MAYOR ADAMS ANNOUNCES MULTI-AGENCY “COMMUNITY LINK” OPERATION TO ENHANCE QUALITY OF LIFE, IMPROVE SAFETY IN CENTRAL PARK

Mayor Adams’ “Community Link” Has Provided Intensive Government Response Effort That Has Already Responded to Over 1,500 Complaints, Conducted Over 1,600 Operations 

  

Coalition Includes More Than 20 City Agencies and Community Partners Working to  Make Central Park Even Cleaner, Safer, and More Vibrant for New Yorkers and Visitors Partnership Has Resulted in Enhanced Public Safety Outreach and Enforcement Efforts,  in Collaboration with Newly Launched Central Park Ranger Corps  

New York City Mayor Eric Adams today announced the “Central Park Conservancy Partnership,” a multi-agency response aimed at addressing public safety and improving quality of life in and around Central Park. The partnership — part of Mayor Adams’ “Community Link” initiative — is focused on improving coordination across enforcement agencies and increasing public education for parkgoers, particularly around illegal vending, unlicensed or unlawful pedicabs, excessive noise, and other quality-of-life concerns. 

  

“Central Park is the backyard of New York City, and everyone — families, kids, joggers, cyclists, and tourists — must be safe and feel safe while enjoying this iconic green space,” said Mayor Adams. “New York City remains the safest big city in America, the best place to raise a family, and a place where you know your city is looking out for you — on the streets, in our parks, in the subways, and on the sidewalks. Through the ‘Central Park Conservancy Partnership’ — our newest Community Link initiative — we are doubling down on our commitment to tackle quality-of-life complaints like excessive noise, trash, and illegal vending — delivering a safer, cleaner city for all.” 

 

“This operation is about more than enforcement — it’s about coordination, communication, and long-term strategies to protect one of the most iconic public spaces in the world,” said Deputy Mayor for Public Safety Kaz Daughtry. “Under Mayor Adams’ direction, our city agencies and community partners are working together with one clear mission: making Central Park safer, cleaner, and more enjoyable for everyone. And we’re already getting it done — crime is down, order is being restored, and New Yorkers and visitors alike can see the difference.” 

  

“Central Park is one of the most visited locations in the country, with millions of visitors every year. This creates unique challenges in how we manage the use of shared space for the benefit of everyone. Through this new partnership with city agencies and the launch of our new Rangers Corps, we are working to make the park more welcoming and enjoyable for everyone,” said Betsy Smith, president and CEO, Central Park Conservancy. “We are grateful to the city, its many agencies that operate within Central Park, and the community that is dedicated to stewarding Central Park for the enjoyment of all.”  

  

The New York City Police Department (NYPD) and New York City Department of Parks and Recreation’s (NYC Parks) Parks Enforcement Patrol (PEP) have increased enforcement efforts in the park, particularly on unlawful pedicab operations and illegal vending. Year to date, this increased coordination has led to 681 summonses issued by the PEP, including 289 for pedicab violations and 294 for unauthorized vending for the first and second offenses. Other summonses include unlawful urination, unreasonable noise, and parking violations. The NYPD’s Central Park Precinct officers have issued 460 summonses year to date, including 194 for pedicab violations and 38 for illegal vending. Crime in the Central Park Precinct is down 50 percent year to date, driven by a 90 percent reduction in robberies and a nearly 29 percent reduction in grand larcenies. 

  

This partnership is aided by the Central Park Conservancy’s new Ranger Corps, deployed seven days a week to address visitor concerns and quality-of-life issues, protect the park, and serve as a point of contact for the public. The Rangers will not have summonsing authority but will coordinate closely with the NYPD and PEP to monitor compliance with city rules and permit guidelines and assist first responders during emergencies. Their responsibilities include addressing recurring issues like dogs off leash; improper operation of bikes, e-bikes, and mobility devices on park paths and drives; illegal vending; pedicab and horse carriage operators soliciting in unlawful places; and other quality-of-life issues.  

