Connecticut Army National Guard Soldier And Rikers Correction Officer Charged With Defrauding The United States Department Of Veterans Affairs And The New York City Department Of Correction

 Audrey Strauss, the United States Attorney for the Southern District of New York, and Michael J. Missal, the Inspector General of the United States Department of Veterans Affairs, Office of the Inspector General (“VA-OIG”), announced that SHAWN PIERRE HOBBS, a soldier for the Connecticut Army National Guard (“Army National Guard”) and a Rikers Island correction officer employed by the New York City Department of Correction (“NYC DOC”), was arrested yesterday in El Paso, Texas, on wire fraud and aggravated identity theft charges.  HOBBS is alleged to have defrauded the Department of Veterans Affairs (“VA”) and NYC DOC in order to receive financial and other benefits to which he was not entitled.  HOBBS is expected to be presented in federal court in El Paso this afternoon. 

U.S. Attorney Audrey Strauss said:  “Shawn Pierre Hobbs, a National Guard soldier and correction officer at Rikers Island, allegedly submitted false certifications to receive veterans benefits for hundreds of hours of work he did not perform. Moreover, Hobbs allegedly forged the signatures of his colleagues to make the fraudulent paperwork appear to be authentic. Hobbs’s alleged conduct certainly does not befit that of a sworn officer of two government agencies, and thanks to the assistance of Veterans Affairs, he is now charged criminally for fraud and identity theft.”

VA-OIG Inspector General Michael J. Missal said:  “The charges unsealed today are the result of the hard work and dedication of the VA Office of Inspector General’s special agents working with our law enforcement partners.  The VA OIG will seek to hold accountable those who perpetrate fraud and steal benefits that are intended for deserving veterans.”

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

From at least in or about April 2015, up to and including at least on or about April 8, 2021, SHAWN PIERRE HOBBS served as a soldier in the Army National Guard.  Army National Guard soldiers hold civilian jobs or attend school while maintaining their military training part-time.  The VA provides certain benefits to United States veterans, including Army National Guard soldiers, who work in approved on-the-job training programs (“VA Benefits”).  From at least in or about January 2019, up to and including at least on or about April 8, 2021, HOBBS was employed by NYC DOC as a correction officer at Rikers Island, a VA-approved on-the-job training program.  NYC DOC employees who are members of the military are entitled to paid leave, with certain limitations, while they are engaged in the performance of ordered military duty.

From at least in or about January 2019, up to and including at least in or about March 2021, HOBBS defrauded the VA and NYC DOC in order to obtain VA Benefits and paid military leave from NYC DOC, among other things.  Specifically, HOBBS submitted eight fraudulent military memoranda purportedly from the Army National Guard to NYC DOC in order to obtain paid leave.  The fraudulent military memoranda each bore the seal of the United States Department of Defense and the letterhead of the Army National Guard, and falsely represented that HOBBS had served military duty on hundreds of days on which he, in fact, had not served.  At the same time, HOBBS transmitted by fax 16 fraudulent employment certifications to the VA that were purportedly from NYC DOC and falsely represented that he had worked for NYC DOC for hundreds of hours, which he had not worked.  To effectuate this scheme, HOBBS used the names, identities, and signatures of an Army National Guard Platoon Leader, an Army National Guard Readiness Noncommissioned Officer, and a NYC DOC employee without their knowledge or authorization on the fraudulent military memoranda and employment certifications.

SHAWN PIERRE HOBBS, 34, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison.  The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.

Ms. Strauss praised the outstanding investigative work of VA-OIG.

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorney Jane Kim is in charge of the prosecution.

The charges contained in the Complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint as set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.  The defendant is presumed innocent unless and until proven guilty. 

MAYOR DE BLASIO APPOINTS 18 JUDGES TO FAMILY, CRIMINAL, AND CIVIL COURT AND APPOINTS JUSTICE HELEN E. FREEDMAN (RET.) TO ADVISORY COMMITTEE ON THE JUDICIARY

 

 Mayor Bill de Blasio today announced 18 judicial appointments and reappointments, including two appointments and two reappointments to Family Court; six appointments and five reappointments to Criminal Court; and two appointments and one reappointment to Civil Court. Judges appointed or reappointed to Civil Court sit in either Family or Criminal Court. The Mayor has also appointed retired Justice Helen E. Freedman to the Advisory Committee on the Judiciary.  

