Defendant Arrested In Texas For Multimillion-Dollar Wire Fraud And Money Laundering Scheme

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent-in-Charge of Homeland Security Investigations (“HSI”) in New York, announced today that GUILLERMO PEREZ was arrested this morning for defrauding businesses and individuals of more than $2.2 million through business email compromise and bank fraud schemes.  PEREZ will be presented tomorrow in the United States District Court for the Southern District of Texas.

According to the allegations contained in the Indictment[1] unsealed today:

From at least in or about October 2018 through at least in or about October 2019, GUILLERMO PEREZ participated in a scheme to defraud businesses by impersonating individuals and businesses in the course of otherwise ordinary financial transactions, thereby fraudulently inducing counterparties to those transactions to transfer funds to bank accounts controlled by PEREZ and his co-conspirators (the “Business Email Compromise Scheme”).  To facilitate this scheme, PEREZ conspired to deceive federally insured banks into opening business bank accounts (the “Fraudulent Bank Accounts”) by providing the banks with false and misleading information regarding PEREZ’s co-conspirators’ affiliations. 

In reliance on the foregoing false and misleading misrepresentations, the victims of the Business Email Compromise Scheme wired more than $2.2 million into the Fraudulent Bank Accounts.  PEREZ and his co-conspirators, knowing the money represented fraud proceeds, transferred those fraud proceeds out of the Fraudulent Bank Accounts in transactions designed to conceal and disguise their source, ownership, and control.

GUILLERMO PEREZ, 26, of Houston, Texas, is charged with (1) conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison, and (2) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.

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

Ms. Strauss praised the investigative work of HSI.  The prosecution of this case is being handled by the Money Laundering and Transnational Criminal Enterprises Unit.  Assistant United States Attorneys Emily Deininger and Tara La Morte are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is 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.

Congressman Espaillat Secures $20 million for District Transportation Projects

 

Three member-directed projects included in committee’s draft bill; expected to advance to full House later this month

 Representative Adriano Espaillat announced that he has taken full advantage of the House Transportation and Infrastructure Committee’s solicitation of requests for member-directed projects in the upcoming surface transportation reauthorization bill. Three of Espaillat’s member-directed projects, totaling $20 million, have been included in the draft bill, which is slated to advance to the full House later this month.

“The inclusion of three of my member-directed projects in the draft surface transportation reauthorization bill is incredible news for my constituents, and a win all of New York’s 13th Congressional District,” said Rep. Espaillat. “If signed into law, these investments will go a long way toward revitalizing safety and connectivity in our schools, and will revamp components of our city’s public transit to make it more accessible to my constituents who rely on it each and every day.

“Our communities need our support now more than ever — and there is no better way than to have members of Congress weigh in on how federal funding flows to their districts. These projects are a first step towards building our communities back better, and stronger,” Espaillat concluded.

Earlier this year, the House Transportation and Infrastructure Committee announced that it would accept requests from House members to designate specific surface transportation projects for priority funding. In order to be considered, a project sponsor (a state or local transportation or public transit agency or planning organization) was required to provide evidence that the project could be fully funded and completed in a timely manner if designated. The project was also required to have non-federal matching funds. In order for projects ultimately to receive funding, a final list will need to be included in the report to accompany the final surface transportation reauthorization legislation that is passed in the House and Senate and is signed into law. The Senate committees with jurisdiction over surface transportation legislation have not yet announced their own process for member-designated projects.

The projects Rep. Espaillat submitted that have been included for potential funding are listed below:

 

Project name: Safe Routes to School - Bronx 

Project sponsor: New York City Department of Transportation

Project location: Various locations in the Bronx (see summary)

Amount included: $1,682,000

Project summary: This project will enhance pedestrian accessibility, connectivity and safety around four schools in the Bronx: P.S 85, P.S/I.S. 218, P.S. 307 and Rosalyn Yalow Charter school. The project will create a safer, more accessible, environment for pedestrians, particularly school-aged children, by shortening street crossing distances, expanding public space, and calming vehicular traffic. The project will include redesign of intersections including sidewalk, curb, median tip extensions, new turning lanes, bench and fence replacements. This project is located in several neighborhoods which have been overlooked and under-resourced historically, improving safety, equity, and environmental justice.

Project name: Safe Routes to School - Manhattan 

Project sponsor: New York City Department of Transportation

Project location: Various locations in Northern Manhattan (see summary)

Amount included: $3,643,000

Project summary: This project will enhance pedestrian safety, connectivity and accessibility around seven school zones: P.S. 92 / P.S. 275, P.S. 83; New Design Middle and KIPP Infinity Charter School (was previously named I.S. 195); P.S. 153, P.S. 128, and P.S. 4. The proposed scope of improvements mainly includes median tip and curb extensions, full neckdowns, and pedestrian safety islands. 

