MAYOR DE BLASIO ANNOUNCES 18% DROP IN CITY JAIL POPULATION SINCE TAKING OFFICE

Jail population reaches record lows during safest year in CompStat history

  Mayor Bill de Blasio today announced that the New York City jail population has fallen by 18% since taking office, outpacing any three year decline since 2001. The average daily population declined from 11,478 in December 2013, just before Mayor de Blasio took office, to an average of 9,362 this month. In the last year alone, the jail population has fallen by 6% from 9,981 in March of last year. This drop was largely driven by intentional efforts to reduce the number of people who go into jail and how long they stay while protecting public safety.

“The number of people incarcerated in the U.S. did not fall in the last year, and our nation’s incarcerated population remains the largest in the world,” said Mayor Bill de Blasio. “But New York City has a different story to tell – we are making every effort to ensure that people who do not need to be behind bars are not, all while keeping crime at historic lows. In the last three years, we’ve been working from every angle to keep lower-level offenders out of jail and speed up case delays, and the total jail population has dropped 18% and the population just at Rikers Island has sunk 23% – that’s significant progress.”

Key achievements:

·         New York City is unique proof that we can have both more safety and smaller jails.

o   The City’s jail population has fallen to the lowest in decades alongside record crime lows: 2016 was the safest year in CompStat history, with homicides down 5%, shootings down 12%, and burglaries down 15% from 2015. Both crime and use of jail have been falling steadily in New York City for twenty years: major crime has declined by 76% and the average daily jail population has been reduced by half over the last 20 years. 

·         New York City’s use of jail is among the lowest nationally. 

o   While jail and prison populations grew by 11% nationally between 1996 and 2013, NYC’s jail population declined by 39%. New York City’s use of jail is among the lowest nationally (167 individuals detained per 100,000 residents), lower than Los Angeles (263/100,000), Chicago (281/100,000), and the national average (341/100,000).

·         New York City leads the nation in the number of defendants who are in the community instead of in jail while their case is being resolved. 

o   Over 70% of defendants in New York City are released without any conditions after their first appearance before a judge. This is nearly double the percentage of Washington, D.C., the next highest user in the county of release without conditions.

·         New York City has significantly reduced its jail population while simultaneously focusing enforcement resources on serious, violent crime.

o   In 2015, arrests for murder were up 16% and gun arrests were up 10.5%.

o   The proportion of the jail population detained on violent offenses has increased by 56% over the past 20 years, even while the overall population has dropped precipitously.

·         New York City has dramatically reduced detention for those charged with drug and other low-level misdemeanors.

o   Between 1996 and 2016, the number of people held on felony drug charges declined by 78%, and the number of people held on misdemeanor drug charges declined by 62%. These trends have accelerated in the last three years: the number of jail admissions for misdemeanor detainees has dropped by 25% since 2014. 

“New York, singularly among the nation’s large cities, has reduced the size of the jail population even while reducing crime,” said Elizabeth Glazer, Director of the Mayor’s Office of Criminal Justice. “Jails hold up a mirror to the fair functioning of society and reflect how the many different parts of the criminal justice system, and New Yorkers themselves, affect whether the population grows or shrinks. The significant progress over the last three years to reduce the number of people who enter jail and how long they stay is a shared success, possible because of the close coordination of every part of the criminal justice system and the participation of New Yorkers in keeping crime low.”

Department of Correction Commissioner Joseph Ponte said, “The many strategies NYC is using to reduce the numbers of individuals who end up in jail help us in our drive to create a culture of safety in our facilities. In particular, reducing the number of short stays and people with mental health needs and low-level drug charges allows us to focus on managing serious offenders and persistently violent inmates. Such strategies increase safety for all New Yorkers.” 

Key strategies:

To achieve these reductions while ensuring New York City remains the safest big city in the United States, the City has implemented an array of strategies including:

Reducing the Number of People Who Enter Jail

New York City is taking various steps to reduce reliance on money bail and jail time for low-risk individuals, while the number of people detained on bail of $2,000 and under has fallen by 36% in the last three years. 