“These appointees represent some of the fiercest champions of justice our City has to offer,” said Mayor Bill de Blasio. “By leading our courts, they will play a critical role in my administration’s effort toward a recovery for all New Yorkers.”

 

Family, Criminal and Civil Court are part of the New York State Unified Court System. Family Court judges hear cases related to adoption, foster care and guardianship, custody and visitation, domestic violence, abused or neglected children, and juvenile delinquency. The City’s Criminal Court handles misdemeanor cases and lesser offenses and conducts arraignments. The two judges newly appointed to Civil Court are presiding in Family Court.

 

The Mayor appointed the following justice to the Advisory Committee on the Judiciary:

 

Justice Helen E. Freedman first served as a Civil Court Judge in 1979, then became an acting Supreme Court Justice beginning in 1984 before being elected to the New York State Supreme Court in 1988. She served on the Supreme Court, Appellate Term from 1995 to 1999.  After being re-elected to the Supreme Court in 2002, Justice Freedman served in the Commercial Division of the New York County Supreme Court prior to her 2008 appointment to the Appellate Division First Department by Governor David Paterson.  After serving over three decades on the New York State bench, Justice Freedman now works for Judicial Arbitration and Mediation Services, Inc. (JAMS) conducting mediations, arbitrations, and neutral evaluation matters. In addition, she currently serves as Secretary of the Historical Society of the New York Courts, Editor of its publication Judicial Notice and as Vice Chair of the Pattern Jury Instruction Committee of the Supreme Court Justices Association. Justice Freedman also teaches as an adjunct professor at New York Law School.

 

The Mayor appointed the following judges to Family Court:

 

Judge Ashley Black was first appointed as an Interim Civil Court Judge in January 2020 and serves in Family Court. Judge Black began her legal career as an Agency Attorney with the New York City Administration for Children’s Services (ACS). Prior to her appointment, she served with the New York State Unified Court System for 13 years as a Court Attorney and then as Court Attorney Referee. She is a graduate of Rutgers University and received her J.D. from the Benjamin N. Cardozo School of Law. 

 

Judge Robert Hettleman was first appointed as a Family Court Judge in December 2013 and served for four years in Bronx County. He began his career as a law clerk to United States Magistrate Judge Roanne Mann, Eastern District of New York, then moved on to the New York County District Attorney’s Office where he served for nearly 12 years. He received his undergraduate degree from Dartmouth College and his law degree from New York University School of Law. 

 

The Mayor appointed the following judges to Criminal Court:

 

Judge Deepa Ambekar was first appointed as an Interim Civil Court Judge in May 2018 and serves in Criminal Court. Prior to her appointment, Judge Ambekar served with the New York City Council as a Senior Legislative Attorney and Counsel to the Committee on Public Safety, as well as a former Staff Attorney with the Legal Aid Society’s Criminal Defense Division. She is a graduate of the University of Michigan and received her J.D. from Rutgers Law School.

 

Judge Paul McDonnell was first appointed as an Interim Civil Court Judge in January and serves in Criminal Court. Judge McDonnell served with the New York State Unified Court System for over three decades in various roles, including as the Deputy Counsel of Criminal Justice at the Office of Court Administration. Prior to that, he served as a Principal Court Attorney in Supreme Court, in both New York and Bronx counties. He is a graduate of Hobart and William Smith Colleges and received his J.D. from Washington & Lee Law School.

 

Judge Linda Poust Lopez was elected to Civil Court in January 2011 and has been serving in Criminal Court. She was designated as an Acting Justice of the Supreme Court in 2017. Prior to her appointment, Judge Poust Lopez served with the Legal Aid Society for nearly 18 years in the Manhattan and Bronx Criminal Defense Practice. In addition to this, she maintained a solo practice focusing on Criminal and Family Court appellate matters. Judge Poust Lopez received her undergraduate degree from Herbert H. Lehman College and her law degree from the Benjamin N. Cardozo School of Law.

