staley also admitted that he willfully impeded and sought to obstruct the federal investigation into his conduct by lying to federal agents.  Specifically, he falsely denied ever claiming that his treatment packages were a “one hundred percent effective cure,” adding “that would be foolish.”  Staley likewise falsely claimed that his medical practice would “absolutely” get all relevant information about each family member when sending out medications for a family treatment pack, when just a week earlier, he had dispensed a “family pack” of hydroxychloroquine, chloroquine, generic Viagra, Xanax, and azithromycin to the undercover agent without collecting any medical information from the agent or his five supposed family members.

“While healthcare workers around the world selflessly labored on the frontlines of an international pandemic, this doctor used his position of trust to cash in on COVID-19 fears,” said Acting U.S. Attorney Randy Grossman. “We are committed to protecting the American people from such scams and holding the scammers accountable.” Grossman commended the federal agents from FBI and FDA-OCI, and Assistant U.S. Attorneys Nicholas Pilchak and Jaclyn Stahl, who worked hard pursuing justice in this case.  He also commended U.S. Customs and Border Protection for its assistance with the investigation. 

“Dr. Staley offered a 'magic bullet' - a guaranteed cure for COVID-19 to people gripped in fear during a global pandemic,” said FBI Special Agent in Charge Suzanne Turner. “Today, Dr. Staley admitted it was all a lie as part of a scam to make a quick buck. The FBI will continue to vigorously pursue doctors who abuse their professions to defraud innocent victims with gimmicks of false hope and promises.”

“The FDA continues to work with its law enforcement partners to protect the public health by identifying, investigating and bringing to justice those who attempt to profit from the pandemic by offering and distributing COVID-19 treatments with unproven ‘miracle cure’ claims to American consumers,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office.

Staley’s next court date is October 8, 2021 before U.S. District Judge Gonzalo Curiel.

On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.

If you think you are a victim of COVID-19 fraud, immediately report it to the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI). The public is also urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at disaster@leo.gov.

SUMMARY OF CHARGES

Importation Contrary to Law, in violation of Title 18, United States Code, Section 545

Maximum Penalty: Twenty years in prison; fine; special assessment.

SCHUMER - OVER $7 BILLION EN ROUTE TO NEW YORK FAMILIES THROUGH ENHANCED CHILD TAX CREDIT;

 

The American Rescue Plan’s Child Tax Credit Expansion Provides Thousands of Dollars of Relief For Families Across Upstate New York for 2021 – More Than An Estimated $7 Billion Directly To Thousands Of Families 

 U.S. Senate Majority Leader Charles E. Schumer heralded the Child Tax Credit expansion which will allow payments of up to $300 per child to automatically go out to families across New York each month. Schumer said the plan will impact over 86% of New York children.

“Help is here for working families across New York in the form of enhanced Child Tax Credits that put more money in families’ pockets to recover from COVID even as its boosts New York’s economy,” said Senator Schumer. “Over 86% of families throughout New York will benefit from the enhanced Child Tax Credit just as they begin to fully recover from the global health and economic pandemic that rocked our country for the past year. That is why I made sure this relief bill included help for New York families, because this significant expansion of the Child Tax Credit will cut the nation’s child poverty rate in half and bring necessary relief. The credit expansion – on top of the $1,400 direct checks that came earlier this year – will provide New York’s families with thousands of dollars of relief, directly in their pockets. Getting additional federal dollars into the hands of struggling families not only makes sense, but it’s what’s needed to help the New York recover from the pandemic.”

Schumer explained the Child Tax Credit (CTC), one of the most powerful and effective anti-poverty tools the federal government has, was significantly expanded for American households in the American Rescue Plan. This tax credit expansion will deliver an estimated $7.03 billion in additional economic relief to families with children across New York and have a major impact on working families.

The total amount of Expanded Child Tax Credit headed to each region in New York State can be found below:   

REGION	TOTAL EXPANDED CTC
Southern Tier	$264,503,932
Capital Region	$502,125,581
Central	$471,279,544
Hudson Valley	$847,414,412
Long Island	$1,028,580,062
NYC	$2,997,872,107
Finger Lakes	$435,560,223
Western	$482,651,024
TOTAL:	$7,029,986,887

  Schumer highlighted that researchers have estimated that the American Rescue Plan – including the expanded Child Tax Credit – will cut the child poverty rate in half nationally. Specifically, the relief bill increases the Child Tax Credit amount from $2,000 to $3,000 per child age 6 to 17 (and $3,600 per child below the age of 6) for 2021.

