RAY MCGUIRE CALLS ON MAYOR DE BLASIO TO IMPLEMENT WAGE SUBSIDY PROGRAM

 

McGuire Says Implementing Wage Subsidy Now Would Create 25,000 Jobs & that City Can’t Wait for January As Unemployment Stays High  Following today’s release of the New York State Department of Labor unemployment data, which showed that 11.4 percent of city residents are still out of work, Democratic mayoral candidate Ray McGuire called on Mayor Bill de Blasio to take immediate action by implementing a city-funded wage subsidy program.   This effort would get 25,000 New Yorkers back to work and lay the groundwork for McGuire’s economic recovery plan, which would start by creating a city-funded subsidy to cover 50 percent of a worker’s salary for one year. The plan would get 50,000 New Yorkers back to into the workforce and could be extended as needed, based on the rate of recovery.   “Far too many New Yorkers are still struggling to find work, even as the city reopens and many elected officials are looking beyond the pandemic,” McGuire said in Chinatown today. “These individuals cannot afford to wait until I am elected mayor and take office in January; they need help now.”   “Those out of work are predominantly New Yorkers of color, who paid a disproportionate price – both financial and physical – during the COVID crisis. The city needs to step up and deliver real results now,” McGuire continued. “A robust wage subsidy program would help tens of thousands get back to work as quickly as possible.”   McGuire made his call for a wage subsidy against the backdrop of the iconic and now permanently closed Chinatown restaurant Jing Fong, where he also embarked on a neighborhood tour with representatives of local workers.   Chinatown’s struggles are representative of the devastation facing residents and businesses in neighborhoods across the five boroughs. Minority-owned businesses like Jing Fong received just 30 percent of the funding from the Paycheck Protection Program despite their location in some of the hardest-hit communities in New York and across the country. Worse, 70 percent of all jobs lost once belonged to workers of color.   McGuire’s plan would pay for the program using American Rescue Plan funding and would continue into 2023 depending on the rate of recovery. The subsidy is part of McGuire’s overarching economic recovery plan, which is focused on a three-pronged approach to: 1) Provide a stimulus for struggling small businesses;  2) Transform the city’s approach to business; and,  3) Create jobs and address urgent infrastructure priorities through robust capital spending.

Former CEO Of Real Estate Private Equity Investment Firm Pleads Guilty To $58 Million Securities Fraud

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that ERIC MALLEY, the founder and former chief executive officer of real estate private equity investment firm MG Capital Management L.P., pled guilty today to a securities fraud scheme in which he fraudulently induced hundreds of individuals to invest a total of approximately $58 million in two real estate investment funds by, among other things, lying about his own prior experience and investment track record and about the nature and characteristics of those funds.  MALLEY pled guilty before United States District Judge Edgardo Ramos.

U.S. Attorney Audrey Strauss said:  “As Eric Malley has now admitted, he lied to his victims to induce them to invest approximately $58 million in his investment funds, promising victims they would reap the benefits of owning equity in Manhattan real estate and falsely touting his prior experience.  Those lies continued for years, all while Malley enriched himself.  As today’s plea demonstrates, our Office remains committed to protecting investors from investment professionals’ deceptive and fraudulent conduct.

According to the allegations contained in the Complaint and the Information and based on statements made in Manhattan federal court:

MALLEY founded MG Capital Management L.P. (“MG Capital”) in approximately January 2013, and served as its chief executive officer and chief investment officer from that time until approximately December 2019.  During that time, MALLEY formed two real estate investment funds (collectively, “the Funds”) – MG Capital Management Residential Fund III (“Fund III”), in approximately February 2014, and MG Capital Management Residential Fund IV (“Fund IV”), in approximately September 2017.

MALLEY promised, when soliciting investors and throughout the life of the Funds, that the Funds would provide investors with the opportunity to own an equity interest in hundreds of luxury income-producing properties across Manhattan, following a debt-free investment strategy informed by sophisticated proprietary analytics that MALLEY had developed over the course of his career in real estate.  MALLEY touted two purportedly extremely successful prior funds he had formed, Fund I and Fund II; assured investors that the Funds would be and were debt-free; and represented that the properties held by the Funds would be and were leased primarily to corporate tenants, including, among others, well known technology companies and a prominent university based in New York City.  But MALLEY’s representations were false.  His claims about the existence and performance of Funds I and II were largely fabricated; the Funds were not debt-free, but instead held mortgaged properties; the properties that made up the Funds were almost entirely leased to individual, not corporate, tenants; and the Funds held far fewer properties than MALLEY had represented.

