Queens Man Sentenced 121 Months In Prison For Laundering Millions Of Dollars Of Fraud And Hacking Schemes And Committing Bank Fraud

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that DJONIBEK RAHMANKULOV was sentenced to 121 months in prison for laundering millions of dollars in criminal proceeds obtained from computer hacking, healthcare fraud, and Small Business Administration loan fraud, as well as operating an international unlicensed money transmitting business.  The defendant was convicted at trial on September 1, 2022, of money laundering conspiracy, bank fraud, and conspiracy to operate an unlicensed money transmitting business.  U.S. District Judge Ronnie Abrams imposed the sentence.

U.S. Attorney Damian Williams said: “Djonibek Rahmankulov laundered money for a living.  He exploited the financial system to launder millions of dollars from multiple fraudulent schemes and repeatedly lied to banks to operate his illegal enterprise.  Once caught — and even after he was convicted — the defendant continued to show that he believed he was above the law by threatening a witness and submitting false information to the Court.  This sentence reflects that this Office will find and prosecute those who seek to abuse the U.S. financial system to launder dirty money.”

According to the superseding Indictment, evidence at trial, and statements made in Court:

Between 2017 and September 2020, RAHMANKULOV operated a network of shell companies that were used to launder millions of dollars of criminal proceeds from multiple types of criminal activity.  RAHMANKULOV worked with computer hackers who fraudulently gained control of the bank accounts of victims located throughout the United States and executed millions of dollars in fraudulent wire transfers into bank accounts opened by RAHMANKULOV and his co-conspirators.  RAHMANKULOV received wire transfers into bank accounts he created and bank accounts he instructed others to create and laundered these proceeds through multiple additional bank accounts to prevent the victims and the banks from recovering the stolen funds.

In addition, RAHMANKULOV worked with a network of pharmacies engaged in Medicare and Medicaid fraud.  These pharmacies submitted millions of dollars of fraudulent billing for HIV medications that they did not dispense or obtained illegally, including by repurchasing medications from HIV patients who were Medicaid recipients.  RAHMANKULOV created companies to receive these criminal proceeds from the pharmacies and laundered them through a variety of means, including by using them to fund an unlicensed money transmitting business that illegally moved money to and from multiple countries, including Iran.

In 2020, when the COVID-19 pandemic began, RAHMANKULOV filed fraudulent applications for COVID relief loans from the Small Business Administration for multiple companies he controlled.  He laundered the proceeds of loans and grants through these companies.  RAHMANKULOV also made a number of materially false statements to financial institutions in connection with his money laundering schemes, both when opening bank accounts and when executing financial transactions with those bank accounts.

RAHMANKULOV sought to obstruct justice during the pendency of his case.  In the months before trial, RAHMANKULOV instructed a witness to lie to law enforcement.  When the witness later informed RAHMANKULOV that the witness would tell the truth to law enforcement, RAHMANKULOV threatened the witness, stating, among other things, that if he went to prison, “I will drag all of you with me, and once you are there, then I will have my revenge.”  Nonetheless, the witness testified at trial.  RAHMANKULOV continued seeking to obstruct justice after his conviction.  In advance of his sentencing, he submitted multiple letters to the Court purporting to show support from members of the community, but two of these letters were in fact fraudulent and had not been written by the purported authors.

In addition to the prison term, RAHMANKULOV, 35, of Queens, New York, was sentenced to three years of supervised release.  RAHMANKULOV was further ordered to pay a forfeiture of $5,413,278 and a $40,000 fine.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Money Laundering Investigation Squad.

Statement from NYGOP Chair Ed Cox - Re DA Bragg and Former President Trump

 

New York State Republican Chair Ed Cox released the following statement on reports regarding the blatantly political indictment of former President Trump:

 

“Indicting a former President of the United States and a declared presidential candidate on a criminal charge for an alleged infraction typically classified as a misdemeanor, and even then rarely used as a stand alone misdemeanor, is a miscarriage of justice, an outrageous violation of democratic norms and a travesty for our politics at home and reputation abroad.  

