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Monday, October 25, 2021
THE NEW BXCC - Reminder: Bronx Business News You Can Use
Manhattan Man Pleads Guilty To $6.9 Million Scheme To Defraud Loan Program Intended To Help Small Businesses During COVID-19 Pandemic
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARCUS FRAZIER pled guilty to carrying out a fraudulent scheme to obtain $6.9 million in government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. FRAZIER pled guilty before United States District Judge Alison Nathan, to whom his case is assigned.
U.S. Attorney Damian Williams said: “Marcus Frazier sought millions of dollars in unsecured SBA-guaranteed loans for which his businesses did not qualify. He lied about the number of people employed by his businesses, the salaries they were paid, even that these employees existed. Further, Frazier used the loan proceeds he obtained to fund his lavish lifestyle, not to pay permissible expenses. Now Marcus Frazier awaits sentencing for his admitted crimes.”
According to the allegations in the Complaint, court filings, and statements made during plea proceedings:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other business expenses through the Paycheck Protection Program (the “PPP”). The PPP allows qualifying small businesses and other organizations to receive unsecured loans guaranteed by the U.S. Small Business Administration (the “SBA”). PPP loan proceeds must be used by businesses for payroll costs, mortgage interest, rent, and/or utilities, among other specified expenses. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and its average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have in the past paid employees the compensation represented in the loan application.
Between in or about May 2020 and in or about April 2021, FRAZIER submitted to the SBA at least seven applications for PPP loans for various businesses that he controlled (collectively, the “Frazier Companies”). These applications relied upon fraudulent statements regarding the number of employees of each business and the amount of payroll involved in each business, and were submitted, in many cases, alongside fake bank statements, designed to support FRAZIER’s false statements. These fake bank statements included, among other things, fraudulent account statements for a checking account that showed balances far greater than the account actually held, and that depicted payroll withdrawals that never occurred. FRAZIER also submitted lists of employees on the purported payrolls of the Frazier Companies, which included names and Social Security numbers which do not match the records of the Social Security Administration, suggesting that FRAZIER fabricated the employee records. On at least one occasion, FRAZIER also provided documents purporting to show that one of the Frazier Companies had been in existence for approximately 10 years. In fact, the corporate entity had not been registered until in or about July 2020, months after the onset of the COVID-19 pandemic.
FRAZIER sought a total of more than approximately $6.9 million in PPP loans and was awarded at least approximately $2.17 million. A substantial portion of the funds awarded was spent not on payroll for the Frazier Companies but, rather, on FRAZIER’s personal expenses. During the period between on or about June 18, 2020, shortly after his first PPP loan was funded, and on or about April 7, 2021, FRAZIER utilized PPP funds to spend approximately $124,982 on hotels, including more than approximately $88,791 at a luxury hotel located in Miami, Florida. During the same period, FRAZIER spent approximately $63,000 on restaurants and food service, approximately $17,000 on transportation using the ride-hailing app Uber, approximately $16,519 on airline travel, and approximately $11,000 on clothing. During this same period, FRAZIER collected approximately $21,000 in unemployment benefits.
In addition, between in or about January 2018 and in or about November 2019, FRAZIER engaged in a scheme to obtain personal loans from financial institutions and to evade the payment of credit card debt by making false representations, and sending fake documents, to lenders and banks.
FRAZIER, 48, of New York, New York York, pled guilty to two counts of wire fraud affecting a financial institution, in violation of 18 U.S.C. § 1343, each of which carries a maximum sentence of 30 years in prison. 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 the judge.
FRAZIER is scheduled to be sentenced by Judge Nathan on March 1, 2022, at 3:00 p.m.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, the SBA Office of the Inspector General, the Internal Revenue Service, and the Federal Deposit Insurance Corporation Office of the Inspector General.
CITY HALL IN YOUR BOROUGH: MAYOR UNVEILS MANHATTAN’S LARGEST SHARED STREET, OTHER MAJOR OPEN SPACE IMPROVEMENTS
Two-block shared street space in Flatiron slows cars, reclaims space for pedestrians and cyclists
Six blocks now fully complete of DOT’s “Broadway Vision” to remake 12 blocks of iconic throughway
Mayor de Blasio and Department of Transportation (DOT) Commissioner Hank Gutman unveiled major street improvements in the heart of Manhattan, including six blocks of Broadway to be fully pedestrianized or modified to share space with pedestrians and cyclists.