 

Judge Quynda Santacroce was first appointed as an Interim Civil Court Judge in January 2019 and has been serving in Criminal Court. Judge Santacroce previously served with the New York State Unified Court System as a Principal Court Attorney in Criminal Court, Queens County in the Integrated Domestic Violence Part/Queens Youth Part. Prior to that, she served with the Queens County District Attorney’s Office in several bureaus. She is a graduate of Cornell University and received her J.D. from Touro College, Jacob D. Fuchsberg Law Center. 

 

Judge Jean Walsh was first appointed as an Interim Civil Court Judge in January 2020 and has been serving in Criminal Court. Judge Walsh began her career at the Bronx County District Attorney’s Office, where she served in various bureaus for 14 years before joining the United States Attorney’s Office, SDNY, and the the New York State Inspector General’s Office. She then returned to serve as the Executive Assistant District Attorney and Chief of the Investigations Division in the Bronx County District Attorney’s Office prior to her appointment to the bench. She is a graduate of Mount Holyoke College and received her J.D. from SUNY Buffalo Law School. 

 

Judge Jay Weiner was first appointed as an Interim Civil Court Judge in April 2019 and has been serving in Criminal Court. Judge Weiner formerly worked with Appellate Advocates, served as an Assistant District Attorney in both Queens and Kings counties, and established his own solo practice. Prior to his appointment, he served with the New York State Unified Court System as a Principal Law Clerk in the Appellate Division, Second Department. He is a graduate of Dartmouth College and received his J.D. from Fordham University School of Law. 

 

The Mayor appointed the following judges to Civil Court:

 

Judge Janet McFarland formerly served with the Bronx County District Attorney’s Office, the Mental Hygiene Legal Service as Principal Attorney at Woodhull Medical Center, and as a Court Attorney Referee in Richmond County Family Court. She is a graduate of Fordham University and received her law degree from Brooklyn Law School. Judge McFarland is appointed to Civil Court and has been assigned to Family Court.

 

Judge Gigi Parris was formerly a Corporate Associate with Paul, Weiss, Rifkind, Wharton & Garrison LLP.  After three years, she became a Family Defense Practice Staff Attorney with The Bronx Defenders. She also served as a Supervising Attorney of the Family Defense Team at Neighborhood Defender Service of Harlem and an Associate Court Attorney to a Bronx Family Court Judge. Prior to her appointment to the bench, she served as Supervising Court Attorney to the Supervising Judge of Queens County Family Court. She received her B.A., cum laude, from Harvard University and her law degree from the University of Virginia, School of Law. Judge Parris is appointed to Civil Court and has been assigned to Family Court. 

 

The Mayor reappointed the following judges to Family Court:

 

Judge Elenor C. Reid Cherry was appointed to the Family Court in January 2018. She was first appointed as an Interim Civil Court Judge in June 2017 and served in Family Court. Prior to her appointment, Judge Cherry served with the Office of the Corporation Counsel including the Family Court Division.  She also served as a Court Attorney and Principal Law Clerk for 16 years. She is a graduate of John Jay College of Criminal Justice and received her J.D. from New York Law School.

 

Judge Valerie Pels was appointed to the Family Court in January 2013. Prior to her appointment, she served with the Legal Aid Society in the Juvenile Rights Division for over eight years. She then joined the New York State Unified Court System and served as Principal Law Clerk in the Youth Part and Integrated Domestic Violence Part of the Supreme Court. She is a graduate of Duke University and Yale Law School.

 

The Mayor reappointed the following judges to Criminal Court:

 

Judge Efrain Alvarado, an Acting Supreme Court Justice, was first appointed to the Criminal Court in August 1988. He formerly served as the Administrative Judge for Criminal Matters of the Supreme Court in Bronx County from 2009 to 2013. Prior to this, Judge Alvarado served with the Bronx County District Attorney's Office for 12 years, holding various positions including Chief Assistant District Attorney. He graduated from the University College of Arts and Science, New York University and received his law degree from New York University School of Law.