"Insofar as it is attached to a federal election law filing issue, the Southern District of New York and Biden’s Department of Justice looked at the issue and seemingly passed on it long ago, and for good reason, since the federal law’s bias is to excluded personal payments as campaign expenditures. 

 

“This is a blatant political scheme by Alvin Bragg to play to his liberal Manhattan base by smearing, tearing down and demeaning former President Trump. 

 

“Alvin Bragg has already abdicated his basic responsibilities by releasing criminals back onto the streets to wreak havoc on New York’s citizens and minority communities in particular. He has brought further disgrace to his office with this political game. 

“The great Manhatten District Attorney Robert Morgenthau is turning over in his grave.”

 

DOI STATEMENT ON SENTENCING OF RETIRED NYPD INSPECTOR FOR CONSPIRACY TO COMMIT FEDERAL PROGRAM FRAUD RELATED TO HURRICANE SANDY RELIEF

 

Jocelyn E. Strauber, Commissioner of the New York City Department of Investigation (“DOI”), issued a statement on this sentencing of WALTER MELNICK, 77, of Treasure Island, Florida, to three years of probation, which includes a condition that one year be served in home incarceration, for conspiring to commit federal program fraud in connection with his work for an Illinois-based consulting firm that provided Hurricane Sandy-related recovery services to the City. MELNICK was sentenced by United States District Judge Victor Marrero in the U.S. District Court for the Southern District of New York. In September 2022, MELNICK pled guilty to one count of conspiring to commit federal program fraud. Under the terms of his plea agreement, MELNICK agreed to forfeit $387,749 and to pay that amount in restitution to the New York City Office of Management and Budget (“OMB”). MELNICK has already paid the full amount of restitution to the Clerk of the Court, which will now be transferred to the City. He was also fined $50,000. DOI’s investigation began in February 2020 when OMB reported that it had received a complaint claiming that consultants from the consulting firm where MELNICK worked received lodging and travel reimbursements to which they were not entitled. DOI investigated this case with the Office of Damian Williams, United States Attorney for the Southern District of New York; the Office handled this prosecution.

DOI Commissioner Jocelyn E. Strauber said, “Hurricane Sandy wreaked havoc on this City, and these federal relief funds were intended to help the hardest hit New Yorkers recover from that devastating storm. This defendant, a retired NYPD inspector, viewed this natural disaster as an opportunity to defraud the government of federal funding, by billing exorbitant expenses that he never incurred. I thank OMB for its assistance in exposing this scheme, and our partners at the United States Attorney’s Office for the Southern District of New York for their work on this investigation and successful prosecution.” 

According to the Information, court filings, and statements made in court, beginning in or about 2013, in the aftermath of Hurricane Sandy, the New York City received billions of dollars in federal money to fund storm recovery efforts. The City used certain of these funds to hire a consulting firm (“Company-1”) to assist with Hurricane Sandy relief (the “Sandy Project”). Company-1 hired MELNICK to serve as an independent contractor to work on the Sandy Project. Between in or about 2013 and 2019, while working on the Sandy Project for Company-1, MELNICK participated in two schemes to defraud OMB:

Between in or about January 2013 and October 2017, MELNICK conspired with at least one other individual (“CC-1”) and submitted fraudulent documentation to OMB via Company-1, falsely claiming that he was renting and living in an apartment in New York City in order to obtain lodging and travel reimbursements. Upon learning this scheme was under investigation, MELNICK – who retired as a full inspector from the NYPD in 1995 – told CC-1 to lie to law enforcement.

Between in or about 2017 and 2019, MELNICK conspired with at least two individuals, including another employee of Company-1, MARK O’MARA, to purchase a property that O’MARA used to submit fraudulent reimbursement requests to OMB via Company-1. O’MARA transferred the proceeds from this fraudulent scheme to another individual who used part of the proceeds to pay the mortgage and maintenance for the property and retained the rest. In or about March 2022, MELNICK made false statements to the Government in connection with this second fraudulent scheme.

