Drug Dealer Sentenced to Nine Years in Prison for Opioid Pill Mill Scheme That Illegally Distributed More Than 1.2 Million Oxycodone Pills

 

Defendant Conspired to Divert Oxycodone Worth Millions of Dollars and Laundered the Funds Through a Company Called “Michael’s Cleaning Service”

At the federal courthouse in Brooklyn, Michael Kent was sentenced by United States District Judge Ann M. Donnelly to nine years in prison for his role in recruiting sham patients, paying off complicit pharmacists and illegally distributing oxycodone in a Brooklyn-based narcotics conspiracy.  Kent pleaded guilty to conspiring to distribute and to possess with intent to distribute oxycodone in September 2023. Kent also paid $635,875 in forfeiture in advance of his sentencing.

Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent in Charge, U.S. Drug Enforcement Administration, New York Division (DEA), Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and Thomas M. Fattorusso, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the sentence. 

“The opioid epidemic has destroyed countless families and communities in our district, New York City and across the country,” stated United States Attorney Peace.  “The proliferation of pill mill clinics, like the medical office involved in this case, significantly contributes to the opioid crisis. Today’s sentencing holds the defendant accountable for his role in callously diverting highly potent and addictive drugs from medical offices to the streets of New York.”

Mr. Peace also thanked the New York City Department of Investigation, the New York City Police Department and the New York State Department of Health, Bureau of Narcotic Enforcement, for their assistance on the case.

“Michael Kent knew the harmful effects of his pill mill scheme, and knowingly jeopardize the health and safety of those individuals he profited from, all while exacerbating the opioid crisis.  This sentencing sends a clear message to those individuals putting profits over human lives and looking to capitalize from the illegal sale of addictive opioids” stated DEA Special Agent in Charge Tarentino.  “The DEA remains committed to fighting this opioid crisis head on and those who exploit it.”     

“The defendant in this case was involved in a scheme to steer controlled substances to the street, which is especially egregious given the ongoing opioid epidemic,” stated HHS-OIG Special Agent in Charge Gruchacz.  “HHS-OIG will continue to work with our law enforcement partners to ensure individuals involved in fraud schemes that exploit federal health care programs and threaten patient safety are held accountable.”

“Kent created an extravagant, multi-layered scheme in order to earn a simple title—drug dealer.  He had no regard for the welfare of those buying the oxy as long as he lined his pockets, which were fat enough to buy three buildings in New York City.  Unlucky for him, this elaborate scam was not too tricky for law enforcement to figure out, and he is now sentenced to time behind bars,” stated IRS-CI Special Agent in Charge Fattorusso.

As set forth in the indictment and publicly filed documents, between December 2018 and October 2022, Kent and his co-defendants operated a drug distribution ring out of a medical practice on Linden Boulevard in East New York, Brooklyn.  Together, they unlawfully distributed more than 11,000 prescriptions for oxycodone, amounting to more than 1.2 million oxycodone pills, which carry a street value of at least $24 million.  They made millions of dollars from the scheme.  Nine defendants have been charged in this matter, including one doctor and four Brooklyn-based pharmacists.  In addition to Kent, five co-defendants have pleaded guilty.  Three co-defendants are scheduled for trial in January 2025.

As part of his role in the scheme, Kent recruited approximately 45 sham patients who were prescribed more than six kilograms of medically unnecessary oxycodone over a four-year period.  Kent paid these individuals for the use of their names, picked up the oxycodone from pharmacists, whom he paid off, and sold the oxycodone to dealers for distribution on the street.  Kent then laundered the drug proceeds through a shell company he created called “Michael’s Cleaning Service,” using the money to buy three buildings in New York City.  When he was arrested in October 2022, law enforcement officers recovered two loaded firearms from his home and seized thousands of dollars in cash.

Oxycodone is a highly addictive opioid used to treat severe and chronic pain conditions.  Every year, millions of Americans abuse oxycodone, and the misuse of prescription painkillers like oxycodone leads to hundreds of thousands of annual emergency room visits.  More than 14,000 Americans died from prescription opioid overdoses in 2022, according to the Centers for Disease Control and Prevention (CDC).  Oxycodone prescriptions have enormous cash value to drug dealers.  For example, one oxycodone 30 mg tablet, which was the dosage prescribed in this case, can be sold by dealers on the street for between $20 and $30 in New York City.                       

