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Safeguarding our rights
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Saturday, July 28, 2018
SAGE - From Invisible to the Spotlight
Friday, July 27, 2018
Former New York State Assembly Speaker Sheldon Silver Sentenced To 7 Years In Prison
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that former New York State Assembly Speaker SHELDON SILVER was sentenced this afternoon to seven years in prison after having been found guilty a second time by a federal jury of using his official position to obtain nearly $4 million in bribes in exchange for his official acts and obtaining another $1 million through laundering the proceeds of his crimes. SILVER had previously been found guilty of the same offenses by a jury in November 2015, but the conviction was overturned by the U.S. Court of Appeals for the Second Circuit as a result of the Supreme Court’s decision in McDonnell v. United States.
SILVER was sentenced in Manhattan federal court by U.S. District Judge Valerie E. Caproni, who also presided over the two-week jury trial.
U.S. Attorney Geoffrey S. Berman said: “When he assumed his powerful position at the top of New York State government, Sheldon Silver took an oath to do the work of the people. Instead, he leveraged his tremendous influence to pad his bank account and line his pockets. Sheldon Silver has been given a lengthy sentence of seven years in federal prison. We hope today’s fittingly stiff sentence sends a clear message: brokering official favors for your personal benefit is illegal and will result in prison time. I thank the career prosecutors of this Office for their perseverance in this important case for the people of New York.”
According to the evidence introduced at trial, court filings, and statements made in Manhattan federal court:
For more than two decades, SHELDON SILVER served as Speaker of the New York State Assembly, a position that gave him significant power over the operation of state government. SILVER used this immense power – including, in particular, his power over the real estate industry and his control over certain health care funding – to unlawfully and corruptly enrich himself. Among other things, SILVER unlawfully solicited and obtained client referrals worth millions of dollars in exchange for his official acts, and attempted to disguise this money as legitimate outside income earned from his work as a private lawyer. In particular, SILVER claimed, on financial disclosure forms required to be filed with New York State and in public statements, that the millions of dollars he received in outside income while also serving as Speaker of the Assembly came from a Manhattan-based law firm, Weitz & Luxenberg P.C., where SILVER claimed to work representing individual clients in personal injury actions. These claims were materially false and misleading – and made to cover up unlawful payments SILVER received due to his official power and influence as an elected legislator and the Speaker of the Assembly.
The schemes provided SILVER with two different streams of unlawful income: (i) approximately $700,000 in kickbacks SILVER received by steering two real estate developers with business before the state legislature to a law firm with which he was associated, and (ii) more than $3 million in asbestos client referral fees SILVER received by, among other official acts, awarding $500,000 in state grants to a university research center of a physician who referred patients made ill by asbestos to Weitz & Luxenberg.
Unlawful Income From a Real Estate Law Firm
SILVER, a lawyer, entered into a corrupt relationship with Jay Arthur Goldberg, P.C., later known as Goldberg & Iryami, P.C., which specialized in making applications to New York City to reduce taxes assessed on properties. Beginning in at least approximately 2000, SILVER approached a prominent developer of residential properties in Manhattan, Glenwood Management Corp. (“Glenwood”), and later approached another developer, The Witkoff Group LLC (“Witkoff”), and asked them to hire Goldberg & Iryami. The developers – both of whom lobbied SILVER and others on real estate issues because their businesses depended heavily on favorable state legislation – agreed to use Goldberg & Iryami as SILVER had requested. Over the years, Witkoff and Glenwood paid millions of dollars in legal fees to Goldberg & Iryami. SILVER received a cut from the legal fees amounting to nearly $700,000. SILVER had no public affiliation with Goldberg & Iryami and performed no legal work to earn those fees, which were payments for SILVER having arranged the business through his official power and influence.
While continuing to receive the fees and in furtherance of the scheme, SILVER took official action beneficial to Glenwood and Witkoff. For example, while SILVER was publicly associated with advocating for tenants, a proposal that benefitted Glenwood was in substantial part enacted in real estate legislation in 2011 with SILVER’s support. SILVER also approved more than $1 billion dollars in state financing for Glenwood.
Unlawful Income From Asbestos Client Referrals
SILVER also entered into a corrupt arrangement with Dr. Robert Taub, who was a leading physician specializing in the treatment of asbestos-related diseases, through which SILVER issued state grants and otherwise used his official position to provide favors to Dr. Taub and his family so that Dr. Taub would refer and continue to refer his patients to SILVER at Weitz & Luxenberg, a firm with which SILVER was affiliated as counsel. Specifically, SILVER arranged for New York State to fund two grants – each for $250,000, and paid out of a then-secret and un-itemized pool of funds controlled entirely by SILVER – for a research center Dr. Taub had established. SILVER used his official position to provide Dr. Taub with other benefits as well, including helping to direct $25,000 in state funds to a not-for-profit organization for which one of Dr. Taub’s family members served on the board, and asking the CEO of a second not-for-profit to hire a second family member of Dr. Taub.
