Bank Insider Sentenced For Fraudulent Loan Scheme

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that HERODE CHANCY, who at the time of the offense was employed as a manager at a Manhattan branch of a national bank (“Bank-1”), was sentenced today to 30 months in prison for his role in a commercial loan fraud scheme for loans totaling over $1 million.  CHANCY’s sentence was imposed by United States District Judge Lewis J. Liman. 

U.S. Attorney Audrey Strauss said: “Bank employee Herode Chancy used fake businesses, doctored bank statements, and stolen identities in an effort to obtain over $1 million in commercial loans.  Now Chancy has rightly been sentenced to prison for his crime.  Prosecutions like this one should serve as notice to individuals in positions of trust at financial institutions that engaging in corrupt criminal conduct will lead to prosecution and prison.”

According to the Complaint, Indictment, and statements made in court:

From at least in or about March 2019 up to and including at least in or about March 2020, CHANCY and codefendant Adedayo Ilori conspired to fraudulently obtain business loans from a third-party commercial lender with the intent not to repay the loans – i.e., with the intent to “bust out” the loans.  CHANCY and Ilori together submitted eight fraudulent business loan applications for a total of $1,025,000 in business loans.  The business loan applications submitted by CHANCY and Ilori included doctored bank statements and listed the identities of other persons as the loan applicants, including stolen identities.  CHANCY and Ilori also opened bank accounts using the identities of those other persons in order to receive the loan payments from the third-party commercial lender.  CHANCY and Ilori subsequently conspired with codefendant Michael Albarella, another bank manager at Bank-1, to open a bank account using a stolen identity to launder approximately $200,000 of the expected proceeds of the loan scheme.  Albarella opened the bank account at Bank-1 using the stolen identity provided by CHANCY and Ilori, and Albarella accepted a $10,000 bribe to open the bank account.        

CHANCY and Ilori believed that the underwriter for the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme.  In reality, however, the underwriter was an undercover law enforcement officer. 

In addition to the prison term, CHANCY, 41, of Bellerose, New York, was sentenced to two years of supervised release and ordered to forfeit $10,000 in fraudulent proceeds.

On August 5, 2021, Albarella was sentenced to six months in prison and three years of supervised release by Judge Liman.  Ilori is scheduled to be sentenced on October 13, 2021.

Ms. Strauss praised the outstanding investigative work of the New York FBI’s Eurasian Organized Crime Task Force and Homeland Security Investigation’s El Dorado Task Force. 

Governor Kathy Hochul Announces #VaxtoSchool Campaign to Drive COVID-19 Vaccination Rates Among School-Aged New Yorkers Statewide

 

New Website at ny.gov/vaxtoschool for Parents and Guardians with Ready-Made Resources for Schools and Localities Hosting #VaxtoSchool Events

Dedicated Instagram Channel, @Vaccinateny, to Provide Vaccine Education for School-Aged New Yorkers and Families

#VaxtoSchool Pop-Up Sites to Open in Areas with Low COVID-19 Vaccination Rates Among 12 to 17-Year-Olds and #VaxtoSchool Buses to Provide Mobile Vaccinations

SUNY and CUNY Announce the Integration of the State's Excelsior Pass for Back-To-Campus, Proof of Vaccine Efforts

 Governor Kathy Hochul today announced the launch of the multi-faceted statewide #VaxtoSchool campaign to support increasing COVID-19 vaccination rates among school-aged New Yorkers, furthering the administration's commitment to making the health and well-being of students, teachers and families a top priority. 

As part of this campaign, the Governor announced a new, dedicated website at ny.gov/vaxtoschool with critical resources and materials for parents and guardians of school-aged New Yorkers and school communities. The new site includes information, and an FAQ for parents and guardians, as well as a multitude of ready-made signage for school leaders to support #VaxtoSchool education and operations in their local communities on the ground.

Additionally, the State has launched a new Instagram channel, @VaccinateNY, to educate school-aged New Yorkers and their families about the COVID-19 vaccine directly. The new social media page will provide approachable, interactive content through easy-to-understand vaccine information, prospective content partnerships, #VaxtoSchool social media design contests, and quick video explainers, ensuring that no stone is left unturned in our effort to provide all New Yorkers with the facts about the COVID-19 vaccine. DOH will also amplify these digital education efforts across all of their channels including Facebook, Instagram and Twitter.

