U.S. Attorney Announces The Arrest Of 13 Individuals For $100 Million Healthcare Fraud, Money Laundering, And Bribery Scheme

 

Two Indictments Charge the Defendants, Including an NYPD Police Officer, Doctors, an Attorney, and Others, With Healthcare Fraud, Money Laundering, Bribery, and Other Offenses in One of the Largest No-Fault Automobile Insurance Fraud Takedowns in History

 Damian Williams, the United States Attorney for the Southern District of New York,  Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Miriam E. Rocah, the Westchester County District Attorney, Kevin P. Bruen, Superintendent of the New York State Police (“NYSP”), and Keechant Sewell, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of two indictments charging 13 individuals – including an NYPD police officer, licensed physicians, an attorney, and others – in connection with a $100 million automobile insurance fraud scheme. 

Of the 13 defendants, eight are charged in an indictment detailing conspiracies to commit healthcare fraud, money laundering, bribery, and obstruction, making false statements to federal authorities, and aggravated identity theft.  The charges are set forth in United States v. Alexander Gulkarov, et al., 22 Cr. 20 (the “Gulkarov Indictment”), which has been assigned to U.S. District Judge Failla.  Five additional defendants are separately charged in United States v. Bradley Pierre, et al., 22 Cr. 19 (the “Pierre Indictment”), which has been assigned to U.S. District Judge Torres.

Of those defendants, ten were arrested this morning in New York and New Jersey and are scheduled to appear before U.S. Magistrate Barbara Moses in Manhattan federal court later today.  An eleventh defendant, Alexander Gulkarov, was arrested in Miami, Florida, and is scheduled to appear before a U.S. Magistrate Judge in the Southern District of Florida later today.

U.S. Attorney Damian Williams said:  “The thirteen defendants charged in today’s indictments are alleged to have collectively perpetrated one of the largest no-fault insurance frauds in history.  In carrying out their massive scheme, among other methods, they allegedly bribed 911 operators, hospital employees, and others for confidential motor vehicle accident victim information. With this information, they then endangered victims by subjecting them to unnecessary and often painful medical procedures, in order to fraudulently overbill insurance companies. Schemes exploiting no-fault insurance laws – which ironically exist to make insurance more affordable – also result in higher costs, and unfairly burden all consumers in the auto insurance market.” 

FBI Assistant Director Michael J. Driscoll said: “No-fault accident schemes, like the one alleged today, can cost insurance companies millions of dollars in payouts to doctors and clinics who provide phony or unnecessary services to unwitting accident victims. This cost is almost always passed to consumers of private insurance or subsidized programs established to help those in need. This is a dangerous game in which the penalties include federal criminal charges.”

Westchester County District Attorney Miriam E. Rocah said:  “This case is a perfect example of federal, state and local law enforcement working in partnership to investigate and take down two criminal organizations that allegedly defrauded insurance companies and exploited vulnerable individuals by subjecting them to unnecessary, harmful, and sometimes painful, medical treatments for the sake of greed and profit. We will continue to work with our law enforcement partners to hold accountable those who manipulate the insurance system on which so many people depend, especially when the alleged perpetrators are professionals who allegedly violated the oaths they took to serve and protect.” 

State Police Superintendent Kevin P. Bruen said: “These indictments are the result of years of investigative work and could not have succeeded without the collaboration between federal, state and local law enforcement.  Our investigation uncovered a large-scale, complex scheme that resulted in millions of dollars of fraudulent insurance claims. This type of fraud impacts the entire system and results in higher costs for companies and policyholders. I commend our members and our law enforcement partners for their work on this case, and we are sending a clear message that we will not tolerate fraud on any level.”

NYPD Commissioner Keechant Sewell said: “Today’s indictments reflect schemes to profit by exploiting victims’ through fraud. I commend the NYPD detectives, FBI agents and prosecutors of the United States Attorney’s Office in the Southern District of New York for their long-term efforts and cooperation in this investigation into alleged healthcare fraud, money laundering and bribery. Together, we will continue to be relentless in fighting crime that impacts the people we serve wherever, and however, it occurs."

According to allegations contained in the Indictments[1] unsealed today in Manhattan federal court:  

Background of the Investigation

Since 2017, the U.S. Attorney’s Office for the Southern District of New York, the FBI, and the Westchester County District Attorney’s Office have been investigating several criminal organizations involved in a widespread healthcare fraud and bribery scheme that utilized the New York and New Jersey no-fault automobile insurance regime to earn millions of dollars in illegal profits.

