Former CEO And CFO Of Temporary Staffing Company Charged In Manhattan Federal Court With Scheme To Defraud Bank And Investors Of More Than $500 Million By Fraudulently Boosting Revenues

 

Two Accounting Department Employees Also Charged With Participating In the Scheme

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging LOUIS LLUBERES, a/k/a “Luis Lluberes,” MOISES LLUBERES, MARIA AGUILAR, a/k/a “Maria Hewitt,” and MARIA LOPEZ with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering stemming from their years-long scheme to fraudulently boost the revenues of their temporary staffing company (“Company-1”) and launder funds through a series of shell companies before mischaracterizing the money as collections from customers.  The scheme allowed Company-1 to fraudulently obtain more than $500 million on its line of credit from a U.S. bank (“Bank-1”) and supported the sale of Company-1 to a group of investors (the “Investor Group”) at a grossly inflated price.  LOUIS LLUBERES, MOISES LLUBERES, AGUILAR, and LOPEZ were arrested this morning in the Middle District of Florida, and will be presented this afternoon in that district.  The case is assigned to U.S. District Judge Vernon S. Broderick.

Acting U.S. Attorney Audrey Strauss said:  “Louis Lluberes, founder and former CEO of a temporary staffing company, and his three co-defendants, allegedly schemed to inflate the company’s receivables, thereby making the company appear far more profitable than it was.  As alleged, they were thus able to fraudulently exceed their bank’s credit limit, borrowing over $500 million, and ultimately sold the company at a vastly inflated price.  Thanks to the assistance of the FBI, Lluberes and his co-defendants now face multiple federal fraud charges.”

FBI Assistant Director William F. Sweeney Jr. said:  "Today's indictment details an alleged multimillion-dollar scheme in which the defendants fraudulently borrowed money from a major financial institution, funneled the money from a revolving line of credit through a series of shell companies, and dumped it back into the company, falsely representing those funds as business proceeds. They later manipulated the books by creating fraudulent invoices to boost the perceived value of the company before its sale to a private equity firm. These charges serve to remind everyone that illegal business dealings will be faced with intense scrutiny."

According to the Indictment unsealed today in Manhattan federal court:[1]

LOUIS LLUBERES founded Company-1 in 1995 and served as Company-1’s chief executive officer until March 2020.  Company-1 served as a staffing company, supplying other businesses with temporary and permanent labor.  MOISES LLUBERES, LOUIS LLUBERES’s brother, served as Company-1’s chief financial officer.  AGUILAR, MOISES LLUBERES’s romantic partner, and LOPEZ, LOUIS LLUBERES’s daughter, served in Company-1’s accounting department.

Company-1 had established a revolving line of credit with Bank-1.  Under the terms of the line of credit, Company-1 could only borrow up to a designated ratio of Company-1’s eligible accounts receivable (the “Borrowing Base”).  By its terms, invoices that had gone more than 90 or 120 days without being paid were no longer eligible to be considered as part of Company-1’s Borrowing Base.  Officials at Company-1, including MOISES LLUBERES and LOPEZ, were required to submit weekly financial reports to Bank-1, which included information on Company-1’s sales and collections, among other items, that allowed Bank-1 representatives to calculate Company-1’s Borrowing Base.

Beginning in or about 2017, after losing significant business from major clients, the defendants began creating fraudulent invoices (the “Fictitious Receivables”).  The Fictitious Receivables, which were recorded on Company-1’s books, created the appearance that Company-1 was engaged in more business and would be receiving more client payments than was the reality.  All told, the defendants created more than 2,000 Fictitious Receivables.  LOPEZ was responsible for recording the vast majority of Fictitious Receivables onto Company-1’s books.

Thus, by inflating Company-1’s Borrowing Base through the creation of Fictitious Receivables, Company-1 and the defendants were able to borrow more than $520 million from Bank-1.  Company-1 was not actually entitled to borrow these funds.

In order to perpetuate their fraud, the defendants utilized two shell companies (“Shell-1”) and (“Shell-2”) to launder Company-1 funds before transferring those funds back to Company-1 and mischaracterizing those funds as client collection payments. 

Between in or about September 2017 and in or about March 2020, Company-1 accounts transferred approximately $120 million in funds obtained from Company-1’s line of credit with Bank-1 to Shell-1’s bank account.  During the same time period, Shell-1 transferred approximately $119 million to Shell-2, constituting approximately 90% of all funds received by Shell-2.  And, during the same time frame, Shell-2 transferred approximately $129 million to Company-1’s collections account, where the defendants disguised the funds as client payments on outstanding invoices.

Once the misappropriated funds had been returned to Company-1’s collections account, LOPEZ and others applied those funds against aging accounts receivable, including the Fictitious Receivables.  This allowed Company-1 to maintain its Borrowing Base and continue borrowing from Bank-1. 

Beginning in or about 2017, the Investor Group initiated negotiations to acquire Company-1, and the Investor Group executed an agreement to purchase Company-1 (the “Purchase Agreement”) in May 2018.  In connection with the Purchase Agreement, LOUIS LLUBERES certified that financial records relied upon by the Investor Group and incorporated into the Purchase Agreement, including Company-1’s accounts receivable, were accurate and legitimate.  In reality, as reviewed by forensic accountants retained by Company-1, these records included approximately $56 million in Fictitious Receivables, which resulted in the Investor Group overvaluing Company-1’s enterprise value by approximately 430%. 

LOUIS LLUBERES was paid approximately $11.3 million on the day the Investor Group acquired Company-1.  LOUIS LLUBERES also received an additional approximately $6.2 million based, in part, on fraudulent representations to the Investor Group and Company-1.  In total, LOUIS LLUBERES made at least $17.5 million from the sale of Company-1 (the “Acquisition Payments”).

LOUIS LLUBERES transferred at least approximately $716,000 in the Acquisition Payments to MOISES LLUBERES and at least approximately $45,000 in the Acquisition Payments to LOPEZ.  The defendants further used the Acquisition Payments to acquire homes in Florida, Punta Cana in the Dominican Republic, precious metals, and other personal items.  LOUIS LLUBERES also transferred Acquisition Payments funds to a Tex-Mex restaurant operated by LOUIS LLUBERES and MOISES LLUBERES in the Dominican Republic.