Through these and other fraudulent misrepresentations and omissions throughout the life of the Funds, MALLEY induced approximately 335 investors to invest a total of approximately $58 million in the Funds.  The Funds together incurred millions of dollars in losses, yet MALLEY distributed at least $278,000 to himself in his capacity as general partner in connection with Fund III, and did not disclose Fund IV’s losses until approximately two years into Fund IV’s operation.

MALLEY, 50, of New Canaan, Connecticut, pled guilty to one count of securities fraud, which carries a maximum potential sentence of 20 years in prison.  The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  Sentencing has been scheduled for September 16, 2021, at 11:00 a.m. 

Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and thanked the New York Regional Office of the U.S. Securities and Exchange Commission.

Attorney General James Announces Arrest of Long Island Man for Fraudulently Obtaining Disability Benefits

 

Huntington Resident Fraudulently Collected Disability Payments

While Owning a Business and Training for Bodybuilding Competitions

 New York Attorney General Letitia James today announced the arrest of Anthony Ragusa, 50, of Huntington, NY, for fraudulently collecting more than $200,000 in disability benefits from the Social Security Administration (SSA). The Office of the Attorney General (OAG) charged that, from 2013 to 2020, Ragusa falsely represented to the New York state Office of Temporary and Disability Assistance (OTDA) that he was unable to work and perform daily activities as a result of injuries caused by a 2013 fall. While collecting disability benefits, and purportedly disabled, Ragusa was still the president and owner of White Star Limousine — where he continued to earn income — and an avid weightlifter, as displayed in numerous social media photos and videos showing him lifting heavy weights on the internet.

“Disability benefits exist to help those who need a safety net when their bodies cannot fulfill day-to-day obligations,” said Attorney General James. “While cheating the state out of thousands of dollars, Anthony Ragusa was simultaneously running a business and posing for pictures of his bodybuilding on the internet. Fraudulently collecting these benefits was not only a shameful slap in the face to those who actually live with disabilities, but a vast waste of taxpayer dollars. My office will not hesitate to pursue those who defraud our system and saddle our state with debt.”

“This arrest exemplifies the results we can deliver to taxpayers through our Cooperative Disability Investigations Program, which serves to ensure that only those who are eligible for Social Security disability benefits are able to receive them,” said Special Agent-in-Charge John F. Grasso, SSA Office of the Inspector General, New York Field Division. “I want to thank the Office of the Attorney General, SSA, and OTDA for their partnership in this vital endeavor, and the New York State Police for their assistance today.”

According to the OAG’s filings and statements made by prosecutors, Ragusa applied for disability benefits in 2013. On the application for benefits, Ragusa represented that his injuries from a fall as an electrician were so severe that he had difficulty bending over to put on shoes, walking for more than 15 minutes, and sitting for more than 30 minutes. Ragusa also stated that the pain from his injuries prevented him from working in any capacity.

Investigators from the OAG reviewed documents from the state Department of Transportation and minutes from a town hearing from 2012 show that, at the time of his fall, Ragusa was the president and owner of the White Star Limousine company in New Hyde Park, NY. Additionally, extensive video and photographic evidence from Ragusa’s wife’s Instagram account show that, beginning in 2017, Ragusa began a physical transformation into a bodybuilder. 

Additionally, from January 2015 to 2020, in hearings and written reports to determine his eligibility, Ragusa maintained his eligibility despite continuing to run a business and lift weights.

Ragusa was arraigned today before County Court Judge Stephen Ukeiley in Suffolk County to one count of Grand Larceny in the Second Degree, a class “C” felony, in violation of Penal Law §155.40, and one count of Offering a False Instrument for Filing in the First Degree, a class “E” felony, in violation of Penal Law §175.35.The charges are merely accusations and Ragusa is presumed innocent unless and until proven guilty in a court of law.

The OAG wishes to thank the Office of Temporary Disability Assistance and the Social Security Administration for their assistance in this matter and the New York State Police for their arrest of the defendant. The OAG also thanks the Social Security Administration Inspector General’s Office for leading the investigation, under the supervision of Special Agent-in-Charge John F. Grasso.