New York and New Jersey no-fault insurance laws require a driver’s automobile insurance company to pay automobile insurance claims automatically for certain types of motor vehicle accidents, provided that the claim is legitimate, and is below a particular monetary threshold (the “No-Fault Laws”).  Pursuant to these requirements, insurance companies will often pay medical service providers directly for the treatment they provide to automobile accident victims, without the need to bill the victims themselves.  This process resolves automobile claims without apportioning blame or fault for the accident, thereby avoiding protracted disputes, and the costs associated with an extended investigation of the accident. 

The Gulkarov Indictment

The Gulkarov Indictment charges eight individuals (the “Gulkarov Conspirators”) with participating in a scheme to exploit the No-Fault Laws.  As part of the scheme, the Gulkarov Conspirators fraudulently owned and controlled more than a dozen medical professional corporations – including medical, acupuncture, and chiropractic practices – by paying licensed medical professionals to use their licenses to incorporate the professional corporations (collectively, the “Gulkarov Clinics”).  The Gulkarov Conspirators further defrauded automobile insurance companies by billing insurance companies for unnecessary, harmful, and excessive medical treatments and lying under oath to insurance company representatives.

The Gulkarov Conspirators promoted the scheme through bribery.  The Gulkarov Conspirators paid hundreds of thousands of dollars to co-conspirators (the “Runners”), who used this money to bribe 911 operators, hospital employees, and others for confidential motor vehicle accident victim information.  The Runners then used this information to contact automobile accident victims, lie to them, and induce them to seek medical treatment at, among other places, the Gulkarov Clinics.

The Gulkarov Conspirators laundered the proceeds of the fraud scheme through law firms, check-cashing entities, and shell companies, and used the money to pay for luxury cars, watches, and vacations.  Then, when certain members of the conspiracy learned that they were under federal criminal investigation, they obstructed justice by fabricating documents, lying to law enforcement, and committing perjury before a federal grand jury.

As alleged, the leaders of the Gulkarov Conspirators are non-physicians, including ALEXANDER GULKAROV, a/k/a “Little Alex,” ROMAN ISRAILOV, a/k/a “Roman Matatov,” PETER KHAIMOV, a/k/a “Peter Khaim,” and ANTHONY DIPIETRO.  ROLANDO CHUMACEIRO, a/k/a “Chuma,” and MARCELO QUIROGA are licensed medical practitioners who incorporated medical practices as part of the scheme, prescribed unnecessary and excessive medical treatments, and overbilled insurance companies under the No-Fault Laws.

The Gulkarov Indictment also includes charges against an attorney, ROBERT WISNICKI, Esq., who is the founding partner of two New York-based law firms.  As alleged, WISNICKI laundered hundreds of thousands of dollars of illicit proceeds for the leaders of the Gulkarov Conspiracy and concealed these transfers by fabricating retainer agreements, lying to law enforcement, and committing perjury before a federal grand jury.  

Finally, the Gulkarov Indictment includes a charge against an NYPD police officer, ALBERT ARONOV.  As alleged, as part of the scheme, ARONOV logged into NYPD computers during off-hours and searched for confidential motor vehicle accident reports on the NYPD’s servers.  ARONOV then took photos of the reports using a pre-paid “burner” phone and transmitted the photos to the leaders of the Gulkarov Conspiracy using an encrypted messaging application.  The leaders then used the confidential information contained in these reports to contact the motor vehicle accident victims, lie to them, and steer them to the Gulkarov Clinics for medical treatment.  When later questioned by federal agents, ARONOV lied about his involvement in accessing and disseminating the confidential motor vehicle accident reports.

All told, the Gulkarov Conspirators billed insurance companies for more than $30 million in fraudulent medical treatments.

The Pierre Indictment

The Pierre Indictment separately charges five additional individuals (the “Pierre Conspirators”) with participating in a second criminal scheme to exploit the No-Fault Laws.  The Pierre Conspirators fraudulently owned and controlled five medical services corporations – including medical clinics and a magnetic resonance imaging (“MRI”) center – by paying licensed medical professionals to use their licenses to incorporate the professional corporations (collectively, the “Pierre Clinics”).  The Pierre Conspirators further defrauded automobile insurance companies by billing insurance companies for unnecessary, harmful, and excessive medical treatments, falsifying clinical injuries in reports, and lying under oath to insurance company representatives.

The Pierre Conspirators promoted the scheme through bribery.  Like the Gulkarov Conspirators, the Pierre Conspirators also paid hundreds of thousands of dollars to the Runners, who used this money to pay bribes for confidential motor vehicle accident victim information.  The Runners then used this information to induce victims to seek medical treatment at, among other places, the Pierre Clinics.

The Pierre Conspirators laundered the proceeds of the fraud scheme through phony loan arrangements and shell companies.

