Friday, December 8, 2023

Biotech CEO Pleads Guilty to COVID-19 Securities Fraud Scheme

 

A California man pleaded guilty yesterday to securities fraud, wire fraud, and obstruction of an official proceeding in connection with his scheme to defraud investors by making false and misleading statements about the purported development of a new, blood-based COVID-19 test, leading to millions of dollars in investor losses.

According to court documents, Keith Berman, 70, of Westlake Village, was the CEO and sole director of Decision Diagnostics Corp. (DECN), a public medical device company. Berman and DECN were in precarious financial condition in the lead up to the COVID-19 pandemic, and Berman wrote in internal emails that he needed a “new story” to “raise millions.” Additionally, Berman had spent hundreds of thousands of dollars of company money on personal expenditures, despite publicly claiming not to take any compensation. Faced with these financial difficulties, from February through December 2020, Berman engaged in a scheme to defraud investors by falsely claiming that DECN had developed a 15-second test to detect COVID-19 in a finger prick sample of blood.  Despite his claims to the investing public, Berman knew that no such test existed. 

Berman also falsely told investors that the Food and Drug Administration (FDA) was on the verge of approving DECN’s request for emergency use authorization of its purported COVID-19 test. In truth, Berman knew that his company was unwilling and unable to meet the clinical testing required by the FDA but concealed these material facts and misled investors. 

As part of the alleged scheme, Berman used a fake persona to repeat false and misleading statements to investors on internet message boards, and to lull unsuspecting investors into inaction by refuting allegations of fraud and threatening potential whistleblowers with civil or criminal sanctions. Berman also obstructed a U.S. Securities & Exchange Commission (SEC) investigation into his conduct, using another false online identity to surreptitiously direct an investor to write a series of false and threatening letters to the highest levels of SEC management, including the SEC Chairman. 

Berman pleaded guilty to one count each of securities fraud, wire fraud, and obstruction of an official proceeding. He is scheduled to be sentenced on April 12, 2024, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.

USPIS and the FBI investigated the case. 

Trial Attorneys Christopher Fenton, Kate T. McCarthy, and Matthew Reilly of the Criminal Division’s Fraud Section are prosecuting the case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Attorney General James Releases Statement on New York’s Concealed Carry Laws

 

New York Attorney General Letitia James today released the following statement after the United States Court of Appeals for the Second Circuit allowed a majority of the provisions of the Concealed Carry Improvement Act (CCIA) to remain in effect pending the conclusion of lower court proceedings.  

“Today's decision to permit the state to enforce critical provisions of the Concealed Carry Improvement Act as the court process moves forward will help keep New Yorkers safe. This commonsense law was enacted to keep guns out of dangerous hands and away from schools, hospitals, parks, public transportation, and other sensitive locations. My office will continue to defend New York’s gun laws and use every tool to protect New Yorkers from senseless gun violence.”  

Today’s decision allows a majority of New York’s concealed carry requirements to stay in effect pending decisions in the lower courts. The concealed carry permit requirements upheld in today’s decision include the requirement to demonstrate good moral character and to disclose household and family members on a permit application. In addition, the decision upholds the ban on concealed carry in all sensitive places with the exception of places of worship. The decision also allows all private property owners, including owners of places of worship, to prohibit firearms on their property, including through the postage of signs. The requirements for an in-person interview, character references, and 16 hours of training are also still in effect.   

The CCIA took effect in September 2022, following the U.S. Supreme Court’s ruling in New York State Rifle & Pistol Association v. Bruen. The law strengthens requirements for concealed carry permits to keep New Yorkers safe.   


VCJC News & Notes 12/8/23


Van Cortlandt Jewish Center
News and Notes

Here's this week's edition of the VCJC News and Notes email. We hope you enjoy it and find it useful!

Reminders

  1. Shabbos

    Shabbos information is, as always, available on our website, both in the information sidebar and the events calendar.
    Here are the times you need:  
    Shabbos Candles Friday 12/8/23 @ 4:10 pm
    Shabbos morning services at 8:40 am.  Please join the services if you can do so safely. 
    Shabbos Ends Saturday 12/9/23@ 5:13 pm

    Light the second Chanukah candle before the Shabbos candle at 4:10 on 12/8/23 and the third after 5:13 on 12/9/23
     

  2. Chanukah Party, Tuesday 12/12/23
    Night of the Sixth Candle at 7PM
    Entertainment by Chaim Zadok, Latkes and Jelly Doughnuts, Raffle with great prizes.  
    Free Admission

Our mailing address is:

Van Cortlandt Jewish Center
3880 Sedgwick Ave
Bronx, NY 10463

Housing Lottery Launches For 1042 President Street In Crown Heights, Brooklyn


 

The affordable housing lottery has launched for 1042 President Street, an eight-story residential building in Crown Heights, Brooklyn. Designed by S. Wieder Architects and developed by Jacob Fulop, the structure yields 55 residences and 19 parking spaces. Available on NYC Housing Connect are 18 units for residents at 130 percent of the area median income (AMI), ranging in eligible income from $53,726 to $122,000.

