Former Management Consulting Firm Partner Pleads Guilty To Insider Trading

 

Defendant Was a Lead Consulting Firm Partner Advising an Investment Bank on Its Acquisition of GreenSky, Inc.

 Damian Williams, the United States Attorney for the Southern District of New York, announced today that PUNEET DIKSHIT, a former partner in a global management consulting firm (the “Consulting Firm”), pled guilty to one count of securities fraud in connection with his scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that an investment bank (the “Investment Bank”) – which DIKSHIT and the Consulting Firm were advising – would be acquiring GreenSky, Inc. (“GreenSky”).  The defendant pled guilty before U.S. District Judge Colleen McMahon.

U.S. Attorney Damian Williams said: “Barely a month after he was charged, Puneet Dikshit admitted in court today that he used his access to material nonpublic information about a pending acquisition of GreenSky, Inc., to trade in GreenSky call options.  This conduct, which netted the defendant nearly half a million dollars in tainted profits, broke the law and violated the defendant’s duties to his firm and its client.  Now Puneet Dikshit awaits sentencing for his admitted crime.”

According to the allegations in the Complaint, Information, and statements made in public court proceedings:

GreenSky was a publicly traded financial technology company that provided technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare, and other purposes.  GreenSky’s common stock traded under the symbol “GSKY” on the NASDAQ.

Between on or about November 2019 and on or about July 2020, and again between on or about April 2021 and on or about September 2021, the Investment Bank engaged the Consulting Firm to provide various consulting services related to its consideration of an acquisition of GreenSky and the post-acquisition integration of GreenSky.  DIKSHIT was one of the Consulting Firm partners leading these engagements.  In that role, he had access to material nonpublic information, which he misappropriated and, in violation of the duties that he owed to the Investment Bank and the Consulting Firm, used to trade GreenSky call options. 

DIKSHIT engaged in this trading between on or about July 26, 2021, and on or about September 15, 2021 – at the same time he was leading the Consulting Firm team that was advising the Investment Bank about its potential acquisition of GreenSky.  At various times between on or about July 26, 2021, and on or about September 13, 2021, DIKSHIT purchased and sold relatively small numbers of GreenSky call options, which had expiration dates weeks or months from the time of purchase.  However, in the two days before the September 15, 2021, public announcement that the Investment Bank would be acquiring GreenSky, DIKSHIT sold all of these longer-dated GreenSky call options and purchased approximately 2,500 out-of-the-money GreenSky call options that were due to expire just a few days later, on September 17, 2021.  After the deal to purchase GreenSky was announced, DIKSHIT sold these options and realized profits of approximately $450,000.

DIKSHIT, 40, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.  The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  DIKSHIT is scheduled to be sentenced by Judge McMahon on March 30, 2022, at 2:00 p.m.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.  Mr. Williams further thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in this investigation. 

Councilman Mark Gjonaj's NYCHA Toy Giveaway

 

It was a mild Tuesday afternoon as everything was coming together for Councilman Mark Gjonaj's last event as a city councilman. This was a toy giveaway at the NYCHA Houses on Waring Avenue. Members of the 49th Precinct were on hand as the line was around the corner by three PM. Councilman Gjonaj and his staff members were caught in traffic, and other volunteers were waiting for the councilman to show up. 

Within minutes that yellow oversized van arrived with the famous "Because he cares, Councilman Mark Gjonaj" on it arrived. The back door opened and hundreds of toys were unloaded, with gloves, hats and two giant urns of hot water with boxes of cocoa mix for the children.

Then one of Councilman Gjonaj's staffers disappeared into the van, to come out a few minutes later as the Grinch who Stole Christmas. When the Grinch came out into the open, at first some of the children screamed, but then they wanted their picture taken with the Friendly Grinch. 

Hundreds of toys were set up on tables, one area for boys, one area for girls, and the third area with games and other toys that boys or girls could play with.

While the toys were being set up, Councilman Gjonaj went around to the children handing out candy canes, and face masks for the adults. 

One of Councilman Gjonaj's staffers dressed up as the Grinch who stole Christmas.

Some children were afraid of the Grinch, and this officer from the 49th Precinct was about to arrest him when the children said not to.

It seemed that many children wanted their picture taken with the Grinch.

Even Officer Fernandez wanted her picture with the Grinch.

The children would first be asked if they wanted hot cocoa, then move to the toy area to choose which of the toys on display they wanted. 

It was strange that the police officers were holding toys to give to the children, but the children would walk right by them, and take the same toy off one of the tables. The Children also received a pair of gloves and wool hat. 

After the last child received a toy, everyone gathered around the few toys left, that will be given to shelters, for a group photo.

