DEC’S ‘I FISH NY’ TO HOST ANNUAL FALL FAMILY FISHING FESTIVAL OCT. 16 AT HEMPSTEAD LAKE STATE PARK

Free Fishing, Rods and Bait, Live Animal Show, Contests, and Activities for Children at Annual Long Island Event

 The New York State Department of Environmental Conservation’s (DEC) I FISH NY Program and Freshwater Fisheries Unit and the State Office of Parks, Recreation and Historic Preservation (State Parks) today announced the annual Fall Family Fishing and Children's Festival at Hempstead Lake State Park will be held Saturday, Oct. 16, from 10 a.m. to 4 p.m. 

"The Fall Family Fishing and Children's Festival is one of our most popular events because it’s a great way to enjoy the autumn weather and learn about the fun of freshwater fishing," DEC Acting Regional Director Merlange Genece said. “The festival combines fishing with a variety of children's activities, and provides a rewarding family experience.” 

“Hempstead Lake State Park is proud to host the annual Fall Family Fishing Festival,” said State Parks Long Island Regional Director George Gorman. “With an abundance of activities to explore throughout the day, the festival provides a great introduction for both children and families to learn and experience all that fishing has to offer.” 

Festival activities include fishing with free loaner rods and bait, fishing instruction, casting instruction, and fish-cleaning services. In addition to fishing opportunities, there will be a children’s casting for pumpkins contest, live animal show, magician, pumpkin decorating, fish printing, and children’s slide, in addition to DEC and State Parks displays.  

The fishing license requirement for all anglers over the age of 16 is suspended for this festival, and admission and parking are free. 

The children’s casting for pumpkins contest will be held for as long as pumpkins last, during which kids can “catch” a pumpkin and "hook" a prize. Casting contest prizes are provided by I FISH NY and State Parks. 

Prior to the festival, State Parks will stock South and McDonald ponds in Hempstead Lake State Park with brook and rainbow trout. DEC also stocks brown trout in several other waterbodies in Nassau and Suffolk counties, including Upper Twin Pond, Oyster Bay Mill Pond, Massapequa Reservoir, and 12 additional Suffolk County lakes. These stockings will occur by Oct. 30, and provide excellent prospects for fall fishing. A second DEC stocking will occur in early November. 

For more information about the festival, call DEC’s I FISH NY Program at (631) 444-0283 or Hempstead Lake State Park (516) 766-1029 for event status. There is no rain date for this event. 

For more information about the fall trout stocking program in Nassau and Suffolk counties, call the DEC Bureau of Fisheries at (631) 444-0280. General information on freshwater fishing on Long Island can be found at: http://www.dec.ny.gov/outdoor/7951.html and more info at http://www.dec.ny.gov/outdoor/fishing.html.  

What: 2021 Fall Family Fishing and Children’s Festival

Where: McDonald and South Ponds

Hempstead Lake State Park

West Hempstead, NY 11552

When: Saturday, Oct. 16, 2021

Time: 10 a.m. – 4 p.m.

Who: New York State Department of Environmental Conservation (DEC), New York State Office of Parks, Recreation and Historic Preservation (State Parks)

Details: Come out and enjoy a day of fishing with the entire family! Headlining the event is a children’s “Casting for Pumpkins” contest. In addition, more than 1,000 trout will be stocked prior to the event.

Cost: None - Free Event Admission, and Free Parking

Sponsors: DEC’s I FISH NY program and State Parks

Contact: DEC’s I FISH NY at (631) 444-0283 or ifishny@dec.ny.gov

Directions: Take exit 18 off Southern State Parkway. Follow the drive into the Hempstead Lake Park. Make your second right at the ticket booth. Make an immediate left after the booth, for Field #3. Follow to the end of the parking lot. Walk along the paved path to McDonald and South ponds. 

 

94 Days and Counting

 

I'm getting ready to root for the Brooklyn Nets as basketball season will begin before I leave office. I will have plenty of times to go to afternoon games, that is until I run for governor. This morning I was asked if New York needs another white governor by a pesky reporter. My answer was to rattle off a lot of problems in the city and state that I want to continue to work on to fix, and I will be involved in the political scene.

We have created the Public Health Corp to align community members to understand better what is going on in their communities. It is for COVID vaccinations and will change as other issues come about. The city will come out of this Pandemic, and the city come out better. 