DOI was alerted to the fraudulent activity in February 2020 by OMB, which reported that it had received an anonymous complaint that O’MARA had purchased a home in New York in 2016, making him ineligible for lodging and travel reimbursements from at least 2016 to 2019. OMB then conducted a review of other Company-1 consultants on the Sandy Project and provided DOI with the names of consultants with questionable reimbursements, including MELNICK and O’MARA.

O’MARA pled guilty on February 7, 2023 to federal program fraud, wire fraud in connection with a presidentially declared major disaster, conspiracy to commit federal program fraud and wire fraud and destruction of evidence, before U.S. District Judge Richard M. Berman. His sentencing is scheduled for August 8, 2023. 

Governor Hochul Issues Proclamation Declaring March 18-19, 25-26 as Maple Weekends in New York State

 

New Yorkers Encouraged to Support Local Producers by Participating in Maple Weekend from March 18-19 and 25-26

New York Maple Syrup Production Reached Record High 845,000 Gallons in 2022; Ranks Second in the Nation

 Governor Kathy Hochul today issued a proclamation declaring March 18-19 and 25-26 as Maple Weekends in New York State. The Governor also highlighted that New York maple producers experienced a record-breaking year in 2022, producing 845,000 gallons of maple syrup, and the State continues to rank second in the nation in maple production. Governor Hochul participated in New York State Maple Weekend by visiting Moore's Maple Shack & Pancake House in Freedom, NY.

"Maple syrup production is a New York State tradition that dates back more than four centuries, and the homegrown maple industry is a key part of our agritourism and economy," Governor Hochul said. "I'm proud to celebrate the 28th anniversary of "Maple Weekends," which recognizes those who work hard to bring an ever-expanding variety of maple products from tree to table - keeping the maple industry a cherished part of our state's heritage and economy."

In addition to its ranking for maple production, New York is also home to the largest resource of tappable maple trees within the United States and more than 2,000 maple sugar makers. In 2022, New York's maple industry used 2.9 million taps, tying 2021's record for the largest number of taps used in a single year. The New York State Department of Agriculture and Markets supports the maple industry through the New York State Budget—which includes funding for promotion and educational programs—as well as through investments in research projects, such as Cornell University's Maple Program's Arnot Teaching Forest, and through its NYS Grown & Certified and Taste NY marketing programs.

Maple Weekends

Throughout the month of March each year, and, in particular, during the weekends of March 18-19 and 25-26, maple farms across the state open their doors to the public to provide a chance to taste pure maple syrup, right from the source, and experience the unique family tradition of making maple syrup in New York State. Producers, including many of those that are NYS Grown & Certified, offer tours and pancake breakfasts, sell maple products, and demonstrate the syrup-making process, which includes the traditional system of hanging buckets on trees or more modern methods of production using vacuum systems to increase the yield of sap per tree. Maple Weekends in 2023 will take place at nearly 150 maple sugarmakers' farms, boosting agritourism across New York State. A searchable list of Maple Weekend events is available at mapleweekend.nysmaple.com.

More than 80 maple producers participate in NYS Grown & Certified, which verifies New York's agricultural producers and growers who adhere to food safety and environmental sustainability standards. Find a current list of maple producers who are a part of the NYS Grown & Certified program at certified.ny.gov/wheretobuy.

Maple Promotions

New York's Taste NY Markets across the state are highlighting unique local maple products and producers during the month of March. Several markets are offering specials, including 10% off all maple items at the Finger Lakes Welcome Center, special product sampling at the Capital Region Welcome Center and Western New York Welcome Center, and more. Find a list of markets near you at taste.ny.gov. New Yorkers can also shop for New York State maple from the comfort of home on ShopTasteNY.com, which will be offering specials and free shipping on maple products throughout the month. Additionally, Taste NY Markets will be celebrating 'Maple Madness' during the weekend of March 25-26. Stay tuned on social media for more information about special sampling and giveaway promotions that weekend.

