Civil Forfeiture Complaint Filed Against $300 Million Superyacht Amadea Involved In Sanctions Evasion

 

Complaint Seeks Forfeiture of Amadea Superyacht Owned by Sanctioned Russian Oligarch Suleiman Kerimov

Damian Williams, the United States Attorney for the Southern District of New York, and Michael Khoo and David Lim, Co-Directors of Task Force KleptoCapture, announced today the filing of a civil forfeiture complaint against the Motor Yacht Amadea, a 348-foot luxury vessel reportedly worth over $300 million.  The Complaint alleges that the superyacht, which is beneficially owned by Russian oligarch Suleiman Kerimov, was improved and maintained in violation of applicable sanctions against Kerimov and those acting on his behalf.  The Complaint alleges that the Amadea is forfeitable based on violations of U.S. law, including International Emergency Economic Powers Act (“IEEPA”), and money laundering violations.  

U.S. Attorney Damian Williams said: “The filing of this complaint exemplifies that the United States takes sanction evasion seriously and will use all tools at its disposal to ensure that sanctioned individuals are held accountable for their crimes.  I thank our partners with Task Force KleptoCapture as well as the dedicated prosecutors of this office for their important work holding Russian oligarchs responsible and aiding our allies in Ukraine.”

Co-Director of Task Force KleptoCapture Michael Khoo said: “The United States brings this action today after a careful and painstaking effort to develop the necessary evidence showing Suleiman Kerimov’s clear interest in the Amadea and the repeated misuse of the U.S. financial system to support and maintain the yacht for his benefit.  Getting to this point required extensive cooperation across the U.S. government and with foreign partners.  It underscores our resolve to undertake challenging, cross-border investigations and to send a message to Russian oligarchs and their enablers: if you flout the rule of law, you can expect to pay real and meaningful consequences.”

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

On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Kerimov as a Specially Designated National (“SDN”) under IEEPA in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constituted an unusual and extraordinary threat to the national security and foreign policy of the United States.  In imposing sanctions, OFAC determined that Kerimov benefited from the regime of Vladimir Putin, President of the Russian Federation, and played a key role in advancing Russia’s malign activities.  As alleged, Kerimov never sought a license from OFAC authorizing any transactions including any transactions in connection with expenditures related to the yacht.  On or about September 30, 2022, OFAC redesignated Kerimov as an SDN.

In September 2021, following Kerimov’s designation by OFAC, Kerimov arranged to purchase the superyacht Amadea, contracting with the seller to receive use rights to the vessel even before Kerimov had completed payment or obtained title to the vessel.  Kerimov gained beneficial ownership of the vessel in or about September 2021 through a series of transfers between shell companies conducted in a manner designed to conceal his ownership of the yacht.  Between in or about July 2021 and in or about September 2021, beneficial ownership of the Amadea was transferred from the former title holder, Nereo Management Ltd., to Millemarin Investments Ltd., which was incorporated approximately 30 days before the sale.  Ownership of the Amadea was then transferred to Errigal Marine Limited, another newly incorporated company, which was used to obscure Kerimov’s beneficial ownership of the Amadea.  Beginning in October 2021 through the date the yacht was seized by Fijian authorities in April 2022, Kerimov and/or his family members took multiple trips aboard the Amadea, planned extensive renovations to the Amadea, made long-term plans for the Amadea’s travel schedule, and assumed all liability and responsibility for the Amadea’s upkeep and running costs.

During that time period, individuals and/or entities acting on Kerimov’s behalf accrued U.S. dollar-denominated costs necessary for the upkeep of the Amadea and sent or caused to be sent through the U.S. financial systems payments in satisfaction of those expenses, in violation of applicable sanctions.

The Amadea is currently under the control of the U.S. Government in San Diego, California, pursuant to a seizure warrant issued by the U.S. District Court for the District of Columbia, which was enforced by a court order issued by the Republic of Fiji following a request from the United States.  The United States is deeply grateful to the Fijian police and prosecutors whose perseverance and dedication to the rule of law made this action possible. 

Mr. Williams praised the outstanding investigative work of the FBI New York Field Office’s Eurasian Organized Crime Task Force.  Mr. Williams further thanked the Justice Department’s Office of International Affairs, as well as the U.S. Marshals Service, U.S. Embassy Suva, and the Department of State’s Diplomatic Security Service, for their assistance and cooperation in this investigation.

