Computer Programmer Sentenced To Prison For Making False Statements About His Involvement In The “Silk Road” Website

 

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that MICHAEL R. WEIGAND, a/k/a “Shabang,” a/k/a “~Shabang~,” a/k/a “~s,” a/k/a “s,” was sentenced to eight months in prison today for making false statements to federal agents about his involvement in, and his work for, the “Silk Road” online illicit black market, which was responsible for distributing hundreds of millions of dollars of narcotics and other contraband.  WEIGAND’s false statements concealed his role in the operation of the Silk Road website.  WEIGAND previously pled guilty before United States District Judge William H. Pauley III, who also imposed today’s sentence.

Acting U.S. Attorney Audrey Strauss said:  “Michael Weigand supplied technological advice directly to the leadership of Silk Road, a secret online marketplace for criminal activity.  He laundered Silk Road proceeds and traveled overseas to remove Silk Road evidence from a co-conspirator’s residence.  Weigand subsequently lied to law enforcement, falsely claiming to have done nothing for Silk Road, and has now been sentenced to prison for that knowing falsehood.”

According to the Information, court filings, statements made in court, and evidence presented during the 2015 trial of Ross Ulbricht, Silk Road’s founder and chief administrator:

Ulbricht created Silk Road in approximately January 2011, and owned and operated the underground website until it was shut down by law enforcement in October 2013.  Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet at the time.  During its more than two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to well over one hundred thousand buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.  Silk Road was specifically designed to allow its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement through the use of the Tor network and a Bitcoin-based payment system. 

WEIGAND, a computer programmer and electrical engineer, worked with Roger Thomas Clark, the senior adviser to Ulbricht, on certain aspects of Silk Road.  For instance, WEIGAND and Clark worked to identify technological vulnerabilities in the Silk Road website.  WEIGAND also supplied technological advice directly to Clark and Ulbricht.  After Silk Road was shut down in October 2013, WEIGAND laundered more than $75,000 in Silk Road proceeds.  In addition, in late 2013, the Government disclosed that it had been able to access the contents of Ulbricht’s laptop computer, which identified Clark as Ulbricht’s right-hand man; shortly after this revelation, Clark transferred more than $20,000 to WEIGAND in Bitcoin, and WEIGAND traveled to Clark’s London residence and removed Silk Road evidence.

In January 2019, WEIGAND was questioned by IRS and FBI Special Agents.  After being specifically warned that it is a federal crime to make a false statement to a federal law enforcement officer, WEIGAND attempted to cover up his involvement in Silk Road by falsely stating, among other things, that (1) he never opened an account on Silk Road; (2) he never used the online pseudonyms “Shabang” or “~Shabang~”; (3) he never transferred Bitcoin to Silk Road; (4) he never exposed computer security vulnerabilities in the Silk Road website; (5) he never communicated with anyone who used the online pseudonym “Dread Pirate Roberts,” “DPR,” or “Silk Road” (i.e., Ulbricht); (6) he never performed any services for the Silk Road website; and (7) he did not know the true identity of “Variety Jones” (one of Clark’s pseudonyms) on Silk Road.  WEIGAND also falsely stated that the purpose of his trip to London in late 2013, following the takedown of the Silk Road website and arrest of Ulbricht, was to meet with Clark’s associate regarding a marijuana seed business; in fact, WEIGAND went to Clark’s London residence and removed physical Silk Road evidence.

In addition to his prison term, WEIGAND, 59, of Kirtland, Ohio, was sentenced to three years of supervised release.

The founder and operator of Silk Road, Ross Ulbricht, was previously convicted of seven offenses after a jury trial: distributing narcotics, distributing narcotics by means of the Internet, conspiring to distribute narcotics, engaging in a continuing criminal enterprise, conspiring to commit computer hacking, conspiring to traffic in false identity documents, and conspiring to commit money laundering.  Ulbricht was sentenced principally to life in prison and $183 million in forfeiture. 