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

NYC Board of Elections Four day totals for Early Voting by Borough

 

Early Voting Check-Ins

General Election 2024

 

October 26, 2024 - Day 1

 

• Manhattan - 38,237
• Bronx - 16,462
• Brooklyn - 40,289
• Queens - 31,671
• Staten Island - 13,486

 

*Unofficial as of Close of Polls 140,145

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October 27, 2024 - Day 2

 

• Manhattan - 71,321
• Bronx - 27,581
• Brooklyn - 77,033
• Queens - 58,078
• Staten Island - 23,847

 

*As of Close of Polls – Unofficial and Cumulative 257,860

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October 28, 2024 - Day 3

 

• Manhattan - 106,870
• Bronx - 40,217
• Brooklyn - 115,286
• Queens - 87,174
• Staten Island - 35,718

 

*As of Close of Polls – Unofficial and Cumulative 385,265

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October 29, 2024 - Day 4

 

• Manhattan - 136,206
• Bronx - 50,830
• Brooklyn - 150,805
• Queens - 112,350
• Staten Island - 45,287

 

*As of Close of Polls – Unofficial and Cumulative 495,478

Statement Of U.S. Attorney Damian Williams On The Guilty Plea Of Fourth Defendant In Connection With Poisoning Of Four Children At A Bronx Daycare

“Grei Mendez has just admitted she conspired to maintain and distribute large quantities of dangerously toxic fentanyl in a Bronx Daycare center, a place where parents expected their children would be protected and safe.  Mendez’s reprehensible conduct resulted in the needless and tragic death of a child, and the poisoning of three others.  From the beginning, this case has shown the senseless collateral damage caused by the fentanyl epidemic and should remind us of all that the demand for illegal narcotics so often puts innocent bystanders at risk while drug traffickers ruthlessly pursue profits.  This Office will continue to protect New Yorkers from the grave threat fentanyl presents.”   

Attorney General James Leads Multistate Coalition Backing National Ban on Price Gouging

 

New York Attorney General Letitia James today led a coalition of 15 attorneys general urging Congressional leaders to support a ban on price gouging at the national level. While over 40 states ban price gouging, there is no federal law preventing businesses from raising prices to increase their profits on essential goods during an emergency. In a letter to Congressional leaders, Attorney General James and the coalition argued that a national ban on price gouging would give the federal government the power to crack down on price gouging that cannot be stopped by a single state, and allow states and the federal government to work together to stop illegal price gouging in national supply chains. 

“Businesses should never be able to hike prices during an emergency just to increase their profits,” said Attorney General James. “When companies take advantage of major disruptions and raise prices of food and supplies that New Yorkers rely on, my office holds them accountable, getting people their money back and protecting their wallets. Our federal government should have the same power to protect Americans when disaster strikes and stop price gouging at the national level that threatens both hardworking families and small businesses.” 

Bans on price gouging let businesses raise prices to cover costs but prevent them from raising prices further solely to increase their profits during an emergency. Attorney General James and the coalition argue in their letter that prohibiting price gouging benefits both consumers and businesses. First, it encourages much-needed production at critical times by only allowing businesses to make more money by selling more products, instead of by raising prices. Second, it prevents businesses from risking long-term harm and reputational damage by overreacting in an emergency and setting prices too high. Third, it discourages hoarding in an emergency, since rising prices can prompt customers to over-buy. Fourth, price gouging bans protect consumers from monopolists who can raise prices without worrying about consumers’ reactions or being undercut by a competitor. 

The COVID-19 pandemic and the onset of war in Ukraine disrupted supply chains at the national level, creating opportunities for price gouging that were sometimes out of reach from individual states. Attorney General James and the coalition argue in their letter that a federal ban would complement states’ anti-price gouging measures to help stop price gouging at the national level. 