Results: 

·         Expanded community-based alternatives to jail: Supervised Release – a bail alternative program that gives judges the option of allowing eligible, low-risk defendants to remain home with their families and continue working while waiting for trial – has diverted over 3,000 people from jail since the program was launched in March 2016. 

·         Reduced short stays in jail: About 11,000 people were detained on bail for less than one week in 2015. To make it easier to post bail more quickly, and thus reduce these short jail stays, the City is installing ATMs in every courthouse to ensure people have easy access to cash to post bail, and is also rolling out an online bail payment system.

·         Reduced the number of people with behavioral health needs in City jails: After increasing steadily for five years, the number of people with behavioral health needs in City jails has fallen by 5% in the last two years following the implementation of the Mayor’s Action Plan on Behavioral Health and the Criminal Justice System. 

Reducing the Length of Jail Stay

Detainees awaiting trial at Rikers for long periods of time are the single biggest driver of the City’s jail population. 

In April 2015, the Mayor’s Office, the courts, the city’s five district attorneys and the defense bar launched the Justice Reboot initiative to clear the backlog of old cases and reduce case delay in a lasting, systemic way.

Results: 

·         Cleared the existing backlog: 93% of the 1,427 cases that were more than a year old when Justice Reboot was announced have been resolved. 50% of those cases were cleared within the first 4 months of the initiative.

·         Reduced case length for the first time in decades: The length of Supreme Court cases has been reduced by an average of 18 days.

·         Dramatically reduced the number of oldest cases: Since Justice Reboot was launched, the number of cases older than three years has been reduced by half.

Reducing Repeated, Short Stays in Jail 

Individuals serving frequent, short jail sentences on low-level offenses tend to be dealing with chronic homelessness and behavioral health needs. In New York City, this relatively small number of people consumes a disproportionate share of shelter, jail and emergency room resources. The 400 “highest use” individuals among this population entered the City’s custody an average of 12.42 times over four years, with each stay averaging 30 days. 

In 2016, New York City has targeted this “frequent use” population with various interventions, including permanent supportive housing, which has been shown to reduce returns to jail by 38% and to save $16,000 per individual in annual jail, shelter, and emergency room costs.

Results:

·         Reduced chronic recidivism: 97 individuals who are among the highest users of jail in New York City have been placed in permanent supportive housing. Collectively, these individuals have served over 36,000 days in jail and spent over 22,000 days in shelter over the last five years. Permanent housing, coupled with supportive services to help these individuals stabilize, will save the City an estimated $1.6 million annually through reduced hospital visits, shelter admissions, and trips to jail.

The City will rollout additional strategies in the coming weeks to continue reducing the number of people who enter jail. 

Two new reports are available today that give additional detail on the jail population and opportunities for reduction: a study from the Center for Court Innovation, commissioned by the Mayor’s Office of Criminal Justice, thoroughly examines the baseline jail population in 2014 when Mayor de Blasio took office, availablehere; and a complete data breakdown of the current jail population and opportunities for further reduction, released today by the Mayor’s Office of Criminal Justice.

Wave Hill Events Apr 7–Apr 14 Hudson River Eel Day

Panoramic views of the river have been part of the history of Wave Hill since native Americans first settled here―and of enduring importance to the Perkins family, the last to own Wave Hill before it became a public garden. This week, we focus on a slippery resident of the river, one whose springtime journey up the river’s estuary is a dramatic one. Combine the nature program with a birding walk, or the eel-themed Family Art Project, add in a light lunch in The Café and make a day of it.

If you have youngsters in your care this week, check out the three afternoons of vacation art we have in store, a perfect setting for combining some outdoor time with art-making.

SAT, APRIL 8    FAMILY ART PROJECT: EELS AND HUDSON RIVER THEATERS

The Hudson River is seen through beautiful vistas at Wave Hill, but what is life really like inside the river? Hear about the relationship between eels and the health of the river and our role as good river stewards. Create drawings, maps and images of river residents, then create a diorama with movable parts—a thriving river theater! Free, and admission to the grounds is free until noon. 