Ulbricht’s senior adviser, Roger Thomas Clark, pled guilty to conspiring to distribute narcotics and his sentencing is currently pending.  Clark faces a maximum potential sentence of 20 years in prison.

Ms. Strauss praised the outstanding joint efforts of the Boston Field Office of the Internal Revenue Service – Criminal Investigation, the New York and Washington Field Offices of the Federal Bureau of Investigation, the New York Field Office of Homeland Security Investigations, and the New York City Police Department.  Ms. Strauss also thanked the FBI’s Cleveland Office for its assistance.

Governor Cuomo Calls on the Federal Government to Take Action in Wake of Highly Contagious Variant of Covid-19 Virus Circulating in the United Kingdom and COVID-19 indicators in New York State Dec. 20, 2020

 

6,185 Patient Hospitalizations Statewide

1,045 Patients in the ICU; 600 Intubated

Statewide Positivity Rate is 5.05%

123 COVID-19 Deaths in New York State Yesterday

 Happy Sunday. Go Bills! Today is date 295. 197,000 tests reported. Interestingly on the number of tests, we saw before Thanksgiving and we're starting to see this week and my guess is we'll see it more through the week, just before the holidays people tend to get tested, which is probably prudent, because they want to make sure if they're positive and negative before they start to socialize with people. In any event, overall state with the micro-clusters 5.05, down from 5.18. 123 New Yorkers passed away yesterday. They are in our thoughts and prayers. 6,185 hospitalized, that's down 23. 1,045 COVID patients in ICU, that's down 43. 600 intubated, that's down 10.

Finger Lakes: 8.34. By the way, Finger Lakes- my Executive Orders, as you know, just for a point of fact, my Executive Orders can be overwritten at any time by a simple majority resolution of the legislature. Legislators have convened several times. Any executive order that they want to overrule and negate, it's just a simple majority resolution. So, this concept of, "Oh Executive Orders trump the legislature," they don't. It's just not true. They are an expediting action, but the legislature can negate it. But, Finger Lakes 8.3. It's the highest number in the state of New York. Mohawk Valley 8.18; Capital Region 6.8; Central New York 6.7; Western New York 6.3. Go bills, go Western New York. We're making progress. Mid-Hudson 6.3; Long Island 6.3; North Country 4.9; New York City 4.2; Southern Tier 2.4. Southern Tier is the turnaround story. New York City is 5.3.

Looking in New York City, 5.3 Staten Island; 4.9 the Bronx; 4.8 Queens; 4.3 Kings; 2.7 Manhattan; 5.3 Staten Island; 4.9 Bronx; 4.8 Queens; 4.3 Kings; 2.7 Manhattan. There is no politicizing the virus. Staten island 5 .3, why does it have the highest percentage in New York City? It's not the most dense. It doesn't have the most transportation. Why? COVID affects Democrats and it affects Republicans. Period. Don't play politics with COVID. You lose.

Today's data is summarized briefly below:

• Test Results Reported - 197,251
• Tested Positive - 9,957
• Percent Positive - 5.05%
• Patient Hospitalization - 6,185 (-23)
• Patients Newly Admitted - 822
• Hospital Counties - 55
• Number ICU - 1,045 (-43)
• Number ICU with Intubation - 600 (-10)
• Total Discharges - 95,307 (+728)
• Deaths - 123
• Total Deaths - 28,598

Hospitalizations by percentage of population - Capital Region 0.03; Central New York 0.05; Fingers Lakes 0.06; Long Island .04; Mid-Hudson 0.03; Mohawk Valley 0.04; New York City 0.02; North Country 0.02; Southern Tier 0.03; Western New York 0.03; statewide 0.03 - 0.03 being the relevant number in that discussion.