Long Island Man Sentenced to 13 Years’ Imprisonment for Drug Trafficking and Firearms Offenses

 

Defendant Also Admitted to Distributing Fentanyl That Caused the Death of a Glen Cove Man in 2017

 Ira Hall was sentenced by United States District Judge Joanna Seybert to 13 years’ imprisonment for distributing cocaine and the unlawful use of a firearm in furtherance of drug trafficking in August 2017.  When Hall pleaded guilty in June 2021, he also admitted to distributing fentanyl that caused the death of a 27-year-old resident of Glen Cove, New York in May 2017. 

Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and William Whitton, Chief, Glen Cove Police Department, announced the sentence.

“Today’s sentence ensures that the defendant will serve a lengthy prison term for selling dangerous drugs while carrying a firearm, and also for callously causing the fentanyl overdose death of a resident of this district,” stated Acting U.S. Attorney Kasulis.  “This Office, together with our federal and local partners, will continue to prosecute and hold accountable those who contribute to the opioid epidemic and overdose deaths in our communities.”  Ms. Kasulis thanked the Drug Enforcement Administration for its assistance on the case.

“This investigation and arrest is an example of the Glen Cove Police Department’s continuing commitment to combat the sale of illegal drugs and to identify and arrest those responsible for overdose deaths occurring in our community,” stated Glen Cove Chief Whitton.     

On May 30, 2017, Hall sold a quantity of fentanyl to a coconspirator who then provided the fentanyl to the victim, who suffered a fatal overdose.   In August 2017, while investigating the overdose death, detectives of the Glen Cove Police Department arrested Hall after he sold cocaine in a Taco Bell parking lot while carrying a loaded .38 caliber Smith & Wesson revolver.  A search warrant of Hall’s residence the following day led to the seizure of additional rounds of .38 caliber ammunition.

“R. Kelly” Convicted of All Counts by a Federal Jury in Brooklyn

 

Kelly Found Guilty of Racketeering and Multiple Predicate Acts, Including Illegal Sex with Minors, Sexual Exploitation of Minors, Bribery, Coercion and Forced Labor

 Robert Sylvester Kelly, the R&B singer also known as “R. Kelly,” was convicted today by a federal jury in Brooklyn of all nine counts of a superseding indictment charging him with racketeering predicated on criminal conduct including sexual exploitation of children, forced labor and Mann Act violations involving the coercion and transportation of women and girls in interstate commerce to engage in illegal sexual activity. The verdict followed six weeks of trial before United States District Judge Ann M. Donnelly. 

Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the verdict.

“Today’s guilty verdict forever brands R. Kelly as a predator, who used his fame and fortune to prey on the young, the vulnerable, and the voiceless for his own sexual gratification,” stated Acting U.S. Attorney Kasulis.  “A predator who used his inner circle to ensnare underage teenage girls, and young women and men, for decades, in a sordid web of sex abuse, exploitation and degradation.   To the victims in this case, your voices were heard, and justice was finally served. We hope that today’s verdict brings some measure of comfort and closure to the victims.”  Ms. Kasulis also thanked the U.S. Attorney’s Office for the Northern District of Illinois and the Cook County State’s Attorney’s Office for their assistance with the case.

“Robert Kelly is a serial sexual predator who used his fame and musical tours as his personal hunting grounds to find his victims,” stated HSI Special Agent-in-Charge Fitzhugh.  “Mr. Kelly ran a criminal enterprise whose mission was to serve his sexual gratification by setting up a complex organization of enablers and handlers.  When his victims tried to escape, Mr. Kelly and his accomplices silenced them through bribery, intimidation, and physical violence.  The brave survivors who overcame Mr. Kelly’s abuse deserve our upmost respect for telling their stories and bringing an end to his 30-year reign of terror over the young and vulnerable.”

As proven at trial, for nearly three decades, Kelly was the leader of a criminal enterprise (“the Enterprise”) consisting of himself and an entourage of individuals who served as managers, bodyguards, accountants, drivers, personal assistants and runners for the defendant.  As the leader of the Enterprise, Kelly used his fame to recruit women and girls to engage in illegal sexual activity with him.  Kelly identified these girls and women at concerts, and then directed members of the Enterprise to escort them backstage following his musical performances.  Kelly exchanged contact information with girls and women so that he and other members of the Enterprise could arrange travel and lodging for them to visit Kelly and engage in the charged illegal sexual conduct.  

