Wednesday, December 18, 2024

State Senator Gustavo Rivera's End of Year Newsletter!

 

GOVERNMENT HEADER

Dear Neighbor,


Happy Holidays! It is a great honor to serve as your representative in the New York State Senate. I am very grateful for the faith our community has put in me to be their voice in Albany.


This year, my team and I have worked diligently to pass legislation, provide resources to our community, and recognize those leaders in our community whose work make our district a better one. I wanted to end the year with a quick recap of what we have done for our district this year.


My district office will be closed for the holidays starting Monday, December 16 and will reopen on Thursday, January 2, 2024. You can still reach my office by calling 718-933-2034 Monday through Friday between 10AM to 6PM and leaving a voicemail.


Have a safe, healthy holiday season and a happy New Year!


Sincerely, 


Gustavo Rivera

New York State Senate 

33rd District 

Over the past year, Senator Rivera's team has assisted over 1000 constituents from all 11 ZIP codes who reached out to Senator Rivera’s Office for help. Housing—whether finding it or staying in it—continues to be the most pressing issue for residents in Senator Rivera’s district. We are proud to collaborate with organizations like the Northern Manhattan Improvement Corporation (NMIC), West Bronx Housing Resources Center (WBHRC), and others that provide outstanding support to Bronx residents through free housing counseling and legal services. If you live in the Northwest Bronx and need assistance or information, please contact Senator Rivera’s District Office at 718-933-2034.

In February, Senator Rivera's office partnered with the NYC Department of Finance and Part of the Solution (POTS) to host a free housing assistance clinic for his constituents. Senator Rivera's team and POTS helped many seniors in the Bronx apply to the City’s rent freeze program and to the SCHE program to provide property tax relief for homeowners.

In February, Senator Rivera hosted his annual Black History Month Celebration at Tracey Towers. It was a really uplifting afternoon with live music from the always entertaining Morrisania Band Project while sharing much needed quality time as neighbors. Thank you to Bronx DA Darcel Clark for attending, NMIC and LiveOn for providing tenants with benefits and resources, and Jean Hill, President of Tracey Towers Tenants Association, for hosting.

In March, Senator Rivera's team hosted an Immigrant Community Resource Fair at the Bronx Library Center. Neighbors navigating the complicated immigration and asylum processes were connected to experts and resources, including free legal assistance. If you are in need of assistance connecting to resources, call Senator Rivera's district office at 718-933-2034 or email at grivera@nysenate.gov.

In May, Senator Rivera launched his monthly Virtual Office Hours. During these meetings, the Senator virtually met with community members to discuss important topics such as the impact of dementia on the Bronx community, Section 8 Housing, as well as connected constituents to city and state agencies.


In 2025, our Virtual Office Hours will resume! If you would like to join the Senator's first virtual office hours of the new year, please call our district office at 718-933-2034 or email at grivera@nysenate.gov 

This year, Senator Rivera passed 73 bills through the Health Committee, 50 bills through the Senate, and 23 bills through both houses. In 2025, Senator Rivera will continue to fight for policies to improve New Yorkers' lives.

In June, Senator Rivera sponsored the first ever Norwood Pride event at Williamsbridge Oval. Thank you to the Mosholu Preservation Corporation (MPC) for putting together a terrific event featuring great music, fabulous performances, and vital resources for our community.

In July, Senator Rivera hosted his Annual Senior Health Fair and Luncheon. More than 250 seniors and 20 local agencies joined the Senator at Lehman College for an afternoon filled with free health screenings, delicious food, raffle prizes, and a great musical performance by the Morrisania Band Project.

In August, Senator Gustavo Rivera distributed over 2,500 free backpacks, school supplies, and books to children across 6 events throughout the Senators district. At Senator Rivera's main event at St. James Park, Bronxites  also received valuable information from local organizations to ensure a successful start to the new school year!

In September, Senator Rivera hosted his inaugural Health & Safety Fair at Poe Park. This event brought together elected officials and harm reduction organizations to discuss public health, safety, and strategies for substance use prevention and recovery.


Acknowledging the community's concerns about public drug use and syringe litter near the Kingsbridge Underpass, Poe Park, and other nearby areas, Senator Rivera emphasized the importance of local harm reduction providers. These organizations play a crucial role in safely disposing of needles and offering support to individuals, connecting them with recovery programs, medical care, and essential services.

In October, Senator Rivera held his inaugural Environmental Justice Fair at Williamsbridge Oval! Over 300 kids and families joined the Senator to explore local climate solutions, enjoy challenge cards, and win surprise raffle prizes. Attendees engaged in hands-on activities and sustainable arts and crafts, all while learning how to make a positive impact!