As alleged, the leader of the Pierre Conspiracy is BRADLEY PIERRE, who is not a physician.  PIERRE conducted much of the No-Fault Scheme from his physical office located in a law firm owned by a family member (“Law Firm-2”), where, among other things, he monitored the Pierre Clinics using closed circuit TV cameras, communicated with co-conspirators using Law Firm-2’s email domain, and met with doctors in Law Firm-2’s offices.   PIERRE further openly communicated with Law Firm-2 about the scheme, for instance telling his family member, “I'm going to make sure you ALWAYS make your quota.”  Law Firm-2 paid PIERRE over $4 million in connection with the No-Fault Scheme – typically from Law Firm-2’s Interest on Lawyers Trust Accounts (“IOLA Accounts”) – while maintaining no documentation or ledgers identifying the purpose of these payments.

The Pierre Indictment further charges two licensed medical practitioners with participating in the scheme.  MARVIN MOY is a medical doctor who incorporated a medical practice as part of the scheme and agreed with PIERRE to conduct unnecessary and painful electrodiagnostic testing on patients.  WILLIAM WEINER is a doctor of osteopathic medicine who incorporated a medical imaging facility as part of the scheme and agreed with PIERRE to falsify findings of clinical injuries in MRIs in order to boost patient referrals.

Finally, the Pierre Indictment charges two individuals for conspiring with PIERRE to pay bribes in order to facilitate the scheme.  ARTHUR BOGORAZ is a paralegal and manager at a New York-based personal injury law firm (“Law Firm-1”).  Among other things, BOGORAZ and PIERRE agreed to jointly pay bribes for patient and client referrals to the Pierre Clinics and Law Firm-1.  ANDREW PRIME is a Runner who bribed 911 operators and operated an additional call center as part of the scheme.

All told, the Pierre Conspirators billed insurance companies for more than $70 million in fraudulent medical treatments.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by a judge.

Mr. Williams praised the work of the FBI, the New York State Police, the New York City Police Department, the New York City Department of Financial Services, the Westchester County District Attorney’s Office, and the National Insurance Crime Bureau.  Mr. Williams noted that the investigation is ongoing.                                                                                                                                                     

Gulkarov Indictment

Defendant	Age	Hometown	Charges (Potential Maximum Term of Imprisonment)
ALEXANDER GULKAROV, a/k/a “Little Alex”			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, obstruction conspiracy, aggravated identity theft (42 years)
ROMAN ISRAILOV			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, aggravated identity theft (37 years)
PETER KHAIMOV, a/k/a “Peter Khaim”			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, aggravated identity theft (37 years)
ANTHONY DIPIETRO			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy; obstruction conspiracy (40 years)
ROLANDO CHUMACEIRO, a/k/a “Chuma”			Healthcare fraud conspiracy (10 years)
MARCELO QUIROGA			Healthcare fraud conspiracy (10 years)
ROBERT WISNICKI			Money laundering conspiracy, obstruction conspiracy (25 years)
ALBERT ARONOV			False statements (5 years)

 

Pierre Indictment

 

BRADLEY PIERRE			Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, aggravated identity theft (37 years)
MARVIN MOY			Healthcare fraud conspiracy, money laundering conspiracy (30 years)
WILLIAM WEINER			Healthcare fraud conspiracy, money laundering conspiracy (30 years)
ARTHUR BOGORAZ			Travel Act Conspiracy (5 years)
ANDREW PRIME			Travel Act Conspiracy (5 years)

 

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

Comptroller Brad Lander Opposes Mayor’s Premature Proposal to Increase NYC’s Debt Capacity by $19 Billion

 

 On Tuesday, as part of a Preliminary Offering Circular issued by the New York City Transitional Finance Authority (TFA), the Mayor’s Office of Management and Budget (OMB) announced that the Adams Administration intends to pursue State legislation to increase the total amount of debt the TFA is authorized to issue outside of City’s debt limit by an additional $19 billion, more than doubling the current authorization of $13.5 billion.

 

New York City Comptroller Brad Lander believes that OMB’s request for additional bonding capacity is neither necessary nor fiscally prudent at this moment. While the City may need to seek an increase to its debt limit before FY25 or FY26 in order to address its infrastructure needs, the City’s projections show sufficient borrowing capacity to meet the current capital plan for the next three years. Before seeking an increase, Comptroller Lander believes that the City must first determine what infrastructure needs can be addressed through the recent Federal infrastructure bill, better assess the pandemic’s long-term impact on property values and the City’s budget, and begin to reform its capital project management practices to get the most out of existing resources. The Comptroller will oppose the request to Albany at this time. 