"We've dedicated enormous state resources to getting New Yorkers of all eligible age groups vaccinated, but initially the state focused on the most vulnerable citizens, and now we need to focus on our youth," Governor Hochul said. "New York's young people are less likely to get seriously ill from COVID-19 but they can still spread the virus, and we need them to take it seriously. The new, innovative #VaxtoSchool social media campaign will help us get the word out to New York's young people about the vital importance of getting vaccinated to keep friends, families and communities safe."

As part of this effort, the Governor also announced that new #VaxtoSchool pop-up COVID-19 vaccination sites will be open in areas where zip code data shows the vaccination rate for 12 to 17-year-olds is lower than the statewide average. A community-based medical professional will be available at each site to answer any questions parents and guardians of school-aged New Yorkers may have. Alongside the new sites, #VaxtoSchool buses—mobile vaccination efforts—are being launched in convenient, school-centric areas statewide, such as public recreational spaces like basketball courts and parks. This will help to make the vaccine available and accessible to school-aged New Yorkers and their families.

New pop-up vaccination sites for 12 to 17-year-olds will be located at the below addresses. More locations will be announced.  

Mosholu Montefiore Community Center 

3450 Dekalb Avenue

Bronx, NY 10467

Open: Friday, September 10, 10 a.m. - 4 p.m. (1st Shot POD)

Friday, October 1, 10 a.m. - 4 p.m. (2nd Shot POD)

Variety Boys & Girls Club of Queens

21-12 30th Road

Astoria, NY 11102

Open: Saturday, September 18, 10 a.m. - 4 p.m.  (1st Shot POD)

Monday, October 4, 10 a.m. - 4 p.m. (2nd Shot POD)

The State is also working with New York colleges and universities to support their back-to-campus efforts, including the integration of the State's Excelsior Pass at SUNY and CUNY campuses statewide so they have a secure, verifiable means of accepting and tracking proof of vaccination and/or negative test results, as applicable, for students, teachers and campus staff. Interested New Yorkers can retrieve their Excelsior Pass or Excelsior Pass Plus today by visiting epass.ny.gov.

Attorney General James Fights Discrimination Against Residents of Puerto Rico and Other U.S. Territories

 

Coalition of 18 AGs Argue that Americans Living in U.S. Territories Should Not Be Excluded from Nationwide Federal Aid Programs

 New York Attorney General Letitia James joined a coalition of 18 attorneys general in urging the U.S. Supreme Court to reject the exclusion of Americans living in Puerto Rico and other U.S. territories from nationwide federal aid programs. In a brief filed in United States v. Vaello-Madero, a case concerning whether it is constitutional to deny Supplemental Security Income (SSI) benefits to residents of Puerto Rico, the attorneys general urge the Supreme Court to carefully scrutinize Congress’s reasoning for discriminating against the territories. The coalition argues that Congress must have more than a good reason to discriminate, and that a similar standard should apply to treatment of the territories. The brief also highlights the racist roots of discrimination against residents of U.S. territories and points out that by excluding territories from certain nationwide aid programs like SSI, Congress withholds assistance from areas in which it is arguably most needed.  

“Puerto Ricans are Americans, full stop,” said Attorney General James. “Denying aid to Puerto Ricans and other Americans is inhumane, illegal, and perpetuates racist policies. We must do all we can to help all Americans, especially those who need it most.”

Congress enacted the SSI program to provide low-income Americans who are elderly, blind, or disabled with monthly financial assistance. However, only residents of the 50 states, the District of Columbia, and the Commonwealth of the Northern Mariana Islands are eligible for this program under federal law. Americans living in Puerto Rico, Guam, the U.S. Virgin Islands, and American Samoa are not eligible for this assistance.

