WHITE PLAINS CITIZENETREPORTER SETS RECORD VISITS FOR YEAR 7,017,658 VISITS! 2,098,003 VISITORS MADE 6 VISITS A DAY EVERY DAY. 63,330 UNIQUE VISITORS MADE 133,730 VISITS IN DECEMBER. WPCNR AVERAGED 17,284 VISITORS A WEEK, VISITING 31,270 TIMES.

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WPCNR FBI WIRE. From the Federal Bureau of Investigation. May 7, 2014:

On Tuesday, an indictment was unsealed charging six men with carrying out a $30 million bank fraud conspiracy by fraudulently inflating the prices of homes for sale and then obtaining mortgages that far exceeded the true collateral value of properties in Nassau and Suffolk Counties.

Through his mortgage banking company, defendant Aaron Wider and his co-conspirators allegedly then re-sold these “toxic” mortgages to banks and other investors in the secondary mortgage market, causing millions in losses when the loans went into foreclosure.

Four of the defendants were arrested Tuesday morning and  presented for arraignment later at the United States Courthouse in Central Islip, New York, before United State Magistrate Judge Gary R. Brown. Of the remaining two defendants, one was taken into custody in Florida, while another is scheduled to surrender to federal agents today in Central Islip.

The indictment and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office.

“The conduct charged in the indictment is a prime example of the type of corrupt mortgage-lending practices that preceded the bursting of the real estate bubble, the loss of faith in securitized mortgage obligations, and the financial collapse of 2007 and 2008,” stated United States Attorney Lynch.

“Instead of using their skills in banking, the law, and investing to assist individuals pursuing the American Dream, the defendants cooked up a sophisticated scheme that defrauded lenders and then fed toxic debt to the investigating public at large in the secondary mortgage market. I would like to thank the investigators at the Nassau County District Attorney’s Office and New York State Department of Financial Services for their invaluable assistance in this investigation.”

FBI Assistant Director in Charge Venizelos said, “As alleged in the indictment, during the height of the real estate boom, these defendants devised a scheme to turn a profit at the expense of unsuspecting lenders, investors, and members of the public.

Mortgage fraud poses a threat to our financial systems and to our economy. This case should send a clear message to all individuals who try to game our financial market: you will be identified and held accountable for your criminal acts. The FBI, along with our law enforcement partners, will continue to investigate those who orchestrate and participate in various mortgage fraud schemes in order to protect the public against those who seek to damage our economy.”

According to the indictment and other court filings, between 2003 and 2008, defendant Aaron Wider operated a New York State licensed mortgage bank in Garden City, New York, called HTFC Corp., which issued residential mortgages to borrowers.

HTFC did not possess assets to fund these loans but relied on funding from other banks and financial institutions, commonly known as “warehouse lenders.” The warehouse lenders relied on Wider and HTFC to ensure that home buyers were able to pay the mortgages and that the market value of the homes fully collateralized the loans.

Flip Finance

Instead, Wider and the co-defendants allegedly engineered a complex series of same-day sham transactions, or “flips,” to artificially inflate the prices of homes. Then, they lied to the warehouse lenders to obtain mortgage funding that was 80 percent more than the actual value of the homes. Wider and co-defendants Manjeet Bawa, John Petiton, and Joseph Ferrara contracted to buy homes in Nassau and Suffolk Counties from innocent sellers at market prices. The defendants then submitted fraudulent loan applications to the warehouse lenders that nearly doubled the true sales prices of the homes. The defendants also inflated their personal assets and concealed significant liabilities to get loan approval.

At each closing, Petiton, an attorney admitted to practice in New York State, oversaw the actual sales to innocent sellers and simultaneously created sham trusts into which title to the properties was transferred for no money. He and the co-conspirators then immediately transferred title back to the co-defendants at nearly double the price to create a false paper trail documenting the artificially inflated prices.

Meanwhile, real estate appraiser Joseph Mirando prepared false appraisal reports to justify the inflated prices, while HTFC closing attorney Eric Finger concealed the far lower, true sales price for properties by lying on federal-mandated settlement forms. Finger received wire transfers of funds from the warehouse lenders and, after paying the innocent third-party sellers, disbursed the surplus money fraudulently obtained in the mortgages to his fellow co-conspirators.

HTFC sold each of its mortgages in the secondary market. On paper, the loans appeared to be attractive investments because HTFC’s mortgages carried high rates of return that were supposedly fully collateralized by the market value of homes and the assets and incomes of the borrowers or mortgagors.

Upon buying mortgages from HTFC, the secondary market bank paid off the warehouse lenders and then either collected the principal and interest or bundled them into mortgage-backed securities that were sold to pension funds, hedge funds, and other investors seeking relatively secure, high-yield investments.

When HTFCs mortgages went into foreclosure beginning in 2007 and 2008, the secondary market investors discovered that the actual value of the collateral was 80 percent less than the amount borrowed for each home.

