100PercentBronx

Monday, June 12, 2017

Manhattan Tax Attorney And Florida CPA Plead Guilty To Multimillion-Dollar Tax Evasion Scheme

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that HAROLD LEVINE, a Manhattan tax attorney, and RONALD KATZ, a Florida certified public accountant, pled guilty today in Manhattan federal court to tax crimes based upon their roles in a corrupt multi-year tax evasion scheme involving the failure to report to the Internal Revenue Service (“IRS”) millions of dollars in fee income stemming from tax shelter transactions. LEVINE and KATZ are scheduled to be sentenced by Judge Rakoff on October 11, 2017.

Acting U.S. Attorney Joon H. Kim said: “As tax professionals, both Harold Levine and Ronald Katz well knew their obligations to report their income to the IRS. As they have now admitted, they instead engaged in a corrupt scheme to evade taxes on millions of dollars of income. Now both defendants will be held to account for their crimes.”

According to the allegations in the Indictment to which LEVINE and KATZ pleaded guilty, and statements made during the plea proceedings and other court proceedings:

Between 2004 and 2012, LEVINE, a tax attorney and former head of the tax department at a major Manhattan Law Firm (the “Law Firm”), schemed with KATZ, a certified public accountant, to obstruct and impede the due administration of the Internal Revenue laws by evading income taxes on millions of dollars of fee income generated from tax shelter and related transactions that LEVINE worked on while a partner of the Law Firm. Specifically, LEVINE failed to report approximately $3 million in income to the IRS on his personal tax returns during the period 2005-2011. For his involvement in this scheme, KATZ received and failed to report to the IRS over $1.2 million in income on his personal tax returns.

As part of the scheme, for example, LEVINE caused tax shelter fees paid by a Law Firm client to be routed to a partnership entity he co-owned with KATZ and thereafter used those fees – totaling approximately $500,000 – to purchase a home in Levittown, on Long Island. LEVINE caused the home to be purchased as a residence for a Law Firm employee (the “Law Firm Employee”) with whom he had a close personal relationship. Although LEVINE allowed the Law Firm Employee to reside in the Levittown house for over five years without paying rent, LEVINE and KATZ prepared tax returns for the entity through which the home was purchased that claimed false deductions as a rental property.

In or about 2013, LEVINE was questioned by IRS agents concerning his involvement in certain tax shelter transactions and the fees received by LEVINE and KATZ from those transactions. During that questioning, LEVINE falsely represented that the Law Firm Employee paid him $1,000 per month in rent while living in the Levittown home. In addition, when the Law Firm Employee was contacted by the IRS and summoned to appear for testimony, LEVINE urged the employee to falsely represent to the IRS that she had paid $1,000 per month in rent to LEVINE.

LEVINE, 59, of New York, New York, and KATZ, 59, of Boca Raton, Florida, each pled guilty to one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws, which carries a maximum sentence of three years in prison, and one count of tax evasion, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Kim thanked the IRS for its assistance in this investigation and praised the outstanding investigative work of both IRS-CI and IRS Civil – Large Business & International

Florida Man Sentenced In Manhattan Federal Court To 18 Months In Prison For Attempting To Gain Unauthorized Access And Cause Damage To The Computer Network Of A Charitable Organization

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TIMOTHY SEDLAK was sentenced in Manhattan federal court to 18 months in prison for attempting to access without authorization the computer network of a global charitable organization based in New York, New York (the “Organization”), and as a result of such conduct, recklessly causing damage to computers of the Organization. He was convicted on February 23, 2017, and was sentenced today by U.S. District Judge Ronnie Abrams.

Acting Manhattan U.S. Attorney Joon H. Kim said: “Timothy Sedlak used dozens of computers and electronic devices to unlawfully access others’ computer networks, making hundreds of thousands of attempts to steal information from one charitable organization. Although he was ultimately unsuccessful, Sedlak’s efforts impaired the organization’s ability to operate. I want to thank our partners at the Secret Service for their work to combat cyber attacks like this one.”

According to the Superseding Information, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including the guilty plea:

SEDLAK made hundreds of thousands of attempts to gain access without authorization to the computer network systems of the Organization, and in so doing, impaired the availability of the email accounts and web-based applications of more than 10 employees of the Organization.