As Attorney General James and the coalition note, attorneys general have successfully stopped price gouging at the state level, demonstrating a clear need for national enforcement to complement these efforts. In New York, Attorney General James has secured decisive settlements with companies for illegally raising prices during emergencies, including the COVID-19 pandemic. In March and April 2024, Attorney General James distributed over 9,500 cans of baby formula in Buffalo and New York City as part of a settlement with Walgreens for illegally raising prices of baby formula during the 2022 shortage. In May 2023, Attorney General James recovered $100,000 from Quality King for price gouging Lysol products at the beginning of the COVID-19 pandemic. In April 2021, Attorney General James secured 1.2 million eggs for New Yorkers from Hillandale Farms Corporation as part of a settlement resolving a lawsuit brought by the Office of the Attorney General (OAG) in August 2020 for illegally gouging egg prices in the early months of the pandemic. 

In March 2023, Attorney General James proposed new rules to protect consumers and small businesses by making it easier for OAG to investigate and combat price gouging. Throughout the pandemic, during major disruptions, and ahead of recent declared disasters, Attorney General James has issued consumer warnings against price gouging on essential supplies.

Joining Attorney General James in sending the letter to Congress are the attorneys general of California, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, New Jersey, New Mexico, Oregon, Pennsylvania, Vermont, and the District of Columbia.

NYC Comptroller Lander Rolls Out Strategic Plan for Street Safety in the Era of Micromobility

 

The increase of micromobility devices – e-bikes, mopeds, and e-scooters – demands action to improve safety and quality of life on New York City streets

At a defining moment for New York City’s streetscape, New York City Comptroller Brad Lander published Street Safety in the Era of Micromobility, a new report that outlines a strategic regulatory and infrastructure framework for e-bikes, mopeds, and e-scooters, all of which have grown in popularity in recent years and pose new safety and quality of life concerns for New Yorkers.

With the legalization of micromobility vehicles in New York State in 2020, the rapid rise of app-based food delivery companies, and the proliferation of low-cost vehicles and batteries, tens of thousands of New Yorkers have embraced micromobility options as an affordable and low-carbon way to get around. However, New York City’s regulatory regime, enforcement efforts, and infrastructure have failed to keep pace with the influx of these vehicles.

The Comptroller’s report lays out a comprehensive and strategic approach to create more predictability on city streets and ensure fast-moving two-wheeled vehicles operate safely and legally. The plan calls for cutting off the supply of unsafe and illegal vehicles, establishing a City-administered licensing program for app-delivery companies, and enhancing accountability for riders who violate traffic laws through more predictable, consistent enforcement. People with disabilities, seniors, safe streets advocates, and delivery workers—the kind of broad coalition necessary to bring about a shift in rules, culture, and behavior—hailed the Comptroller’s plan.

“Every day I hear a common concern from New Yorkers across communities: the proliferation of mopeds and e-bikes has fueled a sense of disorder and lawlessness in our city and heightened anxiety about street safety,” said Comptroller Brad Lander. “Pedestrians shouldn’t feel on edge every time they step outside their apartment. At the same time, we can’t put the genie back in the bottle; many New Yorkers have come to rely on these affordable and environmentally sustainable modes of transportation. By cutting-off illegal vehicle supply at point-of-sale, holding app-delivery companies accountable, and making enforcement more consistent and strategic, we can make sure all New Yorkers feel safe and comfortable on our streets, whatever modes of transportation they use.”

Micromobility Management Challenges: The sharp rise in popularity of micromobility—combined with a void in proactive management—contributes to a sense of chaos, disorder, and lawlessness on city streets. Existing strategies to enforce traffic laws are not effectively deterring dangerous or illegal behavior among riders; enforcement and oversight responsibilities are dispersed across multiple levels of government and agencies; and infrastructure and street design have not kept pace with the growing number of e-bikes, mopeds, and e-scooters.

The rise of the mobile app-based food delivery industry has fueled reliance on e-bikes and mopeds among a large population of low-wage, precarious workers, with no accountability for the app companies profiting from those trips.

