Owner Of New York Investment Fund Sentenced To Seven Years In Prison For Orchestrating $26 Million Scheme To Defraud Investors

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that BRENT BORLAND, the owner and principal of a New York-based investment fund known as Belize Infrastructure Fund I LLC (“Belize Fund”), was sentenced today in Manhattan federal court to 84 months in prison for orchestrating a $26 million investment fraud scheme against dozens of investors.   BORLAND pled guilty in February 2019 to conspiring to commit, and the commission of, securities fraud and wire fraud before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence.

Manhattan U.S. Attorney Strauss said: “Brent Borland led a years-long, multifaceted scheme to bilk victims out of more than $26 million.  Using lies and deceit, Borland tricked more than 40 investors into entrusting him with their hard-earned money. In truth, Borland’s promises to investors were lies, and he spent much of their money on himself.  For the financial and emotional devastation his fraud has inflicted, Borland will spend the next seven years in prison.”    

According to the Complaint, Indictment, and statements made in connection with sentencing:

From 2014 through March 2018, BORLAND and others solicited and received approximately $26.1 million from approximately 40 investors based upon representations that he would use the investors’ money to construct an airport in Belize.  BORLAND promised investors high rates of return on their investments, which he represented were temporary “bridge financing.”  BORLAND also represented to investors that their investments would be fully secured by real property in Belize that was unencumbered by any liens or obligations.

In fact, however, BORLAND misappropriated millions of dollars of investors’ funds and used those funds for his own personal benefit.  BORLAND diverted a substantial portion of the funds invested by victims to himself to pay for a variety of personal expenses, including his mortgage payments, credit card bills, luxury automobiles, a beach club membership, and private school tuition for his children.  In contrast to BORLAND’s representations that investors would receive high rates of return within a specified time frame, all known investors in the scheme lost money.  And while BORLAND represented that the investments would be secured by real property, the property purportedly serving as collateral was improperly pledged to multiple investors and, in some cases, did not even exist in the manner identified and described by Borland in documents he provided to the investors. 

In addition to his prison term, BORLAND, 51, of West Palm Beach, Florida, was sentenced to three years of supervised release and ordered to pay forfeiture of $26,584,970 and restitution of $26,184,970.          

Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service and thanked the Securities and Exchange Commission, which brought a separate civil action. 

Attorney General James and State Police Superintendent Bruen Announce Conviction of Contractor for Defrauding Homeowners Out of More Than $50,000 in the Capital Region

 Dwight Fiero, Who Falsely Claimed to Be a Combat Veteran, Pleaded Guilty to Felony Scheme to Defraud and Grand Larceny 

 New York Attorney General Letitia James and New York State Police Superintendent Kevin Bruen announced the conviction of Dwight Fiero, a/k/a David Fiero, 44, for his role in a contractor fraud scheme perpetrated against homeowners across the Capital Region. Fiero pleaded guilty to Grand Larceny in the Third Degree and Scheme to Defraud in the First Degree in Albany County Court before the Honorable Andra Ackerman. Fiero’s conviction resolves a 10-count indictment unsealed earlier this year, charging him with pocketing more than $50,000 in deposit monies from numerous homeowners meant for home improvement projects, all while he was awaiting sentencing on a conviction for another case. 

“Dwight Fiero shamelessly cheated New York homeowners and undermined our nation’s integrity to line his own pockets,” said Attorney General James. “Let this serve as a loud and clear message that there is no place for fraud in our state and bad actors will be held accountable to the fullest extent of the law. My office remains committed to delivering justice, and we will continue to use everything in our toolbox to protect the homes and wellbeing of all New Yorkers.”

“Our joint investigation revealed that this contractor misrepresented himself as a combat veteran in order to cheat homeowners out of their hard-earned money,” said Superintendent Bruen. “We will continue to partner with the Office of the Attorney General to hold those who attempt to defraud homeowners accountable for their actions.”

