Office of the New York State Comptroller DiNapoli - The Week: $32K in Lost Money for Sunnyside Community Services

 

$32K in Lost Money for Sunnyside Community Services

Comptroller DiNapoli recently returned over $32,000 in unclaimed funds to Sunnyside Community Services, a settlement house that provides essential resources for youth, adults, and seniors in Queens. Executive Director Judy Zangwill expressed her excitement over the unexpected financial boost, noting that the funds will be used to fill critical gaps in their community programs.

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Comptroller DiNapoli and AG James Announce Takedown of $9 Million Medicaid Fraud Scheme in New York City

Comptroller DiNapoli and New York Attorney General Letitia James announced the indictment and arrest of a New York City man for operating eye care clinics throughout the city that allegedly stole more than $9 million from Medicaid for eye surgeries that never happened. 

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Group Home Employees Charged with Stealing Over $47K from Residents with Disabilities

Comptroller DiNapoli and Westchester County District Attorney Susan Cacace announced that two group home employees have been charged in connection with an alleged scheme to make personal purchases using the banking information of group home residents with disabilities.

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Long Island Woman Arrested for Stealing Deceased Father's NYS Pension and Medicare Benefits

Comptroller DiNapoli and Nassau County District Attorney Anne T. Donnelly announced the arrest of an Oceanside woman for taking $78,157 in pension payments and $4,047 in Medicare checks sent to her deceased father.

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Former President of Local Historical Society Pleads Guilty to Stealing Over $62K from Non-Profit

Comptroller DiNapoli, Orleans County District Attorney Susan M. Howard and New York State Police Superintendent Steven G. James announced that the former president of the Clarendon Historical Society pleaded guilty to a felony for stealing over $62,000 from the non-profit and will pay full restitution.

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This Week in Pictures

M U N I C I P A L   A U D I T S

• Village of Whitehall – Records and Reports
• Town of Lewis – Transparency of Fiscal Activities
• Town of Union – Transparency of Fiscal Activities
• Town of Schuyler Falls – Host Fee Payments
• Theresa Fire District – Audit Follow-Up
• Fine Fire District – Board Oversight
• Town of Tompkins Fire District – Audit Follow-Up

A L S O  I N  T H E  N E W S

• Investors in Public Companies Are Losing Their Voting Rights
• Retail ‘Reward for failure’: Investor support for Target Chair Brian Cornell falls to lowest level ever
• Westchester Group Home Employees Used Residents' Bank Info To Make Amazon Purchases
• EyePic Executive charged with 15 counts of Medicaid fraud
• Long Island Woman Arrested for Stealing Deceased Father's NYS Pension and Medicare Benefits

P O S T   O F   T H E   W E E K

Permits Filed for 2201 University Avenue in University Heights, The Bronx

 

Permits have been filed for a four-story residential building at 2201 University Avenue in University Heights, The Bronx. Located between West 183rd Street and West 181st Street, the lot is near the 183rd Street subway station, served by the 4 train. Aurel Sterkaj of Gotham Construction Group Inc. is listed as the owner behind the applications.

The proposed 38-foot-tall development will yield 9,788 square feet designated for residential space. The building will have 14 residences, most likely rentals based on the average unit scope of 699 square feet. The masonry-based structure will also have a 35-foot-long rear yard.

Mohammad Badaly of Badaly Architects is listed as the architect of record.

Demolition permits have not been filed yet. An estimated completion date has not been announced.

Recidivist Fraudster Pleads Guilty For Stealing Gustave Courbet Painting

 

United States Attorney for the Southern District of New York, Jay Clayton, announced that THOMAS DOYLE, a/k/a “AJ” or “Austin Doyle,” pled guilty to wire fraud in connection with a scheme by DOYLE to defraud the owner of the painting “Mother and Child on a Hammock” by the 19th-century French Realist painter Gustave Courbet.  DOYLE was previously convicted in the Southern District of New York in 2011 of a separate art-related fraud.  DOYLE pled guilty before U.S. District Judge Arun Subramanian and is scheduled to be sentenced on November 9, 2026.  

“Thomas Doyle defrauded the owner of a valuable painting by telling a series of brazen lies to get the painting and then sell it so he could keep the profits for himself,” said U.S. Attorney Jay Clayton. “This guilty plea reflects the commitment of this Office and its law enforcement partners to hold all fraudsters accountable, including bad actors seeking to conduct fraud schemes in the U.S. art market.” 

According to the Indictment, plea agreement, and statements made in public court proceedings:

Between December 2022 and March 2025, DOYLE defrauded an art dealer (“Victim-1”) in connection with the sale of the painting “Mother and Child on a Hammock” (the “Hammock”) by Gustave Courbet.  In June 2024, Victim-1 agreed to let DOYLE take custody of the Hammock to facilitate its viewing by a potential buyer.  Soon after, DOYLE told Victim-1 that he had a potential buyer for the Hammock, and Victim-1 authorized DOYLE to sell the painting on his behalf for $550,000.  By early August 2024, DOYLE falsely informed Victim-1 that he had sold the Hammock for that price. 