Low-cost, unsafe products have flooded the e-bike and battery market in recent years due to low standards for imported goods and the high cost of legal, safe alternatives. Despite improvements in regulatory efforts to address the safety of e-bike batteries, battery fires in residential buildings persist, killing four people and injuring 88 others in the first ten months of 2024.

Street Safety: The Comptroller’s report found that, compared to four-wheeled vehicles, micromobility vehicles account for a very small share of pedestrian deaths and injuries: 1.8% of all pedestrian fatalities between 2020 to 2023, or eight out of 449; and roughly 4.5% of all pedestrian injuries, or 1,276 out of 28,450. Moreover, the safety risks of e-bikes, e-scooters, and mopeds are most acute for the riders of these vehicles versus pedestrians or other road users. Nonetheless, pedestrian injuries attributable to micromobility vehicles have seen a significant uptick from virtually none in 2020, when New York State legalized e-bikes.

Recommendations: The challenges associated with the influx of micromobility vehicles on New York City streets touch upon numerous supply-side, traffic enforcement, labor exploitation, and infrastructure issues and cannot be solved with a single solution. Managing these issues is a complex task that requires coordination between different government agencies, all three levels of government, and the private sector. The Comptroller’s report makes the following recommendations to improve safety and quality of life in a strategic and just manner:

1. Cut off the supply of unsafe, illegal vehicles in New York City and beyond through strategic supply-side enforcement actions by the City, State, and Federal governments.

2. Create a City-administered licensing program that regulates app-based delivery companies featuring safe operation accountability protocols, a sizable disposal fee/penalty for illegal mopeds seized while operating on a trip for the app, and stronger worker protections.

3. Require restaurants to certify that the delivery workers they directly employ are using safe, street-legal equipment, and hold those restaurants accountable if workers are using illegal equipment.

4. Curb reckless driving and enhance accountability for moped riders who violate traffic laws through more predictable, consistent, and strategic enforcement. Enforcement should target the most high-risk behaviors (e.g. driving on sidewalks and in bike lanes, forging licenses, obscuring license plates, and operating illegal vehicles).

5. Invest in high-quality infrastructure, street design, and curb management solutions to support the safe integration of micromobility into New York City streets, including wider protected bike lanes, traffic calming, e-bike parking, and neighborhood loading zones.

6. Ensure and expand the use of safe, affordable e-bikes and batteries by increasing funding for a battery swap program established in Fall 2023 by Local Law 131 and passing state legislation to establish a ride clean rebate program for e-bikes and e-scooters.

7. Expand safe, convenient e-bike charging facilities to support widespread adoption of UL-certified equipment by investing in additional safe charging sites via expansion of the City’s E-Bike Battery Charging Pilot, as well as prioritizing the installation of on-street e-bike charging stations in the outer boroughs, where many delivery workers reside.

8. Create a program to provide guidance on the process of obtaining a driver’s license and registering mopeds, directed at delivery workers and low-income New Yorkers.

9. Collect and publicly report accurate, detailed data about crashes, injuries, fatalities, violations, and illegal vehicle seizures involving e-bikes, stand-up scooters, mopeds, and other vehicles.

Read the report, Street Safety in the Era of Micromobility, here.

Governor Hochul Announces $12 Million State Grant to Replace Lead Water Pipes and Protect Drinking Water in Poughkeepsie

Poughkeepsie is Eligible for an Additional $3.2 Million Grant from the Federal Bipartisan Infrastructure Law to Replace Lead Water Pipes

Part of $340 Million in State and Federal Investments to Help “Get the Lead Out”

Continues the Governor’s Nation-Leading Commitment to Improving and Strengthening Water Infrastructure Across New York State

Governor Kathy Hochul today announced a $12 million state grant to help the City of Poughkeepsie identify and replace lead service lines, improving drinking water safety, protecting public health, and enhancing residents’ quality of life. This funding is part of a $340 million statewide initiative, combining state resources with federal support through the Bipartisan Infrastructure Law, to remove lead pipes from water systems across New York. Poughkeepsie is eligible for an extra $3.2 million federal grant to further ensure clean, safe drinking water for its residents.