Two points I'd like to make - one, we're doing some research which I will report on tomorrow. The virus is an evolving situation and the circumstances change and the virus changes. The overwhelming spread is now coming from holiday spread, socialization spread. When you close bars, restaurants, people are careful at work, density comes down. The main spread overwhelming is living room spread, socialization spread, holiday spread, call it whatever you want. If you look at the places that had the most travel during the Thanksgiving holiday, they had the greatest Thanksgiving spike, so the places with the most travel have the greatest Thanksgiving spike. New York, Connecticut, Jersey had less travel during Thanksgiving and it appears proportionately less of a spike. Now that could be one of two things. It could be you're importing the virus through people coming in which we have the quarantine protection which should help. Or it could just mean increased socialization - more people are flying in so there is more parties, but that is something to keep in mind for Christmas and the Christmas season, Hanukkah, Kwanzaa, et cetera, because that is what we're going to be looking at.

Next point, we're joined by Rick Cotton today. Rick Cotton is the head of the Port Authority of New York and New Jersey. You remember Rick Cotton - he was on the cover of the New York Post, got COVID very early on from the work at the airports but he answered the front door, anyway, and looked very attractive on the cover of the New York Post and I sent it to him framed. But that's besides the point. We also have Dr. Zucker, Melissa DeRosa, Gareth Rhodes on the phone.

There is a disturbing story coming out of the UK with this new variant of the virus which according to Boris Johnson is 70 percent more transmissible. The World Health Organization is aware of the new variant. They say the death rate isn't higher, but it's 70 percent more transmittable according to Mr. Johnson. A number of countries have banned people from the UK, a number of countries. The Netherlands has banned people from the UK, Belgium and Italy. Ireland, France and Germany are considering a ban of people from the UK. The UK shut itself down again after finding this variant. This is after Boris Johnson said last week, "we're not cancelling Christmas, we would never do that." They find out about this new variant and now they do 180 degrees, and it's so apparently dangerous the UK imposed its own shutdown. What are we doing? You have 120 countries who demand that a test be taken on the UK side before a person gets on the fight to come to their country. 120 countries demand that before you get on a flight in the UK to come to their country, you have to have tested negative. The United States does not require it. As I mentioned before, other countries are just banning people coming from the UK. We have about 6 flights a day coming in from the UK and we have done absolutely nothing.

Now, to me this is reprehensible because this is what happened in the Spring. Coronavirus is in China, it's in China, it's in China. No it wasn't. It went to Europe, and it came from Europe, and we did nothing. The European travel ban was March 16th. The China travel ban was like February 1st. The virus left China, went to the UK, came here from China. Right now, this variant in the UK is getting on a plane and flying to JFK. Right now, today. 120 countries require a test, we don't. Other European countries have done a ban, we haven't, and today that variant is getting on a plane and landing in JFK. How many times in life do you have to make the same mistake before you learn? Be one of the 120 countries that requires a test before they get on the plane to come to the United States. This is the mistake we made. Where is HHS? Where is the CDC? Where is the NIH? This is the same mistake and literally 6 flights a day, and all it takes is one person. All it takes is one. The Port Authority has no authority to ban passengers, health monitor passengers, it's federal. Why at a minimum you wouldn't require a test like the 120 other countries, or why you wouldn't consider a ban like the other European countries? But doing nothing is negligent; it's grossly negligent just like the Spring, because doing nothing is doing something. Every day the federal government does nothing on this problem they do something. They allowed another 6 flights to come into New York. Sometimes in life doing nothing is doing something, and this is one of those times and that's what they did in the Spring.

Brooklyn Tax Preparer Pleads Guilty to Criminal Tax Fraud For Stealing Sales Tax Payments From Clients

 

The Five Pillars Financial Services, LTD, pays $191,000 in restitution and is barred from providing tax preparation services in New York State

 The New York State Department of Taxation and Finance, along with the Brooklyn District Attorney’s Office, today announced that Yehad Abdelaziz and his corporation The Five Pillars Financial Services, LTD, pleaded guilty to criminal tax fraud.

 

A Tax Department investigation determined that between March 2015 and August 2017 Abdelaziz received money from business owners and filed sales tax returns on their behalf. However, he underreported sales or reported zero gross sales and instead pocketed the sales tax payments his clients entrusted him to remit on their behalf.