Instead, DOYLE’s associate (“Associate-1”), acting on DOYLE’s behalf, offered the Hammock for consignment to a Manhattan gallery (“Gallery-1”).  DOYLE provided Associate-1 with a false provenance for the Hammock that was passed on to Gallery-1.  Gallery-1 sold the Hammock on October 1, 2024, for $125,000 to an art collector, and most of the proceeds from the sale went to DOYLE.  

DOYLE never remitted to Victim-1 any proceeds from the sale of the Hammock.  Instead, by February 2025, DOYLE had spent all the proceeds from the sale of the Hammock on personal expenses and his own debts.  DOYLE subsequently falsely blamed his failure to pay Victim-1 on the purported buyer, fraudulently claiming the buyer had yet to pay when in fact DOYLE had been paid and was spending the proceeds of the Hammock sale. 

DOYLE, 68, of Connecticut, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.  DOYLE also agreed to forfeit all proceeds from the offense and pay $125,000 in restitution to the victim.  

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation’s Art Crime Team. 

Chicago Man Arrested in Connection with Planned Violent Attack at Ultimate Fighting Championship Event at White House

 

A Chicago man has been arrested in connection with the planned violent attack at the Ultimate Fighting Championship (UFC) event at the White House earlier this month.

Alexander Iniguez Mercado, 20, of Chicago, was allegedly an administrator and member of Signal messaging groups that included members who appeared to communicate with others regarding the planning of a violent attack targeting the UFC event at the White House on June 14, according to an indictment in U.S. District Court for the Northern District of Illinois. Seven other individuals from multiple states have been charged in connection with the planning of the violent attack. More information about the other defendants charged as part of this investigation is here and here.

According to the indictment against Mercado, the day before the UFC event, a special agent from the FBI spoke with Mercado by telephone. The agent informed Mercado that he was calling to discuss online threats regarding the UFC event, and he asked whether Mercado planned to travel to Washington, D.C., to help with the attack, the indictment states. Mercado allegedly denied those plans and advised the agent that he did not want to meet with the agent. Mercado then uninstalled the Signal application on his phone, which caused the data on his phone relating to those messages to become unavailable, the indictment states.

Mercado is charged with obstruction of justice. If convicted, the maximum penalty is 20 years in prison.

“Obstructing justice in a law enforcement investigation into a planned violent domestic attack is a profoundly serious offense,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “The investigation in this case involved serious threats to public safety, including the safety of President Donald J. Trump, the 45th and 47th President of the United States of America, other members of government, as well as the many attendees and athletes who attended the event at the White House. Any obstructive conduct to interfere with this investigation undermines the integrity of the justice system as well as the rule of law. The Chicago U.S. Attorney’s Office will pursue all appropriate charges against those who act to obstruct law enforcement investigations because safeguarding the public depends on the full, unhindered pursuit of the evidence.”

“The FBI’s most important responsibility of protecting the American people means that our personnel work 24/7/365 to evaluate the ever-changing threat landscape and disrupt acts of violence before they occur,” said Special Agent in Charge Douglas S. DePodesta of the FBI’s Chicago Field Office. “Thanks to the partnerships on the FBI Chicago’s Joint Terrorism Task Force, to include the relentless work by the U.S. Secret Service, this attack was successfully foiled before any innocent people were gravely injured or killed. While the FBI will continue to use every available resource to hold accountable those who seek to terrorize our community, we urge the public to join us in this effort by immediately calling 9-1-1, 1-800-CALL-FBI, or submitting to tips.fbi.gov if they encounter any suspicious or threatening behavior, in-person or online.”

“The safety and security of the President of the United States and all those under our protection is the U.S. Secret Service’s highest priority,” said Acting Special Agent in Charge James Morley of the U.S. Secret Service (USSS) Chicago Field Office. “We approach this mission with dedication and vigilance in the current heightened threat environment. Successfully carrying out our protective mission is strengthened by strong partnerships. I want to thank the FBI for its steadfast collaboration and the U.S. Attorney’s Office of the Northern District of Illinois for its relentless pursuit of justice.”

The FBI and USSS are investigating the case.

The U.S. Attorney’s Office for the Northern District of Illinois is prosecuting the case with valuable assistance provided by the Justice Department’s National Security Division.

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

ICE Arrests Illegal Alien Sex Offender and Hit-and-Run Suspect Who Tried to Flee the Country

 

The United States Department of Homeland Security (DHS) released the following statement after U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) arrested an illegal alien with an outstanding arrest warrant for vehicular homicide in connection to a fatal hit-and-run accident.

