Attorney General James’ Office of Special Investigation Releases Report on the Death of Raymierik Lopez

 

 New York Attorney General Letitia James’ Office of Special Investigation (OSI) today released its report on the death of Raymierik Lopez, who died on December 16, 2021, after an encounter with an off-duty officer from the New York City Police Department (NYPD). Following a thorough investigation, which included review of security camera footage, witness interviews, and crime scene analysis, OSI determined that justification could not be disproved beyond a reasonable doubt at trial, and thus criminal charges against the off-duty officer were not warranted in this matter.

Around 3 a.m. on December 16, 2021, an off-duty NYPD officer left a nightclub in Woodside, Queens to wait for his friend. He was sitting in the front seat of his car with the driver’s side door open, across the intersection from the nightclub. Another car pulled up next to the off-duty officer’s car and Mr. Lopez and two other individuals in ski masks got out and approached the officer. Mr. Lopez and the other men grabbed at the gold chains that the off-duty officer was wearing around his neck in an apparent attempt to rob him. They exchanged gunfire and retreated.

The off-duty officer was transported to a local hospital and treated for his injuries. Mr. Lopez was also transported to the hospital, where he was pronounced dead. Officers recovered two firearms at the scene, one of which was the off-duty officer’s service weapon.

The two individuals who were with Mr. Lopez before fleeing the scene were apprehended in the days following the incident, and their cases are being prosecuted by the Queens County District Attorney’s Office.

Under New York’s justification law, a person may use deadly physical force to defend against the imminent use of deadly physical force by another. To convict a person of a crime when the defense of justification is raised at trial, the prosecution must disprove justification beyond a reasonable doubt.

In this case, the off-duty officer was the victim of a robbery in progress and reasonably believed that his life was in danger. Under these circumstances, given the law and the evidence, a prosecutor would not be able to disprove beyond a reasonable doubt that the off-duty officer was justified in his use of force, and OSI determined that criminal charges could not be pursued against him in this case.

Bronx Borough President Vanessa L. Gibson - Community Resources & Updates

Dear Neighbor,

 

Thank you for joining us for another week in review.

Last week, I joined with my colleagues in government to fight for tenants to receive adequate support in housing court. When I was in the NYC Council, then-Council Member Mark Levine and I fought for the Right-to-Counsel (RTC) legislation that gives tenants the right to an attorney if they are being sued for eviction or if they are income eligible. Since being enacted in 2017, we've seen that Local Law 53 works. The numbers don’t lie: evictions have plummeted, landlords are suing tenants less and almost 85% of tenants who had Right-to-Counsel, stayed in their homes. However, due to lack of funding many qualifying tenants have not been able to receive rightful representation.

That is why I joined with Borough President Levine and Council Member Shaun Abreu at City Hall to support Intro 921 which will require the City’s Office of Civil Justice to prepare an estimate of funding necessary to implement RTC; and Reso 499 that will call on the state legislature to pass a law requiring courts to adjourn eviction proceedings until they have adequate opportunity to secure counsel as required by city law.

Thank you Council Member Abreu for carrying the baton and continuing the fight for Right-to-Counsel. Thank you also to my fellow Borough President Mark Levine for his partnership. To learn about RTC, click here.

Lastly, we celebrated the return of our Bronx Bombers to the Yankee Stadium for Opening Day! We are so excited to see what this new season has in store for our New York Yankees. This is Aaron Judge's first season as captain, and Anthony Volpe's MLB debut. This season is gearing up to be one for the books and we are ready for our 28th ring!

As always, if you have any questions or concerns, please do not hesitate to contact our office at 718-590-3500 or email us at webmail@bronxbp.nyc.gov.

