Wednesday, September 1, 2021

Attorney General James Helps Secure $4.5 Billion From Sackler Family for Role in Fueling Opioid Crisis


Conditionally Court-Approved Resolution Shuts Down Purdue Pharma, Ends Sacklers’ Ability to Sell Opioids Ever Again, and Secures Unprecedented Public Disclosure

 New York Attorney General Letitia James today announced that she has secured more than $4.5 billion from the Sackler family and foundations that they control for their role in fueling the opioid crisis. A mediated agreement was today conditionally approved by the U.S. Bankruptcy Court for the Southern District of New York that forces the Sacklers to pay billions to fund prevention, treatment, and recovery programs in communities across the country; shuts down the company they own and control, Purdue Pharma; and ends the Sacklers’ ability to manufacture opioids ever again. Additionally, the agreement will make public tens of millions of documents related to the company and the family’s roles in igniting the opioid epidemic — requiring unprecedented disclosure about the role that Purdue and the Sacklers played in hooking Americans on opioids. The framework of today’s resolution was initially put forward by the mediator in July.

“No deal is perfect, and no amount of money will ever make up for the hundreds of thousands who lost their lives, the millions who became addicted, or the countless families torn apart by this crisis, but these funds will be used to prevent future death and destruction as a result of the opioid epidemic,” said Attorney General James. “For nearly two years, Purdue Pharma and the Sackler family have used every delay tactic possible and misused the courts, all in an effort to shield their misconduct. But this resolution will deliver $4.5 billion into communities ravaged by opioids on an accelerated timetable and it gets one of the nation’s most harmful drug dealers out of the opioid business once and for all. We’ll be able to more quickly invest these funds in prevention, education, and treatment programs, and put an end to the delays and legal maneuvering that could possibly continue for years and across multiple continents. The pain and suffering far too many communities across our state and this nation have sadly experienced has only accelerated over the course of the pandemic. Now is the time to take every action we can, as quickly as we can, to prevent any future devastation.”

The conditionally court-approved mediation resolves part of the March 2019 lawsuit filed by Attorney General James against Purdue Pharma, the Sackler family, and others. The other manufacturers named in the complaint included Janssen Pharmaceuticals and its affiliates (including its parent company Johnson & Johnson); Mallinckrodt LLC and its affiliates; Endo Health Solutions and its affiliates; Teva Pharmaceuticals USA, Inc. and its affiliates; and Allergan Finance, LLC and its affiliates. The distributors named in the complaint are McKesson Corporation, Cardinal Health Inc., Amerisource Bergen Drug Corporation, and Rochester Drug Cooperative Inc.

The cases against Mallinckrodt and Rochester Drug Cooperative are now in U.S. Bankruptcy Court. A settlement that ended Johnson & Johnson’s sale of opioids nationwide and delivered $230 million to New York alone was announced in June. A settlement with McKesson, Cardinal Health, and Amerisource Bergen that will deliver up to $1.1 billion to New York state to combat the opioid epidemic was announced in July. The deals with Johnson & Johnson, McKesson, Cardinal Health, and Amerisource Bergen have a global value of approximately $26 billion.

The trial against all other defendants is currently underway in Suffolk County State Supreme Court.

Separately, earlier this year, in February, Attorney General James co-led a coalition of nearly every attorney general in the nation in delivering more than $573 million — more than $32 million of which was earmarked for New York state — toward opioid treatment and abatement in an agreement and consent judgment with McKinsey & Company.

Posted by at No comments:

Governor Hochul Announces Confirmations of Tremaine Wright and Christopher Alexander to Lead Implementation of the Marijuana Regulation and Taxation Act

 

First Confirmed Nominees of Governor Hochul's Administration Will Move Cannabis Implementation Forward

Tremaine Wright to Serve as Chair of Cannabis Control Board; Christopher Alexander to Serve as Executive Director of Office of Cannabis Management


 Governor Kathy Hochul today announced that the State Senate confirmed Tremaine Wright as Chair of New York's Cannabis Control Board (CCB) and Christopher Alexander as Executive Director of the Office of Cannabis Management (OCM). The confirmations were made during an extraordinary session of the New York State Legislature, and these are the two first confirmed nominees of Governor Hochul's administration. The Cannabis Control Board and Office of Cannabis Management will create and implement a comprehensive regulatory framework for New York's cannabis industry, including the production, licensing, packaging, marketing and sale of cannabis products.