On June 18, HSI arrested Josue David Carranza-Castellon, a criminal illegal alien from Honduras, when he attempted to flee the United States by boarding a flight at Newark International Airport due to being wanted on charges of homicide – negligent manslaughter with a vehicle. HSI coordinated his arrest with U.S. Customs and Border Protection, Newark.

The suspect: Josue David Carranza-Castellon

According to local reporting, the hit-and-run incident occurred on June 17 in Gaithersburg, Maryland. The vehicle that Carranza-Castellon was allegedly driving veered off the road onto a grassy median and struck 56-year-old Brian Roy Longaberger, who died on the scene.

The aftermath of the hit-and-run crash that killed 56-year-old Brian Roy Longaberger in Gaithersburg, Maryland

Carranza-Castellon’s criminal history also includes a prior conviction for fourth-degree sex offense and an arrest for lewd or lascivious acts with a minor.

“This criminal illegal alien tried to flee the country to avoid facing justice for his involvement in a fatal hit-and-run. This is not the first time this illegal alien broke our laws. He was previously arrested for lewd or lascivious acts with a child,” said Acting Assistant Secretary Lauren Bis. “He will face consequences for his crimes and then be swiftly removed from our country so he cannot continue to terrorize American communities. His crime spree is OVER.”

Carranza-Castellon illegally entered the United States as a minor in Texas in 2016.

Governor Hochul Announces $45.9 Million Funding Available to Develop Additional Supportive Housing Units Statewide

Tenth Round of Empire State Supportive Housing Initiative Funding To Aid New Yorkers Experiencing Homelessness

Housing Units Designated for Veterans, Individuals With Serious Mental Illness or Substance Use Disorder, Domestic Violence Survivors and Older Adults With Disabilities

Governor Kathy Hochul announced the availability of $45.9 million through the Empire State Supportive Housing Initiative or ‘ESSHI,’ which funds supportive services to help provide stable housing for New Yorkers experiencing homelessness. Funding is available to support hundreds of additional units that serve adults experiencing homelessness, survivors of domestic and gender-based violence, veterans and chronically homeless families, and individuals living with a mental illness or substance use disorder.

“For those experiencing homelessness, supportive services and a stable home can be life-changing,” Governor Hochul said. “The Empire State Supportive Housing Initiative continues to help individuals connect with support and recover from challenges in a safe environment.”

ESSHI provides operating funding for supportive service providers serving homeless veterans and their families; survivors of domestic and gender-based violence; older adults who are disabled or frail; young adults with a history of incarceration, homelessness, or foster care; chronically homeless individuals and families; individuals with intellectual or developmental disabilities; individuals reentering the community from prison; and those living with HIV or AIDS, serious mental illness or substance use disorders. The State Office of Mental Health serves as the lead procurement agency for the funding, which is dispersed by an interagency workgroup of eight state agencies serving vulnerable New Yorkers.

The FY 2027 Enacted Budget continues Governor Hochul’s FY 2026 53 percent increase in funding for the initiative, allowing projects to apply for up to $34,000 annually per unit or qualifying individual in the New York City metropolitan area, which includes all five city boroughs and Suffolk, Nassau, Westchester, Rockland and Putnam counties. Developments in other areas of the state are eligible for up to $31,000 annually per unit or qualifying individual.

This boost in funding resulted in 200 conditional awards for projects statewide — the most ever issued by the initiative — including 54 projects in New York City, 21 projects on Long Island and 126 projects in locations north of the metropolitan area. To date, New York State has committed to 11,657 safe and permanent units as part of the Empire State Supportive Housing Initiative launched in 2016.

Funding may be used for rental assistance and services to eligible target populations to ensure their housing stability. Permissible uses include rental subsidies and other occupancy costs; services or staff to identify and locate eligible individuals who need housing; primary and behavioral health services; employment and vocational training; educational assistance, parenting skills development and support; child care assistance counseling and crisis intervention; children’s services, including educational advocacy, support and counseling; and costs associated with services that help individuals and families remain stably housed.

Research has shown that permanent supportive housing reduces the demand for shelters, hospital beds, emergency rooms, prisons and jails, and has a positive effect on employment, school attendance and mental and physical wellbeing. Supportive housing projects can also positively impact neighborhoods through new construction or by rehabilitating existing buildings.