The evidence at trial included the testimony 45 government witnesses, including more than 10 victims, five of whom are named in the superseding indictment, testimony from employees of the defendant, text messages, video and audio recordings, photographs, phone and travel records, DNA evidence and expert witnesses. 

Kelly issued rules that many of his sexual partners were required to follow, including that the women and girls were to call him “Daddy”; they were not permitted to leave their rooms to eat or visit the bathroom without receiving his permission; they were required to wear baggy clothing when not accompanying Kelly to an event; and they were directed to keep their heads down and not look at or speak to other men.  Kelly also isolated the women and girls from their friends and family and made them dependent on him for their financial well-being.  He required the victims to engage in sex with him and others, and recorded many of the sexual encounters.

Racketeering Act One – Bribery

Kelly bribed a state employee to create an identification card for Jane Doe #1, then 15 years old, so that Kelly could marry Jane Doe #1 because he believed she was pregnant and therefore the marriage could keep him out of jail. 

Racketeering Acts Two, Seven and Ten – Sexual Exploitation of a Child – Jane Doe #2, Jane Doe #4 and Jane Doe #5

Kelly coerced Jane Doe #2, Jane Doe #4 and Jane Doe #5 to engage in sexually explicit conduct for the purpose of producing video recordings.  Over the course of decades, he made these recordings, and other recordings of sexually explicit conduct, using VHS video cameras, Canon camcorders, iPhones and iPads.

Racketeering Acts Six, Eleven and Thirteen – Forced Labor – Jane Doe #4, Jane Doe #5 and Jane Doe #6

Kelly used the threat of physical harm and physical restraint to ensure that his victims, including Jane Doe #4, Jane Doe #5 and Jane Doe #6, performed sexually at his command.  As to Jane Doe #4, he slapped her, choked her and spit on her, before demanding she give him oral sex.  As to Jane Doe #5, over a period of years, he spanked her, viciously assaulted her, confined her for periods of days and otherwise manipulated her, to ensure that she would perform for him sexually, including with other women and a man.  As to Jane Doe #6, he forced her to give him oral sex.  When he did that, there was a gun within Kelly’s reach.

Racketeering Acts Five and Nine – Mann Act Violations – Jane Doe #4 and Jane Doe #5

Between May 2009 and January 2010, Kelly regularly spoke with Jane Doe #4 over the telephone to arrange for Jane Doe #4 to come to his residence in Olympia Fields for the purpose of illegal sexual activity, which was illegal because Jane Doe #4 was too young to consent to sex in Illinois.  Similarly, between September 2015 and October 2015, Kelly transported Jane Doe #5, who was then 17 years old, from New York City to Oakland, California for the purpose of illegal sexual activity, as she was too young to consent to sex in California.

Racketeering Acts Eight, Thirteen and Fourteen – Mann Act Violations – Jane Doe #5 and Jane Doe #6

In April 2015, Kelly arranged for Jane Doe #5 to fly from her home in Orlando, Florida, to Los Angeles, California, for the purpose of illegal sexual activity, which was illegal because Kelly knew he had an incurable sexually transmitted disease (“STD”) and did not inform Jane Doe #5 about the STD prior to engaging in sexual intercourse with her.  In May of 2017 and again in February of 2018, Kelly arranged for Jane Doe #6 to fly from her home in San Antonio, Texas, to La Guardia Airport in Queens, New York, for the purpose of illegal sexual activity, which again was illegal because Kelly failed to disclose that he had an incurable STD and obtain Jane Doe #6’s consent to engage in sexual intercourse under those circumstances.

When sentenced, Kelly faces a mandatory minimum sentence of 10 years’ imprisonment and up to life in prison.

Nine Contractors Indicted for Allegedly Bribing Superintendents at New York City Housing Authority Developments for “Micro Purchase” Contracts

New York City Department of Investigation began Undercover Probe after NYCHA Employees Reported Allegedly Being Offered Bribes and Unlawful Gratuities 

 Brooklyn District Attorney Eric Gonzalez, together with New York City Department of Investigation Commissioner Margaret Garnett, today announced that nine contractors have been variously charged in multiple indictments with bribery, giving unlawful gratuities, offering a false instrument for filing and conspiracy for allegedly offering NYCHA employees bribes in exchange for “micro purchase” contracts. 