Attorney General James Hosts Drag Story Hour Read-A-Thon in New York City

 

Nearly 200 Guests Enjoyed a Day of Family Fun in Solidarity with Drag Performers and the LGBTQ+ Community 

New York Attorney General James, together with a broad coalition of advocacy organizations and elected leaders, today stood proudly in unwavering support of the LGBTQ+ community and hosted a first-of-its-kind Drag Story Hour Read-A-Thon for families in New York City. Nearly 200 guests enjoyed four back-to-back Story Hours hosted by the Drag Kings, Queens, and Royalty of Drag Story Hour NYC at The Center, which has been a home and resource hub for the LGBTQ+ community and allies since its founding in 1983. Attorney General James was joined by local elected officials, including Assemblymembers Tony Simone and Grace Lee, New York City Council Speaker Adrienne Adams, Manhattan Borough President Mark Levine, Council Members Erik Bottcher, Shekar Krishnan, and Crystal Hudson. 

“The recent rise in anti-LGBTQ+ protests, rhetoric, and policies has left New Yorkers — myself included — devastated and disappointed. But I know better than anyone that when the choice is between love and hate, between joy and venom, New Yorkers will always choose love, and New Yorkers will always choose joy,” said Attorney General James. “I am proud to have been joined by my colleagues in advocacy and government today in celebration of the love, joy, and family fun that Drag Story Hour brings to our communities. Hate has no home in New York, and I will always fight to ensure our LGBTQ+ siblings’ rights are upheld and defended.” 

Attorney General James hosted today’s Drag Story Hour Read-A-Thon to condemn hate and combat rampant disinformation. Recent months have seen a rise in homophobic protests and fearmongering surrounding Drag Story Hour, and disgraceful harassment and vitriol directed at the LGBTQ+ community, advocates, and leaders such as New York City Council Members Erik Bottcher and Shekar Krishnan. With this event, Attorney General James and her colleagues and co-sponsors are ensuring New Yorkers know that everyone — regardless of sexuality, gender, race, or socioeconomic status — is celebrated, protected, and welcomed in New York. 

This event was made possible and proudly co-sponsored by Drag Story Hour, The Center, the Pride Center of Staten Island, Destination Tomorrow, the New York Public Library, the Brooklyn Public Library, the Queens Public Library, State Senator Brad Hoylman-Sigal, State Assemblymembers Deborah Glick, Jessica Gonzalez-Rojas, Daniel O'Donnell, and Tony Simone, and New York City Council Members Erik Bottcher, Tiffany Cabán, Crystal Hudson, Shekar Krishnan, Chi Ossé, and Lynn Schulman. 

“I believe it’s our responsibility to create environments for queer families to experience healing, joy, and celebration. For the past 40 years, The Center has been a place that does that. It has also been a hub of activism in the face of attacks against our community,” said Glennda Testone, Executive Director, The Lesbian, Gay, Bisexual & Transgender Community Center in New York City. “Welcoming Drag Story Hour to The Center provided a fun day for LGBTQ+ families and served as a reminder to those who seek to erase LGBTQ+ people that we’re here and will continue to live our truth.”

“Drag Story Hour is one of our most popular programs and a fun and positive experience for families. Children love hearing stories and singing songs with the performers who dress in bright colors and sparkles,” said The New York Public Library, Brooklyn Public Library, and Queens Public Library. “Our librarians work closely with DSH to select age-appropriate books in English and other languages. We are proud to offer story times for babies and older children that reflect the diversity of the communities we serve and introduce a new generation to the joy of reading.”

“We are excited to share this occasion with Attorney General James and appreciate her unwavering support of the LGBTQ+ community. Drag story hours promote diversity and inclusion, and are intended to spark children's interest in reading,” said Sean Ebony Coleman, Founder and Executive Director, Destination Tomorrow. “We have to stand up to those who have politicized something joyful and educational. The weaponization of drag story hour is a tool to vilify the community and further promote violence against and discrimination of LGBTQ+ individuals. We will continue to celebrate all identities and refuse to let our joy be taken away.”

“The Pride Center of Staten Island applauds Attorney General Letitia James for hosting a Drag Story Hour event,” said The Pride Center of Staten Island. “In our current sociopolitical climate, where transgender people and drag performers in other parts of the country are being re-pathologized, othered, and silenced by anti-LGBTQIA+ laws, this event is an important celebration of difference and gender diversity.”