  

As part of the partnership, the Mayor’s Office has also already convened an interagency task force to address unsafe pedicab operations. The task force — working in partnership with the New York Pedicab Association — is focused on sustained enforcement and compliance with pedicab laws and regulations. Key initiatives include: 

  

• Crackdowns on unlicensed and repeat-offender pedicab operators: Year to date, the PEP has issued 289 summonses, and the NYPD has issued 194 summonses related to pedicab enforcement. The NYPD has also seized 19 pedicabs — up from just one during the same period in 2024. The task force is also working with Midtown Community Justice Center to identify and address repeat offenders. 

• Education to protect pedicab riders: The New York City Department of Consumer and Worker Protection (DCWP), in coordination with the Mayor’s Office, produced an educational flyer that will be distributed throughout Central Park and shared across multiple communication channels to inform riders of their rights, help them identify properly licensed pedicab drivers, and explain how to report violations. 

  

Additionally, the NYPD and NYC Parks — in coordination with the partnership — developed new, consolidated vending rules and maps of approved vending locations to improve compliance and better protect consumers from fraudulent or unauthorized vendors selling items in Central Park. NYPD, NYC Parks, and the New York City Department of Transportation (DOT) are also implementing infrastructure improvements in and around Central Park — including repairing and installing lighting and security cameras — to enhance public safety, deter unlawful activity, improve visibility, and support ongoing enforcement efforts. 

  

The partnership is led by the Mayor’s Office and the Central Park Conservancy, in collaboration with community partners from: 

  

• American Museum of Natural History 

• Center for Justice Innovation 

• Central Park Boathouse 

• Central Park Zoo 

• Delacorte Theater 

• Metropolitan Museum of Art 

• New York City Community Boards 5, 7, 8 and 10 

• New York Pedicab Alliance 

• New York Roadrunners 

• Tavern on the Green 

• Wildlife Conservation Society 

• Wollman Rink 

  

Participating city agencies in this Community Link include: 

• DCWP 

• DOT 

• Mayor’s Office of Community Mental Health 

• Mayor’s Office of Municipal Services Assessment 

• New York City Department of Environmental Protection 

• New York City Department of Health and Mental Hygiene (DOHMH) 

• New York City Department of Homeless Services (DHS) 

• New York City Department of Sanitation 

• New York City Department of Veterans’ Services 

• New York City Office of Technology and Innovation 

• NYC Parks 

• NYPD 

  

In May 2023, Mayor Adams launched Community Link to bring together various city agencies and local community and business leaders to address complex and often chronic community complaints that require a multi-agency response. Community Link has previously convened seven community improvement coalitions throughout the five boroughs. Focused on “hot spot” areas, Community Link is active at 125th Street, on the 110th Street Corridor, in Midtown West, and on East 14th Street in Manhattan; on Roosevelt Avenue in Queens; and at “The Hub” in the South Bronx. Since its inception, Community Link has responded to over 1,500 complaints and conducted over 1,600 operations to address quality-of-life concerns raised by the communities they serve.  

  

The Central Park Conservancy Partnership builds on the work conducted by the Community Link team on the 110th Street Corridor bordering the north side of Central Park, which began in April 2024. To date, this Community Link has made 111 arrests, issued 1,031 summonses, and seized five scooters on 110th Street. In addition, DHS and DOHMH conducted outreach to individuals experiencing homelessness, resulting in over 1,000 clients engaged and over 25 placed in shelters. 

  

Today’s announcement further demonstrates the Adams administration’s emphasis on taking a community-driven approach to public safety concerns. In October 2024, Mayor Adams announced the “Every Block Counts” pilot program, a data-driven multi-agency and community partnership that aims to permanently transform the conditions and culture on residential blocks that have historically seen high levels of crime and quality-of-life issues. Efforts are informed by volunteer residents known as “Block CEOs” and include infrastructure improvements, such as repaving sidewalks and removing graffiti, as well as social services and resources for block residents. In April 2025, Mayor Adams and NYPD Commissioner Jessica Tisch launched the NYPD’s new Quality of Life Division, a citywide initiative that brings together specially trained officers from existing NYPD community-oriented roles to address chronic quality-of-life issues and strengthen community trust. 

