New Jersey Tax Preparer and Arizona Man Charged with Conspiracy to Defraud and Identity Theft

 

 A New Jersey tax preparer and an Arizona man were charged for their roles in conspiracies to commit wire fraud and defraud the IRS, and for aggravated identity theft, U.S. Attorney Philip R. Sellinger announced today.

Omar Khater, 32, of Fairfield, New Jersey, and Walid Khater, 37, of Mesa, Arizona, are each charged by complaint with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS, and one count of aggravated identity theft. Omar Khater is scheduled to make his initial appearance before U.S. Magistrate Judge Andre M. Espinosa in Newark federal court. Walid Khater is expected to appear on Jan. 19, 2023, before a U.S. Magistrate Judge in federal court in Arizona.

According to documents filed in this case and statements made in court:

Omar and Walid Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS. The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of victims without the victims’ knowledge or permission. The fraudulent filings caused the IRS to pay $4.49 million in tax refunds, the Khaters and others directed to various bank accounts that they controlled. 

The wire fraud conspiracy count is punishable by a maximum of 20 years in prison; the count of conspiracy to defraud the IRS is punishable by a maximum of five years in prison; and each count aggravated identity theft carries a mandatory sentence of two years in prison, to run consecutively to any term of imprisonment on the underlying felony.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy with the investigation leading to the charges.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Attorney General James Releases Statement on U.S. Supreme Court Decision Allowing Firearm Dealer and Concealed Carry Gun Laws to Remain in Effect

 

New York Attorney General Letitia James today released the following statement after the United States Supreme Court ruled to allow New York’s Firearm Dealer Laws and Concealed Carry Improvement Act (CCIA) to remain in effect pending appeal. The Supreme Court declined to block a number of firearm dealer laws and provisions of the CCIA that were challenged in Gazzola v. Hochul. This action by the Supreme Court follows another decision from last week to uphold a stay issued by the U.S. Court of Appeals for the Second Circuit in Antonyuk v. Nigrelli.

“Once again, the U.S. Supreme Court has decided to allow our state’s gun safety laws to remain in effect. We all see the heart-wrenching news from communities throughout New York state about the lives that are lost to senseless gun violence. We know that gun safety laws help save lives, and keep our state safer. My office will continue to work tirelessly to stand up for New York’s gun safety laws and we will use every tool at our disposal to protect New Yorkers.”

As a result of today’s decision, the full CCIA continues to be in effect. The CCIA took effect in September 2022, in the wake of the U.S. Supreme Court’s ruling in New York State Rifle & Pistol Association v. Bruen. The law strengthens requirements for concealed carry permits, prohibits guns in sensitive places, requires individuals with concealed carry permits to request a property owner’s consent to carry on their premises, enhances safe storage requirements, and requires background checks on all ammunition purchases.

Statement by Governor Hochul on Senate Judiciary Committee Hearing

"Today, New Yorkers had the opportunity to hear directly from Judge LaSalle, and what they heard was an affirmation of his commitment to fairness and justice above all else. He also shared his personal background and views, including his deeply held support for organized labor and unequivocal belief in the right to an abortion. Judge LaSalle demonstrated exactly why he is the right person for this role - because of his extensive experience, judicial temperament and integrity.

"While this was a thorough hearing, it was not a fair one, because the outcome was predetermined. Several Senators stated how they were going to vote before the hearing even began - including those who were recently given seats on the newly expanded Judiciary Committee. While the Committee plays a role, we believe the Constitution requires action by the full Senate." 

MAYOR ADAMS DELIVERS REMARKS AT U.S. CONFERENCE OF MAYORS

 

New York City Mayor Eric Adams today delivered the following address, as prepared for delivery, to the United States Conference of Mayors’ opening plenary luncheon:

“Thank you, Mayor Suarez, and thank you to the conference of my fellow mayors.

“A year ago, I came before you to lay out an urban agenda and urge mayors to lead.

“Today, I am here to thank you for that leadership, and to ask you to support me in a national call to action on three of the most serious issues facing us as a nation: Gun violence, the fentanyl epidemic, and the asylum seeker crisis.

“These are issues that need a 50-state strategy, the leadership of our government, and the economic power of a united nation.

“The border crisis reminds us of this reality every day.

“Just a few days ago, I was in El Paso to see for myself how the asylum seeker crisis is affecting our border states and our entire nation.

“What I saw was not a state problem or a city problem. It is a national problem, driven by global forces, impacting regular people. 