 

In partnership,

Bronx Borough President Vanessa L. Gibson

IN THE COMMUNITY

Corporal Irwin Fischer Park This is a win for the West Bronx! Last week, we celebrated the ribbon cutting of a brand-new park in our Borough. As the former Council Member for the 16th District, the transformation of this empty lot into a greenspace for our community was a top priority of mine as part of the Jerome Neighborhood Plan, and I am excited to see this project come to fruition. Bronxites deserve the best and will now get to enjoy a new playground, a toddler play area, and space to safely recreate. Thank you to NYC Parks, Bronx Community Board 4, the Mayor`s Office, parks advocates, Highbridge residents, and everyone else involved in bringing this vision to life. : NYC Parks I joined with civil rights leaders and health advocates to fight for legislation banning menthol cigarettes. Menthol cigarettes have disproportionately affected our Black and brown communities for far too long. 86% of Black smokers and 72% of Hispanic smokers smoke menthol; and half of young people who had ever tried smoking, started with menthol cigarettes. While we are working to eradicate the sale of menthol in our communities, those who smoke menthol will not be criminalized. Instead, we will hold sellers accountable. It is time to ban these products and protect Black and brown people from Big Tobacco companies hoping to profit at their expense. I was proud to allocate $500,000 to go towards the completion of Claremont House! This 8-story, 100-percent residential building will offer affordable homeownership opportunities and include a mix of 20 one-bedroom, 16 two-bedroom, and four three-bedroom apartments. This was a commitment from the Jerome Rezoning Plan and I am proud to see it come to fruition. Thank you to the New York City Department of Housing Preservation and Development, Community Land Trust, Habitat NYC, Camber Property, and Almat Urban for their work on this vital project that will give land ownership back to our community.

45th Precinct Easter Egg-Stravaganza

 

It was a beautiful Sunday afternoon, and there were hundreds of different color plastic Easter Eggs scattered around in an area of Ferry Point Park waiting for children to pick them up and see what was inside. This was the 45th Precinct and Throggs Neck Community Alliance annual Easter Egg-Stravaganza. 

This years event was even more special as New York City Mayor Eric Adams attended and was the official Easter Egg Hunt opener. Mayor Adams was joined by Councilwoman Marjorie Velazquez, and Bronx Borough President Vanessa L. Gibson. Angela Torres the Executive Director of the Throggs Neck Community Alliance was the emcee of the event with 45th Precinct Council President Robert Bider, 45th Precinct Commanding Officer Captain Johnny Orellana, and Community Affairs Officer Rivera. 

Mayor Eric Adams arrived on time as he heads for the stage to be welcomed.

(L - R) 45th Community Affairs Officer Rivera, 45th Precinct Commanding Officer Captain Johnny Orellana, THCA Executive Director Angela Torres, Mayor Eric Adams (speaking), Mcgruff, 45th Precinct Council President Robert Bider, Councilwoman Marjorie Velazquez, and the Easter Bunny.

Mayor Adams would depart the stage with a police and security escort as he gives a little girl a High 5.

Councilwoman Velazquez explains to Mayor Adams the different areas that were set up in Ferry Point Park for the children to enjoy.

The mayor and councilwoman would stop to take photos with people attending the event.

There would also be stops at the various tables set up to thank volunteers working behind them. 

Bronx Borough President joined in for this photo with Mayor Adams and Councilwoman Velazquez.

On hand were the mounted police with their well trained police horses.

CONSUMER ALERT: New York Department of State’s Division of Consumer Protection Releases Guide with Tips for Navigating Rental Scams

Part One of Five-Part Consumer Alert Series to Help New Yorkers Navigate Housing Scams 

Follow the New York Department of State on Facebook, Twitter and Instagram for “Tuesday’s Tips” – Practical Tips to Educate and Empower New York Consumers on a Variety of Topics

Secretary Robert J. Rodriguez: “Finding a place to live can be stressful enough without the added worry of being scammed, so I encourage New Yorkers to follow our tips and learn how to spot a potential scam when looking for a new residence.” 