The Marijuana Regulation and Taxation Act (MRTA), passed on March 31, 2021, sets out one of the nation's most comprehensive and progressive legal frameworks for the regulation of the adult-use, medical and hemp industries, with a focus on ensuring the greatest possible participation by communities historically impacted by prohibition. The law calls for a five member board to oversee the creation and implementation of the OCM and contemplates the appointment of a Chief Equity Officer charged with developing a social equity plan designed to facilitate and support participation by social equity applicants. The MRTA also limits the number of licenses that can be owned by one company and prohibits the vertical integration of production and retail services, further ensuring that small businesses have an opportunity to compete in the new market. 

"One of my top priorities is to finally get New York's cannabis industry up and running - this has been long overdue, but we're going to make up for lost time with the Senate confirmation of Tremaine Wright as Chair of the Cannabis Control Board and Christopher Alexander as Executive Director of the Office of Cannabis Management," Governor Hochul said. "These two individuals bring a wealth of knowledge and experience to their new roles, and I know they will do a tremendous job of outlining and implementing regulations that are safe, fair and transparent, and that recognize the need to remedy the impact that prohibition has had on communities of color. I look forward to working with them on building our state's cannabis industry and effecting real change for New Yorkers."

Tremaine S. Wright to Serve as Chair of Cannabis Control Board

Tremaine S. Wright is a former member of the New York State Assembly and currently serves as the first Director of the DFS Statewide Office of Financial Inclusion and Empowerment. Ms. Wright is an attorney, entrepreneur, small business owner and activist who is a second-generation Bedford Stuyvesant resident invested in preserving the rich legacy of her community and building a strong foundation for the future. She has dedicated her career to empowering and creating opportunities for her neighbors and her community.

Ms. Wright was elected to the New York State Assembly on November 8, 2016. She served the 56th Assembly District of Brooklyn, NY which represents the Bedford-Stuyvesant and Northern Crown Heights neighborhoods. She served as Chair of New York State Black, Puerto Rican, Hispanic & Asian Legislative Caucus and Chair of the Assembly Subcommittee on Foster Care.

As the former Chairwoman of Community Board 3, Ms. Wright fostered longstanding relationships with past and current elected officials, community leaders and a cross section of local residents committed to improving Central Brooklyn. She has served on CB3 for 13 years and previously held positions as the Executive Secretary, Treasurer and Budget Coordinator.

She has practiced law at Brooklyn Legal Services and private law firms. While working as an attorney at major law firms, Ms. Wright also served as a pro bono lawyer for the Volunteers of Legal Services' Incarcerated Mothers Project.

Ms. Wright also owned and operated Common Grounds: a Neighborhood Coffee House from March 2006 to September 2015. She opened the shop after realizing that her neighborhood lacked an adequate number of eateries and gathering places.

Ms. Wright is a graduate of Duke University and the University of Chicago Law School.

Christopher Alexander to Serve as Executive Director of Office of Cannabis Management

Chris Alexander is a criminal justice reformer, advocate, and policy expert. He is a native of Hollis, Queens and the son of immigrant parents who came to the United States from the Caribbean island of Grenada.

Chris is a seasoned politico with significant policy making experience. He has previously worked for the New York State Democratic Party, as a Legislative aide to Congress, as a Policy Coordinator for the Drug Policy Alliance, and as Counsel to the New York State Senate where he managed the work of several Committees providing oversight over the affairs of New York City and over New York State's criminal justice system.

Chris uses his legislative and organizing experience in the fight to end mass criminalization and the drug war. He is an advocate for social justice, racial equity, and a champion for civic engagement.