“When it comes to New York’s water infrastructure, we’re getting the lead out,” Governor Hochul said. “We’re continuing to give municipalities the resources and support they need to replace lead water pipes and protect public drinking water.”

Today’s announcement builds upon the Governor’s greater investment now totaling $100 million in state grants for lead service line inventory and replacement projects. Poughkeepsie is one of 12 municipalities to receive the state grant as well as federal Bipartisan Infrastructure Law (BIL) grants and interest-free financing for lead service line replacement. The state grant will reimburse costs that were not fully covered by BIL grants, so the communities won’t have to pay back the financing for the associated projects.

To date, New York State has received $240 million for lead service line replacement through the BIL. Additional funding is expected over the next two years. Coupling state grants with federal funding takes the fiscal pressure off communities, allowing them to replace more lead service lines without incurring additional costs. The State’s comprehensive approach continues to provide communities with the resources they need to improve their water infrastructure without overburdening local ratepayers.

Including Poughkeepsie and previously announced awards, the full list of communities receiving nearly $100 million in state grants are:

• New York City (Bronx, Brooklyn and Queens): $28,000,000
• City of Rochester: $28,000,000
• City of Syracuse: $12,756,047
• City of Poughkeepsie: $11,869,472
• Village of Herkimer: $3,962,616
• City of Albany: $3,859,328
• City of Troy: $3,846,900
• Gloversville Water Works: $2,310,445
• Village of Ilion: $1,221,477
• Village of Ogdensburg: $688,300
• Village of Bath: $468,300
• Village of Catskill: $106,545

This funding is specifically targeted for historically disadvantaged communities. The awards prioritize communities that meet one or more of the following criteria:

• The community’s median household income is less than 80 percent of the regionally adjusted statewide median household income.
• The community’s local poverty rate is higher than the statewide poverty rate.
• At least 50 percent of the community’s lead service line project serves an environmental justice community.

Lead is harmful to human health and can enter drinking water when plumbing materials that contain lead corrode, especially where the water has high acidity or low mineral content that corrodes pipes and fixtures. The most common sources of lead in drinking water are lead pipes, faucets, and fixtures. In homes with lead pipes that connect the home to the water main, also known as lead services lines, these pipes are typically the most significant source of lead in the water. Lead pipes are more likely to be found in older cities and homes built before 1986.

New York’s Commitment to Water Quality
New York State continues to increase its nation-leading investments in water infrastructure, including more than $2.2 billion in financial assistance from EFC for local water infrastructure projects in State Fiscal Year 2024 alone. With $500 million allocated for clean water infrastructure in the FY25 Enacted Budget announced by Governor Hochul, New York will have invested a total of $5.5 billion in water infrastructure between 2017 and this year. Governor Hochul’s State of the State initiatives are ensuring ongoing coordination with local governments and helping communities to leverage these investments. The Governor increased WIIA grants for wastewater projects from 25 to 50 percent of net eligible project costs for smaller, disadvantaged communities. The Governor also expanded EFC’s Community Assistance Teams to help small, rural and disadvantaged communities leverage this funding and address their clean water infrastructure needs. Any community needing assistance with water infrastructure projects is encouraged to contact EFC.

The funding, in addition to other substantial water quality investments, includes the voter-approved $4.2 billion Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022 which is advancing historic levels of funding to update aging water infrastructure and protect water quality, strengthen communities' ability to withstand severe storms and flooding, reduce air pollution and lower climate-altering emissions, restore habitats; and preserve outdoor spaces and local farms. The first round of funding under the Environmental Bond Act was awarded through the WIIA/IMG programs in December, when Governor Hochul announced $479 million in grants to 156 projects across New York State, including $309 million made available to disadvantaged communities. Disadvantaged Communities will receive at least 35 percent of the benefits of Bond Act funding, with a goal of 40 percent.

Six Charged in Scheme to Defraud the Federal Government

 

Six defendants have been charged for their roles in schemes to rig bids, defraud the government and pay bribes and kickbacks in connection with the sale of IT products and services to federal government purchasers, which resulted in overcharges of millions of dollars to the U.S. government, including the Department of Defense (DoD). 