 

Project name: Williams Bridge Station Renewal

Project sponsor: MTA-Metro North

Project location: 402 Gun Hill Road, Bronx, NY 10467
Amount included: $14,675,000
Project summary: The funding is designated for Station Renewal at Williams Bridge located on the Harlem Line in the Bronx. It includes accessibility improvements (new elevators) and platform replacement. Station work also includes customer amenities (customer information enhancements, etc.). The project is an appropriate use of taxpayer dollars and is anticipated to improve accessibility at the Williams Bridge Station by building 2 new elevators and 2 new stairs. It will also bring the Williams Bridge Station to a state of good repair along with Customer Service Initiatives Improvements (PA, Customer Information signs, security cameras).

Executive Of Venture Capital Funds Sentenced In Manhattan Federal Court To Over Four Years In Federal Prison For Securities And Wire Fraud

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that MARC LAWRENCE was sentenced in Manhattan federal court to 55 months in prison for securities fraud and wire fraud in connection with his participation in a scheme to perpetrate a Ponzi-like investment scheme through a number of corporate entities (collectively referred to as “Downing”).  LAWRENCE, the President of Downing entities, and his co-defendant DAVID WAGNER, the Chairman and CEO of Downing entities, solicited almost $10 million from approximately 40 Downing investors through materially false and misleading statements.   LAWRENCE previously pled guilty to these charges, and was sentenced today before U.S. District Judge Alvin K. Hellerstein.  WAGNER was previously sentenced by Judge Hellerstein to 72 months in prison.    

Manhattan U.S. Attorney Audrey Strauss said:  “ Marc Lawrence and his co-defendant fraudulently induced employee-investors to invest over $8 million in return for sales, operations, and management expertise in profitable business operations.  Unfortunately for their investors, Downing generated virtually no returns, and was little more than a vehicle for Lawrence and Wagner to syphon employee-investor funds to pay Wagner’s personal expenses or pay off other investors in Ponzi-like fashion.  Lawrence’s sentence of over four years in federal prison signifies the seriousness of his conduct and the consequence that assuredly awaits those who commit Ponzi-like frauds.”  

According to the Indictment filed in Manhattan federal court:

From at least in or about December 2013 through at least in or about 2017, WAGNER, the Chief Executive Officer of Downing, and MARC LAWRENCE, the President of several Downing entities, solicited investments in Downing, a purported venture capital firm that would invest in healthcare start-ups referred to as “portfolio companies” and provide sales, operations, and management expertise to the portfolio companies in order to bring their products to market and generate returns for Downing investors, who also worked for Downing (the “employee-investors”).  WAGNER and LAWRENCE, and others acting at their direction, solicited almost $10 million in investments in Downing from employee-investors located across the United States, including in the Southern District of New York, as a requirement of employment with Downing. 

After making the required investment of between $150,000 and $250,000 in Downing and starting their employment at Downing, employee-investors soon learned, among other things, that contrary to representations made by WAGNER and LAWRENCE, and others acting at their direction, Downing did not have access to millions of dollars in funding, often could not make payroll, had virtually no products to sell, and that employee-investments were the overwhelming source of funding.  Employee-investors also learned that WAGNER and LAWRENCE had misrepresented the companies in Downing’s portfolio, their product readiness, and ability to generate revenue.  While the particular formulation of these misrepresentations shifted over time, WAGNER and LAWRENCE systematically sought and obtained employee-investor money through materially false and misleading statements.

Beginning in or about May 2016, after several employee-investors had brought lawsuits against WAGNER and LAWRENCE, and several Downing entities, alleging claims based on, among other things, fraud, WAGNER and LAWRENCE continued the scheme by recruiting employee-investors into a new company called Cliniflow Technologies, LLC (“Cliniflow”), through materially false and misleading statements about Cliniflow’s cash reserves, portfolio companies, and exposure to litigation.  In fact, Cliniflow purportedly held majority ownership in the same primary portfolio company as other Downing entities and was simply a new name used by WAGNER and LAWRENCE to solicit investments from new employee-investors that was not tainted by the lawsuits filed against Downing entities.  A majority of the over $1.5 million raised by WAGNER and LAWRENCE through Cliniflow was transferred to other Downing entities and used to pay for, among other things, WAGNER’s personal expenses and the repayment of prior investors.

