Friday, May 12, 2023

Bronx Chamber of Commerce - Bronx Business News You Can Use





(Friday) Extra, Extra
M/WBE Advocacy Day
Bronx Week Kick-Off
425 Grand Concourse w. MBD Housing & Trinity Financial
Panda Express, White Plains Road Grand Opening
NYC BEST & Avenue NYC Supports 138th Street Corridor

Legislative & Advocacy Updates
Department of Consumer Affairs Updates

Upcoming Events
Community Day of Action - Mott Haven, 5/13/2023 at 9am - 134th St & Alexander Ave.
Exploring Makers & Breweries, 5/23/2023 at 6pm - The Bronx Brewery
Joseph P. Kelleher Memorial Golf Tournament, 6/20/2023 - Trump Links at Ferry Point

Member Spotlight
Friday Extra 5 12 2023
Ask a Mentor: Virtual Panel, hosted by iMentor, on Tuesday, May 23 at 6:00pm

From our member & community partner, iMentorAsk a Mentor: Virtual Panel is an opportunity to hear stories, ask questions, and gain insight from panelists who have each come from where you are on your journey towards becoming a mentor! Register
NYS M/WBE ADVOCACY DAY
MOCS IN YOUR NEIGHBORHOOD
From City Hall to the NYS Capital we are fighting for Bronx M/WBE Businesses.

The Bronx Chamber leadership team joined Senator Sanders, Assemblymember Septimo, and Assemblymember Bichotte Hermelyne for M/WBE Advocacy Day - working to get additional resources, contracts, and services to the Bronx Minority / Women Business Enterprises.

Did you know the Bronx Chamber leads the way on City and State M/WBE business certification and partners with the public and private sector on procurement opportunities for Bronx businesses?

Want to learn more of become certified? Email: programs@bronxchamber.org

Learn more about NYC Contracting, join the Bronx Chamber of Commerce and the Mayor's Office of Contract Service for MOCS in Your Neighborhood, Wednesday, May 17 at 10:30am.

Want to make New York City your customer? You'll need to use the City's digital procurement platform, Procurement and Sourcing Solutions Portal (PASSPort). In an ongoing effort to provide businesses with the critical support needed to do business with the City, the Mayor's Office of Contract Services (MOCS) offers this in-person workshop series.
BRONX WEEK KICKS OFF AT THE BRONX
CHILDREN'S MUSEUM
Celebrating Our Borough - Bronx Week 2023! ⁦

The Bronx Chamber of Commerce is excited to partner with the Office of the Bronx Borough President and officially launch Bronx Week 2023 - a celebration of everything Bronx! Today, the Bronx Chamber leadership team was delighted to join leaders from throughout the borough to kick off Bronx Week at the Bronx Children's Museum and we are thrilled to partner on a slew of events celebrating the Bronx business community. This partnership is underscored by our strong commitment to our Bronx Chamber members and the broader Bronx business community as well as our collaboration with the Bronx Overall Economic Development Corporation and the Bronx Tourism Council. 

For more info visit: www.ilovethebronx.com

Photo: Bronx BP Vanessa Gibson, 1010 Wins Reporter and Bronx Chamber supporter Juliet Pappa, Bronx Chamber Board Member John Calvelli (Wildlife Conservation Society), and Marcos Crespo of Montefiore Medical Center.
425 GRAND CONCOURSE
MBD HOUSING & TRINITY FINANCIAL SET NEW HOUSING STANDARD
The Bronx is building...smartly.

The Bronx Chamber's leadership team joined MBD Housing, Trinity Financial and M/WBE contractors from throughout NYC to tour 425 Grand Concourse - a new construction, mixed use building on the Grand Concourse. Built at the Bronx's first passive house, the building boasts sustainability, affordability and what will become the Fall 2023 home of the new Hostos Community College Student Life Center.