In their amicus brief, the attorneys general urge the Supreme Court to treat discrimination against U.S. territories by Congress with suspicion because:

• Congress should have more than a good reason to treat one region of the country differently than another: The Supreme Court has made it clear that to treat states differently, Congress must demonstrate that the differential treatment is necessary to address a specific problem. The coalition argues that over the past century, the territories have become more tightly woven into our national fabric, and that a similar level of scrutiny should be applied to discrimination against the territories.

• The differential treatment of U.S. territories is rooted in racism: Congress’s ability to discriminate against territories like Puerto Rico relies on the Insular Cases, a series of Supreme Court decisions from the early 1900s about the status of the territories acquired from Spain. These cases upheld the power of Congress to treat the new territories, which were formerly Spanish colonies, differently, and were based on racial biases and now-discredited theories of colonial governance. For example, in one of these cases, the Court explained that it was neither unreasonable nor unconstitutional for Congress to deprive territory residents of the right to trial by jury and described the territories as “peopled by savages.” The attorneys general argue that this troubling precedent should not be perpetuated by rubber stamping Congress’s discrimination against the nearly 3.8 million residents of U.S. territories.
  
  
• Excluding territories from anti-poverty programs harms some of the neediest Americans: The territories suffer disproportionately high levels of poverty and would greatly benefit from participating in federal aid programs. The national poverty rate hovers around 10.5 percent, and the neediest states — Louisiana and Mississippi — have poverty rates of around 19 percent. By contrast, poverty rates in the territories range from 22.6 percent in Guam to 56 percent in American Samoa. Congress’s exclusion of the territories from certain nationwide aid programs like SSI withholds benefits where they are arguably most needed.
  
  
• Congress irrationally includes some territories in benefits programs and excludes others: Multiple federal aid programs operate in some territories but not in others. For example, the Northern Mariana Islands is the only territory in which residents can receive SSI, but it is also the only territory excluded from Temporary Assistance for Needy Families, which provides cash assistance to low-income families with children. The Supplemental Nutrition Assistance Program (or food stamp program) operates in Guam and the U.S. Virgin Islands, but not in Puerto Rico, American Samoa, or the Northern Mariana Islands. There is no discernable pattern to Congressional decisions to extend programs to one territory but not another, and this haphazard discrimination generates unnecessary burdens for states and harms residents of the territories.

Joining Attorney General James and in filing today’s amicus brief are the attorneys general of Connecticut, Delaware, the District of Columbia, Guam, Hawaii, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, the Northern Mariana Islands, Oregon, Pennsylvania, Rhode Island, Vermont, and Virginia.

MAYOR DE BLASIO APPOINTS PETER HATCH AS COMMISSIONER OF THE DEPARTMENT OF CONSUMER AND WORKER PROTECTION

 

 Mayor Bill de Blasio today appointed Peter Hatch as Commissioner of the Department of Consumer and Worker Protection (DCWP), the largest municipal consumer protection agency in the country. Mr. Hatch, currently the City’s COVID-19 Public-Private Partnership Czar, is an experienced leader with a long record of public service dedicated to improving the lives of working families. As Commissioner, he will focus on ensuring a just and equitable recovery for all New Yorkers.

 

“Peter Hatch is a truly progressive government leader, policymaker, and lawyer who delivers for New Yorkers in times of crisis," said Mayor Bill de Blasio. “From delivering more than a million meals to essential workers to providing tens of millions of dollars in emergency financial assistance to families in need, Peter was critical to responding to the pandemic and getting relief to New Yorkers. I have full confidence that he will supercharge DCWP's work combatting inequality and ensuring that New York's most economically vulnerable recover from the pandemic. I also want to thank Acting Commissioner Sandra Abeles for her partnership during these last months.”

“Peter has fought on behalf of working families his entire career, most recently ensuring that our pandemic response was equitable and included all New Yorkers. His experience and passion make him the right leader for the Department of Consumer and Worker Protection, especially in this critical moment for our comeback. I look forward to continue working together to build stronger and more just New York City,” said Deputy Mayor for Strategic Policy Initiatives J. Phillip Thompson.