Additionally, the bill makes the CTC fully refundable and removes the $2,500 earnings floor to receive the credit for 2021, ensuring that the lowest income households will be able to benefit from the maximum credit amount for the year. This change importantly corrected flaws in the credit that prevented around 27 million children nationwide whose families have little or no income from receiving the full benefit – and in New York State alone, this credit expansion will benefit 1,546,000 of these children who were previously left out of the full Child Tax Credit.

The increased $3,000 or $3,600 CTC is available to families making less than $150,000, and it phases down above that income level, so households over $150,000 will see a reduced credit. This boosted credit amount is particularly impactful in lower-income households, as it has been found that increasing a low-income child’s family income early in their life has numerous, critical longer-term benefits on education, health, and even employment. Specifically, it is estimated that a $3,000 increase in annual family income for children under age five translates into an estimated 19 percent earnings increase in adulthood.

According to the Center on Budget and Policy Priorities, an estimated 3,564,000 children across New York will benefit from this expanded tax credit – including 583,000 Black, 954,000 Latino, and 266,000 Asian American children. It will also lift 680,000 children in the state above or closer to the poverty line.

Governor Cuomo Updates New Yorkers on State's Progress Combating COVID-19

 

34,472 Vaccine Doses Administered Over Last 24 Hours

352 Patient Hospitalizations Statewide

2 COVID-19 Deaths Statewide Yesterday

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

"New Yorkers have fought COVID-19 every single step of the way during this pandemic, but there's one final push we have to make, and that's the need for everyone to get vaccinated," Governor Cuomo said. "Getting shots in arms is key to our success against this terrible virus, and if you haven't gotten yours yet, I urge you to make an appointment or walk into one of the many sites we have across the state. Help yourself, your family and your community by getting your shot today."

 

Today's data is summarized briefly below:

• Test Results Reported - 75,846
• Total Positive - 1,142
• Percent Positive - 1.51%
• 7-Day Average Percent Positive - 1.26%
• Patient Hospitalization - 352 (-2)
• Patients Newly Admitted - 63
• Patients in ICU - 79 (+0)
• Patients in ICU with Intubation - 32 (-4)
• Total Discharges - 185,845 (+83)
• Deaths - 2
• Total Deaths - 43,031
• Total vaccine doses administered - 21,789,805
• Total vaccine doses administered over past 24 hours - 34,472
• Total vaccine doses administered over past 7 days - 233,402
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 71.0%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 65.7%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 73.8%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 67.3%
• Percent of all New Yorkers with at least one vaccine dose - 59.2%
• Percent of all New Yorkers with completed vaccine series - 54.5%
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 61.6%
• Percent of all New Yorkers with completed vaccine series (CDC) - 55.9%

Treasurer Of Law Enforcement Union Pleads Guilty To Tax Evasion And Lying To Federal Officers

  

 Audrey Strauss, United States Attorney for the Southern District of New York, announced that STEVEN WHITTICK, the former treasurer of the Law Enforcement Employees Benevolent Association (“LEEBA”) and an officer with the New York City (the “City”) Department of Environmental Protection (“DEP”), pled guilty today before United States District Judge P. Kevin Castel, to charges of conspiring to evade more than $250,000 in federal taxes, including payroll taxes owed by LEEBA and its employees, and his own personal income taxes.  WHITTICK also pled guilty to lying to federal officers during the course of the investigation in this case.  LEEBA is a labor union that represents certain law enforcement officers employed by the City, including officers from DEP, the City Department of Sanitation, and the City Department of Transportation. 

U.S. Attorney Audrey Strauss said: “Steven Whittick today pled guilty to charges that reflect a betrayal of his duties as a law enforcement officer, his legal obligations as a union official, and his responsibilities as a taxpayer.  As a police officer, Whittick swore to uphold the law, not to obstruct it.  As a union official, he betrayed the rank-and-file membership by paying himself off the books.  As a taxpayer, Whittick evaded his legal obligation to pay what was owed.  Now, Steven Whittick awaits sentencing for his crimes.”