Grateful to Derrick Lovett, CEO of MBD Housing for his leadership in bringing quality and smart housing to the South Bronx.
GRAND OPENING OF CHAMBER MEMBER PANDA EXPRESS
Celebrating new Bronx businesses!

The Bronx Chamber of Commerce welcomes our new member Panda Express and congratulates them on the Grand Opening of their new location on White Plains Road. 

Photo: Ribbon Cutting of the new location led by Small Business Resource Network Director Darry Saldana and local business and community leaders on White Plains Road.

For more info on becoming a member: membership@bronxchamber.org
NYC BEST PROGRAM & AVENUE NYC - MOTT HAVEN SUPPORT 138TH STREET BUSINESSES
Putting Small Businesses First

The Bronx Chamber of Commerce Avenue NYC Program Manager, Tony Billups, accompanied NYC Department of Small Business Services' NYC BEST team along the 138th Street Corridor in the Mott Haven section of the South Bronx. The program educates business owners on free services available through their program. This program and tour was provided as part of the Bronx Chamber's NYC BID Day celebration - acknowledging the importance of our City's commercial corridors. During NYC BID Day, Chamber team members visited every business improvement district and emerging district to offer Bronx Chamber services and promote the Small Business Resource Network and Avenue NYC Program.

Services include:

  • ️  Getting Licenses & Permits Faster 
  • ️   Avoiding Fines & Violations
  •  ️ Understanding City Requirements 
  • ️  Preparing for Inspections

For a list of services, visit NYC.GOV/NYCBEST
LEGISLATIVE & ADVOCACY UPDATES
NYC Department of Consumer Affairs Update - The Department of Consumer and Worker Protection (DCWP) enforces NYC’s Third-Party Food Delivery Service Laws, which cap the fees that third-party delivery apps can charge restaurants. The laws require DCWP to issue a report on the fee caps and DCWP would like to hear from you to inform our recommendations.
 
Please find attached a flyer on how you can provide feedback on the City’s fee caps and email RuleComments@dcwp.nyc.gov by Friday, May 26, 2023 with your comments.
UPCOMING EVENTS
Volunteer Day of Action - Alexander Avenue
May 13 at 9:00am

Join the Bronx Chamber of Commerce & community leaders for a Day of Action and Community Clean Streets Day on Saturday, May 13th from 9am - 1pm.

The program is hosted by the Bronx Chamber of Commerce, Mott Haven Merchant Association, NYC agencies, the Avenue NYC - Mott Haven program, and local community leaders.
Volunteer Day of Action - Graham Triangle at 138th St
May 20 at 9:00am

Join the Bronx Chamber of Commerce & community leaders for a Day of Action and Community Clean Streets Day on Saturday, May 20th from 9am - 1pm.

The program is hosted by the Bronx Chamber of Commerce, Mott Haven Merchant Association, NYC agencies, the Avenue NYC - Mott Haven program, and local community leaders.
Exploring Makers & Breweries Networking Reception
May 23 at 6:00pm

Join the Bronx Chamber of Commerce, New York City Department of Small Business Services, maker businesses, brewers, and distillers for an evening of networking, conversation, happy hour cocktails, and bites in the Port Morris Industrial Business Zone at Bronx Brewery with food by Empanology.
Joseph P. Kelleher Memorial Golf Tournament
June 20 at 7:30am

Trump Links at Ferry Point, 500 Hutchinson River Parkway Bronx, NY.  Over 200 notable thought partners, colleagues in business, and influential New Yorkers will tee off for the 2023 Joseph P. Kelleher Memorial Golf Tournament at Trump Golf Links at Ferry Point. The 2023 Tournament features two (2) tee times, breakfast, lunch, cocktails, and the 2023 Awards Dinner honoring NYC Housing, Preservation, and Development Commissioner Adolfo Carrion, Jr. 

