Saturday, June 24, 2023
Friday, June 23, 2023
Recidivist Fraudster Charged With Fraud And Identity Theft In Connection With Real Estate Investment Ponzi Scheme
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging WILSON BASTON, a/k/a “Chanon Gordon,” a/k/a “William Baston,” a/k/a “Jackie Wilson,” with wire fraud, securities fraud, and aggravated identity theft in connection with a scheme to defraud investors in a series of purported real estate investments managed by BASTON and the entity Gordon Management Group (“GMG”). BASTON was arrested this morning in New York and was presented in federal court this afternoon.
FBI Assistant Director in Charge Michael J. Driscoll said: “As alleged, the defendant ran a fraudulent scheme which used funds intended for real estate investment to repay other investors or use on lavish personal expenses. This fraud, like many Ponzi schemes, guaranteed large returns on investment, but proved too good to be true. The FBI will continue to ensure that fraudsters are held responsible for their scams in the criminal justice system.”
According to the allegations in the Indictment unsealed in Manhattan federal court:[1]
Between 2018 and 2023, WILSON BASTON engaged in a scheme to defraud investors in a series of purported real estate investments managed by GMG. In order to defraud his investors, BASTON falsely represented that he would use investor money to fund real estate transactions in the New York City area. However, in truth and in fact, BASTON operated GMG as a Ponzi scheme. Rather than use investment contributions to fund real estate transactions as he promised, BASTON instead used funds from new and existing investors to repay money that was owed to other investors. BASTON also misappropriated investor funds by spending them on personal expenses such as payments to a luxury carmaker.
BASTON typically made false promises of guaranteed short-term, high rates of return on investments in real estate deals, with additional guarantees on the principal investment. On many occasions, BASTON initially repaid both the principal and interest as promised to garner trust with his investors and entice them to continue investing in GMG — and in many cases, to invest additional, larger sums of money. BASTON then ceased paying the victims the promised interest and did not return the principal on the deals they had invested in.
Eventually, when victims began to complain to BASTON about not getting their money as promised, BASTON provided increasingly outlandish excuses and avoided responding to their inquiries. At times, BASTON also gave false excuses and explanations as to why the investors had not been paid.
In some instances, BASTON paid investors with the funds he received from existing investors, or the funds of new investors, rather than from any purported investments, in a Ponzi-like fashion. BASTON also used certain investment funds for personal expenditures. Further, in order to avoid detection and falsely instill confidence in his investors, BASTON, who was previously convicted in federal court of 17 counts of mail and wire fraud for operating a similar fraudulent investment scheme, hid his true identity and the fact of his prior conviction from his investors by falsely representing that his name was “Chanon Gordon.”
WILSON BASTON, 62, of Brooklyn, New York, is charged with one count of wire fraud and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a two-year mandatory sentence in addition to any sentence imposed.
The statutory maximum and mandatory penalties 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 a judge.
Mr. Williams praised the outstanding work of the FBI on the investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in this investigation.
The charges 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 in this release constitute only allegations, and every fact described should be treated as an allegation.
RIKERS ISLAND INMATES INDICTED ON ASSAULT CHARGES FOR VICIOUS BEATING OF FELLOW DETAINEE IN JAIL
Victim’s Spleen Was Lacerated, Needed to Be Removed; He Is Still Undergoing Rehabilitation
Bronx District Attorney Darcel D. Clark today announced that four Rikers Island inmates have been indicted on Gang Assault and related charges for brutally beating a fellow inmate, leaving him hospitalized with serious injuries.
District Attorney Clark said, “The defendants allegedly carried out a brutal, unprovoked attack against a fellow detainee inside a facility on Rikers Island. They allegedly punched and kicked the victim so severely that his spleen had to be removed and his rib was fractured, among other serious injuries. We will not tolerate violence on Rikers Island and are doing everything we can to hold people accountable for it, but more must be done to prevent such incidents.”
District Attorney Clark said the defendants Moquease Mendez, 18, and Shatike Robinson, 23, were arraigned on June 21, 2023 on first-degree Assault, first-degree Gang Assault, seconddegree Gang Assault, two counts of second-degree Assault and third-degree Assault before Bronx Supreme Court Justice George Villegas. The defendants were remanded and are due back in court on September 13, 2023. Two other defendants, former detainees Akeem Williams, 22, and Nicholas White, 24, have also been indicted on the same charges and are awaiting arraignment.