 District Attorney Gonzalez said, “These defendants allegedly tried to seek favors from NYCHA superintendents by offering them bribes, corrupting a process meant to ensure contracts are fairly awarded. I commend the employees who came forward to report the bribe offers, kicking off this investigation. My Office will continue to work closely with DOI to make sure that bribery schemes and other forms of corruption are investigated and prosecuted.”

 Commissioner Garnett said, “Bribery is one of the oldest and most blatant forms of public corruption. But, as this investigation shows, corruption cannot take root when honest employees step forward and report it. DOI commends the NYCHA employees who embraced the affirmative obligation that all employees of the City of New York have to report wrongdoing to DOI. Their willingness to report helped reveal these vendors’ charged conduct, which placed taxpayer-funded business up for sale to the highest dishonest bidder. This investigation is a prime example of why combatting corruption is so important – it supports equity in this City and defends government’s ability to do its job honestly and place the public interest above personal advantage. DOI thanks the Brooklyn District Attorney’s Office for their partnership on this important investigation and also thanks NYCHA for its cooperation.” 

 The District Attorney identified the defendants as Lakhwinder Kumar, 47, and Kumar Construction Corp., of South Ozone Park, Queens; Charanjit Singh, 58, Satbir Singh, 71, and Fine Touch Construction, of Floral Park, Queens; Davinder Singh, 45, Nishan Singh, 56, Yuvi Development Inc., and NB Builders, of Hicksville, New York; Surinder Singh, 59, Guriqbal Singh, 28, A. Peter Luger Construction, PKG Contracting Corp. and Heera and G. Builders, of South Richmond Hill, Queens; Jaswant Banga Singh, 57, and Khushi Construction Inc., of New Hyde Park; and Bakhshish Chand, 68, and Amar Contracting, of Richmond Hill, Queens. The defendants are variously charged in multiple indictments with third-degree bribery, first-degree offering a false instrument for filing, giving unlawful gratuities and fifth-degree conspiracy. They are being arraigned today before Brooklyn Supreme Court Justice Danny Chun and released without bail.

 For larger construction projects and repairs to be performed by an outside vendor, NYCHA generally solicits multiple bids before awarding a contract. For smaller repairs involving contracts up to $10,000, NYCHA implemented the micro purchase process which does not require multiple bids. Instead, the superintendent or assistant superintendent of a housing development has the discretion to choose a vendor and request an estimate. 

 The District Attorney said that, according to the investigation, in November 2018 defendant Lakhwinder Kumar allegedly told an assistant superintendent at a NYCHA development in Brooklyn that he appreciated the jobs he received and offered him money. That employee reported the bribe offer to DOI, which then equipped him with audio and video recording devices. A month later the defendant was recorded allegedly handing that assistant superintendent $450 in exchange for a micro purchase job at the development. 

 The following year, in July 2019, in an unrelated incident, defendant Surinder Singh, allegedly handed $600 cash to the superintendent of another NYCHA development in Brooklyn. The employee tried to return the money, but Singh allegedly refused to take it. The superintendent then reported the matter to DOI. A few weeks later, he allegedly left cash in the employee’s office who again reported it to DOI, which then equipped the employee with audio and video recording devices.

 Starting in Spring 2019, DOI placed undercover investigators posing as assistant superintendents at the Red Hook Houses West and Lafayette Gardens in Clinton Hill. Over a period of many months, the undercover at Red Hook allegedly recorded a number of contractors including Charanjit Singh and Satbir Singh, who are partners; Davinder Singh and Nishan Singh, who are brothers; and another contractor, Guriqbal Singh, discussing jobs at the development on numerous occasions and handing the undercover amounts of cash ranging from $500 to $1,000 in exchange for micro purchase jobs.

 The undercover at Lafayette Gardens allegedly recorded Kumar, Charanjit Singh and another contractor also allegedly giving cash bribes to the undercover. 

 As the investigation continued, it expanded to capture recordings of Surinder Singh allegedly paying additional bribes to a NYCHA employee at a NYCHA development in Brooklyn and Jaswant Banga Singh and Bakhshish Chand allegedly giving cash bribes to an employee at a NYCHA development in Queens.

 It is alleged that between December 2018 and May 2021 the defendants paid bribes or unlawful gratuities to NYCHA employees or undercover investigators totaling about $20,000 in cash, in addition to two $500 gift cards and four bottles of Johnnie Walker scotch with a total approximate value of $115 in exchange for various jobs such as tile work, installation of tub enclosures, installation of a chain link fence, and repairing windows. 

