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Thursday, May 22, 2025
Bronx River Art Center (BRAC) - Join us for Spring Tea!
United States Files Civil Enforcement Action and Obtains Temporary Restraining Order to Stop Queens-Based Logistics Company and Others from Shipping Packages from China with Counterfeit Postage Labels
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Edward Gallashaw, Acting Inspector in Charge, United States Postal Inspection Service (USPIS) announced that the United States has obtained a temporary restraining order barring two logistics companies, one based in Queens, New York, and the other in Los Angeles, California, and their owner from using the United States Postal Service (USPS) to ship packages containing counterfeit postage.
On May 15, 2025, the United States filed a civil complaint in federal court in Brooklyn against the two shipping logistics companies and the companies’ owner (collectively Defendants), alleging that Defendants have committed mail fraud and conspired to commit mail fraud for years by shipping thousands of parcels through USPS using counterfeit USPS postage labels. Defendants, YDH Express, Inc., YDH Int’l Inc., and their owner/operator Yizhao Hou, also known as Harvey Hou, receive these parcels from their customers, which are companies located in China. The complaint seeks injunctive relief under the Anti-Fraud Injunction Act, as well as additional relief to remedy financial losses incurred by USPS. The United States also sought a temporary restraining order immediately barring Defendants from using USPS to mail parcels pending further order of the Court. On May 16, 2025, United States District Judge Natasha C. Merle entered a temporary restraining order against Defendants.
“The Postal Service provides essential services to Americans, and we will not tolerate attempts by unscrupulous overseas businesses using fake postage to unlawfully deprive USPS of revenue it is entitled to,” stated United States Attorney Nocella. “My Office is working diligently with our partners at the United States Postal Inspection Service to stop this ongoing fraud against the Postal Service.”
Mr. Nocella expressed his appreciation to the United States Postal Inspection Service and Customs and Border Patrol (CBP) for their work on the case.
“Hou allegedly cared only about making a profit at the expense of the USPS. The U.S. Postal Inspection Service, along with Homeland Security Investigations and U.S. Customs and Border Protection, have a shared commitment in identifying individuals like Yizhou Hou who allegedly facilitate and perpetuate the use of fraudulent or counterfeit postage,” stated USPIS Acting Inspector in Charge of the New York Division Gallashaw. “Postal Inspectors will use all of our resources to put an end to the use of counterfeit postage and hold accountable all who seek to defraud the USPS. We will fulfill our mission to strengthen the American public’s trust in the U.S. Mail.”
As alleged in the complaint, Defendants have conspired to ship thousands of parcels bearing counterfeit USPS labels, which they receive in bulk from their customers, sellers of goods located in China. Defendants have allegedly deprived USPS of substantial revenue through their use of counterfeit postage labels. The complaint alleges that Defendants have committed mail fraud and conspiracy to commit mail fraud, and violated the False Claims Act (FCA), as a result of their misconduct. The FCA allows the government to seek treble damages and penalties against those who defraud the United States, including by knowingly failing to pay obligations to the government. The complaint seeks injunctive relief, damages, and penalties.
As set forth in the May 16, 2025 temporary restraining order (TRO), the Court found that there is “probable cause to believe that defendants are still engaged in the ongoing commission of mail fraud, and are still engaged in the ongoing conspiracy to commit mail fraud,” and that USPS would suffer “irreparable harm” absent a TRO because it “would continue to be defrauded by defendants’ use of counterfeit or invalid postage labels, or both.”
You can report mail theft, identity theft, fraud, or other crimes involving the U.S. mail by calling the Postal Inspection Service’s national toll-free number: 877-876-2455 or at http://uspis.gov/report.