MAYOR DE BLASIO CELEBRATES HISTORIC PASSAGE OF SOHO/NOHO REZONING

 

SoHo/NoHo Neighborhood Plan will bring 900 affordable homes and economic opportunity to iconic, centrally located neighborhoods

 Mayor Bill de Blasio today celebrated the City Council’s approval of the SoHo/NoHo Neighborhood Plan, the first overhaul of this area’s local zoning regulations in half a century. The plan will bring approximately 900 permanently affordable homes, support existing historic districts, invest in arts and culture through an innovative arts fund model, and introduce flexible zoning for ground floor and other uses.

 

“Today, New York City has taken a generational step toward building a recovery for all of us,” said Mayor Bill de Blasio. “This rezoning victory sends a powerful message that every community can and should join the fight to help solve our affordable housing crisis and make this city accessible for working families. SoHo and NoHo are two of the most iconic neighborhoods in the country for a reason – and now, we are one step closer to them finally reflecting all the diversity that makes our city great.”

 

“The approval of the SoHo/NoHo Neighborhood Plan is a critical, precedent-setting milestone towards a fairer New York City,” said Deputy Mayor for Housing and Economic Development Vicki Been. “Creating more housing opportunities in well-resourced, centrally located neighborhoods is a moral, economic, and environmental imperative. Thank you to Council Member Chin, Council Member Rivera, and the stakeholders and advocates engaged in the process for the extraordinary efforts that have helped make this a reality.”

 

“As we recover from the COVID-19 pandemic, equity must be at the forefront of our work to increase affordable housing and economic opportunities. Today’s approval of the SoHo/NoHo Neighborhood Plan stands for the idea that all neighborhoods can and should play a part in solving the planning challenges we, as New Yorkers, share. Through permanently affordable housing requirements, support for the arts, and a balance between historic preservation and continued growth, this initiative is a much-needed step towards a fairer, more livable city. Thanks to Council Members Chin and Rivera for their leadership and collaboration on this vital plan,” said Department of City Planning Director Anita Laremont.

 

“The rezoning of SoHo and NoHo represents a significant milestone that realizes our commitment in Where We Live NYC to make sure that all our neighborhoods contribute to building a more equitable and affordable city,” said Department of Housing Preservation and Development Commissioner Louise Carroll. “For the first time affordable housing will be a permanent feature of the neighborhoods’ growth while ensuring that the community’s architectural, historical and cultural essence will continue to flourish. We commend the residents, local officials and various stakeholders for their critical partnership on this long awaited achievement.”

 

"Soho's artistic legacy is part of our collective cultural heritage as New Yorkers," said NYC Cultural Affairs Commissioner Gonzalo Casals. "We applaud this historic rezoning effort, and the investments it signals in preserving and strengthening the creative landscape of Soho/NoHo and across all of Lower Manhattan."

 

“Open space and affordable housing are key to a livable city, and the SoHo/NoHo Neighborhood Plan will create rare opportunities for new and improved parkland in this area,” said NYC Parks Commissioner Gabrielle Fialkoff. “As part of this plan, we are proud to make improvements at Sara D. Roosevelt Park, work with DEP to transform two sites into new public spaces for the community, and partner with DOT to reconstruct and expand the Pike and Allen Street Malls and explore the renovation of Petrosino Square and other neighborhood locations.”

 

The SoHo/NoHo Neighborhood Plan will, for the first time, permit housing and require affordable housing in all new developments, allowing as many as 3,500 new homes to be created, approximately 900 of which would be permanently affordable via the City’s Mandatory Inclusionary Housing (MIH) program. In addition to new homes created on vacant and underutilized land, conversion of existing non-residential space to residential with a MIH requirement will create a more diverse, mixed-income neighborhood. Existing rent-regulated homes, many covered by the Loft Law, will remain protected under State tenant protections and supported by a wide range of City resources.

 

This initiative furthers the priorities developed in Where We Live NYC, the City’s fair housing plan that calls for changes to ensure every neighborhood contributes to the City’s affordable housing development goals. By allowing affordable housing development in SoHo and NoHo, the plan will offer opportunities for lower-income New Yorkers to live in these amenity-rich, high-income, disproportionately white communities – while also lowering housing pressures on surrounding neighborhoods.

 

Covering an area generally bounded by Canal Street to the south, Houston Street and Astor Place to the north, Lafayette Street and the Bowery to the east, and Sixth Avenue and West Broadway to the west, the plan updates antiquated zoning rules that were tailored for a 1970s SoHo/NoHo that has greatly changed in the last 50 years. 