In October, Senator Rivera held his "Get Your Shots! Meet and Greet" event at Mt. Carmel Pharmacy in Belmont. There, he received his Flu Shot and COVID-19 Booster. His longtime pharmacist Roger Paganelli administered the vaccinations.


During the event, Senator Rivera engaged with community members urging them to consider getting their flu shot and COVID-19 booster including the RSV vaccine, if eligible.

In November, Senator Rivera and his team toured the district to distribute turkeys, helping ensure that families had what they needed for a joyful holiday season. Thanks to generous contributions from local businesses, corporate partners, community organizations, and anonymous donors, Senator Rivera's office provided turkeys to more than 700 families.

MAYOR ADAMS SIGNS LEGISLATION TO BUILD CRITICALLY-NEEDED HOUSING, ADDRESS SEWER AND FLOOD INFRASTRUCUTRE CONCERNS

 

Legislation Comes After Passage of “City of Yes for Housing Opportunity,” Most Pro-Housing Proposal in City History, and Investment of $5 Billion Towards Critical Infrastructure Updates and Housing  

Intro.1127-A Establishes Basement and Cellar Dwelling Unit Legalization Program in Certain Community Districts 

Intro. 1128-A Sets Forth Eligibility and Design Requirement for Accessory Dwelling Units 

Intro. 654-A Extends J-51 Tax Abatement Program for Eligible Condos and Co-ops 

Intro. 814-A Requires DEP to Update Plan to Prevent Sewer Backups by 2025 

Intro. 815-A Requires DEP to Adopt Interim Flood Risk Area Map

Intro. 850-A Requires HPD to Submit Periodic Reports to City Council on City-Financed Affordable Housing Projects on Disposition of City Property  

New York City Mayor Eric Adams today signed several pieces of legislation to help build critically-needed housing and address infrastructure concerns regarding sewers and flood prevention. Today’s bill signings come after the passage of Mayor Adams’ “City of Yes for Housing Opportunity” proposal, the most pro-housing zoning proposal in New York City history. The City of Yes proposal alone exceeds all the housing created from rezonings during any mayoral administration of the last 50 years, including all of the 12 years of the Bloomberg administration and all eight years of the de Blasio administration.  

“‘City of Yes for Housing Opportunity’ is a watershed moment in our city history,” said Mayor Adams. “Thanks to our partnership with Governor Hochul, Speaker Adams, and the New York City Council, our city met the moment in front of us, passing legislation that will allow us to build 80,000 new homes while investing $5 billion in critically-needed infrastructure and housing. Today’s bill signing is another step in the right direction, but our work is far from over. Our administration will continue the work of fighting for more affordable housing, providing stable housing to our unhoused neighbors in need, and bringing the American Dream of owning a home closer to reality for more New Yorkers.”

"With Mayor Adams signing the 'City of Yes for Housing Opportunity' legislative package into law, today marks a new chapter in our city's effort to ensure every New Yorker has a safe and affordable home," said First Deputy Mayor Maria Torres-Springer. "Thanks to Mayor Adams' leadership and our partnership with Governor Hochul, Speaker Adams, and the City Council, we took decisive action to deliver affordability for hard-working New Yorkers.  We are also investing $5 billion to strengthen our infrastructure, protect tenants, and bolster our ability to finance affordable housing across the five boroughs. Thank you to all who stood alongside us to say 'yes' to 'City of Yes.'"

"Planning for 80,000 more homes in New York must be done smartly — accounting for the infrastructure that turns units into complete communities,” said Deputy Mayor for Operations Meera Joshi. “The professionals at DOT, DEP, DOB, and Parks are stepping up to add critical infrastructure and community character to protect and shape neighborhoods for future generations. Today, as Mayor Adams signs these bills, we do just that." 

Intro. 1127-A — sponsored by New York City Councilmember Pierina Sanchez — would establish a basement and cellar dwelling unit legalization program in certain community districts. Building owners would be able to apply for an authorization for temporary residence for units that existed prior to April 20, 2024. The New York City Department of Buildings (DOB) would inspect such units prior to issuing an authorization and, if issued, the building owner would be permitted to do any necessary construction on the unit to legalize the unit and apply for an amended or partial certificate of occupancy. The New York City Department of Housing Preservation and Development (HPD) would provide technical assistance and outreach to owners of eligible basement or cellar residences. Tenants who resided in the basement or cellar unit on April 20, 2024 would have a right of first refusal to return to such unit upon its first occupancy following any necessary alterations.