He is the architect of the Start SMART NY campaign to end marijuana prohibition and the lead drafter of the Marijuana Regulation and Taxation Act, New York's marijuana legalization bill.

Chris currently works as the Government Relations and Policy Manager for Village, a multi-state cannabis company. He is charged with engaging with legislative leaders and supporting policy makers as they look to expand access to cannabis in their state.

He received his BA in political science from Syracuse University and his JD from CUNY School of Law.

Posted by at No comments:

Co-Founder Of Investment Fund Sentenced To 4 Years In Prison For Defrauding Investors Of Over $25 Million

 

Jason Rhodes Served as Chief Investment Officer and Chief Risk Officer While Defrauding Investors

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that JASON RHODES, the co-founder, chief investment officer, and chief compliance officer for Sentinel Growth Fund Management, LLC (“Sentinel”), was sentenced today by U.S. District Judge Sidney H. Stein to 48 months in prison for securities fraud, wire fraud, investment adviser fraud and conspiracy charges.  Those charges relate to RHODES’s participation in a scheme to defraud over 25 investors in Sentinel out of more than $25 million by lying to the investors and using investor funds for his own personal use and to make repayments to earlier investors in a Ponzi-like manner.   

U.S. Attorney Audrey Strauss said:  “Jason Rhodes defrauded investors in the fund he co-founded of more than $25 million through years of lies and deceit.  This conduct is made even worse by the fact that Rhodes served as the chief investment officer and Chief Risk Officer of Sentinel, roles in which it was his direct responsibility to safeguard investor funds.  Rhodes will now serve four years in prison for his crimes.”

According to the Indictment and other Court filings:

Beginning in at least 2013 and through in or about December 2016, RHODES, together with his co-conspirators, solicited investments in Sentinel by falsely representing to investors that their funds would be used for legitimate, specified, investment purposes, namely purchasing securities.  In fact, RHODES failed to invest the investor monies as promised, but rather diverted investor funds to his own personal use and the personal use of his co-conspirators and, in a Ponzi-like manner, used them to make repayments to other investors who were demanding their money.  Among other things, RHODES diverted investor funds to a trucking business operated by RHODES and his wife; used them to pay more than $1 million to settle an unrelated civil lawsuit filed against RHODES and one of his co-conspirators; and expended them on other, personal expenses including a resort stay in Dubai and a luxury time-share vacation club.  Through this scheme, RHODES and his co-conspirators defrauded over 25 investors out of more than $25 million.

Among other fraudulent acts, RHODES and a co-conspirator falsified an account statement for an investor (“Investor-1”) to conceal the fact that RHODES and his co-conspirators had misappropriated most of the $4.2 million Investor-1 had invested in Sentinel.  After Investor-1 discovered the fraudulent nature of the account statement, RHODES, working with others, obtained funds from yet another investor (“Investor-2”) in order to make payments to Investor-1.  RHODES and his co-conspirators then, on multiple occasions, created fraudulent reports for Investor-2, falsely reflecting that Investor-2’s funds were invested with portfolio managers in Sentinel’s brokerage accounts and were earning returns.  In truth and in fact, and as RHODES well knew, Investor-2’s funds had been almost entirely misappropriated upon their receipt to repay Investor-1 and were not being managed by portfolio managers on Sentinel’s platform. 

RHODES, 48, of Rowayton, Connecticut, was also sentenced to three years of supervised release and ordered to pay restitution and forfeiture of $25,451,801.

Ms. Strauss praised the work of the FBI.  She also thanked the Securities and Exchange Commission for its assistance.  

Posted by at No comments:

Assemblyman Jeffrey Dinowitz - REMINDER: Flu Shots in Van Cortlandt Village on September 14

 

No-Cost Flu Shots Available in Van Cortlandt Village on Tuesday, September 14

Register Now for Flu Shots at Vladeck Hall
Dear Neighbor:

It's that time of year again! My office is hosting our annual flu shot events starting in September. The first date will be Tuesday, September 14 in Vladeck Hall (located in Van Cortlandt Village).