For this week’s “Tuesday’s Tips,” the New York Department of State’s Division of Consumer Protection announced the release of a comprehensive guide with practical tips to help New Yorkers identify and avoid rental scams. The guide is part one of a five-part consumer alert series to help New Yorkers navigate housing scams, which are a continuously growing risk for consumers. In 2022, the FBI received 11,727 real estate/rental scam related complaints with losses of over $396 million, an 86% increase compared to 2020. In the coming weeks, consumers will receive guidance on how to navigate housing scams when renting, buying a first home, protecting their homes, planning a home improvement project or looking for a moving or storage company. Follow the New York Department of State on Facebook, Twitter and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

“In today’s highly competitive housing market, renters are often targeted by scammers who use enticing offers to steal their hard-earned money,” Secretary of State Robert J. Rodriguez said. “Finding a place to live can be stressful enough without the added worry of being scammed, so I encourage New Yorkers to follow our tips and learn how to spot a potential scam when looking for a new residence.”

Looking for a rental home or apartment can be an expensive and time-consuming process, and as the cost of living continues to increase rental scams are becoming even more prevalent. Rental scams do not just harm renters, they can severely damage the reputations and livelihoods of New York’s honest, hardworking real estate agents.

To prevent a costly mistake, below are key tips on how to identify and avoid rental scams:

Confirm that the rental listing is legitimate and verify the source of the listing. Scammers often post fake listings of properties that are not on the market, or may copy a photo or description of a property from another source to use in their ad. A few minutes of research can prevent you from putting a security deposit on a rental that’s not an option for you. To verify if a rental is legitimate:

• Visit real estate websites and see if the rental you want is also listed in another city or available on another website with a different email address. 
• Run a reverse image search and see if you can find that listing anywhere on the internet. There are many reputable free online reverse image search platforms. If you find an identical listing with a different email address, that’s a red flag that it’s a scam.

Verify the identity of any Real Estate Professional. Confirm that the real estate professional you’re working with is licensed in New York by following these steps:

• Visit the NYS Department of State’s Public License Search database.
• Conduct an independent online search and check the phone number associated with their real estate license address. Call the number to verify.
• Request to see a copy of the Department of State issued photo license and arrange an in-person or video meeting to compare the ID.

Inspect the Premises. Avoid completing background checks, signing a lease agreement or paying any advance fees or deposits before having an opportunity to inspect the premises.

Be suspicious if asked to use payment methods that are untraceable. Scammers generally conduct transactions by phone, text message or email and often ask for a wire transfer, prepaid debit card, payment on a cash-based app or other method of payment that is not traceable. Instead, pay by check or with credit card and get receipts for any payments.

Request everything in writing. It is always better to leave a paper trail. Real estate professionals are required by law to provide you with copies of all instruments relating to the transaction.

Don’t give in to high-pressure sales tactics. Scammers may urge you to rent quickly before someone else gets the property, prompting you to possibly miss an important step in the evaluation process. While the rental market is tough right now with low supply and high demand, remember to be cautious about all the steps involved in a real estate transaction – including carefully reviewing the lease agreement and verifying the identity of those you are engaged with during the rental transaction.

Protect your privacy. Scammers often request personal information and money for background checks, then disappear. Refrain from providing personal information or your social security number unless you are absolutely sure you are dealing with a reputable business or agent.

About the New York State Division of Consumer Protection

The New York State Division of Consumer Protection provides resources and education materials to consumers, as well as voluntary mediation services between consumers and businesses. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumer-protection.

For other consumer protection tips and consumer alerts, consumers can visit the DCP website or follow DCP on social media via Twitter at @NYSConsumer or Facebook at www.facebook.com/nysconsumer.