 

“It is paramount New Yorkers feel safe and heard within their communities — something this hub aims to address through effective and strategic investments by multiple-agencies, community leaders, and law enforcement collaboration,” said Manhattan District Attorney Alvin Bragg. “The ‘Central Park Conservancy Partnership’ is thoughtfully crafted to target chronic community concerns and find proactive fixes to quality-of-life complaints to restore the community’s faith, trust, and wellbeing. We look forward to our continued collaboration with our city and community partners to achieve long-lasting public safety.” 

Governor Hochul Announces Confirmation of Three Cabinet Members

Willow Baer Confirmed By New York State Senate To Serve As Commissioner of the Office For People With Developmental Disabilities

Amanda Lefton Confirmed By New York State Senate To Serve As Commissioner of the Department of Environmental Conservation

Denise Miranda Confirmed By New York State Senate To Serve As Commissioner of the Division of Human Rights

Governor Kathy Hochul today announced the confirmation of three members of her cabinet.

“New Yorkers deserve smart, experienced professionals at every level of government, and these leaders have distinguished themselves as public servants,” Governor Hochul said. “Our Administration is laser focused on making New York safer and more affordable, and these three commissioners will play pivotal roles in our work to improve the lives of all New Yorkers. “

The following Commissioners were confirmed by the Senate:

• Willow Baer, Office For People With Developmental Disabilities
• Amanda Lefton, Department of Environmental Conservation
• Denise Miranda, Division of Human Rights

About Commissioner Willow Baer

Willow Baer was confirmed by the New York State Senate on May 21 to serve as Commissioner of the Office of People with Developmental Disabilities. Commissioner Baer has been serving as Acting Commissioner since July 2024.

Commissioner Baer is honored to lead OPWDD. Previously, she served as OPWDD’s Executive Deputy Commissioner and oversaw the agency’s operational management, including planning, fiscal planning and oversight, and policy development. She was also responsible for oversight of agency staff in a broad range of capacities, including direct care support, clinical and medical staff in residential and non-residential settings, maintenance and operations.

Commissioner Baer has served twice as Assistant Counsel to Governor Hochul, overseeing legal priorities and legislation across the fields of Human Services and Mental Hygiene. Additionally, she previously served as General Counsel to OPWDD, General Counsel and Deputy Commissioner for the Office of Children & Family Services, and as Counsel to the NYS Justice Center.

Commissioner Baer was named one of PoliticsNY and amNY’sMetro 2024 Power Players in Health Care and was presented with the 2025 Distinguished Public Service Award by the New York Alliance for Inclusion and Innovation.

Commissioner Baer has spent her entire career working to protect and advocate for underrepresented populations. She will continue the agency’s work to ensure that New York is a state that is inclusive, supportive, and one that those with developmental disabilities live with meaningful choice and are proud to call home.

About Commissioner Amanda Lefton

Amanda Lefton was confirmed by the New York State Senate on May 28 to serve as Commissioner of the Department of Environmental Conservation (DEC). Commissioner Lefton has been serving as Acting Commissioner since February 2025.

Commissioner Lefton’s diverse career spans the public and private sectors, including previously serving as the Director of the Bureau of Ocean Energy Management (BOEM) within the Department of the Interior. Under her leadership, BOEM developed and implemented an ambitious federal offshore wind program creating a new industry of family supporting jobs and generational opportunity. Her collaborative approach brought together various stakeholders to responsibly manage the nation’s critical offshore energy and mineral resources.