Please note that advanced registration is required for all flu shot events. We will have the standard (quadrivalent) dose flu shot available, but if your doctor has told you that you need the stronger dose (high-dose or adjuvanted) – please contact your doctor's office or local pharmacy to schedule an appointment. Everyone will be required to maintain at least six feet of physical distancing while waiting in line and face masks must cover both the nose and mouth at all times. Please bring your insurance card if you have it (participants over 65 must bring their Medicare Part B card). These events will operate rain or shine, so please dress accordingly.

DATE: Tuesday, September 14, 2021
TIME: 10am to 2pm
LOCATION: Vladeck Hall (74 Van Cortlandt Park South)
NOTE: Shots will be administered indoors, but the line will form outdoors. This event will be hosted along with Congressman Adriano Espaillat and Council Member Eric Dinowitz, and flu shots will be provided by Duane Reade/Walgreens. Thank you as well to Amalgamated Houses for hosting us.

If you have any questions, please contact my office at 718-796-5345 or DinowitzJ@nyassembly.gov.

Thank you for doing your part to keep each other safe this flu season, and please spread the word to your friends and neighbors as well.

Sincerely,
Jeffrey Dinowitz
Member of Assembly



Posted by at No comments:

Assemblymember Nathalia Fernandez - In and Around The 80th Assembly District

 

The Assembly held a hearing to examine the application process and implementation of ERAP. With the eviction moratorium ending, it is clear that NYS needs more time to distribute these funds in the most effective way possible so that resources get in the hands of New Yorkers.

Congratulations Mosholu Library for opening your outdoor section!

This is a great benefit for the community as we advance literacy within The Bronx, as well as create a safe green space for higher education.

The 80th district has many delicious & diverse food options I will be sharing on my #DistrictEatsTour.

In honor of National Cuban Sandwich Day, I had to make sure to get mine today! 

If you’re in the 80th, stop by Latin Fusion Cocina at 789 Allerton Avenue for a good one.

I partnered with Remy Salas as we provided bags of fresh fruit & vegetables. The fridge has been restocked and is open to the community!

The Albanian American Open Hands Association & Pelham Parkway Neighborhood Association hosted their annual Back to School Event.

I happily co-sponsored & attended the event with #TeamFernandez.

IMPORTANT NUMBERS & LINKS

Assemblywoman Nathalia Fernandez
DISTRICT OFFICE
2018 Williamsbridge Road
Bronx, NY 10461
718-409-0109
Fax: 718-409-0431
ALBANY OFFICE
LOB 530
Albany, NY 12248
518-455-5844
Fax: 518-455-5596


Posted by at No comments:

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19

 

62,861 Vaccine Doses Administered Over Last 24 Hours

27 COVID-19 Deaths Statewide Yesterday 


 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.

"New Yorkers are continuing to fight COVID-19 every single day, but it's clear that the way we defeat this pandemic is getting vaccinated and we need more shots in arms," Governor Hochul said. "We have sites open and shots available across the state, but it's clear that the Delta variant demands a stronger response, and that's why we're implementing new rules to keep our children safe in New York schools. Millions of New Yorkers have gotten vaccinated easily and for free, so I urge everyone to help protect their families and communities by taking the shot immediately." 
  
Today's data is summarized briefly below:

  • Test Results Reported - 146,496
  • Total Positive - 4,612
  • Percent Positive - 3.15%
  • 7-Day Average Percent Positive - 3.36%
  • Patient Hospitalization - 2,285 (+51)
  • Patients Newly Admitted - 362
  • Patients in ICU - 493 (+9)
  • Patients in ICU with Intubation - 250 (+3)
  • Total Discharges - 193,113 (+274)
  • New deaths reported by healthcare facilities through HERDS - 27
  • Total deaths reported by healthcare facilities through HERDS - 43,601

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.

  • Total deaths reported to and compiled by the CDC - 55,621

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.