WAVE HILL HOUSE, 10AM‒1PM

SAT, APRIL 8    GARDEN HIGHLIGHTS WALK

Join us for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

SUN, APRIL 9    SPRING BIRDING

Welcome migratory birds back to Wave Hill this spring! Explore the gardens and woodlands with naturalist Gabriel Willowon a quest to spot some of our favorite feathered friends as they return to the Hudson Highlands. Ages 10 and older welcome with an adult. Severe weather cancels. NYC Audubon Members enjoy two-for-one admission. Free with admission to the grounds. 

ON THE GROUNDS, 9:30AM

SUN, APRIL 9    FAMILY ART PROJECT: EELS AND HUDSON RIVER THEATERS

The Hudson River is seen through beautiful vistas at Wave Hill, but what is life really like inside the river? Hear about the relationship between eels and the health of the river and our role as good river stewards. Create drawings, maps and images of river residents, then create a diorama with movable parts—a thriving river theater! Free with admission to the grounds.Hudson River Eel Day event.

WAVE HILL HOUSE, 10AM‒1PM

SUN, APRIL 9    FAMILY NATURE WALK

Join naturalist and educator Gabriel Willow on a family-friendly walk through the gardens or woodlands. Ages six and older welcome with an adult. Severe weather cancels. No registration required. Free with admission to the grounds.

MEET AT WAVE HILL HOUSE, 12:30PM

SUN, APRIL 9    NATURE PROGRAM: THE INCREDIBLE JOURNEY OF THE AMERICAN EEL

An environmental educator from the NYS Department of Environmental Conservation’s Hudson River Eel Project shares the incredible journey of Anguilla rostrata with images, artifacts and live eels. Hear how scientists, students and community volunteers are working together to gather vital information about local eel populations by catching, counting and releasing thousands of tiny “glass eels” as they make their way up the Hudson River estuary each spring. Ages 10 and older welcome with an adult. Free with admission to the grounds. Hudson River Eel Day event. 

WAVE HILL HOUSE, 2PM

SUN, APRIL 9    GARDEN HIGHLIGHTS WALK

Join us for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

MON, APRIL 10    

Closed to the public.

TUE, APRIL 11    GARDEN HIGHLIGHTS WALK

Join us for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

TUE, APRIL 11    VACATION ART: SKETCHING SPRING–CAPTURING NATURE’S CONTOURS

Spring marks a new cycle of life—trees are leafing out, buds are bursting and migrating birds are returning to their summer homes at Wave Hill. Spend one, two or three afternoons exploring Wave Hill’s grounds and gardens and practicing methods for recording your observations, then constructing a nature journal. Harness your powers of observation to closely examine the budding leaves, flowers and insects of spring. Today’s program: Modeled on tried-and-true nature-journaling practices, learn accessible techniques like blind and sighted contour drawing to record the details of spring growth in your new nature journal, and label them to help you remember your experience. This program is geared toward families with children between the ages of six and 10. Space is limited. $25/$15 Wave Hill Member per session includes one child and one adult. Additional child or adult is $10.Registration is required, online at wavehill.org, or onsite at the Perkins Visitors Center.

WAVE HILL HOUSE, 1:30–3PM

TUE, APRIL 11    GALLERY TOUR

Wave Hill’s Curatorial Fellow will lead a tour of the spring exhibitions in Glyndor Gallery. The group show, Outcasts: Women in the Wilderness, explores how women have been treated and portrayed as outcasts in history, myth and biblical legend. In the Sunroom Project Space, Borinquen Gallo’s imaginary hive interior is informed by Wave Hill’s beehives. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

