Former Owner of Long Island Commercial Check Cashing Companies Sentenced to 48 Months in Prison for Fraud Scheme

 

John Drago Structured Transactions to Assist Customers in Evading Taxes and Operated an Off-the-Books Payroll; Concealed More Than $9.5 Million from IRS

 John Drago, the former owner/operator of several check cashing businesses on Long Island, was sentenced to 4 years in prison for illegally structuring financial transactions and payroll tax evasion. The proceeding took place before United States District Judge Gary R. Brown.  In addition to his prison sentence, Judge Brown ordered Drago to forfeit $253,000 and to pay restitution of approximately $593,000.  Drago pleaded guilty to fraud charges in September 2021.  As a result of his plea, Drago was required to surrender his check cashing licenses, his federal money services business registrations and he is barred from applying for any such licenses or registrations in the future.

Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI) announced the sentence.

“Drago operated his check cashing business as a haven for tax cheats like himself, concealing over $9.5 million from the federal government,” stated United States Attorney Peace.  “Today’s sentence demonstrates that significant consequences follow business owners who place greed above public good.” 

Mr. Peace expressed his thanks to the New York State Department of Financial Services for their assistance.

"Drago used his seemingly legitimate check cashing business to defraud the government while lining his pockets.  Over several years, he used his employees do his dirty work and, at his request, they cashed checks in a way to avoid IRS reporting requirements, concealing more than $9.5 million in check cashing transactions.  His scheme to make some extra cash has now resulted in him spending time behind bars, where he will no longer have any pockets to be lined," said Thomas Fattorusso, Special Agent in Charge of IRS-CI.

According to court filings and facts presented at the plea and sentencing proceedings, Drago owned and operated check cashing businesses on Long Island, including Kayla Check Cashing Corp., North Island Check Cashing Corp., South Island Check Cashing Corp., East Island Check Cashing Corp., Bay Shore Check Cashing Corp. and Brentwood Check Cashing Corp. (collectively, the “Kayla Companies”).  Financial institutions are required to file a Currency Transaction Report (CTR) for each cash transaction in excess of $10,000.  In addition, a CTR is required to be filed by the financial institution when multiple checks, the total value of which exceeds $10,000, are cashed in a single day.

From January 2010 to October 31, 2013, Drago instructed employees to cash multiple checks in excess of $10,000 in a single day for certain customers without filing required CTRs.  In addition, to avoid the required CTR filings, Drago directed employees to deposit and cash checks that had been submitted together on a single day in amounts in excess of $10,000.  Drago also instructed employees to tell certain customers who presented individual checks in amounts exceeding $10,000 to return with multiple checks in amounts that were less than $10,000 to avoid the reporting requirement for such financial transactions.  As a result of Drago’s scheme, more than $9.5 million in check cashing transactions were concealed from the IRS.

Between April 1, 2012 and July 31, 2013, Drago paid overtime wages and commissions to employees of the Kayla Companies in cash and failed to inform the IRS of the payment of these cash wages.  Drago falsely underreported to the IRS the gross wages paid to his employees to avoid paying the full amount of Federal Insurance Contribution Act taxes that the Kayla Companies owed.  In addition, as part of his plea, Drago agreed to pay restitution to the IRS for evading personal income taxes between 2010 and 2013.  Overall, Drago’s payroll and personal tax evasion cost the IRS approximately $590,000.

AS A GOD-FEARING CHRISTIAN MY DUTY IS TO VOTE IN ELECTIONS - Rev. Ruben Diaz

You should know that on Tuesday, November 8, New York State will be having its General Elections.   As a Citizen you will have the opportunity to select who you want representing you.  You will be voting for our State’s Governor, The State Controller, The State Attorney General, State Senators, State Assemblymember and U.S. Congressmember.