According to the Indictment and the underlying complaints filed in this case, as well as other publicly available information and prior court filings, and recent court proceedings:

Law Enforcement Employees Benevolent Association

LEEBA is a labor union that has acted as the collective bargaining representative principally for law enforce­ment personnel at various City agencies, and has entered into agreements on behalf of those law enforcement employees, including agreements for insurance and retirement benefits.  The City agencies whose employees LEEBA represented included, at various times, DEP, the Department of Sanitation, and the Department of Transportation.           

WHITTICK

WHITTICK is a DEP police officer, the former treasurer of LEEBA, and a member of the board of directors of LEEBA and the boards of trustees of the LEEBA Annuity Fund and the LEEBA Welfare Fund.  As LEEBA’s treasurer, WHITTICK had responsibility for LEEBA’s financial matters and accounts, including arranging for LEEBA to pay its payroll through an outside payroll processing firm (the “Payroll Processor”) starting in 2016.  WHITTICK also held signatory authority over LEEBA’s main operating bank account.

            The Tax Evasion Conspiracy

As charged in Count Two of the Indictment, to which WHITTICK pled guilty today, from at least in or about 2015 through 2019, WHITTICK participated in a conspiracy with Kenneth Wynder Jr.,[1] the president of LEEBA, to cause LEEBA to make payments to WHITTICK and Wynder, by check and in cash, and to conceal such payments from the Internal Revenue Service (“IRS”).  WHITTICK further conspired to ensure that such payments were made outside of LEEBA’s Payroll Processor.  He then concealed these payments from the IRS – including off-the-books payments to himself of more than $100,000 and off-the-books payments to Wynder of more than $400,000 – in order to evade his own personal income taxes and the personal income taxes of Wynder, and to evade the payroll taxes that were owed by LEEBA and certain LEEBA employees.

WHITTICK’s False Statements to Federal Agents

In or about October 2019, while serving as LEEBA’s Treasurer and after learning of a federal investigation into LEEBA’s finances – including the investigation of an alleged embezzlement scheme that ultimately resulted in wire fraud charges against Wynder – WHITTICK repeatedly lied to federal agents in an effort to obstruct that investigation.  WHITTICK did so despite personal involvement in some of the financial improprieties with which Wynder is charged.  For example, as alleged, on at least two occasions, on or about February 1, 2018, and March 30, 2018, WHITTICK withdrew $16,000 in cash from a LEEBA bank account, and on each occasion deposited $15,000 cash into Wynder’s personal bank account and $1,000 cash into WHITTICK’s own personal bank account. 

After the FBI executed a search warrant of LEEBA’s offices in September 2019, WHITTICK attempted to obstruct and to influence the ongoing federal investigation by making, in two different interviews with law enforcement agents, false statements about, among other subjects, cash withdrawals he made from LEEBA’s bank accounts, unauthorized withdrawals from LEEBA’s Annuity Fund and from the individual retirement accounts of Fund participants, and LEEBA’s payment for certain travel and entertainment expenses for union officers, including WHITTICK and Wynder.

WHITTICK, 51, of Kingston, New York, pled guilty today to: (1) one count of conspiracy to evade personal and payroll taxes for the tax years 2015 through 2018 and the first three quarters of 2019; and (2) one count of lying to federal investigators.  Each of those charges carries a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution.  WHITTICK is scheduled to be sentenced by Judge Castel on November 17, 2021, at 11:00 a.m. 

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Ms. Strauss praised the outstanding work of the FBI, IRS-Criminal Investigation, and the Department of Labor Office of Labor Managements Standards.  Ms. Strauss also thanked the New York City Comptroller’s Office and the New York City Department of Investigation for their assistance.

[1] Wynder is charged in six counts of the same Indictment in which WHITTICK was charged.  The charges against Wynder contained in the Indictment are accusations only.  Wynder remains presumed innocent unless and until proven guilty.