 

Judge Keshia Espinal was appointed to the Criminal Court in May 2017. She is currently the Supervising Judge of Kings County Criminal Court. Judge Espinal formerly served with the Queens County District Attorney’s Office for 16 years in several bureaus, including as a Supervising Assistant District Attorney for the Domestic Violence Bureau. She is a graduate of St. Joseph’s College and received her J.D. from Western New England University School of Law.

 

Judge Gilbert Hong, an Acting Supreme Court Justice, was appointed to the Criminal Court in September 2008. He was first appointed as an Interim Civil Court Judge in July 2007 serving in Criminal Court. Prior to his appointment, he was with the New York County District Attorney's Office and served as a Deputy Bureau Chief in New York City's Office of the Special Narcotics Prosecutor. Judge Hong received his undergraduate degree from Columbia College and his J.D. from Cornell Law School.

 

Judge Christopher Robles was appointed to the Criminal Court in January 2018. He was first appointed as an Interim Civil Court Judge in June 2017 and served in Criminal Court. Judge Robles was in private practice for nearly 18 years with litigation experience in family law, civil practice, and appellate practice. He is a graduate of St. John's University and received his law degree at CUNY School of Law. 

 

Judge Cori Weston was appointed to the Criminal Court in June 2016. Prior to her appointment to the bench, she served as an attorney with the New York County Defender Services for nearly 19 years and The Legal Aid Society’s Criminal Defense Division for seven years. She received her undergraduate degree from Hofstra University and her J.D. from Fordham University School of Law.

 

The Mayor reappointed the following judge to Civil Court:

 

Judge Jonathan Shim was first appointed as an Interim Civil Court Judge in February 2018 and has been serving in Family Court. Prior to his appointment, Judge Shim worked as an associate at several firms before starting his own practice in family and matrimonial law, which he maintained for nine and a half years. He is a graduate of the SUNY at Albany and received his law degree from Albany Law School.

 

MAYOR DE BLASIO ANNOUNCES GROUNDBREAKING FIVE-YEAR COMMUNITY CARE PLAN TO EXPAND AGING SUPPORT SERVICES

 

$58 million investment in plan will add additional centers and services in underserved communities to help older New Yorkers age in place

 Mayor Bill de Blasio today announced the City will invest $58 million in the first year of his five-year Community Care Plan for older New Yorkers. The plan addresses the importance of creating a network of services that support the independence, self-reliance and wellbeing older New Yorkers need to age in their homes.

“As they age, our seniors deserve to remain in their homes and the neighborhoods they know and love,” said Mayor Bill de Blasio. “The Community Care Plan not only offers services, but also a sense of security.”

 

“As our City recovers, we’re focused on keeping seniors front and center in all that we do, including continuing to provide vital resources and expanding services, from vaccine sites and outreach strategies to these new, crucial investments in community care,” said Deputy Mayor for Health and Human Services Melanie Hartzog. “We thank DFTA for their continued leadership and remain committed to uplifting older New Yorkers, which will help ensure New York comes back stronger and more inclusive than ever.”

 

“New York City is again modeling what is needed to be an age-inclusive City, where older adults can age in place with the support of their community, paving the way for what an aging-in-place city should be in this country,” said Department for the Aging Commissioner Lorraine Cortés-Vázquez. “The pandemic highlighted the detrimental effects that living in institutions had on both older adults and their families. This investment in Community Care will provide the continuum of services, safety net and community network that older New Yorkers need to continue living in their homes, communities and among their loved ones.”

 

"This $48 million of funding for the Community Care Plan is a much-needed investment for our older adult population, which is the fastest-growing age demographic in New York City. Aging in place is more than physical permanence; it allows older New Yorkers to remain rooted in the communities they helped to shape throughout their lifetime. I am pleased that the Administration and the Council agreed that the RFP for Older Adult Centers was simply too important to rush. Since the beginning of the pandemic, we have lost so many seniors to COVID-19. I am hopeful that with this new timeline we will see a seamless continuation of services for our seniors who have endured isolation, illness, and trauma this past year," said Council Member Margaret Chin. "Additionally, I cannot emphasize enough the importance of fulfilling the commitment to add the additional $10 million to the model budget. I thank Commissioner Lorraine Cortes-Vazquez, Deputy Mayor Melanie Hartzog, and Mayor de Blasio for including this funding in the Community Care Plan."