The mayor cut the ribbon on two blocks of shared street space on Broadway in Flatiron between 22nd and 23rd streets, alongside local elected officials, small businesses, and BID leadership. These two blocks create the largest shared street citywide and feature innovative new designs that will be used in future shared streets. Four additional blocks were also unveiled today along Broadway in the Garment District and Times Square, meaning six blocks total are now complete of DOT’s “Broadway Vision” to remake 12 blocks as shared streets.
“Open space knits our communities together and reduces our reliance on cars – and there’s no more powerful statement than proving it can be done in the heart of Manhattan’s most iconic street,” said Mayor Bill de Blasio. “These improvements will make Broadway more vibrant and accessible for everyone, not just car owners. It proves we can get more out of our streets with the right mix of hard work and creativity, and I’m excited to see these ideas implemented at more locations across the five boroughs.”
“These innovative new designs reimagine how every New Yorker interacts with our streetscape,” said DOT Commissioner Hank Gutman. “These streets are safer, more accessible, and make the experience for people – not cars – the best it can be. With the strong support of local businesses, these designs serve as a model that we look forward to implementing on key streets citywide, including some of our most successful Open Streets.”
The street improvements announced today include:
- A Plaza Block from 39th to 40th Street, fully closed off to cars. This represents the time DOT has ever fully pedestrianized a Garment District block.
- Shared and Slow Streets from 21st Street to 23rd Street in Flatiron, 38th to 39th Streets in the Garment District and 48th Street to 50th Street in Times Square, featuring expanded pedestrian spaces, a maximum 5 MPH speed for cars and protected bikes lanes.
Shared streets feature design elements that slow cars and allow all people equal use of the street. Cars are slowed to 5MPH, but still allowed to make essential deliveries, pick ups and drop offs. At the same time, pedestrians have increased sidewalk space and can also walk in the roadway. Cyclists have a protected bike lane alongside the pedestrian and vehicle space. Finally, large pedestrian plazas allow vendors, outdoor dining, and art installations.
DOT data shows 18 times more pedestrians use Broadway between 22nd and 23rd Street than vehicles.
The streets opened provide a template for new uses of shared streets across the city. These streets prioritize space for cyclists and pedestrians using roadway and plaza space with innovations like chicane designs (a curb extension creating an S-shaped curve to slow traffic), gravel for pedestrian space, shorter pedestrian crossings, and a 5 MPH speed limit.
DOT’s Broadway Vision, from Union Square to Columbus Circle, offers a variety of design elements that can be implemented based on community and stakeholder input, including public space, bicycle lanes, greenery, shared spaces, and traffic calming elements.
The Broadway designs also preview the types of innovative street designs that DOT will propose for some of its most successful Open Streets – including those in Jackson Heights, north Brooklyn, Prospect Heights, the South Bronx and more.
Attorney General James Launches New Easy-to-Use Online Filing Portal for Charities Operating in New York
Online System Will Speed up Filing for Thousands of Charities Required to Register with Charities Bureau
New York Attorney General Letitia James today announced the official launch of a new, easy-to-use online filing portal for charities to report their annual financial disclosures. The new online system will speed up filing for thousands of charities required to register with the Office of the Attorney General’s Charities Bureau.
“Using this online portal, New York charities can easily and more efficiently fulfill their legal obligation of reporting their annual financial disclosures to the public,” said Attorney General James. “This online portal will help us release information more quickly, protect donors, and hold bad actors accountable when they commit fraud. My office is committed to openness and accountability, and this is just the latest step we’re taking to make the reporting process more transparent to all New Yorkers.”
The streamlined application — which uses e-signatures and electronic payments — is designed to eliminate applicants’ guesswork, minimize the Charities Bureau’s response times, and reduce errors and incomplete filings. Organizations with a November 15 deadline are encouraged to use online filings to fulfil their annual filing requirement for faster and more efficient processing.
Access to the e-filing application can be found on the Charities Bureau’s website.
E-filing Basics:
Before starting an application, filers should consult the interactive online checklist that includes all the requirements for a complete annual filing.
What is needed to complete an e-filing:
- A New York state Charities Bureau registration number;
- An IRS Form 990, 990-EZ, 990 PF, or 990-n;
- An independent certified public accountant’s financial review or audit report if applicable; and
- Email addresses for required signatories.