Prior to her role as BOEM Director, Lefton served as the First Assistant Secretary for Energy and Environment for New York, where she led the State’s environmental and climate initiatives overseeing a portfolio of executive agencies including the DEC. She has also worked for The Nature Conservancy in New York as the Deputy Policy Director and climate mitigation lead, the Rochester Regional Joint Board of Workers United and the New York State Assembly and New York State Senate. Lefton comes to the DEC from RWE, one of the world's leading players in the offshore wind sector, where she was the Vice President of Offshore Development, U.S. East.

Originally from Queens, Commissioner Lefton grew up on Long Island and holds a Bachelor of Arts from the University at Albany. She now resides in the Capital Region with her wife and stepchildren.

About Commissioner Denise Miranda

Denise Miranda was confirmed by the New York State Senate on May 29 to serve as Commissioner of the Division of Human Rights. Commissioner Miranda has been serving as Acting Commissioner since March 2024.

Under Commissioner Miranda’s leadership, the Division has launched ambitious efforts to overhaul the agency’s discrimination complaint intake and case management processes while also implementing vital organizational changes and operational improvements. These essential upgrades will result in a bolder, more powerful, and more efficient Division that is prepared to protect the rights of all New Yorkers at a time when that mission has never been more critical.

Since Commissioner Miranda’s appointment, the Division has increased staffing levels agencywide by more than 50 percent, expanded education and outreach initiatives, and launched new units essential to advancing the agency’s work. These initiatives have been supported by Governor Hochul’s historic investments. The Governor has more than doubled the Division’s funding during her time in office, including an $11 million increase in the FY26 Enacted Budget.

Prior to this, Commissioner Miranda served as the Executive Director of the New York State Justice Center for the Protection of People with Special Needs for seven years. She oversaw the agency’s operations, which included investigations into abuse and neglect, criminal prosecutions, and administrative disciplinary proceedings. Under her leadership, the Justice Center managed the care of over one million individuals, with a workforce of more than 425 employees and a $41 million operating budget.

 

Attorney General James Recovers Over $660,000 for Foreign-Recruited Nurses Exploited by Health Care Staffing Agency

 

Advanced Care Staffing Recruited Nurses from Abroad and Subjected Them to Exploitative Contracts

71 Former Nurses Who Were Forced to Pay Illegal Fees Will Receive Restitution

New York Attorney General Letitia James secured more than $660,000 for foreign-born nurses who were subjected to illegal labor trafficking and exploitative contracts by Advanced Care Staffing and Priority Care Staffing (ACS) and ACS CEO Sam Klein. An Office of the Attorney General (OAG) investigation found that ACS, a New York health care staffing agency, recruited nurses from abroad and required them to unwittingly sign exploitative employment contracts. Nearly all of these contracts included severe financial penalties for early resignation, requiring any nurse who resigned or was fired before their contract expired to pay the company as much as $20,000. The OAG found that since 2020, ACS has collected this “termination penalty” from 71 nurses, many of whom resigned due to significant concerns about understaffing, inadequate patient care, mandatory double shifts, and going weeks without a day off. As a result of the OAG investigation, Attorney General James has secured $663,668.66 in restitution for the 71 exploited nurses and is requiring ACS to forgive outstanding debt for former employees and remove the exploitative provisions from its contracts.

“Advanced Care Staffing exploited vulnerable nurses, had them sign unfair contracts, and forced them to pay illegal financial penalties,” said Attorney General James. “Nurses are the backbone of our health care system, and they deserve fair and just treatment. No worker in New York should be forced to choose between their financial security and their basic rights. My office will always fight to ensure nurses across New York can continue their life-saving work free from mistreatment and intimidation.”