“I am excited to join DCWP’s stellar team and lead the City’s multi-agency campaign to ensure eligible families claim the Child Tax Credit, enforce our Paid Sick Leave law to boost vaccination rates among working New Yorkers, and protect consumers from COVID-related price gouging and other predatory practices. Together with leaders across New York City we will build a recovery that works for all of us,” said Department of Consumer and Worker Protection Commissioner Peter Hatch. “It has been the privilege of my professional life to serve my fellow New Yorkers from City Hall, and it will be an honor to continue serving them as Commissioner of the Department of Consumer and Worker Protection.”

 

About Peter Hatch:

 

In March of 2020, Mr. Hatch was named the COVID-19 Public-Private Partnership Czar as part of the Mayor’s new senior leadership team combatting the pandemic. In that role he fueled the City’s response to the pandemic with fast, flexible resources by raising more than $100 million in cash and in-kind contributions to fund and launch successful efforts to obtain and distribute personal protective equipment, feed essential workers, and provide emergency financial assistance to the most vulnerable New Yorkers including cash, rental, and burial assistance for New Yorkers originally ineligible for federal and state relief, short-term payroll support for 100 local restaurants committed to paying the full minimum wage and providing free meals to hard-hit communities, and innovative unconditional cash transfer programs including for low-income families in City quarantine hotels and the nation’s first direct cash transfer pilot for runaway and homeless youth.

 

Prior to working on the City's response to COVID-19, Mr. Hatch served four years as the Chief of Staff to the Office of the Deputy Mayor for Health and Human Services, where he oversaw the functions of 13 agencies and Mayoral Offices, including the Human Resource Administration and Department of Health and Mental Hygiene. In that role, Mr. Hatch helped craft and launch NYC Care, the nation's most comprehensive guaranteed health care access plan for uninsured New Yorkers. Concurrently in 2019, Mr. Hatch served as Senior Advisor to the Mayor on Street and Subway Homelessness, leading the Mayor’s 12 agency task force responsible for the development and implementation of The Journey Home, the first-in-the-nation action plan to end long-term street homelessness. 

In the Mayor’s first term, Mr. Hatch served as Senior Advisor to the First Deputy Mayor. He personally oversaw agencies including the Fire Department and Parks Department, playing a leading role in the review to strengthen 911 operations, the launch of innovative EMS initiatives, the successful effort to end chronic veteran homelessness, and the implementation of the Mayor’s parks equity agenda. He also Chaired the Franchise and Concession Review Committee, the Banking Commission, and the Community Investment Advisory Board.

Mr. Hatch received a B.A. in the history of science from Columbia College, a master’s degree in public policy from the Harvard Kennedy School, and a J.D. from Fordham University. He practiced employment, labor, and education law at Schulte Roth & Zabel LLP and co-founded BeneStream, a mission-driven start up to close the “unclaimed” benefits gap for union, gig, and low-wage workers, before returning to public service. He is a native New Yorker and lives in Manhattan with his wife and their two daughters.

 

Leader Of Fake Cryptocurrency Investment Scheme Pleads Guilty To Fraud

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that MICHAEL ACKERMAN, who orchestrated a multimillion-dollar cryptocurrency investment scheme, pled guilty to wire fraud today before United States Chief District Judge Laura Taylor Swain.  ACKERMAN admitted to causing victim losses of more than $30 million.

U.S. Attorney Audrey Strauss said: “As he admitted today, Michael Ackerman raised millions of dollars in investments for his fake cryptocurrency scheme by falsely touting monthly returns of over 15 percent, falsifying documents to con investors into thinking his fund had a balance of over $315 million, and spending millions in investor funds on himself.  Now Ackerman awaits sentencing for his crime.”

According to the Indictment and the underlying complaint filed in this case, as well as prior court filings and recent court proceedings:

In or about 2017, MICHAEL ACKERMAN and others started a purported cryptocurrency “investment” fund (the “Fund”) and recruited hundreds of individual investors into the Fund.  The Fund was an investment club that allowed its members to contribute U.S. dollars, which the investors were told would then be used to invest and trade in Bitcoin and other cryptocurrencies.  ACKERMAN was held out as the Fund’s chief trading officer and personally controlled the Fund’s primary trading account on an online cryptocurrency exchange.  Based on figures provided by ACKERMAN, the Fund claimed that its proprietary trading algorithm was earning approximately 15 percent in profit for investors each month.

