Tuesday, October 17, 2017

MAYOR DE BLASIO ANNOUNCES NYC SERVICE CENTER TO SUPPORT INDIVIDUALS & FAMILIES RECOVERING FROM HURRICANE MARIA, IRMA, & HARVEY


NYC service center will provide information and assistance for individuals affected by recent hurricanes

  Mayor de Blasio announced that a service center will open next week to support displaced individuals and families from Puerto Rico, Texas, Florida, the U.S. Virgin Islands and other Caribbean islands following recent hurricanes. The center will be open starting on Thursday, October 19 at the Julia De Burgos Latino Cultural Center located at 1680 Lexington Avenue in Manhattan.

“New York City will help those affected by recent hurricanes in any way we can. We’ve been sending donations and emergency responders to affected areas, and now we’re setting up a central location to help displaced people in our city receive essential services and assistance,” said Mayor Bill de Blasio.

“This is a humanitarian crisis the likes our city has ever experienced and we must do everything we can to help our fellow Puerto Ricans who have given so much to our city and to our country,” said Speaker Melissa Mark Viverito. “Where the federal government has come up short, New York has always stepped up and it is no different in this case. This city is prepared to help Boricuas from the island with the resources and providing essential services during this dire time of need”

The City’s service center will offer in-person support and access to services to individuals affected by the hurricanes, and will be open from 9 AM to 5 PM Monday through Friday, 10 AM to 4 PM on Saturday, and 1 PM to 5 PM on Sunday. The City of New York is urging individuals planning to visit the service centers to make an appointment beginning October 18by visiting nyc.gov or call 311. (Note: the center will be closed Saturday, October 21.)

New York City government agencies, nonprofit organizations, and community-based organizations will be on-site to help connect families and individuals to critical services, including enrollment in public benefits and health insurance, food assistance, and mental health counseling.

Services provided at the center include but are not limited to:

·         Department of Social Services will assist with enrollment in SNAP benefits, cash assistance, and public health insurance, and help connect people with emergency food assistance. English and Spanish speakers will be available to assist with enrollment.
·         Department of Health and Mental Hygiene will provide mental health counseling, health insurance support, emergency pharmacy assistance and will refer individuals to medical care in collaboration with NYC Health + Hospitals. They will also provide information on immunization assistance targeted toward school enrollment.
·         Department for the Aging will provide meals to seniors, assist in case management, and assist with senior employment.
·         Department of Education will provide information and assistance for displaced students.
·         Human Resource Administration’s Office of Civil Justice will convene several legal providers to provide legal consultation to individuals in need.
·         American Red Cross of Greater New York will assist in disaster relief management — including referrals, distribution of emergency supplies, and applying for assistance — and mental health counseling. 
·         Animal Care and Control and the American Society for the Prevention of Cruelty to Animals will provide veterinary care and pet supplies.
·         The New York Disaster Interfaith Services will provide spiritual care to those in need.  

“Those individuals and families affected by these natural disasters need our help, and that includes being prepared to assist those who decided to leave their homes and come to New York City. This service center will provide those seeking refuge from these disasters with a one-stop shop for critical services, and I appreciate Mayor de Blasio’s efforts to make life a little bit easier for those who are being forced from their homes due to these natural disasters,” said Bronx Borough President Ruben Diaz Jr.

Senator Klein, Council Member Andrew Cohen, Rabbi Avi Weiss, and the Fieldston Property Homeowners Association host an Anti-Hate Forum


  Local school, religious and community leaders also join to discuss religious tolerance and acceptance in the wake of a recent hate-crime in Fieldston


Senator Jeff Klein, Council Member Andrew Cohen, and the Fieldston Property Homeowners Association hosted an Anti-Hate Forum Monday night at the Ethical Culture Fieldston School.

An eight-member panel comprised of the elected officials, educational, religious and community leaders led a discussion on religious tolerance and acceptance to our youth in light of a recent anti-Semitic hate crime in Fieldston where a teen was arrested for the incident.