In or about March 2020, Company-1 learned of LOUIS LLUBERES and MOISES LLUBERES’s fraud when an attorney retained by the brothers wrote a letter, dated March 30, 2020, disclosing “excessive billing” to Company-1’s customers in order to increase Company-1’s sales and allow Company-1 to draw more from its line of credit than Company-1 would otherwise be entitled to.  AGUILAR closed Shell-2’s bank account the same day that the LLUBERES brothers’ attorney submitted the letter to Company-1.  Company-1 fired the defendants after it was alerted to the fraudulent scheme. 

LOUIS LLUBERES, 58, of Windermere, Florida; MOISES LLUBERES, 56, of Winter Grove, Florida; AGUILAR, 37, of Winter Grove, Florida; and LOPEZ, 37, of Orlando, Florida, are charged with (1) conspiring to commit wire and bank fraud, which carries a maximum sentence of 30 years in prison; (2) wire fraud, which carries a maximum sentence of 30 years in prison; (3) bank fraud, which carries a maximum sentence of 30 years in prison; and (4) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Ms. Strauss praised the investigative work of the FBI.

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

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

Governor Cuomo Announces Completion of $95 Million Mixed-Use Affordable Housing Development in Westchester County

 

22 South West Street Brings 189 Affordable, Energy-Efficient Apartments to Downtown Mount Vernon Adjacent to Metro-North Train Station 

Governor Andrew M. Cuomo today announced the completion of 22 South West Street in downtown Mount Vernon, a nearly $95 million, 189-apartment mixed-use development with ground floor retail space that is immediately adjacent to the Mount Vernon West Metro-North Station.  

"For many New Yorkers, the economic recovery from the pandemic is tied directly to the availability of quality affordable homes with easy access to transit, jobs and services," Governor Cuomo said. "This new supportive housing development continues our commitment to investing in communities across the state have access to safe, new and affordable housing."

"Now more than ever, we want to ensure that all New Yorkers have access to affordable housing and a good roof over their heads," Lieutenant Governor Kathy Hochul said. "The completion of the $95 million apartment complex in Mount Vernon, which is easily accessible to the Metro-North Station, is helping to transform the city's downtown and provide units for individuals and families with mixed incomes. The development is part of our ambitious five-year, $20 billion housing plan to add affordable housing across the state and help combat homelessness to build back better and enhance quality of life in our communities."

22 South West Street is part of Governor Cuomo's unprecedented $20 billion, five-year affordable Housing Plan administered by New York State Homes and Community Renewal. The $20 billion plan reflects a commitment to providing all New Yorkers with access to safe, affordable housing, making housing more accessible and combatting homelessness by building and preserving more than 100,000 affordable apartments and 6,000 units of supportive housing. 

22 South West Street is central to the Mount Vernon Revitalization Plan, which is transforming the city's downtown into a vibrant, walkable community that mixes transit-oriented higher-density housing with retail and other commercial activity. The development is adjacent to the Mount Vernon West Metro-North Station which offers a quick commute to Grand Central Terminal in New York City.  

The 17-story building has a shared outdoor terrace and indoor recreation area, a fitness center, washer/dryers in all units, plus a shared laundry facility and a children's playroom. There are 149 below-grade parking spaces and more than 4,000 square feet of ground floor retail space along South West Street. 

The mixed-income apartments are reserved for households within a range of incomes: 32 are for households earning 50 percent or less of the Area Median Income (AMI); 99 are for households earning 60 percent or less of the AMI; 27 are for households earning 80 percent or less of the AMI; and 30 are for households earning up to 110 percent of AMI. One apartment is set aside for the superintendent.  

The development reclaimed a former auto mechanic and gasoline station thanks to the New York State Department of Environmental Conservation's Brownfield Clean-up Program which remediates man-made environmental hazards. The building was designed to achieve LEED Silver certification.  

HCR's financing for the project included $26 million in permanent tax-exempt bonds, state and federal Low-Income Housing Tax Credits that generated nearly $32 million in equity and approximately $26 million in subsidy.  The New York State Energy Research and Development Authority provided over $133,000 through its New Construction Program and nearly $180,000 through its Combined Heat and Power Program. Other funding includes a payment in lieu of taxes agreement with the city. The developer for 22 South West Street is MacQuesten Development, LLC.  

Since 2011, HCR has invested more than $1 billion in 130 developments to create or preserve nearly 13,000 affordable homes and apartments in the Mid-Hudson Region, including nearly $800 million in Westchester County to support nearly 7,500 homes for more than 20,000 people. The State investment has leveraged nearly $1.9 billion in other funds for these Mid-Hudson Region developments.  

HCR Commissioner RuthAnne Visnauskas said, "Thanks to Governor Cuomo's commitment to affordable housing and to the health, safety and economic endurance of New York State, HCR maintained our momentum throughout the pandemic crisis. The completion of 22 South West Street is evidence of that commitment, and the vision and hard work on the part of the state, the city of Mount Vernon and our development partners. This once environmentally-damaged property in the heart of Mount Vernon has been transformed into 189 affordable, energy-efficient homes that will bring lasting, beneficial change to the heart of the city."   

DEC Commissioner Basil Seggos said, "New York's Brownfield Cleanup Program is advancing the restoration of former industrial sites in communities across the state and putting hundreds of underutilized properties back into productive use. The cleanup of brownfield properties like the former Repetti Service Station site in Mt. Vernon is critical to safeguarding public health, protecting the environment, and redeveloping community assets. The 22 South West Street project will bring critically needed quality affordable housing opportunities to downtown Mt. Vernon, helping to energize the local economy and improve quality of life."     