WED, APRIL 12    VACATION ART: SKETCHING SPRING–COLORFUL SPRINGSCAPES

Spring marks a new cycle of life—trees are leafing out, buds are bursting and migrating birds are returning to their summer homes at Wave Hill. Spend one, two or three afternoons exploring Wave Hill’s grounds and gardens and practicing methods for recording your observations, then constructing a nature journal. Harness your powers of observation to closely examine the budding leaves, flowers and insects of spring. Today’s program: Celebrate the colors of the season by rendering your observations of Wave Hill’s gardens with colored pencils and pastels in your newly constructed nature journal. Inspired by the expressive use of color in Japanese prints and European Post-Impressionist paintings, we also explore the emotive powers of color and express our responses to nature through hue. This program is geared toward families with children between the ages of six and 10. Space is limited. $25/$15 Wave Hill Member per session includes one child and one adult. Additional child or adult is $10.Registration is required, online at wavehill.org, or onsite at the Perkins Visitors Center.

WAVE HILL HOUSE, 1:30–3PM

THU, APRIL 13    VACATION ART: SKETCHING SPRING–WATERCOLOR VISIONS

Spring marks a new cycle of life—trees are leafing out, buds are bursting and migrating birds are returning to their summer homes at Wave Hill. Spend one, two or three afternoons exploring Wave Hill’s grounds and gardens and practicing methods for recording your observations, then constructing a nature journal. Harness your powers of observation to closely examine the budding leaves, flowers and insects of spring. Today’s program: Watercolor paints are a great way to capture the delicacy of new spring growth. Master a simple underpainting technique for achieving a cohesive image, then complete a watercolor painting inspired by Wave Hill’s grounds to create an impressive cover for your nature journal. This program is geared toward families with children between the ages of six and 10. Space is limited. $25/$15 Wave Hill Member per session includes one child and one adult. Additional child or adult is $10.Registration is required, online at wavehill.org, or onsite at the Perkins Visitors Center.

WAVE HILL HOUSE, 1:30–3PM

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–5:30PM, starting March 15.  Closes 4:30PM, November 1–March 14.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

A.G. Schneiderman & Acting Tax Commissioner Manion Announce Indictment Of Spa Castle Operators For Allegedly Failing To Pay $1.5 Million In Taxes

Owners Of Spa Castle Inc. Charged With Grand Larceny And Criminal Tax Fraud For Allegedly Failing To Remit Taxes

   Attorney General Eric T. Schneiderman and Acting Commissioner of Taxation and Finance Nonie Manion announced today the indictment of Steve Chon, Daniel Chon, Victor Chon, Stephanie Chon and Spa Castle Inc. on eleven felony charges each, stemming from their alleged theft or failure to remit over $1.5 million in sales and other taxes owed by Spa Castle Inc. Steve Chon (57), his brothers Daniel Chon (54) and Victor Chon (50), and his daughter Stephanie Chon (29), own and operate Spa Castle Inc., a 100,000-square foot spa facility located at 131-10 11^th Avenue in College Point, Queens.  According to the charges, the Chon family failed to report millions of dollars in revenues collected by Spa Castle, Inc. from 2010 through 2013, thereby failing to remit to New York State a total of over $621,000 in sales taxes, $207,000 in withholding taxes, $610,000 in corporate taxes, and $131,000 in Metropolitan Transportation Authority Surcharge taxes.

“Companies that fail to pay their fair share of taxes leave ordinary New Yorkers to foot the bill,” said Attorney General Schneiderman. “We will not tolerate irresponsible business owners who cheat the system and undermine our tax laws.”

“The scale of theft alleged in this case is staggering,” said Acting Commissioner Nonie Manion. “If proven, these felony crimes show a blatant disregard for New York State law and all law-abiding New Yorkers and business owners, who shoulder the added tax burden and suffer the loss of revenue used for vital programs and services. We’ll continue to work with Attorney General Schneiderman and all our partners in law enforcement to prosecute these cases and ensure a level playing field.”

This case was the result of a joint investigation by the New York State Attorney General’s Office and the Department of Taxation and Finance, Criminal Investigations Division.

The indictment, unsealed today in Queens County Supreme Court, charges each of the defendants with two counts of Grand Larceny in the Second Degree, a Class C Felony, in violation of New York State Penal Law §155.40(1), eight counts of Criminal Tax Fraud in the Second Degree, a Class C felony, in violation of Tax Law § 1805, and one count of Criminal Tax Fraud in the Third Degree in violation of Tax Law § 1804.   