ACS is a for-profit health care staffing agency that recruits trained nurses from foreign countries to work at health care facilities and nursing homes in New York City, Westchester, and on Long Island. In July 2023, OAG opened an investigation into ACS and found that since 2013, ACS had recruited dozens of nurses from other countries, offering to sponsor them for visas and cover the cost of transportation and the immigration process. As part of its recruitment efforts, ACS required the nurses to sign restrictive, exploitative contracts with limited information or legal advice. The foreign nurses had to rely on ACS representatives to explain the provisions in the contract and were not encouraged to seek outside legal counsel. Part of this contract was an illegal repayment provision, which required the nurses, with limited exceptions, to pay up to $20,000 if they resigned or were fired before their contract ended, typically after two or three years of employment.

In addition to the contracts, nurses were required to sign a legal pledge that guaranteed payment of the $20,000 if they departed ACS early. Around 2022, ACS changed its practices and stopped requiring this legal guarantee of payment. Instead, ACS began enforcing the penalty through an arbitration process that, in addition to the early termination fee, would hold employees responsible for “lost profits.” The OAG concluded that this was a continuation and escalation of the previous penalty provision, as ACS would send nurses repeated letters and emails indicating the company planned to seek at least $20,000 in arbitration – if not more – if the nurses did not reconsider their resignation. The agreement also required nurses to cover all attorneys’ fees for the company if they lost during arbitration.

The result was a pervasive climate of fear for the foreign-recruited nurses who worked at ACS. The OAG found that nurses consistently raised concerns to ACS about working conditions at their facilities, including unsustainable nurse-to-patient ratios, frequent mandatory double shifts, and inadequate support and staffing, resulting in a dangerous environment for both the nurses and their patients. Nurses expressed that they felt their nursing licenses were at risk and, as a result, felt compelled to resign. In five years, ACS coerced 71 nurses into paying the resignation fee – 24 nurses paid up to $7,000, 18 paid between $8,000 and $10,000, 24 paid between $11,000 and $15,000, and five paid $20,000. The OAG determined that ACS engaged in a pattern of coercive behavior and repeatedly violated the Trafficking Victims Protection Act, which prohibits companies from exploiting people for labor through threats of force, legal action, or harm, including financial harm.

As part of the settlement, ACS will pay $663,668.66 to OAG, which will be distributed to the 71 nurses who were forced to pay the early termination penalties. ACS must also limit future financial penalties, forgive any outstanding employee debt related to the early termination fee, and remove mandatory arbitration from current and future contracts. ACS must also ensure that all workers can have an employee representative present during any future negotiations related to breach of contract.

ACS must also notify all workers of their rights under state and federal labor laws, including the Trafficking Victims Protection Act. Attorney General James is requiring ACS to work with a community-based organization to provide periodic training to employees detailing their rights under the law, as well as the measures they are entitled to as part of this settlement agreement. ACS is also required to change its contracts to eliminate unlawful non-compete clauses and to limit contract terms to 5,460 hours, inclusive of overtime.

In addition, Attorney General James is requiring ACS to implement a compliance program to ensure adherence to all local, state, and federal employment laws. As part of this, ACS must designate a compliance officer who will regularly report back to OAG on the implementation of the settlement and provide periodic reports on any money ACS collects from employees with detailed reasoning. ACS must also notify OAG of any complaints from nurses regarding implementation of the settlement agreement, or any complaints related to workplace health or safety, mandatory overtime, rest time, meal breaks, illegal discrimination, and sick leave. If there are any disputes with workers related to breach or termination of contracts, ACS must also report that to OAG.

Missouri Man Pleads Guilty to Multimillion-Dollar Medicare Fraud Conspiracy

 

A Missouri man pleaded guilty to orchestrating a scheme to defraud Medicare by unlawfully billing millions of dollars in claims for cancer genetic testing and cardiovascular genetic testing. 