168 Days and Counting

 

I almost said to the Yankees with six players who tested positive for COVID after the All Star Game, that they should give me a try out. After all I throw a wicked curve, just ask most of the candidates who ran to replace me. Many wanted my endorsement, but I kept them in the dark, and didn't endorse any of them.

Getting back to baseball, I remembered that the Yankees were playing my favorite team the Boston Red Sox, so I would never help a team that was opposing them. Was that the bat boy on first base for the Yankees?

Governor Cuomo Updates New Yorkers on State's Progress Combating COVID-19

 

34,659 Vaccine Doses Administered Over Last 24 Hours

354 Patient Hospitalizations Statewide

4 COVID-19 Deaths Statewide Yesterday

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

"As we continue battling the COVID-19 virus across the state, our top priority is to continue bringing the vaccine into every single community here as soon as possible," Governor Cuomo said. "The vaccine remains our single best weapon against this virus, and it is free, safe and effective. Our hard-won progress depends on the state's ability to get shots in arms, so if you haven't received your shot yet, I urge you to make an appointment or simply walk into a vaccination site immediately."

 

Today's data is summarized briefly below:

• Test Results Reported - 82,967
• Total Positive - 1,156
• Percent Positive - 1.39%
• 7-Day Average Percent Positive - 1.19%
• Patient Hospitalization - 354 (-6)
• Patients Newly Admitted - 60
• Patients in ICU - 79 (+0)
• Patients in ICU with Intubation - 36 (+2)
• Total Discharges - 185,762 (+62)
• Deaths - 4
• Total Deaths - 43,029
• Total vaccine doses administered - 21,755,333
• Total vaccine doses administered over past 24 hours - 34,659
• Total vaccine doses administered over past 7 days - 230,414
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 70.9%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 65.6%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 73.7%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 67.2%
• Percent of all New Yorkers with at least one vaccine dose - 59.1%
• Percent of all New Yorkers with completed vaccine series - 54.4%
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 61.5%
• Percent of all New Yorkers with completed vaccine series (CDC) - 55.8%

BRONX MAN SENTENCED FOR 2018 SHOOTING IN LONGWOOD THAT LEFT ONE MAN DEAD; TWO BYSTANDERS WOUNDED

 

Defendant Pleaded Guilty to First-Degree Manslaughter 

 Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to 18 years in prison after pleading guilty to first-degree Manslaughter in a 2018 shooting that left his target dead and two bystanders wounded. 

 District Attorney Clark said, “The defendant got out of a vehicle and fired multiple shots, striking a 26-year-old man and killing him. Two innocent bystanders, a teen and a 29-year-old man, were also shot. The defendant will now go to prison for the needless gun violence that occurred that day.” 

 District Attorney Clark said the defendant, Joseph Cruz, 23, last of 1095 Prospect Avenue, was sentenced today to 18 years in prison and five years’ post-release supervision by Bronx Supreme Court Justice Ralph Fabrizio. The defendant pleaded guilty to first-degree Manslaughter on June 17, 2021.

 According to the investigation, on May 1, 2018 at approximately 10:00 p.m., in front of 971 Prospect Avenue, the defendant got out of a vehicle and fired at least eight shots in the direction of Matthew Gonzalez, 26. Gonzalez was shot twice in the back and once in the arm. A man, who was with a child in a stroller about 30 feet away, was hit in his calf, and a 17-year-old boy was struck in the neck and torso. Gonzalez was taken to Lincoln Hospital and died less than an hour after arrival. The two bystanders were taken to nearby hospitals and survived. The defendant fled to Pennsylvania after the incident and was arrested on August 7, 2018. The cause of the shooting may have been gang-related.

 District Attorney Clark thanked NYPD Detective Anthony Batista of the 42nd Precinct and NYPD Detective Keith Walker (retired) of Bronx Homicide for their assistance in the investigation.

Enforcer Of Violent Narcotics Trafficking Organization Sentenced To 35 Years In Prison For His Role In 7 Murders

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that JASON DONES-GONZALEZ, an enforcer for La Organización de Narcotraficantes Unidos (“La ONU”), was sentenced by U.S. District Judge Jesse M. Furman to 35 years in prison.  DONES-GONZALEZ previously pled guilty to participating in a racketeering conspiracy, participating in a conspiracy to commit murder, and unlawfully possessing a machine gun.  

