News From Assemblywoman Nathalia Fernandez

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Bronx Man Sentenced To 24 Years In Prison For Violent Robbery

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John B. DeVito, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, Commissioner of the Police Department for the City of New York (“NYPD”), announced that WILFREDO SEPULVEDA, a/k/a “Dionico de la Cruz Rodriguez,” a/k/a “Tonito,” was sentenced yesterday in Manhattan federal court by United States Circuit Judge Richard J. Sullivan to 24 years in prison.  SEPULVEDA was convicted of narcotics and robbery charges after a five-day trial in March 2019. 

U.S. Attorney Geoffrey S. Berman said:  “The defendant carried out a violent robbery to steal drugs and cash.  In doing so, he threatened the lives of multiple innocent victims.  I would like to extend my gratitude to the ATF and NYPD for their outstanding work in ensuring that the defendant faced the justice he deserved.”

ATF Special Agent-in-Charge John B. DeVito stated:  “The defendant committed various acts of violence where he brandished knives and firearms and terrorized others for narcotics and money.  These acts threatened the lives of both rival dealers and innocent citizens on the street.  The core of the ATF mission is to protect the public from violent crime.  To that end, we will work tirelessly with our partners to bring individuals bent on committing violent acts to justice.  I would like to thank the members of the ATF/ NYPD SPARTA Task Force for their diligent work on this case.  I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”

NYPD Commissioner James P. O’Neill stated:  “I want to commend our law enforcement partners for bringing justice in this violent case.  Working together, our quest to investigate and solve crime, and to keep New York and its residents safe, continues.”

According to the allegations contained in the Indictments, evidence presented at trial, and other court documents previously filed in Manhattan federal court:

In the spring of 2018, SEPULVEDA spent months plotting to rob his source of narcotics.  On May 14, 2018, SEPULVEDA disguised himself in a wig and a dress, armed himself with a gun and a knife, and went to his drug dealer’s apartment to commit the robbery.  Inside the apartment, SEPULVEDA encountered the dealer’s 83-year-old mother-in-law, who, at the time, was home alone.  SEPULVEDA brandished the knife and firearm, threatened that elderly victim’s life, and then ransacked the apartment. After SEPULVEDA found approximately 1.5 kilograms of narcotics and $13,000 in cash, he fled the apartment and encountered a neighbor who attempted to intervene.  The neighbor chased SEPULVEDA onto the street where SEPULVEDA engaged in a struggle with the neighbor near a school.  During the struggle, SEPULVEDA brandished a firearm and threatened the neighbor’s life.  Shortly thereafter, police responded to the scene of the crime, placed SEPULVEDA under arrest, and recovered the firearm, narcotics, and cash, as well as the dress and wig SEPULVEDA had used as a disguise.

In addition to his prison term, SEPULVEDA, 41, of the Bronx, New York, was also sentenced to five years of supervised release.

Mr. Berman praised the investigative work of the NYPD and the ATF, and in particular the Strategic Patterned Armed Robbery Technical Apprehension (“SPARTA”) Task Force, which is composed of agents and officers of the ATF and the NYPD.

Former Construction Manager Pleads Guilty To Tax Evasion In Connection With Bribery Scheme

Defendant, Awaiting Sentencing in State Bribery Case, Pleads Guilty to Evading Taxes on Those Bribes

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL CAMPANA, a construction manager for a global financial firm, pled guilty today to charges of evading taxes on more than $350,000 in bribes he received from building sub-contractors.  The bribes included payments of more than $75,000 to cover expenses associated with CAMPANA’s wedding.  CAMPANA is scheduled to be sentenced on March 6, 2020, before United States District Judge Denise Cote.  Thereafter, he also faces sentencing in New York State court on money laundering charges for his participation in the bribery scheme.

U.S. Attorney Geoffrey S. Berman said:  “Bribery and tax evasion often go hand-in-hand, forcing both the bribery victims and the taxpaying public to unfairly bear the hidden costs of corruption.  Today, Michael Campana admitted to federal tax evasion for failing to report his income from an illegal bribery scheme to which he already pled guilty.”