Intro. 1128-A — sponsored by Councilmember Sanchez — sets forth eligibility, safety, and design requirements for accessory dwelling units (ADUs) added to one- or two-family dwellings. The bill would also set forth required means of fire prevention in ADUs, including fire separation, automatic sprinklers, smoke alarms, and exit stairways. Additionally, this bill would set forth requirements for light, ventilation, window size, emergency service access to units, and occupancy. This bill would require ADUs to have separate entrances, with basement ADUs required to have at least one means of egress, and cellar ADUs required to have at least two means of egress. Finally, this bill would prohibit basement and cellar ADUs in coastal and inland flood hazard areas, to mirror such prohibitions in the New York City Zoning Resolution.

Intro. 654-A — sponsored by Councilmember Sanchez — extends the J-51 tax abatement program for certain alterations or improvements completed after June 29, 2022 and before June 30, 2026. Eligible buildings are condos and co-ops where the average assessed valuation is under $45,000 per dwelling unit, and rental buildings 1) where more than half the units are affordable, 2) that are operated by limited-profit housing companies, or 3) that receive substantial governmental assistance. The owners of these buildings would be able to recover up to 70 percent of the cost of the work at 8 1/3 percent per year for up to 20 years. HPD would establish the work and costs that qualify for this program in a certified reasonable cost schedule, to be updated considering factors such as local law requirements and the effects of inflation. This bill would provide for tenant protections, including the possibility of a revocation of benefits if an owner fails to comply. This bill would also require HPD to report on the implementation of the program.   

Intro. 814-A — sponsored by New York City Councilmember James Gennaro — requires that the New York City Department of Environmental Protection (DEP) to update, by 2025, its plan to prevent sewer backups and conduct further updates every five years thereafter. Additionally, the plan would be expanded to include the identification of areas with a significant number of notices of claims filed with the comptroller alleging losses due to sewer backups. Further, this bill would require DEP to provide timely notice of unconfirmed sewer backups to impacted residents and to sewer backup complainants. Such notice would include a determination from DEP that the backup complaint was not associated with a condition in the city-owned sewer system, a statement that the backup may be related to an adverse condition in a privately-owned sewer, and an informational pamphlet detailing potential causes of backups in privately-owned sewers.  

Intro. 815-A — sponsored by Councilmember Gennaro — requires DEP, in consultation with the DOB and Mayor’s Office of Climate and Environmental Justice, to promulgate rules to adopt an interim flood risk area map for inland and coastal flooding. An inland map will illustrate areas with a 10-year flood risk from rainfall (i.e., probability of rainfall-induced flooding of 10 percent, or greater, in any year). Coastal inundation mapping will identify areas at risk to coastal storm surge during a 100-year storm (i.e., risk of coastal-induced flooding with 1 percent probability in any year) taking into account the 2080 sea level rise projections. These maps will be informed by climate data, including forecasts and findings developed by the New York City Panel on Climate Change. The bill lays out requirements for updates to the mapping, as well as the dissemination of information via DEP's website. Mapping will align with New York City Building Code Appendix G and will be revisited in a timely manner as Federal Emergency Management Administration updates become available in the future.    

Intro. 850-A — sponsored by New York City Councilmember Rafael Salamanca — requires HPD to submit periodic reports to the City Council regarding city-financed affordable housing projects involving the disposition of city property. The reports would be due every six months and would include, for each project, the project identifier and location, the date the developer was selected by HPD, the date the project received Uniform Land Use Review Procedure approval, whether the project includes any privately-owned parcels, the six-month cycle during which the disposition of city property is expected to occur, and, for projects that have already closed, the actual closing date for such disposition. 

Mayor Adams had made historic investments toward creating affordable housing over the last three years. In June, Mayor Adams agreed to an on-time, balanced, and fiscally-responsible $112.4 billion Fiscal Year (FY) 2025 Adopted Budget with the City Council that invests $2 billion in capital funds across FY25 and FY26 to HPD and the New York City Housing Authority’s capital budgets. In total, the Adams administration has committed a record $26 billion in housing capital in the current 10-year plan as the city faces a generational housing crisis. In July, Mayor Adams announced back-to-back record-breaking years in both creating and connecting New Yorkers to affordable housing. This past spring, the city celebrated the largest 100 percent affordable housing project in 40 years with the Willets Point transformation

Further, the Adams administration is using every tool available to address the city’s housing crisis. Mayor Adams announced multiple new tools, including a $4 million state grant, to help New York City homeowners create ADUs that will not only help them to afford to remain in the communities they call home, but also to build generational wealth for families.  