By December 2019, ACKERMAN claimed that the Fund investment pool – which consisted of approximately $37 million in original investor contributions – had grown in value to approximately $315 million.  ACKERMAN’s claims about the performance of the Fund were communicated to existing Fund investors as well as prospective investors, some of whom were induced to invest in the Fund in the hopes of enjoying high rates of return.

The rates of return that ACKERMAN reported on the Fund investments, and its overall Fund balance, were false.  In reality, the primary trading account used by ACKERMAN had an account balance that never exceeded approximately $5 million.  To support his false claim that the Fund’s investments were earning 15 percent in monthly profits and had grown to approximately $315 million, ACKERMAN doctored numerous account screenshots that he knew were being used to communicate with Fund investors.

Instead of investing and trading on behalf of the Fund, ACKERMAN stole at least $9 million in investor contributions and used them to bankroll a lavish lifestyle that included his purchase of multiple pieces of real estate, hundreds of thousands of dollars of Tiffany jewelry, vehicles, travel, and personal security services.

ACKERMAN, 52, of Sheffield Lake, Ohio, pled guilty today to one count of wire fraud, which carries a maximum sentence of 20 years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Under the terms of his plea, ACKERMAN agreed to make restitution of at least $30,667,738.79.  ACKERMAN also agreed to forfeiture of $36,268,515, including the millions of dollars in cash, real estate, and jewelry that were fraudulently obtained from victims or bought with victim funds.

ACKERMAN is scheduled to be sentenced by Judge Swain on January 5, 2022, at 2:00 p.m.       

Ms. Strauss praised the outstanding work of special agents from Homeland Security Investigations’ El Dorado Task Force and the Federal Bureau of Investigation in Tampa, and thanked the attorneys and investigators at the Commodity Futures Trading Commission and the Securities and Exchange Commission whose expertise and diligence were integral to the development of this investigation and today’s guilty plea.

Governor Hochul Cautions New Yorkers of Potential Weather Impacts in New York City, Hudson Valley and Capital Region

Thunderstorms and Heavy Downpours Possible with Flash Flood Watch in Effect for Orange, Rockland and Sullivan Counties

DEC and State Parks Preparing for Potential Shoreline Impacts As Significant Swells from Hurricane Larry Also Expected to Reach East Coast  

 Governor Kathy Hochul today cautioned New Yorkers of potential weather impacts as thunderstorms capable of producing heavy rain are expected in New York City, Hudson Valley and Capital Region areas of the state later this afternoon and continuing through this evening. The main threats from these storms are damaging wind gusts and additional rain in areas that recently experienced flooding, especially urban, low-lying, and poor drainage areas. Brief, isolated tornadoes may also occur as the weather system moves west to east across the state.

Governor Hochul has also directed state agencies to monitor and prepare for coastal impacts as Hurricane Larry, currently spinning east of Bermuda, is expected to cause significant swells along the East Coast of the United States, which could impact New York's shorelines later this week.

"We witnessed the painful devastation left by the remnants of Hurricane Ida and, out of an abundance of caution, we are now keeping a close eye on this week's storms and any potential impacts they may cause across New York," Governor Hochul said. "I am urging New Yorkers to prepare for any inclement weather that may head our way and monitor local forecasts."

Flash flood watches have been issued for Orange, Rockland and Sullivan counties from this afternoon through late tonight. Slow moving thunderstorms could move across portions of the southern Catskills today and have the potential to produce heavy rainfall.  Some locations could see 1 to 2 inches of rain in a short period of time. The combination of saturated ground conditions and heavy rain could lead to rapid runoff and flash flooding. For a complete listing of weather advisories, watches, and warnings in your area, visit the National Weather Service website.

According to the National Hurricane Center, Larry is not expected to have any direct impacts to New York, though given the size of the hurricane, swells will likely cause life-threatening surf and rip current conditions on the east coast. Governor Hochul has directed several state agencies to monitor any coastal impacts.