An annual e-filing allows organizations to easily:
- Update names and addresses;
- Confirm statutory designations: 7-A, EPTL, Dual, or Exempt;
- File for annual exemptions;
- Calculate fees automatically; and
- Provide e-signatures and e-payments (credit card or e-check).
Filers with questions can contact the bureau’s dedicated customer service support for e-filing at Charities.AnnualFiling@ag.ny.gov.
Governor Hochul Directs State Agencies to Prepare Emergency Response Assets as Heavy Rain Will Threaten Parts of State Through Wednesday
Two Rounds of Heavy Rain Forecast for Parts of New York City, Long Island and Mid-Hudson Beginning Monday Night and Continuing Through Wednesday Morning
Some Areas Could Receive Four or More Inches of Rain Over the Multi-Day Rain Event
High Winds Could Cause Downed Trees and Power Lines, and Combination of Heavy Rain, Saturated Soil and Wind Could Uproot Some Trees
Governor Kathy Hochul today directed state agencies to prepare emergency response assets as a rapidly developing low-pressure system is expected to produce heavy rainfall across most of Long Island, New York City, and the Mid-Hudson Region. Two rounds of heavy rain are expected with the first round beginning Monday night and the second round on Tuesday evening. Rainfall totals of 2-4 inches with locally higher amounts are possible, and rainfall rates may exceed one inch per hour at times. Heavy rainfall combined with already saturated soils will likely cause flooding in various locations, and high winds may cause downed tree limbs and power lines. Heavy rain, wind, and saturated soil could result in some uprooted trees. Governor Hochul urged New Yorkers to pay attention to updated weather forecasts and follow any local emergency orders that may be issued.
"This fast-moving weather system is expected to bring a lot of rain to the downstate area through Tuesday night, and New Yorkers should keep a close eye on the forecast so they can be prepared for any inclement weather that may come their way," Governor Hochul said. "I have directed State agencies to prepare emergency response assets and to be ready to deploy them in the event our local governments and communities in those regions are in need of assistance. We stand ready to help our fellow New Yorkers."
A Flash Flood Watch is in effect for Long Island, New York City, and counties within and near the lower Mid-Hudson Region through Tuesday afternoon. A Wind Advisory is also in effect for Suffolk County from Tuesday afternoon to Wednesday morning as wind gusts up to 50 mph could bring down tree limbs and power lines, and saturated ground from heavy rainfall could result in some uprooted trees.
For a complete listing of weather advisories in your area, visit your area's National Weather Service website.
MAYOR DE BLASIO APPOINTS DAWN PINNOCK AS ACTING COMMISSIONER OF THE DEPARTMENT OF CITYWIDE ADMINISTRATIVE SERVICES
Mayor Bill de Blasio today appointed Dawn Pinnock as Acting Commissioner of the Department of Citywide Administrative Services (DCAS). As Commissioner, Pinnock will support City agencies’ workforce needs, oversee citywide procurement, manage the City’s public buildings and real estate portfolio, oversee the City’s vehicle fleet and meet the Mayor’s energy and electrification goals. Commissioner Lisette Camilo’s last day will be November 12th.
Prior to this appointment, Pinnock served as the Executive Deputy Commissioner at the Department of Citywide Administrative Services. She was also recently appointed by the Mayor to serve on the Pay Equity Cabinet to address race and gender-based pay disparities in New York City.
“Dawn is a dedicated public servant with the experience and passion for excellence necessary to lead an agency as important to the inner workings of City government as DCAS,” said Mayor Bill de Blasio. “I also want to thank Lisette for her six years of distinguished service as Commissioner.”
“Public service is an honor and a privilege, and I am humbled to be named as Acting Commissioner for DCAS,” said Dawn Pinnock, incoming Acting Commissioner for the NYC Department of Citywide Administrative Services. “As someone who has proudly worked in New York City government throughout my career, including the past seven years at DCAS, I know first-hand the crucial role this agency plays in making local government work for all New Yorkers. I look forward to building upon the important work we do at DCAS and would like to thank Mayor de Blasio for entrusting me with this position. I would also like to thank Commissioner Lisette Camilo for her nearly six years of service leading DCAS and for the positive impact she made.”