MAYOR ADAMS CELEBRATES GRADUATION OF FIRST-EVER CYBER ACADEMY CLASS

 

Graduates From 21 Agencies Will Serve as Cyber Defenders to Fight Threats in Their Offices

New York City Mayor Eric Adams, New York City Chief Technology Officer (CTO) Matthew Fraser, and Chief Information Security Officer (CISO) Kelly Moan today honored 21 city employees who graduated from the first-ever New York City Cyber Academy — a specialized training program designed to bolster the city’s cybersecurity workforce and enhance agency cyber capabilities to defend against threats to essential services and critical infrastructure. In accordance with Mayor Adams’ Executive Order 10 (EO10), issued last February, graduates will serve as liaisons to the Office of Cyber Command, representing their agency and serving as the primary contact with the New York City Office of Technology and Innovation’s (OTI) Cyber Command.

“Congratulations to all our incredibly impressive graduates who are blazing the way to a secure future for New York City,” said Mayor Adams. “Technology is at the heart of nearly everything we provide to New Yorkers, running our water, electricity, and notifying us during an emergency. It is crucial to the future of our city, and that is why we must protect it. Cyber threats can bring our entire city to a halt if we’re not prepared, costing us time, millions of dollars, and even livelihoods and lives. These threats are not going away, and today’s graduating class will be our guardians by building a pipeline of cyber expertise. Together, we will keep New York City technology safe.”

“New York City is continuing to lead the charge on creating a workforce ready to handle the changing times and emerging issues — and the inaugural Cyber Academy is no different,” said First Deputy Mayor Sheena Wright. “I applaud the 21 graduates for serving our city, bolstering our cybersecurity infrastructure, and protecting all New Yorkers from any and all cyber-related threats.”

“New York City is the safest big city in the nation, despite facing constant cyber threats, because of its 24/7/365 vigilance, proactive defense measures, and strong local, state, and federal partnerships,” said CTO and OTI Commissioner Matthew Fraser. “The New York City Cyber Academy program fortifies our city’s overall cyber resilience by augmenting our cybersecurity workforce and fostering closer working relationships between participating agencies and OTI’s Cyber Command. I thank Mayor Eric Adams for continuing to prioritize our city’s cybersecurity, and the highly skilled team at Cyber Command, led by CISO Kelly Moan, for their extraordinary efforts on behalf of New Yorkers. Congratulations to the inaugural class of Cyber Academy graduates!”   

“Cybersecurity is a great equalizer — gaining skills in the field can launch a career to new heights,” said New York City Chief Information Security Officer Kelly Moan. “Just as important, teaching these skills across city government will help keep New York City, its systems, and its people safe. Thank you to Mayor Adams and CTO Fraser for making cybersecurity and workforce development such a critical priority in this administration, and congratulations to our ever-impressive group of graduates.”  

“In our modern world, cyber security is no longer optional — it is absolutely necessary,” said New York City Police Department (NYPD) Commissioner Keechant L. Sewell. “That’s what makes this citywide effort, spearheaded by the Office of Cyber Command, so critical to our public safety mission. Securing the flow of digital information requires advanced technical skillsets, and the specialized training offered by the Cyber Academy enhances every aspect of the work we do. The NYPD is proud to partner with the Mayor’s Office and numerous other agencies as we step forward into the next era of policing in New York City.”

“The number of cyberattacks on government agencies is fast growing and consistently challenges our way of safeguarding critical infrastructure and private information,” said Fire Department of the City of New York (FDNY) Commissioner Laura Kavanagh. “The FDNY is grateful to have a strategic partner in the city’s Office of Technology and Innovation. With programs like the New York City Cyber Academy, we are better positioned to meet cyber threats head on, so that our first responders can do what they do best — protect the lives and property of New Yorkers.”

“Protecting New York City’s health demands safe, secure, and effective data infrastructure to plan and evaluate our population health strategies, and to drive resources into the programs and into the communities that will make the biggest difference in protecting and improving the health of our city,” said New York City Department of Health and Mental Hygiene Commissioner Dr. Ashwin Vasan. “Congratulations to the graduates of the Cyber Academy, especially the agency’s own Fazle Chowdhury. The Health Department is grateful for the hard work to build skills that will make our agency and our city more secure from whatever threats come our way.” 

