Texas Man Sentenced To 42 Months In Prison For Role In Scheme To Fraudulently Obtain Over $30 Million In COVID-19 Relief Loans

 

Defendant is Last of Five Participants to Be Sentenced for Participation in the Scheme

 Damian Williams, the United States Attorney for the Southern District of New York, announced that AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” was sentenced today in Manhattan federal court by United States District Judge Paul A. Engelmayer to 42 months in prison for his participation in a scheme to fraudulently obtain over $30 million in Government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic.  MUNDENDI is the last of five defendants to be sentenced in the case.  MACKENZY TOUSSAINT, APOCALYPSE BELLA, a/k/a “Dias Yumba,” BRANDON JACKSON, and ALVIN MAXWELL were previously sentenced by Judge Engelmayer.

U.S. Attorney Damian Williams said: “Amid the outbreak of the COVID-19 pandemic that wreaked havoc on economies worldwide, Amos Mundendi and his co-defendants illegally plundered funds meant to financially support struggling businesses.  All defendants in this case will now serve substantial prison time for stealing much-needed relief intended for legitimately deserving companies.”

According to allegations in the Complaints, the Indictments, the Superseding Information, and statements made during court proceedings:

TOUSSAINT, BELLA, MAXWELL, and MUNDENDI were involved in an extensive scheme to prepare and submit fraudulent applications to the Small Business Administration (“SBA”) and to at least one company which processed loan applications under the SBA’s Paycheck Protection Program (“PPP”).  Over the course of the scheme, TOUSSAINT, BELLA, MAXWELL, and MUNDENDI attempted to fraudulently obtain over $30 million in Government-guaranteed loans for various companies through the PPP, designed to provide financial relief to qualifying companies during the COVID-19 pandemic.  The scheme resulted in over $15 million in actual loss.

The defendants’ scheme included the submission of fraudulent applications for PPP loans for several companies, including two companies (“Company‑1” and “Company-2”) both located in the Southern District of New York.  The loan proceeds for Companies-1 and -2 totaled approximately $4 million, and the fraudulent funds were distributed to a series of bank accounts located in the United States and elsewhere, including bank accounts controlled by TOUSSAINT and BELLA. 

The PPP loan applications for Company-1 and Company-2 were false, containing lies designed to maximize proceeds to the fraud scheme.  Specifically, applications for both Company-1 and Company-2 contained material differences from loan applications submitted for both companies under the Economic Injury Disaster Loan (“EIDL”) program just months earlier.  For instance, the PPP loan application for Company-1 — which was submitted on June 30, 2020 — represented that Company-1 had over 100 employees.  However, an earlier EIDL loan application for Company-1 dated on or about March 30, 2020, represented that Company-1 had only four employees.

TOUSSAINT, BELLA, and MUNDENDI devised and executed the fraud scheme by conspiring with individuals who owned, operated, or otherwise were affiliated with businesses such as Company-1 and Company-2.  MAXWELL was one such individual — a business-owner who participated in the scheme to fraudulently obtain over $1.6 million for his own business.

In addition, TOUSSAINT and JACKSON engaged in a separate scheme to submit fraudulent EIDL applications, often through the use of synthetic identities (i.e., a fake name used in combination with true personal identifying information of another person).  TOUSSAINT and JACKSON used Social Security Numbers belonging to minors as part of the synthetic identities created for use in the fraud scheme.  At least approximately $1.7 million in EIDL loan funds were disbursed as a result of TOUSSAINT’s and JACKON’s EIDL loan fraud scheme.

In addition to the prison sentence, MUNDENDI, 33, of Irving, Texas, was ordered to pay $9,315,418.00 in restitution.

On October 27, 2022, BELLA, 48, of Clackamas, Oregon, was sentenced to 40 months in prison and ordered to pay $4,088,084.42 in restitution.

On November 10, 2022, TOUSSAINT, 40, of Irving, Texas, was sentenced to 90 months in prison and ordered to pay $12,402,676.92 in restitution.

On December 6, 2022, MAXWELL, 46, of Lancaster, Texas, was sentenced to 18 months in prison and ordered to pay $1,696,534.63 in restitution.

On February 3, 2023, JACKSON, 35, of Farmer’s Branch, Texas, was sentenced to 33 months in prison and ordered to pay $1,772,453.00 in restitution.