According to statements made by the prosecutor at arraignment, Spa Castle Inc. is a spa facility in College Point, Queens that offers a variety of services, including massages, facials, saunas, swimming pools, restaurants, bars, and other amenities.  Spa Castle Inc. generates revenues by charging admission to the facility and also by charging additional fees for the other services offered at the location.   According to the prosecutor, between 2010 and 2013, Spa Castle Inc.’s College Point location generated over $22 million per year in revenues. 

In August of 2015, investigators from the New York State Attorney General’s Office and the New York State Department of Taxation and Finance executed a search warrant at Spa Castle Inc.  According to statements made by the prosecutor, records seized during the execution of a search warrant allegedly showed that the defendants avoided paying required taxes by underreporting the amount of money earned at the facility and by paying employees and vendors in cash. Between 2010 and 2013, the Chon family allegedly underreported millions of dollars in income for Spa Castle Inc. and failed to pay over $621,000 in New York State sales taxes from March 2010 through August 2013.  The Chon family and Spa Castle also allegedly withheld but failed to remit to New York State a total of over $207,000 in withholding taxes between January 2010 and September 2013, and failed to remit to New York State a total of over $610,000 in corporate taxes and $131,000 in Metropolitan Transportation Authority Surcharge taxes for the period of January 2011 through December 2012.

If convicted, each of the individual defendants face up to 5 to 15 years in prison.

The defendants were arraigned today before the Honorable Robert Kohm in Queens County Supreme Court. Bail was set at $100,000 bond for all the defendants.  

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The Attorney General thanks the New York State Department of Taxation and Finance for their valuable assistance in this investigation.

A.G. Schneiderman Announces $540K Settlement With Retailer For Defrauding Over 250 Soldiers In NYS

Freedom Stores Preyed On Over 250 Service members In New York State; Destroying Credit Ratings

AG’s Settlement Clears Debts & Judgments, Removes Negative Credit Reporting For Service members

   Attorney General Eric T. Schneiderman today announced that his office has secured a $540,000 settlement with Freedom Stores, Inc., and Freedom Acceptance Corp.  (collectively, “Freedom Stores”) a now-defunct retailer and financing firm based in Norfolk, Virginia, after the companies fraudulently charged hundreds of New York servicemembers who purchased consumer goods from Freedom Stores. The Attorney General’s settlement will clear debt and judgments fraudulently charged to hundreds of New York soldiers at various locations across the United States. Over 250 finance accounts, with balances ranging up to $8,600, and averaging $2,100, will all be brought to zero balances; judgments taken against soldiers by the company will be eliminated, and negative trade lines will be removed with credit reporting bureaus for the New York servicemembers.

"Freedom Stores took advantage of servicemembers using deceptive practices, roping them into high interest contracts and ruining their credit -- and sometimes their military careers. These actions are nothing short of unconscionable. I am proud that we were able to wipe out the debts for hundreds of men and women who stand up for us every day," said Attorney General Schneiderman. "We will keep working to root out fraud and protect our soldiers, who sacrifice so much to protect us.”

The settlement is the result of the Attorney General's office’s investigation into Freedom Stores.  The investigation revealed that the practices at Freedom Stores were part of a larger scheme to defraud servicemembers by deceptively selling them consumer goods at wildly inflated prices and locking the soldiers into revolving credit agreements with undisclosed fees and very high interest rates paid directly from military paychecks or personal bank and credit accounts to unlicensed lenders. The debts were aggressively pursued by Freedom, often with no accounting for how or if the payments were being applied to the debt. The collection upon these defective contracts within the state of New York violates state law.

Freedom Stores largely ceased doing business in 2015, but continued to collect on contracts entered into before that date. Debt associated from its business operations continued to impact servicemembers by tainting their credit, and in some instances threatening security clearances or ending military careers.

According to the terms of the settlement, the settling companies will contractually release all of the approximately 257 New York State soldiers from their debt and related judgments. The company will also clear all negative credit reports related to the contracts.