1042 President Street in Crown Heights, Brooklyn via NYC Housing Connect

1042 President Street in Crown Heights, Brooklyn via NYC Housing Connect

Amenities include pet-friendly policies, an elevator, gym, shared laundry room, bike storage, Amazon locker, and furnished roof deck with skyline views. Units come with energy-efficient appliances, air conditioning, and patios or balconies. Tenants are responsible for electricity.

At 130 percent of the AMI, there are four studios with a monthly rent of $1,448 for incomes ranging from $53,726 to $90,400; seven one-bedrooms with a monthly rent of $1,511 for incomes ranging from $56,572 to $101,680; and seven two-bedrooms with a monthly rent of $1,748 for incomes ranging from $65,555 to $122,000.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than December 26, 2023.

MAYOR ADAMS APPOINTS LYNELLE MAGINLEY-LIDDIE AS DEPARTMENT OF CORRECTION COMMISSIONER

 

Maginley-Liddie is Second Black Woman to Hold Position

New York City Mayor Eric Adams today announced the appointment of Lynelle Maginley-Liddie as the 38th commissioner of the New York City Department of Correction (DOC). Maginley-Liddie has served at DOC for eight years, most recently as first deputy commissioner and chief diversity officer. With this appointment, she becomes the second Black woman to hold this position in the department’s 128-year history.

 

“Lynelle Maginley-Liddie has spent the better part of a decade at the Department of Correction, and I confident that she is the right person to lead the department going forward,” said Mayor Adams. “​​Lynelle has played a significant role in the progress we have made over the last 23 months at DOC, supporting this administration’s efforts to reverse decades of mismanagement and neglect on Rikers Island, and she is prepared to take the reins of this department at such a pivotal moment. Public safety and justice are the prerequisites to prosperity, and under the leadership of Commissioner Maginley-Liddie, our administration will continue to ensure dignity, safety, and care for the hard-working staff in our correction facilities and all detainees in our care. She is a steady hand, who will continue the good work of now-Assistant Deputy Mayor for Public Safety Louis Molina. I thank Lou for everything he did at the Department of Correction and look forward to working with him in this new role.”

 

“Lynelle Maginley-Liddie is more than ready and capable of leading the agency as the second Black woman to hold the position as commissioner,” said First Deputy Mayor Sheena Wright. “I am confident that under Lynelle’s leadership, the Department of Correction will continue to move in the right direction — prioritizing safety, protecting the humanity of all those in the city’s care, and holding the agency to the highest standards.”

 

“Lynelle Maginley-Liddie will continue to drive this administration’s important efforts to reverse decades of regress on Rikers Island, and her work as the first deputy commissioner has helped move our corrections system in the right direction,” said Chief of Staff Camille Joseph Varlack. “There’s more work to do, and with Commissioner Maginley-Liddie’s leadership, we will build on the initial progress we’ve made over the course of this administration. The people working and living in our facilities will be safer — and better — as a result.”

 

“First, I thank Commissioner Louis Molina for the great work that he has done as our Correction commissioner. Under his tenure, our administration and the Department of Correction have made incredible progress reversing dangerous trends and putting our jail system on the right path,” said Chief Advisor Ingrid P. Lewis-Martin. “I am confident that Commissioner Maginley-Liddie will bolster that progress — driving violence further down and ensuring safety for everyone living and working in our system.”

 

“The Adams administration has made tremendous progress at the Department of Correction, reducing violence, improving safety, and having the lowest rate of death in custody in the nation. These are just some of the tremendous gains made under our administration, and Lynelle Maginley-Liddie has been key to those successes,” said Deputy Mayor for Public Safety Philip Banks III. “I am confident that she will continue to expand on that progress, and I can think of no one better to build off of Louis Molina’s success at DOC than Lynelle. I also want to commend Louis for his stellar work at the Department of Correction, and I look forward to working with him in his new role.”

 

“Thank you, Mayor Adams, for the honor and opportunity to lead and serve this department and the people of this great city,” said DOC Commissioner Maginley-Liddie. “As commissioner, I will work tirelessly to support our staff and create safe and humane conditions for those entrusted in our care. I further pledge to follow and set standards for correctional best practices; the people working and living in our jails deserve nothing less.”