 

“We will continue to aggressively pursue unscrupulous tax preparers who betray the trust of clients and deprive communities and the state of revenue needed for vital services,” said New York State Commissioner of Taxation and Finance Michael Schmidt.

 

Brooklyn District Attorney Eric Gonzalez said, “Tax preparers who cheat don’t only shortchange their clients, but effectively steal from all of us. They must be held accountable and pay restitution to victims. My Office will continue to work with our partners to prosecute tax fraud and other forms of larceny schemes.”

 

Abdelaziz and The Five Pillars Financial Services, LTD, paid more than $191,000 in restitution. The payment includes the forfeiture of more than $6,700 that was seized as part of a search warrant executed by the Tax Department. Both Abdelaziz and his corporation are also prohibited from providing tax preparation services of any kind for one year.

 

Report fraud   You can report tax evasion and fraud online at the Tax Department's website or by phone at 518-457-0578. The information is kept confidential. The Tax Department promptly reviews each complaint and takes corrective action when appropriate.

New York State Reminds Snowmobilers to Ride Safely

 

Sledders Reminded To Use COVID-19 Safety Measures at Trailheads, During Breaks

 At the start of snowmobiling season, New York State urges riders to keep safety in mind, both when operating and during any breaks with fellow riders.

During the COVID-19 pandemic, snowmobile safety courses continue to be offered. Successful completion of this course, results in the issuance of a NYS Snowmobile Safety Certificate.

This certificate is required for youth between ages 10 and 18 to operate a snowmobile, but all riders can benefit from taking a course that provides fundamental information which all should possess to ensure the safety of both rider and other trail users.

State Park Police, State Troopers, Environmental Conservation Police Officers, Forest Rangers and local enforcement agencies enforce State Laws on snowmobile trails, including instances of unsafe or reckless operation, speed limits including the state’s maximum speed of 55 MPH, and operating while intoxicated.

Those rules apply on all local and club trails, as well as the 10,500-mile Statewide Trail System, which traverses 45 counties and includes lands under the jurisdiction of state Office of Parks, Recreation and Historic Preservation, the state Department of Environmental Conservation (DEC), New York State Canal Corporation, local governments, and many private landowners.

State Parks is anticipating an increase in snowmobile trail use this season. Outdoor recreational equipment sales have increased during the pandemic, snowmobile registrations in New York are running ahead of last year’s figures and the current closure of the U.S.-Canadian border will prevent New Yorkers from going to that country for snowmobiling.

“We want to remind snowmobilers, especially those that may be new to the sport, of safe operating practices, and that reckless operation, speeding and operating while impaired or intoxicated present significant and serious risks to all trail users, and rules will be strictly enforced by law enforcement” said State Park Police Chief Mark Van Wie. “While outside riding is a safe activity during this pandemic, COVID-19 safety protocols should be followed at trailheads and during breaks This would include maintaining a safe social distance of at least six feet and the wearing of face masks. Also, snowmobilers should not be sharing gear or other items.”

State Police Acting Superintendent Kevin P. Bruen said, “We encourage snowmobile enthusiasts to take advantage of the beautiful trails in our great state, but we want to make certain the first priority is safety. Remember, there is no excuse for operating any motorized vehicle or device while impaired, whether it be a vehicle, snowmobile, boat or ATV.   By making responsible and safe choices, New Yorkers can do their part to keep our trails safe and enjoyable for all.” 

DEC Commissioner Basil Seggos said, “Year after year, snowmobiling continues to be one of New York State’s most popular winter activities and we encourage outdoor enthusiasts to check out the abundant trails available close to home. In addition to the usual precautions for riding safely and following the rules, I join State Parks in reminding all people to wear masks, socially distance, and observe the other important guidelines to stop the spread of COVID-19.”

The New York State Department of Motor Vehicles (DMV) reminds New Yorkers to register their snowmobiles before hitting the trails. Snowmobile registrations must be renewed annually and may be renewed online on the DMV website.