 

With this five-year Community Care Plan, the New York City Department for the Aging (DFTA) will add 25 additional Older Adults Centers (OACs) or Naturally Occurring Retirement Communities (NORCs) in communities with large aging populations that are currently underserved. In addition, investment in the Community Care Plan will provide additional program staff, transportation services, and robust outreach to expand services to older New Yorkers.

 

The plan will also increase existing services that allow older adults to remain in their homes with dignity and support and avoid institutionalization. It also builds upon the success and lessons learned during the COVID-19 pandemic, such as the expansion of virtual services that has kept many older adults active and engaged while mitigating social isolation.

 

This investment lays the groundwork for future investments needed to provide Community Care across the five boroughs.  One of the first steps of the Community Care plan is the release of a Request for Proposals (RFP) for OACs and NORCs. It will seek proposals that foster collaboration across community-based programs that are aligned with the Community Care five-year plan, ensure congregate and home-based services for older adults throughout the City, and expand services in currently underserved neighborhoods.

  

Georgia Man Sentenced To 40 Months In Prison For Participation In Multimillion-Dollar Business Email Compromise Scheme

 

Ifeanyi Eke Had Supervisory Role in the Scheme and Is Responsible for Approximately $2.7 Million in Losses to 35 Victims

 Audrey Strauss, United States Attorney for the Southern District of New York, announced that IFEANYI EKE, a/k/a “Luther Mulbah Doley,” pled guilty today and was sentenced in Manhattan federal court by U.S. District Judge Jesse M. Furman to 40 months in prison for conspiring to commit wire fraud as part of a wide-ranging international business email compromise (“BEC”) syndicate. 

U.S. Attorney Audrey Strauss said:  “As he admitted today, Ifeanyi Eke played a key role in an international conspiracy that deceived and defrauded dozens of victims of nearly $3 million.  Fittingly, Eke has been sentenced to prison and ordered to make restitution to the victims of the conspiracy.”

According to the allegations in the Indictment, other court filings, and statements made during court proceedings:

Between in or about 2016 and July 2018, EKE and his co-conspirators, including codefendants Cyril Ashu, Joshua Ikejimba, and Chinedu Ironuah, perpetrated a fraudulent BEC scheme through which they deceived dozens of victims, both foreign and domestic, into wiring millions of dollars to bank accounts controlled by the syndicate.  The fraud was perpetrated by sending victims “spoofed” emails, which purported to be from counterparties whom the victims knew and trusted, and which contained wiring instructions fraudulently directing the victims to send funds to accounts that were in fact controlled by the defendants and others involved in the scheme.    

EKE played a broad role in the fraud.  As part of the scheme, EKE personally received wire transfers of fraud proceeds from several different victims in bank accounts that he opened and controlled.  One of the victims, an intergovernmental organization headquartered in New York, was defrauded into sending $188,815 into EKE’s bank account.  After receiving the fraud proceeds, EKE withdrew and transferred them both for his own use and for dissemination to his co-conspirators.  In addition to receiving and dissipating victim funds directly, EKE managed and supervised other members of the conspiracy, including by arranging for co-conspirators’ accounts to receive fraud proceeds, receiving and communicating wire transfer information contained in victim emails, and coordinating the acquisition and deposit of checks representing fraud proceeds.  In total, EKE is responsible for actual losses to 35 victims totaling approximately $2.7 million.

EKE, 34, of Sandy Springs, Georgia, pled guilty to, and was sentenced on, one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349.  In addition to the prison term, EKE was sentenced to three years of supervised release.  EKE was further ordered to forfeit $365,205, and to pay restitution to his victims in the amount of $2,691,908.30.

Ms. Strauss praised the outstanding investigative work of the FBI.  The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys Olga I. Zverovich and Jarrod L. Schaeffer are in charge of the prosecution.