Governor Cuomo Reminds New Yorkers "Pink Tax" Ban Goes into Effect Today

 

Businesses Are Prohibited from Charging a Different Price for Consumer Goods or Services that are "Substantially Similar" Based on Gender

Banning the "Pink Tax" Was Enacted as Part of the FY 2021 Budget and a Key Component of the Governor's 2020 Women's Agenda

 Governor Andrew M. Cuomo announced that starting today, new reforms go into effect prohibiting businesses from charging a "pink tax," otherwise known as the practice of charging different prices for "substantially similar" consumer goods or services that are marketed to different genders. 

In April the Governor signed the FY 2021 New York State Budget which included the Governor's proposal to ban the "Pink Tax." The new measure requires certain service providers to provide price lists for standard services upon request and notifies them that gender-based price discrimination is prohibited under State law. Businesses that violate the law will be subject to civil penalties.

"New York is leading the nation in advancing women's rights and this milestone marks the latest step in New York's journey to break down barriers and put women on an equal playing field," Governor Cuomo said. "By abolishing the pink tax, women and girls will no longer be subject to harmful and unfair price discrimination and any businesses who fail to put an end to this despicable practice will be held accountable."

"Women and girls continue to face inequalities in many aspects of their daily lives, and it is unacceptable that they have to pay more than men for similar goods and services," said Lieutenant Governor Kathy Hochul. "Eliminating the pink tax helps put an end to gender-based pricing, ensure financial success and break down barriers for women. We do not tolerate discriminatory actions in our state, and we will continue to fight to eliminate the gender wage gap and achieve full equality and justice for all New Yorkers."

"The Pink Tax was gender-based discrimination, plain and simple," Melissa DeRosa, Secretary to the Governor and Chair of the New York State Council on Women and Girls, said. "In New York, women have been forced to accept the unjust reality of a higher price tag for identical goods marketed to men. It was unacceptable and starting today women and girls across this state can be confident that it won't happen again. New York has made tremendous progress in advancing gender equity through Governor Cuomo's Women's Agenda and abolishing the pink tax is a critical next step."

Secretary of State Rossana Rosado said, "For far too long, women have paid more for services and products that were substantially the same as the male marketed version. I applaud Governor Cuomo for his leadership in ending this widely accepted, everyday injustice that women of all ages have suffered in the marketplace. This landmark law points to a new and fair era for women in the marketplace."

Since the early 1990s, numerous studies have demonstrated the stark disparities in the cost of substantially similar goods and services based on whether they were marketed for men or women. Across the board, the studies found that women paid more for the female version of the same product offered to men. The economic impact on women to pay more for the same product has a greater overall reach than those immediate purchases. Starting today, September 30, 2020, the gross compound effect of the gender-based price disparities comes to an end in New York State.

The new law mandates that any individual or entity, including retailers, suppliers, manufacturers or distributors, are prohibited from charging a price for two "substantially similar" goods or services, if the goods or services are priced differently based on the gender for whom the goods or services are marketed. 

"Substantially similar goods" is defined as two goods that exhibit little difference in the materials used in production, intended use, functional design and features, and brand. "Goods" include any consumer product used, bought, or rendered primarily for personal, family or household purposes. For example, the same children's swimming pool product brand and dimensions offered in pink at $89.99 and blue at $69.99 would constitute a violation of law.

"Substantially similar services" is defined as two services that exhibit little difference in the amount of time delivering, difficulty, and cost in providing the service. "Services" include any consumer services used, bought or rendered primarily for personal, family or household purposes. For example, dry cleaning a woman's suit jacket for $12 and a man's suit jacket for $8, would constitute a violation of law.

The new law also seeks to empower consumers by giving them the right to receive, upon request, a written price list from any business that provides a service. The New York State Division of Consumer Protection encourages consumers to familiarize themselves of the new requirement and ask their service providers in advance for a price list.

Anyone selling products or providing services can avoid running afoul of the new law by ensuring that any price difference is based upon the following:

• The amount of time it took to manufacture such goods or provide such services
• The difficulty in manufacturing such goods or offering such services
• The cost incurred in manufacturing such goods or offering such services
• The labor used in manufacturing such goods or providing such services
• The materials used in manufacturing such goods or providing such services 
• Any other gender-neutral reason for having increased the cost of such goods or services   

Violations of the law are subject to the court ordered enjoinment of such sales, restitution to consumers, up to a $250 fine for the first violation, and up to $500 fine for any subsequent violations.

The New York State Division of Consumer Protection serves to educate, assist and empower New York State consumers. Starting September 30th, if you find a product or service offered for sale in New York State that does not comply with the new law, you may contact the Division of Consumer Protection at 800-697-1220 Monday to Friday, 8:30am to 4:30pm or file a complaint online at www.dos.ny.gov/consumerprotection. The Division can also be reached via Twitter at @NYSConsumer or Facebook atwww.facebook.com/nysconsumer. 

Attorney General James Sues New York Sports Club and Lucille Roberts for Charging Illegal Dues and Prohibiting Consumers from Cancelling Memberships

 

NYSC and Lucille Roberts Charged New Yorkers Fees

While Gyms Were Shut Down Due to COVID-19

By Failing to Honor Cancellation Requests, TSI Treated Members Like Guests At “Hotel California”: “You Can Check Out Any Time You Like, But You Can Never Leave”

 New York Attorney General Letitia James today filed a lawsuit against the parent company of New York Sports Clubs (NYSC) and Lucille Roberts for unlawfully charging monthly dues to members and for partaking in a variety of illegal and fraudulent practices involving consumers’ cancellation rights. In her proceeding against Town Sports International Holdings, Inc. (TSI Holdings) and Town Sports International, LLC (TSI LLC) — collectively TSI — Attorney General James alleges that the company violated the law by continuing to charge consumers dues and fees, despite the fact that all health clubs and gyms in the state were ordered closed after the coronavirus disease 2019 (COVID-19) pandemic began to spread widely across New York in March. After Attorney General James sent the company a letter in early April, stating she would take necessary steps to protect consumers, TSI implemented a freeze of membership fees and dues on April 8, 2020 and promised consumers they would provide credits in the future, but, on or around September 1, 2020, the company unlawfully resumed charging consumers and never provided them with the promised credits, even charging some consumers who are members of clubs that have yet to open. In connection with today’s proceeding, Attorney General James also seeks a temporary restraining order in an effort to immediately block TSI from continuing to charge any dues or fines to New York members who submitted cancellation requests or charging any dues or fines to members in New York whose primary — or home — gym remains closed. The temporary order is subject to court approval.

