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. September 21, 2011:

A motion was filed Tuesday amending the forfeiture and civil money laundering complaint in the matter of United States v. PokerStars et. al, announced Preet Bharara, U.S. Attorney for the Southern District of New York.

The proposed amended complaint alleges that Full Tilt Poker and its board of directors, including Raymond Bitar, Howard Lederer, Christopher Ferguson, and Rafael Furst, defrauded players by misrepresenting that their funds on deposit in online gambling accounts were safe, secure and available for withdrawal at any time.

In reality,the motion alleges,  Full Tilt Poker did not maintain funds sufficient to repay all players, and in addition, the company used player funds to pay board members and other owners more than $440 million since April 2007. On April 15, 2011, the U.S. Attorney’s Office for the Southern District of New York filed the original complaint against Full Tilt and two other Internet poker companies and unsealed a criminal indictment charging 11 defendants, including Bitar, with bank fraud, illegal gambling, and money laundering offenses.

“As the proposed amended complaint describes in detail, Full Tilt was not a legitimate poker company, but a global Ponzi scheme,” said U.S. Attorney Bharara.

“As a result of our enforcement actions, this alleged self-dealing scheme came to light. Not only did the firm orchestrate a massive fraud against the U.S. banking system, as previously alleged, Full Tilt also cheated and abused its own players to the tune of hundreds of millions of dollars. As described, Full Tilt insiders lined their own pockets with funds picked from the pockets of their most loyal customers while blithely lying to both players and the public alike about the safety and security of the money deposited with the company.”

As alleged in the proposed amended complaint, on several occasions in 2008 and 2009 through e-mails to players and postings on online poker message boards, Full Tilt Poker and its representatives assured players that their money was segregated, safe, and secure. For example, in response to inquiries, Full Tilt Poker sent e-mails to players in May 2008 assuring them that their funds were secure. One of those e-mails read, in part:

“To protect both our players and business from financial problems, all player account funds are segregated and held separately from our operating accounts. Unlike some companies in our industry, we completely understand and accept that your account money belongs to you, not Full Tilt Poker.”

As alleged in the proposed amended complaint, despite these repeated assurances to players, the company did not have enough funds to repay players. By March 31, 2011, Full Tilt Poker owed approximately $390 million to players around the world, including approximately $150 million to U.S. players. However, the company had only approximately $60 million in its bank accounts. Furthermore, as alleged in the proposed amended complaint, the company used player funds to pay its board of directors and other owners.

Between April 2007 and April 2011, Full Tilt Poker and its board distributed $443,860,529.89 to board members and owners. Bitar received approximately $41 million, Lederer received approximately $42 million, and Furst received approximately $11.7 million. Ferguson was allocated approximately $87,486,182.87 in distributions, and received at least $25 million, with the remaining balance characterized as “owed” to him. Much of the money that was distributed was transferred by the board members and owners to accounts in Switzerland and other overseas locations.

In addition to its failure to segregate funds and its constant stream of distributions to owners, the proposed amended complaint alleges that the company faced a growing shortfall in 2010 related to its inability to collect funds from U.S. players, a fact which it did not disclose to players.

Beginning in August 2010, Full Tilt Poker’s payment processing network in the United States was so disrupted that the company often could not withdraw money from U.S. players’ bank accounts in order to fund credits to their online gambling accounts. In order to maintain its false image of financial security, Full Tilt continued to credit player accounts without disclosing its inability to fund those credits.

Ultimately, the company credited approximately $130 million to players’ online gambling accounts that it never actually withdrew from their bank accounts. When players gambled with these phantom funds and lost to other players, a massive shortfall developed.

The proposed amended complaint alleges that this scheme continued even after the original complaint was filed and the criminal indictment unsealed in April 2011. Full Tilt Poker continued to accept foreign player funds, despite the fact that it had liabilities to players around the world for more than $300 million and held only a small fraction of that amount in its bank accounts.

As alleged in the proposed amended complaint, in early June 2011, Lederer reported to others at Full Tilt Poker that there was only approximately $6 million left, and therefore no realistic ability to repay its new depositors. Similarly, in an internal e-mail dated June 12, 2011, Bitar worried about a “run on the bank” by Full Tilt Poker customers, and admitted that “at this point we can’t even take a five million run.”

In addition to the forfeiture and civil money laundering penalties sought in the original complaint, the proposed amended complaint seeks the forfeiture of the dividends received by Bitar, Lederer, Ferguson, and Furst, as well as money laundering penalties against these individuals in the same amount.