Agency Preparations

Division of Homeland Security and Emergency Services

The New York State Division of Homeland Security and Emergency Services' Emergency Operations Center remains activated for the response to the devastating remnants of Hurricane Ida and is closely monitoring weather conditions across the state. The Division will coordinate any necessary response operations and remain in contact with localities throughout the week.

Department of Environmental Conservation 

The New York State Department of Environmental Conservation (DEC) is closely tracking the storm for potential impacts on New York's coastline and will conduct post-storm coastal inspections to assess erosion and possible impacts to projects currently underway. In addition, based on the storm's path, DEC will determine the need for closing certain areas to shellfish harvesting. Additional preparations will take place if the path of the storm is expected to change.

Office of Parks, Recreation and Historic Preservation 

State Park lifeguards regularly monitor beaches for hazardous conditions. Swimming is now prohibited due to rough surf at Jones Beach, Robert Moses, and Hither Hills State Parks. In addition, State Parks staff will be fortifying a protective sand 'berm' from the East Bathhouse to the West Bathhouse through the Central Mall, at Jones Beach State Park, as well as preparing sandbags if needed at Jones Beach, Robert Moses and Hither Hills State Parks.

For more information on Hurricane Larry's path and forecasted impacts, visit the National Hurricane Center website here.

Metropolitan Transportation Authority

The MTA is taking all necessary precautions to protect its transportation network against heavy rainfall while continuing to provide safe service for customers. With the storm forecast to affect the lower Hudson Valley, the MTA is focusing attention on Metro-North Railroad and working closely together as always with its other agencies to monitor conditions and coordinate with local partners to develop precautionary plans should service be impacted.

On the subway, maintenance personnel will inspect track drains in flood-prone areas, and check and stage track pumps and storm boxes. The MTA encourages customers to take extra precautions when traveling. This includes allowing for extra travel time, taking extra caution when walking on platforms and stairs, watching for slippery conditions and being mindful for overhead foliage or wires.

Port Authority of New York & New Jersey

The Port Authority is monitoring weather conditions across all its facilities. The agency will be issuing regular travel alerts and updates as necessary. Travelers using Port Authority airports are asked to call ahead to their carriers for flight status in the event of severe weather conditions. For the latest information about all Port Authority facilities, please check social media, sign up for PA alerts or download one of the PA mobile apps.

Severe Weather Safety Tips

Prepare for severe weather:

• Know the county in which you live and the names of nearby cities. Severe weather warnings are issued on a county basis.
• Learn the safest route from your home or business to high, safe ground should you have to leave in a hurry.
• Develop and practice a 'family escape' plan and identify a meeting place if family members become separated.
• Make an itemized list of all valuables including furnishings, clothing and other personal property. Keep the list in a safe place.
• Stockpile emergency supplies of canned food, medicine and first aid supplies and drinking water. Store drinking water in clean, closed containers
• Plan what to do with your pets.
• Have a portable radio, flashlights, extra batteries and emergency cooking equipment available.
• Keep your automobile fueled. If electric power is cut off, gasoline stations may not be able to pump fuel for several days. Have a small disaster supply kit in the trunk of your car.

Have disaster supplies on hand, including: 

• Flashlight and extra batteries
• Battery-operated radio and extra batteries
• First aid kit and manual
• Emergency food and water
• Non-electric can opener
• Essential medicines
• Checkbook, cash, credit cards, ATM cards

For more safety tips, visit the New York State Division of Homeland Security and Emergency Services Safety Tips web page at www.dhses.ny.gov/oem/safety-info/index.cfm.

Attorney General James Announces Conviction of Former Fugitive Dentist for Medicaid Fraud

 

Dawer Nadi Receives 4 and 1/3 to 10 Years Imprisonment Sentence and Ordered to Pay More Than $27,000 in Restitution After Second Conviction for Fraud and Related Crimes

 New York Attorney General Letitia James today announced the conviction and sentencing of Dawer Nadi, 63, of Long Island, for defrauding New York state by submitting false Medicaid claims for dental services after his dental license was revoked. Nadi was convicted last month of grand larceny, unauthorized practice of dentistry, and several counts of filing false Medicaid claims, and sentenced today to 4 and 1/3 to 10 years imprisonment and ordered to pay $27,768.42 in restitution. Nadi’s New York dental license was revoked in January 2011, following a previous conviction from the Office of the Attorney General (OAG) in March 2005 for fraudulently overbilling Medicaid for dental services. Today’s sentencing concludes an investigation started by the OAG's Medicaid Fraud Control Unit (MFCU) in 2011 upon learning that Nadi continued to practice dentistry notwithstanding the revocation of his license. He was arrested last year after being a fugitive since 2012.