According to the criminal Information filed today, as well as other public documents and today’s court proceeding:

Between 2013 and 2017, CAMPANA was a construction manager for a global financial firm engaged in various building projects in New York City and elsewhere.  He and others participated in a scheme to obtain bribes from construction sub-contractors, who paid bribes in exchange for being awarded various construction contracts and sub-contracts.  In all, CAMPANA received bribes in excess of $350,000 between 2014 and 2017.  Some of those bribes related to CAMPANA’s 2017 wedding, including payments of approximately $40,000 from sub-contractors directly to a catering hall in New Jersey, over $13,000 directly to a photography studio, and over $23,000 directly to a travel agent for airline tickets purchased in connection with CAMPANA’s honeymoon.  Other payments, totaling more than $100,000, were made in cash, which CAMPANA stashed in a safe.  CAMPANA evaded federal income tax on this bribery income, by failing to declare it on his income tax returns for the years 2014 through 2017.

In connection with the underlying bribery scheme, the Manhattan District Attorney’s Office charged CAMPANA and 13 others in December 2018 with numerous felonies, including charges of conspiracy, commercial bribery, and money laundering.  Last week, on November 19, CAMPANA pled guilty in the state court case to money laundering in the third degree.  (New York v. Guzzone, et al., case no. 04037-2018 (N.Y. Sup. Ct.), count 44).  He is awaiting sentencing in that case as well. 

CAMPANA, 33, of Tuckahoe, New York, pled guilty today to a single count of tax evasion.  That charge carries a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution.  The maximum potential sentence 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. Berman praised the excellent work of the Internal Revenue Service.

MAYOR DE BLASIO SIGNS ANIMAL RIGHTS LEGISLATION INTO LAW

Package of legislation builds on the Administration’s commitment to the welfare and humane treatment of animals

  Mayor Bill de Blasio today signed a new package of legislation into law to protect and promote animal welfare, ensuring a more humane City for all New Yorkers.

The bills support the welfare of dogs, horses, and birds, specifically, as well as the wellbeing of all animals. In addition to establishing an Office of Animal Welfare, increasing animal cruelty reporting, and promoting animal shelter adoptions and kennel cough vaccinations, the animal welfare package prevents the trafficking of wild birds, bans the sale of foie gras, and improves working conditions for carriage horses.

“I’m proud to sign this legislation that further solidifies our commitment to the humane and fair treatment of animals across our city,” said Mayor Bill de Blasio. “I look forward to continuing our work with elected officials and communities to protect animals and build on New York City’s leadership in animal rights.”

This legislation builds on the de Blasio Administration’s commitment to preserving and promoting animal rights. The City is the first in the nation to appoint a designated animal rights liaison within a City’s government to work with animal advocates and implement humane policies that impact animals. Notable accomplishments include the City’s ‘Meatless Mondays’ program. After a successful pilot initiative launched in 2018, all 1800 of the City’s public schools serve vegetarian meals on Mondays.

The administration has also invested $98 million in the development and renovation of full-service animal shelters in all five boroughs—making them the first administration in the City’s history to do so—and has achieved record shelter placement rates at their municipal shelters run by Animal Care Centers of NYC. 

Through its work with the City Council and other stakeholders, the City has strengthened regulations and protections surrounding animal welfare. In 2017, the City banned the use of wild and exotic animals in circuses. In partnership with the ASPCA, the City established the NYPD Animal Cruelty Investigation Squad to exclusively investigate animal abuse and neglect cases, and implemented the Animal Abuse Registry. Other legislative achievements include a ban on sale of rabbits, as well as the sales of dogs and cats from puppy or kitten mills, and legislation requiring pet shops to only sell spayed or neutered dogs.

Through Int. 1478-A, the Administration will establish an Office of Animal Welfare, headed by a Director appointed by the Mayor. The Office will advise and assist the Mayor in interagency coordination and cooperation related to animal welfare administration, regulation, management, and programs. 

The package of bills signed today also include, Intro 870-A, which requires animal shelters operated by New York City to post photographs of adoptable animals within three days. Intro 1202-A prohibits the trafficking of wild birds, including pigeons. Intro 1378-A prohibits restaurants and stores from selling foie-gras. Int. 1425-A prohibits carriage horses from being worked in certain heat conditions. Through Int. 1498-A the NYPD will now be required to publish semi-annual public reports on complaints and investigations of animal cruelty allegations. Int. 1570-A requires that dogs entering kennels are in compliance with the New York City Health Code and are vaccinated for kennel cough.

“We're thrilled that New York City is now the largest city in the world to protect ducks and geese from the abusive foie gras industry by banning the sale of force-fed products," said Allie Feldman Taylor, President of Voters for Animal Rights. "New York has sent a clear message to foie gras producers that shoving a foot-long pipe down a bird's throat and intentionally diseasing and enlarging their liver up to ten times its normal size in order to create some bizarre delicacy is cruel and has no place in our compassionate city. We’re beyond grateful to Mayor de Blasio for signing this landmark package of animal protection measures into law. By enacting this historic package, New York City has proven itself to be a leader on animal rights."