On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.  The Task Force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.

This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit in partnership with the Criminal Division’s Money Laundering and Asset Recovery Section and the National Security Division.  Assistant U.S. Attorney Sarah Mortazavi and Trial Attorneys Joshua L. Sohn and Andrew D. Beaty are handling the investigation.

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime.  These allegations are not proven until a court awards a judgment in favor of the United States.

[1] As the introductory phrase signifies, the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

DEC to Lead Multi-Agency Effort to Investigate Bottle Bill Fraud

 

Examination of Returnable Container Act Fraud Will Help Prevent the Loss of Millions in Revenue and Hold Offenders Accountable

The New York State Department of Environmental Conservation (DEC) today announced a statewide multi-agency effort to help prevent returnable container schemes that defraud the state of millions of dollars each year. This new effort will help uncover practices that prevent bottles and cans without deposits from being redeemed, thus reducing funds that support crucial environmental and other state initiatives.

“New York’s highly successful Bottle Bill is an unfortunate target for unscrupulous criminals looking to make big bucks from the state’s nickels,” DEC Commissioner Basil Seggos said. “This newly launched effort will help foster coordination among state and local partners across the many jurisdictions included in Bottle Bill enforcement to help recoup lost revenue, hold violators accountable, and eliminate the competitive disadvantage experienced by companies that play by the rules.”

This new effort will bring together the expertise of multiple state agencies, including law enforcement and technical expertise from the State Department of Taxation and Finance (DTF), Department of Agriculture and Markets, State Liquor Authority, and others to work collaboratively on collecting and interpreting data, auditing records, inspecting and certifying redemption and counting equipment, investigating complaints, and preventing or prosecuting fraudulent activities.

New York’s Returnable Container Act, known as the Bottle Bill, is one of the State’s most efficient and successful recycling programs. The Bottle Bill improves litter control, provides relief to overburdened municipal recycling systems, and increases beverage container recycling in New York. Recyclables collected through this program are readily returned for manufacturing of containers and other commodities. The law requires a deposit of at least five cents on containers for carbonated soft drinks, beer and other malt beverages, mineral water, soda water, wine products and water that doesn't contain sugar. A deposit is required on glass, metal, and plastic containers that hold less than one gallon or 3.78 liters.

The Bottle Bill captures an average of five billion beverage containers each year with 250,000 tons of plastic, glass, and aluminum recycled. Since the law went into effect, redemption rates averaged 65 percent, well above the recycling rate for most other packaging and products, and beverage container litter was reduced by 70 percent. These beverage containers are no longer littering roads or waterways and get recycled into new packaging and products.

Since the Bottle Bill was amended in 2009, four cents of each unredeemed nickel are remitted DTF, generating approximately $117 million in revenue for New York State in 2022 alone. Most of the funds collected go to the State’s General Fund; of these monies, there is currently $23 million dedicated each year to the State’s Environmental Protection Fund. Bottle Bill sales data is often held confidential, but some estimates of the impact of fraud and underreporting of deposits reach tens or even hundreds of millions of dollars.

DEC and its State and local enforcement partners have successfully prosecuted redemption container fraud cases in the past, including a 2018 DEC and New York State Attorney General investigation of North Bergen Beverage that revealed sales of tens of millions of beverage containers without initiating deposits, depriving the State of an estimated $4 million. Bottle Bill fraud can take many forms, such as transshipping of filled beverage containers from non-deposit states; the fraudulent redemption of empty beverage containers from out-of-state and double-redemption schemes; reverse vending machine tampering; and deposit initiators not registering with DTF and not reporting, or under-reporting sales. It is hoped that as the work evolves, this process will reveal areas where laws, regulations, policies and/or procedure can be modified to strengthen the State’s ability to prevent fraud. 

More about New York’s Bottle Bill can be found on DEC’s website: https://www.dec.ny.gov/chemical/8500.html

NY Post: NY voters oppose Democrat attempts to gerrymander

 

We've been telling you for months: when Democrats can't compete, they cheat.

 

A new poll shows that New Yorkers agree. 72% of New Yorkers reject gerrymandering our Congressional District lines, while 82% consider it cheating. 

New York voters widely oppose any attempts by the Democrat-controlled state government to redraw congressional district lines in order to give their candidates an edge over Republicans in the 2024 elections, according to a new poll obtained by The Post.