 For the complete Bronx Chamber Events Calendar, featuring educational workshops, networking events and other opportunities hosted by the Chamber, its members, & partners, please visit and bookmark our website events calendar link in your browser - new events are added weekly

NYS Office of the Comptroller DiNapoli: NYC Has Recovered Nearly All Private Sector Jobs Unevenly Across Sectors

 

Office of the New York State Comptroller News

New York City Industry Employment Trackers Show Arts, Retail and Construction Remain Pre-Pandemic Levels

New York City has recovered 99.4% of private sector jobs it lost in the pandemic, but unevenly across key industries, according to an analysis released by New York State Comptroller Thomas P. DiNapoli.

“The city’s job recovery is good news,” DiNapoli said. “We are seeing strength in the securities, transportation and warehousing and office sectors, but retail, restaurants, construction and tourism continue to lag the national recovery. We need these sectors, which employ hundreds of thousands of workers, to also regain their full pre-pandemic strength to ensure the city’s economic recovery is more robust and inclusive of all New Yorkers.”

Comptroller DiNapoli monitors several industries vital to the city’s comeback and provides monthly updates on the New York City Industry Sector Dashboards, which he launched last year. Key findings across the arts, entertainment and recreation, construction, office, restaurants, retail, securities, tourism and transportation and warehousing sectors include:  

Arts, Entertainment and Recreation

  • The arts, entertainment and recreation sector saw an uptick in employment in March of 2023.
  • The sector has recovered only about 85% of pre-pandemic jobs, lagging the national job recovery rate for the sector of 96.4%.
  • Broadway reopened in September 2021 and makes up one of the largest shares of arts jobs but has been slow to come back. Attendance exceeded pre-pandemic levels for the first time in January of 2023, but has since remained below pre-pandemic levels.

Restaurants

  • As of March 2023, the restaurant sector has recovered 95.5% of pre-pandemic jobs, slightly below the rest of the state at 97.3%, and the nation, which has already fully recovered.
  • At the height of the pandemic, restaurants lost 73% of jobs compared to 22% in the rest of the private sector.

Retail

  • Retailers have only regained 87.4% of jobs in New York City compared to the nation which fully recovered its retail jobs as of March 2023.
  • The retail sector saw a 33% drop in jobs between March and April 2020 due to pandemic and mandatory closures of non-essential retail businesses.
  • The city’s Fiscal Year (FY) 2024 financial plan does not expect the sector to recover its pandemic job losses before 2027.

Tourism

  • The sector has yet to recovery nationally, and tourism employment in the city is still nearly 15% below the pre-pandemic level at the end of the third quarter in 2022.
  • Hotel occupancy was about 74% in 2022, far below pre-pandemic levels.

Construction

  • As of March 2023, the construction sector has yet to regain 8% of its pre-pandemic jobs. Year-to-date activity in 2023 lags the same period last year, although construction activity was strong in 2022.
  • At the onset of the pandemic, the construction sector lost 46% of its jobs compared to only 22% for the private sector, as New York State paused nonessential construction.
  • Over the last year, the sector has been hit by the rising interest rate environment influenced by the Federal Reserve’s actions to combat high levels of inflation.

Securities

  • The securities sector did not see a notable drop in employment at the onset of the pandemic, as employees were able to shift to remote work.
  • While the sector has experienced fluctuations in employment, job growth in the city continues to surpass that of the rest of the state. The sector is currently 6.4% larger than in 2019.
  • Sector profits reached $25.8 billion in 2022, 55.8% less than the prior year.

Transportation and Warehousing

  • The sector has recovered pandemic job losses despite being hard hit at the onset of the COVID-19 pandemic.
  • Employment growth was especially strong in warehousing and storage, and courier and messenger services, due to increased demand for e-commerce.
  • The Port of New York and New Jersey surpassed Los Angeles and Long Beach, California to become the biggest port by number of large shipping containers.