"This is perfect weather to enjoy snowmobiling in New York and I urge riders to ride responsibly," said DMV Commissioner Mark J.F. Schroeder. "We remind New Yorkers that they are legally required to wear a helmet and to never operate a snowmobile while impaired. Be safe and enjoy the ride."

Under COVID-19 guidance provided by the state Health Department, individuals must wear face coverings when they are in a public and are within six feet of distance from other individuals; in a situation or setting where they are unable to maintain six feet of distance from other individuals; or in a public or private transportation carrier or for-hire vehicle.

Snowmobile safety courses remain available, with limited class size under state Health Department safety guidance. A listing of available classes can be found online at https://parks.ny.gov/recreation/snowmobiles/safety-courses.aspx

Recommendations for safe riding include:

• Prior to starting your ride, check over the snowmobile to make sure it is in good working order and carry emergency supplies.
• Always wear a DOT- or SNELL-approved helmet and make sure to wear the proper snowmobile gear including bibs, jackets, boots, and gloves.
• Always ride with a buddy or at least one other person.
• Ride responsibly and within your abilities.
• Always ride to the right side of the trail especially at hill crests and curves.
• Operate at a speed which is safe and prudent for the given conditions.
• Respect landowners, obey posted signs, and stay on the marked trail.
• Frozen bodies of water are not designated trails. If planning to ride on ice, proceed with caution and be aware of potential hazards under the snow. Consider wearing a snowmobile suit with flotation built-in and carry a set of ice picks as a precaution.
• Never drink alcohol or use drugs and ride.

For more information on snowmobiling in New York, visit https://parks.ny.gov/recreation/snowmobiles.

New York State Office of Parks, Recreation and Historic Preservation oversees more than 250 individual parks, historic sites, recreational trails and boat launches, which were visited by a record 77 million people in 2019. A recent university study found that spending by State Parks and its visitors supports $5 billion in output and sales, 54,000 private-sector jobs and more than $2.8 billion in additional state GDP. For more information on any of these recreation areas, visit www.parks.ny.gov, download the free NY State Parks Explorer mobile app or call 518.474.0456. Also, connect with us on Facebook, Instagram and Twitter.

Vision Center on Lydig Avenue and PPNA Team up to Hand out 700 Toys

Saturday Santa Claus came to Vision Center at 735 Lydig Avenue along with Councilman Mark Gjonaj, Open Hand Association Inc Founder Aleksander Nilaj, and members of the Pelham Parkway Neighborhood Association to join with Vision Center employees to give out the 700 toys and gifts that were bought for the PPNA and Vision Center Annual Christmas toy giveaway.

As they passed by on the heavily traveled street those with children received a free gift, toy or book, and had the option of their child(children) take a photo with Santa Claus. There were smiles under the face masks of those who received and those who gave out the gifts, toys, or books.

Above - Some of the toys on Display to be given away.

Below - Santa stands watch over the giveaway by his new Elfs.

Above - Santa with PPNA President Blitzer, Councilman Gjonaj, Open Hands Founder Nilaj, a mother and her child. 

Below - Santa with PPNA officers Edith Blitzer, Steve Glosser, and Jacklyn Lutnick,         

Above and Below - Santa takes photos with the children.

Some children wanted their photo taken with Councilman Gjonaj.

Councilman Mark Gjonaj Toy Giveaways and COVID-19 Testing Dates and Sites

 

Governor Cuomo Signs Executive Order to Better Support Seniors and Assist the Restaurant Industry Amid the COVID-19 Pandemic

 

Safe Renewal and Registration for Real Property Tax Benefits

Sales Tax Deadline for Restaurants Extended Until March 2021

 Governor Andrew M. Cuomo today announced he has signed an Executive Order providing additional support for two of the groups hardest hit by the COVID-19 pandemic - vulnerable homeowners and the restaurant industry. Under Executive Order 202.83, local governments can continue to provide property tax exemptions for low-income senior citizens and persons with disabilities who own property through 2021 by lifting an in-person renewal requirement which would put vulnerable New Yorkers at risk of infection from COVID. Additionally, the sales tax deadline for restaurants in orange zones which have been required to suspend indoor dining will be extended until March.