Four Defendants Charged In Coast-To-Coast Bank Fraud Conspiracy

 

Defendants Deposited Nearly $1 Million In Fraudulent Checks Between New York and California

 Audrey Strauss, the United States Attorney for the Southern District of New York, Patrick J. Freaney, Deputy Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), Philip R. Bartlett, Inspector-in-Charge of the United States Postal Inspection Service’s New York Division (“USPIS”), and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the indictment of DRAMION COOMBS, OLUFEMI NATHANIEL ITIOWE, TANZANIA HOGAN, and DEIBI SANCHEZ for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft, in connection with a scheme to order bank checks in the names of multiple victims and then fraudulently deposit those checks drawn from the victims’ accounts into accounts that the defendants controlled.  All four defendants were arrested pursuant to a complaint and presented before United States Magistrate Judges on April 20, 2021.  ITIOWE and SANCHEZ were arrested in New York, COOMBS was arrested in Pennsylvania, and HOGAN, was arrested in California. 

U.S. Attorney Audrey Strauss said:  “As alleged, Dramion Coombs, Olufemi Nathaniel Itiowe, Tanzania Hogan, and Deibi Sanchez conspired to defraud multiple banks of nearly $1 million by obtaining the identities of other people and cashing fraudulent checks from their bank accounts.  Thanks to the terrific investigative work of our law enforcement partners, these defendants are now facing prosecution for their alleged crimes.” 

Deputy Special Agent in Charge Patrick J. Freaney said:  “The U.S. Secret Service, alongside our valued partners from the New York City Police Department and the U.S. Postal Inspection Service, continue to prioritize financial fraud investigations.  In this instance, the accused allegedly utilized social engineering techniques to gain access to numerous bank accounts to make fraudulent deposits totaling nearly $1 million. This case illustrates the perils of social engineering and highlights the importance of authentication practices and procedures to better secure financial and personal information.”

Police Commissioner Dermot Shea said:  “These defendants allegedly orchestrated a nationwide cyber scheme to stalk victims and steal their money. But the United States Secret Service and the United States Postal Service, together with our NYPD detectives and the prosecutors of the United States Attorney’s Office in the Southern District of New York, meticulously tracked their digital moves to piece together this important case and ensure justice will be served.”

Inspector-In-Charge Bartlett said:  “These individuals engaged in an old school low tech check/bank fraud scam. While their scheme was unsophisticated, they managed to steal hundreds of thousands of dollars from financial institutions. Their crimes would have continued had it not been for the collaborative efforts of law enforcement.”

According to the allegations in the Indictment[1] unsealed today: 

Between at least September 2018 and November 2018, COOMBS, ITIOWE, HOGAN, and SANCHEZ executed schemes to defraud financial institutions of more than $890,000.    They did so by depositing false and fraudulent checks drawn from the accounts of at least three different New York victims into banks located in New York and California.  In addition, between at least December 2019 and July 2020, COOMBS deposited multiple additional false and fraudulent checks into his own bank account and deposited checks into a separate bank account that he opened in the name of another individual.

COOMBS, 37, of East Stroudsburg, Pennsylvania, is charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, two counts of bank fraud, which each carry a maximum sentence of 30 years in prison, and two counts of aggravated identity theft, which each carry mandatory minimum sentence of two years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

ITIOWE, 47, of Brooklyn, New York, HOGAN, 47, of Canoga Park, California, and SANCHEZ, 48, of Bronx, New York, are charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, one count of bank fraud, which carries a maximum sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Ms. Strauss praised the United States Secret Service, New York City Police Department, and United States Postal Inspection Service for their outstanding investigative work. 

The charges in the Indictment are merely accusations and the defendants are 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 should be treated as an allegation.

Governor Cuomo Announces More Than 18 Million COVID-19 Vaccine Doses Have Been Administered in New York State

 

63% of Adult New Yorkers and 51% of All New Yorkers Have Received at Least One Dose

54% of Adult New Yorkers and 43% of All New Yorkers Have Completed Series

More Than 100,000 New Yorkers Ages 12 to 15 Have Received at Least One Dose since Becoming Eligible Earlier This Month

170,343 Doses Administered in the Last 24 Hours     

858,895 Doses Administered Over Past Seven Days   

Vaccine Dashboard Updated Daily on the State's Vaccine Program Here

 Governor Andrew M. Cuomo today announced more than 18 million COVID-19 vaccine doses have been administered in New York State. 170,343 doses have been administered across the state's vast distribution network in the last 24 hours, and 858,895 doses have been administered statewide over the past seven days.     