 The case was investigated by DOI Confidential Investigator Delcine Doscher, Chief Investigators Enio Bencosme and Louis Vega, and Assistant Inspector General Robin Jacknow, under the supervision of Deputy Inspector General Gregory DeBoer, Inspector General Ralph Iannuzzi, Deputy Commissioner/Chief of Investigations Dominick Zarrella and First Deputy Commissioner Daniel Cort.

An indictment is an accusatory instrument and not proof of a defendant’s guilt.

SCHUMER ANNOUNCES $61 MILLION FOR CAPITAL DISTRICT TRANSPORTATION AUTHORITY TO EXPAND BUS RAPID TRANSIT SYSTEM

 

A Historic $61 Million For CDTA Is On Its Way; Funding Is Multi-Million Dollar Increase Over Previous Funding Levels

Federal Funding Will Be Used To Expand Rapid Transit System, Improving Service And Access For Capital Region

Schumer: Federal Funding Boost Will Keep CDTA – And Capital Region Riders – Rolling Into The Future

 After securing $51,653,331 for the Albany-Schenectady UZA in the American Rescue Plan to address the region’s public transportation needs as New York recovers from the worst of the COVID pandemic, U.S. Senate Majority Leader Charles E. Schumer today announced a historic $61 million for the Capital District Transportation Authority (CDTA) to expand its Albany Washington/Western Bus Rapid Transit project. The funding comes from the U.S. Department of Transportation’s Capital Investments Grant (CIG) Program, which funds local efforts to expand Bus Rapid Transit routes across the nation.

The Washington/Western Bus Rapid Transit line will be the third rapid transit line operated by the CDTA. Schumer helped to secure federal funding for both the Central Avenue Corridor line that connects Albany to Schenectady and the River line that connects Albany to Troy and Cohoes in previous years.

“Coming after a year and a half of hardship and isolation during the COVID pandemic, the $61 million announced today represents hope for a more connected and resilient future,” said Senator Schumer. “The CDTA keeps our community united, the wheels of the regional economy rolling, and serves as a vital lifeline for many Capital Region residents. I’m proud to deliver this historic investment into the CDTA, which will keep our transit moving and pave the way for expanded service.”

CIG funds transit capital investments, including Bus Rapid Transit (BRT), specifically through the “Small Starts” program. The Albany Washington/Western Bus Rapid Transit project would implement bus rapid transit in the Washington/Western corridor that extends from the downtown Albany Bus Terminal, through the State University of New York at Albany and the Harriman State Office Complex, to the Crossgates Mall. The project includes limited stops, 16 uniquely branded buses, transit signal priority, queue bypass lanes, real-time bus arrival information, a one-mile semi-exclusive busway across the University campus, and bus maintenance garage expansion.

Schumer is also currently working to secure implementation of the Bipartisan Infrastructure Framework into law, which would provide approximately $113.9 million for the Capital District Transportation Authority (CDTA) over the next 5 years. CDTA estimates that their annual allotment over the previous 5 years has been $21.2 million and under the bipartisan infrastructure bill that would increase to $27.1 million, roughly a 30% increase. Additionally, the bill includes over $5.6 billion for clean buses. CDTA currently has four electric buses in service, with four more on order, and an ultimate goal of 25% of their fleet.

EDITOR'S NOTE:

Senator Schumer so why is New York City cutting its bus service in a time when an increase of bus service as you say is needed? Don't you care about New York City Senator Schumer?

Governor Hochul Announces Increase in Food Benefits for Low-Income New Yorkers

 

Supplemental Nutrition Assistance Program Households to See Regular Monthly Benefit Increase of About $36 Per Person Starting in October

Boost in Benefits to Bring More Than $1.4 Billion in Additional Federal Funding to New York

 Governor Kathy Hochul today announced that all New Yorkers enrolled in the Supplemental Nutrition Assistance Program will see their level of benefits increase next month resulting from a federal cost adjustment aimed at providing low-income individuals and families better access to healthy foods. On average, households enrolled in SNAP, which is overseen in New York by the state Office of Temporary and Disability Assistance, will see their regular benefits increase by about $36 per person.

"Now more than ever, New Yorkers are seeing their money for food stretched thinner and thinner, which in turn forces them into making food choices that are cheaper, but far less nutritious," Governor Hochul said. "This long-overdue increase in benefits will give households across New York State the purchasing power to buy nutritious foods, which in turn will ultimately result in healthier outcomes." 