“Any act of anti-Semitism is appalling and inexcusable, but when perpetrated by minors it is our duty to educate our youth on religious acceptance and tolerance. What happened in Fieldston last month is heartbreaking on many fronts. On Monday night we sent a message that hate will not be tolerated, and it’s my hope this educational forum will help deter any future hate crimes against this community,” said Senator Jeff Klein.

“We cannot tolerate any act of hatred in our community,” said Council Member Andrew Cohen. “It is important that we come together to take a strong stand against hatred, especially in light of the act of anti-Semitism that occurred last month in Fieldston. I thank all the community leaders who participated to educate our youth on kindness and tolerance.”

Rabbi Avi Weiss spoke of his past experiences with the subject, and he said that an Anti-Semite is also a Racist, while a Racist is also an also an Anti-Semite. Dr. Mehnaz Afridi who is a Muslim spoke of directing a Holocaust Museum at a Christian College Christian College. Father Tom Franks, also of Manhattan College said that while he was new to the area he was watching the events as they happen. Other members of the panel included the principals of RKA, and PS 24. Deputy Inspector Terrance O'Toole of the 50th Precinct also gave some information about the incident which happened in the Fieldston area, and what was happening now since the youngster who was arrested was getting counseling


Above - Rabbi Avi Weiss tells of his experience with incidents such as the one that happened in Fieldston.
Below - Deputy Inspector O'Toole of the 50th Precinct explains what happened, and how the youngster who was taken in is now getting counseling.


In addition to stressing the importance of religious acceptance, Senator Klein on Monday night highlighted legislation aimed at combatting hate crimes. Following the chilling rash of bomb threats to Jewish Community Centers (JCCs) last winter, Senator Klein and the Independent Democratic Conference introduced the Religious Freedom Package. One of the pieces of IDC legislation in the package addresses the Fieldston hate crime. The bill would create a specified offense for graffiti making as a hate crime. Currently graffiti vandalism is a misdemeanor, but the bill would elevate it to a felony if it’s made to target a person’s race, color, national origin, ancestry, gender, religion, religious practice, age, disability or sexual orientation.

Saturday, October 14, 2017

Scott Tucker And Timothy Muir Convicted At Trial For $3.5 Billion Unlawful Internet Payday Lending Enterprise


Defendants Exploited Over 4.5 Million Financially Struggling Americans Through Unlawful Scheme to Evade State Usury Laws

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that SCOTT TUCKER and TIMOTHY MUIR were convicted after a five-week jury trial on all fourteen counts against them, for operating a nationwide internet payday lending enterprise that systematically evaded state laws in order to charge illegal interest rates as high as 1000% on loans.

Acting Manhattan U.S. Attorney Joon H. Kim stated:  “As a unanimous jury found today, Scott Tucker and Timothy Muir targeted and exploited millions of struggling, everyday Americans by charging them illegally high interest rates on payday loans, as much as 700 percent.  Tucker and Muir sought to get away with their crimes by claiming that this $3.5 billion business was actually owned and operated by Native American tribes.  But that was a lie.  The jury saw through Tucker and Muir’s lies and saw their business for what it was – an illegal and predatory scheme to take callous advantage of vulnerable workers living from paycheck to paycheck.”

According to the allegations contained in the Superseding Indictment, and evidence presented at trial:

The Racketeering Influenced Corrupt Organizations (“RICO”) Crimes

From at least 1997 until 2013, TUCKER engaged in the business of making small, short-term, high-interest, unsecured loans, commonly referred to as “payday loans,” through the Internet.  TUCKER’s lending enterprise, which had up to 1,500 employees based in Overland Park, Kansas, did business as Ameriloan, f/k/a Cash Advance; OneClickCash, f/k/a Preferred Cash Loans; United Cash Loans; US FastCash; 500 FastCash; Advantage Cash Services; and Star Cash Processing (the “Tucker Payday Lenders”).  TUCKER, working with MUIR, the general counsel for TUCKER’s payday lending businesses since 2006, routinely charged interest rates of 600% or 700%, and sometimes higher than 1,000%.  These loans were issued to more than 4.5 million working people in all fifty states, including more than 250,000 people in New York, many of whom were struggling to pay basic living expenses.  Many of these loans were issued in states, including New York, with laws that expressly forbid lending at the exorbitant interest rates TUCKER charged.  Evidence at trial established that TUCKER and MUIR were fully aware of the illegal nature of the loans charged and in fact prepared scripts to be used by call center employees to deal with complaints by customers that their loans were illegal. 