The charges in the indictment are merely allegations, and the defendants presumed innocent unless and until proven guilty. If convicted, the defendants face up to 30 years’ imprisonment. The indictment unsealed today also seeks to forfeit 19 residential properties traced to the bank fraud or up to $30 million in a money judgment.

The case is being prosecuted by Assistant U.S. Attorney James Miskiewicz.

Defendants:

MANJEET BAWA, age 46, Dix Hills, New York

JOSEPH FERRARA, age 70, Long Beach, New York

ERIC FINGER, age 48, Miami, Florida

JOSEPH MIRANDO, age 54, Centereach, NY

JOHN PETITON age 68, Garden City, New York

AARON WIDER age 50, Copiague, New York

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WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey May 6, 2014:

Two persons spoke at the public hearing on the 2014-15 City Budget last night.

Madeleine Zevon, speaking for the League of Women Voters said the League endorsed the city budget, praising the city for keeping the city tax increase a “modest” one (2.3%), and keeping the city tax levy under the state-imposed 2% tax levy cap. Her statement urged the city increase its efforts to find areas where it and the school district and other entities to find more ways expenses could be consolidated.

Steve Hochman, delivering the Budget and Management Committee Report  praised the budget for staying within the 1.46% % state tax levy cap, and for the third year, not borrowing   to pay tax certioraris or pension expenses. The Committee praises the city for paying its $1.8 Million in tax certiorari refunds with half from reserves and  half from operating revenues.

The Committee is pleased the city is moving to paying self-insurance costs in part with $700,000 from the General fund, and doubled its cash contribution to rolling stock replacement.

Hochman observed “the city will continue to face budgetary pressures stemming from increasing costs for pensions and other benefits, a flat-to-declining property tax base and the State property levy tax cap.

The Committee, Hochman said recommends in the future:

Continue to manage total head count through consolidations and technology; expand use of cash for capital programs to reduce interest payments; the city should continue to increase its unassigned fund balance, and reducing use of the fund balance in the future if the city’s finances continue to improve.

The Committee recommends expanding use of garbage containers for commercial garbage pickup and the use of sideloaders for early garbage pickups on Post Road and Mamaroneck Avenue, reducing the number of garbage pails commercial establishments are allowed from 6 to 4.

The Committee urged the city to put out a Request for Proposals to hire “actuarial services that would deliver a more comprehensive  Post Employment Benefits report” to make the city “ahead of the curve in understanding this obligation, the implications for future years’ budgets and the ramifications for the city’s ongoing fiscal health.”

Consolidations of Services Eligible to Qualify for Municipal Property Tax Rebates Retroactively.

The Mayor said that the New York Conference of Mayors he just attended had obtained assurance from the Governor’s office that previous consolidations of services that cities and towns had achieved prior to the passing of the 2014-15 state budget, would be eligible towards determining eligibility for tax rebates in 2015 when the 1% property tax rebate measure cities are subject to becomes available.

Fuel Conversion Air Quality Legislation Tabled

John Martin Council President requested the Air Quality Statute on the agenda that would require approximately 55 buildings, 6 to 10 stories, the majority residential co-ops and rentals to eliminate use of Fuel Oil No 6 in one year, and eliminate No 4 Fuel Oil by 2020 should be tabled. It was tabled.

Fourth Court Judge becomes Full-time.

The Council passed legislation upgrading the fourth City Court Judge to a full-time position. It does not cost the city any money because the New York State Court System funds all four positions.

Water Lawyer Turned Back On

John Martin, Common Counsel President, explained the city was rehiring the law firm that had represented the city in previously successful attempts to lower water rates thrust upon the city by the City of New York.

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Ronald Ross–Town of Greenburgh Superintendent of Schools — outspoken critic of the state’s Common Core implementation–from his appearance on PEOPLE TO BE HEARD, last fall.

WPCNR SCHOOL DAYS. Special to WPCNR from the Greenburgh Board of Education. May 6, 2014:

The Greenburgh Central School District Board of Education voted Monday night to place Superintendent Ronald O. Ross on administrative reassignment pending a hearing on the disciplinary charges filed against him dated March 27, 2014.

The reassignment is effective immediately. The charges had been held in abeyance since that time, while unsuccessful efforts were underway to address the issues presented.  The decision was made Monday night during a special board meeting.

Board President Lloyd Newland stated, “This situation has greatly affected the district, our community, but most importantly our children.  It has eclipsed what really matters to us– the success and academic achievement of our students. The Board has voted to place Mr. Ross on administrative reassignment and will await the outcome of the hearing of the charges filed against him. We can now turn our focus to our children and this school district.”

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WPCNR THE LETTER TICKER. May 5, 2014:

(Editor’s Note: a WPCNR reader contributes a more up-to-date cost analysis than the EDF study provided in a WPCNR article on tonight’s No 4 and 6 fuel oil phase out air quality legislation on the consent agenda. The EDF study was a project done in 2010. Times and costs have gone up, espcially for White Plains buildings, the reader points out:)_

Dear John:

                Below are some reasons the Common Council should consider delaying action on this proposed ordinance until the financial implications are studied more carefully.