“I would like to congratulate Dawn Pinnock for being named as DCAS’s Acting Commissioner,” said Lisette Camilo, Commissioner of the NYC Department of Citywide Administrative Services. “Dawn has been a trusted and highly-effective executive at our agency for years, and I know first-hand the immense talent and abilities she will bring to this job. I would also like to thank Mayor de Blasio for the honor of allowing me to serve as DCAS commissioner since 2016. It has been a distinct privilege, and I thank the Mayor and all of my colleagues.”
About Dawn Pinnock
As a proud native New Yorker, Dawn Pinnock is a transformative leader with more than two decades of experience at some of New York City’s largest municipal agencies. Most recently, Pinnock served as the Executive Deputy Commissioner at the Department of Citywide Administrative Services, where she led the agency’s people-centered functions, including Administration, Citywide Equity and Inclusion, Citywide Human Capital and the Internal Audits. In her role, she maintained citywide oversight of services provided to the human resources, equal employment, and diversity and inclusion departments serving at every agency. Pinnock has also served as the Deputy Commissioner for Human Capital, overseeing all aspects of civil service administration and human resources operations. During her tenure at DCAS, she led teams that developed both the City’s remote work policy and the return to work policy, launched mandatory sexual harassment training for over 360,000 City employees and made the City’s civil service process more accessible to current and potential City employees.
Prior to joining DCAS, Pinnock served as the Vice President of Human Resources at New York City Transit and as the Director of Human Resources at the New York City Housing Authority (NYCHA). She holds a Master of Science in Urban Policy Analysis and Management from The New School for Social Research and a Bachelor of Business Administration from Baruch College. She is a Certified Human Resource Professional, and a member of both the Association for Talent Development and the Society of Human Resource Management. She lives in the Bronx with her family.
Council Member Ruben Diaz Sr - Is Governor Kathy Hochul Making Bill DeBlasio A Shadow Governor?
WHAT YOU SHOULD KNOW
By Councilman Rev. Ruben Diaz
18 District, Bronx
You should know that if we are to carefully analyze the appointments made by Governor Kathy Hochul to serve in her administration, we might believe that, in the end, Mayor Bill DeBlasio will be a shadow governor.
There are many who believe that the eight years of Bill DeBlasio and his policies has lead New York City in the wrong direction, and that the DeBlasio administration will go down in history as the worst administration this city and its residents have had to endure.
Under the DeBlasio administration, we have seen the city’s most vital, core services greatly impacted for the worst, such as health, transportation, law and order, the police, traffic congestion, and race relations among others, have reached a level of chaos. This city under DeBlasio has seen Crime, violence, homicides, shootings, increase at an alarming rate, and they are headline news daily.
It is important for you to know, that Gov. Hochul, knowing the despair and frustration that the residents of this city go through daily under Mayor DeBlasio, has been appointing his top assistants to key positions in her administration. Most of her appointments have left many wondering if Bill DeBlasio is the one pulling the strings behind the scenes in Albany. Governor Hochul’s appointments are as follows:
1. Katherine Garcia: Former Mayor DeBlasio’s Sanitation Commissioner has been appointed as the NYS Director of Operations overseeing the State’s Day to day operations as well as overseeing every agency throughout the state. (Practically she will be the governor)
2. Amit Bagga: Former DeBlasio’s Deputy Director of the Census Office has been appointed as the NYS Deputy Secretary for Inter-governmental Affairs.
3. Mary Bassett: Former DeBlasio’s Health Commissioner has been appointed as the NYS Health Commissioner.
4. Jackie Bray: DeBlasio’s Deputy Executive Director of the NYC Health and Hospitals COVID-19 Test & Trace Corps Program. She has been appointed The Empire State Commissioner of Homeland Security and Emergency Services.
As you can see my dear reader, these are only some of the people from Mayor DeBlasio’s administration that Governor Kathy Hochul has appointed to help her as governor of New York State.
So, what are Governor Kathy Hochul’s plans for New York State? Who knows? But based on and studying the appointments she has made we can speculate on one of two things. Either the Governor wants to bring DeBlasio’s disastrous policies to the entire state, which can spread like a cancer through the entire State of New York, or she’s making Bill DeBlasio New York State’s shadow governor.
I am Councilman Rev. Ruben Diaz and this is What You Should Know.