“Since the COVID-19 pandemic began, New York Sports Clubs and Lucille Roberts have done everything possible to flout their obligations and take advantage of members,” said Attorney General James. “Time and again, these gyms have illegally sought to lift up their precarious financial state at their members’ expenses, even though many of these very members were simultaneously being crushed under the weight of financial hardships. Today’s suit aims to end TSI’s illegal efforts to run its members ragged, simply to spot its bottom line.”

From March 16, 2020 until August 24, 2020, all gyms in New York were closed by executive order due to the COVID-19 pandemic. But, unlike most gyms in New York that automatically froze memberships at no cost to members until gyms reopened, TSI did not automatically freeze memberships and didn’t even do so when consumers asked the company to do so. When consumers contacted TSI to request a freeze or cancellation — in the rare circumstance where they got through — TSI provided differing and often false information that prevented consumers from cancelling, such as telling consumers that cancellations were subject to 45-day advance notice requirements and subject to $10 or $15 cancellation processing fees. 

Despite all New York clubs being closed in March, TSI went ahead and charged its members April dues. In early April, Attorney General James sent a letter to TSI, reminding the company that New York’s Health Club Law authorizes gym members to cancel their membership when services are no longer available due to a substantial change in operation. On April 8, 2020, TSI announced that it had implemented a membership freeze at no cost to members and promised that “members will receive additional days of membership access equal to the number of days paid for while the clubs were closed in your area.” TSI also advised members that they could cancel their membership online and receive an email confirmation. Yet, despite these commitments, after some TSI clubs reopened on August 24, 2020, the company went ahead, on or about September 1, 2020, and — without notice to members — charged September dues, even charging those consumers who attempted to cancel their memberships or whose home clubs remained closed, thus potentially risking consumer safety by forcing many members to take public transportation to use an alternate gym at a location further away from their homes.

On September 14, 2020, TSI LLC and other subsidiaries of TSI Holdings filed petitions for bankruptcy; TSI Holdings has not filed for bankruptcy. That same day, TSI filed a motion to reject certain leases, including leases for nine NYSC locations in New York, for which TSI LLC has already relinquished the keys. There is no indication that TSI exempted members from these nine permanently closed gyms from being charged September dues or that they have contacted members about cancelling their memberships before October dues are charged.

To date, TSI has refused to refund member dues for the time period from March 16, 2020 to April 8, 2020, when members were charged dues despite the fact that all NYSC locations were closed. And, contrary to the commitments made on April 8, 2020, TSI does not appear to have given any members credits for the March to April time period when facilities began to reopen in August. 

In today’s suit, Attorney General James charges TSI with violating numerous New York state laws by charging consumers membership dues for services not being offered; failing to issue credits as promised; imposing unlawful fees and advance notice requirements on cancellation requests; misleading consumers about their rights to cancel their memberships; and refusing to honor cancellation requests. 

Attorney General James’ suit seeks to enjoin TSI from violating New York law, including, but not limited to, charging consumers dues for clubs that have not yet reopened, failing to provide credits for the period from March 16, 2020 through April 8, 2020, and failing to honor consumers’ statutory rights to cancel their contracts; restitution for New York consumers; disgorgement; costs; penalties; and the transfer of the $250,000 bond TSI posted pursuant to the Health Club Law to the OAG.

New York’s Health Club Law authorizes gym members to cancel their membership under certain circumstances, including “after the services are no longer available or substantially available as provided in the contract because of the [gym’s] permanent discontinuance of operation or substantial change in operation,” and requires gym owners to provide prorated refunds for such cancellations within 15 days. Additionally, the law further prohibits misrepresentations about consumers’ cancellation rights. Finally, the Health Club Law requires that health clubs and gyms post a bond, letter of credit, or certificate of deposit payable in favor of the people of the state of New York for the benefit of any member injured in the event that the gym goes out of business prior to the expiration of the member’s contract, or otherwise fails to provide a refund after the member cancels in accordance with the Health Club Law.

TSI owns and operates nearly 100 gyms and fitness clubs in New York state doing business under the brand names New York Sports Clubs and Lucille Roberts. 

49th Precinct Council Meeting Tuesday Night

 

Tuesday night was the first live meeting of the 49th Precinct Council. It seemed as though the Precinct Council had only been off for the two summer months rather than from when the Corona Virus hit the country. 

49th Precinct Council President Joe Thompson opened the meeting by welcoming everyone, and reading a petition to the Governor. state legislators, the mayor, and city council members to revisit the Defunding of the Police Department, and the Bail Reform act both of which, based on the current results, have proven to be a failure according to the petition President Thompson asked everyone to sign. 

Captain Natiw of the 49th Precinct then went over crime stats in three areas the city as a whole, the Bronx as a whole, and the 49th precinct. The biggest increases in Murder, Shootings, Burglary, and GLA (car theft) were the highest at the citywide level, slightly lower at the borough of the Bronx level, and lowest at the 49th Precinct level. The captain then presented the Cop of the month award to P.O. Edward Nunez who helped take down a suspect who had a loaded gun on him, and had outstanding warrants in several other precincts. 

After the crime prevention tip of the month, a warning about fitness centers and security of one's personal property by Crime Prevention Officer Tyrone Mederos. area neighborhood reports by local community groups were heard. Assemblywoman Nathalia Fernandez then spoke saying her office was now open Tuesdays and Thursdays from 10 AM to 4 PM by appointment only due to the CoronaVirus. She also mentioned that she was against defunding the police, that only internal work was being done, and no application has been submitted for 2500 Williamsbridge Road, ending by saying that the empty building on the corner of Barnes and Lydig avenues across from PS 357 was purchased by Destination Tomorrow to be used for transitional housing for LGBTQ adults. Security will be hired and a GED program will be offered to the community.