According to the investigation, at approximately 5:40 a.m. on May 17, 2023, inside a bathroom in the intake holding cell of the Eric M. Taylor Center, as multiple detainees were awaiting processing, Mendez began to antagonize a 39-year-old detainee. The defendant allegedly threw objects at the victim and splashed him with milk. Mendez then allegedly kicked and punched the victim multiple times. After the victim exited the bathroom to get assistance, Mendez, Robinson and Williams allegedly struck the victim multiple times, then followed him and White allegedly joined them to punch and kick the victim about the body, mostly in his abdomen.
The victim was taken to a local hospital for abdominal pain, a rib fracture, and a Grade 4 splenic laceration with multiple pseudoaneurysms. The victim suffered internal bleeding and had to undergo surgery. He needed a second surgery to remove his spleen and was intubated. The victim was discharged from the hospital after two weeks and his rehabilitation continues.
District Attorney Clark also thanked the New York City Department of Correction Intelligence Bureau, specifically Investigators Korab Hasangjekaj, Jeffrey Rios, and Walter Holmes, for their work in the investigation.
An indictment is an accusatory instrument and not proof of a defendant’s guilt.
MAYOR ADAMS’ STATEMENT ON 2023 STATE LEGISLATIVE SESSION
New York City Mayor Eric Adams today hailed the state Legislature’s passage of a number of significant priorities for the City of New York, following the New York State Assembly's return to Albany this week. Key priorities passed on behalf of the City of New York include:
- Community Hiring legislation allowing the city to leverage its purchasing power to connect low-income New Yorkers and those residing in economically-disadvantaged areas with good jobs.
- Key recommendations of the city's Capital Reform Task Force, which will increase opportunities for minority and women owned firms to secure city design and construction contracts, creating good jobs for New Yorkers.
- The Affordable Housing Rehabilitation Program, which will help preserve rent protections in many New York City apartment buildings and prevent affordable housing stock from falling into disrepair.
- Expanding and modernizing the New York City Department of Housing Preservation and Development’s ability to finance more affordable housing.
- Increased rental support for older adults and New Yorkers living with disabilities, and expanded protections for victims of deed theft.
- Legislation related to making Diwali a school holiday.
- Critical finance extenders ensuring the continuity of operations.
- Measures to support the legal cannabis industry.
Mayor Adams issued the following statement on the 2023 legislative session:
“I want to thank Majority Leader Stewart Cousins, Speaker Heastie, and the sponsors and supporters of the many pieces of legislation we proposed that have passed this post-budget session. We look forward to working with Governor Hochul to see them enacted into law so they can improve the lives of millions of New Yorkers.
“Thanks to these efforts, we will be able to protect more of our affordable housing and help vulnerable New Yorkers stay in their homes. New Yorkers who have struggled to find good-paying jobs will have better access to the opportunities created by city investments. Minority and women business owners will have the chance to grow their companies and create more jobs for their neighbors. And the city will be able to deliver critical infrastructure projects faster, better, and with fewer taxpayer dollars.
“We remain extremely concerned about a number of significant policies, including key pieces of our affordable housing agenda, that did not yet pass — and we will continue fighting to get those done in the months ahead. But New Yorkers should celebrate the important progress we have made in partnership with the state, and we look forward to even more opportunities for collaboration with Governor Hochul and the state Legislature.”
BRONX MAN SENTENCED TO 83 YEARS TO LIFE IN PRISON FOR KILLINGS OF TWO BRONX MEN AND ATTEMPTED MURDER OF A THIRD MAN
Defendant Convicted After Jury Trial
Bronx District Attorney Darcel D. Clark today announced that a Bronx man was sentenced to 83 years to life in prison for killing two men and wounding a third in two shootings in 2019.
District Attorney Clark said, “The defendant will spend a lifetime behind bars for taking the lives of two people and wounding another man in two acts of senseless shootings within three months on Bronx streets. If you commit gun violence we will prosecute you to the fullest of our ability.”
District Attorney Clark said the defendant, Dane Richardson, 40, last of 2137 Bruckner Boulevard, was sentenced today by Bronx Supreme Court Justice Margaret Clancy. The defendant was sentenced to 25 years to life for the murder of Nestor Ventura, 25 years plus five years of post-release supervision for the manslaughter of Stephon Brown, 25 years plus five years post-release supervision for the Attempted Murder of Rory Brown, to run consecutively. He was sentenced to eight years plus three years’ post-release supervision on each of two counts of Criminal Possession of a Controlled Substance. The sentences run consecutive to each other (except for the two drug sentences which run concurrent to each other) for a total of 83 years to life.