"COVID has tested our collective strength and put a strain on finances for so many New Yorkers," Governor Cuomo said. "We're taking measures that will provide much needed tax relief for some of those hardest hit by this pandemic - New Yorkers over 65 and our restaurant industry. With the finish line in sight, we will continue to support New Yorkers wherever possible and fight to get the federal government to deliver real relief for those who are struggling."

Thousands of low-income senior citizens and persons with disabilities rely on property tax exemptions annually to remain in their homes. To claim or renew benefits, eligible seniors and disabled New Yorkers typically line up at town halls across the state to file the required documentation. This raises obvious concerns amid the COVID-19 public health emergency as those eligible to receive these benefits are among those most susceptible to the virus. This modification will decrease density in assessor's offices to limit the spread of COVID and ensure critical tax relief.

Under the Governor's Executive Order, local governments can automatically renew 2021 benefits for all property owners who received the benefit in 2020 unless the locality has reason to believe an individual has changed their primary address, added another owner to the deed, transferred the property to a new owner, or passed away.

In addition to the flexibility provided for these benefits, the Governor's Executive Order provides a three-month extension to the deadline for restaurants in orange zones, including New York City, to turn over sales taxes to the state. Restaurants in impacted areas were required to suspend indoor dining temporarily. Extending the sales tax deadline for payment of taxes due on December 21 to March 2021 will ease tax burdens for restaurants and bars in communities where COVID-19 metrics necessitated additional restrictions. This action also provides a degree of temporary relief as New York continues to fight to ensure the federal government provides real fiscal relief for these small businesses. Affected restaurants should follow guidance from the Tax Department to request this relief.

BRONX MAN INDICTED FOR INTENTIONALLY SETTING RIVERDALE APARTMENT BUILDING ON FIRE

 

Fire Left Three People With Lung Damage, One of Them Was Also Burned

 Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been indicted on first-degree Arson and additional charges, for intentionally setting an apartment building ablaze in the Riverdale section of the Bronx, critically injuring three people. 

 District Attorney Clark said, “The defendant allegedly started a fire in a five-story building he lived in, not caring about the danger to dozens of his neighbors. Three people sustained injuries and were in the hospital on a ventilator because of smoke inhalation. One of them required skin grafts. The victims are still suffering terrible physical and emotional pain because of the defendant’s alleged barbaric actions.” 

 District Attorney Clark said the defendant, Albert Blease, 48, of 215 West 242nd Street, was arraigned today on first, second and third-degree Arson, six counts of first-degree Assault, six counts of second-degree Assault, second and third-degree Criminal Mischief, first and second degree Reckless Endangerment, and fourth-degree Criminal Possession of a Weapon before Bronx Supreme Court Justice Efrain Alvarado. The defendant was released and is due back in court on March 18, 2021.

 According to the investigation, at approximately 9:00 a.m. on March 6, 2020 at 215 West 242nd Street, the defendant, who lived on the first floor, set gasoline cans on fire in his apartment. First responders nearby were alerted and saw Blease’s apartment on fire and went inside. They observed Blease with a machete and two gas cans in the doorway.

 The fire traveled to the apartment located above the defendant’s home, injuring Damarys Molina, 59, and Carlos Matias 37. Molina sustained lung damage and burn injuries. She received three skin grafts and was on a ventilator for a month. Blease’s next door neighbor, Joshua Pizarro, 31, who went back into the building to alert neighbors about the flames and urged them to run to safety, was also injured. Pizarro and Matias were put on a ventilator after sustaining lung damage due to smoke inhalation.
 

 District Attorney Clark thanked Emergency Services Unit Detectives Justin Hoff and Jason Egnaczyk, who responded to the scene, and NYPD Detective Robert Bourne of the Arson and Explosion Squad.

An indictment is an accusatory instrument and not proof of a defendant’s guilt.