Former CFO Charged And Pleads Guilty To Defrauding Hedge Fund Of More Than $3 Million

 

United States Attorney for the Southern District of New York, Jamie McDonald, and Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the filing of an Information charging THEODORE WOO, the former CFO of a hedge fund, with securities fraud. The charge results from WOO’s yearslong scheme to steal from the fund by submitting and approving falsified invoices, causing the fund to transfer money directly into accounts controlled by WOO, and incurring unauthorized personal expenses on credit cards paid by the fund. WOO pled guilty today before U.S. Magistrate Judge Valerie Figueredo and is scheduled to be sentenced by U.S. District Judge Lewis A. Kaplan on November 18, 2026. 

“For years, Theodore Woo flagrantly abused his position of trust and brazenly stole from his employer to line his own pockets,” said U.S. Attorney Jamie McDonald.  “To do so, Woo took advantage of his position as CFO, misled his employer, and falsified documents. Lies and deception are not worth the risk of criminal prosecution.  Today’s charge and plea are indicative of this Office’s commitment to holding C-suite executives accountable when they engage in fraud.” 

“Woo’s arrest shows that greed and deceptive tactics do not pay,” said USPIS Inspector in Charge Ketty Larco-Ward.  “For years Woo allegedly cheated this company out of millions and used this money as his own personal piggy bank.  The United States Postal Service will continue to investigate and prosecute this type of illegal activity, as we seek to protect the public from financial fraudsters.”

According to the Information: 

Beginning shortly after he began working for the fund and continuing until his termination in March 2026, WOO embezzled millions of dollars from the fund through a series of fraudulent transactions, including making millions of dollars in fraudulent payments to entities controlled by WOO and spending thousands of dollars on unauthorized personal expenses using credit cards paid by the fund. 

As the CFO, WOO handled back-office tasks for the fund and had the authority to authorize the fund’s administrator to process reimbursement requests.  In that capacity, WOO instructed the fund administrator to make millions of dollars in payments to two entities, TWDRR LLC and MGTW LLC, for claimed “Research Consulting Services.”  WOO also sent invoices from those two entities that falsely represented that they had rendered services for the fund.  In actuality, WOO controlled both entities, and neither entity had performed any service for the fund.  To further conceal his theft, WOO falsely claimed to the fund’s external auditor that MGTW LLC was an independent research consulting firm engaged by the fund to develop short investment ideas on a project-by-project basis.

WOO also had the authority to effectuate transfers of cash from the fund to third parties, as the CFO.  Over the course of his employment with the fund, WOO caused over 100 fraudulent transfers from the fund to a corporate entity controlled by WOO and to bank accounts in WOO’s name.

Finally, while serving as CFO, WOO opened and controlled multiple credit cards in the name of the fund, and charged unauthorized personal expenses to those cards, including thousands of dollars in charges to adult entertainment establishments and international vacations.

WOO, 49, of Miami, Florida, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. 

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. McDonald thanked the USPIS for its outstanding work.  Mr. McDonald also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.    

Attorney General James Secures More Than $700,000 from Private Equity Firm That Abandoned Hudson Yards Condo Building

 

SME Capital Ventures Must Fix Longstanding Building Violations and Turn Over Control of Condo Board to Homeowners 

New York Attorney General Letitia James today secured relief for homeowners at the 441 West 37th Street Condominium in Hudson Yards, Manhattan, after an Office of the Attorney General (OAG) investigation found that a private equity firm failed to fulfill its legal responsibilities after taking control of the building’s condominium sponsor. SME Capital Ventures (SME Capital) took control of the company that developed the condominium in October 2023 after winning a foreclosure auction on a defaulted loan. However, OAG found that the firm later denied owning the company and refused to pay the building's bills, maintain required safety inspections, or turn over control of the building to homeowners, all while collecting rent on unsold units in the building. As a result of OAG’s investigation, SME Capital and its affiliates, 441 W 37 SME, LLC and West 37th ST, LLC, must pay more than $700,000 to cover the building's unpaid bills, safety violations, and penalties, and will surrender control of the building’s board of directors to the homeowners. 