 

Gerrymandering was rejected by 72% of likely voters, while 81% of voters viewed the partisan political redistricting as cheating, the survey – conducted by GOP pollster John McLaughlin for the group Stop NY Corruption – found.

 

More than half – 62% – of respondents said they disapprove of current attempts by New York Democrats to throw out the 2022 district lines that were drawn by a neutral, court-appointed special master.

 

When asked, 80% of voters agreed with a clause in the New York State Constitution that states, “districts shall not be drawn to discourage competition or for the purpose of favoring or disfavoring incumbents or other particular candidates or political parties.”

 

And 78% of those polled agreed with the statement, “partisan political gerrymandering leads to more corruption.”

 

Continue reading at NYPost.com

MAYOR ADAMS EXPANDS REMOTE WORK PILOT FOR NEW YORK CITY EMPLOYEES

 

Following Successful Pilot with Unionized Employees, Adams Administration Expanding Benefit to City’s Non-Represented Workforce

 

Remote Work Is Critical Tool for Recruiting and Retaining Top Talent and Providing High-Quality Services for New Yorkers

New York City Mayor Eric Adams today announced a new benefit for thousands of city employees as the administration continues its efforts to support and retain top-level talent providing services to New Yorkers. Following the successful implementation of a remote work pilot with District Council 37 (DC 37), Mayor Adams will now extend the benefit to city workers not represented by unions. “New Yorkers deserve the best services government can offer, and our secret weapon is the most talented, hardest-working workforce in the world,” said Mayor Adams. “Public servants deliver for New Yorkers through the city’s most urgent crises, and now it’s time for us to support them as they have supported us. With the success of our initial remote work pilots for tens of thousands of union-represented employees, we are proud to expand this benefit to the thousands of non-represented public servants who work tirelessly for our city day in and day out.”

 

“Our municipal workforce keeps this city running, working nonstop to serve New Yorkers day in and day out,” said First Deputy Mayor Sheena Wright. “Retaining top talent continues to be a priority for the administration and is foundational to our ability to deliver services. I am proud of our commitment to providing competitive benefits through expanding remote work to even more of our employees.”

 

“We’re proud to bring remote work to the nation’s largest municipal workforce as we adapt to a post-COVID world, and we will continue to innovate so we can attract and retain talented, passionate New Yorkers who want to serve our city,” said Chief of Staff Camille Joseph Varlack. “New York City would be nowhere without the thousands of dedicated public servants who keep this city running, and just like they have our backs every day, we will always have theirs.”

 

“New York City is the most important city in the world; thus, the members of our city’s workforce are the most important municipal employees in the world,” said Chief Advisor Ingrid P. Lewis-Martin. “We’re committed to creating a workplace where our team members will continue to thrive and deliver a quality work product through the use of technology, while allowing them to continue to ‘Get Stuff Done’ for New Yorkers.”

 

“Our city’s workforce is in a season of evolution and revolution, and it is guided by the work we are doing now to position the City of New York as an employer of choice,” said New York City Department of Citywide Administrative Services Commissioner Dawn M. Pinnock. “By expanding telework policies to include non-unionized city employees, we are putting a focus on retention. Since March, we’ve been working tirelessly to increase equity and access to employment for all New Yorkers and adopting a holistic, human approach to city government. Our efforts have yielded a citywide reduction in vacancies and have improved many of the pathways into public service.”

 

The pilot expansion will be offered to approximately 16,500 employees not represented by a union — allowing those eligible to work up to two days a week remotely, depending on their job performance and specific duties. The two-year pilot will adhere to the same terms of the administration’s remote work agreements with various unions as part of recent contract settlements. Determinations on days and eligibility will be made at an agency level and reviewed by the Flexible Work Committee, which includes representatives from city oversight agencies.

 

The Adams administration has made significant progress in reaching contract settlements with its unionized workforce. In less than two years, and less than nine months after its first agreement with DC 37, the Adams administration has successfully negotiated contracts with unions representing approximately 88 percent of the city’s workforce, including DC 37, the Police Benevolent Association, United Federation of Teachers, the Uniformed Officers Coalition, Teamsters Local 237, Communications Workers of America Local 1180, the Marine Engineers’ Beneficial Association, and the Council of School Supervisors and Administrators. The administration is currently in collective bargaining discussions with unions representing the city’s remaining unionized workforce.