 

The Plan includes land use changes alongside a range of initiatives and investments, including:

• Sensible retail regulations: Rather than a patchwork of variances and zoning rules for a manufacturing landscape that no longer exists in SoHo/NoHo, the plan removes obsolete regulations that hurt small businesses and introduces sensible use rules that recognize its status as a major economic engine and retail destination. The Plan also includes investments to bring Small Business Service’s Storefront Startup to SoHo/NoHo to address storefront vacancies. This program pairs small businesses, including artists and creative entrepreneurs, without a physical location to vacant storefronts to help them launch and grow.
• SoHo/NoHo Arts Fund: The Plan supports the legacy of arts and culture in and around SoHo and NoHo over the long term with a new arts fund model to ensure a future stream of investments into the area’s artistic vibrancy. The SoHo/NoHo Arts Fund creates a voluntary mechanism for those living in Joint Living Work Quarters for Artists (JLWQA) who wish to convert to a legal residential use through a contribution to a neighborhood arts fund. The JLWQA program will also remain an option for certified artists in perpetuity.
• Tools to protect and enhance the historic context: New York City Landmarks Preservation Commission’s review and certification of appropriateness remains unchanged throughout the historic districts, which is about 85% of total rezoning area. The Plan will add height limits to the area for the first time, which will further encourage beloved loft-like structures. To enhance and protect the neighborhoods’ historic character and building forms, no towers will be allowed. The new height limits include:

• Outside of the historic districts and along Canal Street and the Bowery, “Opportunity Areas” allow increased density and a maximum height of 275 feet, in line with the existing context. In comparison, the tallest existing building in the “SoHo West” Opportunity Zone is the approximately 400-foot Telephone Building.
• Along historic district commercial corridors, including Broadway, the maximum height is 205 feet.
• In the historic cores of the project areas, maximum height is 145 feet.

• New affordable housing on nearby city-owned sites: The City will prioritize the development of affordable housing at 388 Hudson Street and 324 East 5th Street, two City-owned sites in the surrounding neighborhoods.
• Resources to support existing residents: To support existing tenants, the City will fund one or more local community organizations to conduct proactive outreach to tenants in the rezoning area and continue proactive tenant outreach via the Mayor’s Public Engagement Unit’s Tenant Support Unit. The City will also fund additional staff resources within the Loft Board to support a faster process for residents who wish to converting from Interim Multiple Dwelling (IMD) to legal residential use.
• Investments in neighborhood amenities and infrastructure: The Plan includes initiatives focused on comprehensive improvements to transportation, public realm, and sanitation throughout the area, such as:

• Reconstruction and expansion of the Pike and Allen Street Malls, with potential enhancements including expanded landscaping, seating areas, lighting, protected greenways, and more.
• Improvements to Sara D. Roosevelt Park, including reopening the Stanton Street building for community use.
• Exploring the redesign of Petrosino Square and Cooper Triangle, well-used public spaces by the SoHo/NoHo communities.
• Comprehensive studies of the Broadway and Canal Street corridors for transportation and public realm improvements.
• Advancing the Commercial Waste Zone and Clean Curbs programs to address sanitation and quality of life concerns in the area.

 

Governor Hochul Announces MTA to Award Contract for the Metro-North Penn Station Access Project

Project Will Provide Direct Metro-North Service from the Bronx, Westchester and Connecticut to Penn Station and Manhattan’s West Side

 Governor Kathy Hochul today announced that the Metropolitan Transportation Authority (MTA) has approved a design-build contract for the Penn Station Access Project, which will provide direct Metro-North service from the Bronx, Westchester and Connecticut to Penn Station and Manhattan’s west side. Penn Station Access will drastically reduce travel times for people who live and work in the East Bronx, an area currently without any rail service. The contract will be awarded to Halmar International, LLC/RailWorks, J.V. 

“Metro-North is coming to the east Bronx, and bringing faster commutes with it,” said Governor Hochul. “This one project by itself is a big step forward for environmental justice, environmentally sustainable transportation, the Bronx economy and regional interconnectivity, and yet another example of our ongoing efforts to make sure that all New Yorkers have the modernized transportation systems they deserve.” 

There are almost 250,000 residents and over 100,000 jobs within a half mile of the four stations, which can have service as frequent as every 20 minutes in the peak period. The new service will save East Bronx riders up to approximately 50 minutes in each direction to Penn Station, and up to 75 minutes in each direction to Connecticut. Current New Haven Line riders with destinations on the west side will save up to 40 minutes per day since travel from Grand Central will not be necessary.