LAWRENCE, 54, of Clearwater, Florida, pled guilty to two counts of securities fraud and one count of wire fraud, which each carry a maximum sentence of 20 years in prison.  In addition to the prison term, Judge Hellerstein ordered LAWRENCE to serve 3 years of supervised release, and to pay forfeiture in the amount of $150,000 and restitution in the amount of $4,450,000 to victims of his criminal conduct.

Ms. Strauss praised the work of the FBI, and thanked the United States Securities and Exchange Commission and the Enforcement Section of the Massachusetts Securities Division for their assistance.

A RECOVERY FOR ALL OF US: NEW YORK CITY INVESTS $1 BILLION IN LIFE SCIENCES

 

Doubles State of the City commitment to make New York City the public health capital of the world

 Mayor de Blasio and the NYC Economic Development Corporation (NYCEDC) today announced a plan to double the City’s $500 million investment in life sciences to $1 billion as part of LifeSci NYC, a commitment launched in the Mayor’s State of the City address to create jobs and establish New York City as the global leader in life sciences. This expanded initiative is expected to generate 40,000 jobs. 

Mayor de Blasio kicked off this next chapter of the city’s support for this industry by announcing a Request for Proposals (RFP) to help advance the commercial research and development of new medicines, medical devices, diagnostics, materials, and research tools. The City will provide up to $112 million in City capital to award $20 million to support one or more innovation projects. Multiple awardees can access up to $20 million each.

 

“New York City can do more than just fight back COVID-19. We can invest in fast-growing sectors like the life sciences to stop the next pandemic before it starts – and become the public health capital of the world,” said Mayor Bill de Blasio. “This expansion will accelerate the growth of local researchers and businesses inventing the cures for whatever comes next. It’s the key to our economic and public health recovery, and it will produce more effective and more equitable health outcomes for New Yorkers across the five boroughs.”

 

“A recovery for all requires making the City healthier—giving every neighborhood and every household access to the best preventive health care and treatment available. To do that, we are committing today to make New York City the public health capital of the world. Today’s investment will foster life sciences research, innovation and manufacturing, making the City the place where diagnostics, therapeutics and improvements in health care delivery are invented, tested and made available to the world, all while providing good-paying jobs to our incredibly talented, well-educated, and driven workforce,” said Deputy Mayor for Housing and Economic Development Vicki Been. “By doubling our original investment, we ensure both that health care will be fairer for all New Yorkers, and that New York City will be the incubator for public health innovation—full stop.”

 

“Strengthening our commitment to LifeSci NYC bolsters our pipeline of job opportunities in life sciences innovation and supports the creation of construction jobs as we build new infrastructure,” said Senior Advisor for Recovery Lorraine Grillo. “This expanded investment in life sciences affirms New York City’s leadership in advancing public health, developing treatments, finding cures, and ensuring a recovery for all of us.” 

 

“Building a healthier city means ensuring the life science sector is equipped with the greatest potential for cutting-edge technologies and treatments for all New Yorkers,” said Rachel Loeb, president and CEO of the New York City Economic Development Corporation. “With a diverse talent pool, a network of premier academic and medical institutions, New York City is positioned to grow as a global leader in life sciences research and innovation. We’re thrilled to expand LifeSci NYC by investing in more talent, companies, and innovative spaces to help us recover and build a stronger economy for all.”

 

Over the next decade, New York City will expand its investment to $1 billion to develop the life sciences industry by launching new commitments as part of LifeSci NYC. The program will invest an additional:

• $200 million in City investment to support the construction of much-needed commercial lab space and incubators
• $300 million in City capital to support nonprofit facilities to spur new research that translates into companies, jobs, medicines, and advanced technologies
• $5 million to enhance the Life Sciences Expansion Fund to support early stage companies
• $5 million to expand the LifeSci NYC Internship program to develop the city’s life sciences talent pipeline

 

Statement from Michelle Caruso-Cabrera After Winning First Comptroller Debate

 

The Only Latina Woman on the Stage, Michelle Towered Above Her Male Career Politician Opponents in 77 WABC Radio Debate

 Michelle Caruso-Cabrera released the following statement following her tremendous showing in the first Democratic primary debate for New York City Comptroller hosted by 77 WABC radio.

"I was thrilled when the Campaign Finance Board heeded my call for more and longer debates, and after tonight, everyone can see why. This is clearly a two person-race between me and City Council Speaker Corey Johnson, a typical career politician who presided over the gross mismanagement of our city under Bill de Blasio, who is only running for Comptroller because he wanted to be the mayor but had to drop out of the mayor's race."

"In typical politician fashion, Corey Johnson couldn't even answer when asked how he would rate Bill de Blasio. He himself admits that crime is out of control, that our public schools are getting worse, that spending is out of control - but doesn't take responsibility for the fact that all of these things happened under his watch. As I said on the stage tonight, electing Corey as our top financial watchdog would be calamitous. He is de Blasio 2.0."