From approximately 2005 until his arrest, SILVER received more than $3 million from legal fees Weitz & Luxenberg received from patients Dr. Taub had referred to SILVER at the firm while SILVER was agreeing to and taking official actions to benefit Dr. Taub. SILVER did no legal work whatsoever on these asbestos cases, his sole role having been to use his official position and access to state funds to induce Dr. Taub to provide him with these lucrative referrals.
Silver’s Efforts to Cover Up the Schemes
SILVER took various efforts to disguise his unlawful outside income and prevent the detection of his criminal schemes. For years, SILVER listed on his official public disclosure forms that his outside income consisted of “limited practice of law in the principal subject area of personal injury claims on behalf of individual clients,” which was false and misleading. Beginning in 2010, SILVER’s disclosures changed to state that the source of his legal income was a “Law Practice” that “includ[ed]” being of counsel to Weitz & Luxenberg. SILVER never disclosed his relationship with Goldberg & Iryami or any work beyond what he claimed was a “personal injury” practice.
SILVER also repeatedly made false and misleading statements about his outside work and income in his public statements, including the following:
- SILVER claimed he performed legal work consisting of spending several hours each week evaluating legal matters brought to him by potential clients and then referring cases that appeared to have merit to lawyers at Weitz & Luxenberg. In fact, SILVER did no such work on the asbestos cases and obtained those referrals to Weitz & Luxenberg based on his corrupt arrangement with Dr. Taub.
- SILVER claimed his law practice involved the representation of “plain, ordinary simple people.” In fact, SILVER steered legal work to Goldberg & Iryami for some of the largest real estate developers in the state, for which favorable state legislation was critical to their business interests.
- SILVER claimed through his spokesperson that SILVER principally found clients by virtue of his having been a “lawyer for more than 40 years,” in a manner that was “not unlike any other attorney in this state, anywhere.” In fact, SILVER received money from referring his lucrative asbestos and real estate developer clients solely by virtue of his official position.
- SILVER stated through his spokesperson that “[n]one of his clients have any business before the state.” In fact, SILVER’s outside income included millions of dollars of fees obtained through Glenwood and Witkoff, both of which had significant business before the state, and Dr. Taub, to whose benefit SILVER provided state funding and other benefits related to SILVER’s official position.
In addition, SILVER attempted to thwart the Moreland Commission to Investigate Public Corruption, by filing legal motions on behalf of the Assembly and taking other action to block the Moreland Commission’s investigation into legislators’ outside income.
Finally, SILVER laundered part of crime proceeds through private investment vehicles, not available to the public, which yielded him another $1 million in ill-gotten gains.
In addition to the prison sentence, SILVER, 74, of New York, New York, was sentenced to three years of supervised release.
SILVER was found guilty by a unanimous jury on May 11, 2018, of two counts of honest services wire fraud, two counts of honest services mail fraud, two counts of extortion under color of official right, and one count of engaging in illegal monetary transactions.
U.S. Attorney Berman praised the work of the Special Agents of the United States Attorney’s Office and the Federal Bureau of Investigation, which jointly conducted this investigation.
Eight Men Sentenced In Manhattan Federal Court For Their Roles In Bronx Mail Theft Conspiracy
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that eight defendants have been sentenced to prison terms by United States District Judge Gregory H. Woods for their participation in a long-running scheme to steal mail from Bronx mailboxes. All eight defendants previously pled guilty before Judge Woods. Between May 2015 and at least January 2017, BRIAN MARTE, a/k/a “Trini Rabiia,” ERICKSON BATISTA, a/k/a “Niike Batista,” JUNIOR TAVERAS, a/k/a “Tuh Relambio,” ANGEL ARISTY, a/k/a “Frekiitho Lindo Colon,” LUIS ROSADO, a/k/a “El Menolsito Tejada,” EOSCATERYS POLANCO, BRAYAN RODRIGUEZ, a/k/a “New Black El Paisano,” and RONARDO BAEZ, a/k/a “Tuchokoo Baez,” the defendants, each participated in a scheme to steal mail and deposit stolen checks and money orders using other individuals’ debit cards.
U.S. Attorney Geoffrey S. Berman said: “These defendants ‘fished’ for checks and money orders from U.S. Postal Service mailboxes like shooting fish in a barrel, and in doing so caused serious harm to Bronx residents. As a result of their crimes, the defendants have been delivered to the criminal justice system and will now serve prison sentences.”