Fraudulent Loan Disclosures

The Truth-in-Lending Act (“TILA”) is a federal statute intended to ensure that credit terms are disclosed to consumers in a clear and meaningful way, both to protect customers against inaccurate and unfair credit practices, and to enable them to compare credit terms readily and knowledgeably.  Among other things, TILA and its implementing regulations require lenders, including payday lenders like the Tucker Payday Lenders, to accurately, clearly, and conspicuously disclose, before any credit is extended, the finance charge, the annual percentage rate, and the total of payments that reflect the legal obligation between the parties to the loan.

The Tucker Payday Lenders purported to inform prospective borrowers, in clear and simple terms, as required by TILA, of the cost of the loan (the “TILA Box”).  For example, for a loan of $500, the TILA Box provided that the “finance charge – meaning the “dollar amount the credit will cost you” – would be $150, and that the “total of payments” would be $650.  Thus, in substance, the TILA Box stated that a $500 loan to the customer would cost $650 to repay.  While the amounts set forth in the Tucker Payday Lenders’ TILA Box varied according to the terms of particular customers’ loans, they reflected, in substance, that the borrower would pay $30 in interest for every $100 borrowed.

In fact, through at least 2012, TUCKER and MUIR structured the repayment schedule of the loans such that, on the borrower’s payday, the Tucker Payday Lenders automatically withdrew the entire interest payment due on the loan, but left the principal balance untouched so that, on the borrower’s next payday, the Tucker Payday Lenders could again automatically withdraw an amount equaling the entire interest payment due (and already paid) on the loan.  With TUCKER and MUIR’s approval, the Tucker Payday Lenders proceeded automatically to withdraw such “finance charges” payday after payday (typically every two weeks), applying none of the money toward repayment of principal, until at least the fifth payday, when they began to withdraw an additional $50 per payday to apply to the principal balance of the loan.  Even then, the Tucker Payday Lenders continued to assess and automatically withdraw the entire interest payment calculated on the remaining principal balance until the entire principal amount was repaid.  Accordingly, as TUCKER and MUIR well knew, the Tucker Payday Lenders’ TILA box materially understated the amount the loan would cost, including the total of payments that would be taken from the borrower’s bank account.  Specifically, for a customer who borrowed $500, contrary to the TILA Box disclosure stating that the total payment by the borrower would be $650, in fact, and as TUCKER and MUIR well knew, the finance charge was $1,425, for a total payment of $1,925 by the borrower. 

The Sham Tribal Ownership of the Business

In response to complaints that the Tucker Payday Lenders were extending abusive loans in violation of their usury laws, several states began to investigate the Tucker Payday Lenders.  To thwart these state actions, TUCKER devised a scheme to claim that his lending businesses were protected by sovereign immunity, a legal doctrine that, among other things, generally prevents states from enforcing their laws against Native American tribes.  Beginning in 2003, TUCKER entered into agreements with several Native American tribes (the “Tribes”), including the Santee Sioux Tribe of Nebraska, the Miami Tribe of Oklahoma, and the Modoc Tribe of Oklahoma.  The purpose of these agreements was to cause the Tribes to claim they owned and operated parts of TUCKER’s payday lending enterprise, so that when states sought to enforce laws prohibiting TUCKER’s loans, TUCKER’s lending businesses would claim to be protected by sovereign immunity.  In return, the Tribes received payments from TUCKER, typically one percent of the revenues from the portion of TUCKER’s payday lending business that the Tribes purported to own.  

  • In order to create the illusion that the Tribes owned and controlled TUCKER’s payday lending business, TUCKER and MUIR engaged in a series of lies and deceptions.  Among other things:MUIR and other counsel for TUCKER prepared false factual declarations from tribal representatives that were submitted to state courts, falsely claiming, among other things, that tribal corporations substantively owned, controlled, and managed the portions of TUCKER’s business targeted by state enforcement actions.