Office

  • The office sector, which includes the information, financial and real estate, and professional and business services industries regained pandemic job losses by January 2022.
  • As of March 2023, jobs in the sector were almost 4% above the pre-pandemic level in 2019.
  • Workers continue to return to the office, with the latest data showing an office occupancy rate of nearly 60% on peak days such as Tuesdays. However, concerns over commercial office space linger as vacancy rates remained at 22.2% in the first quarter of 2023.

These dashboards follow a series of reports DiNapoli’s office released over the past two years on the effect of the pandemic on these sectors.

Job levels April 23

Dashboards

Arts, Entertainment and Recreation

Construction

Office

Restaurant

Retail

Securities

Tourism

Industry Sector Reports

Arts, Entertainment and Recreation (issued in February 2021)

Construction (issued in June 2021)

Office (issued in October 2021)

Restaurants (issued in September 2020)

Retail (issued in December 2020)

Securities (issued in October 2021)

Tourism (issued in April 2021)


Council Votes on Bills to Address Issues in City’s Jail System, Establishing Population Review Process to Reduce Unnecessary Incarceration and Addressing Maternal Health


Council also passed legislation to ban discrimination based on a person’s height and weight, and packages of housing and education bills  

The New York City Council approved legislation to establish population review programs that determine whether people detained in city jails can have their cases resolved or be released into community programs to reduce unnecessary incarceration that inflate the city’s jail population. The bill is an important measure to help efforts towards the successful closure of Rikers Island jails. Another bill required annual reports on medical care and outcomes for incarcerated pregnant individuals. The Council also voted on legislation that would prohibit discrimination in employment, housing and public accommodations based on a person’s height and weight. There were also housing- and education-related bills passed at the Council’s Stated Meeting.

“It’s abundantly clear that Rikers is undermining public safety for New York City,” said Speaker Adrienne Adams. “We cannot allow Rikers to remain open past its legally mandated deadline, and the City must take active steps to ensure we move forward in a timely fashion. Today’s legislation is another step to help address the issues in our jail system and move us towards an effective one. I thank my Council colleagues for their support on this critical legislation.”

Solutions to Problems in City’s Criminal Justice & Jail Systems

Introduction 806-A, sponsored by Council Member Carlina Rivera, would require the establishment of a jail population review program to identify people in custody of the Department of Correction (“DOC”) whose cases could be resolved or who could be safely released into community-based programs.

Introduction 589-A, sponsored by Council Member Carlina Rivera, would require the Department of Correction (DOC), in consultation with relevant agencies, to submit an annual report on incarcerated pregnant individuals’ medical care and outcomes. This report includes specific information on the number of pregnant persons in custody, prenatal and postnatal care and maternal mortality data. 

Resolution 156-A, sponsored by Council Member Carlina Rivera, calls on the State legislature to pass and the Governor to sign the Treatment Not Jails Act. The state legislation would expand eligibility for court-involved individuals to receive treatment for mental illness and substance abuse, rather than be sent further into the criminal justice system

“Pregnant women should not be in jail, and those who are incarcerated must be treated with dignity and respect, and the City must be held accountable for their treatment and wellbeing,” said Council Member Carlina Rivera. “I’m proud to be passing legislation today that will make sure this population with unique health needs — including women with higher rates of trauma and mental illness — are getting the proper care while in custody, prior to, during and after childbirth. We must dramatically reduce the number of women who are incarcerated and increase available programs and neighborhood based treatment and support to protect our communities.”

Banning Discrimination Based on a Person’s Height or Weight

Introduction 209-A, sponsored by Council Member Shaun Abreu, would amend the New York City Human Rights Law (HRL) to prohibit discrimination in employment, housing, and public accommodations on the basis of a person’s height or weight.