According to court documents, Jamie P. McNamara, 49, of Kansas City, operated several laboratories in Louisiana and Texas, which obtained doctors’ orders for genetic testing from telemarketers and call centers that used aggressive telemarketing campaigns to induce Medicare beneficiaries to agree to receive genetic testing. Orders for genetic testing were signed by purported telemedicine doctors who were not the beneficiaries’ treating physicians, did not perform consultations with the beneficiaries, and did not follow up with the beneficiaries after the testing was performed. To obtain the orders, McNamara paid illegal kickbacks and bribes, which he disguised through sham contracts. In furtherance of the scheme, he also shifted the billing between his laboratories to evade scrutiny from Medicare and law enforcement and concealed his ownership and control of the laboratories by falsely listing the names of his family members as owners and company representatives on Medicare and other documents. In approximately one and a half years, the laboratories operated by McNamara submitted over $174 million in claims to Medicare for genetic testing and received over $55 million in reimbursements. The government previously seized several luxury vehicles and over $7 million in bank accounts.

“The defendant used illegal payments and lies to fraudulently bill Medicare over $174 million,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Health care fraud harms patients, drains government resources, and violates the public trust. The Criminal Division is fully committed to uncovering and aggressively prosecuting these schemes.”    

“This guilty plea marks the conclusion of a meticulous and complicated prosecution,” said Acting U.S. Attorney Michael M. Simpson for the Eastern District of Louisiana. “Medicare fraud schemes profoundly erode taxpayer confidence and faith in our medical institutions. Schemes such as these must be rooted out, investigated and prosecuted, not only for the monetary loss triggered by the fraud, but also to preserve the public’s trust. Our office, along with our investigative partners, will continue to work diligently to maintain taxpayer confidence in our federal institutions and seek justice for all victims of fraud.”

“McNamara lined his pockets by preying on vulnerable Americans concerned about their health. The genetic tests Medicare patients were lured into receiving did not provide them with any answers on their predisposition to life threatening illnesses and cost taxpayers millions of dollars,” said Special Agent in Charge Jonathan Tapp of the FBI New Orleans Field Office. “Today's plea is the culmination of thorough investigative work and partnership between the FBI and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) to protect the public and ensure that justice is served.”

“Misleading patients with fraudulent genetic testing schemes to exploit the Medicare program is not just unethical — it’s criminal,” said Deputy Inspector General for Investigations Christian J. Schrank of HHS-OIG. “This plea reflects HHS-OIG’s steadfast commitment to holding those who deceive patients and seek to cripple the integrity of our nation’s federal health care programs accountable. We will continue to collaborate with our law enforcement partners to investigate such schemes and bring those responsible to justice.”

While on pretrial release, McNamara violated his bond conditions by, among other things, fleeing from a DUI arrest and cutting off an ankle monitor. He was subsequently detained.

McNamara pleaded guilty to conspiracy to commit health care fraud. He is scheduled to be sentenced on Sept. 9 and faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

HHS-OIG and the FBI are investigating the case.

Assistant Chief Justin M. Woodard and Trial Attorney Kelly Z. Walters of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nicholas Moses for the Eastern District of Louisiana are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

USDA Employee And Five Others Charged In Multimillion-Dollar Food Stamp Fraud And Bribery Scheme

 

Perry Carbone, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515; Charmeka Parker, the Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG”); 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 a Superseding Indictment charging six individuals in connection with a sprawling fraud and bribery scheme that generated over $66 million in unauthorized transactions under the Supplemental Nutrition Assistance Program (“SNAP”)—colloquially known as food stamps.  This is one of the largest food stamp frauds in U.S. history. The defendants—MICHAEL KEHOE, MOHAMAD NAWAFLEH, OMAR ALRAWASHDEH, GAMAL OBAID, EMAD ALRAWASHDEH, and ARLASA DAVIS—are charged with conspiracy to steal government funds and to misappropriate U.S. Department of Agriculture (“USDA”) benefits, among other charges.  DAVIS, a USDA employee, is additionally charged with bribery and honest services fraud.  The case is assigned to U.S. District Judge Jed S. Rakoff. 