  • TUCKER opened bank accounts to operate and receive the profits of the payday lending enterprise, which were nominally held by tribally owned corporations, but which were, in fact, owned and controlled by TUCKER.  TUCKER received over $380 million from these accounts on lavish personal expenses, some of which was spent on a fleet of Ferraris and Porsches, the expenses of a professional auto racing team, a private jet, a luxury home in Aspen, Colorado, and his personal taxes.

  • Employees of TUCKER making payday loans over the phone told borrowers, using scripts directed and approved by TUCKER and MUIR, that they were operating in Oklahoma and Nebraska, where the Tribes were located, when in fact they were operating at TUCKER’s corporate headquarters in Kansas in order to deceive borrowers into believing that they were dealing with Native American tribes.

These deceptions succeeded for a time, and several state courts dismissed enforcement actions against TUCKER’s payday lending businesses based on claims that they were protected by sovereign immunity.  In reality, the Tribes neither owned nor operated any part of TUCKER’s payday lending business.  The Tribes made no payment to TUCKER to acquire the portions of the business they purported to own.  TUCKER continued to operate his lending business from a corporate headquarters in Kansas, and TUCKER continued to reap the profits of the payday lending businesses, which generated over $3.5 billion in revenue from just 2008 to June 2013 – in substantial part by charging struggling borrowers high interest rates expressly forbidden by state laws.

TUCKER, 55, and MUIR, 46, were convicted in all 14 counts in the Indictment, including one count of conspiring to commit racketeering through the collection of unlawful debt, three counts of participating in a racketeering enterprise through the collection of unlawful debt, one count of conspiring to commit wire fraud, one count of wire fraud, one count of conspiring to commit money laundering, two counts of money laundering, and five counts of violating TILA. 

Mr. Kim praised the outstanding investigative work of the St. Louis Field Office of the IRS-CI.  Mr. Kim also thanked the Criminal Investigators at the United States Attorney’s Office, the Federal Bureau of Investigation, and the Federal Trade Commission for their assistance with the case.

If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900.  For additional information, go to:


Statement Of Acting U.S. Attorney Joon H. Kim On The Convictions Of Scott Tucker And Timothy Muir For Unlawful Payday Lending Enterprise

  Acting Manhattan U.S. Attorney Joon H. Kim stated:  “As a unanimous jury found today, Scott Tucker and Timothy Muir targeted and exploited millions of struggling, everyday Americans by charging them illegally high interest rates on payday loans, as much as 700 percent.  Tucker and Muir sought to get away with their crimes by claiming that this $3.5 billion business was actually owned and operated by Native American tribes.  But that was a lie.  The jury saw through Tucker and Muir’s lies and saw their business for what it was – an illegal and predatory scheme to take callous advantage of vulnerable workers living from paycheck to paycheck.”

A.G. Schneiderman Announces Multistate Lawsuit To Defend Health Care Subsidies


Cutting Off Payments Will Jeopardize Health Care For New York’s Most Vulnerable, Destabilize Healthcare Market, And Lead To Rising Insurance Rates For New Yorkers
19 Attorneys General File Suit To Protect Affordable Health Care
  New York Attorney General Eric T. Schneiderman announced a new multistate lawsuit filed by 19 Attorneys General to defend the health care subsidies on which thousands of New Yorkers and millions of Americans rely.
Last night, President Trump announced that his administration will cut off the Affordable Care Act’s cost-sharing reduction payments, which reduce co-payments, deductibles, and other out-of-pocket costs for low-income Americans. Under the Affordable Care Act, these payments are made monthly to insurance companies. Cutting off the subsidies would destabilize the healthcare market; New York insurance plans alone would take a hit of millions of dollars in money that had previously been budgeted, and insurance rates will rise for New Yorkers.
“These subsidies make critical health care affordable for our most vulnerable,” said Attorney General Schneiderman. “President Trump’s move to cut these subsidies is a reckless assault on the health care of thousands of New Yorkers and millions of Americans. I will not allow President Trump to use New York families as political pawns in his dangerous and partisan campaign to sabotage our healthcare system.”
“Unable to move the repeal of the Affordable Care Act in Congress, President Trump is now attempting to administratively dismantle the ACA bit by bit. His actions will slash benefits and raise premiums, and it will single handedly destabilize insurance markets. ‎In New York, we will not stand silently by as the federal government tries to take away health care from New Yorkers. As President Trump executes on his mission to strip health care protection from those who need it most, we are proud to be joining states across the nation to sue the federal government and protect our health care. We will not go backwards,” said Governor Andrew Cuomo.
Click here to read the multistate lawsuit, which was filed this afternoon in the Northern District of California by the Attorneys General of New York, California, Connecticut, Delaware, Illinois, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and the District of Columbia.
The lawsuit argues that the federal government is required to make these payments under law, and failure to do so would be “contrary to the law” and “arbitrary and capricious” in violation of the Administrative Procedure Act.
In May, Attorney General Schneiderman and California Attorney General Xavier Becerra, leading a coalition of Attorneys General, moved to intervene in House v. Price in order to protect millions of Americans’ access to affordable health care. The DC Circuit granted their intervention in August.