"Thanks to the hard work of our providers across the state, we have surpassed yet another milestone in our vaccination efforts, which is great news and a testament to the efficiency of our robust distribution network," Governor Cuomo said. "At the same time, we have troubling news because the number of vaccinations is slowing dramatically. This is no time to get lax, and what we do today often determines what tomorrow looks like. If we want to defeat this virus and build back better, we all need to roll up our sleeve and take this vaccine."  

All New York State mass vaccination sites are now open to eligible New Yorkers for walk-in vaccination on a first come first serve basis. The walk-in appointments are reserved for first doses only with second doses to be scheduled automatically after administration of the initial shot. In addition, all vaccine providers are encouraged to allow walk-in appointments for eligible New Yorkers. People who would prefer to schedule an appointment at a state-run mass vaccination site can do so on the Am I Eligible App or by calling 1-833-NYS-4-VAX. People may also contact their local health department, pharmacy, doctor or hospital to schedule appointments where vaccines are available, or visit vaccines.gov to find information on vaccine appointments near them.                                        

STATEWIDE BREAKDOWN

Total doses administered - 18,025,115

Total doses administered over past 24 hours - 170,343 

Total doses administered over past 7 days - 858,895

Percent of New Yorkers ages 18 and older with at least one vaccine dose - 62.7%

Percent of New Yorkers ages 18 and older with completed vaccine series - 53.5%

Percent of all New Yorkers with at least one vaccine dose - 51.0%

Percent of all New Yorkers with completed vaccine series - 42.9% 

Cardiologist Sentenced To Prison For Decade-Long Health Care Fraud Scheme

Asim Hameedi Provided False Patient Medical Information and Used Identities of Doctors Who Did Not Work at the Clinic to Submit Fraudulent Health Care Claims 

 Ilan T. Graff, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced today that cardiologist ASIM HAMEEDI was sentenced to 20 months in prison for orchestrating a widespread healthcare fraud scheme from approximately 2003 to 2015.  HAMEEDI owned a Queens, New York, medical clinic, City Medical Associates (“CMA”), through which he perpetrated a fraud scheme involving, among other things, fraudulent reimbursement claims and false representations to insurers regarding medical tests and procedures.  HAMEEDI previously pled guilty to conspiracy to commit health care fraud before U.S. District Judge John G. Koeltl, who imposed today’s sentence.

Mr. Graff said:  “Doctors and medical clinics should be focused on their patients’ wellbeing, not on fraudulently lining their own pockets.  Thanks to the dogged investigative work of our partners at the FBI, HHS, and NYPD, Asim Hameedi is headed to prison for defrauding Medicare, Medicaid, and private health insurance companies.”

According to the Indictment, other court filings, and statements made in public court proceedings:

CMA, a cardiology and neurology clinic based in Bayside, Queens, conducted a multifaceted scheme spanning approximately 12 years and involving millions of dollars in falsified claims.  HAMEEDI, a board-certified interventional cardiologist, was CMA’s president and owner.  As HAMEEDI has acknowledged, he was a leader of this long-running, wide-ranging fraud scheme, which involved various co-conspirators and several codefendants. 

HAMEEDI’s healthcare fraud scheme included, among other things: (1) making false representations to insurance providers about patients’ symptoms in order to obtain preauthorization for medical tests and procedures; (2) backdating bills in order to create the false impression that medical procedures had not been performed until after CMA received “pre”-authorization from an insurer; (3) submitting false claims to insurance providers for parts of tests that were not performed, as well as for drug items not used or provided; (4) evading scrutiny from insurers for the large volume of claims that CMA submitted by falsely representing that several doctors – who did not work at CMA – had purportedly ordered or performed tests or procedures there; and (5) violating HIPAA by accessing, without authorization, electronic health records of patients at a particular hospital on Long Island, New York, in order to identify patients to be recruited to CMA.  Additionally, HAMEEDI tried to obstruct an investigation by hospital officials into misconduct by his nephew, codefendant Fawad Hameedi.

In addition to his prison sentence, HAMEEDI, 50, of New York, New York, was sentenced to two years of supervised release, restitution of $554,331, and a $100,000 fine.