Governor Ned Lamont said, “Improved service on our rail system, with an eye on the future, means a transportation system that works for everyone when it comes to quality of life and economic development for residents and businesses in Connecticut and New York. It means more transit-oriented development, more people out and about, and more opportunities for tens of thousands of people to get to their jobs every day and earn a living. This is the latest joint venture between Connecticut and New York showing how important our relationship is for our residents and the success of the region.”

Catherine Rinaldi, President of MTA Metro-North Railroad said, “Access to Penn Station is completely transformative for Metro-North and we are excited to begin the service upon completion of the project. This will be the railroad’s largest expansion in history – four new stations is no small thing. This gives Metro-North’s busiest line a second route into Manhattan for the first time, redundancy that’s all the more important as the railroad looks to pursue major capital renewal projects on the route to Grand Central – namely the Park Avenue Viaduct and the Park Avenue Tunnel.”

The project also will improve regional transportation connectivity, enhance network resiliency by providing a second Metro-North terminal in Manhattan, promote sustainability and bridge communities. By using Amtrak’s existing Hell Gate Line, the project will maximize the potential of existing infrastructure, while minimizing impacts on the community.

It will bring the Hell Gate Line into a state of good repair and improve reliability and on-time performance for intercity passengers and prepare the corridor for high speed rail in the future. Amtrak will contribute $500 million toward the project, thanks to the efforts of Majority Leader Schumer. Amtrak has also agreed to pay the costs of delay if they fail to meet commitments to provide outages or workforce.

In addition to the four new stations, the project will turn the existing two-track railroad into a largely four-track railroad, with over 19 miles of new and rehabilitated track work. The project also includes four bridge rehabilitations, the reconfiguration of Metro-North's New Rochelle Yard, four new and one reconfigured interlockings, five new and two upgraded substations, and the modernization of signal, power and communication infrastructure.

The current project construction schedule is estimated at 63 months and $2.87 billion. It is estimated the project will create or retain approximately 4,500 direct jobs and another 10,000 indirect jobs.

New York City Tax Preparers Caught Filing Fraudulent Tax Returns

 

Plead guilty to hiding business income and inflating deductions

 The New York State Department of Taxation and Finance today announced a trio of guilty pleas by New York City tax preparers who attempted to defraud their clients and the state.

Raul Martinez, the owner of Apollo Tax located at 170 Dyckman Street in New York City, was sentenced to five years’ probation after pleading guilty to felony criminal tax fraud.

Martinez admitted to falsely representing his New York City residency, failing to remit withholding tax to New York State as required by law, and failing to report business income from Apollo Tax on his personal income tax return.

Martinez will pay more than $94,000 in restitution for tax years 2015 through 2018. As part of his probation, he’s prohibited from preparing tax returns for any individual taxpayer. He faces jail time if he violates this condition of his sentencing.

Additionally, two Bronx-based tax preparers pleaded guilty to claiming bogus deductions on several returns they filed.

Laureano Lopez, 64, and Adalberto Velasquez, 43, of Roy’s Agency Inc., located at 1562 Watson Avenue, Bronx, NY, filed the fraudulent returns on behalf of individual taxpayers. The taxpayers were not entitled to the inflated deductions claimed on the returns.

Lopez was a registered New York State tax preparer. Velasquez was not registered to legally prepare taxes in New York State.

The Albany County District Attorney’s Office prosecuted all three preparers.

“We will continue to aggressively pursue dishonest tax professionals who aim to profit at the expense of New York State and to the detriment of their clients,” said Acting Commissioner of Taxation and Finance Amanda Hiller. “As the income tax filing season approaches, I encourage all New Yorkers who decide to hire a paid preparer to ensure they’re ethical professionals.”

Report fraud

New Yorkers aware of tax preparers committing fraud can anonymously report it online or by phone at 518-457-0578. The Tax Department promptly reviews each complaint and takes corrective action when appropriate.

BRONX MAN INDICTED IN SHOOTING THAT WOUNDED WOMAN PUSHING HER TODDLER IN A STROLLER

 

 Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been indicted on Attempted Murder and additional charges for a shooting that wounded a woman as she pushed her two-year-old daughter in a stroller in the Marble Hill neighborhood. 

 District Attorney Clark said, “The defendant acted recklessly with indifference to life when he fired a gun on a Bronx street. The bullet did not strike his target; instead it struck a woman who was pushing her two-year-old daughter in a stroller. No person, let alone a mother and her child, should have to fear gunfire while walking down the street.” 