From June 2015 to July 2015, computers associated with two internet protocol addresses subscribed to SEDLAK at SEDLAK’s residence in Florida (the “IP Addresses”) made nearly 400,000 attempts to gain unauthorized access to the Organization’s computer network. As a result, numerous Organization employees experienced difficulty accessing their Organization email accounts, and were disrupted in their ability to conduct regular business functions. In particular, between June 22 and July 8, 2015, from one of the IP Addresses, there were approximately 195,000 attempts to log into approximately 20 email accounts of the Organization. Between July 8 and July 10, 2015, from the other IP Address, there were an additional approximately 195,000 attempts to log into approximately six email accounts of the Organization. SEDLAK has never been employed by the Organization, and was not authorized to access any email accounts of the Organization.

On September 11, 2015, U.S. Secret Service (“USSS”) agents executed a search warrant at the Sedlak Residence, from which they seized 42 computers and electronic devices (the “Sedlak Computers”). The forensic examination of the Sedlak Computers revealed that 31 devices contained known hacking software and/or artifacts, indicating they were used in attempts to gain unauthorized access to a network. The forensic examination of the Sedlak Computers also revealed that at least 11 personal email accounts were successfully accessed without authorization. The email accounts belong to individuals in the United States and abroad, none of whom are known to be associated with the Organization. In addition, unsuccessful attempts to gain unauthorized access to over 1,000 entities and IP addresses were uncovered. SEDLAK targeted international and domestic victim entities, including charitable organizations, political organizations, law firms, financial firms, and businesses. When he was interviewed by USSS agents, Sedlak claimed that he hoped to sell the information he found.

SEDLAK, 44, of Ocoee, Florida, was sentenced to 18 months in prison, to be followed by three years of supervised release. The defendant’s right, title, and interest in specific property seized by the USSS – including 31 electronic devices – was ordered to be forfeited to the United States.

Mr. Kim praised the investigative work of the United States Secret Service.

Assemblyman Dinowitz - DOT Breaks Promises, Sedgwick Avenue Traffic Hazard Remains

Assemblyman Dinowitz sent a letter to New York City Department of Transportation(DOT) Commissioner Polly Trottenberg and Bronx DOT Commissioner Nivardo Lopez regarding the recent installation of caution signs on the Sedgwick Avenue pedestrian island at Van Cortlandt Avenue West.

Assemblyman Dinowitz has been calling for the pedestrian island to be redesigned by DOT since 2014. The island, which sits awkwardly at the three-way intersection, is frequently hit by vehicles and has caused innumerable traffic incidents. In October of 2014 Assemblyman visited the traffic island with former Bronx DOT commissioner Constance Moran to highlight his concerns that the island was a danger to vehicles and residents of the community. Commissioner Moran agreed at that meeting to have DOT redesign the island as well as in subsequent correspondence.

Several years have gone by and despite continued and numerous phone calls, emails, and letters by Assemblyman Dinowitz to both the former Bronx DOT Commissioner as well as the current Commissioner, nothing was done to remediate this dangerous traffic island.

Finally, in January of this year, Assemblyman Dinowitz personally met with both NYC DOT Commissioner Trottenberg and Bronx DOT Commissioner Lopez to personally address the Sedgwick traffic island situation, and visited the traffic island with Lopez. Assemblyman Dinowitz was promised verbally and in a letter by Commissioner Trottenberg that they would address the situation and that “Borough Commissioner Lopez will share these design plans with you prior to construction this summer, as you requested”.

Instead, Assemblyman Dinowitz learned from an announcement made by a Bronx DOT staffer at Community Board 8’s district service meeting, that several caution signs had been installed in lieu of redesign and reconstruction of the traffic island. “Not only was the DOT promise to keep me appraised of the development and plan for redesign of the island not kept, but the promise to redesign the island itself was not kept. In my opinion these caution signs do not constitute a redesign at all and do nothing to remediate the problem of vehicles constantly hitting the island when they make left turns from northbound Sedgwick Avenue to westbound Van Cortlandt Avenue West. I was never informed that there was a new plan, and I was not even notified by DOT after they installed those pathetic caution signs instead of doing what they explicitly said they would do,” said Assemblyman Dinowitz.