“Every attempt to deal with immigration on a national level through legislation has been sabotaged, mostly by right-wing opposition, and cities are bearing the brunt of this failure, which is why I ask all of you here today to join me and say: We must come together as Americans to solve an American problem.

“A true solution to this problem is going to come from the executive branch, and from bipartisan effort in our Senate and House. I want to thank the New York City congressional delegation, U.S. Senate Majority Leader Chuck Schumer, and U.S. House Minority Leader Hakeem Jeffries for their leadership in providing New York and other localities with federal funding to help cover a portion of these expenses.

“I also would like to thank the Biden-Harris Administration for supporting policies that will assist localities on the frontlines of the asylum seeker crisis gripping our nation. They have put forward a bold vision on immigration reform and requested billions of additional funding from Congress, but we are in need of more help.

“Today I am calling for a national response to the asylum seeker crisis, which includes six main points:

1. “A dedicated point-person whose sole focus is overseeing and coordinating our national asylum seeker response,
2. “A decompression strategy at the border that establishes a plan for each migrant’s arrival — and creates a system to fairly distribute newcomers regionally,
3. “Congressional funding for the Federal Emergency Management Agency to implement that strategy in the places of greatest need,
4. “Expedited right to work options for asylum seekers who are allowed to enter the country,
5. “Congressional legislation that provides a clear pathway to residency or citizenship for those who enter this country legally,
6. “And nationwide leadership that takes an all-hands-on-deck approach by bringing together nonprofits, the faith-based community, and the private sector, alongside state and local government to meet this challenge.

“We need a similar national response on gun violence. Last year, I testified before Congress on the urgency of this issue.

“We are facing a crisis that is killing more Americans than war. A crisis that is now the number one killer of our young people. I know firsthand as the co-chair of Everytown’s nonpartisan coalition on Mayors Against Illegal Guns.

“We have made some progress as a nation. I am proud that we have confirmed a new ATF director and passed the first new gun safety laws in a generation. Thank you to President Biden, Majority Leader Schumer, and the New York congressional delegation for getting this done.

“But we must do more.

“We need common-sense gun safety laws across this nation, including the Assault Weapons Ban and the Background Check Expansion Act. And we need to stop the flow of illegal guns across state lines.

“Federal agencies must work together with local and state law enforcement to track, stop, and prevent the interstate trafficking of illegal guns — and those systems and partnerships require funding and legal support. Any new DOJ/ATF funds targeting gun violence must require that federal databases and investigation details be shared within existing joint task forces.

“The federal government must also increase funding for community violence intervention and other local anti-violence initiatives.

“While the gun violence crisis continues to destroy families and communities, we are also seeing a rise in deaths from opioids, particularly fentanyl, which is cheaper, more powerful, and more dangerous.

“In New York City alone, we saw over 2,600 fatal fentanyl overdoses in 2021 — a 78 percent increase since 2019. Over 100,00 people are dying from opioid overdoses every year in America — almost one every 3 hours.

“Opioid use is a public health crisis that requires a federal response centered around education, prevention, and treatment. The federal government must declare a national emergency around our overdose crisis, citing the dangerous supply and increasing deaths. 

“Next, the DEA, FBI, and state and local law enforcement must create a central database tracking the flow of fentanyl and the entire economic operation surrounding it. Coordinated seizures and building larger national cases on financial seizures may help disrupt supply. 

“And we need more federal resources behind national awareness strategies, including the DEA’s ‘1 pill can kill!’ campaign. This is a message that will save lives and must reach the widest audience possible.

“The federal government must also act to authorize proven harm reduction strategies, including overdose prevention centers or safe consumption sites. We need more funding for programs that make using drugs safer even as they treat substance use issues. And we must expand the use of drug testing supplies, including fentanyl test strips, and medical interventions like naloxone.

“We also need expanded federal funding to create reliable nationwide infrastructure that will support treatment and recovery. Right now, there are not enough treatment facilities or funding to care for those who so desperately need help. Federal agencies must also expand coverage for substance use disorder treatment under Medicaid and Medicare, and require the same of private health insurers because this isn't a ‘War on Drugs,’ this is a battle to save human lives.

“My fellow mayors: I’ve said it over and over again, this is our moment. Cities are not names on a map. They are the engines that power this nation; and those engines must be kept in good working order for our nation to prosper. Our cities and mayors have gotten us this far. Now it's time for our entire government to support the work that will save so many lives, protect the American dream for generations to come, and show the might of a nation united.