"Private equity firms do not get to pick and choose which laws apply to them," said Attorney General James. "When this company took control of a Manhattan condo building, it took on real legal responsibilities to the homeowners who lived there. For two years, SME Capital dodged those duties while still collecting rent checks. My office will keep holding these firms accountable when they put profits over of New Yorkers' safety." 

The 441 West 37th Street Condominium is a nine-unit residential building in Hudson Yards. In 2020, shortly after units first went on sale, Levi Balkany, the building’s developer and initial condo sponsor, took out a $3 million loan from SME Capital, a New York City private investment firm that specializes in acquiring distressed real estate debt and equity. Mr. Balkany pledged his ownership stake in the building as collateral. When Mr. Balkany defaulted on the $3 million loan in 2023, SME Capital obtained the collateral at a foreclosure auction where it was the only bidder, making the private equity firm the full owner of Mr. Balkany’s sponsor company and putting it in charge of the building. 

The OAG launched an investigation in 2024 after building residents lodged complaints alleging sponsor mismanagement and repeated failures by the sponsor to pay amounts due to the condominium. The OAG found that despite winning the auction, SME Capital refused to acknowledge that it owned the sponsor company or accept the responsibilities that came with it. The private equity firm stopped paying the building's monthly fees, letting the unpaid balance grow to more than $523,000. It also let the building's occupancy permit lapse, failed to notify the state that it had taken over the sponsor company as required by law, and never handed control of the building's board over to the actual homeowners. 

As a result, the individual homeowners were forced to pay out of their own pockets twice to renew the building's temporary certificate of occupancy and keep it legally allowed to operate. The owners spent $15,824 to renew the permit, most recently in June 2025. In addition, the building was cited by the New York City Fire Department (FDNY) for failing to file required paperwork on its fire safety systems, and by other city agencies for additional health and safety problems, totaling nearly $140,000 in unpaid fines. 

Homeowners were also shut out of decisions about their own building. Under the initial offering plan, the developer was supposed to hand control of the building's board over to the actual homeowners once enough units were sold, but that never happened, and the board never even held a required meeting. That left residents with no say over repairs or how the building was run. Meanwhile, the fire safety problems went unresolved, leaving residents to live with a serious safety risk while the fines kept adding up, and the building's lack of a permanent occupancy permit made it harder for owners to sell or refinance their homes. 

Despite neglecting its financial and operational responsibilities to the building — and explicitly misrepresenting to OAG and residents that it had no ownership stake in the building — SME Capital continued to reap the financial benefits of ownership. The firm actively retained multiple real estate brokers to try to sell the remaining condos. Ultimately, SME Capital elected to lease the unsold units, renting out the penthouse for $12,000 a month and another unit for $10,000 a month. It also retained a management company to collect rent and common charges from residents. 

The OAG investigation determined that SME Capital violated the Martin Act, the state law that regulates the sale of condominiums and requires sponsors to keep the public informed and follow through on their obligations to homeowners. The OAG also found the companies violated state laws prohibiting repeated illegal business conduct. 

Under the terms of the settlement, SME Capital must pay more than $523,000 in overdue building fees, reimburse homeowners for the costs they incurred renewing the building's temporary certificate of occupancy, and obtain a permanent certificate of occupancy. The firm must also repair and certify the building's fire suppression system and pay all outstanding municipal fines and taxes associated with the building, totaling at least $139,918. In addition, SME Capital must update the condominium's offering plan to reflect the change in ownership, formally turn over control of the condominium board to homeowners, and pay a $54,000 penalty. 

Governor Hochul Announces $32 Million in Federal Funding to Strengthen Security for Nonprofits Facing High Risks of Terrorism

Funding Through the Federal Nonprofit Security Grant Program Will Help 157 At-Risk Nonprofit Organizations Strengthen Facility Security and Overall Preparedness

Governor Kathy Hochul today announced more than $32 million in federal funding to support the efforts of 157 nonprofit organizations facing an increased risk of terrorist or other extremist attacks to strengthen the security of their facilities, as well as enhance their overall preparedness. This funding, provided by the Federal Emergency Management Agency through its Nonprofit Security Grant Program, is being allocated to New York through two separate awards — $28.4 million for organizations within the New York City Metro Area and $3.6 million for organizations throughout the rest of the state. The program is administered by the New York State Division of Homeland Security and Emergency Services.

“The Nonprofit Security Grant Program is a critical part of our strategy to thwart domestic terrorism in New York State,” Governor Hochul said. “No matter where we gather, we have the right to peaceful and respectful assembly without fear of violence or vitriol. This effort requires no less than the full partnership of those who are involved in creating a safer environment for all those who live, work and visit our great state.”

Division of Homeland Security and Emergency Services Commissioner Terry O’Leary said, “New York's non-profits play a vital role in communities all across our state and this funding will help them safeguard their infrastructure, improve preparedness, and boost training to deter acts of terrorism and hate crimes. We will continue to work with our partners across all levels of government to prevent bad actors from causing harm and make New York a safe place for all.”

Nationwide, a total of $274.5 million is being provided through the Nonprofit Security Grant Program in FY2025. Of this amount, $137.25 million in funding was made available to nonprofit organizations located within one of the Urban Area Security Initiative (UASI)-designated high-risk urban areas. The remaining $137.25 million was reserved for jurisdictions outside of the UASI-designated areas. In New York, the state’s UASI-designated high-risk urban area is the New York City Metro Area. Specifically, this consists of New York City, as well as Westchester, Nassau and Suffolk Counties.

Allowable costs include planning such as security risk management, continuity of operations and response plans; equipment, including physical security enhancement and inspection/screening systems equipment; active shooter training and security training for employees or congregation members; response exercises and contracted security personnel.

Mamdani Administration Financed More Than 12,000 Affordable Homes in First Six Months in Office

 

Nearly 10,000 New Yorkers connected to affordable housing from January through June 2026  

  

Administration working to scale up investment, speed permitting and accelerate lease-ups  

Today, Mayor Zohran Kwame Mamdani and Deputy Mayor for Housing and Planning Leila Bozorg announced that the City financed the creation and preservation of 12,491 affordable homes in the first six months of 2026, including more than 2,000 homes for formerly homeless New Yorkers.  

  

More than half of the homes will serve extremely and very low-income New Yorkers earning less than 50% of the area median income (AMI) – or less than roughly $68,000 annually for a two-person household. During the same period, the Mamdani administration connected 9,970 New Yorkers, including 4,370 formerly homeless people, to affordable housing.  

  

These accomplishments, from the second half of fiscal year 2026, come as Mayor Mamdani is making a historic $22 billion capital investment in affordable housing over five years as part of his first budget as mayor. As part of its comprehensive Block by Block housing plan, the Mamdani administration is deploying innovative financing tools to help develop affordable homes more efficiently. The administration has also proposed a suite of “SPEED” reforms to cut up to two years from the pre-development, permitting and lease-up processes for affordable housing.  

  

“Affordable housing is a lifeline for millions of New Yorkers, and we made it our responsibility to meet the housing crisis with the scale and urgency it demands. In just our first six months, we financed more than 12,000 affordable homes,” said Mayor Mamdani. “And with a historic $22 billion investment over five years, we are just getting started. We are going to build more, preserve more and move more New Yorkers into homes faster than ever before.”  

  

“We are making historic investments and cutting through red tape to deliver the housing relief that New Yorkers need, more quickly. In our first six months in office, we have already taken important steps to finance affordable housing, permit new construction and help New Yorkers move into affordable homes more quickly, and we will scale up this work in the years to come,” said Leila Bozorg, Deputy Mayor for Housing and Planning.  

  

NYCHA investments  

At public housing properties, NYCHA completed 32 capital projects between January and June 2026, covering 29 developments and benefiting more than 50,000 residents. The projects included heating, elevator, roof, facade, waste management and community center improvements.   

  

The administration also financed the preservation of more than 900 NYCHA apartments through the Permanent Affordability Commitment Together (PACT) program during the first six months of the year.  

  

Investments across the housing system  

The affordable homes financed during the first six months of 2026 include:  

•    1,428 affordable homes for seniors  

•    1,287 units of supportive housing  

•   Preservation financing for 1,198 apartments in Mitchell-Lama developments  

  

“In our first 6 months, we are already off to a running start. With new initiatives like SPEED and LIFT, we’re building more affordable housing faster than ever. This year, we’re building 50% more homeownership units and 40% more senior and supportive housing units than over the last 4 years,” said Department of Housing Preservation and Development (HPD) Commissioner Dina Levy. “But our work is just getting started. We are ramping up to deliver an unprecedented amount of housing, including a record 200,000 affordable homes over the next decade. New Yorkers are struggling with high housing costs — and bringing them down is this administration’s top priority.”  

  

“Today’s production announcement reflects our shared commitment to addressing the housing crisis with urgency and at scale,” said New York City Housing Development Corporation (HDC) President Eric Enderlin. “HDC is proud to continue this important work with the Administration, and our colleagues at HPD and NYCHA, to build and preserve affordable and public housing, expand opportunities for our most vulnerable residents and help more New Yorkers access safe, stable and affordable homes.”  

  

“The Mamdani administration has made it clear that housing is a top priority, and we are grateful for their commitment to ensuring NYCHA residents are at the center of that work,” said NYCHA Chief Executive Officer Lisa Bova-Hiatt. “Through meaningful investment in both new affordable housing opportunities and the preservation of our existing housing stock, together we are strengthening NYCHA communities across the city. This critical work protects and improves the homes New Yorkers depend on today and positions NYCHA to remain a cornerstone of affordable housing in New York City for generations to come.”  

Strong and Safe New York - NEWS: NEW AD SUPPORTING BLAKEMAN

 

"Kathy Hochul, the worst governor in America, told New Yorkers to get outta town and now she's begging them to come back and pay for the mess she made."

Today, Strong and Safe New York, a Super PAC supporting Nassau County Executive Bruce Blakeman for Governor, released the latest in a series of ads shining a light on how Governor Kathy Hochul's policies are making New York more expensive for everyone. The 30s ad, "Get Outta Town," will be running statewide.

Strong and Safe New York Spokesman Chapin Fay said, "Kathy Hochul is the worst governor in America. She chased New Yorkers out of this state and now she wants them back just to help pay for the mess she made. She's taxed us out, priced us out, and let our streets go lawless while everyday New Yorkers pick up the tab. Enough. Vote her out. Vote Bruce Blakeman."

You can view the ad by clicking the image below; full transcript follows.

"Get Outta Town"

30s

VO: Just a few short years ago, Kathy Hochul told us all to...

Hochul: “jump on a bus and head down to Florida where you belong. Get outta town!”

VO: So New Yorkers left by the tens of thousands.

Now she says...

Hochul: “our tax base has been eroded. Maybe the first step should be go down to Palm Beach and see who we can bring back home.”

VO: Why would they come back?

For higher taxes?

Higher utilities?

Enough is enough.

Bruce Blakeman will lower taxes and make New York State affordable again. 

Bruce Blakeman for Governor."

For more information click here.

COIB Announces Fines for Late Filers of 2024 Annual Disclosure Reports

 

During 2025, approximately 9,000 public servants were required by the City’s Annual Disclosure Law to file a report with the New York City Conflicts of Interest Board (the “Board”) disclosing certain financial interests and positions held during calendar year 2024. Under this law, a public servant who files their report more than seven days after the filing deadline is subject to a fine starting at $250. See New York City Administrative Code Section 12-110(g)(1) and Board Rules Section 4-07.

 

Of the approximately 9,000 public servants required to file, 106 filed late and were sent a Late Filer Notice instructing them to either pay a fine (based on how late they filed and whether they filed late before) or submit a written response explaining why they filed late.

 

Of the 106 late filers:

 

• 42 paid their fine immediately.

• The fines ranged from $250 to $3,000, for a total of $25,750 in fines.

 

• 57 submitted a written response, which the Board considered.
• For 14, the Board issued confidential orders not imposing a fine.
• For 43, the Board issued public orders imposing a fine.
• The fines ranged from $250 to $2,500, for a total of $20,500 in fines.

 

• 7 did not submit a written response or pay their fine.
• For 7, the Board issued public orders imposing a fine.
• The fines ranged from $250 to $1,250, for a total of $5,250 in fines.

 

To date, the Board has collected $44,750 of the $51,500 in fines owed by late filers of 2024 annual disclosure reports. For the remaining $6,750 owed by 8 public servants, the Board intends to pursue all available remedies, including the garnishment of City wages or referral to outside counsel for collection.

JOINT STATEMENT FROM MAYOR'S OFFICE FOR INTERNATIONAL AFFAIRS AND MAYOR’S OFFICE OF IMMIGRANT AFFAIRS ON EARTHQUAKE IN COLOMBIA

 

Today, New York City Mayor's Office for International Affairs Commissioner Ana María Archila and Mayor's Office of Immigrant Affairs Commissioner Faiza N. Ali released the following joint statement in response to the deadly earthquake that struck on Aug. 10, impacting Colombia.

“Our hearts are with New Yorkers who have lost loved ones, are searching for missing relatives and friends, and are navigating the aftermath of Monday’s devastating earthquake. Though the disaster zone is thousands of miles away, we know this tragedy hits home for New York City’s Colombian communities, who are anxiously waiting to hear whether their loved ones are safe during this difficult time. 

“As we learn more about the full impact of this tragedy, our offices will coordinate with partners and connect New Yorkers with resources. We will continue to support New Yorkers who are searching for their parents, children, siblings and other loved ones in the coming weeks.

“We encourage New Yorkers to donate to trusted relief efforts, check in on friends and loved ones and support their neighbors in this trying time. Solidarity is what gets us through the worst of times, and as New Yorkers, we know that in our darkest moments, it is the care we show one another that pulls us through.”

For those seeking assistance or information

To conduct family tracing and emergency assistance:

• Contact the Colombian Red Cross, which can guide you through its Family Ties Protection Program. If you have questions, email rcf@cruzrojacolombiana.org or contact the Colombian Red Cross via WhatsApp at (+57) 321-213-9525.
• Begin a search through the American Red Cross by submitting an International Reconnecting Families Inquiry Form. If you have questions about the form or Restoring Family Links services, please call American Red Cross’ free national helpline at 844-782-9441. 
• Para iniciar una busqueda, complete el formulario. Si tiene preguntas sobre el formulario o sobre los servicios de Restablecimiento de Contacto Familiar, por favor llame a la línea de ayuda nacional gratuita de la Cruz Roja Americana al 844-782-9441.

To support relief efforts:

• Those wishing to help those affected by the earthquakes can donate through trusted humanitarian organizations, including:
• Colombian Red Cross

New York State to Host Public Hearing on Child Poverty August 18, in Albany

 

New York State’s Child Poverty Reduction Advisory Council (CPRAC) will hold a public hearing on Tuesday, August 18, at 6 p.m., at The Love Albany Center, 8 Kate Street, Albany.

The public hearing will provide an opportunity for CPRAC to present on its anti-poverty efforts to date and hear directly from New Yorkers about the expenses they face as well as the kinds of interventions that would help them most.

New Yorkers interested in attending can register here: https://secure.everyaction.com/Trs7PnvU80Gp6qEBUBFy8w2

Attendees are invited to offer formal verbal statements and/or provide written responses at the public hearing. To provide time to comment for all attendees, speaker are asked to keep formal verbal statements to 2-3 minutes or less. Attendees will also receive a feedback sheet that they can use to provide written responses.

At the hearing, food will be provided and Spanish and ASL interpretation services will be offered. Children are welcome and children’s activities will be available.

Registration is not required to attend or offer statements but is encouraged. Registrants who provide an email address will receive a reminder email with public hearing details a few days before the event.

The Office of Temporary and Disability Assistance will provide a webcast of this meeting in real time on August 18, 2026. However, the public hearing will not have the capability to allow for virtual participation. The public hearing will be hosted by CPRAC Co-Chair and OTDA Commissioner Barbara C. Guinn, along with CPRAC Member Kate Breslin.

The statements and feedback received from New Yorkers will continue to inform CPRAC's anti-poverty efforts, including its recommendations to reduce child poverty and improve program access.

For more information and the link to view this webcast live visit: https://otda.ny.gov/news/meetings/cprac/2026-08-18/