This conviction is the result of a joint investigation by the Office of the Attorney General’s (OAG) Criminal Enforcement and Financial Crimes Bureau and the New York State Police (NYSP) Financial Crimes Unit. The investigation began in the fall of 2020 after numerous homeowners filed complaints with the NYSP and the OAG’s Consumer Frauds and Protection Bureau.

In June of this year, Fiero was charged by an Albany County grand jury with stealing more than $50,000 from numerous Capital Region homeowners, between April 24, 2020 and November 22, 2020, while he was released and awaiting sentencing on an unrelated case. According to prosecutors, Fiero advertised himself as a military combat veteran on Facebook Marketplace who could build and install backyard decks. Fiero advertised his services under the businesses War Cry Contracting, Veterans Contracting, and Battle-Scarred Contracting. Fiero then lured unsuspecting homeowners who were looking to have home renovation projects completed during the COVID-19 pandemic into falsely supporting who they thought was a veteran.

Fiero was charged with soliciting large, upfront deposits for work, and then failing to perform the work or so poorly performing the work that homeowners had to pay to have everything removed. In one instance, Fiero enclosed a porch for a homeowner whose home had gray siding, but instead he used tan siding on the enclosed porch — leaving her with an enclosed porch that was of such unsound design that it needed to be replaced altogether and a home with two completely different colors of siding. 

Fiero, who is currently serving a sentence of 18 months to three years for his prior conviction on the unrelated case, faces a sentence of not less than two to four years and not more than three to six years in state prison when he is sentenced by Judge Ackerman on December 7, 2021. This sentence will run consecutive to the sentence he is currently serving.

Attorney General James wishes to thank the NYSP Financial Crimes Unit for its invaluable assistance in this investigation.

On Three-year Anniversary of Schoharie Limousine Crash, Governor Hochul Announces Appointments to the Limousine Passenger Safety Task Force

 

Directs Task Force to Convene and Agree on Swift Timeline for Comprehensive Study Examining Matters Influencing the Safety, Adequacy, Efficiency and Reliability of Stretch Limousine Transportation 

 Governor Kathy Hochul today announced she has appointed four new members to the Stretch Limousine Passenger Safety Task Force and directed the task force to immediately convene and agree on a timeline for completing its comprehensive study of safety measures. The four newly appointed members join the three members who were already designated, enabling the task force to begin the study that will be presented to the Governor and State agencies that oversee limousine services in New York State. Recommendations for the remaining spots on the task force are all in and undergoing vetting. The task force's study will closely examine matters influencing the safety, adequacy, efficiency and reliability of stretch limousine transportation. 

"As we mark the three-year anniversary of the tragic crash, we must honor the memory of these individuals by realizing our obligation to review every single aspect of limousine transportation and help prevent such tragedies," Governor Hochul said. "With all recommendations for the task force now in, I am directing the task force to convene without further delay and commit to a timeline for conducting and submitting its review of safety measures, so we can better protect every passenger and others who share the road." 

The new members include Joan McDonald, Westchester County Director of Operations, and Matthew J. Driscoll, Executive Director at New York State Thruway Authority, selected and appointed by the Governor; and David J. Brown, President and CEO at Premiere Transportation, and Edward Stoppelmann, Co-owner of Red Oak Transportation, appointed by the Governor upon recommendation from the Speaker of the Assembly as required by law. 

The new members join the commissioners of the New York State Department of Motor Vehicles and the New York State Department of Transportation and the Superintendent of State Police, all of whom were already designated as members of the task force by statute.

The Senate has submitted their recommendations for appointments to the task force and those are under review.

PUBLIC ADVOCATE'S STATEMENT ON THE RESIGNATION OF FORMER SERGEANTS BENEVOLENT ASSOCIATION PRESIDENT ED MULLINS

 

 "Ed Mullins’ position in law enforcement leadership was harmful long before yesterday, and we now have an opportunity for improved leadership tomorrow. While much remains unknown about the circumstance of Mullins’ resignation and the FBI raid that prompted it, it seemed clear for many years that under his leadership the SBA was more interested in the preservation of power than the well-being of its law enforcement membership, or of the people of New York they are charged to serve. His tenure was unnecessarily hostile, often exemplified by more hateful fearmongering than engagement in the work of co-producing public safety in a just, equitable, and effective way. It was harmful to the union’s membership and to all New Yorkers.