“We thank Mayor de Blasio for signing these important animal welfare measures, which will reinforce New York City’s reputation as a place of deep compassion and a humane model for cities around the country,” said Matt Bershadker, President and CEO of the ASPCA. “We look forward to working with the Council and Mayor’s Office to continue protecting New York City animals from unacceptable suffering and abuse.”

“This package of bills just made New York a much more civilized city for animals. PETA is pleased that Mayor de Blasio and the city council recognize that animal rights issues are important to voters of all political persuasions,” said Dan Matthews, Senior Vice President of PETA.     

DE BLASIO ADMINISTRATION ANNOUNCES OUTPOSTED THERAPEUTIC HOUSING UNITS TO SERVE PATIENTS IN CUSTODY WITH SERIOUS HEALTH CONDITIONS

Outposted Therapeutic Housing Units at NYC Health + Hospitals/Bellevue and NYC Health + Hospitals/Woodhull will improve access to care for incarcerated individuals with complex medical, mental health, and substance use needs

 Building on prior efforts to reform the City’s criminal justice system and build new modern and borough-based facilities by 2026, the de Blasio administration, through NYC Health + Hospitals/Correctional Health Services (CHS), announced plans to open Therapeutic Housing Units to improve access to care for patients whose clinical conditions require access to specialty and subspecialty care.

“As we move forward to a smaller, safer and fairer criminal justice system, we’re exploring all options that will improve our justice system and end the era of mass incarceration,” said Mayor Bill de Blasio. “That means pushing for creative solutions that will help improve the lives of people in custody by providing a more therapeutic environment that is so crucial to help people reenter their communities.”

Subject to design, approximately 250 Outposted Therapeutic Housing Unit beds between NYC Health + Hospitals/Bellevue and NYC Health + Hospitals/Woodhull will be in secured, clinical units operated by CHS in areas separated from the public, as to not infringe on other patients or compromise security. The Department of Correction will provide security, and decisions regarding admission to and discharge from the Outposted Therapeutic Housing Units will be made by CHS according to a patient’s clinical needs.

The creation of these Units will also follow significant investments in both hospitals, resulting in improved care and infrastructure. Additionally, the implementation of the Units will not compromise the quality of care or existing services within the hospitals.

Development and implementation of the Unit model will bridge the gap in the correctional health care continuum between care provided in jail and inpatient hospitalization With a focus on reentry, individual treatment plans will be developed at both Units to support the health and wellbeing of patients, marking another step forward in the progress that CHS has made since its transition to NYC Health + Hospitals into its effort to transform health care services for patients in custody. These units substantially improve access to needed care and will offer a therapeutic and more normalized environment for those patients with more complex medical, mental health, and substance use needs.

Among the improvements since its transition to NYC Health + Hospitals in 2016, CHS has established more jail-based therapeutic housing units for patients with serious mental illness, substance use disorders, and/or complex medical needs. CHS launched the Geriatric and Complex Care Service, the first jail-based program of its type in the country, providing integrated clinical care and court advocacy to the oldest and most vulnerable patients in the jail system. In addition, CHS has expanded what was already the largest jail-based opioid treatment program in the nation, overseeing the care of approximately 6,000 patients with an opioid use disorder annually.

This initiative will decrease the number of beds in the borough-based jails by 250 and provide a more medically appropriate setting for certain individuals in the City’s care. Additionally, CHS has also recently enhanced reentry support services to help ensure successful reentry into the community, including the creation of Point of Reentry and Transition primary care practices at NYC Health + Hospitals/Bellevue and NYC Health + Hospitals/Kings County, which improve continuity of care for patients recently released from custody in City jails.

“I am extremely proud that NYC Health + Hospitals, as both innovator and advocate, will establish these new therapeutic units to allow for better access to hospital-based specialists to stabilize patients for successful reentry to the community,” said Mitchell Katz, MD, President and CEO of NYC Health + Hospitals.

“We are very excited to launch this pioneering approach that will help meet the health care needs of patients in custody, in a safer, more humane, and more dignified way,” said Dr. Patsy Yang, Senior Vice President for NYC Health + Hospitals/Correctional Health Services. “We believe these therapeutic units will better support healing and recovery for our patients

“NYC Health + Hospitals/Woodhull is proud to be selected as one of two sites to pilot this innovative initiative, which will help provide critical support to this vulnerable population of patients,” said Gregory Calliste, CEO of NYC Health + Hospitals/Woodhull.