U.S. Attorney Audrey Strauss said: “Jason Dones-Gonzalez was a ruthless murderer who carried out numerous acts of wanton and depraved violence as an enforcer for La ONU.  As just one example, Dones-Gonzalez and an accomplice beat a man until he appeared to be dead, but just to be sure, he and the accomplice stuffed the victim’s body into a suitcase, transported it elsewhere, shot it, and lit it on fire.  This degree of cold-blooded indifference to – indeed, apparent pleasure at – taking another human life merits a firm reckoning.  Today Jason Dones-Gonzalez was rightly sentenced to 35 years in prison for his horrific crimes.”

According to the Indictment, other filings in this case, and statements during court proceedings:

From at least in or about 2004 until 2016, DONES-GONZALEZ was a member and enforcer of La ONU, a criminal enterprise involved in shipping thousands of kilograms of cocaine from Puerto Rico to New York.  Cocaine supplied by La ONU was then distributed in New York City, including out of a daycare center in the Bronx, New York.  Members and associates of La ONU also engaged in acts of violence, including murder, to protect and expand the enterprise’s criminal operations and in connection with rivalries with other criminal organizations.  In particular, members of the enterprise were ordered to shoot and kill suspected rival drug trafficking members.

As an enforcer for La ONU, DONES-GONZALEZ participated in the murder of at least seven people between approximately 2006 and 2010.  Those murders involved heinous and brazen acts of violence, including, for example, kidnapping and killing individuals, strangling two individuals believed to be spies, interrogating them for information, and then shooting them, choking and shooting an individual believed to be cooperating with law enforcement, and assaulting an individual, placing that individual’s body in a suitcase, and shooting and lighting the suitcase on fire.  Specifically:

In approximately 2006 or 2007, members of La ONU kidnapped and killed Freddy Mendez-Rivera after learning from corrupt law enforcement officers working for La ONU that Mendez-Rivera had complained to law enforcement about drug dealing occurring in his neighborhood.  DONES-GONZALEZ and two other individuals put Mendez-Rivera into a van and killed him.

In 2007, DONES-GONZALEZ and three other individuals strangled two men alleged to be spies with twisted-up t-shirts while interrogating them for information.  DONES-GONZALEZ and the others then shot the men, one of whom died.

In approximately 2008 or 2009, DONES-GONZALEZ and four other individuals dressed up as police officers and kidnapped an individual known as “Gabi,” a leader of a rival drug trafficking organization, from his home and killed him.

In 2009, DONES-GONZALEZ and another individual killed an individual known as “Sacca Grippe,” because they thought that he was cooperating with law enforcement.  They choked and shot him.

On March 20, 2009, DONES-GONZALEZ and other members of La ONU murdered Carlos Barbosa on the orders of a leader of La ONU because Barbosa was threatening to take control of certain drug territory from that leader.  DONES-GONZALEZ used a FN pistol, which is designed to fire multiple rounds upon a single pull of the trigger, and which fires ammunition that can penetrate body armor.

On November 27, 2009, DONES-GONZALEZ and other La ONU members assaulted Emanuel Correa Romero until he appeared dead.  The leadership of a local housing project gang, after consulting with other leaders of La ONU, had decided that Correa Romero should be killed because he had murdered the friend of a leader of a component of La ONU.  After the assault, DONES-GONZALEZ and another individual placed Correa Romero’s body into a suitcase, removed it from the housing project, and later reported back that they shot the suitcase and then lit it on fire.

On July 1, 2010, a leader of La ONU ordered the murder of Victor Alexis Rivera Santiago, a reggaeton singer who participated in narcotics trafficking, for stealing a kilogram of cocaine from the son of the leader’s friend and killing the son in the process.  DONES-GONZALEZ and others tied Rivera Santiago up in the leader’s presence, transported him to an apartment, questioned him, and killed him.           

In addition to the prison term, Judge Furman sentenced DONES-GONZALEZ, 41, of Puerto Rico, to three years of supervised release.

Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Department.  Ms. Strauss also thanked the United States Attorney’s Office in the District of Puerto Rico and the Puerto Rico Police Department for their support in this ongoing investigation.