 

“It is premature for the Mayor to seek a $19 billion increase to our debt capacity so early in the new term,” said Comptroller Brad Lander. “We must invest wisely in our city’s future, mindful of the risks that aging infrastructure and climate change pose to our streets, transit, and buildings. But the conversation about our debt capacity should start from an assessment of our actual infrastructure needs and the capacity to meet them over the coming years. The proposal by the Mayor’s Office of Management and Budget, expressed to investors in the offering circular published by the Transitional Finance Authority, follows no such assessment.

 

“First, the Federal Infrastructure Investment and Jobs Act, signed into law on November 15, 2021, represents an enormous opportunity for New York City, and we need to determine more clearly what resources will be made available to the City of New York. The Mayor’s team needs to develop and present a fuller picture of our infrastructure needs in the coming years, before we seek a $19 billion increase in debt to pay for them. 

 

“Second, we need a clearer picture of the City’s long-term finances. The City’s debt limit is based on the five-year average of the full value of taxable real estate in the City, and the pandemic’s impact on property values has yet to settle into predictable patterns following the historic decreases caused by the COVID-19 pandemic. Rather than seek an arbitrary increase, we should look to set an investment level tied to projected revenues.  

 

“Finally, we have a critical opportunity – one we cannot afford to waste – to reform the City’s capital project management practices, in order to maximize the limited resources we have. The City’s capital projects are notorious for going over-budget and over-time. Meanwhile, the City’s Capital Commitment Plan has historically substantially overstated the amount of actual capital commitments entered into in any given year, thereby using up less debt capacity than currently projected. Before we seek an additional $19 billion in borrowing capacity, we should make sure we are prepared to invest it more efficiently.

 

“We simply do not have an urgent need to rush into this large increase,” continued Comptroller Lander. “We currently have sufficient borrowing capacity to cover our project capital investment needs for the next three years. Seeking legislative authorization for additional bonding capacity is neither necessary nor fiscally prudent at this moment. Let’s first make sure we have a plan to use these critical long-term investment resources wisely.”

 

Background: 

 

The NYC TFA is a public benefit corporation created by New York State in 1997 to provide an alternative to General Obligation bond financing of the City’s capital program, at a time when the City’s debt limit had been reduced as a result of declining property values to a level that would have prevented the City from entering into new capital contracts in the near future. Current law provides that TFA Future Tax Secured bonds in excess of $13.5 billion outstanding are subject to the City’s constitutional debt limit, together with outstanding City General Obligation Bonds. 

 

The City’s June 30, 2021 projections show that in Fiscal Year 2025, the City’s debt-incurring margin will narrow to $4.7 billion, an amount of available borrowing capacity that assumes all currently planned capital commitments are entered and financed. 

 

Historically the City’s capital commitment rate peaked in 2019 at 63%, leaving a high likelihood that current projections will not reflect the actual amount of debt capacity under the City’s current debt limit three years out. If the increased authorization being sought is enacted into law, the TFA would be authorized to have a total of $32.5 billion of bonds outstanding outside of the City’s debt limit, increasing the City’s total debt capacity to approximately $160 billion in the current fiscal year.

SUNY SULLIVAN PROFESSOR ARRESTED FOR FORGING GRANT APPLICATION TO PERSONALLY GAIN $32,000

 

New York State Inspector General Lucy Lang today announced the arrest of a former State University of New York (SUNY) Sullivan professor for allegedly stealing more than $32,000 by forging an application for a grant intended to provide high-need school districts’ K-12 teachers with professional learning opportunities.

Cynthia Marcello, 55, of Hurley, was arraigned in Fallsburg Justice Court before the Hon. Judge Ronald Stabak on a charge of Forgery in the 2^nd Degree (D Felony). Marcello resigned from SUNY in March 2020.

“Dr. Marcello’s alleged forging of a federal grant application for personal profit is an affront to the intention of such programs – providing professional growth and learning opportunities for teachers at high-need school districts,” said Inspector General Lang. “We are grateful to SUNY for promptly bringing the scheme to our attention, and to our law enforcement partners with whom we are working to ensure that she is held accountable. Especially during these difficult times, the resources allocated to New York’s teachers should never be compromised.” 

Marcello was a computer science professor at SUNY Sullivan for 12 years, teaching courses on game development, cybersecurity, and other computer-related topics. An investigation by the Inspector General’s Office found that Marcello, without permission or authorization, falsely completed and signed a grant application on behalf of SUNY Sullivan, with $32,400 coming directly to her instead of the college. 

The Liberty Central School District, in conjunction with Sullivan BOCES, applied for a New York State Education Department federal grant for Title II, Part B Mathematics and Science Partnerships. The grant allows for a higher education institution (in this case, SUNY Sullivan) to enter a partnership with a local high-need school district (Liberty CSD and Sullivan BOCES) to provide teachers with professional learning opportunities. 