“At NYC Health + Hospitals/Bellevue, we have had an extensive and successful history providing health care to patients in custody, and this is a significant opportunity to expand our forensic experience in order to ensure continuity of high quality care by our specialists and subspecialists,” said William Hicks, CEO of NYC Health + Hospitals/Bellevue.

“As we continue to drive down the population of incarcerated individuals with serious mental health issues, it is critical to treat those who remain in our custody in an appropriate environment,” said City Council Speaker Corey Johnson. “The Council will work to ensure that individuals who do need specialized medical services are cared for in spaces that are in line with the progressive design principles developed in the process of the borough-based jail plan, and looks forward to engaging with the Administration on how these new facilities will achieve our collective goals.”

ON THE TWO-YEAR ANNIVERSARY OF THE FAIR WORKWEEK LAW, DE BLASIO ADMINISTRATION ANNOUNCES SETTLEMENT WITH MCDONALD’S FRANCHISE FOR VIOLATIONS OF WORKERS’ RIGHTS

Operator of five McDonald’s franchise locations in Queens must pay $155,000 in restitution to 280 workers for violating Fair Workweek and Paid Safe and Sick Leave laws

 On the two year anniversary of the Fair Workweek Law, Mayor Bill de Blasio and Department of Consumer and Worker Protection (DCWP) Commissioner Lorelei Salas announced a settlement with the operator of five McDonald’s locations to resolve violations of the City’s Fair Workweek and Paid Safe and Sick Leave laws. DCWP’s investigation found that management at these five McDonald’s locations violated nearly every aspect of both laws and management retaliated against employees who tried to exercise their rights. The settlement requires the owner of the five locations, Thomas Parker of Star Parker LLC, to pay $155,000 in restitution to their 280 workers.

“Make no mistake: in our city, fast food workers have the right to predicable schedules and Paid Safe and Sick Leave,” said Mayor Bill de Blasio. “No worker should be afraid to exercise their rights, and any corporation that retaliates against workers will be met with the full force of the law.”

“Violating a worker’s right to paid safe and sick leave and a predictable schedule is not only illegal, it is immoral. It is unacceptable that employers continue to retaliate against employees for exercising their rights,” said DCWP Commissioner Lorelei Salas. “Let this settlement be an example to all employers who think they are above the law – you are not. We are committed to protecting New Yorkers and urge any fast food worker experiencing workplace violations to file a complaint with our office.”

As a result of worker complaints, DCWP investigated the five McDonald’s locations in Queens owned and operated by Thomas Parker and Star Parker LLC. The investigation revealed that that these locations failed to provide schedules to employees, failed to get written consent from employees when schedules were changed, failed to pay employee premiums when schedules were changed without two weeks’ advance notice, scheduled employees to work “clopenings” without their consent, had an illegal sick leave policy and failed to let employees use sick leave. The investigation also uncovered that the company and Mr. Parker retaliated against employees who tried to exercise their rights by taking away their shifts, reducing hours and even firing a worker.

Under the settlement, Star Parker LLC’s McDonald’s must:

·         Pay $155,000 in restitution to its workers. Two workers who were retaliated against for exercising their rights will receive a total of $13,385 in restitution and the other employees will receive approximately $500 each.

·         Retain an independent compliance monitor to ensure its compliance with the City’s workplace laws and proper recordkeeping.

·         Train all managers, supervisors and other necessary personnel on the City’s Fair Workweek and Paid Safe and Sick Leave laws.

Under the Fair Workweek Law, which went into effect on November 26, 2017, fast food employers in New York City must give workers good faith estimates of when and how much they will work, predictable work schedules, and the opportunity to work newly available shifts before hiring new workers. Fast food employers also cannot schedule workers to work a clopening unless workers consent in writing and are paid a $100 premium to work the shift. Under the Law, retail employers must also give workers advanced notice of work schedules and may not schedule workers for on-call shifts or change workers’ schedules with inadequate notice. The required You Have a Right to a Predictable Work Schedule must be posted in any language that is the primary language of at least five percent of the workers at the workplace if available on DCWP’s website.

Since the law went into effect, DCWP has received more than 290 complaints about Fair Workweek, closed more than 120 investigations, and obtained resolutions requiring more than $1,330,000 combined fines and restitution for more than 2,900 workers.