According to the Indictment filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:
Since 2015, U.S. Postal Inspection Service (“USPIS”) and other local and federal agencies, including the New York City Police Department (“NYPD”), Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, have been investigating mail theft from mailboxes in the Bronx, New York. The investigation has revealed that individuals steal mail either by illicitly obtaining mail box keys or by “fishing.” Fishing involves inserting homemade mail theft devices into mailboxes located on street corners or other publicly accessible places. After gaining access to the mail in the mailbox, a thief typically will remove any mail that appears to contain checks or money orders. During the beginning and end of the month, when many people mail checks for rent and bills, a thief can steal checks worth tens of thousands of dollars in a single night.
After perpetrators fish checks and money orders out of mailboxes, they sell the checks and money orders to others, remove the payees’ names by “washing” the checks and money orders, or simply deposit the checks and money orders into a bank account. In various iterations of the scheme, those bank accounts have belonged to the mail thieves, to complicit account holders, or to unsuspecting third parties whose debits cards or personal identifying information have been stolen.
Since late 2015, USPIS and NYPD enforcement operations have resulted in over 50 state arrests of individuals for theft of mail in the Claremont Park area of the Bronx, and over $750,000 in checks and money orders has been traced to these mail theft schemes. The eight defendants sentenced by Judge Woods each participated in these related schemes. Additionally, MARTE illegally possessed a defaced firearm.
POLANCO, 24, of the Bronx, New York, was sentenced by Judge Woods on July 25, 2018, to a total term of 24 months in prison, and five years of supervised release.
BATISTA, 26, of the Bronx, New York, was sentenced by Judge Woods on May 18, 2018, to a total term of 30 months in prison, and three years of supervised release.
RODRIGUEZ, 24, of the Bronx, New York, was sentenced by Judge Woods on May 16, 2018, to a total term of seven months in prison, and three years of supervised release.
ROSADO, 21, of the Bronx, New York, was sentenced by Judge Woods on April 17, 2018, to a total term of six months in prison, and three years of supervised release.
MARTE, 21, of the Bronx, New York, was sentenced by Judge Woods on April 5, 2018, to a total term of 27 months in prison, and three years of supervised release.
TAVERAS, 20, of the Bronx, New York, was sentenced by Judge Woods on March 27, 2018, to a total term of 24 months in prison, and one year of supervised release.
ARISTY, 20, of the Bronx, New York, was sentenced by Judge Woods on March 26, 2018, to a total term of 11 months in prison, and three years of supervised release.
BAEZ, 22, of the Bronx, New York, was sentenced by Judge Woods on March 19, 2018, to a total term of six months in prison, and three years of supervised release.
In addition to the prison terms, Judge Woods also ordered that the defendants pay over $150,000 in restitution to victims of the offenses.
Mr. Berman praised the outstanding investigative efforts of the USPIS and NYPD.
12 Members Of Bronx Crew Charged In Manhattan Federal Court With Narcotics Offenses
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging 12 members of a crew operating in and around the Murphy Houses and the Lambert Houses in the Bronx with participating in a narcotics conspiracy.
A total of eight defendants were taken into custody today; seven were arrested in the Bronx, and one defendant was arrested in Delaware. Four defendants remain at large. The seven defendants arrested in the Bronx will be presented and arraigned before U.S. Magistrate Judge James L. Cott later today. The case is assigned to U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants conspired to sell narcotics in a number of locations, including the Murphy Houses, a NYCHA development. NYCHA residents, and all New Yorkers, should be free to go about their daily lives free from the scourge of narcotics trafficking. Thanks to the excellence of our partners at HSI and the NYPD, these defendants now face federal charges for bringing drugs to our buildings and to our streets.”
HSI Special Agent-in-Charge Angel M. Melendez said: “These crew members allegedly pushed crack cocaine and heroin in low income neighborhoods of the Bronx. The alleged dealers have no regard for their neighbors as long as they are making a profit, which is why we will continue to partner with NYPD in these investigations to remove the drugs, and those who push it, off city streets.”
NYPD Commissioner James P. O’Neill said: “Today’s indictment is a perfect example of how well the law enforcement community works together to dismantle drug organizations and put these criminals behind bars. Removing them from our streets sends a clear message to others who many choose to engage in similar activity. These substances cause immeasurable damage in our neighborhoods, and we will remain vigilant in our commitment to expose and arrest anyone who poses such a threat to the safety of New Yorkers.”