The defendant was found guilty of second-degree Murder, first-degree Manslaughter, Attempted Murder in the second-degree, and two counts of third-degree Criminal Possession of a Controlled Substance after a jury trial.
According to the investigation, on August 18, 2019, at approximately 3:50 a.m. in front of 539 Commonwealth Avenue, Richardson shot Nestor Ventura, 26, multiple times leading to his death. On November 17, 2019, at approximately 9:10 p.m. near 1725 Randall Avenue, the defendant shot and killed Stephon Brown, 19, and shot and wounded his brother, Rory Brown, 21, leading to his hospitalization.
Richardson was arrested on December 4, 2019, at a motel on the New England Thruway, where he was found to be in possession of crack cocaine.
District Attorney Clark thanked NYPD Detectives Thomas Slockbower and Shirley PerezRomero of the 43rd Precinct, along with NYPD Detectives Dominic Robinson, Sasha Brugal of the Bronx Homicide Squad and Detective Sean Wolfenhaut of the Regional Fugitive Taskforce.
NYC PUBLIC ADVOCATE'S STATEMENT ON THE MAYOR'S VETO OF HOUSING VOUCHER LEGISLATION
"It’s incomprehensible and indefensible that the mayor is using his veto power to make housing less affordable and accessible to New Yorkers. Eliminating the 90-day rule is crucial, but it is far from the only measure needed to address the housing and homelessness crisis, and the mayor’s previous executive action was not only insufficient, but regressive.
"The administration can either continue to spend money failing to address the housing crisis, or spend it moving people into permanent housing. Passage of the City Council package represented major progress, and the mayor is deliberately moving us backward.
"Half of New York City’s families are unable to afford minimum expenses, the state has failed to provide support, and the administration-appointed Rent Guidelines Board again increased already historically high rents. I urge the City Council to vote to override the mayor’s vetoes, and truly stand with the low and middle-income New Yorkers the mayor claims to support with this action."
MAYOR ADAMS VETOES FOUR CITY COUNCIL BILLS THAT EXCEED COUNCIL’S LEGAL AUTHORITY AND WOULD MAKE IT HARDER FOR NEW YORKERS TO MOVE FROM SHELTER INTO PERMANENT HOUSING
After he issued an emergency rule last week making it easier for New Yorkers experiencing homelessness to move out of the shelter system and into permanent housing, New York City Mayor Eric Adams today vetoed a package of City Council bills that would do the opposite and make it harder for New Yorkers experiencing homelessness to find and afford a permanent place to live – all while costing city tax payers billions of dollars per year. Mayor Adams issued the following statement after vetoing Intro. 229, Intro. 878, Intro. 893, and Intro. 894:
“Last week, our administration made it easier for New Yorkers in shelter to become eligible for CityFHEPS housing vouchers and move into permanent housing by eliminating the 90-day length-of-stay requirement. Today, we helped New Yorkers once again by vetoing a package of bills that would take us backwards, by leading to longer shelter stays for the most vulnerable New Yorkers, while simultaneously creating a structure that could saddle taxpayers with billions of dollars in costs each year. This legislation also clearly exceeds the Council’s legal authority.
“Though the Department of Social Services has steadily increased the total number of CityFHEPS vouchers distributed, the option to provide vouchers to every person who would be eligible under the Council’s bills is far beyond what the city can provide. The bills not only create expectations among vulnerable New Yorkers that cannot be met, they also take aim at the wrong problem.
“Instead of tackling decades of exclusionary zoning policies that have prevented our city from building an adequate housing supply — which has left nearly 20,000 current voucher holders unable to find housing — these bills would remove the city’s ability to target limited resources for those most in need. They would even give some New Yorkers access to a housing voucher just because they received a rent demand letter from their landlord after being a few weeks late on their payment.
“We always seek to work collaboratively with the City Council, and months ago our administration offered to partner with councilmembers to advance the 90-day length of stay policy change, but they rejected that offer and chose to move ahead on their own. What they passed was a package of bills that would make it harder for those experiencing homelessness to find a permanent home.
“Going forward, it is our sincere hope that the City Council will work with us to advance practical and fiscally responsible efforts to support New Yorkers in danger of homelessness, including an aggressive, citywide effort to build more housing in every neighborhood.”