“There is a glaring absence in New York City’s Human Rights Law: protections against height and weight discrimination, which affected 2 million New Yorkers alone in 2019. Size discrimination is a social justice issue and a public health threat. People with different body types are not only denied jobs and promotions that they deserve, but their whole existence has also been denied by a society that offers no legal remedy for this rampant prejudice,” said Council Member Shaun Abreu. “I am so proud that our city is finally taking action and leading the fight for size freedom and body positivity. Thanks to the advocates, labor organizations, and medical experts who united behind this cause, New York City will now be the most populous municipality in the world to ban size discrimination. It is my hope that other cities and states — and one day the federal government — will follow our lead. Our diversity only makes us stronger.”

Protecting Tenants and Enforcing Housing Regulations

Introduction 434-A, sponsored by Council Member Pierina Sanchez,will expand the Heat Sensors Program, which was established in 2020 as an additional tool for enforcing the Housing Maintenance Code. Under the Heat Sensors Program, the Department of Housing Preservation and Development (HPD) selects 50 multifamily buildings, aimed at targeting the worst offenders, to install heat sensors in the living room of every apartment in the selected buildings. The devices help monitor indoor temperatures to ensure that property owners are complying with the Housing Maintenance Code’s requirements to maintain certain indoor temperatures during heat season, which runs from October 1st to May 31st. This bill expands the number of participating buildings selected, refines the selection criteria for identifying participating buildings, improves notice to tenants, and increases HPD’s inspection requirements.     

Introduction 875-B, sponsored by Council Member Pierina Sanchez, will amend the city’s administrative code, the city’s plumbing code, the New York City building code, the New York city mechanical code and the New York city fuel gas code, in relation to technical corrections, clarifications and modifications to provisions of the New York city construction codes.

“Today’s passage of these bills marks a crucial step in our ongoing efforts to protect tenants, crack down on the worst landlords in order to preserve affordable housing, and ensure the safety of all New Yorkers. By expanding the Heat Sensor Program, we are taking a critical step towards improving housing quality and keeping New Yorkers safe in their homes. As it gets warmer outside, we must prepare for the next cold season. No one should have to choose between their safety and their comfort, sufficient heat must be provided safely by landlords, and with this expansion, we are doubling our efforts to hold bad actors accountable for denying tenants basic rights. Additionally, the technical corrections and modifications in Introduction 875-B will help ensure that our city’s construction codes are up-to-date and effective in protecting the health and safety of all New Yorkers while also advancing our commitment to combat climate change. I am proud to support these bills and their positive impact on our city,” said Council Member Pierina Sanchez.

Introduction 583-A, sponsored by Public Advocate Jumaane Williams, will increase penalties for violations issued by the Department of Housing preservation and Development, and requires HPD to maintain a certification of correction watch list. Any listed landlord on this watch list would be prohibited from certifying correction of violations in multiple dwellings, unless HPD has attempted at least two re-inspections, or those violations are excluded from the calculations that identify buildings on the watch list.

“Last year’s Worst Landlord Watchlist saw the most violations in its history as buildings deteriorate and rents rise under landlords who put profit over people,” said Public Advocate Jumaane Williams. “They exploit loopholes to shamelessly dodge accountability and avoid repairs, while tenants suffer. Passing this Worst Landlord law will prevent the worst owners in the city from self-certifying repairs that haven’t been made and increase penalties for failing to fix violations so that fines aren’t just part of the cost of doing business. Our list is designed in part to shame the worst landlords in the city — but for owners who are shameless in their negligence, this law will hold them to account and deliver relief to countless tenants facing unlivable conditions.”

Increasing Transparency at the Department of Education

Introduction 644, sponsored by Council Member Nantasha Williams, would require the Department of Education (DOE) to post information on its website informing people on how to establish afterschool programs.

“The Department of Education plays a crucial role in promoting educational opportunities beyond the regular school day,” said Council Member Nantasha Williams. “With Int. 644-A, accessible information on program setup will equip communities with the necessary tools to address the growing need for quality after-school options, promoting equity and enhancing educational outcomes for all learners.”