“We are so proud that Mikhail Katsev from the Mayor's Office of Housing Recovery Operations (HRO) is part of the city's inaugural Cyber Academy class,” said New York City Chief Housing Officer Jessica Katz. "The New Yorkers whose homes continue to be made safer by HRO's work can rest assured that Mikhail will also keep their digital information secure. Congratulations to Mikhail and all the Cyber Academy graduates!”

“As DSS continues to implement new technologies and transitions more services online, robust cybersecurity is essential to our efforts to provide critical benefits and services to New Yorkers and safeguard sensitive information,” said New York City Department of Social Services (DSS) Acting Commissioner Molly Wasow Park. “We are grateful that this administration is prioritizing cybersecurity at a time when cyberattacks are increasingly prevalent, and we are so proud of all of today’s graduates, including our own Iwan Axt who will serve as DSS’ Cyber Command liaison and further strengthen our connection with OTI.”

“Cybersecurity is top of mind across all New York City agencies. At city Planning, where we produce and support many of the city’s data systems, initiatives to protect infrastructure and sensitive data are at the center of our work,” said New York City Department of City Planning Director Dan Garodnick. “I want to thank the mayor, Chief Technology Officer Matthew Fraser, and Chief Information Security Officer Kelly Moan, along with City Planning’s ITD Division and Antonio Caceres for stepping up to take on this significant responsibility to work with the Office of Technology and Innovation’s Cyber Command. Thank you, Antonio!”

“Congratulations to the graduates of the city’s inaugural Cyber Academy, including our very own Cesar Cabrera, who has worked in the Division of Information Technology at ACS since 2019,” said New York City Administration for Children’s Services (ACS) Commissioner Jess Dannhauser. “This is a wonderful achievement for both the graduates and New York City as a whole, as it means that New York City’s information technology infrastructure is better protected than ever before.”  

“Our DYCD family couldn’t be prouder of Ramian Gyan, who started with us in 2018 and is being honored as one of the 21 graduates of the Cyber Academy’s inaugural class,” said New York City Department of Youth and Community Development (DYCD) Commissioner Keith Howard. “Ramian is a shining example of how Mayor Adams and the administration are preparing our best and brightest to combat the ever-present threats against cybersecurity. Congratulations to Ramian and all the esteemed graduates who will make DYCD, our sister agencies, and New York City even more secure so that we can safely deliver services to New Yorkers.”

 “The Cyber Academy is an innovative resource for the city’s tech teams, who represent a special breed of highly skilled public servants committed to serving and protecting their community,” said New York City Taxi and Limousine Commissioner David Do. “We are proud to have our very own information security analyst graduating from this inaugural class, the first of many that will go on to keep city operations and services safe from cyberthreats.”

“Preventing cyberattacks and safeguarding sensitive customer information is crucial to DOF’s mission of safely and efficiently collecting the revenues that make every city service possible,” said New York City Department of Finance (DOF) Commissioner Preston Niblack. “We are grateful for the opportunity to participate in OTI’s inaugural Cyber Academy, and we thank all of today’s graduates, including DOF’s own CIO/CISO Ron Richardson, for their tireless work to protect the city's critical infrastructure, as well as the private information of New Yorkers." 

“Congratulations to all the graduates of the inaugural Cyber Academy,” said New York City Business Integrity Commission (BIC) Commissioner and Chair Elizabeth Crotty. “This is not only a benefit to the Business Integrity Commission, but to all of the participating agencies on the front lines of how we are working to improve and digitize our processes to ensure efficiency and information security along with improving public safety. Cyber security is a top priority for the city, especially for regulatory agencies like BIC. I would like to thank OTI for their leadership in this area and for inviting BIC to be a part of this inaugural Cyber Academy class.”