Earlier this year, Mayor Adams and members of his administration successfully advocated for new tools in the 2024 New York state budget that will spur the creation of urgently-needed housing. These tools include a new tax incentive for multifamily rental construction, a tax incentive program to encourage office conversions to create more affordable units, lifting the arbitrary “floor-to-area ratio” cap that held back affordable housing production in certain high-demand areas of the city, and the ability to create a pilot program to legalize and make safe basement apartments.   

Under Mayor Adams’ leadership, the city is fulfilling its 2024 State of the City commitment to build more affordable housing, including by being ahead of schedule on advancing two dozen affordable housing projects on city-owned land this year through the “24 in ‘24” initiative, reopening the Section 8 Housing Choice Voucher program waitlist after being closed to general applications for nearly 15 years, and creating the Tenant Protection Cabinet to coordinate across agencies to better serve tenants. The city has also taken several steps to cut red tape and speed up the delivery of much-needed housing, including through the “Green Fast Track for Housing,” a streamlined environmental review process for qualifying small- and medium-sized housing projects; the “Office Conversion Accelerator,” an interagency effort to guide buildings that wish to convert through city bureaucracy; and other initiatives of the Building and Land Use Approval Streamlining Taskforce.  

“As the chair of the Committee on Land Use for the last seven years, I have had the privilege of overseeing the approval of well over 100,000 units of new housing across New York City,” said Councilmember Salamanca. “In my district alone, I’ve approved over 10,000 units of 100 percent affordable housing. Unfortunately, there is a sad reality. Despite the lengthy negotiations it takes to approve a project, it often takes years for HPD to provide the necessary project funding to facilitate a development’s groundbreaking, delaying much-needed housing in the process. This lack of transparency is why I introduced Intro. 850-A, which would require HPD to report biannually when projects can expect to receive financing as part of the agency’s twice-a-year closing period. If a project does not close within a targeted closing cycle, HPD would be required to report the reasoning, and when a new closing date can be expected. Mandating this information to be public is an important step in understanding how the city prioritizes the development of housing across New York City.”

Founders of Illegal Pyramid Scheme Sentenced for Roles in Fraud That Caused Over $23M in Losses to Victims

 

Three individuals were sentenced for their roles in founding and operating an illegal pyramid scheme. Alex Dee, 50, of Fate, Texas, was sentenced to 36 months in prison and ordered to pay $1,845,600 in forfeiture; Brian Kaplan, 53, of Fort Collins, Colorado, was sentenced to 22 months in prison and ordered to pay $2,838,700 in forfeiture; and Jerrold Mauer, 58, of North Bellmore, New York, was sentenced to 22 months in prison and ordered to pay $1,545,500 in forfeiture.

According to court documents, from approximately January 2017 through March 2019, Dee, Kaplan and Maurer founded and operated 8 Figure Dream Lifestyle (8FDL), a Wyoming corporation, as an illegal pyramid scheme. Dee, Kaplan, and Maurer advertised 8FDL as an online marketing business that allowed members to easily earn millions of dollars by selling memberships into 8FDL. The business purportedly allowed its members to access various digital videos, mostly related to online marketing and self-help lessons, but the videos had nominal value and served merely as a vehicle for the company to appear legitimate. The main purpose of the company, however, was to allow members to make money by recruiting new members and selling additional memberships. In marketing the 8FDL memberships, Dee, Kaplan, and Maurer falsely represented to the public that typical members with no prior skills or experience would make substantial sums in a short period of time, including earning more than $10,000 within 60-90 days. In fact, the vast majority of 8FDL members never made a single sale, and Dee, Kaplan, and Maurer made these false statements to induce others to join 8FDL. In total, more than 2,800 individuals joined 8FDL, which resulted in approximately $23.5 million in losses to victim members.

In November 2023, both Kaplan and Maurer pleaded guilty to one count of conspiracy to commit wire fraud.

In July, Dee pleaded guilty to one count of conspiracy to commit wire fraud.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.

USPIS investigated the case.