Governor Hochul Celebrates More Than $400 Million Investment in the State’s Capital City
Announces Nationally Recognized Planning Firm MIG To Develop Roadmap for $200 Million Downtown Albany Investment
Includes up to $150 Million To Revitalize NYS Museum and Other Cultural Experiences, up to $40 Million To Advance Redevelopment of I-787 and $1.5 Million To Support Local Public Safety Efforts
Governor’s Investment in Capital City Represents Comprehensive Approach by New York State To Revitalize Albany That Addresses City’s Needs and Unlocks its Potential
Governor Kathy Hochul celebrated the FY26 Enacted Budget investments in Albany’s downtown by launching the Championing Albany’s Potential (CAP) Initiative, a more than $400 million, collaborative, State-led effort to revitalize Albany’s downtown core. This includes $200 million in funding to plan and implement projects that reinvigorate commercial corridors, strengthen small businesses, promote housing growth, and revitalize underutilized real estate and open spaces. The CAP initiative also includes up to $150 million to transform cultural experiences in and around Albany’s Downtown such as the State Museum, up to $40 million to advance plans to reconnect communities divided by Interstate 787 and $1.5 million for public safety enhancements.
“Albany is not only our great state’s capital city, it's also a place I call home. This investment isn't just about dollars and cents, it's about jobs, innovation and a brighter future for our community,” Governor Hochul said. “We are building on Albany’s rich legacy of progress and positioning this city as a hub for opportunity in the 21st Century.”
As part of the CAP Initiative, Empire State Development has selected MIG to lead a collaborative planning effort to revitalize the downtown core of Albany. MIG, a nationally recognized planning and economic development firm, will lead a team of experts in urban strategy, public space design, community engagement, and development feasibility. MIG will work with ESD and local stakeholders to develop a roadmap focused on catalytic projects, bundled investments, and a long-term growth strategy for Downtown Albany. The strategy will prioritize projects that are ready to go, supported by the community, and capable of attracting housing, business, and new activity. It will ensure that Albany’s revitalization is not only inclusive, but enduring.
Engagement will begin with local and neighborhood stakeholder briefings. Broader public engagement will be held throughout the summer, beginning in June, alongside digital tools and direct outreach to ensure broad participation. The public may sign up to receive more information on the CAP Initiative page when it becomes available.
Additionally, in cooperation with Empire State Development, Capitalize Albany will launch a Request for Proposals for the redevelopment of Liberty Park on May 28. The Liberty Park site spans approximately eight acres and represents the single largest development site in downtown Albany. Capitalize Albany is in the process of seeking transformational development opportunities for the site’s revitalization, which will complement the State's $200 million investment in Downtown Albany. For more information visit the official Liberty Park Site Redevelopment website.
The comprehensive approach to the CAP Initiative also includes up to $150 million to transform cultural experiences in and around Albany’s Downtown, such as renovating the New York State Museum and upgrading the exhibits to be more inviting to Albany families and tourists alike. It also includes funding to invest in improvements at the Empire State Plaza to strengthen connections with the surrounding community and make the space a vibrant and inviting part of the fabric of downtown Albany.
Additionally, Governor Hochul has committed up to $40 million to advance plans to reimagine I-787 which would include reconnecting Albany and surrounding communities and enhancing access to the Hudson River waterfront. This summer, the New York State Department of Transportation (NYSDOT) will release a Planning and Environment Linkages (PEL) study on potential ways to reimagine I-787, a travel corridor in the Capital Region that provides high speed access to the City of Albany and other communities along the river, including Green Island, Watervliet and Menands. Building upon the work completed under the PEL study, up to $40 million will be utilized by NYSDOT to begin an Environmental Impact Statement, which will lay the groundwork for a future project along the I-787 corridor. The environmental review will examine ways to enhance waterfront access along the Hudson River for all users of the road, connect neighborhoods and key destinations in communities along the corridor, and address the infrastructure of I-787, the South Mall Expressway, the Dunn Memorial Bridge, and additional infrastructure along the study area.
Governor Hochul previously announced $19.5 million in State investments to improve public safety in Albany, which included a $1 million commitment to the City of Albany Police Department and $500,000 for the Albany County Sheriff’s Office. These investments reflect a record level of State funding for public safety in the City of Albany and Capital Region. These resources are delivered through a series of nation-leading programs supported by the Division of Criminal Justice Services (DCJS), including the Gun Involved Violence Elimination (GIVE) initiative, the Capital Region Crime Analysis Center, the SNUG Street Outreach and Social Work Program and Project RISE (Respond, Invest, Sustain and Empower). Working together, these efforts have helped reduce violence and improve community safety.