"As I said in my opening statement, I was the only Latina, the only woman on the stage tonight. And when I am elected I will be the first Latina to hold citywide office in New York City, a city that is almost one-third Hispanic."

"It was crystal clear tonight that I am the only candidate in the race for Comptroller with the experience, the skillset and the independence needed to be New York City's top financial officer and watchdog.

A link to watch the full debate can be found here: https://wabcradio.com/episode/cats-at-night-06-09-2021/

Michelle Caruso-Cabrera, a Queens resident, is a proud Latina and granddaughter of immigrants running in the Democratic primary election for New York City Comptroller. MCC, as she is known, is a national award-winning news reporter and television anchor renowned for her financial expertise, covering financial crises all over the world as Chief International Correspondent on the TV news network CNBC.

Governor Cuomo Announces Statewide 7-day Average Positivity Drops Below .50% for the First Time since COVID-19 Crisis Began

 

Statewide 7-Day Average Positivity is 0.48% -- Has Declined for 65 Consecutive Days -- Lowest in the Country per Johns Hopkins University

Statewide Average Positivity is 0.37% -- Lowest Since COVID-19 Crisis Began

101,624 Vaccine Doses Administered Over Last 24 Hours -- Statewide Vaccination Rate is 69.1%

777 Patient Hospitalizations Statewide

11 COVID-19 Deaths Statewide Yesterday

 Governor Andrew M. Cuomo today announced New York State's 7-day average positivity rate has dropped below 0.50% for the first time since the onset of the COVID crisis, to 0.48%, the lowest in the nation per Johns Hopkins University. The state's single-day positivity rate, 0.37%, is also the lowest single-day rate the state has seen since the onset of the crisis.

"With COVID-19 numbers trending downward for so many consecutive days, we are well on our way to fully reopening to a reimagined New York State," Governor Cuomo said. "Warm weather activities across the state are in full swing, happening in front of audiences that have received their COVID-19 vaccination. If you haven't already, I encourage you to get your vaccine as soon as possible so that you may enjoy all that our beautiful state has to offer with your loved ones." 

  

Today's data is summarized briefly below:

• Test Results Reported - 113,709 
• Total Positive - 426 
• Percent Positive - 0.37% 
• 7-Day Average Percent Positive - 0.48% 
• Patient Hospitalization - 777 (-19) 
• Patients Newly Admitted - 102 
• Patients in ICU - 195 (-11) 
• Patients in ICU with Intubation - 120 (0) 
• Total Discharges - 183,250 (+93) 
• Deaths - 11 
• Total Deaths - 42,824 
• Total vaccine doses administered - 19,716,297 
• Total vaccine doses administered over past 24 hours - 101,624 
• Total vaccine doses administered over past 7 days - 566,758 
• Percent of New Yorkers ages 18 and older with at least one vaccine dose -66.6% 
• Percent of New Yorkers ages 18 and older with completed vaccine series - 59.0%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 69.1%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 60.1%
• Percent of all New Yorkers with at least one vaccine dose - 55.0%
• Percent of all New Yorkers with completed vaccine series - 47.9%
• Percent of all New Yorkers with at least one vaccine dose (CDC) -57.0%
• Percent of all New Yorkers with completed vaccine series (CDC) - 48.7%

Third Avenue Business Improvement District - It's big. It's coming. 1 Bronx Pride.

 

Tabling? Vendor Information - Click here HIV or COVID Testing? - Click here The weather for Saturday, June 12th looks  amazing! Low humidity, sunny, and 77 degrees. Make sure you bring water, sunglasses,  and sunscreen - no one likes sun wrinkles! We look forward to seeing you at  1 Bronx Pride weekend, 6/12/2021.

Bronx Jewish Community Council - Summer Volunteer Opportunities

 

SUMMER VOLUNTEER OPPORTUNITIES Bakers and Delivery volunteers needed Thursday, July 29 Challah Delivery in AmPark and Riverdale. Delivery windows 12-2 PM and 5-7 PM. Contact Niti (917-693-3084) to sign up for a delivery slot or to bake challahs. (NOTE: challahs can be baked in advance and we can arrange to freeze them for you, if necessary).

Computer Savvy Volunteer Needed To help for 5-10 hours over July and August to assist the Volunteer Department with record keeping Contact Niti (917-693-3084) for additional information.

Summer Sandwich Making Opportunities for families, camps and other groups  Contact Niti (917-693-3084) for additional information.

The BJCC Food Pantry Would welcome donations of gefilte fish and diapers of any size. Contact Niti (917-693-3084)

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