“As the city’s independent administrative law court, OATH handles sensitive information across a variety of systems,” said Office of Administrative Trials and Hearings (OATH) Commissioner and Chief Administrative Law Judge Asim Rehman. “Congratulations to our Cyber Academy graduate Quiana Battle, who, along with our stellar IT team, will help ensure that data held by OATH remains secure so that we can focus on administering fair and impartial justice for New Yorkers.”

“New York City has embraced the digital age, being home to the nation’s largest tech workforce,” said New York City Mayor’s Office of Contract Services (MOCS) Director Lisa Flores. “Investing in the professional development of our public servants is necessary to protect our city’s interests and the interests of every New Yorker. It is the city’s responsibility to seek out ways to better safeguard sensitive information from those seeking to cause harm by illegally obtaining data and personal information. One way we can do this is to provide continued education opportunities on a consistent basis to our professionals. I applaud the New York City Office of Technology and Innovation for launching our city’s inaugural Cyber Academy class. Congratulations to MOCS’ very own Joseph Clarke, Cybersecurity IT engineer manager, and the rest of the academy’s graduating class.”

Part of OTI, the city’s Office of Cyber Command tracks more than 90 billion suspicious cyber events each week — an incident visibility much closer to the U.S. Department of Defense than other U.S. cities and states. Using cutting-edge technology, Cyber Command is able to whittle down those 90 billion events to 50 investigations by its highly trained team of cyber defenders.

In February 2022, Mayor Adams signed EO 10, which required each city agency to designate a cyber command liaison to work with the Office of Cyber Command to share information, monitor threats, and adopt best practices around cybersecurity. The inaugural New York City Cyber Academy program provided participants with a specialized instructor-led, web-based, and experiential training that focused on incident response, network security, and cyber threat intelligence. Future cohorts are planned for this spring and fall and will include city employees from agencies that did not participate in this first class. The goal is to have a graduate in each city agency and office by the end of 2024.

The inaugural Cyber Academy’s graduates are (in alphabetical order):

•  Iwan Axt, New York City Department of Social Services
• Quiana Battle, New York City Office of Administrative Trials and Hearings
• Cesar Cabrera, New York City Administration for Children’s Services
• Antonio Caceres, New York City Department of City Planning
• Patrick Cheung, New York City Police Department
• Fazle Chowdhury, New York City Department of Health and Mental Hygiene
• Joseph Clarke, Mayor’s Office of Contract Services
• Dennis Green, Police Pension Fund
• Ramian Gyan, New York City Department of Youth & Community Development
• Aditi Halder, New York City Department of Transportation
• Harry Halikias, New York Public Library
• Chengying He, Fire Department of New York
• Mikhail Katsev, Mayor’s Office of Housing Recovery Operations
• Noah Klingaman, Business Integrity Commission
• Jordan Mamet, New York City Taxi & Limousine Commission
• Olin McFadden, Special Narcotics Prosecutor
• Ron Richardson, New York City Department of Finance
• Deshard Stevens, New York City Commission on Human Rights
• Jason Suazo, New York City Office of Technology and Innovation
• Victor Tavares, New York City Comptroller’s Office
• Derick Yu, New York City Conflicts of Interest Board

 In addition to its work with city agencies, the Office of Cyber Command works closely with state and federal partners, as well as the private sector, to ensure maximum defense, deterrence, and resilience. On the same day Mayor Adams signed EO 10, he was joined by New York Governor Kathy Hochul to launch the Joint Security Operations Center in Brooklyn, a first-of-its-kind hub for coordinating cybersecurity efforts across New York state, helping foster collaboration among city, state, and federal entities.

Former Start-Up CEO Charged In $175 Million Fraud

 

Former CEO of Frank Charged with Making False Claims and Submitting False Data to J.P. Morgan Chase in $175 Million Acquisition Fraud Scheme

 Damian Williams, the United States Attorney for the Southern District of New York, and Patricia Tarasca, the Special Agent in Charge of the New York Regional Office of the Federal Deposit Insurance Corporation’s Office of the Inspector General (“FDIC-OIG”), announced the unsealing of a criminal Complaint charging CHARLIE JAVICE with falsely and dramatically inflating the number of customers of her company, Frank, in order to fraudulently induce J.P. Morgan Chase (“JPMC”) to acquire Frank for $175 million.  JAVICE, who appeared on the Forbes 2019 “30 Under 30” list, stood to gain over $45 million from the fraud.