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the Small Business Administration’s Office of the Inspector General, and the Internal Revenue Service, Criminal Investigation.

MAYOR ADAMS, DCLA COMMISSIONER CUMBO ANNOUNCE INSTALLATION OF PHOTOS FROM ALVIN AILEY AMERICAN DANCE THEATER THROUGHOUT CITY HALL

 

Celebrating Black History Month, 15 Photos from Ailey Moves NYC! Program Installed Throughout City Hall, Kicking Off New Initiative to Exhibit Artworks in City Buildings

 

Digital Versions of Photos on Display Available Online 

New York City Mayor Eric Adams, New York City Department of Cultural Affairs (DCLA) Commissioner Laurie Cumbo, and Alvin Ailey artistic director Robert Battle today announced the installation of 15 photos from the Ailey Moves NYC! Program throughout City Hall. The photos — which will adorn the rotunda, conference rooms and other workspaces throughout the executive side of the building — depict the lively public performances that Ailey Moves NYC! brought to New York City and reinforce the city’s recovery over the summer of 2022. While the installation is beginning during Black History Month, it will last six months, and marks the beginning of a broader initiative that will bring different artwork to spaces in city buildings across the five boroughs.  

Photos from Alvin Ailey Moves NYC! on display in the City Hall Rotunda 

“Art is reflective of the times, and thanks to Alvin Ailey, City Hall will be able to display glimpses of their Ailey Moves NYC! performances that took place across the five boroughs right on time for Black History Month,” said Mayor Adams. “With this installation, we are bringing new vibrancy and life to this historic building and displaying just some of the beautiful artwork available in our city. We look forward to additional displays by a range of artists in the future.” 

“Art and culture are central to who we are as New Yorkers, and these inspiring and vibrant portraits of Alvin Ailey dancers at work across the city are a powerful reminder of New York City’s creative energy to all who visit City Hall,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “Thank you to Robert Battle and the Alvin Ailey team for lending us these extraordinary artworks.”

“We extend gratitude to the iconic Alvin Ailey American Dance Theater for bringing vibrancy and more life to City Hall with this photo series installation chronicling our cities recovery during the pandemic. A picture is worth a thousand words,” said Chief Advisor Ingrid Lewis Martin. “It is exhilarating to see the Alvin Ailey dancers' movements all through City Hall, and we look forward to finding more creative ways to showcase different works of art in the future.”

“With their artistry and commitment to public engagement, Alvin Ailey American Dance Theater embodies what makes our city so extraordinary,” said DCLA Commissioner Laurie Cumbo. “For Black History Month, we’re honored to install this series of photos from Ailey Moves NYC! on display in City Hall. The photos of these amazing, vibrant public programs led by artists of color will bring the energy of New York to the heart of our local government, inspiring the public servants who are committed to uplifting the creative life and energy of our city.” 

“I am proud that Mayor Eric Adams and Cultural Affairs Commissioner Laurie Cumbo have set the stage for Alvin Ailey American Dance Theater images to step onto the walls of City Hall, highlighting the diversity of New York City’s cultural landscape during Black History Month,” said Robert Battle, artistic director, Ailey Artistic. “The photographs showcase Ailey Moves NYC!, a free summer festival with dance events in all five boroughs offered in the spirit of Mr. Ailey himself, who said, ‘Dance comes from the people and should always be delivered back to the people.’ We joyfully share these portraits of the many faces of the city as Ailey delivers dance that unites and inspires all, rooted in the African American heritage and a universal celebration of the human spirit.” 

Photos from Alvin Ailey Moves NYC! on display in the City Hall Rotunda

Ailey Moves NYC! was a summer celebration with free outdoor events throughout all five boroughs in 2022. Featuring Alvin Ailey American Dance Theater, Ailey II, Ailey Extension — which provides dance and fitness classes for all experience levels — and Ailey Arts In Education programs, Ailey Moves NYC! offered public performances, dance classes, workshops, and screenings of Jamila Wignot’s acclaimed 2021 documentary “Ailey.” Ailey Moves NYC! brought programming to public spaces, including at St. Mary’s Park in the Bronx; the Coney Island boardwalk in Brooklyn; Little Island, Marcus Garvey Park, and Times Square in Manhattan; Far Rockaway Beach in Queens; and Snug Harbor Cultural Center in Staten Island.