 

It is important for you to know that the Democratic Party Candidates seeking these government positions run their campaigns exclusively on the Abortion Issue and promising the continuation of ending the life of the unborn child through Abortion. These Democratic Candidates support Abortions up until the nineth (9) month, even seconds prior to delivery.  In their campaigns the Democrats label their opponents as “Extremists”, and “Anti-Woman’s Health” because they oppose the killing of a child in the womb.

 

Governor Kathy Hochul Democratic Candidate, for Governor, has made it clear and has spent millions of dollars to announce that she favors abortion and that under her administration New York will be the Abortion Capital of America. To accomplish this, Democratic Candidate Governor Hochul, has promised women from all states to come to New York for Abortions and their expenses will paid by New York State.  

 

Therefore, I am NOT going to vote for Political Parties, instead I will vote for those Candidates who do not support Abortion, candidates who value life and the protection of the unborn child. Jeremiah 1:5, Psalm 22:10, Psalm 127:3, Psalm 139:13.

 

I am NOT going to vote for Political Parties, instead I will vote for Candidates who support the State of Israel and seek the Peace for its Capitol Jerusalem; given that Jerusalem, according to Scripture, is the City of the Great King: Psalm 122:6, Matthew 5:35.

 

I am NOT going to vote for Political Parties, instead I will vote for those Candidates who believe in Law and Order, who support the incarceration of lawbreakers, Cash Bail for criminals, who support law enforcement officers, and who will work to implement policies to reduce crime and help keep our streets safe.  Romans 13:1-6.

 

I Will NOT vote for Political Parties, instead I will be voting for Candidates who Favor Traditional Marriage, which was established by God, since the beginning of Human History.   Genesis 2:24.

 

I will NOT vote for Political Parties, instead I will vote for those candidates who support securing our Nation’s Borders and in reserving our economic Resources to first help our fellow Citizens in need.   1 Timothy 5:8, Galatians 6:10

 

I will NOT vote for Political Parties, and candidates that support using our public-School Classrooms to indoctrinate our children, and who implement curriculums that sexualize our children, teach them racism, and undermine parental authority. Instead, I will vote for Candidates that support parents’ rights, and who believe in parental authority over their children. Hebrews 12:9-11

 

So, my dear friends and readers, I urge you to get out and vote on Tuesday, November 8. Go in person and exercise your Constitutional Right to Vote. When you do, do NOT vote for Political Parties, instead Vote for those Candidates who best are aligned with your values as a Person of Faith and as a Christian.  This is our duty as Citizens and as Christians. 

 

We as Ministers, Pastors have a responsibility to vote and educate our parishioners as people of faith, to vote as Christians and not as Atheists, for the sake of the future of our families, children, and Country. (Proverbs 29:2)

 

I am the Rev. Ruben Diaz, and This Is What You Should Know, 

D.A. BRAGG, DOI COMMISSIONER STRAUBER ANNOUNCE INDICTMENT OF SIX REAL ESTATE DEVELOPERS FOR DEFRAUDING NEW YORK STATE’S 421-A PROGRAM

 

Indictment is First Under Office’s New Housing & Tenant Protection Unit

 Instead, they were rented out at higher rates for years — sometimes more than $1,000 per month above the approved affordable level — to renters who did not qualify for affordable housing. The defendants are charged in five separate New York State Supreme Court indictments with multiple charges including Grand Larceny in the Second Degree, City Criminal Tax Fraud and Offering False Instrument for Filing in the First Degree. [1]Manhattan District Attorney Alvin L. Bragg, Jr. and New York City Department of Investigation Commissioner Jocelyn E. Strauber announced the indictment of developers JOEL KOHN, MICHAEL AMBROSINO, ALEN PAKNOUSH, MENDEL GOLD, IOAN SITA and GHEORGHE SITA, and their real estate corporations, for defrauding New York State’s 421-a tax exemption program meant to promote affordable housing, and collectively reaping more than $1.6 million in illegal property tax benefits.