                1.            The difference in cost between #6 oil and #2 oil is substantial. 

Today, that difference is $0.496 per gallon, meaning that #2 oil is $0.496 more per gallon than #6 oil.  This means a building which uses 100,000 gallons of fuel oil annually will pay $49,600.00 more per oil at today’s prices.  This is in addition to the cost of converting to #2 and/or natural gas.

                2.            The cost of conversion analysis in the EDF study are completely unrealistic.  For instance, a natural gas burner for a 100 unit building costs approximately $55,000.00, not the $10,000.00 listed in the EDF study.  Similarly, relining a 6 story building chimney actually costs around $20,000.00, not the $5,000.00 in the EDF study.  Equally unrealistic is the natural gas piping estimate of $10,000.00. 

Con Edison will only bring the gas line to the property line and the property owner must pay the cost to extend the gas line from the property line to the boiler.  This process involves street opening permits, digging trenches, laying pipe and welding.  I cannot speak to the costs for securing oil tank since I don’t know what is involved and I am not familiar with the cost of condensate pumps.

                3.            A more accurate cost estimate is available to me.  One co-op I represent is currently converting to natural gas.  The project cost is $182,000.00.  More than 1/3 of the cost is to extend the natural gas line.  The co-op is projecting annual savings of approximately $32,000.00 from using gas instead of #2 oil, meaning the cost of conversion will be recovered in 6 years, not the 1.1 years in the EDF study.

                4.            For other buildings, for instance where the boiler is set back further from the street or is located in the rear of the building, the costs will be higher and the resulting cost recovery period will be longer. 

                5.            In addition, has anyone studied whether Con Edison has the capacity to provide natural gas to all the buildings affected?  Some buildings, particularly in the older neighborhoods like Eastview and North Broadway, Con Edison gas lines in the street may need to be enlarged to provide capacity for these buildings to connect.

                6.            Some co-ops & condos, particularly older buildings in the Eastview, North Broadway & Lake Street area, are suffering from financial hardship and may lack the resources to commence and complete the conversion within the prescribed time lines.

James W. Glatthaar,

White Plains

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City of White Plains

Department of Public Safety

Youth Citizen’s Academy

Tuesday Evenings – 7:00 PM to 9 PM

June 10th through August 5, 2014

The White Plains Department of Public Safety is pleased to announce the continuation of the Public Safety Citizen’s Academy. This special and exciting nine-week program is intended for the young residents of the City of White Plains who want to learn more about the White Plains Public Safety Department.
Interested students are encouraged to email Lieutenant Kevin Christopher at

kchristopher@whiteplainsny.gov for further information.

Applications can be sent to Lt. Kevin Christopher, White Plains Police Department, 77 South Lexington Ave., White Plains, New York, 10601 or dropped off in person to Lt. Christopher. All correspondence with students will be “copied” via email to parents, including records check.

The Youth Citizens Police Academy is geared towards rising 9th through 12th grade students.

Applicants must be White Plains residents who are in good standing at their respective schools.

Offered FREE of charge, this hands-on, interactive, behind-the-scenes program is taught by experienced police officers and firefighters.

This Youth Citizen’s Academy will include an opportunity for a two hour ride along with experienced police officers while on patrol. After the class has been completed, a graduation ceremony is held to recognize each participant. This year’s graduation will take place on August 5^th, 2014, at our City Of White Plains National Night Out Event.

The concept of the Youth Citizen’s Academy involves opening up the White Plains Public Safety Department to the youth of our city. The young citizens will see exactly what we do and how we do it. As a result, graduates are better equipped to assess safety issues, and share with others their knowledge of law enforcement practices and policies. It is our hope that graduates will find the Public Safety professions as a possible career choice and contemplate joining the ranks of the White Plains Public Safety Department.

Given our commitment to the community and proactive problem-solving, we see the Youth Citizen’s Academy as an effective way of bringing police officers, fire fighters, and our young residents together in an informal, educational forum.

The benefits of such a partnership can only help strengthen the entire community in terms of public safety and quality of life. Classes will be held every Tuesday evening from 7:00 PM to 9:00 PM.

Topics covered in Two Hour classes will include:

• History of Law Enforcement – Penal Law – Criminal Procedure Law – V&T
• CID – Criminal Investigation Division
• The Traffic Division
• The Patrol Division
• The Community Advocacy Strategic Initiatives Division
• Ambulance – Life Support Services
• The Driving While Under the Influence Arrest
• Criminal Law – Penal Law and Criminal Procedure Law
• The Fire Department
• COMPSTAT
• Tour of Firing Range
• Ride-a-long with patrol officer

Interested students are encouraged to email Lieutenant Kevin Christopher at kchristopher@whiteplainsny.gov for further information.

Applications can be sent to Lt. Kevin Christopher, White Plains Police Department, 77 South Lexington Ave., White Plains, New York, 10601 or dropped off in person to Lt. Christopher. All correspondence with students will be “copied” via email to parents, including records check.