Penn Station Access Newsletter - Issue 3 (February 2023)

 

Newsletter

Issue 3: February 2023

Welcome to the Metro-North Penn Station Access project quarterly newsletter. Penn Station Access will bolster equity, regional connectivity, and reliability by providing a new transit option. For past newsletter issues, please visit our project website. For updates on specific areas along the project corridor where work will take place, sign up here.

Clic aquí para leer más sobre este proyecto transformador, nuestro equipo, y lo que hemos logrado hasta ahora en 2022.

2022 Year In Review

Above: Governor Kathy Hochul accompanied by elected officials and various agency leadership for groundbreaking. Source: Marc Hermann / MTA Above: Governor Kathy Hochul making remarks at THE POINT. Source: Marc Hermann / MTA

The Penn Station Access project has made significant progress in its first year! In December 2022, the project team welcomed New York Governor Kathy Hochul along with Senator Chuck Schumer and other representatives for the project’s ceremonial groundbreaking at the future Parkchester/Van Nest station site. The groundbreaking was followed by a press event at THE POINT Community Development Organization in the Bronx. Read more about the event here.

Project Updates DCP Bronx Metro-North Station Area Plan The Penn Station Access project continues to be in close coordination with the Bronx Metro-North Station Area Study – a separate NYC Department of City Planning (DCP) initiative to ensure that Bronxites see the most benefit from the stations delivered by the MTA project. In December, representatives from the MTA and project team presented at DCP’s Bronx-Metro North Public Info Sessions about the planning work for the Morris Park and Parkchester/Van Nest station areas. Read more about the DCP Bronx Metro-North Station Area Plan to here. Capital Program Committee Meeting On January 30, 2023, Project Executive Tom McGuinness presented at the MTA board Capital Program Committee meeting with a focus on project status, coordination with Amtrak, potential risks, and ongoing mitigation efforts. You can watch the full presentation here. What’s Next in 2023 The Penn Station Access project has a busy year ahead, developing design packages and commencing work on several major elements along the project corridor. MTA is coordinating closely with Amtrak and CSX on right-of-way access to keep construction on track (pun intended). Starting in March 2023, Amtrak will provide a long-term single-track outage for as long as 8 months, with no impacts to customers. Longer-term outages can significantly improve construction efficiency and productivity as they provide the Design-Builder larger windows to advance critical work along the tracks. It also provides an opportunity to install certain engineered controls to protect the work with less required Force Account support (see below). Rail Term Roundup – Force Account Force account is another term for a railroad’s in-field staff, such as flaggers and supervisors, working to carry out a capital project. These crews are essential to maintaining safety during construction on an active rail corridor. MTA must rely on Amtrak force account support when work takes place on or adjacent to Amtrak-owned properties. At the start of the Penn Station Access project, MTA entered into an agreement where Amtrak committed to providing track access and force account staffing to keep the project on schedule. Recently, Amtrak reaffirmed their commitment to supporting the project and is working with the MTA to provide the necessary extended track outages and force account resources while maintaining both passenger and freight service along the corridor. Collaborating with our railroad partners is the key to delivering this mutually beneficial project that will bring the Hell Gate Line into a state of good repair, improve reliability and on-time performance for intercity passengers, and prepare the line for future high-speed rail. Above: Penn Station Access construction worker conducting test pit along the project right-of-way, 2022 Contact Us Interested community members can now sign up for updates on specific areas along the project corridor where work will take place. Website: http://new.mta.info/project/penn-station-access Email: PSAOutreach@mtacd.org Phone: 347-263-7837

Release of BWC Footage from an officer involved shooting that occurred October 16 2022 in the confines of the 34th Precinct

The NYPD is releasing today body-worn camera footage from an officer-involved shooting that occurred on October 16th, 2022 in the confines of the 34th Precinct.

The video includes available evidence leading up to the incident as well as during the incident. The NYPD is releasing this video for clear viewing of the totality of the incident.

All NYPD patrol officers are equipped with body-worn cameras. The benefits of cameras are clear: transparency into police activity, de-escalation of police encounters and accountability for police officers, through an independent account of interactions between the police and the citizens they serve. Body-worn cameras serve as a vital part of ongoing efforts to increase trust between the police and all New Yorkers.

You can find the video here 

Release of BWC Footage from an officer involved shooting that occurred October 16 2022 in the confines of the 43rd Precinct

 

The NYPD is releasing today body-worn camera footage from an officer-involved shooting that occurred on October 16 2022 in the confines of the 43rd Precinct.