 The investigation revealed that these developers, who owned six different Brooklyn apartment buildings, allegedly violated the terms of the 421-a program by submitting falsified documents to the City and State, claiming the designated affordable units would be rented to qualified tenants. Under the terms of the program, developers agreed that those affordable apartments can only be rented to income-qualified tenants approved by the New York City Department of Housing Preservation & Development (“HPD”).

 Instead, they were rented out at higher rates for years — sometimes more than $1,000 per month above the approved affordable level — to renters who did not qualify for affordable housing.

 The defendants are charged in five separate New York State Supreme Court indictments with multiple charges including Grand Larceny in the Second Degree, City Criminal Tax Fraud and Offering False Instrument for Filing in the First Degree. [1]

 This indictment comes days after D.A. Bragg announced the Office’s first-ever Housing & Tenant Protection Unit, which targets systemic criminal harassment of tenants and abuse of government programs by landlords and developers.

 “These developers allegedly abused a government program meant to provide New Yorkers access to desperately needed affordable housing. Not only did they illegally charge substantially higher market rents for years, but they did so while personally reaping the benefits of generous property tax abatements. When I announced our Housing & Tenant Protection Unit last week, I said that we would take a targeted approach to complex and pervasive criminal activity that diminished our already limited stock of affordable housing, and this case is an example of just that,” said District Attorney Bragg.

 The buildings involved in the indictment are: 

70 Bushwick Avenue, Brooklyn, owned by JOEL KOHN and BUSHWICK POWERS LLC • 300 Eldert Street, Brooklyn, owned by MICHAEL AMBROSINO and AMBROSINO EQUITIES-300 ELDERT LLC • 682 Bushwick Avenue, Brooklyn, owned by ALEN PAKNOUSH and BUSHWICK PLAZA LLC • 305 Stockholm Street, Brooklyn, owned by IOAN SITA and GHEORGHE SITA and 305 STOCKHOLM LLC • 140 Stanhope Street, Brooklyn, owned by MENDEL GOLD and 140 STANHOPE GROUP, LLC • 1140 Bushwick Avenue, Brooklyn, owned by MENDEL GOLD and 1140 REALTY CORP. LLC

 DOI Commissioner Strauber said, “At a time when affordable housing is crucial for New Yorkers, and for the City’s recovery from the pandemic, these landlords, as charged, enriched themselves by fraudulently obtaining over $1 million in tax credits from the City that were intended to promote affordable housing. Instead, it is alleged that these landlords charged higher rents to New Yorkers, made no attempt to determine if they qualified for such housing, and made misrepresentations to the City to obtain tax credits to which they were not entitled. DOI and our partners at the Manhattan District Attorney's Office and the City Department of Housing Preservation and Development will continue to protect affordable housing benefits for New Yorkers who are eligible for them and hold accountable those who exploit these tax credits for their personal gain.”

 The 421-a program was a tax benefit designed to incentivize the creation of affordable housing within new multi-family apartment buildings. The program grants generous tax breaks to property developers who agree to reserve a certain percentage of the building’s apartments as affordable units.

 Tenants would apply through the City’s Housing Connect portal — also known as the affordable housing lottery — and their applications would be presented to HPD for review and approval. Affordable units can only be occupied by tenants approved by HPD.

  As alleged in court documents and statements made on the record, from 2011 to 2019, the defendants violated the rules of the 421-a program and submitted documents to the City and State falsely attesting that they were renting the designated affordable units in accordance with 421-a rules. In reality, they were renting units at higher rents to unauthorized tenants who had not been approved by HPD.

  [1] The charges contained in the indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.

Two Defendants Convicted of Armed Robbery at Aqueduct Racetrack

 

Racetrack Security Guard was “Inside Man” Who Posed as a Victim During the $280,000 Heist

 A federal jury in Brooklyn convicted Lafayette Morrison of Hobbs Act robbery and conspiracy to commit Hobbs Act robbery in connection with the March 7, 2020 armed robbery of more than $280,000 in cash from Aqueduct Racetrack in South Ozone Park, Queens.  Morrison and co-defendant Lamel Miller were also convicted of brandishing a firearm, and Morrison of obstruction of justice.  Miller pleaded guilty to the robbery in September 2022. When sentenced, the defendants each face minimum sentences of seven years’ imprisonment, and up to life imprisonment.  The verdict followed a five-day trial before United States District Court Judge Ann M. Donnelly. 

Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict. 

“Their armed robbery of Aqueduct Racetrack played out like a Hollywood movie heist, but with a bad ending for the defendants who now face steep prison sentences,” stated United States Attorney Peace.  “This verdict proves once again that it is a losing bet to commit a violent crime and think that you will outrun the law.”

“This should serve as a warning to those who believe that armed robbery will be tolerated by the law enforcement community and the public,” said ATF Special Agent-in-Charge DeVito.  “The men and women of ATF, and our NYPD partners in the ATF Strategic Pattern Armed Robbery and Technical Apprehension (SPARTA) Group, are at work daily to investigate and arrest those who believe they can prey on New Yorkers without consequence. Thanks to the NYPD’s Queens Robbery Squad and U.S. Attorney's office for the outcome of this case.”

“This violent robbery plot, featuring a racetrack security guard who betrayed his duty, showed a callous disregard for several victims,” said NYPD Commissioner Sewell.  “Thanks to our joint law enforcement efforts, those responsible will now bear the consequences of their despicable acts. I want to thank our NYPD officers, the U.S. Attorney for the Eastern District, the ATF’s New York Field Division, and everyone involved in this case for their exceptional work.”

As proven at trial, at approximately 10 p.m. following the Gotham Day stakes races at Aqueduct, Miller and a co-conspirator held up at gunpoint several racetrack employees – including Morrison, who was employed as a racetrack security guard – as they were transporting more than $284,000 in cash earnings to a vault.  Miller and the co-conspirator emerged from their hiding spot in a stairwell and confronted the employees at gunpoint, taking the cash and employees’ cell phones, and forcing the employees into a closet.  Miller and the co-conspirator then went to a hotel where they divided up the robbery proceeds; they each took $100,000 and gave the remaining $84,000 to Morrison who had posed as a victim during the robbery, but who was actually the robbery crew’s “inside man,” providing information in advance about where and when the money would be transported to the vault.  When interviewed by federal law enforcement officers after the robbery, Morrison repeatedly lied to officers, including by claiming to be a victim of the crime and misidentifying a photograph of his childhood friend, Miller. 

NYPD Commissioner Announces Chief of Department Kenneth E. Corey Will Retire

 

Dedicated Departmental Leader Caps Distinguished NYPD Career

Police Commissioner Keechant L. Sewell announced that Chief of Department Kenneth E. Corey, a 34-year veteran of the New York City Police Department who has served since January as the department’s highest-ranking uniformed officer, has decided he will be retiring at the end of November.

Chief Corey joined the department as a police cadet in 1988. He became a sworn police officer in July 1990, and started his career on patrol in Brooklyn’s 62nd Precinct. During his long and distinguished career in the NYPD, he also worked in the 6th, 70th, 72nd, and 78th Precincts, and served as the commanding officer of the 76th Precinct. Chief Corey held positions in the Detective and Patrol Services Bureaus, the Office of the Queens District Attorney, the Intelligence Division, the Medical Division, the Office of the First Deputy Commissioner, and the Training Bureau, among others. Prior to his promotion as the four-star Chief of Department, Chief Corey was the Chief of Training for the NYPD, steering the agency through several innovations for improving policing.

“From day one, I have seen Chief Corey conduct himself with unparalleled integrity and I have marveled at his strength and vision,” Commissioner Sewell said on Thursday. “Chief Corey has been a beacon of excellence for officers in every rank – at every station. The light of his leadership will remain a shining guide forward for all of us and his contributions to our profession will be everlasting.”

In disclosing his decision to the department’s executive staff, and to those serving under him in the Chief of Department’s Office, Chief Corey described the moment as bittersweet.

“Policing is among the great passions in my life,” Chief Corey said, “and I have always committed myself to doing everything possible to improve policing in New York City. I have now been presented with an opportunity to improve policing on a national – and even international – level. It was an opportunity I simply could not allow to pass. I have spent more than three decades serving New York City, and I will miss the NYPD every day. But I know the department is well-positioned under the leadership of Commissioner Sewell.”

The Police Commissioner will announce the appointment of the NYPD’s next Chief of Department in the days ahead.

Attorney General James Announces 64 Guns Turned in at Rome Gun Buyback

 

AG James Has Taken More Than 3,700 Firearms Out of Communities Since 2019

New York Attorney General Letitia James announced that 64 firearms were turned in to law enforcement at a gun buyback event hosted by her office and the Rome Police Department. The Office of the Attorney General (OAG) accepts — with no questions asked — working and non-working, unloaded firearms in exchange for compensation on site. Today’s event is a part of Attorney General James’ ongoing efforts to combat gun violence and protect New Yorkers throughout the state. To date, Attorney General James has taken more than 3,700 firearms out of communities through gun buyback events and other initiatives since taking office in 2019.

“Encouraging New Yorkers to get guns off the streets and out of their communities is one of the ways we are working to combat the scourge of crime and gun violence throughout our state,” said Attorney General James. “Thanks to our partnership with the Rome Police Department, we were able to host this successful gun buyback program and take 64 guns out of the greater Rome area. I will continue my office's efforts to protect New Yorkers and ensure that our residents feel safe and secure in the communities they call home.”

This community gun buyback resulted in the collection of 64 guns, including 34 long guns, 17 handguns, 12 non-working guns, and an assault weapon. Since 2013, OAG has hosted gun buyback events throughout New York state and has successfully collected nearly 5,700 firearms. To date, Attorney General James has helped remove more than 3,700 guns out of communities since 2019.

In exchange for the firearms, OAG offered monetary compensation, in the form of prepaid gift cards, when an unloaded gun was received and secured by an officer on site.

DEC ANNOUNCES START OF CONSTRUCTION FOR NEW ACCESSIBLE ONEIDA LAKE BOAT LAUNCH

 

Public Access Site in Town of Verona, Oneida County, Will Enhance Recreational Opportunities for Residents and Visitors

New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos today announced the start of construction of a new boat launch on the Barge Canal at Cove Road in the town of Verona, Oneida County, to enhance fishing and boating recreational opportunities. The boat launch will connect to Oneida Lake and provide additional access to the world-class fishing in Oneida Lake for all visitors, including people with disabilities.

“DEC continues to invest in new facilities to provide safe and accessible experiences for anglers, boaters, and outdoor enthusiasts,” Commissioner Seggos said. “Once complete, the Barge Canal Cove Road boat launch site will attract more visitors to enjoy boating and fishing on Oneida Lake and its tributaries, as well as those just looking for a place to experience Oneida County's natural surroundings.”

As DEC continues to expand recreational opportunities for people of all abilities, the site will have several Americans with Disabilities Act- (ADA) compliant features. Plans include a two-lane, concrete launch ramp with floating docks, canoe/kayak launch, fishing pier, parking area with 24 car and 49 car/trailer parking spaces, including some accessible parking, and port-a-johns.

Once complete, anglers will have additional boating access to Oneida Lake, New York’s most heavily fished inland water. Oneida Lake is the largest lake lying wholly within New York State, with a surface area of 50,894 acres. The lake’s waters support walleye, yellow perch, largemouth bass, smallmouth bass, and panfish, among other fish and wildlife species. Lake sturgeon can be found in the lake and its tributaries; however, lake sturgeon are on New York's threatened species list and cannot be fished for or possessed.