Attorney General James Secures $675,000 of Baby Formula for New Yorkers in Need

 

Formula Donation Resolves AG’s Investigation of Formula Supplier Marine Park for Price Gouging During 2022 Shortage
Initial Donation of Baby Formula will be Delivered to Foodlink in Rochester

New York Attorney General Letitia James announced that her office secured $675,000 worth of baby formula for New Yorkers from formula supplier Marine Park Distribution Inc. (Marine Park) and its affiliate Formula Depot Inc. (Formula Depot) for illegal price gouging during the nationwide formula shortage in 2022. An investigation by the Office of the Attorney General (OAG) found that Marine Park and Formula Depot raised prices of formula during the shortage in violation of New York’s price gouging laws. At times, Marine Park doubled the price of a can of formula, charging its customers up to $36 for a can of formula that cost $18 before the shortage. Attorney General James secured a settlement in the form of baby formula to make it available to New Yorkers in need. The first donation of baby formula from this settlement will be made to Foodlink and its partner organizations in Rochester, and subsequent donations will be made over the coming year. In addition to donating baby formula, Marine Park and Formula Depot paid a $75,000 penalty. 

“Parents should never have to worry about unfair price spikes putting their children’s next meal at risk,” said Attorney General James. “In 2022, when there was a baby formula crisis and families across New York and the country were struggling to find and afford food for their infants, profiteering companies took advantage. As a result of our investigation, my office will be delivering thousands of cans of baby formula to support New Yorkers in need. I will continue to go after companies that price gouge essential goods and take advantage of hardworking families, especially during a crisis.”                      

The vast majority of infants in the U.S. are reliant on formula. Three quarters of U.S. infants are at least partially fed infant formula during the first six months of their lives. In February 2022, Abbott Laboratories, a major baby formula manufacturer that produced over 40 percent of the formula sold in the U.S. at the time, closed a manufacturing plant due to contamination concerns and recalled several of its popular Similac formula products. The plant closure and recall led to a severe shortage of baby formula that lasted for much of 2022. As a result of the shortage, New York families struggled to find available formula, faced the prospect of running out of formula entirely, and were often forced to pay much higher prices for the formula they could find.  

New York’s price gouging laws prohibit vendors from unconscionably increasing prices on goods that are vital to consumers’ health, safety, or welfare during market disruptions such as the 2022 formula shortage. In May 2022, Attorney General James issued warnings to more than 30 retailers across the state to stop overcharging for baby formula after consumers reported unreasonably high prices. 

An OAG investigation revealed that Marine Park, which sells formula to retailers, and Formula Depot, which sells to consumers online, in some cases raised prices over 60 percent more than was allowed under the law during the shortage, generating hundreds of thousands of dollars more in revenue. One consumer, who relied on Formula Depot for formula safe for babies with milk and soy allergies, bought a case of formula for $190, only to be charged $245 for the same case several weeks later. 

Under the settlement, Marine Park and Formula Depot must provide $675,000 of baby formula that OAG will donate to New Yorkers in need by November 2025. In addition, the two companies are barred from future price gouging and have paid a $75,000 penalty to the state. 

Attorney General James has been a leader in the fight to protect New York consumers and guard against price gouging. In October 2024, Attorney General James led a multistate coalition urging congressional leaders to support a national ban on price gouging. In March and April 2024, Attorney General James distributed over 9,500 cans of baby formula in Buffalo and New York City from a settlement with Walgreens for price gouging during the formula shortage. In May 2023, Attorney General James secured a $100,000 settlement with Quality King Distributors, Inc. due to unconscionable price increases for Lysol products during the early days of the COVID-19 pandemic. In March 2023, Attorney General James announced price gouging rules to protect consumers and small businesses from corporate profiteering. The rules would strengthen enforcement of New York’s price gouging law. In April 2021, Attorney General James delivered 1.2 million eggs to food pantries throughout the state which were secured as part of an agreement with the nation’s largest egg producers for price gouging in the early months of the pandemic. 

New Yorkers should report potential concerns about price gouging to the OAG by filing a complaint online or calling 800-771-7755.

Former Executive Of Airline And Co-Conspirator Sentenced In A Money Laundering Conspiracy

 

Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced that SHUKHRATJON MIRSAIDOV and SHUKHRAT ABDULLAEV were sentenced to one year and a day and 24 months in prison, respectively, for their roles in operating a money laundering scheme from June 2019 to February 2022, using the U.S. bank account of an international airline (“Airline-1”) with a hub at John F. Kennedy International Airport in New York, where MIRSAIDOV was the lead U.S.-based executive.  U.S. District Judge Loretta A. Preska imposed MIRSAIDOV’s sentence today and ABDULLAEV’s sentence on September 4, 2024, following the defendants’ guilty pleas to conspiracy to commit money laundering. 