On Oct. 9 and Oct. 16, a federal grand jury in Baltimore returned indictments against two defendants. Four other defendants were also charged. These are the first charges in the Justice Department’s ongoing investigation into IT manufacturers, distributors and resellers who sell products and services to government purchasers, including to the intelligence community. 

“Antitrust crimes can undermine competition for products and services that are vital to our national security,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “When fraudsters siphon taxpayer funds, the Antitrust Division and its Procurement Collusion Strike Force (PCSF) partners across the government will hold accountable those who collude to subvert competition, line their pockets with federal procurement dollars and compromise the integrity of our intelligence community programs.”

“This office and our partners will use all available resources to hold accountable those who would undermine and distort the government’s procurement of goods and services, especially those related to our cybersecurity infrastructure,” said U.S. Attorney Erek L. Barron for the District of Maryland. 

“This investigation demonstrates the vital need to protect the DoD procurement process, particularly within the Intelligence Community,” said Special Agent in Charge Christopher Dillard of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “The Defense Criminal Investigative Service is committed to identifying fraudsters who abuse public trust and enrich themselves through criminal schemes.”

“There is no place for fraudsters and crooks scheming to manipulate the government bidding process for personal gain,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office. “The FBI remains steadfastly committed to identifying, investigating and bringing to justice those conspiring to enrich themselves by cheating taxpayers.”

“Investigating complex fraud schemes is a top priority of ours,” said National Security Agency Acting Inspector General Kevin Gerrity. “I commend our team, our law enforcement partners and the Justice Department for their work protecting the integrity of federal contracting.”

“Each part of the government must do its part to detect and prosecute instances of waste, fraud and abuse, and CIA’s Office of Inspector General was pleased to join its law enforcement partners in investigating this egregious case,” said CIA Inspector General Robin C. Ashton.

United States v. Victor Marquez

Victor M. Marquez, a Maryland resident and owner of two IT companies with significant government contracts, was charged in a four-count indictment with wire fraud conspiracy, wire fraud and major fraud against the United States for rigging bids and inflating the amount of money obtained from valuable IT contracts. 

Antwann C.K. Rawls, an employee of one of Marquez’s companies, and Scott A. Reefe, an IT sales executive, have been charged for their respective roles in the conspiracy.

As alleged in the indictment, Marquez, Rawls, Reefe and their co-conspirators used their positions of trust to learn sensitive, confidential procurement information, including procurement budgets for large U.S. government IT contracts. The co-conspirators used that inside information to craft bids at artificially determined, non-competitive and non-independent prices, ensuring Marquez’s company would win the procurement. 

According to court documents, the co-conspirators shared their bids in advance of submitting them to the government, with one co-conspirator emailing that he would submit a “high price third bid.” Marquez and his co-conspirators submitted their collusive bids despite knowing the government sought independent, competitive bids for the valuable contracts, and despite Marquez’s certification of independent bidding.

If convicted, Marquez faces maximum penalties of 20 years in prison for each conspiracy and wire fraud count and 10 years in prison for the major fraud charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

United States v. Breal L. Madison Jr.

Breal L. Madison Jr., a Maryland resident, was charged in a 13-count indictment with conspiracy, bribery of a public official, mail fraud and money laundering for orchestrating a years-long scheme to defraud his employer and the United States out of over $7 million in connection with the sale of IT products to various government agencies.

Brandon Scott Glisson, an IT contractor providing IT services to the U.S. government, and Glisson’s supervisor, Lawrence A. Eady, a former senior government employee, have also been charged for their respective roles in the scheme.

According to court documents, through multiple misrepresentations, Madison and his co-conspirators conspired to steal money from Madison’s employer and government agencies, illegally siphoning over $9 million in stolen proceeds to Madison’s shell company, Trident Technology Solutions, and another shell company. They used the money to purchase luxury items and to pay approximately $630,000 in bribes to Eady in exchange for Eady’s ensuring the purchase of additional products sold by Madison. 