The video includes available evidence leading up to the incident as well as during the incident. The NYPD is releasing this video for clear viewing of the totality of the incident.

All NYPD patrol officers are equipped with body-worn cameras. The benefits of cameras are clear: transparency into police activity, de-escalation of police encounters and accountability for police officers, through an independent account of interactions between the police and the citizens they serve. Body-worn cameras serve as a vital part of ongoing efforts to increase trust between the police and all New Yorkers.

You can find the video here

Attorney General James’ Statement on Decision to Uphold Donald Trump Contempt Order

 

Appellate Division Rules that Donald Trump Must Pay $110,000 to OAG for Contempt

 New York Attorney General Letitia James released the following statement after the Appellate Division, First Department ruled in favor of Attorney General James and upheld a ruling ordering Donald Trump to pay a $110,000 fine to the Office of the Attorney General (OAG) after he was found in contempt of court for his refusal to comply with OAG’s subpoenas as part of its investigation:

“Once again, the courts have ruled that Donald Trump is not above the law. For years, he tried to stall and thwart our lawful investigation into his financial dealings, but today’s decision sends a clear message that there are consequences for abusing the legal system. We will not be bullied or dissuaded from pursuing justice.”

In April 2022, Justice Engoron of the New York County State Supreme Court ruled that Donald Trump was in contempt of court for failing to comply with his previous orders to comply with OAG’s subpoena to provide documents and imposed a $10,000 fine on Mr. Trump for every day that he violated the court’s order to comply with the subpoena. In May 2022, Mr. Trump appealed that decision to the Appellate Division, First Department.

NYC Comptroller’s Report Finds Payments to Settle City-Owned Vehicle Crashes Have Nearly Doubled Over the Past Decade

 

Personal injury settlements totaled $653.9 million for claims filed between FY 2012 and FY 2021.

The New York City Comptroller’s Office released Wreckless Spending: The Accelerating Cost of City Car Crash Settlements, a report which found that payments to settle personal injury claims from crashes involving City-owned vehicles have nearly doubled in the past decade. Despite seeing the number of crash claims settled by the City drop to a ten-year low in Fiscal Year 2021, settlement payouts have soared from a low of $67.4 million in FY 2015 to a high of $130.1 million in FY 2021. City fleet-related personal injury settlements over the past decade have cost the City a total $653.9 million.

“The epidemic of vehicle crashes is a serious public safety concern to New Yorkers, and unfortunately the City fleet is not an exception. But in these cases, when a New Yorker is hit and harmed by a squad car or a garbage truck, it’s New York City taxpayers who have to settle the bill. By accelerating adoption of fleet safety technologies, reducing the size and number of vehicles in the City fleet, and holding City drivers and agencies accountable, we can save lives – and many of millions of dollars too,” said Comptroller Brad Lander. 

Settlements over $1 million made up only 4% of total personal injury claims, but accounted for almost 50% of the total cost between FY 2012 and FY 2021. The New York City Police Department (NYPD) and the Department of Sanitation (DSNY) accounted for 67% of all City fleet settlements over $1 million, a third of which involved pedestrian, cyclist, or motorcyclist claimants.  

Despite larger vehicles being responsible for the most expensive crashes, the City added more trucks and SUVs to its fleet between 2015 and 2023. During that same time, the median settlement for crash claims jumped from an average of $9,000 in FY 2012 to $50,000 in FY 2021. Crashes are more likely with larger vehicles because they tend to have longer braking distances and larger blind spots, and the payouts involving these vehicles tend to be higher because they cause more damage and injury.  

The report recommends accelerating efforts to upgrade vehicle technologies (including Automatic Emergency Braking and Intelligent Speed Assistance), reducing the size and number of vehicles in the City fleet, and strengthening measures to hold City drivers and agencies accountable. 

More information on crash claims data and recommendations can be found in the full report, here. 

“Safe driving prevents crashes and saves taxpayer dollars. The City of New York’s fleet can and should include proven safety technology, such as intelligent speed assistance,” said Elizabeth Adams, Senior Director of Advocacy & Organizing at Transportation Alternatives. “Safe cars are just the start. We need to see a comprehensive plan from this administration that reduces the number of cars in the city fleet, while redesigning streets across New York City for safety. Comptroller Lander is right: The City of New York can be a street safety leader, both through its fleet and on its streets.”  