 

Health Fair at Bronx House

 

Sunday there was a mammogram Van parked outside Bronx House, and eight tables set up inside with various vendors which included Montefiore Medical Group, Blue Cross, Union Community Health Care, Unlimited Progress with Purpose and Care, Community Board 11, and Councilwoman Marjorie Velazquez who was sponsoring the event. 

In speaking to the vendors, Paul from Unlimited Progress with Purpose and Care said he had no one come in with a wheelchair needing fixing while others being nice, said it was slow. A sign in sheet I saw had less than ten names on it. Seeing Councilwoman Velazquez seated at her table I asked her where she lived since I have seen two different addresses for her, one in Country Club as her primary residence on a mortgage from October 2021, and another from the Board of Elections with her primary residence other than the Country Club address. Councilwoman Velazquez ignored me and after being ignored again after asking a second time I walked away knowing I was not going to get an answer. 

A mammogram van was parked outside Bronx House Sunday.

Inside Bronx House were vendors such as Montefiore Medical Group, Blue Cross, Union Community Health Care, Unlimited Progress with Purpose and Care, Community Board 11, and Councilwoman Marjorie Velazquez. 

Members of Community Board 11 at the CB 11 table.

Councilwoman Marjorie Velazquez is seated at her table next to the Blue Cross table.

DOI INVESTIGATION LEADS TO CHARGES IN $135,000 HOUSING FRAUD SCHEME

 

Jocelyn E. Strauber, Commissioner of the New York City Department of Investigation (“DOI”), announced the arrest of a Staten Island woman charged with stealing more than $135,000 in Section 8 rental subsidies administered by the New York City Housing Authority (“NYCHA”) over an eight-year period. The office of Richmond County District Attorney Michael E. McMahon is prosecuting the case.

MARIE RATTLER, 49, of Staten Island, N.Y., was charged by indictment with Grand Larceny in the Second Degree, a class C felony; Grand Larceny in the Third Degree, a class D felony; five counts of Offering a False Instrument for Filing in the First Degree, all class E felonies; and two counts of Petit Larceny, class A misdemeanors. Upon conviction, a class C felony is punishable by up to 15 years in prison, a class D felony by up to seven years in prison, a class E felony by up to four years in prison, and a class A misdemeanor by up to a year’s incarceration. RATTLER was arraigned in Richmond County Supreme Court and released on her own recognizance. Her next court date is November 16, 2023. 

 DOI Commissioner Jocelyn E. Strauber said, “As charged, this defendant concealed her household income and other information to illegally obtain more than $135,000 in public funds. I thank the Richmond County District Attorney’s Office for their partnership and commitment to protecting these precious public resources from fraud.” 

Richmond County District Attorney Michael E. McMahon said, “Those who use deceit to profit off the backs of taxpaying Staten Islanders by filing false documents and hoarding precious housing resources for themselves and their family members should be ashamed, and my office’s Economic Crimes Bureau, working hand in hand with the NYC Department of Investigation (DOI) and NYCHA, will do all we can to hold these lawbreakers accountable. We are grateful for our continued and successful partnership with DOI and NYCHA, and will diligently do all we can to ensure justice is secured in this case in the days and weeks ahead.”

According to the indictment and statements made in court, between March 2015 and April 2021, RATTLER caused NYCHA to make an overpayment of approximately $86,000 on her behalf by concealing the fact that her husband resided in her Section 8 apartment in Staten Island and failing to report his income. The investigation also found that in May 2021, RATTLER received a transfer to a second Section 8 apartment in Staten Island. Instead of moving into the apartment, RATTLER subleased it to a friend, and failed to report this to NYCHA, causing NYCHA to overpay rental subsidies of approximately $49,560 between May 2021 and May 2023. RATTLER is charged with illegally obtaining a total of approximately $135,560 in Section 8 subsidies between 2015 and 2023.

DOI Commissioner Strauber thanked the Office of Richmond County District Attorney Michael E. McMahon for their partnership on this investigation.

An indictment is an accusation. A defendant is presumed innocent until proven guilty.

Governor Hochul Announces Metro-North Service Restored for Monday Morning Rush Hour Following Significant Mudslides in Westchester County

Crews Worked Around the Clock for 43 Hours to Allow Service to Resume Between Tarrytown and Croton-Harmon

Two of Four Tracks Remain Out of Service; Railroad to Adjust Schedules to Reduce Congestion-Related Delays

Governor Kathy Hochul today announced that MTA Metro-North Railroad will operate on a near-normal weekday schedule on Monday following a mudslide in Scarborough on Saturday morning that prevented trains from operating between Tarrytown and Croton-Harmon. To reduce the potential for congestion-related delays, the railroad is adjusting schedules and canceling four of the 158 trains the railroad operates on the line daily, and during peak hours, trains that operate in the reverse-peak direction will operate express between Tarrytown and Croton-Harmon.