A.G. Schneiderman: We Will Sue To Defend Health Care Subsidies


A.G. Schneiderman Leads Coalition Of AGs That Intervened In Defense Of Cost-Sharing Subsidies

"Hundreds of thousands of New York families rely on the Affordable Care Act’s subsidies for their health care - and again and again, President Trump has threatened to cut off these subsidies to undermine our healthcare system and force Congress to the negotiating table. That's unacceptable. 
"I will not allow President Trump to once again use New York families as political pawns in his dangerous, partisan campaign to eviscerate the Affordable Care Act at any cost.
"This summer, the courts granted our intervention to defend these vital subsidies and the quality, affordable health care they ensure for millions of families across the country. Our coalition of states stands ready to sue if President Trump cuts them off."
In May, Attorney General Schneiderman and California Attorney General Xavier Becerra, leading a coalition of 18 Attorneys General, moved to intervene in House v. Price in order to protect millions of Americans' access to affordable health care. The DC Circuit granted their intervention in August.

Bronx Chamber of Commerce to Honor Six Distinguished Individuals for Their Contributions to the Bronx at Annual BCC Italian Heritage Luncheon:


NEWS From the Office of the New York State Comptroller Thomas P. DiNapoli


DiNapoli: Billions Needed for Repairs to Local Bridges

Repair Costs Are Major Fiscal Challenge for Local Governments

  Bridges owned by New York’s local governments need an estimated $27.4 billion in repairs, according to a report released today by New York State Comptroller Thomas P. DiNapoli.
While the cost for repairs is staggering, DiNapoli’s report found the number of "structurally deficient" locally-owned bridges has declined in recent years. But concerns about how local governments will find funding for repairs is growing as Washington considers changes to infrastructure aid.
"Local communities are facing a big price tag for maintaining and repairing bridges,” DiNapoli said. "These structures are aging and the cost for repairs will likely only increase over time. Many local governments understand the importance of long-term planning for their infrastructure needs but they will need help. While the state has taken steps to make funds for repairs available, the assistance of the federal government has also been critical. Difficult decisions lie ahead, but these infrastructure needs must be addressed."
Local governments, mostly counties, own 8,834 out of 17,462 bridges in the state. These bridges carry average daily traffic of nearly 33.4 million vehicles. DiNapoli’s report found local bridges are more likely to be structurally deficient than state-owned bridges (12.8 percent to 9 percent). “Structurally deficient” bridges that remain open are considered safe to drive on, but either have load-bearing elements in poor condition or are prone to repeated flooding.
The overall percentage of structurally deficient local bridges declined from 16.7 percent to 12.8 percent from 2002 to 2016, while the state’s percentage was relatively flat at around 9 percent.
Town-owned bridges are more likely to be structurally deficient (18.4 percent) than other local bridges. The highest number of structurally deficient local bridges are located in New York City (86), followed by the counties of Erie (52), Ulster (46) and Steuben (40). The counties with the highest percentage of structurally deficient local bridges are Seneca (34.6 percent), Cayuga (27.6 percent) and Hamilton (23.8 percent).
Regionally, New York City has the highest proportion of functionally obsolete bridges (75.9 percent), followed by Long Island (40.6 percent) and the Mid-Hudson Valley (26.9 percent). “Functionally obsolete” bridges, though not structurally unsound, fail to meet current design standards for the amount of traffic carried. Those structures may have inadequate lane or shoulder widths, low clearances or low load-carrying capacity. DiNapoli’s report notes the challenge of improving older infrastructure in developed areas, which have limited space to expand bridge structures to handle increased traffic flows or meet current design standards.
The total cost of needed repairs to all 17,462 highway bridges in the state was estimated at $75.4 billion in 2016 according to the U.S. Department of Transportation's Federal Highway Administration National Bridge Inventory. For local bridges, those in New York City have the highest estimated costs at $20.4 billion, nearly three-quarters of the $27.4 billion estimated for all local bridges.
Municipalities are generally responsible for the costs of their locally owned bridges. However, they generally receive assistance from the state and federal government. Excluding assistance to address severe winter weather damage, funding levels for traditional state aid programs (Marchiselli Aid and CHIPs) have remained flat in recent years. In 2016, the state created the BRIDGE NY program to support local bridges and culverts. As of January 2017, the state Department of Transportation had awarded $200.4 million to fund 132 local bridge and culvert projects statewide.
The federal government also provides aid for local bridge projects, primarily through Federal Highway Administration programs. These grants generally can fund up to 80 percent of eligible costs with the state or local government coming up with the remainder. In addition, the Federal Emergency Management Agency provides grants for damage caused by natural disasters or emergencies, including repairs to damaged bridges.
An interactive online tool with county-level data on New York’s bridges is available at: http://wwe1.osc.state.ny.us/localgov/bridges/bridges.cfm
For access to state and local government spending, public authority financial data and information on 140,000 state contracts, visit Open Book New York. The easy-to-use website was created by DiNapoli to promote transparency in government and provide taxpayers with better access to financial data.