“Michael Kehoe and his co-conspirators misappropriated tens of millions of dollars in taxpayer funds meant to help low-income families put food on the table,” said U.S. Attorney Perry Carbone.  “This fraud was made possible when USDA employee Arlasa Davis betrayed the public trust by selling confidential government information to the very criminals she was supposed to catch.  Their actions undermined a program that vulnerable New Yorkers depend on for basic nutrition.  These charges should be a reminder that those who exploit anti-poverty programs for personal gain will be held accountable for their crimes.” 

USDA-OIG Special Agent in Charge Charmeka Parker said: “We appreciate the collaboration with our law enforcement partners in pursuing allegations regarding government employees, who use their positions to participate in schemes that exploit taxpayer funded programs.”

FBI Assistant Director in Charge Christopher G. Raia said: “Arlasa Davis, a USDA employee, is alleged to have abused her position and privileged access to confidential government databases to assist her co-conspirators in exploiting the SNAP program, driving tens of millions of dollars in fraudulent transactions.  This alleged scheme benefited the defendants while undermining critical safeguards designed to ensure that SNAP assistance reaches only eligible families in need.  The FBI will never tolerate any individual who exploits federal financial assistance for personal reward.”

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial: [1]

The SNAP program uses federal tax dollars to help low-income households purchase food.  SNAP recipients use Electronic Benefit Transfer (“EBT”) cards—similar to debit cards—to buy food at participating stores. Those stores, which get license numbers from the USDA, use special EBT terminals to swipe the EBT cards.  When a SNAP recipient swipes their EBT card, the system verifies the transaction and electronically deducts the purchase amount from the recipient’s account.  The corresponding federal funds are then transferred to the store’s bank account.

Starting in 2019, KEHOE orchestrated a network that supplied approximately 160 unauthorized EBT terminals to stores across the New York area to illegally process more than $30 million in EBT transactions.  Working with his codefendants NAWAFLEH, OMAR ALRAWASHDEH, OBAID, and EMAD ALRAWASHDEH, KEHOE submitted approximately 200 fraudulent USDA applications, misappropriating USDA license numbers and, in some cases, doctoring application documents, to obtain EBT terminals for unauthorized stores—including smoke shops and other ineligible businesses.

Critical to the scheme was ARLASA DAVIS, a longtime USDA employee who worked within the very division of the USDA responsible for identifying SNAP fraud.  DAVIS abused her privileged access to federal systems to sell hundreds of EBT license numbers enabling over $36 million in fraudulent SNAP redemptions at unauthorized stores.  DAVIS photographed handwritten lists of license numbers intended for qualifying stores with her personal cellphone and funneled them to an intermediary who sold them to co-conspirators, including NAWAFLEH, OMAR ALRAWASHDEH, EMAD ALRAWASHDEH, and OBAID, who then used those license numbers to fraudulently obtain EBT terminals for stores that were not authorized by the USDA to process SNAP transactions.  In return, DAVIS received substantial bribes that were disguised in communications as, among other things, “birthday gifts” and “flowers.”

KEHOE, 46, of Long Island, New York; NAWAFLEH, 34, of the Bronx, New York; OMAR ALRAWASHDEH, 37, of the Bronx, New York; OBAID, 39, of the Bronx, New York; EMAD ALRAWASHDEH, 37, of the Bronx, New York; and DAVIS, 56, of Gardiner, New York, are each charged with one count of conspiracy to steal government funds and misappropriate USDA benefits, which carries a maximum sentence of five years in prison, one count of theft of government funds, which carries a maximum sentence of 10 years in prison, and one count of misappropriation of USDA benefits, which carries a maximum sentence of 20 years in prison.  DAVIS is additionally charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, one count of bribery, which carries a maximum sentence of 15 years in prison, and one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison.  NAWAFLEH is additionally charged with one count of failure to appear, which carries a maximum sentence of 10 years in prison.

The maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Carbone praised the outstanding work of the USDA and FBI, which is also assisting in the investigation.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Georgia V. Kostopoulos and Joe Zabel are in charge of the prosecution.

The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[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 described therein should be treated as an allegation.