The 2018 Farm Bill adopted by Congress required the U.S Department of Agriculture to re-evaluate the plan used to calculate SNAP benefits. Last year, the federal agency conducted a data-driven review of this plan, which resulted in a cost adjustment -the first in more than 45 years -reflecting notable shifts in the food marketplace and consumer circumstance over time.

In New York, a family of four will see their benefits increase from a maximum allotment of $680 to $835 under the new plan. The increase will bring in roughly $1.4 billion in additional federal dollars in Federal Fiscal Year 2022. 

The new plan also adjusted upward the dollar amount of the standard deduction and utility allowances, which are factored into a household's gross monthly income to determine both eligibility and level of benefits. The gross monthly income level was also increased to reflect economic changes over time.   

In adjusting the level of SNAP benefits, the USDA evaluated current food prices nationwide, what Americans typically eat, dietary guidance, and the nutrients in food items. The agency's reevaluation concluded that the cost of a nutritious, practical, cost effective diet is 21 percent higher than the existing maximum level of food benefits for SNAP households.

Nationally, nearly nine out of 10 SNAP participants reported facing barriers to achieving a healthy diet, with the most common barrier being the cost of healthy foods. Likewise, studies have consistently shown that food benefit levels are too low to provide for a realistic, healthy diet, even with households contributing their own funds toward groceries.

Roughly 2.8 million people throughout New York State were enrolled in SNAP as of July. SNAP benefits also help to stimulate the local and state economy, according to federal estimates, with every dollar of SNAP benefits spent resulting in roughly $1.59 in economic activity.

U.S. Attorney Announces Unsealing Of Indictment Charging Six Individuals And One Corporate Entity With Tax Fraud Conspiracy, And Related Guilty Plea

 

Indictment Alleges that Defendants Conspired to Help U.S. Clients Evade Taxes on More Than $60 Million Hidden Offshore

 Audrey Strauss, the United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James C. Lee, Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging six foreign individuals and a Swiss financial services company with conspiring to defraud the IRS by helping three high-value U.S. taxpayer-clients conceal more than $60 million in income and assets held in undeclared, offshore bank accounts and to evade U.S. income taxes.  The case has been assigned to U.S. District Judge Gregory H. Woods.  One of the charged defendants was recently arrested in Spain.

Ms. Strauss, Mr. Goldberg, and Mr. Lee also announced today the unsealing of the guilty plea of Wayne Franklyn Chinn, one of the U.S. taxpayer-clients who participated in the tax fraud scheme.  The case against CHINN is assigned to U.S. District Judge Victor Marrero.  Through a related civil forfeiture action, the Government forfeited approximately $2.2 million in CHINN’s untaxed funds and repatriated these funds from Singapore to the United States.

Manhattan U.S. Attorney Audrey Strauss said: “As alleged, the individual defendants and the Swiss firm Allied Finance conspired to defraud the IRS by assisting U.S. taxpayers in avoiding their tax obligations.  They allegedly did this through an elaborate scheme that involved concealing customer assets at a Swiss private bank through nominee bank accounts in Hong Kong and elsewhere, with funds returning to the private bank in the name of a Singapore firm.  One such U.S. customer, Wayne Chinn, pled guilty to his participation in the so-called ‘Singapore Solution,’ forfeited more than $2 million to the United States, and awaits sentencing for his admitted crime.”

Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Prosecuting offshore tax evasion remains one of the Tax Division’s highest priorities.  Taxpayers contemplating hiding money abroad – and the foreign bankers, attorneys and finance professionals who design and execute strategies to assist their evasion – should know that the Tax Division and IRS have the investigative resources and expertise to unravel even the most elaborate schemes.”

IRS-CI Chief James C. Lee said: “The defendants allegedly helped their clients conceal more than $60 million in income and assets in an attempt to evade their U.S. tax responsibilities. Through the hard work of IRS-CI and the cooperation of our law enforcement partners, we were able to uncover the massive fraud allegedly being perpetrated by these individuals and hold them accountable for their actions. We are also proud to recognize the guilty plea of Mr. Wayne Chinn. His actions demonstrate complete disregard for the United States tax laws, but thanks to the commitment of our agents, we were able to unravel his scheme and bring him to justice.”