The grant was supposed to go through SUNY Sullivan and then be paid to Marcello, of which she should have appropriately received between $1,000 to $3,000 for her work. Investigators discovered that Marcello, who filled out the grant application, listed herself as the vendor on the grant and was paid $32,400 directly (38 percent of the total grant, approximately $750 per hour). Marcello sent invoices to Sullivan BOCES from her personal address so she could be paid directly. As one witness described, Marcello “cut [SUNY Sullivan] out” and “deliberately deceived” the college. 

The investigation discovered that Marcello was listed on multiple grants in the past, all of which were appropriately run through the college and resulted in pay significantly less than what she earned through the alleged scheme. 

Upon discovering Marcello’s direct payments, SUNY Sullivan contacted the New York State Police, which in turn referred the matter to the Inspector General. The Inspector General partnered with the New York State Police and the United States Department of Education – Office of the Inspector General (DOE-OIG). Inspector General Lang thanked these partners, as well as the Sullivan County District Attorney’s Office for prosecuting the case and the New York State Police for conducting the arrest. 

The defendant is presumed innocent until and unless proven guilty in a court of law. 

Governor Hochul, with Interior Secretary Haaland and Governor Murphy, Announces Historic Wind Energy Auction Off New York and New Jersey Coast

 

New York Bight Lease Sale Has Potential to Generate Up to Seven Gigawatts of Clean Energy, Power Nearly Two Million Homes

 Governor Kathy Hochul today in conjunction with United States Secretary of the Interior Deb Haaland, New Jersey Governor Phil Murphy and AFL-CIO President Liz Shuler announced that the Bureau of Ocean Energy Management (BOEM) will be holding a wind auction on February 23 for an area consisting of 488,000 acres located in the New York Bight, along with a plan for a coordinated offshore wind supply chain effort between New York, New Jersey and BOEM, titled "A Shared Vision on the Development of an Offshore Wind Supply Chain." This announcement builds on the nation-leading offshore wind priorities outlined in Governor Hochul's 2022 State of the State and represents a significant step forward in advancing the Climate Leadership and Community Protection Act goal to develop 9,000 megawatts of offshore wind by 2035.

"Here in New York, we are already living with the effects of climate change through extreme weather that pose a direct threat to our way of life," Governor Hochul said. "We must chart an ambitious path toward a cleaner energy economy now more than ever, and today's milestone further highlights New York's commitment to reaching its offshore wind goals. This effort will require collaboration at all levels, and I applaud the Biden Administration for their action and thank Secretary Haaland and BOEM, as well as New Jersey Governor Murphy, for their partnership as we build on New York's offshore wind energy development."

The Feb. 23 auction will allow offshore wind developers to bid on six lease areas - the most areas ever offered in a single auction - as described in BOEM's Final Sale Notice. Leases offered in this sale could result in 5.6 to 7 gigawatts of offshore wind energy, enough to power nearly 2 million homes. As offshore wind technology continues to advance, these areas may have the potential to produce even more clean energy.

On today's call, the leaders outlined a shared vision for developing a robust offshore wind domestic supply chain that will deliver benefits to residents of New York and New Jersey and the surrounding region, including underserved communities. This collaboration will serve as a model for future engagement and establish the U.S. as a major player in the global offshore wind market.

The New York Bight offshore wind auction will include several innovative lease stipulations designed to promote the development of a robust domestic U.S. supply chain for offshore wind and enhance engagement with Tribes, the commercial fishing industry, other ocean users, and underserved communities. The stipulations will also advance flexibility in transmission planning and make use of project labor agreements throughout the construction of offshore wind projects. Stipulations include incentives to source major components domestically - such as blades, turbines, and foundations - and to enter into project labor agreements to ensure projects are union-built.

The Biden-Harris administration's goal to install 30 GW of offshore wind by 2030 is complemented by state offshore wind policies and actions throughout the Northeast and Mid-Atlantic. Collectively, New York and New Jersey have set the nation's largest regional offshore wind target of installing over 16 GW of offshore wind by 2035.

Secretary of the Interior Deb Haaland said, "The Biden-Harris administration has made tackling the climate crisis a centerpiece of our agenda, and offshore wind opportunities like the New York Bight present a once-in-a-generation opportunity to fight climate change and create good-paying, union jobs in the United States. We are at an inflection point for domestic offshore wind energy development. We must seize this moment - and we must do it together."