Under the NYC Paid Safe and Sick Leave Law, employers with five or more employees who work more than 80 hours per calendar year in New York City must provide paid safe and sick leave to employees. Employers with fewer than five employees must provide unpaid safe and sick leave. All covered employers are required to provide their employees with the Notice of Employee of Rights that includes information in English and, if available on the DCWP website, the employee’s primary language. Employers must provide the notice on the first day of an employee’s employment. Employers must have a written sick leave policy that meets or exceeds the requirements of the Law.

Since the law went into effect, DCWP has received more than 2040 complaints about Paid Safe and Sick Leave, closed more than 1780 investigations, and obtained resolutions requiring more than $11,490,000 combined fines and restitution for more than 35,300 workers.

DCWP’s case was handled by Agency Attorneys Emily Hoffman, Katie Harrigan, Margot Finkel, Investigator Christina Hwang, and Supervising Investigator Juana Abreu under the supervision of Director of Litigation Claudia Henriquez, of the Office of Labor Policy & Standards (OLPS). OLPS is led by Deputy Commissioner Benjamin Holt.

GOVERNOR CUOMO SIGNS LAW PROTECTING CONSUMERS

Bill carried by Assembly Member A.  Crespo and Senator Kavanagh to protect consumer’s Internet usage and social media from affecting credit scores and lending worthiness signed into law

   Governor Andrew M. Cuomo signed legislation A.5294/S.2302 sponsored by Assembly Member Marcos A. Crespo and Senator Brian Kavanagh which prohibits consumer reporting agencies and lenders from using social networks and media pages to determine the credit worthiness of the individual.

This act is aimed at helping to protect a consumer’s right to privacy. In addition, the act prohibits any kind of Internet usage information to be stored in consumer reporting agency and lender files.

"Basing someone's credit score on who they know is not only an invasion of privacy, it is a way for these agencies to unfairly target and penalize low-income New Yorker’s," Governor Cuomo said. "This law will keep these unscrupulous agencies in check, end this unfair practice once and for all and help ensure New Yorker’s receive more fair and accurate credit ratings."

“With so much of our financial stability and opportunities determined by our individual credit scores; it is crucial that fair and relevant data be used to determine such credit rating. A person’s online use and search history is irrelevant to their credit worthiness. This law will protect New Yorker’s from the growing threat of new credit formulas that consider online searches and posts in scoring credit. While so many New Yorker’s struggle to make ends meet and/or make long term financial decisions such as the cost of college, purchasing a home or starting a new business— the fact is we must continue to take steps like this bill to ensure a level playing field for all. I thank Governor Cuomo for signing this critical legislation,” says Assembly Member Marcos A. Crespo.

Senator Brian P. Kavanagh said, "Americans increasingly live much of their lives online. Unfortunately, online activities through social media and other applications expose us to many risks, especially given the scant concern for privacy and equity that many companies have demonstrated when handling our personal data. Using social media networks to assess credit worthiness could lead to new forms of discrimination akin to redlining and other practices that have no legitimate place in our economy. I thank Assembly Member Crespo who has been a leader on this issue and passed this bill in the Assembly, and Governor Cuomo for signing it into law today—an important, proactive step to protect New Yorker’s from unfair practices and ensure more accurate credit reporting."

Credit scores are used in a variety of ways. However, confusing and vaguely understood algorithms used to calculate and update credit scores can produce both errors and inaccuracies. Those errors may result in imprecise credit reports and therefore negatively affect an individual’s financial goals.

This law will take effect immediately.

Founder Of Purported Snack And Pet Food Companies Sentenced To 7 Years In Prison For Defrauding Investors Of More Than $2.9 Million

Defendant also Sentenced for Aggravated Identity Theft, Money Laundering, a Firearm Offense, and a Narcotics Offense

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LISA BERSHAN was sentenced to 7 years in prison on Friday, November 22 by U.S. District Judge Jed S. Rakoff for participating in two schemes to defraud more than 50 investors in the Starship Snacks Corporation and the All American Pet Company of more than $2.9 million, by making false and fraudulent representations about, among other things, the status of the companies’ products, guarantees that purportedly backed the investments, and the interest of large multi-national corporations in acquiring the companies.  BERSHAN was also sentenced for using the stolen identities of three individuals to commit the All American Pet Company scheme, money laundering, illegally receiving a firearm in New York without the proper licenses, and conspiracy to distribute and to possess with the intent to distribute cocaine.