“Today, we witness the joy and happiness that Drag Story Hour brings children nationwide and the community-led effort it takes to make it happen,” says Beverly Tillery, Executive Director, New York City Anti-Violence Project. “But I would be remiss if we didn’t note the unfortunate reality of the hatred that makes such an innocent event newsworthy and the real danger our Drag performers and our community face daily due to hateful threats.”

Established in 1983 as a result of the AIDS crisis, New York City’s Lesbian, Gay, Bisexual & Transgender Community Center has grown and evolved over the last four decades, creating and delivering services that empower people to lead healthy, successful lives. The Lesbian, Gay, Bisexual & Transgender Community Center currently operates in-person and virtually, providing recovery and wellness programs, economic advancement initiatives, family and youth support, advocacy, arts, and cultural events, and space for community organizing and connection. For more information, please visit gaycenter.org.

The Office of the Attorney General (OAG) protects the civil rights of all New Yorkers and promotes equal justice under the law. If an individual witnesses or experiences an act of anti-LGBTQ+ discrimination or any unlawful discrimination, they are encouraged to contact OAG’s Civil Rights Bureau by submitting a confidential complaint online, emailing civil.rights@ag.ny.gov, or calling (212) 416-8250. 

Good Samaritan Helps Apprehend Armed Man Brandishing Two Loaded Guns In Manhattan

 Damian Williams, the United States Attorney for the Southern District of New York, Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest of JASON FLEMING after he brandished a loaded semiautomatic Hi-Point carbine rifle and a loaded Smith & Wesson .357 Magnum revolver in broad daylight after a dispute in a bodega in Chelsea.  FLEMING was arrested after a civilian, seeing FLEMING running down the street with a revolver in his hand as police were chasing him, stood in FLEMING’s way and pushed him into a nearby fence and then held onto him until police officers, who were still in pursuit, placed FLEMING under arrest.

U.S. Attorney Damian Williams said: “As alleged, the defendant illegally brandished two loaded firearms in broad daylight on a Manhattan street, one of which was a carbine rifle, frightening numerous New Yorkers, including a child.  Thanks to our law enforcement partners and the heroic efforts of a Good Samaritan, the defendant was apprehended before he could hurt anyone, and his weapons are now off the streets.”          

HSI Special Agent in Charge Ivan J. Arvelo said: “HSI special agents are committed to public safety and do not hesitate to act when members of the community are threatened.  I am proud of our agents’ hard work and efforts with the rapid apprehension of this criminal and the follow-on investigative support provided to the New York City Police Department.  HSI remains steadfast in our commitment to our law enforcement partners in the cause of community safety.”

According to the allegations in the Complaint:[1]

On or about March 16, 2023, JASON FLEMING entered a crowded bodega in the Chelsea neighborhood in Manhattan after having a verbal dispute with a man.  FLEMING then stood in the doorway of the bodega and flashed a handgun as a girl attempted to leave the bodega.  The child then ran away from the store when she was able to pass by FLEMING onto the sidewalk.  The surveillance video then shows FLEMING outside the bodega and pulling back his coat momentarily to reveal a rifle that had been swung over his shoulder.

Police officers then approached FLEMING after a witness called 911, and FLEMING took off running down the sidewalk.  While running, FLEMING brandished a semiautomatic carbine rifle in broad daylight while frightened civilians began running away from him, as seen in the below screenshots from surveillance videos:

FLEMING then threw the rifle over a fence near where customers were dining at a restaurant’s outdoor dining shed.  Law enforcement officers recovered the rifle and found that it was a loaded semiautomatic Hi-Point carbine rifle, a photograph of which is below:

Meanwhile, after throwing the rifle, FLEMING brandished a revolver and continued running down the street, with police officers in foot pursuit.  A nearby civilian, seeing FLEMING running down the street with a revolver in his hand, stood in FLEMING’s way and pushed him into a nearby fence and then held onto him until police officers, who were still in pursuit, placed FLEMING under arrest and handcuffed him.  A screenshot of FLEMING, brandishing the revolver after the civilian made contact with him, is below, along with a photograph of the revolver:

FLEMING was not permitted to possess firearms because of his two prior felony convictions for unlawful firearms possession.