Governor Cuomo Updates New Yorkers on State's Progress During COVID-19 Pandemic April 13, 2021

 

4,175 Patient Hospitalizations Statewide

869 Patients in the ICU; 564 Intubated

Statewide 7-Day Average Positivity Rate Drops to 3.16%-Lowest in A Month

Statewide Positivity Rate is 3.90%

58 COVID-19 Deaths in New York State Yesterday

 Governor Andrew M. Cuomo today updated New Yorkers on the state's progress during the ongoing COVID-19 pandemic. The statewide 7-day average positivity rate dropped to 3.16 percent, the lowest in a month.

"We're making progress vaccinating more New Yorkers by expanding eligibility, opening new vaccination sites and getting doses to underserved communities across the state. However, COVID-19 is still spreading in New York and practicing safe behaviors will help us keep our fellow citizens safe," Governor Cuomo said. "New Yorkers should continue washing their hands, wearing masks and staying socially distanced as we work to defeat the COVID beast together. We're getting closer to the light at the end of the tunnel, but it will take residents' vigilance and perseverance to get us through this pandemic together."

It is important to note that data, including test results and hospital rates, reported early in the week are often not completely reflective of the current situation due to lower discharges and testing volume over the weekend. Data trends over a period of time, such as using 7-day averages, are a preferred metric.

Today's data is summarized briefly below: 

• Test Results Reported - 128,912
• Total Positive - 5,029
• Percent Positive - 3.90%
• 7-Day Average Percent Positive - 3.16%
• Patient Hospitalization - 4,175 (+57)
• Net Change Patient Hospitalization Past Week - -358
• Patients Newly Admitted - 437
• Hospital Counties - 56
• Number ICU - 869 (+9)
• Number ICU with Intubation - 564 (-7)
• Total Discharges - 168,261 (+306)
• Deaths - 58
• Total Deaths - 41,257

Second Managing Partner Of Investment Advisory Firm Pleads Guilty To Defrauding Clients And Investors In Over $100 Million Ponzi-Like Fraud Scheme

 

 Audrey Strauss, United States Attorney for the Southern District of New York, announced that MARTIN SILVER, a managing partner and the chief operating officer of the New York-based investment advisory firm International Investment Group (“IIG”), pled guilty today before U.S. District Judge Alvin K. Hellerstein to investment adviser fraud, securities fraud, and wire fraud offenses in connection with an over $100 million scheme to defraud IIG’s investment advisory fund clients and investors.  Throughout the course of more than 10 years, SILVER perpetrated the scheme by, among other fraudulent actions, creating fictitious investments and overvaluing investments used to generate funds to pay off earlier investors in a Ponzi-like manner.  In connection with his plea agreement, SILVER has also agreed to cooperate with the Government’s ongoing investigation.

Manhattan U.S. Attorney Audrey Strauss said:  “Today, Martin Silver admitted to participating in a sophisticated, decade-long scheme to defraud IIG funds and investors, abandoning his fiduciary responsibilities to IIG’s clients, and causing millions of dollars of losses.  My Office remains committed to policing investment advisers who seek to take advantage of their clients for personal and professional gain.”

According to the allegations contained in the Information and based on statements made in Manhattan federal court:           

Background of IIG 

SILVER and a co-conspirator (“CC-1”) founded IIG in 1994.  SILVER was a managing partner and the chief operating officer of IIG.  IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (“TOF”), (2) the IIG Global Trade Finance Fund, Ltd. (“GTFF”), and (3) the IIG Structured Trade Finance Fund, Ltd. (“STFF”).  IIG also advised the Venezuela Recovery Fund (“VRF”), a fund that managed the remaining assets of a failed Venezuelan bank (VRF, together with TOF, GTFF, and STFF, the “IIG Funds”).  In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management.

IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses.  IIG’s principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated.  Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade.  IIG’s purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on “soft commodities,” such as coffee, agriculture, fishing, and other food products.  IIG’s trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.

Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers.  In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry.

IIG purported to value the trade finance loans in the IIG Funds on a regular basis.  IIG and, in turn, SILVER, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds.

The Scheme

From approximately 2007 to 2019, SILVER conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner.   

MARTIN SILVER, 63, of New Jersey, pled guilty to one count of conspiracy to commit investment adviser fraud, securities fraud, and wire fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison.  Sentencing before Judge Hellerstein has been scheduled for November 16, 2021, at 11:00 a.m.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Ms. Strauss praised the investigative work of the FBI and also thanked the SEC for its assistance. 