JAVICE was arrested last night in New Jersey and will be presented later today before U.S. Magistrate Judge Barbara Moses.

U.S. Attorney Damian Williams said: “As alleged, Javice engaged in a brazen scheme to defraud JPMC in the course of a $175 million acquisition deal.  She lied directly to JPMC and fabricated data to support those lies — all in order to make over $45 million from the sale of her company.  This arrest should warn entrepreneurs who lie to advance their businesses that their lies will catch up to them, and this Office will hold them accountable for putting their greed above the law.”

FDIC-OIG Special Agent in Charge Patricia Tarasca said: “The allegations described in today’s criminal Complaint exemplify the many ways banks can be defrauded.  The FDIC-OIG remains committed to holding individuals accountable who threaten the integrity of financial institutions, and we thank our law enforcement partners for their diligence and dedication to investigating such crimes.”

According to the Complaint unsealed today in Manhattan federal court:[1]

In or about 2017, JAVICE founded TAPD, Inc., d/b/a Frank (“Frank”), a for-profit company that offered an online platform designed to simplify the process of filling out the Free Application for Federal Student Aid (“FAFSA”).  FAFSA is a federal government form, available free of charge, that students use to apply for financial aid for college or graduate school.  JAVICE was Frank’s CEO.

In or about 2021, JAVICE began to pursue the sale of Frank to a larger financial institution.  Two major banks, one of which was JPMC, expressed interest and began acquisition processes with Frank.  JAVICE represented repeatedly to those banks that Frank had 4.25 million customers or “users.”  JAVICE explicitly defined “users” — to both banks — as individuals who had signed up for an account with Frank and for whom Frank therefore had at least four identified categories of data (i.e., first name, last name, email address, and phone number).  In fact, Frank had less than 300,000 users.

When JPMC sought to verify the number of Frank’s users and the amount of data collected about them — information that was critical to JPMC’s decision to move forward with the acquisition process — JAVICE fabricated a data set.  To do this, JAVICE and a co-conspirator (“CC-1”) first asked Frank’s director of engineering to create an artificially generated data set (a so-called synthetic data set).  The director of engineering raised concerns about the legality of the request, to which JAVICE responded, in substance and in part, “We don’t want to end up in orange jumpsuits.”  The director of engineering declined the request.

JAVICE then approached an outside data scientist and hired him to create the synthetic data set.  After the data set was created, JAVICE provided that synthetic data set to an agreed-upon third-party vendor in an effort to confirm to JPMC that the data set had over 4.25 million rows.  JAVICE then caused the third-party vendor to convey to JPMC that the data set had over 4.25 million rows, consistent with JAVICE’s misrepresentations that Frank had 4.25 million users.

In reliance on JAVICE’s fraudulent representations about Frank’s users, JPMC agreed to purchase Frank for $175 million.  As part of the deal, JPMC hired JAVICE and other Frank employees.  JAVICE received over $21 million for selling her equity stake in Frank and, per the terms of the deal, was to be paid another $20 million as a retention bonus.

Unbeknownst to JPMC, at or about the same time that JAVICE was creating the fabricated data set, JAVICE and CC-1 sought to purchase, on the open market, real data for over 4.25 million college students to cover up their misrepresentations.  JAVICE and CC-1 succeeded in purchasing a data set of 4.5 million students for $105,000, but it did not contain all the data fields that JAVICE had represented to JPMC were maintained by Frank.  JAVICE then purchased an additional set of data on the open market in order to augment the data set of 4.5 million users.  After JPMC acquired Frank, JPMC employees asked JAVICE and CC-1 to provide data relating to Frank’s users so that JPMC could begin a marketing campaign to those users.  In response, JAVICE provided what was supposedly Frank’s user data.  In fact, JAVICE fraudulently provided the data she and CC-1 had purchased on the open market at a small fraction of the price that JPMC paid to acquire Frank and its purported users.