U.S. Attorney Geoffrey Berman said:  “Lisa Bershan defrauded more than 50 investors of more than $2.9 million by making materially false representations about the snack and pet food companies she purportedly ran.  As part of her schemes, she and her co-conspirators used other people’s identities and created a slew of falsified documents to lure their victims.  When victims poured money into purported business bank accounts Bershan controlled, she used those bank accounts as her personal piggy bank, spending the money to finance her lavish lifestyle of luxury real estate, jewelry, plastic surgery, and clothing.  But Bershan’s crimes didn’t end with fraud.  She also pled guilty to and was sentenced for serious firearms and narcotics distribution offenses.  Lisa Bershan’s crime spree has come to an end, and she now faces a significant prison term for her crimes.”

According to the allegations contained in the superseding Information filed against LISA BERSHAN and statements made in related court filings and proceedings, including the trial of co-defendant Joel Margulies:

The All American Pet Company Fraud Scheme

From October 2013 through May 2017, BERSHAN, Joel Margulies, and a co-conspirator raised more than $575,000 in purported loans for the All American Pet Company (“AAPT”), a penny-stock company that produced, marketed, and sold food bars and other products for dogs, based on the following misrepresentations, among others: (a) that the Internal Revenue Service (“IRS”) had accepted an “offer in compromise” from AAPT that significantly reduced the back taxes AAPT owed to the IRS; (b) that BERSHAN had paid to the IRS the amount of this offer in compromise and had thus absolved AAPT of its outstanding tax liability; (c) that BERSHAN was the beneficial owner of a bank account containing over $6.9 million; (d) that BERSHAN would personally guarantee some of the loans; and (e) that Nestlé USA had proposed various business deals with AAPT.  BERSHAN held herself out as president and chief executive officer of AAPT at various times. 

Although BERSHAN and her co-conspirators had promised investors that they would use the loans to help improve AAPT’s manufacturing and distribution capacities, the conspirators instead used those funds largely for their personal expenses, including the rental of a luxury villa in the Bel Air neighborhood of Los Angeles where all three of them lived.

In connection with the AAPT fraud scheme, BERSHAN used the stolen identities of three individuals – an IRS employee, a Nestlé Purina employee, and a Manhattan attorney – to create false and fraudulent letters that were sent to AAPT investors to induce them to make loans to AAPT.

The Starship Snack Corporation Fraud Scheme

From approximately August 2015 through August 2017, BERSHAN, Margulies, and a co-conspirator, Barry Schwartz, raised more than $2.3 million from investors in a company originally called the Awake Company and later renamed Starship Snacks Corporation (“Starship”), which purported to be in the business of developing and manufacturing caffeinated snack products, based on the following misrepresentations, among others: (a) that investments in Starship were guaranteed against losses by BERSHAN; (b) that Starship was going to be acquired by Monster Beverage (“Monster”) in a one-for-one stock exchange; (c) that Starship was engaged in actual product development and had procured samples of candies infused with caffeine; (d) that BERSHAN and others at Starship had entered into non-disclosure agreements with Monster that prohibited them from discussing Starship’s purported acquisition by Monster and its purported product development.  BERSHAN held herself out as the chief executive officer, president, and founder of Starship. 

After receiving funds from Starship investors, BERSHAN and her co-conspirators used those funds to maintain their own extravagant lifestyles, spending hundreds of thousands of dollars on things like luxury clothing, plastic surgery, interior decorating, the rental of a high-end apartment in New York City, and the down payment for a multimillion-dollar house in Florida. 

Money Laundering, Illegal Receipt of a Firearm, and Distribution of Narcotics

In addition to the fraud and identity theft charges set forth above, BERSHAN was sentenced for money laundering in connection with the AAPT and Starship schemes.  She was also sentenced for illegally receiving a firearm and ammunition in New York that her co-conspirator, Margulies, sent to her from Tennessee via commercial courier.  Neither BERSHAN nor Margulies held federal firearms licenses that would have allowed them to effect such a transfer legally.  Finally, BERSHAN was also sentenced for conspiring to distribute cocaine from October 2015 through August 2017, during which conspiracy BERSHAN caused quantities of cocaine to be sent to her and Margulies via commercial courier in interstate commerce.

In addition to the prison term, BERSHAN, 62, was sentenced to five years of supervised release.  BERSHAN was also ordered to forfeit $2,926,702.54 and to make restitution in the amount of $2,926,702.54. 

Barry Schwartz previously pled guilty and is scheduled to be sentenced before Judge Rakoff on December 12, 2019.  Margulies was convicted following a seven-day jury trial before Judge Rakoff and is scheduled to be sentenced on December 16, 2019. 

Mr. Berman praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.