“New York City faces a public health crisis of traffic violence that costs all New Yorkers. I know firsthand that speeding is a deadly act. After my son Sammy was killed, I fought for a lower NYC speed limit — and it proved to be the difference between life and death for a 5-year-old boy who was hit in the exact same location as my son but who fortunately lived. We urge our city leaders to expand intelligent speed assistance and automatic emergency braking to the entire city fleet. We also need a comprehensive plan to reduce driving by city employees, redesign streets for safety in all five boroughs, and further lower NYC speed limit by passing Sammy’s Law named after my son,” said Amy Cohen, co-founder of Families for Safe Streets. 

“When it comes to making New York City’s streets safer, leadership should start with city employees and the city fleet, and thanks to Comptroller Lander’s eye-opening new report, we know that not only is that not the case, but that things have gotten worse during the Vision Zero era. As the overwhelmingly successful pilot of Intelligent Speed Assistance in city vehicles shows, we have the technology to improve safety, and that tech should be standardized across the fleet. At the same time, the Adams administration should be moving swiftly to slash the overall size of the city fleet, as well as the size of fleet vehicles, which will save both lives and money,” said Eric McClure, Executive Director of StreetsPAC.  

“City agencies should be leading the way to safe streets. We applaud Comptroller Lander for spotlighting the troubling trends with agency crashes and settlements, and urge all department heads to closely monitor performance and take steps to produce real progress in safe agency operations on NYC streets,” said Jon Orcutt, Bike New York Advocacy Director.  

“The size of New York City’s vehicle fleet creates a priceless opportunity to reduce traffic crashes and consequently the City’s crash liability; through safety training, automated vehicle telemetry and other steps, the City can transform its fleet of vehicle operators into street safety leaders,” said Steve Vaccaro, cycling representative and advocate from the Law Office of Vaccaro & White.

Governor Hochul Launches Nation-leading Initiative to Offer Fully Paid Parental Leave to New York State Employees

More Than 10,000 Unrepresented New York State Employees Eligible to Receive 12 Weeks of Fully Paid Parental Leave

Governor's Policy Bulletin Available Here

 Governor Kathy Hochul today launched a nation-leading initiative to offer fully paid parental leave benefits to New York State employees. The Governor announced in a policy bulletin that more than 10,000 unrepresented State employees will be eligible to receive 12 weeks of fully paid leave to use for bonding with a newborn, fostered, or adopted child. The majority of employees will be able to take leave starting today.

“The dedicated New Yorkers who keep our state moving should not be forced to choose between a paycheck and caring for their child, and this policy will establish New York State as a model for helping working families,” Governor Hochul said. “My administration is committed to giving our public servants the support they need because it's not only good for their families, it's good policy.”

Despite the well-documented positive benefits of paid parental leave to maternal and infant health, as well as family economic security and workforce retention, the United States is the only developed country in the world without a national paid parental leave policy. New parents and caregivers depend on a patchwork of various federal, state, and local leave policies, in addition to any employer-sponsored benefits.

Governor Hochul first announced this initiative as part of her 2023 State of the State. The Office of Employee Relations (OER) and the Department of Civil Service have since worked to establish the program and make it available for unrepresented State workers. Under the policy issued today, all unrepresented executive branch employees who work full-time or who work at least 50 percent part-time are eligible for this benefit, with eligibility beginning on their first day of service. OER will continue to engage State unions on extending this benefit to their employees through collective bargaining.

Office of Employee Relations Director Michael Volforte said, “Paid parental leave will make a significant difference to working families by helping parents care for their children without the fear of losing a paycheck. Under Governor Hochul’s leadership, I look forward to working with our union partners to extend fully paid parental leave to the New York State workforce.”

New York State Civil Service Commissioner Timothy R. Hogues said, “Offering paid parental leave to New York State’s workforce will truly help our hardworking public servants provide for their children and foster strong familial bonds. This is just one of the many actions Governor Hochul is taking to help bolster and support New York State’s dedicated public workforce, and the Department of Civil Service is pleased to advance the Governor’s vision.”

New York has long led on parental and family leave benefits, enacting the statewide Paid Family Leave (PFL) law in 2016. In 2021, Governor Hochul signed legislation expanding the law to include caring for a seriously ill sibling.