JAVICE, 31, of Miami Beach, Florida, is charged with one count of conspiracy to commit bank and wire fraud, one count of wire fraud affecting a financial institution, and one count of bank fraud, each of which carry a maximum sentence of 30 years in prison, and one count of securities fraud, which carries a maximum sentence of 20 years in prison. 

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the Special Agents from the U.S. Attorney’s Office for the Southern District of New York and from FDIC-OIG.

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 description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Governor Hochul Issues Proclamation Declaring April as Child Abuse Prevention Month

Directs State Landmarks to be Illuminated in Blue Tonight, April 3, to Spread Awareness

State Office of Children and Family Services Hosts Annual Pinwheel Planting and Highlights Key Prevention Programs

Read Proclamation Here

 Governor Kathy Hochul today recognized April as Child Abuse Prevention Month in New York State, issuing a proclamation and directing that 13 State landmarks be illuminated in blue tonight, April 3, in commemoration. Coinciding with this proclamation, the State Office of Children and Family Services hosted its annual 'pinwheel planting' event in Huyck Park in the city of Rensselaer to raise awareness and highlight the need for all New Yorkers to do their part to keep children safe from abuse and maltreatment.

"All children deserve a warm and supportive environment to grow that is free from maltreatment and abuse," Governor Hochul said. "As we begin Child Abuse Prevention month, we are reminded that we all must do our part to keep New York's children safe. By working together and investing in upstream prevention programs, we can ensure children in our state will reach their full potential."

This year's theme for the month is 'Family Strengthening and Support,' highlighting how OCFS and other State agencies have collaborated with their community partners to develop bold new evidence-based initiatives designed to protect children and help families thrive. OCFS commemorated the month by planting pinwheels -the national symbol for a childhood free of fear and trauma - nearby the agency's offices in Rensselaer.

In addition to issuing the proclamation, Governor Hochul directed that 13 State landmarks and buildings be illuminated in recognition of Child Abuse Prevention Month. The landmarks and buildings illuminated tonight, April 3, include:  

• One World Trade Center
• Governor Mario M. Cuomo Bridge
• Kosciuszko Bridge
• The H. Carl McCall SUNY Building
• State Education Building
• Alfred E. Smith State Office Building
• Empire State Plaza
• State Fairgrounds - Main Gate & Expo Center
• Niagara Falls
• Albany International Airport Gateway
• MTA LIRR - East End Gateway at Penn Station
• Fairport Lift Bridge over the Erie Canal  
• Moynihan Train Hall

Governor Hochul continues to support family and childhood initiatives designed to increase protective factors that reduce the risk of child abuse or maltreatment. Last year, she provided $12 million to open and expand family opportunity centers, which promote positive parenting and family well-being through community or school-based support services.

OCFS also updated New York State's mandated reporter training program in an effort to undo bias in the child welfare system, which has disproportionately impacted the Black and Latinx community for decades. This effort was also aimed at reducing unnecessary calls to the Statewide Central Register of Child Abuse and Maltreatment based solely on race and poverty, and to help mandated reporters better understand the impact of adverse childhood experiences to prevent inflicting additional trauma on children and families.

OCFS also expanded Healthy Families NY, an intensive, voluntary in-home visiting program offering family services in partnership with non-profit community-based organizations, to all 62 counties in New York including the five boroughs of New York City.

In addition, OCFS has established the HEARS Family Line, which is designed to connect families to community resources offering help with housing, food, health care and more. The line is available for all New Yorkers and can be reached at 1-888-55HEARS (1-888-554-3277) from 8:30 a.m. to 4:30 p.m., Monday through Friday, and is available in 12 languages.