"It is my hope that with new leadership comes a new direction for the Sergeants Benevolent Association, a willingness to collaborate with communities and an openness to the changes that we know can benefit everyone who is truly interested in keeping communities safe. While it is unlikely that we will all agree on every issue or strategy, it is imperative that we approach this dialogue and this work honestly and in good faith, and I invite the new leadership of the SBA to join that conversation."

87 Days left and Counting

 

Crime is down in New York City. Let's compare this last September. Just last month, September 2021 to September 2020.  Murder down 23.7 percent. Burglary down 15.8 percent. Shootings down 8.7 percent. Shooting victims down 4.4 percent. Overall index crime down year to date compared to last year, lowest point in three decades. Let's look at some of these examples. The robbery rate year-to-date, lowest point in the last three decades. Felony crime rate year-to-date, lowest point in the last three decades. Misdemeanor crime, lowest point in the last three decades. Major property felony crime, lowest point in the last three decades. Look we got a lot more to do, but what's clear is not just what's been done since the pandemic began, but the years and years before – the 25 years-plus since CompStat began, but also the efforts that we undertook in our first six years with neighborhood policing.

Yesterday, a major takedown of a gun trafficking ring – NYPD, DA’s, federal officials, all working together. Very, very powerful, but look at the overall reality with the gun arrests up 20 percent year-to-date. 20 percent more-gun arrests, extraordinary activity, extraordinary success by the men and women of the NYPD.  It is not easy. As the Commissioner will attest, a gun arrest is a very difficult thing to do. When you look at the overall crime rate, what we did see a spike in, particularly in the month of September, is felony assaults. And the felony assault level was up 19 percent, but a lot of positives, a lot of good work being done.

Commissioner Shea: When you look at the case that came down yesterday, we highlighted Mr. Mayor, working with Cy Vance and the Manhattan DA's office, undercover officers, going into the streets of New York City, purchasing guns to make sure that guns don't wind up in the hands of criminals that are hurting New Yorkers. So, a lot of good work on that. And I would just like to highlight, again, some of the work that we're doing with the youth across the city – schools have back in and that's some great news. Schools are back in session. It's important that the NYPD continues as we head into the last quarter of 2021 to finish this year, very strong. So, we're continuing our Blue Chips program. We're continuing our Saturday Night Lights program. We have plans to open three more courts.

Bronx Young Dems Picture Day Saturday October 9, 2021 - 3 PM

 

Bronx Young Democrats

@BronxYoungDems

·

Join us Saturday October 9th for Picture Day! BYD will be hosting a free picture day for our members. Attendees will leave with a professional headshot and some snacks. You can register for this event and save your spot at http://bxyd.nyc/pictureday

Bronx Young Dems Picture Day Registration

This will be taking place on Saturday October 9th at 3pm at the Bronx Democrat Party Headquarters (1534 Boone Ave, 10460), and as this is an in person event we will be requiring proof of vaccine or recent negative test. This will also serve as our monthly meeting!

This will be done at no charge and the full picture will be sent to each person individually so that you can use it however you want. While everyone is getting their picture taken, we will have drinks as well as an opportunity to meet other young democrats in person!

Please pay your dues in advance: Pay membership dues ($25 regular - $15 student discount) here: bxyd.nyc/donate

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MAYOR DE BLASIO ANNOUNCES PLAN FOR RESTORATION OF HISTORIC CHINATOWN BUILDING

 

 

City to undertake $170 million restoration of 70 Mulberry Street

 Mayor Bill de Blasio today announced a $170 million plan to reconstruct 70 Mulberry Street, a historic, City-owned building in the heart of Chinatown. The building, which was severely damaged by a fire in January 2020, is a cultural and community hub for Chinatown. The plan announced today will preserve and restore portions of the building’s historic façade, add two additional floors, and result in over 68,000 square feet (sf) of space. The building was previously home to five community and cultural organizations, all of which will be welcomed back as tenants. 