As alleged in the Indictment unsealed today in Manhattan federal court and in other court papers and proceedings[1]:
From 2016 up to June 2018, KAWAIN NELSON, a/k/a “Kobe,” a/k/a “Kobi,” a/k/a “Slope,” JAMES CROOMS, a/k/a “Butter,” ANTHONY CORLEY, a/k/a “Tone,” ALBERT COLLINS, a/k/a “A,” DARRELL HUDSON, a/k/a “Skip,” JONATHAN PADILLA, SILVIO CIPRIAN, a/k/a “T.P.,” LAMAR GRIFFIN, a/k/a “Louch,” JACKIE COOPER, a/k/a “Jack,” SHARON HATCHER, ALLEN WALKER, a/k/a “Fat Boy,” and EFRAIN REYES, a/k/a “Stone,” participated in a conspiracy to distribute and possess with the intent to distribute crack cocaine, heroin, marijuana in and around the Murphy Houses, a public housing complex, and the Lambert Houses, an affordable housing development, in the Bronx.
A chart containing the names and maximum penalties for the defendants is set forth below. The maximum potential sentences in this case 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. Berman praised the outstanding investigative work of HSI and the NYPD’s Bronx Violent Crimes Squad.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sarah Krissoff, Gina Castellano, and Frank Balsamello are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
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CHARGE
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DEFENDANTS
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MAX. PENALTIES
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1
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Narcotics
Conspiracy
21 U.S.C. § 846
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KAWAIN NELSON, 32
JAMES CROOMS, 31
ANTHONY CORLEY, 35
ALBERT COLLINS, 28
DARRELL HUDSON, 28
JONATHAN PADILLA, 29
SILVIO CIPRIAN, 30
LAMAR GRIFFIN, 28
JACKIE COOPER, 53
SHARON HATCHER, 51
ALLEN WALKER, 38
EFRAIN REYES, 49
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Life in prison
Mandatory minimum of 10 years in prison
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[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Cuomo Touts ‘New System for Accountability’ After Allowing Old System to Fail for Nearly 8 Years
Today in a transparent attempt to distance himself from the growing corruption scandals surrounding his administration, Governor Cuomo claimed that “changes have been made to how spending is done for economic development” and touted a “new system of accountability”.
“It only took 8 years, 2 trials, 6 convictions, and $850 million in corrupt contracts for the Governor to decide that we need more accountability,” said Cynthia for New York spokeswoman Lauren Hitt. “We need more than a new system. We need a new administration.”
Former Mayor Dinkins Endorses Alessandra Biaggi
David N. Dinkins, 106th Mayor of the City of New York, issued the following statement today endorsing Alessandra Biaggi in the Thursday, September 13 Democratic primary for State Senate in the 34th District:
“New York needs real Democrats in the State Senate to pass laws that serve all New Yorkers; laws that protect and expand affordable housing, make it easy for everyone to vote, ensure universal healthcare for everyone, provide every child in every zip code access to quality education, assure a women’s right to choose, guarantee equal justice for all, and so much more. Alessandra Biaggi is a leader in the fight to protect the constituents in her community and all New Yorkers. I am proud to support Alessandra Biaggi and I urge others to do the same.”
Biaggi has previously been endorsed by City Comptroller Scott Stringer, City Council Speaker Cory Johnson, Assemblymember Yuh-Line Niou, former Congressmen Charles Rangel and Lester Wolff, and former Attorney General G. Oliver Koppell.
Biaggi said, “Thank you Mayor Dinkins for recognizing the importance of having true Democrats in the State Senate who will work for legislation that will ensure that all New Yorkers can participate in picking their representatives and for a State government that serves the interests of all New Yorkers and not the special interests who make big campaign contributions.”
PAVE BABY PAVE: MAYOR ANNOUNCES PROGRESS ON EFFORTS TO AVOID CUTTING OPEN FRESHLY PAVED STREETS FOR UTILITY WORK
New pilot on Staten Island mandates interagency cooperation and coordination to prevent fresh asphalt being marred with so-called “street cuts”; Since 2014, DOT has repaved a record 786 lane miles on Staten Island, nearly half of the borough’s streets
STATEN ISLAND—Mayor Bill de Blasio today announced progress on new efforts at coordination among City agencies and utilities to avoid “street cuts” to freshly paved streets.
“Street cuts annoy everyone, and we want to make sure they bother people after a fresh re-paving as little as possible,” said Mayor de Blasio. “We have done more to re-pave streets across Staten Island than ever before, and now this program will help keep freshly paved streets undisturbed for longer. We look forward to continue working with Borough President Oddo on this.”