Attorney General James Delivers Over $13,500 Worth of Baby Formula to Brooklyn Families
Latest Formula Donation from AG James’ Settlement with Baby Formula Supplier Paragon for Price Gouging During 2022 Shortage AG James Has Secured More Than $700,000 Worth of Baby Formula Donations from Price Gouging SettlementsNew York Attorney General Letitia James secured the donation of over $13,500 worth of baby formula from baby formula supplier Paragon USA & Co., LLC (Paragon) for Brooklyn families. The donation is the result of the Office of the Attorney General’s (OAG) investigation into Paragon for price gouging during the nationwide baby formula shortage in 2022. As part of a settlement with OAG, Paragon has paid a $10,000 penalty and delivered an additional $35,000 in free baby formula that OAG has distributed to New Yorkers in need. Today’s donation is the fourth and final delivery of baby formula from Paragon and will be distributed by Mixteca, a community organization primarily serving Latino communities in Brooklyn.
“Companies should never be able to raise prices and squeeze extra profits from struggling New Yorkers during a crisis,” said Attorney General James. “At a time when families were desperately searching for baby formula, Paragon raised its prices to unconscionable levels. As a result of my office’s investigation, we have secured another delivery of free baby formula to Brooklyn families in need. I will continue to go after any company for price gouging New Yorkers.”
“At Mixteca, we are deeply grateful for this generous donation of baby formula,” said Mixteca Executive Director Lorena Kourousias. “This support ensures that families in our community have access to essential nutrition for their little ones during a time of great need. Thank you, Attorney General James, for standing with our immigrant and Indigenous families and helping us care for the youngest members of our community with dignity and love.”
In 2022, Abbott Laboratories closed one of its baby formula manufacturing plants and recalled formula produced there, creating significant hardship for families throughout New York and the nation as formula supplies dwindled and prices rose. Abbott produces over 40 percent of the infant formula sold in the United States, and the plant it closed was responsible for approximately one fifth of total U.S. production.
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.
The OAG’s investigation found that Paragon, which supplies formula to retailers in New York, generated tens of thousands of dollars in additional revenue by raising prices more than 20 percent after Abbott announced its recall. The price hikes affected thousands of units of canned or bottled formula sold primarily in New York City.
As a result of a settlement with OAG, Paragon must pay penalties and make formula donations with a combined value of $45,000. This includes a $10,000 penalty to the state that Paragon has already paid and an additional $35,000 that has been paid in the form of donated formula. Today’s donation is the fourth and final donation secured by Attorney General James as part of the settlement with Paragon. In February, Attorney General James secured the donation of over $1,500 worth of baby formula to families in Westchester, and in March, over $6,300 worth of baby formula to families in Brooklyn. Earlier in May, Attorney General James secured the donation of over $13,500 worth of formula in Rochester.
New York Attorney General Letitia James secured the donation of over $13,500 worth of baby formula from baby formula supplier Paragon USA & Co., LLC (Paragon) for Brooklyn families. The donation is the result of the Office of the Attorney General’s (OAG) investigation into Paragon for price gouging during the nationwide baby formula shortage in 2022. As part of a settlement with OAG, Paragon has paid a $10,000 penalty and delivered an additional $35,000 in free baby formula that OAG has distributed to New Yorkers in need. Today’s donation is the fourth and final delivery of baby formula from Paragon and will be distributed by Mixteca, a community organization primarily serving Latino communities in Brooklyn.
“Companies should never be able to raise prices and squeeze extra profits from struggling New Yorkers during a crisis,” said Attorney General James. “At a time when families were desperately searching for baby formula, Paragon raised its prices to unconscionable levels. As a result of my office’s investigation, we have secured another delivery of free baby formula to Brooklyn families in need. I will continue to go after any company for price gouging New Yorkers.”