Acting U.S. Attorney Edward Y. Kim said: “For years Shukhratjon Mirsaidov and Shukrat Abdullaev engaged in a scheme to launder healthcare fraud proceeds through the accounts of an international airline in order to conceal the illicit nature of these funds.  Laundering schemes that use real businesses to conceal crime proceeds are often particularly difficult for law enforcement to detect.  This case demonstrates that this Office will continue to root out money laundering, no matter how sophisticated, wherever it occurs and that those responsible will be held to full account."  

According to allegations in the Indictment, the criminal Complaint, public filings, and statements made in court: 

In the course of the money laundering conspiracy, MIRSAIDOV and ABDULLAEV used a U.S. company bank account for Airline-1 (the “Airline-1 Bank Account”) to operate a check-cashing scheme and to launder hundreds of thousands of dollars of healthcare fraud proceeds.  As a senior executive, MIRSAIDOV was one of two signatories for the Airline-1 Bank Account.  Between approximately June 2019 and August 2021, MIRSAIDOV deposited into the Airline-1’s Bank Account over 100 checks drawn from accounts controlled by seven shell companies that were used to launder the proceeds of healthcare fraud.  For example, the shell companies had received insurance payments for medical services purportedly provided by a doctor, but the doctor did not, in fact, provide such services.  The shell companies were primarily funded by payments from medical clinics, physicians, and medical diagnostic testing companies and had no relation whatsoever to the airline industry. 

MIRSAIDOV obtained the checks from the shell companies from ABDULLAEV, who was not an employee of Airline-1 and who obtained the checks from the perpetrators of the healthcare fraud scheme.  MIRSAIDOV and ABDULLAEV collected cash generated from Airline-1 ticket sales and fees, and instead of depositing that cash into Airline-1’s bank account, used the cash to illegally cash the shell company checks.  ABDULLAEV gave the cash generated from the airline ticket sales and fees to the perpetrators controlling the shell companies.

MIRSAIDOV and ABDULLAEV not only used the Airline-1 Bank Account to launder healthcare fraud proceeds from the shell companies, but also used the Airline-1 Bank Account to launder funds represented to be fraud proceeds in a series of sting transactions.  Between approximately June 2021 and February 2022, law enforcement, with the assistance of a confidential source (“CS-1”), conducted a series of sting money laundering transactions involving MIRSAIDOV, ABDULLAEV, and the Airline-1 Bank Account.  CS-1 asked ABDULLAEV to cash checks and transmit funds abroad and agreed to pay ABDULLAEV a four percent fee to do so.  ABDULLAEV told CS-1 a portion of the fee went to MIRSAIDOV.  During the transactions, CS-1 represented to ABDULLAEV that the funds were healthcare fraud proceeds.  Overall, CS-1 provided ABDULLAEV with 14 checks totaling $210,000 issued from a covert law enforcement account held in the name of a fictitious company.  MIRSAIDOV, working with ABDULLAEV, deposited 12 of the checks totaling $190,000 into the Airline-1 Bank Account.  CS-1 received cash from ABDULLAEV in exchange for the checks, and in one instance, ABDULLAEV coordinated the delivery of U.S. currency to an individual abroad in exchange for some of the checks.  During the course of these sting transactions, in a recorded conversation with CS-1, MIRSAIDOV admitted, in sum and substance, that he received many checks from ABDULLAEV and that MIRSAIDOV gave ABDULLAEV cash in exchange for the checks.  CS-1 informed MIRSAIDOV, in sum and substance, that the checks from CS-1 came from a medical company and that the company disguised the check payments in its financial reporting by claiming the check deposits were for business class flight tickets.  MIRSAIDOV nevertheless expressed a willingness to work directly with CS-1 to conduct check cashing using the Airline-1 Bank Account.       

Participants in the underlying healthcare fraud scheme who laundered their crime proceeds with the assistance of MIRSAIDOV and ABDULLAEV using the Airline-1 Bank Account have been charged by this Office in U.S. v. Tariverdi, et al, No. 24 Cr. 599 (JPO).

In addition to the prison sentence, MIRSAIDOV, 46, of Fort Lee, New Jersey, was ordered to pay forfeiture in the amount of $674,171.  ABDULLAEV, 39, of Brooklyn, New York, was sentenced to three years of supervised release and was ordered to pay forfeiture in the amount of $704,171.   

Mr. Kim praised the outstanding work of the Federal Bureau of Investigation. 

The case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Cecilia Vogel, Christopher Brumwell, and Vladislav Vainberg are in charge of the prosecution.