JASON FLEMING, 39, of New York, New York, is charged with possession of firearms after a felony conviction, which carries a maximum sentence of 15 years in prison. 

The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of HSI and the NYPD.  Mr. Williams also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives for its assistance in this case.

This case is being handled by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorney Michael R. Herman is in charge of the prosecution.

The charges contained in the Complaint 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 Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation. 

Bronx Chamber of Commerce - Celebrating Rob Walsh - Irish Heritage Celebration & Networking Reception

 

Reserve Your Spot - Click Here

Robert Walsh is the interim President of the Bronx Overall Economic Development Corporation (BOEDC) and serves on the Board of Directors for The Bronx Chamber of Commerce. Walsh currently teaches at Columbia University, School of Public and International Affairs. His segment “The Bottom Line for Small Business” airs on 1010 WINS Radio where he is also the moderator of the Small Business Challenge which recognizes the work of entrepreneurs in the New York metropolitan area. From 2014-18, he has served on the faculty at Baruch College’s School of Public and International Affairs, where he has also served as the faculty director of the executive master’s degree in public administration program. In January 2002, Mayor Michael Bloomberg appointed Walsh the commissioner of the Department of Small Business Services (SBS). During his 12 years there, SBS became one of the city's most innovative agencies in serving the needs of its 200,000 small businesses. Walsh re-energized the city's business improvement districts and created an award-winning neighborhood leadership program in partnership with the Coro Foundation. Under his leadership, seven NYC Business Solutions Centers were established that secured more than $200 million for small businesses in the last six years of his tenure. He created a wide array of entrepreneurial courses and forged new partnerships with groups, including the Initiative for a Competitive Inner City, Goldman Sachs 10,000 Small Business Program, Interise, and the Kauffman Foundation. Prior to serving in the Bloomberg administration, Walsh served as president of Charlotte (N.C.) Center City Partners. He led the Center City master plan initiative that led to significant private and public investments. He also attracted Johnson & Wales University to the Center City. From 1989 to April 1997, he played an instrumental role in the revitalization of one of New York’s great neighborhoods, as executive director of the Union Square Partnership. During the 1980s, he worked in the administration of Mayor Edward I. Koch. He began his career in public service as a New York City Urban Fellow, a program he later directed.  Walsh holds a bachelor’s degree in political science and master’s degree in public affairs from Fordham University. He also participated in the senior executives in state and local government program at the Harvard Kennedy School.

Local Sales Tax Collections Grew by Over 14% in February Compared to Last Year

 

DiNAPOLI: LOCAL SALES TAX COLLECTIONS GREW BY OVER 14% IN FEBRUARY COMPARED TO LAST YEAR

Local sales tax collections in New York state increased by 14.1% in February compared to the same month in 2022, according to an analysis released by State Comptroller Thomas P. DiNapoli. Overall, local collections totaled $1.64 billion, up $203 million compared to the same time last year.

“While local sales tax collections continue to experience major growth in 2023, future collections may not grow at such a fast pace,” DiNapoli said. “With the nation and the state facing significant economic challenges, local governments should exercise caution and use responsible budgeting practices.”

New York City’s collections totaled $718 million, an increase of 11.6%, or $74.5 million, over February of 2022. All counties experienced strong increases in February collections, with most seeing double-digit growth. Albany County had the largest increase at 48.8%, followed by Columbia (29.1%) and Yates (26.8%) counties. Onondaga County had the smallest growth at 8.9%.

These monthly sales tax collections are from the cash distributions made to counties and tax-imposing cities by the state Department of Taxation and Finance, and the amounts are based on estimates of what each municipality is due. In the third month of each calendar year quarter, these distributions are adjusted upward or downward, so that the quarter as a whole reflects reported sales by vendors. The next quarterly numbers (for January to March) will be available in April.

Table

Monthly Local Sales Tax Collections by County and Region