Above - Captain announces P.O. Edward Nunez as the 49th Precinct Cop of the Month.

Below - Assemblywoman Fernandez telling the audience that her office has reopened, about what was or was not going on at 2500 Williamsbridge Road, and that the building at 2134 would soon be occupied as the building had been purchased for use as transitional housing.

DiNAPOLI: WESTCHESTER SISTERS ADMIT TO STEALING $22,000 OF DECEASED MOTHER'S PENSION PAYMENTS

 

State Comptroller Thomas P. DiNapoli and Westchester County District Attorney Anthony A. Scarpino, Jr. announced the convictions of Annette Bigelow, 60, and Mary Nash, 59, who hid their mother’s death to collect nearly $22,000 in her state pension payments from 2013 to 2015. The two Westchester County residents each pleaded guilty to one count of felony grand larceny in the fourth degree.

"This was a deliberate act to abuse the system,” DiNapoli said. “Bigelow and Nash covered up their mother’s death for two years to steal from the New York State and Local Employees Retirement System. They now have judgments against them to repay the stolen funds. Those who try to scam the retirement system will be held accountable. I thank Westchester County D.A. Scarpino, Jr. for prosecuting these thefts.”

“This is another instance where people trying to scam the system have gotten caught taking money from the people of New York,” said Scarpino, Jr. “We continue to work with State Comptroller DiNapoli to stop this kind of fraud. We hope this sends a message to others who might think they could get away with it.”

Bigelow and Nash appeared before Westchester County Court Judge David Zuckerman. Bigelow and Nash are due back in court Jan. 6 for sentencing.

Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse.  New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at investigations@osc.state.ny.us, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 14th Floor, 110 State St., Albany, NY 12236.

Westchester County District Attorney Anthony A. Scarpino, Jr. leads the largest district attorney’s office north of New York City. The office employs more than 200 assistant district attorneys, criminal investigators and support staff. The District Attorney’s Office works with over 40 local police departments, the Westchester Department of Public Safety, New York State Police, as well as other state and federal law enforcement agencies. Contact us at info@westchesterda.net.

ACTIONNYC: MAYOR’S OFFICE OF IMMIGRANT AFFAIRS ANNOUNCES FUNDING AWARDS TO ORGANIZATIONS PROVIDING FREE AND SAFE IMMIGRATION LEGAL SERVICES TO NEW YORKERS CITYWIDE

 

ActionNYC RFP awards more than $16 million over the next 2.5 years to 21 community-based organizations and legal service providers across the five boroughs. Selected organizations will provide free high-quality immigration legal services to the City’s most historically under-represented communities in over 40 languages and indigenous dialects.

 

New ActionNYC Capacity-Building Fellowship supports the development of immigration legal services programs in community-based organizations serving hard-to-reach African, Asian, and Caribbean immigrant communities.

 The Mayor’s Office of Immigrant Affairs and Department of Social Services/Human Resources Administration celebrate five years since the launch of ActionNYC by awarding 21 community-based organizations (CBOs) and legal service providers with more than $16 million in funding over the course of the next 2.5 years to provide immigration legal services to New York City’s immigrant communities. ActionNYC provides immigrant New Yorkers with free, comprehensive immigration legal screenings, legal representation, accurate and timely immigration-related information, and referrals to City-funded and community-based resources and support services.

 

Concluding a Request for Proposals (RFP) process initiated in November 2019, this investment further institutionalizes ActionNYC—the City’s premiere, free, community-based immigration legal services program—into the fabric of City-funded service offerings. Through the RFP awards, services will be provided at trusted community sites and at public schools, hospitals, and libraries citywide; anchored with a continued citywide hotline and appointment making system; and supported by continued legal training and assistance for ActionNYC attorneys and navigators.

 

The selected CBOs are uniquely positioned to meet community-specific needs due to their immigration legal expertise, strong local ties, and cultural and linguistic competence, and will serve immigrant communities that are historically under-represented and hard to reach. Through these awards, ActionNYC increases service provision to African, Asian, and Caribbean communities and furthers the City’s commitment to greater racial equity.

In addition to these awards, the City will provide more than $400,000 in funding to the ActionNYC Capacity-Building Fellowship program, which supports the development of legal expertise, infrastructure, and capacity of community-based organizations with small, limited, or growing immigration legal service programs. In Fiscal Year 2021, Fellows will serve immigrants from South Asia, Asia, Africa, Central and South America, the Caribbean, and the Middle East, as well as immigrant members of the LGBTQ community.

 

“During this administration, we have made the largest local investment in immigration legal services in the nation because we know keeping families together and helping immigrant New Yorkers thrive makes us stronger as a city,” said Mayor’s Office of Immigrant Affairs Commissioner Bitta Mostofi. “At a time when immigrant families continue to face cruel, xenophobic threats by the Trump Administration, New York City continues to stand with our immigrant communities. Furthering our commitment to diversity and inclusion by working with community organizations deeply rooted in our city’s hardest-to-reach immigrant communities, ActionNYC will reach even more New Yorkers in need at the trusted places they commonly turn to for help.”

 

“Penalizing families and children seeking food assistance and other essential services to make ends meet is unconscionable and un-American,” said Department of Social Services Commissioner Steven Banks. “Amid a pandemic and an unprecedented economic crisis, the Trump Administration is actively sowing distrust in government among our immigrant communities, which will only make our recovery harder. Our City remains committed to doing everything we can to protect and support our immigrant neighbors—and ActionNYC embodies this mission and commitment, which is why we’re proud to celebrate its progress and expand it to take that progress even further. We urge any New Yorker with questions or concerns about benefits, services, livelihood, or legal matters to get free legal help via the ActionNYC initiative.”   

  

“We are grateful for the partnerships MOIA is further enhancing to ensure all New Yorkers understand their rights regardless of their immigration status and are able to seek critical services throughout the City,” said NYC Health + Hospitals President and CEO Mitchell Katz, MD. “Our public hospital system has historically come to the aid of undocumented populations to provide important healthcare services. We’re proud to continue to advocate for these populations alongside other City agencies, CBOs, and allies.”