Governor Phil Murphy said, "Offshore wind holds tremendous promise for our future in terms of climate change, economic growth, strengthening our work force, and job creation. New Jersey is already committed to creating nearly one-quarter of the nation's offshore wind-generation market and these transformative projects are proof that climate action can drive investments in infrastructure and manufacturing, while creating good-paying, union jobs. By acting on this shared vision, we can promote our joint offshore wind goals, and deliver benefits to residents of both states, particularly those in overburdened communities. Together, with this critical cooperation with the Biden-Harris Administration and our state partners, we will turn this vision of becoming a leader in the global offshore wind market into a reality." 

A recent report indicates that the United States' growing offshore wind industry presents a $109 billion opportunity in revenue to businesses in the supply chain over the next decade.   

These additions are intended to promote offshore wind development in a way that coexists with other ocean uses and protects the ocean environment, while also facilitating our nation's energy future for generations to come. 

In addition, Governor Hochul announced plans to invest in offshore wind infrastructure, procure enough wind energy to power at least 1.5 million homes, initiate planning for an offshore wind transmission network, and launch the offshore wind Master Plan 2.0 Deep Water in her 2022 State of the State address. This will ensure that the state has the strongest offshore wind energy market along the Eastern Seaboard. The Governor's plan for offshore wind will support more than 6,800 jobs, a combined economic impact of $12.1 billion statewide, and more than 4.3 gigawatts of energy, enough to power nearly 3 million homes in New York.

First Olympic Anti-Doping Charges Filed In Manhattan Federal Court

 

Eric Lira Allegedly Distributed Multiple Performance Enhancing Drugs in an Effort to Corrupt the 2020 Tokyo Olympics

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of the first criminal charge under the Rodchenkov Anti-Doping Act, signed into law on December 4, 2020, which proscribes doping schemes at international sports competitions, including the Olympic Games. The Complaint unsealed today alleges that ERIC LIRA, a “naturopathic” therapist operating principally in the area of El Paso, Texas, obtained various performance enhancing drugs (“PEDs”) and distributed those PEDs to certain athletes in advance of, and for the purpose of cheating at, the 2020 Olympic Games held in Tokyo in the summer of 2021. LIRA was taken into federal custody today and is expected to be presented in the Western District of Texas today before U.S. Magistrate Judge Miguel A. Torres.  

U.S. Attorney Damian Williams said:  “At a moment that the Olympic Games offered a poignant reminder of international connections in the midst of a global pandemic that had separated communities and countries for over a year, and at a moment that the Games offered thousands of athletes validation after years of training, Eric Lira schemed to debase that moment by peddling illegal drugs. The promise of the Olympic Games is a global message of unification. Today, this Office sends a strong message to those who would taint the Games and seek to profit from that corruption.”

FBI Assistant Director Michael J. Driscoll said: “Performance enhancing substances deprive competitors of a level playing field.  We allege Mr. Lira knew he was breaking the rules when he communicated with Olympians through an encrypted messaging app to hide his illegal activity.  It's not winning if you take illegal substances - it's cheating, and Mr. Lira will now be forced to face the consequences of his alleged criminal actions.”

As alleged in the Complaint unsealed today in Manhattan federal court:[1]

The charges in this Complaint arises from an investigation of a scheme to provide Olympic athletes with PEDs, including drugs widely banned throughout competitive sports such as  human growth hormone and the “blood building” drug erythropoietin, in advance of and for the purpose of corrupting the 2020 Olympic Games, which convened in Tokyo in the summer of 2021. LIRA, who claims to be a “kinesiologist and naturopathic” doctor operating principally in and around El Paso, Texas, obtained misbranded versions of these, and other, prescription drugs from sources in Central and South America, before bringing those drugs into the United States and distributing them to, among other, the two athletes referred to in the Complaint as “Athlete-1” and “Athlete-2.” Throughout the scheme, LIRA and Athlete-1 communicated via encrypted electronic communications discuss the sale, shipment, and use of LIRA’s illegal drugs, and specifically discussed the “testability” of those drugs by anti-doping authorities. For example, on or about June 13, 2021, Athlete-1 wrote to LIRA, “So I took 2000ui of the E [erythropoietin] yesterday, is it safe to take a test this morning?” LIRA replied, “Good day [Athlete-1] . . . . 2000 ui is a low dosage.” Athlete-1 replied further, “Remember I took it Wednesday and then yesterday again / I wasn’t sure so I didn’t take a test / I just let them go so it will be a missed test.”