Back in May, the Mayor had announced that New York City had paved 5,000 lane-miles since 2014; under the de Blasio Administration, nearly 786 lane miles have been paved on Staten Island, nearly half of the borough’s streets. Noting that progress, the Mayor had also acknowledged the frustration of elected leaders like Staten Island Borough President Jimmy Oddo, who had called on the City to better counter the incidence of freshly paved streets being reopened for utility work.
“I freely admit that I drive Staten Island at times solely to look for street cuts,” said Borough President Jimmy Oddo. “This is how obsessive I have become over this issue. Why? For several reasons. They are literally undercutting one of the best things Mayor de Blasio has done during his tenure – our “Pave, Baby, Pave” campaign of historic levels of resurfacing of our streets. Street cuts waste taxpayer dollars. Street cuts rob our quality of life. Streets cuts are an example of poor planning, antiquated rule making, and a lack of coordination and collaboration. We can do much better. I value the ongoing dialogue I have had with the Mayor and Deputy Mayor Laura Anglin. The proposed changes are a good start. I have other specific suggestions I want to see implemented, and clearly we have more work to do. But, we have the attention of the Mayor. We have a very capable Deputy Mayor leading the undertaking, and finally we have a genuine effort to end the street cut status quo and bring about a more appropriate process that helps ensure we have better roads for a longer period of time.”
The Mayor noted progress since that initial announcement:
Street Cuts Policy Working Group – All City capital agencies, including Transportation (DOT), Environmental Protection (DEP) and Design and Construction (DDC) now meet monthly with senior representatives from utility companies to share plans and coordinate work. This group focuses on higher-level structural issues to maintain City policy of strongly discouraging any street cuts in the first two years after a given street is repaved by DOT -- including through emerging trenchless technologies and ensuring quality restoration.
Improved DEP/DOT Coordination – The agency that paves streets and the agency that is responsible for the City’s water systems are also coordinating their work, including by:
· As part of a new pilot program on Staten Island, DEP will coordinate inspection and repair of its manholes and catch basins with DOT’s paving schedule. After a roadway is milled, DEP crews will use the two to three week period before repaving to inspect manholes and catch basins and make any necessary repairs. This will significantly reduce the need for DEP to open the roadway for a non-emergency repair during the two-year protected window.
· DEP has increased staffing, hiring seven additional supervisors to work with DOT to better coordinate restoration of City streets.
Improved DEP/DDC Coordination Around Manhole Covers – Aging and defective manhole covers are among the most challenging of issues around paving and restoring streets. To address this challenge, DEP has procured 5 manhole restoration contracts with DDC. As part of this work, defective manhole covers and hardware will be repaired and/or replaced. In addition, manhole covers will be raised where necessary and defective areas around manholes will be restored. These contracts are valued at a total of $13.6 million, of which $2.75 million is dedicated to Staten Island.
Increased DDC work on Pedestrian Ramps – To increase accessibility, hundreds of sidewalk pedestrian ramps on Staten Island require construction or restoration. DDC’s pedestrian ramp contractor in Staten Island has agreed to implement final restoration upon completion of pedestrian ramps at all locations (i.e., no temporary restoration allowed). The FY18 Pedestrian contract just bid included such requirements and we have scheduled a Pre-Award with low bidder to make sure the bidder read and understands the new requirements will be fully enforced.
Other DEP Improvements as Part of Street Cut Coordination Efforts:
· Begin using excavation markers to quickly identify any defects in DEP street cuts.
· DEP will this month begin a pilot saw cutting of excavations in Staten Island for a smoother restoration of streets.
· Maximize DEP in-house paving crews to address restorations: DEP has allocated and maximized in-house paving crews to address restorations.
Agency Coordination with National Grid – The utility that provides most of New York City’s natural gas, has provided the City with its comprehensive multi-year capital plan, which will allow for improved coordination with all City agencies going forward.
“We certainly understand the frustration of residents who see a street, freshly paved by our Roadways team, dug up for utility work,” said DOT Commissioner Polly Trottenberg. “The coordination efforts that we have begun, led by the Staten Island pilot inspired by Borough President Oddo, should make a big difference.”
“DEP has had many productive talks with Staten Island Borough President James Oddo on street cuts and we are looking forward to coordinating with DOT and DDC on this pilot program to better repair our infrastructure so that any necessary work minimizes the impact on newly paved roadways,” said DEP Commissioner Vincent Sapienza.
EDITOR'S NOTE:
The above is great news for Staten Island residents, but doesn't do a darn thing for Bronx drivers who constantly have to put up with streets that are being dug up, poorly repaired, and then dug up again because the utility work has to be redone since it was not done correctly the first time. That results in even more repairs having to be done to Bronx streets, and to Bronx drivers cars.