“In the face of dangerous weather and a looming deadline, our MTA team worked around-the-clock to restore the safe, reliable service New Yorkers count on," Governor Hochul said. "Hundreds of thousands of commuters will be able to use Metro-North to commute to work Monday morning because of this extraordinary effort. Before heading out the door, New Yorkers should check the MTA website for up-to-date service information to ensure their commute is as seamless as possible.”

Since the mudslide was reported at 9:45 a.m. on Saturday, crews have worked around the clock to successful clear 350 cubic yards of soil and debris and 250 cubic yards of rock and cement walls from two of the Hudson Line’s four tracks. Crews are breaking apart the rock walls to reincorporate segments to help stabilize the slope where the mudslide occurred, and they are repositioning other segments to the shore side of the Hudson Line, transforming it into “rip-rap” that stabilizes the coastline alongside the rail line.

Work is expected will continue for days to clear the mud and debris from the remaining two tracks. Crews will spend the remaining hours on Sunday night and Monday morning rebuilding 140 feet of third rail that was crushed by the mudslide and ensuring the two operable tracks are safe for train service.

MTA Metro-North Railroad President Catherine Rinaldi said, “I want to applaud the Metro-North workforce for their quick work recovering from this storm and helping to ensure hundreds of customers could continue their travels via a temporary shuttle bus. When duty calls, the Metro-North team springs into action and goes full-bore until the job is finished. I am very pleased they were able to restore near-normal schedules this quickly. A restoration of service this fast also would not have been possible without the support we received from MTA Construction & Development, Westchester County, the Town of Mount Pleasant, regional law enforcement partners including the MTA PD, the Westchester County PD, the Mount Pleasant PD, and also from MTA New York City Transit which didn’t hesitate when we asked for buses to help customers.”

To reduce the potential for congestion-related delays, the railroad is canceling four of the 158 trains that operate daily on the Hudson Line. These four trains will not operate:

• The 6:42 a.m. departure from Poughkeepsie, due into Grand Central at 8:18 a.m. Customers may want to consider the 6:48 a.m. departure, or the 6:25 a.m. departure, as alternatives.
• Customers of the 7:08 a.m. departure from Tarrytown will be accommodated by the 6:45 a.m. train from Croton-Harmon, which will make all stops of both trains.
• The 5:30 p.m. and 6:11 p.m. Poughkeepsie express trains from Grand Central will not operate. Customers may wish to consider using the 5:32 p.m. or 6:15 p.m. trains as alternatives.

To reduce congestion in the area where tracks are limited, reverse-peak trains will bypass Philipse Manor or Scarborough during the morning and evening rush hours. Customers looking to travel north to those stations in the morning will need to ride a northbound train to Ossining or Croton-Harmon to board a southbound train. Customers looking to travel south from those stations in the evening will need to ride a southbound train to Tarrytown to board a northbound train.

 

Bronx River Art Center (BRAC) - Free Painting Workshop This Thursday

 

As part of the 24th Annual Lights on Afterschool, on Thursday, October 26th at 4:30pm, the Bronx River Art Center will be offering a free watercolor painting workshop for school-aged children! Parents and adults are welcome to join as well.

Lights on Afterschool is organized by the Afterschool Alliance to draw attention to the many ways afterschool programs support students by offering them opportunities to learn new things—such as science, community service, robotics, Tae Kwon Do and poetry—and discover new skills. The events send a powerful message that millions more kids need quality afterschool programs.

RSVP on Eventbrite

FRIDAY THREE-HOUR WORKSHOPS

(Full descriptions available at www.bronxriverart.org/education)

This semester, BRAC is also offering three-hour workshops in everything from figure drawing to paper making. Workshops are $12 per session and are open to everyone ages 7 and above; with the exception of the Figure Drawing workshops, which are $20 and for adults only.

Register for Three-Hour Friday Workshops

NOTE: Classes may not run if there are less than eight registered students. If the class is canceled, you will be notified before classes start.

Covid-19 Protocols:

We appreciate your continued vigilance and cooperation.