Comptroller Stringer, Muslim Community Leaders and Hunger Relief Organizations Announce Five-Borough ‘Iftar on the Go’ to Expand Access to Free Halal Meals During Ramadan

 

Joins Islamic Relief USA and community-based organizations to distribute nearly 4,500 halal Iftar on the Go meals to families in need

Urges City’s restoration of Ramadan halal meal boxes that successfully added much-needed capacity to feed families in need last year

Calls for more pop-up vaccination sites and mobile vaccination vans at mosques, community centers and other places of worship to reach Muslim New Yorkers facing barriers to immunization

New York City Comptroller Scott M. Stringer in partnership with Islamic Relief USA, local elected officials, Muslim community leaders and hunger relief organizations, announced ‘Iftar on the Go’– a five-borough food distribution to expand access to free, halal meals and conduct SNAP outreach in multiple languages for New Yorkers during Ramadan. Comptroller Stringer also urged the City to restore and ensure quality and diversity in the Ramadan Halal emergency meal boxes that added much-needed capacity to feed families last year. As the COVID-19 pandemic has acutely heightened food insecurity in New York City, Comptroller Stringer has called for increased halal options, funding for community-based organizations and food pantries, and cultural and linguistic competence in the City’s current food programming to ensure that New Yorkers of all backgrounds are able to access benefits.

Comptroller Stringer also underscored that Ramadan is an opportunity to expand vaccine access to Muslim communities that face systemic obstacles to immunization, including language barriers, digital barriers, and lack of workplace flexibility to take paid time off for vaccination. Comptroller Stringer called on the City to:

• Double-down on pop-up vaccination sites across the five boroughs during Ramadan and beyond to include more mosques, community centers and other places of worship.
• Deploy mobile vaccination vans to mosques after evening prayers, specifically targeting transit-deserts and areas disproportionately impacted by COVID.
• Ensure ample walk-in options for seniors at these mobile sites, many of whom were left out due to the digital divide and language access.

“Ramadan is a time to reflect and take care of one other. No one should have to go hungry in the middle of a public health crisis, and especially during Ramadan,” said Comptroller Stringer. “I am proud to stand with Muslim community leaders and food security advocates to announce our five-borough Iftar on the Go to get halal meals, nutrition and support to families in need. Ramadan is also a chance for the City to ramp up vaccination outreach and meet Muslim New Yorkers where they are this holy month. Mosques, community centers and other places of worship can be lifesaving immunization hubs during Ramadan to protect thousands of our neighbors.”

“The month of Ramadan is an opportunity for Muslims across the world to increase giving and empathy. It is a time to remember our neighbors who are struggling and have found themselves in vulnerable circumstances,” said Sharif Aly, Chief Executive Officer at Islamic Relief USA. “The ongoing COVID-19 pandemic has particularly exacerbated food insecurity throughout the country. We are pleased to be collaborating with the New York City Comptroller’s Office to provide hot meals to those who are breaking their fasts or simply seeking a nutritious dinner during this holy month.”

Iftar on the Go halal meal distribution and SNAP outreach locations and dates are available below:

Queens

Partner: Majlis Ash-Shura: Islamic Leadership Council of NY
Location: 88-29 161 Street, Jamaica, NY 11432
Dates:

• Thursday, April 15 at 7:00pm
• Thursday, April 22 at 7:15pm
• Thursday, April 29 at 7:20pm
• Thursday, May 6 at 7:30pm

Manhattan

Partner: Food Bank For New York City
Location: 252 West 116th Street New York, NY 10026
Dates:

• Thursday, April 15 at 4:00pm
• Thursday, April 22 at 4:00pm
• Thursday, April 29 at 4:00pm
• Thursday, May 6 at 4:00pm

Brooklyn

Partner: APNA Brooklyn Community Center
Location: 236 Neptune Avenue, Brooklyn, NY 11235
Dates:

• Friday, April 16 at 2:00pm
• Friday, April 23 at 2:00pm
• Friday, April 30 at 2:00pm
• Friday, May 7 at 2:00pm