  • Total vaccine doses administered - 23,728,555
  • Total vaccine doses administered over past 24 hours - 62,861
  • Total vaccine doses administered over past 7 days - 374,389
  • Percent of New Yorkers ages 18 and older with at least one vaccine dose- 77.2%
  • Percent of New Yorkers ages 18 and older with completed vaccine series- 70.0%
  • Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 79.8%
  • Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 71.7%
  • Percent of all New Yorkers with at least one vaccine dose - 65.1%
  • Percent of all New Yorkers with completed vaccine series - 58.7%
  • Percent of all New Yorkers with at least one vaccine dose (CDC) - 67.4%
  • Percent of all New Yorkers with completed vaccine series (CDC) - 60.1%
Posted by at No comments:

PUBLIC ADVOCATE CALLS FOR REMOTE LEARNING OPTION AS SCHOOL REOPENING NEARS

 

 With under two weeks until the start of the school year, and as the Delta variant continues to spread, the city has yet to announce crucial safety plans or remote learning protocols. At a City Council hearing on the impending reopening today, Public Advocate Jumaane D. Williams called for a remote learning option to be available to vulnerable students to start the school year, and lamented the fact that a lack of adequate transparency or planning has yet again created confusion and concern about the reopening process. 

"It's déjà vu all over again..." the Public Advocate said at the start of the Wednesday hearing of the Committee on Education, citing the administrative struggles of last year which he feels are repeating in the lead up to the reopening. "... The highly contagious Delta variant poses a new challenge to the vaccinated and the unvaccinated alike. It is imperative that the Department of Education have a clear, transparent plan for protecting students, educators, school staff, and their families before the school year begins. The DOE should also provide a remote learning option for students and educators who do not feel comfortable attending learning in-person; until students of all ages can be vaccinated against COVID-19 and the Delta variant is under control, students and educators are at risk in school buildings."

Public Advocate Williams focused on the failures of the city to provide a remote option, as well as ensure that proper precautions are in place in schools, saying "Thousands of classrooms have been cleared by the DOE as having adequate ventilation for safe, in-person instruction even though they do not meet the COVID-19 standards set by federal experts or recommended by building industry experts... and it is unacceptable with the amount of time the DOE has had to prepare for thousands of classrooms to be relying on open windows for clean air."

He also highlighted the risks posed with larger class sizes, saying "Many schools in New York City face a safety challenge the DOE has long been aware of: overcrowding... Mask mandates in school will undoubtedly help control the spread of COVID-19, but there are circumstances in which students and educators will have to remove their masks...There are also some students with disabilities, such as autism, who are unable to continuously wear a mask. With the Delta variant making removing masks even for a few moments a safety risk, the DOE must provide guidance to keep students and educators safe in crowded settings." 

In the highly likely event that there are COVID-19 cases in a classroom or school, the Public Advocate noted, there are inadequate procedures and guidances for quarantining and protecting fellow students and staff. This further points to the need for a well-developed remote learning process to begin the year. 

TESTIMONY OF PUBLIC ADVOCATE JUMAANE D. WILLIAMS
TO THE NEW YORK CITY COUNCIL COMMITTEE ON EDUCATION
SEPTEMBER 1, 2021

Good morning,

My name is Jumaane D. Williams, and I am the Public Advocate for the City of New York. I would like to thank Chair Treyger, and members of the Committee on Education for holding this hearing today.

On September 13th, New York City is set to open all of its 1,800 public schools for full-time, in-person instruction five days a week. There will be far more seats filled than last year, when about 350,000 students opted into in-person learning at some point during hybrid schooling. While educators and school staff are required to be vaccinated against COVID-19 and students ages twelve and older are eligible for the Pfizer-BioNTech vaccine, all students younger than twelve are unable to be vaccinated. Further, the highly contagious Delta variant poses a new challenge to the vaccinated and the unvaccinated alike. It is imperative that the Department of Education (DOE) have a clear, transparent plan for protecting students, educators, school staff, and their families before the school year begins. The DOE should also provide a remote learning option for students and educators who do not feel comfortable attending learning in-person; until students of all ages can be vaccinated against COVID-19 and the Delta variant is under control, students and educators are at risk in school buildings.