Attorney General James Shuts Down Predatory Herkimer County Vape Shop

 

Unlicensed Vape Shop That Targeted Minors Forced to Close and Stop All Business in New York State

New York Attorney General Letitia James and New York State Department of Health (DOH) Commissioner Dr. James McDonald secured a settlement shutting down Liberty Smokeland, an unlawful and unlicensed vape shop in Ilion, Herkimer County. Last year, Attorney General James and DOH sued Liberty Smokeland, G Smoke 360 Corp. (G Smoke), and owners Ali Al Shugaa and Galal Kaid for repeatedly violating state laws by selling flavored e-cigarettes, including to minors, and operating an unlicensed vape shop. In March, Attorney General James obtained a default judgment against G Smoke and Kaid, requiring them to cease all operations at their store and prohibiting them from selling, marketing, or distributing vape products in New York. Today, Attorney General James and Commissioner McDonald reached a settlement with the remaining defendants that requires Liberty Smokeland to close its Herkimer County store and permanently bans Al Shugaa from selling, marketing, distributing, or otherwise participating in the sale of any vape or tobacco products in New York.

“Liberty Smokeland repeatedly broke the law, sold dangerous products to minors, and blatantly ignored repeated efforts toward accountability,” said Attorney General James. “This settlement ensures that these defendants can never again profit from putting addictive products in the hands of children. My office will continue to crack down on illegal vape sellers and protect young New Yorkers from this growing public health threat.”

“We are proud to work with partners like Attorney General James to hold those accountable who violate the laws made to protect the health of our children,” said Commissioner McDonald. “E-cigarettes and vapor products have alarming consequences for adolescents including addiction and damage to their developing brain and lungs. This settlement is a direct result of New York state’s dedication to decreasing vaping and should serve as a clear sign to others that this illegal behavior will not be tolerated.”

In January 2025, Attorney General James and DOH sued Liberty Smokeland and G Smoke after a DOH investigation found that they had repeatedly engaged in illegal activities at a retail location in Ilion, Herkimer County, including the sale of illegal flavored vapes, failure to verify the ages of customers, and several additional violations of New York Public Health Law. In several instances, the store sold flavored vapes to minors without requesting any proof of age. In one case, the store sold a strawberry mango-flavored vape to a minor even after the minor indicated they did not have an ID. Inspections also revealed that flavored vapor products, including more than 5,700 packages, were openly displayed for sale on counters and in self-service bins in blatant violation of public health laws.  

Despite repeated enforcement actions and a $285,700 penalty issued by DOH in January 2024, G Smoke and Liberty Smokeland continued to operate illegally and violate state law. When DOH investigators returned in May and August of 2024, they found that the store had remained a hub for the illegal sale of flavored vapes commonly marketed to and used by young people. It is illegal to sell flavored vapor products containing nicotine at retail stores in New York, and it is illegal to sell any vapor products to individuals under the age of 21. The store sold vapor products without a valid license, another violation of New York law.

The widespread availability of e-cigarettes and vapor products poses significant public health challenges, with particularly alarming consequences for youth. According to DOH and data from the U.S. Centers for Disease Control and Prevention (CDC), youth and young adults are the primary users of e-cigarettes, and e-cigarettes are the most commonly used tobacco product by high school students in New York state. Data from the 2024 New York Youth Tobacco Survey showed that 13.1 percent of high school youth use e-cigarettes. Flavorings in tobacco products make them even more appealing to youth. According to the CDC, youth use of tobacco products in any form is unsafe.  

The settlement and the earlier default judgment ensure that G Smoke, Liberty Smokeland, and their owners will no longer be able to skirt state law and sell vape products to minors. Attorney General James is requiring the defendants to cease all operations at the Herkimer County store within 20 days and immediately begin the formal process of permanently closing the location. The settlement also bans Al Shugaa from applying for or obtaining a license to sell tobacco or vape products in New York or owning any business engaged in the sale, distribution, or marketing of tobacco or vape products. If Liberty Smokeland or Al Shugaa fail to comply with any terms of the settlement agreement, they will have to pay an additional fine of over $100,000 and could be subject to further legal action.

North Kansas City Man Charged with Drug Trafficking and Firearms Offenses

 

A North Kansas City, Mo., man has been charged by criminal complaint for distribution and possession with intent to distribute methamphetamine and cocaine, possession of firearms in furtherance of a drug trafficking crime, and possession of firearms by a felon.

Danny D. Garrett, Jr., 46, appeared in federal court on a nine-count complaint.

According to court documents, Garrett distributed methamphetamine and cocaine on multiple occasions from May through June of 2026. On June 24, 2026, law enforcement served a federal search warrant at Garrett’s apartment and seized an additional 4.42 kilograms of methamphetamine, 323 grams of cocaine, and three firearms.

The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case was investigated by the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Kansas City Mo Police Department, with the assistance of North Kansas City Police Department and Olathe Police Department. It is being prosecuted by Assistant U.S. Attorneys Kelly Collins and Heather Siegele.

Homeland Security Task Force

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Kansas City comprises agents and officers from the Federal Bureau of Investigation, the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, the United States Marshals Service, the United States Postal Inspection Service, and the Internal Revenue Service – Criminal Investigation Division with the prosecution being led by the United States Attorney’s Office for the Western District of Missouri.