This case is the most recent resolution of a military-related case pursued by Attorney General Schneiderman. Prior work includes:

• Rome Finance Co., Inc. (bankruptcy estate): This settlement released approximately 995 New York soldiers of debt totaling over 3.5 million dollars after they’d been deceptively lured into illegal financing contracts related to consumer goods;

• Integrity Financial of North Carolina/SmartBuy: Attorney General Schneiderman resolved litigation with this finance/retail business, securing over 9.5 million dollars in debt relief for 358 New York State soldiers as well as an additional 3,963 soldiers nationwide, and a $150,000 penalty for the state of New York. Integrity and SmartBuy were part of a larger scheme to defraud servicemembers by deceptively reselling them computers and electronics at wildly inflated prices, and locking soldiers into revolving credit agreements with undisclosed fees, high interest rates, and allotment payments;

• Fort Drum Vehicle Storage: Attorney General Schneiderman intervened to reunite 176 servicemembers with their stored vehicles, discontinued automatic payments, and assisted in compensation for storage fees;

• Rome Finance Company (combined entities): Attorney General Schneiderman led a coalition of states and the federal Consumer Financial Protection Board to a national resolution which shut down Rome Finance, eliminated 92 million dollars of debt relief to over 17,800 affected United States servicemembers worldwide. This settlement included a benefit of over 2.2 million dollars for over 550 New York State consumers;

• LeRay 300, LLC, aka Woodcliff Community: In an ongoing investigation, Attorney General Schneiderman ordered the townhome community to cease and desist collecting fees in violation of the Servicemember Civil Relief Act from servicemembers, violations which are alleged to have occurred when soldiers and their families terminated residential leases early upon receipt of orders for deployment or a permanent change of station; and

• USA Discounters: Participating on the executive committee, Attorney General Schneiderman was part of a multistate effort yielding 40-million dollars in penalties, 95-million dollars in consumer debt relief, of which benefited approximately 759 servicemembers located in New York State, for a benefit of 1.8 million dollars.

Founder Of Non-Profit Organization Sentenced To 36 Months In Prison For Defrauding Parents Of Abducted Children

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that PETER SENESE, the Founding Director of the I CARE Foundation (“I CARE”), a purported non-profit organization allegedly dedicated to preventing child abduction and trafficking, was sentenced in Manhattan federal court today by U.S. District Naomi R. Buchwald to 36 months in prison for wire fraud and conspiracy to commit wire fraud. In connection with the scheme, SENESE defrauded parents of international abduction victims by falsely representing that he could find and return the children to the United States in exchange for payments to fund his purported international rescue operation. SENESE pled guilty September 8, 2016.

Manhattan Acting U.S. Attorney Joon H. Kim said: “In this most cruel and heartbreaking criminal scheme, Peter Senese preyed on the most vulnerable and desperate victims, anguished parents of abducted children. Senese did more than just steal his victims’ money – he robbed them of hope. For seeking personal profit out of others’ pain and tragedy, Senese has been convicted of federal crimes and will now do time in a federal prison. We hope this prosecution provides some measure of justice to those who were so callously victimized by Senese.”

As alleged in the Superseding Indictment and in other documents filed in federal court:

Between November 2013 and February 2015, on his websites (www.stopchildabduction.org and www.petersenese.com) and elsewhere, SENESE claimed falsely that I CARE was “a self-funded not-for-profit 501-C-3 corporation” that successfully “reunited numerous internationally kidnapped children” with their parents “while protecting an exponentially larger number of children from abduction.” SENESE credited I CARE’s success to the “great efforts, financial, legal, and investigative resources” of individuals associated with I CARE, including a team of former members of the U.S. Army component Delta Force. In one instance, SENESE represented to a parent-victim that he could recover her child from India, appearing on a local radio program with the parent-victim, and sending numerous text messages and emails to the parent-victim stating falsely that he was in a “remote location” in India, was communicating with her child, and that the child would be returned to the United States in a matter of hours or days. Though he never traveled overseas or communicated with the child, SENESE collected over $70,000 from the parent-victim.