Madison used his ill-gotten gains to buy a Vanquish VQ58 yacht, 2020 Lamborghini Huracan and multiple other vehicles, all of which the United States seeks to forfeit in the indictment. 

If convicted, Madison faces maximum penalties of five years in prison for the conspiracy count, 15 years in prison for each bribery count, 20 years in prison for each mail fraud count and 10 years for each money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The DCIS, the FBI Baltimore Field Office, CIA Office of Inspector General and NSA Office of Inspector General investigated the case.

Acting Assistant Chief Michael Sawers and Trial Attorneys Zachary Trotter and Elizabeth French of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky, Sean M. Delaney and Darren Gardner for the District of Maryland are prosecuting the case. 

Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

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

DEC Announces $4.5 Million in New Grant Funding to Establish Large Forests

 

Program Made Possible by USDA’s Partnership for Climate SMART Commodities Grant to New York State

Planting Projects Will Contribute to Governor’s ‘25 Million Trees by 2033’ Initiative and Climate Act Scoping Plan Reforestation Goals

New York State Department of Environmental Conservation (DEC) Interim Commissioner Sean Mahar announced $4.5 million is now available through the Establishing Large Forests (ELF) Grant Program for private landowners to establish new forests. ELF expands on New York State’s popular Regenerate NY Forestry Cost Share Grant Program and is designed to support the creation of new forests crucial for mitigating climate change, providing wildlife habitat, protecting air and water quality, and supplying timber, an important renewable resource.  

 

“Growing New York’s forests of the future is essential to boosting climate resilience and this grant opportunity supports both Governor Hochul’s ‘25 Million Trees’ initiative and ongoing efforts to reforest 1.7 million acres of land across the state,” said Interim Commissioner Mahar. “Every new acre of forest land brings us closer to the State’s goal of becoming carbon neutral by 2050, and private landowner play a crucial role in these efforts. Thanks to this funding from USDA, these ELF grants will incentivize forest growth on private lands and maximize the benefits of forests including biodiversity, habitat, air and water quality, and carbon storage, and I encourage all eligible landowners to apply.”

 

Under the new grant opportunity, private landowners (or their representatives) with five or more acres of unforested land in New York State may apply for a minimum of $30,000 up to a maximum of $750,000 to reimburse costs for establishing new forests. Eligible projects include but are not limited to preparing sites and planting trees and associated forest vegetation, removing competing or invasive vegetation interfering with seedling establishment and growth, and protecting new plantings from deer browse with fencing. Additional consideration will be given to applications with projects that cover large areas. 

 

Applicants must work with a forester or a qualified natural resource professional to develop their projects and must agree to maintain the new forest for at least 15 years. ELF is managed by DEC’s Division of Lands and Forests.  

 

DEC will host a webinar on Thursday, Nov. 14, from 9 - 11 a.m., to provide information and answer questions about this new funding opportunity. Visit DEC’s website for more information. A recording of the webinar will be posted on DEC’s website when available. 

 

Applications will be accepted until 3 p.m. on Tuesday, Jan. 7, 2025. Applications must be submitted through the SFS Grants Management System (SFS). Those wishing to apply need to establish an account in SFS. Once registered, search SFS for “Establishing Large Forests” or “ELF.” For more details about the grant opportunity, including application and scoring criteria, visit DEC’s website or email largeforests@dec.ny.gov.

 

The U.S. Department of Agriculture’s Partnership for Climate SMART Commodities grant awarded $60 million to five partners in New York State. DEC received $13 million for climate smart forestry practices and ELF is the first offering from DEC under the grant. Other grant partners include the New York State Department of Agriculture and Markets, State University of New York College of Environmental Science and Forestry, Cornell University, and Syracuse University.  A small portion of the ELF grant is funded from Regenerate NY through the New York State Environmental Protection Fund (EPF). In the 2024-25 State Budget, Governor Hochul maintained EPF funding at $400 million, the highest level of funding in the program's history. The EPF provides funding for critical environmental programs such as land acquisition, farmland protection, invasive species prevention and eradication, enhanced recreational access, water quality improvement, and an aggressive environmental justice agenda.