 

About Lynelle Maginley-Liddie

 

Lynelle Maginley-Liddie has served as DOC first deputy commissioner and chief diversity officer since March 2021, supporting the department’s mission of maintaining a safe and humane environment for correction officers and those in the city’s care. She has provided counsel on matters related to departmental operations, policy improvements, and key initiatives in the agency’s turnaround. She has also helped develop the policy and implementation strategy for the agency’s minority- and women-owned business enterprise programs.

 

Maginley-Liddie joined DOC in 2015 as an agency attorney and was promoted to deputy general counsel in 2018. During her eight years at the agency, she has led the department’s General Litigation Unit, provided strategic guidance on complex agency matters, and spearheaded the department’s efforts to provide staff with convenient, on-site access to COVID-19 vaccinations.

 

Before joining DOC, she was an attorney at Leader Berkon Colao & Silverstein LLP.

 

Maginley-Liddie received her J.D. from Fordham University School of Law and her B.A. from John Jay College of Criminal Justice.

 

Maginley-Liddie will report to Deputy Mayor for Public Safety Banks.

 

“Lynelle Maginley-Liddie is a devoted public servant and proven leader within the New York City Department of Correction,” said New York City Police Department Commissioner Edward A. Caban. “Her extensive experience will ensure continuity at the top of a vital partner agency within city government, and I look forward to working with her on behalf of all New Yorkers.”

 

“Lynelle Maginley-Liddie is a dedicated public servant who is committed to building upon the work the administration has done to effectuate the changes needed at Rikers,” said New York City Corporation Counsel Sylvia O. Hinds-Radix. “Through her various roles at the Department of Correction — including as counsel since the inception of Nunez — she is familiar with every aspect of DOC’s operations and superbly qualified to help the city ensure compliance with the consent decree. The Law Department looks forward to working with Commissioner Maginley-Liddie in her new role.”

 

Governor Hochul Updates New Yorkers on Incident at Albany Synagogue

Governor Hochul Speaks at Temple Israel in Albany

Governor Hochul: “The bottom line is this: the safety of Jewish New Yorkers is nonnegotiable. Every act, whether it's verbal or physical, any act of antisemitism is unacceptable and undermining the public safety at our synagogue on the first night of Hanukkah is even more deplorable. The prospect of violence in a place of worship is not just an attack on the building. It's an attack on the very fabric of our society, our freedom to express our faith, our collective shared sense of safety.”

Hochul: “We will stand together against violence, bigotry and hatred, reaffirming our commitment to unity and understanding and protection. So, here's my commitment to Jewish New Yorkers: we will not be intimidated into silence, we will not be threatened into submission, and we will celebrate every aspect of the great Jewish traditions, starting here with Hanukkah because these must be kept alive as they have been through centuries of persecution before.”

At approximately 2:27 p.m. today, there was an incident at the Temple Israel in Albany, within the city of Albany's confines. Shots were fired outside the temple in the parking area. There were no injuries or fatalities.

The suspect is a 28-year-old local resident who was walking around outside the synagogue acting very suspicious, according to witnesses. He fired off a round from a shotgun while making threatening statements. After the shots were fired, the police were called, and on the premises was an early childhood center with at least two dozen children, preschoolers, who were on the premises. The parents were contacted, the facility went immediately into lockdown, and as of this time, the parents have been able to retrieve their children, and the lockdown has been lifted. All the children have been released safely.

Federal law enforcement is currently leading the investigation, with the support of New York State Police, who were on site at the time, immediately following the incident, as well as the Albany Police. The New York State Hate Crimes [Task Force] is involved.

I immediately called the Rabbi, I knew this Rabbi because literally on October 7th, after the horrific attack on Israel, I went to the synagogue, and I spoke. So, I spoke with Dr. Rabbi Anderson tonight and assured her that the State of New York will do everything possible to restore the sense of security that her congregation needs at this time.

I will also be planning to attend at this time, Shabbat Services at this temple Friday evening. As we've talked about before, after the October 7th attacks, I've directed our State Police, as well as the National Guard, to be on high alert. They have been conducting surveillance and created a presence at synagogues, yeshivas, museums, cultural centers, all vulnerable targets throughout the State of New York ever since October 7th. And especially during the holiday season. As we begin Hanukkah tonight, I directed earlier this week that they continue to actually increase their presence at all these locations.