LIRA and Athlete-1, in particular, explicitly acknowledged the effectiveness of the doping program achieved through the use of LIRA’s illegal drugs. On or about June 22, 2021, Athlete-1 wrote to LIRA, “Hola amigo / Eric my body feel so good / I just ran 10.63 in the 100m on Friday / with a 2.7 wind / I am sooooo happy / Ericccccccc / Whatever you did, is working so well.” Shortly thereafter, and in advance of Athlete-1’s arrival in Tokyo to compete in the 2020 Olympics, LIRA encouraged his client: “What you did . . . is going to help you for the upcoming events. You are doing your part and you will be ready to dominate” (ellipsis in original).

Notwithstanding the attempt to evade anti-doping tests, LIRA and Athlete-1 were discovered in their scheme. On or about July 19, 2021, Athlete-1underwent an out-of-competition blood collection for purposes of drug testing by the Athletics Integrity Unit, a body charged with ensuring fair competition and prevention of doping at the Tokyo Olympics, among other competitions. The results of that testing reflected Athlete-1’s use of human growth hormone. On or about July 30, 2021, Athlete-1 was provisionally suspended from Olympic competition, including in the women’s 100m semi-finals set to take place that same evening.

LIRA is the first defendant charged pursuant to the recently enacted Rodchenkov Act. On December 4, 2020, the Rodchenkov Act was signed into law, Pub. L. 116-206, and incorporated into Title 21 of the United States Code at sections 2401 through 2404. The Rodchenkov Act prohibits any person, other than an athlete, to knowingly carry into effect, attempt to carry into effect, or conspire with any other person to carry into effect a scheme in commerce to influence by use of a prohibited substance or prohibited method any major international sports competition. 21 U.S.C. § 2402.

ERIC LIRA, 41, of El Paso, Texas, is, in addition to the charge under the Rodchenkov Act, accused of conspiring with others to violate the drug misbranding and adulteration laws of the United States, in violation 18 U.S.C. § 371 and 21 U.S.C. §§ 331 & 333(a)(2). The maximum term of imprisonment under the Rodchenkov Act is 10 years, and the maximum term of imprisonment for conspiring to violate the misbranding laws is 5 years. These maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge assigned to each case.

Mr. Williams praised the outstanding investigative work of the FBI and the FBI’s Integrity in Sports and Gaming Initiative.  Mr. Williams also thanked the United States Anti-Doping Agency for their support of this investigation.

The charges contained in the Complaint are merely accusations 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 descriptions of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.

Albany Legislators Solely Responsible for Creating Fair and Representative Maps

 

Albany legislators voted down the Independent Redistricting Commission’s maps. Now, the maps head back to the commission, which has two weeks to reconfigure and resubmit plans for another shot at lawmakers’ approval. The Independent Redistricting Commission released two sets of draft maps after failing to reach bipartisan consensus earlier this month. The maps detail the districts for New York’s congressional and state legislative seats. With the Democrats holding a very narrow majority in the U.S. House of Representatives, these maps will have a national impact.  Murad Awawdeh, Executive Director of NYIC Action, issued the following statement: “We worked too hard to ensure immigrants were counted in the census to have our efforts undone by bureaucrats with a political agenda. Albany lawmakers must use all public input submitted to the Commission through the fall and hold a hearing for public comment after they finish drawing their maps and before they vote on them. Immigrants and communities across New York State deserve fair districts, and this is our one chance to get them this decade. Our State Legislature must deliver for New Yorkers and draw maps that are inclusive of all public input and protect minority voting rights and ensure fair representation for all.”    Background: NYIC Action is the lead facilitator of the Mapping Our Future campaign, a statewide coalition of 100+ grassroots organizations engaged in sustained and sophisticated political advocacy to protect immigrants and communities of colors’ power in the redistricting process.

Ocasio-Cortez PAC Releases Endorsement Questionnaire

 

FOR IMMEDIATE RELEASE January 12, 2022   Courage to Change PAC Releases Policy Pledge Questionnaire for Local, Federal & State Candidates  Today, the Courage to Change PAC released a national questionnaire for candidates running in state, local and federal races in 2022. Candidates who successfully complete the questionnaire will receive the ‘Courage to Change Policy Pledge Distinction,’ which is designed to help constituents identify candidates who are committed to social, racial and economic justice. As part of the questionnaire, candidates are asked to make a range of policy commitments - including rejecting all donations from corporate PACs; increasing funding for crisis response services; making public undergraduate programs free; ending exclusionary zoning; repealing the Faircloth and Hyde amendments; and limiting cooperation between local law enforcement and federal immigration authorities. The full questionnaire can be found here.  Multiple candidates in the same race can receive the ‘Courage to Change’ Policy Pledge Distinction. The distinction does not serve as an endorsement from Rep. Ocasio-Cortez, or the Courage to Change PAC. The Courage to Change Policy Pledge Distinction was used for the first time in 2021 in the New York City council races. Sixteen candidates who received the distinction won office - including Shahana Hanif, the first Muslim American woman elected to New York City Council.  The Courage to Change PAC was founded by Rep. Ocasio-Cortez with the goal of elevating candidates who display political courage — people who refuse to bow to establishment pressure, who advocate ferociously for working-class families, and who have lived the same struggles as the people they seek to represent. More information is available here. EDITOR'S NOTE: This information is being provided to all candidates who are running for office as described at the top of the page.  As stated it is not an endorsement of either Congresswoman Ocasio-Cortez, or the Courage for Change PAC itself. As stated there can be multiple candidates in the same race who receive this distinction. The link to the application is provided in the first link titled the full questionnaire can be found here, and to learn more about the Courage for Change PAC information is available at the link at the end of the last paragraph.  Candidates requiring more information should, email: lauren@ocasiocortez.com