Fawad Hameedi, 35, pled guilty on February 7, 2018, to one count of conspiracy to commit health care fraud.

Arif Hameedi, 59, pled guilty on February 6, 2018, to one count of conspiracy to commit money laundering.

Absar Haaris, 51, pled guilty on November 15, 2016, to conspiracy to commit health care fraud and wire fraud, health care fraud, false statements relating to health care matters, conspiracy to commit fraud in connection with identification information, aggravated identity theft, conspiracy to violate the anti-kickback statute, conspiracy to commit money laundering, and conspiracy to wrongfully obtain and disclose individually identifiable health information.  Haaris was previously sentenced, by the Honorable Jed S. Rakoff, principally to time served, three years of supervised release, and restitution of $544,331.51.

Michelle Landoy, 40, pled guilty on January 29, 2018, to conspiracy to commit health care fraud and wire fraud, health care fraud, wire fraud, false statements relating to health care matters, conspiracy to commit fraud in connection with identification information, and aggravated identity theft.

Desiree Scott, 41, pled guilty on February 6, 2018, to conspiracy to commit health care fraud and wire fraud, health care fraud, wire fraud, false statements relating to health care matters, conspiracy to commit fraud in connection with identification information, and aggravated identity theft.

Mr. Graff praised the outstanding investigative work of the New York Field Office of the Federal Bureau of Investigation, the New York Regional Office of the United States Department of Health and Human Services Office of the Inspector General, and the New York City Police Department.  Mr. Graff also thanked the New York State Department of Financial Services.

MAY 20, 2021- Governor Cuomo Announces Statewide COVID-19 Positivity Rate Drops below 1 Percent to Lowest Level since September 11

 

Statewide Positivity Rate Drops to 0.85%

Statewide 7-Day Average Positivity Rate Drops to 1.02%—Lowest Since September 26; 45 Straight Days of Decline

Hospitalizations Drop to 1,490—Lowest Since November 8

7-Day Average Hospitalizations Drop to 1,602—Lowest Since November 12; 49 Straight Days of Decline

ICU Patients Drop to 339—Lowest Since November 12

Intubations Drop to 208—Lowest Since November 19

18 COVID-19 Deaths in New York State Yesterday

 Governor Andrew M. Cuomo today announced the statewide COVID-19 positivity rate dropped to 0.85 percent, the lowest since September 11. 

"New York State is open--we relaxed all the rules, including the CDC guidance, and life is resuming," Governor Cuomo said. "If you look at where we are today, the numbers are really promising--our overall positivity rate is a fraction of what it is nationwide and more than half of New Yorkers are now fully vaccinated. But COVID is still not over and what we do today determines what will happen tomorrow, so I encourage New Yorkers to continue practicing all necessary safety precautions and most importantly, get vaccinated if you haven't done so already."

Today's data is summarized briefly below: 

• Test Results Reported - 186,078
• Total Positive - 1,583
• Percent Positive - 0.85%
• 7-Day Average Percent Positive - 1.02%
• Patient Hospitalization - 1,490 (-31)
• 7-Day Average Patient Hospitalization - 1,602
• Net Change Patient Hospitalization Past Week - -362
• Patients Newly Admitted - 205
• Number ICU - 339 (-23)
• Number ICU with Intubation - 208 (-1)
• Total Discharges - 180,509 (+209)
• Deaths - 18
• Total Deaths - 42,542

Four Men Charged For Large-Scale Distribution Of Synthetic Cannabinoids Through Multiple Websites

 

The Defendants Shipped Drugs To All 50 States And Made More Than $1 Million

 Audrey Strauss, the United States Attorney for the Southern District of New York, Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), announced the unsealing of an Indictment charging NIAZ KHAN, NOEL SANABRIA, ANDRE GOMES, and PATRICK PATTERSON with conspiracy to distribute and possess with intent to distribute synthetic cannabinoids and to distribute controlled substances using the internet.  The case has been assigned to United States District Judge J. Paul Oetken.

KHAN, SANABRIA, GOMES, and PATTERSON were arrested this morning.  KHAN, SANABRIA, and GOMES will be presented later today in Manhattan federal court before United States Magistrate Judge Robert W. Lehrburger.  PATTERSON will be presented tomorrow in San Francisco federal court before United States Magistrate Judge Thomas S. Hixson.