 

“ActionNYC is a critical resource for thousands of immigrant New Yorkers, and these partnerships will help expand access to free and safe immigration legal services for communities in need,” said Schools Chancellor Richard A. Carranza. “We are proud to help connect New Yorkers to these services through our schools and know this initiative will strengthen legal assistance for immigrant residents across the five boroughs.”

 

“Over the past nearly five years, ActionNYC has provided thousands of non-citizens living in New York City with a range of vital—and free—legal services, with the goal of ensuring that all New Yorkers, regardless of immigration status, can access the assistance to which they are entitled,” said HRA Administrator Gary Jenkins. “As our City continues to recover from the unprecedented COVID-19 pandemic, with a focus on building back fairer and more equitably than before, this Administration understands that all communities must be able to share in the growth and prosperity. Our expansion of ActionNYC continues to make sure New York City remains a place where anyone can strive towards a better future and thrive.”   

 

“For 125 years, The New York Public Library has welcomed New Yorkers from all walks of life, providing greater access to opportunities and a deeper sense of community,” said Adriana Blancarte-Hayward, Manager of Outreach Services at The New York Public Library. “We are proud to be a trusted space for newcomers to our City, offering vital programs for immigrants. Opening our doors to legal service organizations that provide valuable programs that complement our offerings furthers our mission to ensure everyone who visits the Library receives the support they need to succeed.”

 

“The library is very often the first stop for immigrants upon their arrival in New York City and is as essential to the modern immigrant experience as Ellis Island was to those who arrived here a century ago,” said Nick Higgins, Chief Librarian at The Brooklyn Public Library. “We have long provided language classes, citizenship prep groups, legal services, civics workshops and a safe space for New York's diverse immigrant community to grow and thrive. We are delighted to be a part of Action NYC to continue this important, even urgent work in hard-to-reach-communities across the borough.”

 

New York City is home to 3.1 million immigrants who comprise about 37 percent of the city’s population and 45 percent of its workforce. Recognizing that when immigrants thrive, our City thrives, the de Blasio administration launched ActionNYC in December 2015 to provide immigrant New Yorkers with access to free, high-quality immigration legal services in their language, at safe locations in their community. The initial investment was more than $7.9 million—then the largest local investment in immigration legal services in the nation. 

 

Over the ensuing years, the current federal administration’s anti-immigrant policies, practices, and rhetoric heightened concerns among immigrant New Yorkers and increased the need for free and trusted immigration legal services. In this high-pressure environment, with the stakes for New York City’s immigrants higher than ever, ActionNYC fulfilled its mandate and provided immigrant New Yorkers with high-quality and timely immigration-related information and legal services, at trusted community locations, by professionals with relevant cultural and linguistic competencies. ActionNYC also provided referrals to other City-funded programs and organizations providing services contributing to the broader health and well-being of immigrant communities. Since its launch, ActionNYC has served over 35,000 immigrant New Yorkers and filed over 12,000 cases. 

 

The ActionNYC model enables community-based organizations to optimize their capacity to provide immigrant families with high quality, free legal services by pairing attorneys with trained navigators. Community navigators are community members who receive specialized training to assist in the provision of quality immigration services in their communities. Selected organizations receive legal technical assistance, including legal trainings and assistance in gaining or maintaining recognition and accreditation from the U.S. Department of Justice’s Office of Legal Access Programs (OLAP). This model was designed with input from a range of City agencies, legal service providers, community partners, and philanthropic partners.

 

The ActionNYC RFP awarded contracts will further ensure CBOs and legal service providers with linguistically competent staff can serve community members with free, safe, and high-quality immigration legal services in their language at trusted community sites. Through these new partners, ActionNYC will provide services to community members from hard-to-reach immigrant populations in neighborhoods throughout all five boroughs.

 

ActionNYC provides free comprehensive legal screenings to all of its clients and provides application assistance for a wide range of cases, including green card renewals, Deferred Action for Childhood Arrivals (DACA) renewals, Temporary Protected Status (TPS) applications, and citizenship applications. Individuals also receive other ancillary benefits, including referrals for non-immigration-legal needs including food assistance, education assistance and opportunities, housing support, non-immigration legal services, mental health services, and health care.  ActionNYC also connects community members with key City programs including NYC Care, a key component of Mayor de Blasio’s Guaranteed Health Care commitment to New Yorkers, and IDNYC, the largest municipal identification program in the nation. With this support, New Yorkers will continue to receive comprehensive immigration legal screenings and, where needed, legal representation over the course of the coming years.

 

The organizations receiving funding, either directly or via sub-agreement, are:

 

1. African Communities Together (ACT)
2. African Services Committee (ASC)
3. Arab American Association of New York (AAANY)
4. BronxWorks, Inc.
5. CAMBA Legal Services, Inc.
6. Caribbean Women's Health Association (CWHA)
7. Catholic Charities Community Services (CCCS)
8. Chhaya Community Development Corporation (Chhaya CDC)
9. Chinese American Planning Council (CPC)
10. Haitian Americans United for Progress (HAUP)
11. Immigrant Justice Corps (IJC)
12. Jacob A Riis Neighborhood Settlement
13. Little Sisters of the Assumption (LSA)
14. Lutheran Social Services of Metropolitan New York (LSSNY)
15. Make the Road New York (MRNY)
16. MinKwon Center for Community Action
17. New York Legal Assistance Group (NYLAG)
18. Northern Manhattan Improvement Corporation (NMIC)
19. SCO Family Services/Center for Family Life (CFL)
20. Sunnyside Communities (SCS)
21. The Door

 

“Our organization has been providing multilingual, culturally competent immigration legal services to underserved African immigrant communities across New York City for seven years. But until now we have been dependent on lawyers from other agencies to handle our cases,” said Amaha Kassa, Executive Director of African Communities Together (ACT). “This award from ActionNYC will enable ACT to serve our communities directly and meet the increasing needs of New York's fast-growing African immigrant communities.”