Despite repeated requests from students and their families, there is no remote learning option for this school year. Because all students, regardless of their ability to get vaccinated, are required to attend in-person learning, it is extremely important that schools are transparent about their safety plans and that the DOE is monitoring these plans to ensure that all possible safety precautions are taken. However, there is no policy in place to ensure that this happens. Approximately 1,500 classrooms are still undergoing ventilation repairs with no publicly set deadline for completion. Thousands of classrooms have been cleared by the DOE as having adequate ventilation for safe, in-person instruction even though they do not meet the COVID-19 standards set by federal experts or recommended by building industry experts-and at least 4,000 of these classrooms rely exclusively on open windows for ventilation. Ventilation is a key mitigation measure for preventing the spread of COVID-19, and it is unacceptable with the amount of time the DOE has had to prepare for thousands of classrooms to be relying on open windows for clean air.

Many schools in New York City face a safety challenge the DOE has long been aware of: overcrowding. At least ten percent of classrooms are unable to adhere to even three feet of social distance, the standard recommended by the CDC in schools, although it is likely that far more space is actually required to remain safe from the Delta variant. Mask mandates in school will undoubtedly help control the spread of COVID-19, but there are circumstances in which students and educators will have to remove their masks for which there is no clear protocol, particularly at lunch. There are also some students with disabilities, such as autism, who are unable to continuously wear a mask. With the Delta variant making removing masks even for a few moments a safety risk, the DOE must provide guidance to keep students and educators safe in crowded settings.

The city is shrinking its school virus testing program, with ten percent of unvaccinated students expected to be tested every other week this year. With the size of New York City's student population, this plan may invite scrutiny; Los Angeles, the country's second-largest school district, is aiming to test every student and staff member each week. At a time when the extremely contagious Delta variant is the predominant strain in the city, testing more students more often will protect our students, educators, and their families. Additionally, when someone in a classroom tests positive for COVID-19, only unvaccinated "close contacts" will have to quarantine for ten days; in elementary schools, when one student tests positive, the entire class will temporarily switch to remote learning. However, the DOE has not provided guidance for how many positive cases would trigger a school-wide closing, which is important for schools to know prior to the start of school.

When students have to quarantine, they will need to utilize remote learning while they are at home. Remote learning was extremely challenging for students and their families over the past two school years, particularly for students with disabilities and English language learners. We do not know if remote learning has been improved in preparation for its inevitable use. Remote learning will have a greater impact on those who are unvaccinated, who are disproportionately Black and brown students. With no updates on how the DOE is working to make remote learning better, these students will be the ones to receive the least quality education. We must have a remote learning option, for at least the start of the school year, as the stakes are too high and our children's lives depend on it now more than ever.

All students deserve an environment where they can learn with as little risk to their health and safety as possible. Of course, it is unfortunately impossible to fully guarantee that no student or educator will get sick at their school, but there is so much more that the DOE can be doing to minimize the risk of COVID-19 infection. I hope that we can work together to protect our school communities and make this school year a success. Thank you.
Posted by at No comments:

Manhattan U.S. Attorney Announces Extradition Of British National For Participation In Online Film And TV Piracy Group

 

In August 2020, Manhattan U.S. Attorney Announced International Operation to Dismantle the Sparks Group, Which Allegedly Caused Tens of Millions of Dollars in Losses Resulting from Pirated Films and TV Shows

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that GEORGE BRIDI, a citizen of the United Kingdom, was extradited to the United States from Cyprus on August 31, 2021.  BRIDI was extradited on charges of conspiracy to commit copyright infringement, wire fraud conspiracy, and conspiracy to commit interstate transportation of stolen property, for his involvement in the Sparks Group, an international piracy group that illegally distributed movies and television shows on the Internet. 