Manhattan U.S. Attorney Audrey Strauss said:  “Trafficking of synthetic cannabinoids – sometimes called K2 or Spice – poses a serious threat to public health and safety.  Packaged attractively to appeal to teenagers and young adults, synthetic cannabinoids are in reality toxic concoctions that can be very dangerous to consume.  As alleged, the defendants used websites they operated to distribute massive quantities of synthetic cannabinoids throughout the United States.  Thanks to our law enforcement partners, the defendants have been arrested and their dangerous business has been dismantled.”

NYPD Commissioner Dermot Shea said:  “Whether synthetic cannabinoids are trafficked on the street or through the internet, the NYPD and our law enforcement partners will work to stop the source of these dangerous substances and hold accountable those responsible for the sales. I thank and commend the detectives of the NYPD’s Intelligence Bureau, members of the U.S. Attorney’s Office for the Southern District, the New York Field Office of Homeland Security Investigations, and the United States Postal Inspection Service whose dedication resulted in these charges and ended this national trafficking operation.”

HSI Special Agent-in-Charge Peter C. Fitzhugh said:  “Smokable synthetic cannabinoids (SSCs) are unlawful and their usage has caused serious medical issues to include overdose deaths. As alleged, the defendants blatantly disregarded public safety while hiding behind a website in an effort to make a quick profit. HSI will continue to work with its law enforcement partners to protect the American public, arrest these individuals, seize their assets, and take down websites that advertise the sale of narcotics.”

USPIS Inspector-in-Charge Philip R. Bartlett said:  “Synthetic cannabinoids contain psychoactive chemicals that can result in hallucinations and pose other dangers. The accused in this case may have thought their alleged criminal drug enterprise would go undetected by law enforcement. Today’s arrests should send a strong message to drug traffickers that Postal Inspectors and their law enforcement partners will vigorously investigate and bring them to justice.”

According to the allegations in the Indictment[1]:

From February 2019 until May 2021, KHAN, SANABRIA, GOMES, and PATTERSON operated a scheme to distribute massive quantities of smokeable synthetic cannabinoids (“SSC”), colloquially referred to as “K2” or “Spice,” containing controlled substances and/or a controlled substance analogue, throughout the United States.

KHAN, SANABRIA, GOMES, and PATTERSON sold SSC through at least four different websites that they operated, namely K2HerbStore.com, HerbalPlug.com, LegalAromaTherapy.com, and LegalHerbalSmack.com (collectively, the “Websites”).  The SSC the defendants sold through the Websites included dried, shredded plant material onto which synthetic cannabinoid chemicals had been sprayed.  The SSC distributed by the scheme was branded with colorful graphics and distinctive names, including “Train Wrecked,” “Scooby Snax Kush,” “Bizarro,” “AK 47,” “Hi5 Triple X,” “Evil Santa,” “Krazy Turkey,” “Sexy Monkey,” “W.T.F.,” and “COVID-19 Coronavirus Limited Edition.” 

In an effort to conceal their criminal activity and advertise their illegal products, KHAN, SANABRIA, GOMES, and PATTERSON used names for certain of the Websites that falsely represented that their SSC products were “legal.”  The defendants also sometimes misleadingly described their SSC products publicly as “not for human consumption,” “potpourri,” “herbal incense,” and “legal aroma therapy,” when, in fact, the defendants intended that the SSC would be consumed by drug users and they knew that their conduct was unlawful.

Over the course of the scheme, KHAN, SANABRIA, GOMES, and PATTERSON shipped thousands of packages of SSC through the United States mail from the Bronx, New York, to customers in all 50 states and the District of Columbia, which contained a total of hundreds of kilograms of SSC.  The defendants earned more than approximately $1 million from their illegal marketing and sale of SSC during the course of the scheme.

KHAN, 34, of Queens, New York, SANABRIA, 57, of the Bronx, New York, GOMES, 38, of Queens, New York, and PATTERSON, 32, of the Bronx, New York, are each charged with conspiracy to distribute and possess with intent to distribute controlled substances and a controlled substance analogue, and to distribute controlled substances using the internet, which carries a maximum sentence of 20 years.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.  

Ms. Strauss praised the outstanding investigative work of the NYPD, HSI, and the USPIS.  The long-term investigation of this case was partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (“HIDTA”), a federal grant program that invests in law enforcement partnerships to build safe and healthy communities.

The charge contained in the Indictment is merely an accusation, and the defendants are 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 should be treated as an allegation.