“I thank you for the job you do every day.”

Bronx Man Admits Role in Nationwide Credit Card Fraud Affecting Thousands of Account Holders

 

 A manager for a conspiracy that used stolen credit card information to make fraudulent retail purchases around the United States pleaded guilty yesterday, U.S. Attorney Philip R. Sellinger announced.

Trevor Osagie, 31, of the Bronx, New York, pleaded guilty before U.S. District Judge William Martini in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud.

According to documents filed in this case and statements made in court:

From at least 2015 through November 2018, Osagie conspired with a network of individuals based in the New Jersey/New York area who made trips around the United States in order to use stolen credit card information to purchase gift cards, flights, hotels, rental cards, and other goods and services. Other participants in the conspiracy obtained stolen credit card information through the “dark web” and other sources. In addition to recruiting at least one individual to create the fraudulent credit cards, Osagie managed the individuals who traveled around the United States conducting the fraudulent transactions. The conspirators made over $1.5 million in fraudulent purchases using over 4,000 stolen credit card accounts.

The conspiracy to commit bank fraud charge carries a maximum sentence of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for May 25, 2023.

U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to yesterday’s guilty plea.

Disbarred California Attorney Sentenced To Five And A Half Years In Prison For Long-Running Multi-Million-Dollar Investment Fraud Scheme

 

Defendant Sold Interests in Real Estate that He Did Not Own

 Damian Williams, the United States Attorney for the Southern District of New York, announced that DEREK JONES, a disbarred California attorney, was sentenced today to five and a half years in prison.  JONES ran fraudulent investment funds, including real-estate investment firms and a venture-capital firm, through which he defrauded investors of over $8.6 million over a period of more than seven years, from at least 2012 through 2019.  JONES previously pled guilty to one count of wire fraud and was sentenced today before United States District Judge Loretta A. Preska.

U.S. Attorney Damian Williams said: “When investors purchase shares in real-estate funds and other investment funds, those investors have every right to expect that the people promoting and selling those investments are treating them honestly and telling them the truth about their investments.  Today, Derek Jones, a disbarred attorney, was held accountable for violating this right over an extended period of time, selling interests in real estate that he falsely claimed to own and defrauding his investors out of millions of dollars.”

According to the Indictment, statements made in court, and other publicly filed documents in this case:

From at least 2012 through at least 2019, JONES deceived his victims into investing in various companies and investment funds that he controlled, including purported real-estate development and investment firms using variations of the names “BlueRidge,” “Living City,” and “Atiswin,” and the purported venture capital firm Realize Holdings (“Realize”).  

In fraudulently inducing victims to invest in his funds, JONES routinely lied to investors, including in glossy brochures and legal documents that contained misrepresentations about real estate that JONES falsely claimed was owned or otherwise controlled by BlueRidge, Living City, and Atiswin.  For example, JONES falsely told investors and prospective investors that BlueRidge was developing a “resort village” on land it controlled on Semiahmoo Spit in Washington State and, separately, that BlueRidge had purchased an existing hotel in that same location, when in fact neither BlueRidge nor JONES owned or controlled any of that property.  In other cases, JONES falsely claimed that his companies were under contract to purchase a ranch in Colorado and that his companies had secured long-term leases for various pieces of property slated for development, including California properties in Santa Monica, Hermosa Beach, and Los Angeles.  Instead of using investors’ money as he promised, JONES misappropriated investors’ money, using much of it to make Ponzi-style payments to other investors to whom he owed money in connection with earlier transactions and for personal and family expenses, including the private-school tuition of his children.

In executing his scheme, JONES also sent falsified and counterfeit documents to investors and others.  For example, on repeated occasions, JONES provided doctored bank statements showing that he had millions of dollars in various corporate accounts, when in fact he had little or no money in such accounts.  On other occasions, he provided counterfeit financial statements that falsely purported to be based on internal audits of companies that he controlled.  He also sent investors and others falsified contracts with key pages removed, forged land-leases, and fictional statements of asset allocation.  JONES also used the names of other individuals — without those individuals’ authorization or knowledge — to communicate via email with investors and thus foster the illusion that JONES’s businesses were viable operations with real employees.

In total, JONES defrauded investors out of more than $8.6 million.

During the commission of the fraud charged in this case, JONES was suspended from the practice of law by the State Bar Court of California for earlier fraudulent conduct.  JONES was ultimately disbarred in July 2022 based on findings by the State Bar Court that he had intentionally misappropriated money belonging to a client in 2011 and that he had made misrepresentations to the client, to the court, and to others.

JONES, 48, of San Marino, California, pled guilty on November 1, 2021, to a single count of wire fraud.  He was sentenced today to five and a half years in prison, three years of supervised release, forfeiture of $8,679,787.66, and restitution to his victims in an amount to be determined within the next 90 days.  

Mr. Williams praised the excellent work of the Federal Bureau of Investigation.

Permits Filed For 2159 Mapes Avenue In East Tremont, The Bronx

 

Permits have been filed for an eight-story residential building at 2159 Mapes Avenue in East Tremont, The Bronx. Located between East 181st Street and East 182nd Street, the lot is near the East 180th Street subway station, serviced by the 2 and 5 trains. Gregory Harvey of Masani Holding Company Corp. is listed as the owner behind the applications.

The proposed 80-foot-tall development will yield 16,716 square feet designated for residential space. The building will have 18 residences, most likely rentals based on the average unit scope of 928 square feet. The concrete-based structure will also have a cellar and a 37-foot-long rear yard.

Gerald Caliendo Architects is listed as the architect of record.

Demolition permits were filed in November 2022 for the two-story building on the site. An estimated completion date has not been announced.

Las Vegas Sands Reveals Proposed Casino On The Nassau Coliseum Campus In Uniondale, Long Island

 

Las Vegas Sands has revealed proposals to redevelop roughly 80 acres of vacant land surrounding the Nassau Veterans Memorial Coliseum into a new casino and entertainment complex in Uniondale, Long Island. The campus would also have a hotel, outdoor spaces for private events and community gatherings, celebrity chef restaurants, flexible meeting and convention space, a day spa, and a live performance venue that the developer said will honor the long legacy of live music at Nassau Coliseum.

Las Vegas Sands has already entered an agreement to purchase the long-term lease of Nassau Coliseum and the 80 acres surrounding the venue. The current leaseholder is Nassau Live, which took over the property in August 2020.

Preliminary renderings of the campus illustrate at least three new buildings, each enclosed by a prismatic glass façade. The tallest building will most likely house a hotel. As the project moves through the state and local agency approval process, however, these preliminary renderings are likely to change.

The announcement did not specify if Las Vegas Sands intends to demolish Nassau Coliseum or renovate and redevelop the aging property.

Preliminary rendering of the proposed Sands Casino campus in Uniondale, Long Island

“Our company’s track record of driving significant economic benefits to the communities in which we operate and the meaningful relationships and partnerships we have created in each of those communities gives us a unique perspective on what it takes to develop transformative tourism destinations that positively impact the local community,” said Robert G. Goldstein, Las Vegas Sands’ chairman and chief executive officer. “Based on that experience, we strongly believe Long Island can be home to one of the region’s great entertainment and hospitality developments.”

Las Vegas Sands is also working in close collaboration with RXR to engage the surrounding Long Island community on a plan that maximizes economic opportunity and helps support residents.

Prior to the casino proposals, RXR worked with community leaders to develop the Nassau Hub Redevelopment, a plan to transform the grounds surrounding the Nassau Coliseum into a mixed-use campus with office space, residential buildings, retail, and open green spaces. It is not clear how proposals for the Sands Casino align with the Nassau Hub masterplan.

Rendering of the ‘Nassau Hub’ masterplan development – RXR

“After nearly two decades of working to transform the Nassau Coliseum site, including countless hours meeting with thousands of community members, the message has been overwhelmingly clear that Long Islanders want a global renowned entertainment destination that creates well-paying jobs and new opportunities at the Nassau Hub,” said Scott Rechler, CEO and chairman of RXR. “[The] challenge for turning this vision into reality has always been the commercial viability of a site encumbered by a nearly obsolete half-century-old arena.”

Rechler goes on to laud the plan envisioned by Las Vegas Sands as a once-in-a-generation opportunity to sought after by Long Islanders.

Nassau County officials remain open to the Las Vegas Sands proposal, but insist that community buy-in is a must for any plans to proceed.

“It would have to be something that was first-class and exciting and primarily and an entertainment center and a hospitality play, rather than just a casino; architecturally pleasing, preferably spectacular, and that there was open space,” said Nassau County executive Bruce Blakeman.

The coliseum proposals are the latest to join a consortium of developers vying for rights to construct a new, full-scale casino in downstate New York. State agencies will only allow the construction of three full-scale casinos in the downstate region, making the stakes incredibly high for competing teams.