 District Attorney Clark said the defendant, Cody Ball, 27, of West 225th Street, the Bronx, was arraigned today before Bronx Supreme Court Justice Efrain Alvarado on Attempted Murder in the second-degree, Attempted Assault in the first-degree, two charges of second-degree Criminal Possession of a Weapon, third-degree Criminal Possession of a Weapon, first-degree Reckless Endangerment, second-degree Assault, Attempted Assault in the second-degree, Criminal Possession of a Firearm, second-degree Reckless Endangerment, Endangering the Welfare of a Child, third-degree Assault, fourth-degree Criminal Possession of a Weapon, and Possession of Ammunition. The defendant is due back in court on March 18, 2022.

 According to the investigation, on November 4, 2021, Ball allegedly fired one gunshot after getting into a dispute with another man. That bullet struck the victim as she walked down West 225th Street. The bullet struck her in the leg.

 District Attorney Clark thanked NYPD Detective Paul Sullivan of the 50th Precinct Squad for his work on the case.

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

Third Brooklyn Man Pleads Guilty To 1989 Murder

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that LUIS MERCED pled guilty today in Manhattan federal court before U.S. District Judge Edgardo Ramos to charges relating to his involvement in the murder of Efren Cardenas on February 10, 1989, in Brooklyn, New York.  William Skinner and Dorian Brooks, a/k/a “Kool-Aid,” also pled guilty, on December 8, 2021, to charges relating to their involvement in the murder of Efren Cardenas.           

U.S. Attorney Damian Williams said: “Luis Merced, William Skinner, and Dorian Brooks were responsible for the murder of Efren Cardenas in the Bedford-Stuyvesant neighborhood of Brooklyn in February 1989.  Today’s guilty plea shows that we will never lose resolve in our pursuit of justice.  I commend the extraordinary efforts of our law enforcement partners and the Special Agents of the U.S. Attorney’s Office, who worked tirelessly to investigate Efren Cardenas’s murder.”

According to the allegations in the Indictment, and other filings and statements made in court:

On February 10, 1989, MERCED, Skinner, and Brooks participated in a plot to shoot and kill Efren Cardenas, 30, in the vicinity of 280 Herkimer Street in the Bedford-Stuyvesant neighborhood of Brooklyn.  MERCED arranged for Cardenas to deliver multiple kilograms of cocaine to an apartment building in Brooklyn, where he had recruited Skinner and Brooks to gun down Cardenas and steal the cocaine.  When Cardenas arrived at the scene, Skinner and Brooks shot him over 20 times.  MERCED, Skinner, and Brooks committed the murder in furtherance of a conspiracy to distribute more than five kilograms of cocaine.           

MERCED, 50, pled guilty to one count of conspiring to distribute cocaine and crack cocaine, which carries a maximum prison term of 20 years.  During his guilty plea, MERCED admitted to his role in the murder of Efren Cardenas.  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.  

MERCED is scheduled to be sentenced by Judge Ramos on March 24, 2022.

Mr. Williams praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York and the New York City Police Department’s Cold Case Homicide Squad.

Rep. Bowman Infuriated by Senate Shelving Build Back Better Act

 

 Today, Congressman Jamaal Bowman (NY-16) issued the following statement after hearing the Senate may shelve the Build Back Better Act. Twenty-six days have passed since the House passed the Build Back Better Act and did its part to deliver for children, families, workers, and our most vulnerable. The Senate must hold its end of the bargain up now. 

“It has now been 26 days since the House did its job to deliver on President Biden’s full agenda and passed the Build Back Better Act. Now, we are faced with a false choice between saving our democracy from the existential threat of fascism and meeting the immediate needs of people,” said Congressman Jamaal Bowman (NY-16). “If we fail to deliver on Build Back Better, this is the last child tax credit payment that my constituents will see, despite tremendous food insecurity and child poverty in our district. The people in my district are all too familiar with the status-quo and are counting on my colleagues in the Senate to address their needs by passing the Build Back Better Act. 

 

President Roosevelt’s New Deal was transformative, but only for some Americans. We cannot repeat the same mistake in this generation–especially when seniors, women and people of color bore the brunt of this pandemic. We have the opportunity to deliver transformative policy for the most impacted, disrupt the status-quo, and put people and families first. There is not a good enough reason for the Senate to withhold passing the Build Back Better Act in order to pass voting rights. Saving our democracy is urgent and existential; it doesn’t mean we have to pause on meeting the immediate needs of people. We can pass both bills and must do so immediately.” 

EDITOR'S NOTE: 

This apparently shows Congressman Jamaal Bowman's lack of political experience of the political system. 

We are still waiting for our interview with Congressman Bowman about his trip to the Southern Border. By the way Congressman Bowman that is five times longer than 26 days.

What are you hiding Congressman Jamaal Bowman about your trip to the Southern Border?