In addition to the prison sentence, SENESE, 51, of Brooklyn, New York, was ordered to pay restitution and forfeiture in the amount $85,100.

Mr. Kim praised the outstanding work of the FBI for its investigative efforts and ongoing support and assistance with the case.

Founder And Former CEO Of Technology Firm Charged With Defrauding Investors Out Of $6 Million

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging MARYSE LIBURDI with defrauding investors out of more than $6 million through a technology company founded and operated by LIBURDI.  The defendant was arrested by Italian authorities in Rome, Italy, in April 2016, and arrived in the Southern District of New York yesterday following her extradition.  LIBURDI was arraigned this afternoon and the case has been assigned to U.S. District Judge Denise Cote.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “As alleged, Maryse Liburdi repeatedly lied to investors in her tech company, telling them the company was profitable when it was in fact generating no revenue.  Rather than using investor money to operate her company, she was allegedly spending it on herself and her family, paying for personal expenses like spas and salons, wine, luxury clothing, and rental fees on a three-bedroom Manhattan apartment.”    

FBI Assistant Director William F. Sweeney Jr. said:  “We see this behavior time and time again--fraudsters intentionally misrepresenting a company's financials to lure investors down a path from which it's particularly hard to return. Today, Maryse Liburdi is charged with allegedly defrauding investors out of more than $6 million over the course of several years, all the while converting much of the money to her own personal and extravagant use. As long as this type of criminal activity continues to go on, we will continue to go after those responsible for it.”

According to the allegations contained in the criminal Complaint and Indictment filed against LIBURDI:[1]

Since at least in or about 2008, LIBURDI perpetrated a multi-year scheme to defraud individuals into investing more than $6 million in a technology company (the “Company”) founded and run by LIBURDI.  LIBURDI repeatedly made misrepresentations to investors about the Company’s revenue and assets, manipulated Company bank accounts to hide the Company’s true financial condition and, contrary to LIBURDI’s express promises to the investors, converted hundreds of thousands of dollars of investor funds to LIBURDI’s own use, including rent for LIBURDI’s Manhattan apartment and to purchase luxury clothing and other personal items.

While LIBURDI repeatedly told investors that the Company had millions of dollars in revenue, a review of the Company’s bank records shows that, from at least 2008 until the Company ceased operating in January 2015, the Company earned little or no revenue.  Moreover, as reflected in the Company’s bank records, LIBURDI misappropriated investor funds, transferring over $1 million to her and her former husband’s bank accounts and to pay LIBURDI’s personal expenses, including luxury clothing.  For example, LIBURDI used funds from one victim investor for, among other things, transfers to a personal bank account in the name of LIBURDI and her former husband; rental payments for LIBURDI’s three-bedroom Manhattan apartment; payments for personal credit cards; and substantial personal expenditures on corporate credit cards, including, among other things, expenditures at various retail clothing, accessories, and cosmetics stores, salons and spas, and wine and liquor stores. 

In order to hide her scheme, LIBURDI manipulated the Company’s bank accounts by, on at least three occasions, writing checks for hundreds of thousands of dollars drawn on accounts with insufficient funds in order to fraudulently inflate the balance of a Company bank account and thereby hide the Company’s true cash balance from the investors.  For example, in October 2013, LIBURDI wrote and deposited into the Company’s bank account a $700,000 check drawn on a different account that had a balance of only about $2,000.  LIBURDI then falsely represented to the victims that the Company’s bank account held approximately $700,000 and showed investors a bank statement for the Company account listing the inflated balance.

LIBURDI, 45, formerly of Victoria, Minnesota, and New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Kim praised the outstanding investigative work of the FBI.  He also thanked Italian law enforcement authorities, including Interpol Rome, for their assistance in the arrests, as well as the Department of Justice’s Attaché at the U.S. Embassy in Rome and the DOJ Office of International Affairs.        

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

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[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment and the description of the Complaint and Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.