 

“For nearly four decades, African Services Committee has been dedicated to providing broad-spectrum solutions to immigrants, refugees, and asylees and we look forward to providing additional legal immigration services as a proud ActionNYC partner to lift up newcomers during this time of great fear, uncertainty, and loss,” said Franco Torres, Supervising Attorney at African Services Committee (ASC). “ActionNYC is an important program that allows organizations like ours to better serve and protect immigrant New Yorkers. We are thrilled to be a part of the expansion of this program and the vital support it offers to immigrant New Yorkers.”

 

“Since 2015, ActionNYC has changed and saved lives for thousands of immigrants across New York,” said Marwa Janini, Executive Director of the Arab American Association of New York (AAANY). “As our city deals with the impacts of COVID-19, ActionNYC has been more essential than ever, providing lifelines to tens of thousands of families struggling due to the pandemic. We're incredibly proud to be a part of ActionNYC's work to protect and support immigrants who are the backbone of our city, and we look forward to working with ActionNYC to support New Yorkers through this crisis and beyond.”

 

“BronxWorks is proud to accept the ActionNYC grant awarded by the Mayor’s Office for Immigrant Affairs. The ActionNYC program plays a critically important role in strengthening our community by providing free, safe, and reliable services to individuals and families that make up New York,” stated BronxWorks, Inc. “This program, in combination with the myriad of other services provided by BronxWorks, allows the agency to assist community members in a holistic manner that ensures the complex needs of the community can be addressed as a whole.”Today, the Mayor’s Office of Immigrant Affairs and Department of Social Services/Human Resources Administration celebrate five years since the launch of ActionNYC by awarding 21 community-based organizations (CBOs) and legal service providers with more than $16 million in funding over the course of the next 2.5 years to provide immigration legal services to New York City’s immigrant communities. ActionNYC provides immigrant New Yorkers with free, comprehensive immigration legal screenings, legal representation, accurate and timely immigration-related information, and referrals to City-funded and community-based resources and support services.

 

DEC ENCOURAGES HIKERS AND VISITORS TO CHECK OUT NEW YORK’S HIDDEN GEMS WHILE CONTINUING TO PLAY SMART * PLAY SAFE * PLAY LOCAL

 

DEC Encourages New Yorkers to Avoid Crowded Destinations and Recreate Responsibly during State's Ongoing Response to COVID-19 