Introduction 868, sponsored by Council Member Althea Stevens, would require the DOE to report annually on the number of students in each building that provides a District 75 program, and the criteria the DOE uses to determine where D75 programs are established.

“This piece of legislation is an investment to our students on the back end, in addition to what is required to improve transparency and provide adequate information to guarantee the success of students of our District 75 programs,” said Council Member Althea Stevens. “Equity and accessibility are important, especially when we talk about our children’s education. One day, they will be filling the shoes that all of us walk in and will make historical strides, but first, as a city, we must ensure that we are providing our students with the tools and necessary support needed and that all starts with efficient data.”

Introduction 725, sponsored by Council Member Linda Lee, would require the DOE to create a centralized website to allow schools to list their surplus school supplies for other schools to claim.

“If we are to ensure that the next generation has the opportunities to succeed and thrive, we must provide the tools and resources necessary to facilitate quality educational experiences for every child in New York City,” said Council Member Linda Lee, Chair of the Committee on Mental Health Disabilities and Addictions. “Int. 725 will create a much-needed platform for school administrators to post surplus supplies to initiate exchanges, allowing enhanced communication to save precious resources, boost efficiency, and mitigate waste across public schools. Thank you, Speaker Adrienne Adams, Chair Rita Joseph, and my City Council colleagues, for your leadership and support in this effort for our students.”

Land Use

23-10 Queens Plaza South – will facilitate an enlargement of an existing 4-story building, which will result in a 26–story commercial building that will include office, retail and community facility uses in Council Member Won’s district.

2560 Boston Road Rezoning – will facilitate a new 9-story, mixed-use development, including approximately 333 affordable housing units, 15,000 square feet supermarket, 6,750 square feet community facility space and approximately 117 parking spaces in Council Member Velázquez’s district.  

The Coordinated Street Furniture Franchise Agreement – a Department of Transportation (DOT) request for the Council’s support in amending and extending the current 20-year agreement to a 25-year team with franchisee JCDecaux, to facilitate the expansion of bus shelters and automated public toilet installations citywide. 

Finance

·         Transparency Resolution: Approving new designations and changes of certain organizations receiving funding in the Expense Budget.

·         Pre-considered Resolution: Amending a previously granted tax exemption for one building in the Lower East Side in Council Member Carlina Rivera’s district. 

·         Pre-considered Resolution: Authorizing an Article XI exemption for one building in Bedford-Stuyvesant, in Council Member Chi Ossé’s district. 

·         Pre-considered Resolution: Authorizing an Article XI exemption for two buildings in Corona, in Council Member Francisco Moya’s district.

·         Pre-considered Resolution: Authorizing an Article XI exemption for one building in Bushwick, in Council Member Sandy Nurse’s district.

·         Pre-considered Resolution: Authorizing an Article V exemption for one building in Kips Bay, in Council Member Carlina Rivera’s district.

·         Pre-considered Resolution: Authorizing an Article XI exemption for one building in Bedford-Stuyvesant, in Council Member Chi Ossé’s district.

Silk Road Drug Vendor Who Claimed To Commit Murders-For-Hire For Silk Road Founder Ross Ulbricht Charged With Narcotics And Money Laundering Conspiracies

 

 Damian Williams, the United States Attorney for the Southern District of New York, and Thomas M. Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the unsealing of an Indictment charging JAMES ELLINGSON, a/k/a “redandwhite,” with narcotics trafficking and money laundering offenses in connection with his sale of large quantities of narcotics on the “Silk Road” online marketplace.  In connection with his drug trafficking on Silk Road, ELLINGSON claimed to have arranged for the murder of five people for Silk Road founder Ross Ulbricht, a/k/a “Dread Pirate Roberts,” for which he was paid hundreds of thousands of dollars in Bitcoin.  Law enforcement does not possess any evidence that the purported murders actually took place.  ELLINGSON was previously arrested in Canada.  The case is assigned to U.S. District Judge Jennifer L. Rochon.   