This builds on the significant efforts that we’ve already undertaken, making sure that we've mobilized State Police, invested tens of millions of dollars in additional security devices and measures, developed online strategies to help suppress hate at the source. Also, $50 million to help local law enforcement so they can do their job to protect our communities who are under siege at this time. We also made sure that the threat assessment teams are activated at every college and creating 36 county-based teams operating across New York.

In addition, I had previously asked former Chief Judge of the Court of Appeals, Jonathan Lippman, to begin an investigation into antisemitism and hate crimes across SUNY and CUNY campuses.

The bottom line is this: the safety of Jewish New Yorkers is nonnegotiable. Every act, whether it's verbal or physical, any act of antisemitism is unacceptable and undermining the public safety at our synagogue on the first night of Hanukkah is even more deplorable.

The prospect of violence in a place of worship is not just an attack on the building. It's an attack on the very fabric of our society, our freedom to express our faith, our collective shared sense of safety. And I remind everyone, as New Yorkers, this is not who we are. This must stop. We reject hate, antisemitism, Islamophobia. All hate crimes must stop and all violence in every form must cease.

We have no tolerance for these acts of evil that have now permeated our society. And the rise in antisemitism that started centuries ago is dramatically on the rise in our own state since October 7th. It has increased and fueled the anxiety of Jewish New Yorkers throughout every corner of the state.

Thankfully, at this time, no one was injured in this incident. But the fear that it has wreaked, and the fear and the anxiety that it has caused, I know a lot of people are feeling really shaken right now. This wasn't the first incident at Temple Israel. In September, it was one of multiple synagogues targeted with bomb threats.

And now to know there's an individual who literally brought a gun – a loaded weapon – to their premises, shakes people to their core. They shouldn't have to be so frightened. At a time, with this beautiful holiday about to commence, people should be relishing in the light of the world. That's what the tradition is all about, the lighting of the candles.

This state must not descend into darkness. We need this light to shine bright. And if all New Yorkers stand up for each other, to defend each other's dignity, respect each other's differences – because that is what New York is to its very core and always will be. But we must protect it.

We will stand together against violence, bigotry and hatred, reaffirming our commitment to unity and understanding and protection. So, here's my commitment to Jewish New Yorkers: we will not be intimidated into silence, we will not be threatened into submission, and we will celebrate every aspect of the great Jewish traditions, starting here with Hanukkah because these must be kept alive as they have been through centuries of persecution before.

We will tolerate no hate in the State of New York, and I will use every single resource as Governor of the State of New York at my disposal to make sure that everyone in the State of New York is safe. At this point, I'm going to ask Eva Wyner, the Deputy Director of Jewish Affairs, to join me in lighting the menorah for this first night of Hanukkah.

Eva traveled with me to Israel in the aftermath of October 7th. I want to thank her for her courage and for her willingness to stand up as a proud Jewish woman here in the State of New York. Thank you for your service to millions of New Yorkers, Eva, and I'll let you have the honors.

 

Thursday, December 7, 2023

City Parks Foundation - Urgent Action Needed: NO MORE CUTS TO PARKS

 

Dear Friends and Advocates, 

The below email has a corrected link to send a letter to the mayor.   

Our parks system is in crisis. Mayor Adams has already cut the NYC Parks budget by 5%, resulting in a hiring freeze, the loss of staff, and the delay of critical parks programsOn top of this, Parks has lost an additional 1,450 workers who were employed through the Human Resources Administration. These workers represented 47% of the cleaning workforce responsible for maintaining our city’s nearly 2,000 parks. The situation for New Yorkers is dire. Parks which were once cleaned five times a week will now be cleaned once a week. 17,000 trash cans will be overflowing with garbage. Bathrooms, if open, will be virtually unusable. On top of this, the mayor has proposed an additional 5-10% cut in January, while many other agencies are exempt. The plan for these cuts is being drawn up as we speak, necessitating urgent actionHere's what you can do: 

  1. Send a letter to the mayor saying No More Cuts to Parks. 

  2. Submit written testimony and share with your City Council Member

  3. Post on social media to spread the word.
     

We urge you to tap your networks, friends and community to help save NYC parks. 

We know that these cuts will include drastic reductions to seasonal staffing, making it impossible for the agency to ensure that our parks are safe and clean for New Yorkers. This combined loss of staffing and resources will devastate an agency which has historically received more than its fair share of budget cuts.

These reductions will dismantle the already burdened workforce responsible for maintaining these vital spaces. Additional cuts will delay activation of water and cooling features across 5,000 parks and playgrounds, including 3,400 drinking fountains and 850 sprinklers, critical for residents in the city heat.  The agency will be unable to deliver essential services: unable to pick up trash, care for the hundreds of ball fields, maintain and operate the city’s beaches and pools, or safely discard the tens of thousands of hypodermic needles it collects annually. This is not the parks system New Yorkers deserve.

Once again we ask you to take action and share with your friends and neighbors.

In solidarity with all,

City Parks Foundation

Two Russian Nationals Working with Russia’s Federal Security Service Charged with Global Computer Intrusion Campaign

 

Indictment Alleges the So-Called “Callisto Group” Hacked Computers in the United States and Allied Countries, and Stole Information Used in Foreign Malign Influence Operations Designed to Influence the U.K.’s 2019 Elections

A federal grand jury in San Francisco returned an indictment charging two individuals with a campaign to hack into computer networks in the United States, the United Kingdom, other North Atlantic Treaty Organization member countries and Ukraine, all on behalf of the Russian government. 

According to court documents, Ruslan Aleksandrovich Peretyatko (Перетятько Руслан Александрович), an officer in Russia’s Federal Security Service (FSB) Center 18, Andrey Stanislavovich Korinets (Коринец Андрей Станиславович) and other unindicted conspirators employed a sophisticated spear phishing campaign to gain unauthorized, persistent access (i.e., “hack”) into victims’ computers and email accounts.

“The Russian government continues to target the critical networks of the United States and our partners, as highlighted by the indictment unsealed today,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Through this malign influence activity directed at the democratic processes of the United Kingdom, Russia again demonstrates its commitment to using weaponized campaigns of cyber espionage against such networks in unacceptable ways. The Department of Justice will respond to such behavior with an even more determined commitment to disrupt those activities and to hold accountable the individuals responsible.”

“Today’s indictment is part of a coordinated international response to send a message to the conspirators that the whole of the United States government stands together and with our partners internationally to identify and disrupt cyber espionage actors, particularly those seeking to obtain government information and attempting to create chaos in democratic processes,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “We are grateful to all of our partners for their assistance in addressing these threats posed by the FSB’s action in the Northern District of California, across the United States and around the world.”   

“The FBI will not stand idly by as Russia continues to perpetuate this type of targeted malicious activity,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “Russian interference through malign foreign influence campaigns is deplorable, and we will not tolerate it in the United States or directed against our foreign partners. The FBI is dedicated to combating this pervasive threat and will tirelessly seek to prevent and disrupt these criminal acts carried out by Russia.”

The indictment, which was unsealed today, alleges the conspiracy targeted current and former employees of the U.S. Intelligence Community, Department of Defense, Department of State, defense contractors, and Department of Energy facilities between at least October 2016 and October 2022. In addition, the indictment alleges the conspirators – known publicly by the name “Callisto Group” – targeted military and government officials, think tank researchers and staff, and journalists in the United Kingdom and elsewhere, and that information from certain of these targeted accounts was leaked to the press in Russia and the United Kingdom in advance of U.K. elections in 2019. 

As a common example, the conspirators used “spoofed” email accounts designed to look like personal and work-related email accounts of the group’s targets. The conspirators allegedly also sent sophisticated looking emails that appeared to be from email providers suggesting users had violated terms of service. These messages were designed to trick victims into providing their email account credentials to false login prompts. Once the conspirators fraudulently obtained the victim’s credentials, they were able to use those credentials to access the victims’ email accounts at will.

In addition to the indictment, the Department of the Treasury’s Office of Foreign Assets Control (OFAC)  announced that it has sanctioned both Peretyatko and Korinets for their roles in malicious cyber-enabled activity. Moreover, the United Kingdom has issued sanction of its own, and the U.S. Department of State announced rewards of up to $10 million for information leading to the identification or location of Peretyatko  and Korinet, as well as their conspirators. 

In addition to the name “Callisto Group,” FSB Center 18 is known by cybersecurity investigators as “Dancing Salome” by Kaspersky Labs, “STAR BLIZZARD” by Microsoft Threat Intelligence Center and “COLDRIVER” by Google’s Threat Analysis Group.

The defendants are each charged with one count of conspiracy to commit an offense against the United States, namely, computer fraud, which carries a maximum sentence of five years in prison for PERETYATKO, and up to 10 years for KORINETS. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.

The investigation was conducted jointly by the U.S. Attorney’s Office for the Northern District of California, the National Security Cyber Section of the Justice Department’s National Security Division and the FBI San Francisco Field Office. The FBI’s Cyber Division, Cyber Assistant Legal Attachés, and Legal Attachés in countries around the world provided essential support. Numerous victims cooperated and provided valuable assistance in the investigation.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.