The projects is being funded with $1.6 million from the Environmental Protection Fund and NY Works. Under the State's Adventure NY initiative, DEC is making strategic investments to expand access to healthy, active outdoor recreation, connect more New Yorkers and visitors to nature and the outdoors, protect natural resources, and boost local economies. The EPF is a critical resource for environmental programs such as land acquisition, farmland protection, invasive species prevention and eradication, recreation access, water quality improvement, and environmental justice projects. Among the many environmental victories in the 2022-23 State Budget, Governor Hochul succeeded in increasing the EPF from $300 to $400 million, the highest-ever level of funding in the program's history.

Anglers are reminded that statewide fishing regulations apply in Oneida Lake and it is an angler's responsibility to know when the seasons are open in their area, size, daily and possession limits, and legal methods of taking fish. For current state fishing regulations, consult the 2022 Fishing Regulations Guide or go to the freshwater fishing regulations webpage.

Earlier this summer, DEC launched the new 'Tackle Box' feature to enhance fishing-related tourism and help new and experienced anglers enjoy the great fishing offered throughout New York. The Tackle Box feature is available on DEC's HuntFishNY smartphone app, (available for iOS and Android) and can provide information on Oneida Lake and nearly all other waterbodies, as well as fishing regulations, State-operated fishing access sites, stocking information, and other useful features like photos to help identify fish likely found in a certain river, lake, or stream. More information on the HuntFishNY Mobile app can be found on DEC's website.

Arthur Aviles at BAAD! Oct. 27 and 28

 

ARTHUR AVILES TYPICAL THEATRE ANNOUNCES PERFORMANCES 

OF HOMAGE! “UNTITLED SERIES” ON OCTOBER 27 and 28th 2022 

Arthur Aviles Typical Theatre, a Bronx-based contemporary modern dance company, announces performances  of “Homage! Untitled Series” at BAAD! The Bronx Academy of Arts and Dance, located at 2474 Westchester Avenue in the Westchester Square section of the Bronx. Performances are at 8 PM on Thursday, October 27 and Friday, October 28.  Tickets are $20 in person and free to $20 for the livestream (Friday only).  For more information or to purchase tickets visit www.BAADBronx.org.

The “Untitled Series” pays tribute to Martha Graham,  Jose Limon and Loie Fuller via Jody Sperling with contemporary interpretations that braid in queer and intersectional perspectives into classic works orginally created in the twentieth century.  The works will be performed by Johnnie Cruise Mercer, Priscilla Marrero, Dea’Shinique Ramsey, Hunter Sturgis, Josiah Vasquez and Rafael Cañals Pérez with live drumming by Mobey Lola Irizzary and costumes by Liz Prince.

 

The company is led by Arthur Aviles, an award-winning New York-Rican dancer/choreographer,  who was crowned “...one of the great modern dancers of the last 15 years” in 2003 by The NY Times chief critic Anna Kisselgoff. Aviles founded his Bronx-based contemporary dance company, Arthur Aviles Typical Theater (AATT) in 1996, and co-founded BAAD! The Bronx Academy of Arts and Dance in 1998. He toured internationally for eight years as a member of the Bill T. Jones/Arnie Zane Dance Company, and was honored with New York Dance and Performance (Bessie) Awards for his outstanding creative achievement during the Jones/Zane seasons in 1988 and 1989. In 2020, the Bessies honored him with a Lifetime Achievement Award for Dance.  He’s choreographed nearly three dozen works through AATT that have been performed at Lincoln Center Out-of-Doors, Jacob’s Pillow, Central Park Summerstage, and dozens of venues in NY,  Washington, D.C., Philadelphia and Connecticut. He’s been awarded dance residencies at dozens of universities in the US and Italy, and he’s danced with two dozen choreographers including pioneers Toby Armour and Aileen Passloff and contemporary artists Merian Soto and Tina Croll & Jamie Cunningham in “From the Horse’s Mouth.”

BAAD! was crowned “a funky and welcoming performance space” by The NY Times. It was co-founded by dancer/choreographer Arthur Aviles and writer/activist Charles Rice-Gonzalez in 1998, and presents five, multi-disciplinary arts festivals with programming that is empowering to women, people of color and the LGBTQ+ communities.