U.S. Attorney Damian Williams said: “As alleged, Ellingson used the Dark Web to ship dangerous drugs around the world, including to New York City.  He discussed with Silk Road’s founder a plot to kill five people and received hundreds of thousands of dollars in Bitcoin in exchange.  Others who would try to hide in the shadows of the Internet should know that federal law enforcement will continue to uncover crime, wherever and however committed.”

IRS-CI Special Agent in Charge Thomas M. Fattorusso said: “Ellingson’s alleged criminal actions are far more egregious than just money laundering or the large quantities of narcotics trafficked through the ‘Silk Road’ online marketplace.  He also claimed to have acted as the middleman between the Silk Road founder and murderers-for-hire.  Now, Ellingson will face the consequences of his actions.”

According to the allegations in the Indictment:[1]

ELLINGSON is a Canadian citizen who lived in the vicinity of Vancouver, Canada.  From 2011 to 2013, ELLINGSON sold large quantities of narcotics through the Silk Road online marketplace under the usernames “MarijuanaIsMyMuse” and “Lucydrop.”  Through his Silk Road usernames, ELLINGSON sold more than four kilograms of methamphetamine, more than 100 grams of heroin, more than two kilograms of cocaine, more than six grams of LSD, approximately seven kilograms of the drug commonly known as “ecstasy” or “MDMA,” and more than 19 kilograms of marijuana, among other narcotics, to Silk Road customers in exchange for Bitcoin, including to customers in New York City.       

In March 2013, ELLINGSON, using the Silk Road username “redandwhite,” contacted Ulbricht, Silk Road’s founder, regarding a purported Silk Road user who had threatened to release personal identifying information of Silk Road drug vendors and customers.  In these messages, Ellingson claimed to have control over most drug trafficking in Western Canada. 

In one message, Ulbricht informed ELLINGSON that “[the murder target] is a liability and I wouldn't mind if he was executed.”  In another message, Ulbricht stated: “[the murder target] is causing me problems . . . I would like to put a bounty on his head if it’s not too much trouble for you.  What would be an adequate amount to motivate you to find him?”  ELLINGSON responded, “[the p]rice for clean is 300k+ USD,” and the “[p]rice for non-clean is 150-200k USD depending on how you want it done.”  ELLINGSON further explained, in part, that “[t]hese prices pay for 2 professional hitters including their travel expenses and work they put in.” 

Ulbricht later sent ELLINGSON $150,000 worth of Bitcoin to pay for the purported murder.  ELLINGSON and Ulbricht agreed on a code to be included with a photograph to prove that the murder had been carried out.  In April 2013, ELLINGSON and Ulbricht exchanged messages reflecting that ELLINGSON had sent Ulbricht photographic proof of the murder.  A thumbnail of a deleted photograph purporting to depict a man lying on a floor in a pool of blood with tape over his mouth was recovered from Ulbricht’s laptop after his arrest.  A piece of paper with the agreed-upon code written on it is shown in the photograph next to the head of the purportedly dead individual.

Later in April 2013, ELLINGSON and Ulbricht exchanged additional messages regarding a plot to kill four additional people in Canada.  Ulbricht sent ELLINGSON an additional $500,000 worth of Bitcoin for the murders.  ELLINGSON claimed to Ulbricht in online messages that the murders had in fact been committed.  

Law enforcement does not possess any evidence that the purported murders ELLINGSON claimed to have arranged actually took place. 

ELLINGSON, 47, of Vancouver, British Colombia, Canada, is charged with one count of narcotics trafficking conspiracy and one count of narcotics importation conspiracy, which each carry a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison. 

The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.

Mr. Williams praised the outstanding investigative work of IRS-CI’s New York Field Office and thanked the U.S. Department of Justice’s Office of International Affairs for their assistance in the extradition proceedings. 

The charges contained in the Indictment 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 Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.