Staten Island

Partner: Bait-ul Jammat – House of Community
Location: 192 Corson Ave Staten Island, NY 10301
Dates:

• Tuesday, April 20 at 11am
• Tuesday, April 27 at 11am
• Tuesday, May 4 at 11am
• Tuesday, May 11 at 11am

Bronx

Partner: SAPNA NYC
Location: 2348 Waterbury Ave Bronx, NY 10462
Dates:

• Friday, April 16 at 2pm
• Friday, April 23 at 2pm
• Friday, April 30 at 2pm
• Friday, May 7 at 2pm

Last month, Comptroller Stringer joined more than 100 community-based organizations in calling for $25 million in FEMA reimbursement funding to be specifically dedicated to providing emergency food to undocumented New Yorkers who are unable to access federally funded safety net programs like SNAP. In February, Comptroller Stringer released a comprehensive food security plan to reach any New Yorker in need regardless of immigration status, including expanded SNAP outreach and purchasing power and the creation of a “shared delivery zone” program that centralizes neighbors’ food deliveries to meet online retailers’ minimum purchasing requirements.

In 2018, Comptroller Stringer convened a diverse coalition of Muslim and Jewish stakeholders to review his Halal and Kosher School Lunch Pilot Proposal and organize around expanding universal free school lunches to include halal and kosher food options. which was eventually funded by the City Council in several schools.

Mosaab Sadeia, Outreach Manager at Majlis Ash-Shura: Islamic Leadership Council of NY said: “So many of our Muslim brothers and sisters have kept our city moving as frontline workers through this pandemic—but disproportionately face barriers to food security and immunization. There have been efforts by the city in both areas, and we are calling to see these efforts continued and expanded. Comptroller Stringer’s recommendations for scaling up pop-up vaccination sites and mobile vaccination vans at mosques and community centers are easy steps the City can take that would drastically expand access for our community.”

Sultana Ocasio, Director of Food Bank For New York City’s Community Kitchen & Food Pantry, said: “The absence of food in the day and the humility and gratitude experienced in breaking your fast at sunset are so important in Ramadan. Ramadan is a time of sharing food, and we are grateful for NYC Comptroller Stringer and our friends at Islamic Relief USA for providing our Muslim neighbors with halal Iftar meals after breaking their fasts during this important time of the year.”

Erum Hanif, Chief Executive Officer of APNA Brooklyn Community Center said: “From helping launch a pilot program for free halal school lunches to proposing a food security plan with increased cultural and linguistic competence, Comptroller Stringer understands that our community shouldn’t have to choose between our faith and feeding our families. Comptroller Stringer is laying out smart and strategic recommendations to what the City can do to lift up approximately 1 million Muslim New Yorkers many of whom are currently underserved and unrepresented during the most challenging time of their lives.”

Jamilah LaSalle, Co-Founder of the Bait-ul Jamaat – House of Community said: “The nutritional and dietary needs of undeserved communities on Staten Island are vast. Through the collaborative efforts of the NYC Comptroller’s Office and Islamic Relief USA, organizations with the mission to fight hunger such as ours will be able to help address this need for Muslim families by providing halal meals and doing snap outreach during this holy month.”

Diya Basu-Sen, Executive Director of SAPNA NYC said: “The past year has been incredibly tough for working class immigrant communities and communities of color with many forced to make unbearably difficult choices about what they can afford – choosing between food, rent, minutes on their phone, and other basic necessities. Last year at Sapna we decided to open an emergency food pantry because while the city has increased food assistance programs, finding culturally appropriate fresh produce and staples is still difficult for many families. In the midst of a pandemic that has already resulted in so much fear, anxiety, and loss, being able to provide families with the food that they are used to eating is a small way of maintaining normalcy at a time when everything seems out of their control. We’re grateful to be partnering with Comptroller Stringer and IRUSA this Ramadan to provide iftar meals to our communities in the Bronx so that families can focus on their spiritual reflection and prayer instead of worrying about their next meal. These iftar food distributions will also allow us to do outreach on SNAP enrollment, COVID vaccines, and other community needs that will help ensure a more equitable recovery for our city.