 

“70 Mulberry Street has been a beloved gathering place for the Chinatown community for generations,” said Mayor Bill de Blasio. “After the devastating fire in January 2020 destroyed much of the building, we promised to rebuild. This historic $170 million commitment will preserve the historic façade and add two floors of additional space, ensuring the community and nonprofit tenants have an incredible building to return to. These investments will ensure 70 Mulberry can continue to be a critical community space for generations to come.”

 

The plan announced today is the product of an over one-year community visioning process that featured a community survey and a series of public forums and events. The visioning process was guided by the 70 Mulberry Advisory Committee, consisting of building tenants, local elected officials, and representatives from Manhattan Community Board 3. As part of its work, the advisory committee also commissioned a preservation assessment to assess the condition of the building’s façade and gather repair recommendations. 

 

The restoration of 70 Mulberry Street will include:

 

·         Over 50,000 square feet of space to return tenants

·         A new multi-purpose room new that could serve as an auditorium and gym to provide recreation space to the community

·         Over 6,500 square feet of additional office and community spaces

·         Building enhancements to ensure greater accessibility, including an elevator

 

Substantial completion is anticipated in 2027. More information on the reconstruction of 70 Mulberry Street is available at nyc.gov/70mulberry. 

Bronx Man Who Possessed Five “Ghost Guns” Charged With Possessing A Firearm And Ammunition

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, John B. DeVito, Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced the arrest of DOMINGO VALLE for being a felon in possession of a firearm and ammunition.  VALLE was arrested yesterday and was presented in Manhattan federal court before U.S. Magistrate Katharine H. Parker today.

Manhattan U.S. Attorney Audrey Strauss said: “Domingo Valle, despite being a felon, allegedly possessed six firearms, including two privately made AR-style rifles and three privately made pistols, and ammunition.  As alleged, for years, Valle purchased firearm tools, parts, and accessories online in order to create privately manufactured firearms, also known as ‘ghost guns,’ which are difficult to detect and trace.  Thanks to the ATF and NYPD, these dangerous weapons are out of the hands of a felon and will no longer pose a threat to the community.”

ATF Special Agent-in-Charge John B. DeVito said: “Privately manufactured firearms (PMFs) are an increasing source of weapons for criminals and pose an emerging threat to public safety.  ATF will continue to partner with NYPD and other agencies to identify, rigorously investigate, and apprehend those involved in the illegal manufacture and possession of firearms that endanger our communities.”

According to the allegations in the Complaint[1]:

For at least the past seven years, at least over 50 times, VALLE purchased online firearm parts, tools, and accessories that allow an individual to assemble a working firearm from component parts.  For example, in 2020, VALLE purchased online a replacement part for an Easy Jig, which an individual can use to create an assembled firearm from component parts, such as an 80% AR-15 lower receiver.  That same year, VALLE purchased online an 80% AR-15 lower receiver.

On October 4, 2021, agents from the ATF and NYPD recovered a pistol and five rounds of ammunition from VALLE’s residence in the Bronx, New York.  Inside the residence, agents also found two privately made AR-style rifles, three privately made pistols, body armor, which was loaded with rifle and pistol magazines, and numerous bullets.  In an effort to conceal the firearms, VALLE stored three of the privately made firearms in a concealed wall-mounted shelf in the residence. 

VALLE, 51, of Bronx, New York, is charged with being a felon in possession of a firearm and ammunition, which carries a maximum sentence of 10 years.  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.  

Ms. Strauss praised the outstanding investigative work of the ATF and the NYPD.  Ms. Strauss also thanked the Metropolitan Transportation Authority for its assistance in the investigation.

The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

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