According to the allegations in the Indictment unsealed today[1]:  

From in or about 2009 to in or about 2014, Ivo Bechtiger, Bernhard Lampert, Peter Rüegg, Roderic Sage, Rolf Schnellmann, Daniel Wälchli, and Allied Finance Trust AG of Zurich, Switzerland (“ALLIED FINANCE”), the defendants, defrauded the IRS by concealing income and assets of certain U.S. taxpayer-clients with undeclared bank accounts located at Privatbank IHAG Zurich AG (“IHAG”), a Swiss private bank in Zurich, Switzerland,[2] and elsewhere.  In order to assist the U.S. taxpayer-clients, the defendants and others devised and implemented a scheme dubbed the “Singapore Solution” to fraudulently conceal the bank accounts of the U.S. taxpayer-clients, their assets, and their income from U.S. authorities.  In furtherance of the fraudulent scheme, the defendants and others conspired to transfer more than $60 million from undeclared IHAG bank accounts of three U.S. taxpayer-clients through a series of nominee bank accounts in Hong Kong and other locations before returning the funds to newly opened accounts at IHAG in the name of a Singapore-based asset-management firm.  The U.S. taxpayer-clients paid large fees to IHAG and others to help them conceal their funds and assets and evade taxes. 

On or about August 16, 2021, defendant PETER RÜEGG, 61, of Switzerland was arrested in Spain.  As alleged in the Indictment, RÜEGG was a member of IHAG’s management and a relationship manager for one of the U.S. taxpayer-clients who participated in the Singapore Solution scheme.  RÜEGG is alleged to have helped the U.S. taxpayer-client conceal approximately $50 million in undeclared assets at IHAG through the Singapore Solution. 

If convicted, the individual defendants face a maximum penalty of five years in prison, and ALLIED FINANCE faces monetary penalties.

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

Also unsealed today was the guilty plea of Wayne Franklyn Chinn, one of the U.S. taxpayer-clients who participated in the Singapore Solution scheme.  According to statements made during CHINN’s plea proceeding, and related court filings:

From at least in or about 2001 through at least in or about January 2019, CHINN concealed approximately $5 million in undisclosed and untaxed income for tax years 2001 through 2018.  During this period, CHINN held offshore accounts at IHAG in nominee names.  Beginning in 2010, CHINN and others transferred funds from these offshore accounts at IHAG through nominee accounts outside of Switzerland, including in Hong Kong, before returning them to newly opened accounts at IHAG held in the name of a Singapore-based trust company purportedly on behalf of two foundations created by a co-conspirator.  They did so to continue to conceal CHINN’s income and assets from U.S. authorities.  CHINN subsequently transferred the funds out of Switzerland to undeclared accounts in Singapore.  CHINN did not file any tax returns or disclose his offshore bank accounts during the years at issue.  

CHINN, 79, of Ho Chi Minh City, Vietnam, and San Francisco, California, pled guilty on December 19, 2019, before U.S. Magistrate Judge Kevin Nathaniel Fox to one count of tax evasion for the calendar years 2001 through 2018, in violation of 26 U.S.C. § 7201, which carries a maximum penalty of five years in prison.  CHINN also consented to the civil forfeiture of 83% of the funds held in five accounts at two Singapore banks, which resulted in the successful forfeiture and repatriation to the United States of approximately $2.2 million.  The civil forfeiture proceeding is United States of America v. Certain Funds on Deposit in Various Accounts, 20 Civ. 3397 (LJL). 

CHINN is scheduled to be sentenced by Judge Marrero on November 19, 2021.

The maximum potential sentences set forth above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the Court.

Ms. Strauss and Mr. Goldberg praised the outstanding work of IRS-CI.  Ms. Strauss thanked the Department of Justice’s Tax Division for their partnership on this case.  Ms. Strauss, Mr. Goldberg, and Mr. Lee also thanked the Department of Justice’s Office of International Affairs, the Singapore Attorney-General’s Chambers, and the Commercial Affairs Department of the Singapore Police Force for their assistance in this matter.

This prosecution is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York and the Department of Justice’s Tax Division.  Assistant U.S. Attorney Olga I. Zverovich of the United States Attorney’s Office for the Southern District of New York and Senior Litigation Counsel Nanette Davis and Trial Attorney Sean Green of the Tax Division are in charge of the prosecution.

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

[2]  In November 2015, IHAG entered into a non-prosecution agreement with the Department of Justice, paid a penalty of approximately $7.4 million, and agreed to cooperate with U.S. authorities.