“Dawer Nadi’s illegal practices put the health and safety of New Yorkers at risk, while cheating our state in the process,” said Attorney General James. “For years, Nadi used New York’s Medicaid program as his personal piggybank and provided dental services without a medical license. He attempted to evade accountability, but today, the justice system has finally caught up with him. On my watch, no one will be allowed to line his own pockets with public funds, and we will fight tooth and nail for the wellbeing of all New Yorkers.”

Following his first conviction in 2005, Nadi was barred from participating as a health care provider in the Medicaid program — a sanction known as “exclusion” — and was prohibited from receiving payment for treating Medicaid patients. At the time, Nadi agreed to pay the state restitution totaling $400,000 for the false claims he filed, but that debt remains unpaid. In January 2011, based on the 2005 conviction, Nadi’s license to practice dentistry in New York state was revoked and he was prohibited from practicing dentistry altogether.

In early 2011, OAG detectives learned that Nadi was still practicing dentistry on Long Island and treating Medicaid patients. A subsequent investigation led to Nadi’s arrest later that year and his indictment in 2012. After his arrest, Nadi fled to Afghanistan where he set up a dental practice. While an arrest warrant was issued for Nadi, the United States does not have an extradition treaty with Afghanistan and Nadi remained a fugitive until last year. In March 2020, as the COVID-19 pandemic spread worldwide, Nadi left Afghanistan and attempted to re-enter the United States. He was arrested on March 21, 2020 upon his arrival at JFK International Airport, and thereafter arraigned on the 2012 indictment.

Today, before the Honorable John B. Collins in Suffolk County Supreme Court, Nadi was sentenced on his conviction after a jury trial of: Grand Larceny in the Third Degree, a class D felony; Unauthorized Practice of a Profession, a class E felony; and eight counts of Offering a False Instrument for Filing in the First Degree, all class E felonies. The court imposed a sentence of 4 and 1/3 to 10 years imprisonment and ordered the defendant to pay $27,768.42 in restitution.

NYC PUBLIC ADVOCATE CALLS FOR FEDERAL FUNDS TO HELP ADDRESS BASEMENT APARTMENTS AFTER MEETING WITH FLOOD VICTIMS

 

Public Advocate Jumaane D. Williams released the following statement after meeting with victims of Hurricane Ida flooding in Queens today and ahead of an appearance by President Biden at the site of the disaster.

"As I spoke to New Yorkers again today who were devastated by last week's flooding - still grieving, still reeling from the scope of the damage - it was clear that while this disaster was natural, the reasons for much of the devastation it wrought were systemic, exacerbated by a failure to adapt our infrastructure or policies to the realities of both the climate crisis and the housing crisis.  

"So much of the loss our city saw last week, losses that many New Yorkers will feel for months and years to come, was suffered in basement apartments. Basement units are a critical component of meeting the need for housing stock in our city, but it is just as critical that government acts quickly to legalize, regulate, and protect these units and the countless tenants who call them home - including with proper warnings in times of crisis. The Mayor's announcement that he will not further penalize homeowners and their basement tenants with fines at this time is an essential preliminary step, and I appreciate his receptiveness to that need.  

"I am grateful that President Biden has issued a major disaster declaration and is providing the aid that designation entails. Right now, the focus is rightly on recovery - but in the immediate future, we need to direct attention and resources toward prevention, toward upgrading our infrastructure and protecting our neighbors and our homes. With the federal government allocating additional resources to our city and state in disaster response, it is crucial that funds be distributed to homeowners in order to legalize their basement units while maintaining lower rents for tenants who have already lost so much."