BRIDI was arrested on August 23, 2020, in Paphos, Cyprus.  BRIDI will be presented and arraigned today before U.S. Magistrate Judge Ona T. Wang.  Codefendant Jonatan Correa, a/k/a “Raid,” previously pled guilty to conspiracy to commit copyright infringement and was sentenced on May 19, 2021, to three years and three months of supervised release, with the first three months to be served in community confinement.  Codefendant Umar Ahmad, a citizen of Norway, remains at large.  The case is assigned to U.S. District Judge Richard M. Berman. 

U.S. Attorney Audrey Strauss said: “As alleged, George Bridi was a member of an international video piracy ring that circumvented copyright protections on nearly every movie released by major production studios, as well as television shows, and distributed them worldwide on the Internet.  Thanks to the assistance of our law enforcement partners, the piracy ring has been busted and Bridi is now in U.S. custody.”

According to the allegations contained in the Indictments[[1]]:

Between 2011 and the present, Umar Ahmad, a/k/a “Artist,” GEORGE BRIDI, Jonatan Correa, a/k/a “Raid,” and others known and unknown were members of the Sparks Group, a criminal organization that disseminated on the Internet movies and television shows prior to their retail release date, including nearly every movie released by major production studios, after compromising the content’s copyright protections.

In furtherance of its scheme, the Sparks Group fraudulently obtained copyrighted DVDs and Blu-Ray discs from wholesale distributors in advance of their retail release date by, among other things, making various misrepresentations to the wholesale distributors concerning the reasons that they were obtaining the discs prior to the retail release date.   

Sparks Group members then used computers with specialized software to compromise the copyright protections on the discs, a process referred to as “cracking” or “ripping,” and to reproduce and encode the content in a format that could be easily copied and disseminated over the Internet.  They thereafter uploaded copies of the copyrighted content onto servers controlled by the Sparks Group, where other members further reproduced and disseminated the content on streaming websites, peer-to-peer networks, torrent networks, and other servers accessible to public.  The Sparks Group identified its reproductions by encoding the filenames of reproduced copyrighted content with distinctive tags, and also uploaded photographs of the discs in their original packaging to demonstrate that the reproduced content originated from authentic DVDs and Blu-Ray discs.

Ahmad and BRIDI arranged for discs to be picked up, mailed, or delivered from distributors located in Manhattan, Brooklyn, and New Jersey to other members of the Sparks Group, including Correa, prior to their official release date.  Ahmad, BRIDI, and Correa then reproduced, and aided and abetted the reproduction of, these discs by using computer software that circumvented copyright protections on the discs and reproducing the copyrighted content for further distribution on the Internet. 

The Sparks Group has caused tens of millions of dollars in losses to film production studios.

On August 26, 2020, in coordination with law enforcement authorities in 17 countries and supported by Eurojust and Europol, dozens of servers controlled by the Sparks Group were taken offline around the world, including in North America, Europe, and Asia.  The Sparks Group utilized these servers to store and disseminate copyrighted content illegally to members around the globe. 

BRIDI, 50, is charged with copyright infringement conspiracy, which carries a maximum penalty of five years in prison; wire fraud conspiracy, which carries a maximum penalty of 20 years in prison; and conspiracy to transport stolen property interstate, which carries a maximum penalty of five years in prison.    

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 outstanding work of Homeland Security Investigations and the U.S. Postal Inspection Service.  She also thanked Europol and Eurojust as well as law enforcement authorities in the following countries for their assistance in the investigation: Canada, Cyprus, Czech Republic, Denmark, France, Germany, Italy, Republic of Korea, Latvia, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, and the United Kingdom. 

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Andrew K. Chan, Mollie Bracewell, and Christy Slavik are in charge of the prosecution.  The Justice Department’s Office of International Affairs (OIA) of the Department’s Criminal Division provided significant and ongoing assistance with facilitating the execution of dozens of mutual legal assistance requests in 18 different countries necessary for taking down servers and gathering evidence.  OIA also provided critical support in working with Eurojust and Europol in planning the coordinated operation in August 2020 and provided critical assistance in securing the defendant’s extradition from Cyprus.

The charges contained in the Indictments are merely accusations, and BRIDI and Ahmad are presumed innocent unless and until proven guilty.

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

Posted by at No comments: