State Comptroller DiNapoli Looks Back at 2023

I am proud of the work my office has done to safeguard taxpayer dollars and identify ways government can help create a better quality of life for New Yorkers. 2023 presented its share of challenges: an unpredictable economy, the impacts of climate change and major international conflicts.

But we are encouraged by positive developments—including a drop in unemployment and the continuing strength of our State Pension Fund. It is my pleasure to share some of our initiatives and accomplishments through my 2023 Year in Review.

Read the Year in Review

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Former Morley Fire Company Treasurer Ordered to Pay $50,000 for Theft of Public Funds

State Comptroller DiNapoli announced that the former treasurer of the Morley Volunteer Fire Co., Cindi Perkins, was ordered to pay $50,000 in restitution and sentenced to serve five years of probation for stealing from the fire company. Perkins, 58, previously pleaded guilty to grand larceny in the fourth degree in November 2023.

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End of Continuous Medicaid Enrollment Requirement Poses Risks to State Financial Plan

With federal legislation ending continuous Medicaid coverage in March 2023, New York State began the process of redetermining eligibility for every enrolled individual. An analysis by State Comptroller DiNapoli found this “unwinding” may not meet projections in the Division of the Budget’s Mid-Year Update to the Enacted Budget Financial Plan, adding costs to the State budget.

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Former Beekman Tax Collector Sentenced for Theft of Over $86,000

State Comptroller DiNapoli, Dutchess County District Attorney Anthony Parisi and the New York State Police announced that Jennifer Colucci, a former tax collector for the town of Beekman, was sentenced to pay full restitution of $88,821.40, five years’ probation, community service, and time served. Colucci served 209 days in jail, paid restitution in full and completed her community service.

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State Contract and Payment Actions in November

In November, the Office of the State Comptroller approved 2,063 contracts for State agencies and public authorities valued at $32.5 billion and approved nearly 2 million payments worth more than $13.3 billion. The office rejected 189 contracts and related transactions valued at $401 million and nearly 1,100 payments valued at more than $38.6 million, primarily for mistakes, insufficient support for charges, and improper payments. More information on these contracts and payments is available at Open Book New York.

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 ALSO IN THE NEWS THIS WEEK

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• NYS Comptroller Audit Finds OMH Needs to Improve Oversight of Supportive Housing Providers

• Former Beekman tax collector sentenced (VIDEO)
  
  
• North Country fire department treasurer stole money to spend at casinos, pay expenses, officials say
  
  

• New York faces potential $1.5 billion in additional Medicaid costs, per DiNapoli

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Tom DiNapoli @NYSComptroller 

Serial Fraudster Sentenced for Role in Multiple Investment Fraud Schemes

 

A California man previously extradited from Mexico was sentenced yesterday to 4 years in prison for his role in two high-yield investment fraud schemes in which he and his co-conspirators defrauded elderly and other vulnerable victims out of millions of dollars.     

According to court documents, Daniel Thomas Broyles Sr., aka Dan Thomas, 66, of Malibu, participated in a high-yield investment fraud scheme involving a sham company named Niyato Industries Inc. (Niyato). Broyles conspired with Niyato’s CEO, Robert Leslie Stencil, 66, of Charlotte, North Carolina, and others to defraud Niyato investors. Together, Broyles, Stencil, and others falsely portrayed Niyato as a leader in electric vehicle manufacturing and converting vehicles to run on compressed natural gas. In reality, Broyles knew, or intentionally avoided learning, that Niyato was merely a sham company that lacked any operational facilities or proprietary technology and virtually all investor funds were being disbursed among the co-conspirators and not used to promote Niyato’s business. In June 2016, after Broyles learned that federal law enforcement agents were investigating Niyato, he relocated to Mexico. When, in August 2016, he learned that he had been indicted, Broyles moved to a new address in Mexico and began using the alias “Daniel Cruz Torrez” to hide from federal law enforcement agents and obstruct the federal government’s prosecution of him.

Broyles also participated in a second high-yield investment fraud involving EarthWater Limited (EarthWater). Broyles conspired with EarthWater’s CEO, Cengiz Jan Comu, 63, of Dallas, and others to sell EarthWater stock. Broyles and others made numerous false and misleading representations, including that EarthWater used the money raised from victim investors to develop and operate the company’s business. In truth, Broyles, Comu, and their co-conspirators had agreed to use the invested victim funds largely for their personal benefit.

Broyles was extradited from Mexico in March 2022. In June 2022, Broyles pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, and one count of money laundering in connection with the Niyato scam. Broyles also pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud in connection with the EarthWater fraud.

Seven other defendants have previously been convicted in connection with the Niyato scam, including Stencil, who was convicted following a three-week jury trial and sentenced to 12 years and three months in prison. 

Eleven other defendants have pleaded guilty in connection with the EarthWater fraud, including Comu, who was sentenced to 10 years in prison.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Dena J. King for the Western District of North Carolina, U.S. Attorney Leigha Simonton for the Northern District of Texas, Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division, and Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group made the announcement.

Mexican officials provided significant assistance in the extradition of Broyles to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Broyles.

USPIS investigated the case. The U.S. Marshals Service transported Broyles from Mexico to the United States.

Attorney General James Announces Settlement with Former NRA Senior Strategist on Eve of Trial

 

Joshua Powell was One of the Defendants in AG James’ Ongoing Case Against the National Rifle Association

Powell Admitted to AG James Claims of Wrongdoing against NRA and Defendants

New York Attorney General Letitia James announced that Joshua Powell, former National Rifle Association (NRA) Executive Director of Operations and Chief of Staff to recently resigned NRA Executive Vice President Wayne LaPierre, has reached a $100,000 agreement with her office. Powell was one of five defendants in the lawsuit brought by the Office of the Attorney General (OAG) against the NRA and senior management in August 2020. As part of the agreement, Powell has admitted to OAG's claims of wrongdoing in its lawsuit. The trial of the claims against the NRA and the remaining defendants will begin on Monday, January 8. 

“Joshua Powell’s admission of wrongdoing and Wayne LaPierre’s resignation confirm what we have alleged for years: the NRA and its senior leaders are financially corrupt,” said Attorney General James. “More than three years ago, my office sued the NRA and its senior management for financial abuse and mismanagement. These are important victories in our case, and we look forward to ensuring the NRA and the defendants face justice for their actions.”

The lawsuit brought by Attorney General James in August 2020 alleged that NRA senior management misappropriated millions of dollars to fund personal benefits, including private jets, expensive meals, and even family trips to the Bahamas. The NRA, as a New York-registered not-for-profit, charitable corporation, has legal obligations to use its funds for charitable purposes, not to support the lavish lifestyles of senior management and organization insiders. The OAG investigation found that instead of serving NRA members, senior management blatantly disregarded New York state and federal laws, and even internal NRA policies.

With this agreement Powell has admitted to failing in his fiduciary responsibilities and misusing charitable funds, just as Attorney General James alleged in the August 2020 lawsuit.

Since Attorney General James first filed against the NRA and its senior management in August 2020, the organization and senior management have worked to avoid taking responsibility for the serious violations of law. An effort by the NRA to dismiss Attorney General James’ complaint and change the court venue was rejected in January 2021. The NRA even filed for Chapter 11 bankruptcy protection in January 2021 in an attempt to avoid accountability by trying to reorganize the organization in Texas. In May 2021, a federal bankruptcy court in Texas rejected the NRA’s bankruptcy petition, stating, “that the NRA did not file the bankruptcy petition in good faith.”  

In March 2022, a second round of motions brought forward by the NRA, Executive Vice President Wayne LaPierre, and Corporate Secretary and General Counsel John Frazer to try and dismiss the lawsuit was rejected. In June 2022, New York State Supreme Court Judge Joel Cohen held that Attorney General James’ claims against the NRA’s wrongdoing are serious and viable, and are well within her office’s jurisdiction to investigate and prosecute. In September 2022, the Court rejected a third effort by the NRA to challenge the Attorney General’s claims and affirmed that Attorney General James can seek an independent monitor to oversee the NRA’s finances as part of her lawsuit. In January 2024, a final effort to delay the trial was rejected by the New York State Supreme Court, Appellate Division, First Department, and the trial is set to proceed on January 8, 2024, as planned.