HPD Reveals River Commons Affordable Housing Property In Concourse, The Bronx

 

Rendering of River Commons (Site A) - Photo courtesy of Bernheimer Architecture

The New York City Department of Housing Preservation and Development (HPD) has revealed the first of two new affordable housing properties in the southwest corner of The Bronx. Located in Concourse near the intersection of River Avenue and East 168th Street, Site A will eventually debut as River Commons and will comprise 278 affordable apartments.

Site A currently functions as a surface-level parking lot owned by the New York City Health and Hospitals Corporation, also known as H+H. Following a two-year request for proposal process, HPD has selected Type A Projects, L+M Development Partners, and BronxWorks as its development partners for the new building.

“The selected project for the River Avenue H+H site will transform a surface parking lot into affordable housing and community space for the Southwest Bronx, making good on our commitments to the community in the Jerome Avenue Neighborhood Plan,” said HPD commissioner Louise Carroll. “I’m thankful to Council Member Vanessa Gibson for her ongoing partnership and want to congratulate Type A, L+M, and BronxWorks for this dynamic, forward-looking proposal.

Designed by Bernheimer Architecture, the building is shown with a light-colored brick façade and a grid of punched windows with red accenting. The narrow northern elevation remains mostly blank and is shown covered in a large street art mural.

Site A’s mix of apartments will include 112 studios, 89 one-bedrooms, 63 two-bedrooms, and 14 three-bedroom units. The ground floor will house two separate community facilities and support services providers.

The first is The African Resource Center, a collaboration between the African Advisory Council and African Communities, and will provide educational programs, services, and community meeting space to the fast-growing and underserved African community in the project area. Today, the area is home to the highest concentration of African language speakers in New York.

The BronxWorks Empowerment Center will provide an extensive range of services for the community including health and nutrition education, fresh food access, after-school and summer camp programming, family support, eviction prevention, as well as job readiness, training, and employment services. BronxWorks will also provide support services for formerly homeless residents living at River Commons.

As part of the development agreement, L+M is expected to exit the ownership structure at year five, offering its initial ownership stake to BronxWorks for a nominal fee.

“BronxWorks is thrilled to partner with Type A Projects, a woman-led development team, as their development partner and supportive housing services provider at River Commons, which will offer much-needed affordable housing in the Bronx,” said Eileen Torres, executive director of BronxWorks. “We also look forward to expanding our work in the borough providing residents and the local community, which includes many immigrants, with after-school, job training, eviction prevention, and health and wellness services through our on-site Empowerment Center.”

Site B is located at 1640-1642 Anthony Avenue in the Claremont section of The Bronx. Designed by Robert A.M. Stern, the building will include 40 low-income homeownership opportunities reserved for low-income households. The eight-story structure will comprise 20 one-bedroom, 16 two-bedroom, and four three-bedroom apartments.

To complete Site B, HPD has partnered with Habitat NYC, Camber Property Group, and Almat Urban, and Interboro Community Land Trust (CLT).

Both development sites will be built on the Jerome Avenue Neighborhood Plan. Released in 2017, the plan aims to improve access to affordable housing opportunities in The Bronx and surrounding communities.

“Building on our Type A partnership from Bronx Point, L+M is proud to lend its financial support to this transformative project that not only advances our mission to support MWBEs by expanding Type A and BronxWorks’ portfolios, but will also bring much-needed affordable housing and tailored community resources to meet the needs of the neighborhood,” said Spencer Orkus, partner and managing director at L+M Development Partners. “We look forward to working with the project partners throughout the process to ensure River Commons is a safe, quality place to live and meets the goals of the Jerome Avenue rezoning.”

Thus far, the rezoning is bringing more than $189 million in capital projects and services to the Bronx neighborhood in new and improved parks and playgrounds, pedestrian safety improvements near the Cross Bronx Expressway, business assistance, and new schools.