Friday, October 13, 2017

Founder And Ceo Of Wright Time Capital Group Pleads Guilty To Commodities Fraud


  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MICHAEL S. WRIGHT pled guilty today before U.S. District Judge Paul A. Engelmayer to commodities fraud in connection with WRIGHT’s operation of an investment fund, Wright Time Capital Group (“WTCG”).  WRIGHT induced victims to invest in his fund by misrepresenting the historical trading performance of WTCG, and, after obtaining investor funds, misappropriated a large portion of them for his personal use and benefit.  Additionally, after losing most of the funds he actually invested in unsuccessful forex trades, WRIGHT hid those losses from investors by issuing fake account statements and began operating WTCG as a Ponzi scheme, obtaining funds from new investors and using those funds to make payments to earlier investors who were demanding the return of their investments. 

Acting U.S. Attorney Joon H. Kim said:  “Michael Wright used WTCG as his personal piggy bank, issuing fraudulent account statements that covered up the losses WTCG incurred, and ultimately operating WTCG as a Ponzi scheme.  Thanks to the dedicated work of the FBI, Wright will now be held to account for his fraudulent scheme.” 

According to the Complaint, the Indictment, and other statements made in open court:

WRIGHT started WTCG in January 2011, and ultimately obtained more than $400,000 in investments from victims (the “Victims”).  In his pitch to potential investors, WRIGHT misrepresented WTCG’s investment performance, falsely claiming that he had achieved double-digit gains through forex trading in WTCG’s first six months of existence.  In fact, from the outset of WTCG, WRIGHT earned little to no money through his forex trading, and WRIGHT repeatedly falsified account statements to the Victims.  Additionally, after obtaining Victim funds, WRIGHT did initially purchase some forex trades on their behalf, but then began to steal their money, using investor funds to pay for personal expenses, including hotel stays, travel, and tattoos. 

Eventually, WRIGHT operated WTCG as a Ponzi scheme, soliciting funds from new investors in order to use their funds to make payments to other Victims who were demanding the return of their investments.  

WRIGHT, 30, of Rockville Centre, New York, pled guilty to one count of commodities fraud, which carries a maximum sentence of 10 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.

WRIGHT is scheduled to be sentenced by Judge Engelmayer on January 25, 2018, at 10:00 a.m.

Mr. Kim praised the efforts of the FBI in this investigation