“At Mixteca, we are deeply grateful for this generous donation of baby formula,” said Mixteca Executive Director Lorena Kourousias. “This support ensures that families in our community have access to essential nutrition for their little ones during a time of great need. Thank you, Attorney General James, for standing with our immigrant and Indigenous families and helping us care for the youngest members of our community with dignity and love.”
In 2022, Abbott Laboratories closed one of its baby formula manufacturing plants and recalled formula produced there, creating significant hardship for families throughout New York and the nation as formula supplies dwindled and prices rose. Abbott produces over 40 percent of the infant formula sold in the United States, and the plant it closed was responsible for approximately one fifth of total U.S. production.
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.
The OAG’s investigation found that Paragon, which supplies formula to retailers in New York, generated tens of thousands of dollars in additional revenue by raising prices more than 20 percent after Abbott announced its recall. The price hikes affected thousands of units of canned or bottled formula sold primarily in New York City.
As a result of a settlement with OAG, Paragon must pay penalties and make formula donations with a combined value of $45,000. This includes a $10,000 penalty to the state that Paragon has already paid and an additional $35,000 that has been paid in the form of donated formula. Today’s donation is the fourth and final donation secured by Attorney General James as part of the settlement with Paragon. In February, Attorney General James secured the donation of over $1,500 worth of baby formula to families in Westchester, and in March, over $6,300 worth of baby formula to families in Brooklyn. Earlier in May, Attorney General James secured the donation of over $13,500 worth of formula in Rochester.
NY Man Charged With Using Sham Blockchain Venture To Defraud Investors
Jeremy Jordan-Jones Used Money From Investors to Fund Lavish Lifestyle
Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JEREMY JORDAN-JONES, the self-styled “founder” of a purported technology company, with wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft. JORDAN-JONES was arrested and was presented before U.S. Magistrate Judge Robert W. Lehrburger. The case is assigned to U.S. District Judge Arun Subramanian.
“As alleged, Jordan-Jones, capitalizing on the publicity around blockchain technology, perpetrated a brazen scheme to defraud investors,” said U.S. Attorney Jay Clayton. “He touted his company as a groundbreaking blockchain startup, backed by high-profile partnerships. In reality, Jordan-Jones’s company was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle. This should be an example to would be financial fraudsters that the women and men of the Southern District and the FBI are watching and to the investing public that fraudsters often use the promise of new technology to cloak their schemes.”
FBI Assistant Director in Charge Christopher G. Raia said: “Jeremy Jordan-Jones allegedly defrauded investors of more than one million dollars through misrepresentations of his purported company's capabilities, partnerships, and investment intentions. Jordan-Jones's alleged blatant lies funded his personal lifestyle at the expense of unknowing victims. The FBI is committed to apprehending any individual who employs deceitful tactics and illusionary business models to steal from trusted investors.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
From at least in or about January 2021 through at least in or about November 2022, JORDAN-JONES engaged in a scheme to defraud investors in Amalgam Capital Ventures (“Amalgam”), a technology startup that purported to offer point-of-sale systems and blockchain-based payment and security solutions. JORDAN-JONES misrepresented that Amalgam had developed functioning software products, falsely claimed that it had lucrative high-profile partnerships with major-league sports teams and prominent payment-processing platforms, and made misleading statements about Amalgam’s financial condition. In perpetrating his fraudulent scheme, JORDAN-JONES submitted falsified financial documents to a bank. He also falsely represented to investors that their money would be used for listing a proprietary cryptocurrency coin on global cryptocurrency exchanges, as well as for hardware, software, and other expenses associated with the Amalgam’s operations.
All the while, JORDAN-JONES well knew that Amalgam had no operable products, few—if any—customers, and zero legitimate business partnerships. Based on his materially false and fraudulent representations, JORDAN-JONES obtained over $1 million from investors and lenders, much of which he used for his personal benefit. Ultimately, Amalgam ceased operations, and investors and lenders suffered significant financial losses.
JORDAN-JONES is charged with one count of wire fraud, which carries a maximum potential sentence of 20 years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; one count of false statements to a financial institution, which carries a maximum sentence of 30 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.