New York State Department of Environmental Conservation (DEC) Commissioner Basil Seggos today is encouraging outdoor enthusiasts to explore less-traveled destinations instead of crowded hotspots while following the principles of Leave No Trace. In anticipation of visitors looking to get outside over the upcoming holiday weekend, Commissioner Seggos called on visitors to do their part to protect all State Lands for future generations by packing out what they bring in and not leaving litter behind. Due to the ongoing COVID-19 pandemic, DEC is also reminding hikers and visitors to use common sense guidelines for smart and safe recreation, including incorporating social distancing and wearing a face mask, planning trips ahead, choosing a destination close to home, and visiting at off hours. "New Yorkers are desperate for a chance to get outside, go for a hike, see new sights, and get a breath of fresh air. It’s fantastic that so many people are discovering the outdoors, but these lands belong to all of us and everyone can help to protect State Lands for generations to come," Commissioner Seggos said. "We’re asking New Yorkers to try a trail less traveled and enjoy the many other incredible destinations across the state so that we can all recreate safely and responsibly during the pandemic.” Over the last decade, DEC has witnessed a steady increase in the number of visitors recreating on the lands and waters of the Forest Preserve and conservation easements in the Adirondacks, particularly in the High Peaks area. DEC has also seen increased use in the Catskills and on lands statewide. With this increase in use, DEC is also seeing an uptick in impacts to natural resources and recreational infrastructure, and complaints about degradation of the visitor experience. DEC held four focus group meetings in 2018 to help identify strategies and potential solutions to responsible recreation. A stakeholder meeting in 2019 identified priorities to address including illegal parking, public safety, and trail degradation. The outcome of the stakeholder meeting was the formation of the High Peaks Strategic Planning Advisory Group, which is developing its final report to submit to DEC. Rather than visiting the High Peaks, DEC is encouraging New Yorkers to check out the State’s hidden gems. In the Southern Tier, Cameron State Forest in Steuben County is a great place to start for those looking for an opportunity in the more remote wilderness. While there are no designated parking lots, parking is available along the edges of Pump Station Road. Wildlife spotted in the area include black bear, black-throated warblers, and brook trout. Outdoor adventurers looking for easier trails can visit Pharsalia Woods State Forest, which features the Round Pond Observation Platform in Chenango County. An accessible boardwalk leads from the accessible parking lot to the platform, which overlooks the 90-acre Round Pond wetland complex. In Steuben County, Urbana State Forest has a short loop trail with access to Huckleberry Bog. On Long Island, the Ridge Conservation Area offers 184 acres of mixed wooded and open habitats. Trail markers and an interpretive trail help visitors explore the property that includes 81 acres of reverting farm fields, 85 acres of forest, and four acres of fishable ponds. Randall Pond is a prime site for a picnic or casting a line. In addition, Long Island visitors can check out the Clarence Hylan Beavers Memorial Trail in Smithtown. Part of Kings Park Unique Area, this 69-acre green space is open for hiking and wildlife viewing and features an accessible parking lot and trail. The longest hiking trail is the 1.1-mile Blue Loop Trail. The Clarence Hylan Beavers Memorial Trail is a 0.3-mile accessible trail made of crushed stone and sand. The trail drops one foot in elevation for every 20 feet in length. In the Finger Lakes, check out Conesus Inlet Wildlife Management Area in Livingston County, which has two trails that can be accessed from Sliker Hill Rd. The first trail connects three boardwalks that extend out into the edge of the marsh. A portion of the trail along the stream is fully accessible. The second trail is a loop trail that parallels the road for about half its length and travels through field habitat. In Central New York, Muller Hill Historic Site in Madison County features a 0.25-mile accessible trail, which provides access to the former mansion site of Louise Muller and a wildlife viewing site on Muller Pond. The Mohawk Valley features the Black River Wild Forest in Herkimer and Oneida counties. The 127,135 acres are located in the southwestern foothills of the Adirondack Forest Preserve and offer a broad spectrum of recreational opportunities. Elevations in the unit range from 1,350 to 2,600 feet, with the highest relief found between Nicks Lake and Woodhull Lake and around North and South Lakes. The Ledge Mountain Trail (Vista Trail) in the town of Ohio, Herkimer County, is 2.25 miles east of the intersection of NYS Routes 8 and 365, on Rt. 8. Look for the large snowplow turnaround on the north side of the road. Park in the turnaround on Route 8 and hike in on the right-hand driveway until the sign-in register/trail head sign. The Vista Trail is an easy 1.1-mile hike to a scenic view on Ledge Mountain overlooking the West Canada Creek Valley. The Bear Lake Trail in the town of Ohio, Herkimer County, is 1.25 miles down the Herkimer Landing Road from the hamlet of McKeever. Grass River Wild Forest in St. Lawrence County is home several rivers, streams, lakes, and ponds, providing plenty of opportunities for paddling, boating, and fishing. One of the scenic features is Harper Falls on the North Branch of the Grass River. The trailhead just off the Donnerville Road is a fairly easy 1.4 miles round trip with a vertical drop of approximately 60 feet. The WAG Trail can be found in Allegany County, in Western New York. It’s a nine-mile, multi-use recreational trail and historic transportation corridor that extends between the village of Wellsville and the Pennsylvania state line. The trail follows the route of the former Wellsville, Addison and Galeton (WAG) Railroad along the upper Genesee River. In New York City, Old Place Creek in Richmond County is home to 70 acres of land featuring a critical tidal and subtidal wetland habitat. The headwaters for the creek begin in the forested wetlands of Graniteville Swamp Woods and then slowly meander toward the northern end of the Arthur Kill next to Goethals Bridge, providing a wonderful stretch of tidal salt marsh. Also in Richmond County is Mt Loretto State Forest, 74 acres of unique and diverse green space. This property includes both mixed hardwood forest and wetland habitats, features that make it a beautiful area to hike and one of the best places in the area to spot amphibians. The Mid-Hudson region is home to the Sundown Wild Forest in Ulster County. A series of picturesque waterfalls with pools, dropping about 30 feet in four stages can be found at the Vernooy Kill Falls. A foot bridge crosses the base of the falls for a gorgeous view. Nearby is a tall stonewall, a remnant of the Vernooy Mill which served as a major crossroads where farmers near and far brought grain for milling 200 years ago. The upper falls of the Vernooy Kill can be accessed via a multiple use trail starting at the newly constructed parking area on Upper Cherrytown Road in the town of Rochester. For the Capital Region, check out Taconic Ridge State Forest in Rensselaer County. The Taconic Crest Trail runs 35 miles along the New York, Vermont, and Massachusetts border, with a maximum elevation of almost 3,000 feet at Berlin Mountain. A popular section of the trail begins in Petersburg, New York, and leads to the popular "snow hole," a cave-like crevice where snow is sometimes found even in summer. Leave No Trace Litter is both an eyesore and poses a danger to local wildlife and delicate ecosystems. DEC is encouraging visitors to the State's natural areas and facilities to keep New York's environment clean by properly disposing of waste. Follow these tips to Leave No Trace:  Carry out what you carry in. Don't leave trash, food, gear, or any other personal belongings behind.  Trash your trash. Use designated receptacles when available or carry your trash in a small bag so you can throw it out at home. Never put trash in outhouses or porta-potties.  Use designated bathroom facilities when available. If traveling, use the rest areas closest to your destination before you arrive. Learn how to dig a cat hole(leaves DEC website) and properly dispose of your human waste for the times when nature calls and a bathroom is not available.  During the COVID-19 public health crisis, take extra precautions when picking up trash you find on the trail. Wear gloves and make sure to hand sanitize when you are done.  This past summer, DEC and the Office of Parks, Recreation and Historic Preservation (State Parks) launched the PLAY SMART * PLAY SAFE * PLAY LOCAL Campaign to encourage all New Yorkers to recreate safely, responsibly, and locally this summer and to always treat fellow outdoor adventurers with respect. The campaign invites people to take the PLAY SMART * PLAY SAFE * PLAY LOCAL pledge, and promise to use common sense to protect themselves and others when enjoying the outdoors. During the State's ongoing response to COVID-19, New Yorkers across the state want and need to get outside for a nature break, which is good for physical and mental health. The campaign and pledge include common sense guidelines for smart and safe recreation, including incorporating social distancing and wearing a face mask, planning trips ahead, choosing a destination close to home because public restrooms and restaurants may not be open, and visiting at off hours. The agencies are also encouraging New Yorkers to take the pledge and use the hashtag #PlaySmartPlaySafePlayLocal when sharing their outdoor adventures on social media.   New Yorkers are strongly advised to plan their outdoor adventures ahead of time and choose alternate destinations if their first choice is closed or crowded. Check parks.ny.gov and 511 for park capacity closure alerts and visit the DECinfo locator to find the nearest DEC-managed lands. DEC and State Parks websites also feature guidelines to help New Yorkers safely engage in outdoor activities including swimming, hunting, fishing, boating, golf, and hiking. Indoor spaces and restrooms at State Parks and DEC public facilities may remain closed out of an abundance of caution to prevent community spread of COVID-19, so New Yorkers are encouraged to stay local, within their region, and use the #RecreateLocal hashtag on social media. Note: Attached photos of Conesus Inlet Wildlife Management Area, WAG Trail and Old Place Creek courtesy of DEC.

DEC 2020 Hidden Gems Conesus Trail in Livingston County.jpg DEC 2020 Hidden Gems Old Place Creek in Richmond County.jpg DEC 2020 Hidden Gems WAG trail in Allegany County.jpg