EDITOR's NOTE:

We drove by the site and saw no caution signs, and what seemed to be a smaller hazard of an island where Assemblyman Dinowitz states.

Elected Officials Announce Another Job Fair in the Bronx

What You Should Know
By State Senator Rev. Rubén Díaz
32nd Senatorial District

You should know that Senator Ruben Diaz, Assemblyman Luis Sepulveda, Assemblyman Marcos Crespo and NYC Councilman Rafael Salamanca will be holding another Job Fair this Friday, June 16, 2017 from 6:00pm-8:00pm at the South Bronx Center Police Athletic League located at 991 Longwood Avenue, between Beck Street and Fox Street in Bronx County.

It is important for you to know that we are conducting another Job Fair to help find jobs for those who are unemployed in our community. We expect that like our other Job Fairs, this event will make a great difference in the lives of many people and families in our community.

More than 50 agencies, organizations, and companies will be present to offer job employment opportunities to those seeking employment. These include jobs at City agencies and services for the unemployed, jobs in General Contracting industry, jobs in Colleges, and jobs in the Healthcare industry.

For further information, please contact Assemblyman Luis Sepulveda’s office at (718) 931-2620.

I am Senator Rev. Rubén Díaz, and this is what you should know.

EDITOR'S NOTE:

The four Amigos ride again?

Croton Facility Monitoring Committee Meeting (CFMC)

Monday, June 19, 2017 – 6:30 PM

DEP Office – 3660 Jerome Avenue, Bronx NY 10467 - (718) 231-8470

Agenda

I Welcome & Call Meeting to Order
Bill Hall, Chair

II Consider, Adopt June 19, 2017 Agenda
CFMC Representatives

III Consider, Adopt Minutes from CFMC Representatives

April 3, 2017 CFMC Meeting

IV Open Access Weekend at JPR
Shane Ojar, DEP, and
Educational Program in Local Schools

V Presentation of Proposed Signage for VCP
Glenn Brue, DDC
Landscaping Tony Macari, DPR
Eric Johnson, Grimshaw

VI VCP Pedestrian Bridge – Update for CFMC
Glenn Brue to be scheduled later in 2017

VII Croton Costs Report ; Construction Update
Bernard Daly, DEP

VIII Old Business
CFMC Representatives, & Public

IX New Business
CFMC Representatives, & Public

X Select Date for Autumn Meeting & Adjourn

Senator Klein announces $250,000 in funding for Kingsbridge Riverdale Van Cortlandt Development Corporation

Senator Jeff Klein announced $250,000 in funding he secured for Kingsbridge Riverdale Van Cortlandt Development Corporation in this year’s state budget. Senator Klein made the announcement on Sunday during RiverFest, an annual celebration along the Hudson River in Riverdale. KRVC organizes the popular gathering, which attracts residents and merchants for a day of music, boat rides, lectures and more.

“KRVC is a wonderful organization with a main goal of uniting our community. I’m proud to have secured $250,000 this year for KRVC, which will help with their various projects and initiatives aimed at enhancing the lives of my constituents in the north Bronx,” said Senator Klein.

“This generous funding from Senator Klein will enable KRVC to build on our past success and increase our programming and events. Thanks to this funding, we will, among other things, be able to continue our jobs program and community beautification initiatives,” said KRVC Executive Director Tracy Shelton.

Assemblymember Michael Blake - Statement on the Puerto Rican Statehood Referendum Results

After the results of the vote on the issue of statehood in Puerto Rico, New York State Assembly Member Michael A. Blake released the following statement:

Today, Puerto Rico voted in a non-binding referendum in favor of United States statehood. An overwhelming 97% of the people who voted supported statehood. I commend all of the Puerto Rican men and women who participated in the democratic process and applaud them for standing up and voting for their beliefs.

Now, it is Congress’ turn to listen to the Puerto Rican people. I urge the Republican Congress to respect the wishes of the Puerto Rican people and bring the issue of statehood up for a vote.