U.S. Attorney Bharara praised the FBI for its outstanding leadership in the investigation, which he noted is ongoing.

The matters announced Tuesday are being handled by the U.S. Attorney’s Office’s Asset Forfeiture and Complex Frauds units. Assistant U.S. Attorneys Sharon Cohen Levin, Michael D. Lockard and Jason H. Cowley are in charge of the civil money laundering and forfeiture action, and Assistant U.S. Attorneys Arlo Devlin-Brown, Nicole Friedlander and Niketh Velamoor are in charge of the criminal case.

The allegations contained in the proposed amended complaint are merely accusations.

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WPCNR SCHOOL DAYS. From Michele Schoenfeld. September 19, 2011:

Eight White Plains High School seniors were named Semifinalists in the 2012 National Merit  Scholarship Competition.  The students are:  Matthew Africano, Aneesh Bhattacharya, Emmett Caruso, Isabelle Daly, Adam Jaffe, Jens Sannerud, Eric Smiley and Benjamin Van Doren.

Approximately 16,000 Semifinalists were named nationally — less than one percent of U. S. high school seniors — who will continue in the competition to advance to Finalist level and compete  for about 8,300 scholarships worth more than $34 million.  The program honors individual students  who show exceptional academic ability and potential for success in rigorous college studies.

            National Merit Scholarship Corporation, a not-for-profit organization, was established in 1955  specifically to conduct the annual National Merit Program, to honor the nation’s scholastic  champions and encourage the pursuit of academic excellence.  Finalists will be announced in February and scholarship winners will be named in the spring.

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WPCNR CAMPAIGN 2011. By John F. Bailey. September 19,2011:  

Last Tuesday evening at the Council of Neighborhood Associations, the campaign for the District 5 County Legislator Seat began with a debate between the incumbent Bill Ryan of White Plains and Dr. Iris Pagan, also of White Plains.

Bill Ryan and Iris Pagan prior to the bell in the first round of their campaign for the County Legislator District 5 Seat last week.

Mr. Ryan said legislators are working in a new environment, “searching for a new normal,” citing the need to maintain service delivery and maintain the high level of constituent services.

He said he is always ready to help if a member of the district has a problem. He borrowed former County Executive Andrew Spano’s mantra that the way to cut county property taxes is by the state assuming $211 Million in mandates (12% of the County Budget). I asked him wouldn’t the state just tax us in state taxes for the money anyway, and Ryan said it was up to the state to cut mandate spending.

Dr. Pagan stated county taxes are too high.She committed to taking a hands-on approach to determining spending of all county services. She said volunteers could take up the slack of future county cuts. Ryan responded to this aggressive cost-cutting approach by saying the approach should be “nickel and dime” to keep county services fulfilling needs.

Though asked by a resident of Scarsdale how much they thought the County $1.8 Million budget should be cut, each candidate did not answer that question

Dr.Pagan attacked Mr. Ryan for supporting the HUD housing agreement requiring the county to build affordable housing in communities where minorities and zoning restrictions make it difficult for moderate income families to obtain housing. Ryan defended his support of the settlement, saying not doing so could cost the county $500 Million in fines.

Pagan shot back,  would he (Ryan) support the County Executive’s  position that HUD is trying to turn this into a segregation correction settlement?  Ryan said if any party  is attempting to alter the agreement,  he would have to weigh that. Asked by Pagan if he supported Astorino’s position, Ryan said he did not say that.

Pagan also chided Mr. Ryan for not getting the county involved in the French American School of New York purchase of Ridgeway Country Club last year.

Ryan said he had, in a public meeting  in 2010, offered to the city that he could bring the possibility of the county purchasing the Ridgeway Country Club to the Board of Legislators, or help the city purchase the club, which, in this reporter’s opinion,  lead the audience to believe the City of White Plains had officially turned county help down. 

Mr. Ryan, in that 2010 meeting which took place October 12, 2010 at Ridgeway School, told the gathering, according to the WPCNR report,

Ryan reminisced that in 2009, he had urged the county to “model this out to see if it made any sense to add it  to the county’s golf courses.” He said the county should revisit it, but cautioned, “Clearly the county is not in the (financial) position.”

(To read the WPCNR Report of that October 12, 2010 meeting, go to

http://www.whiteplainscnr.com/article8309.html

Asked about this unclear situation, Karen Pasquale Senior Advisor to Mayor Roach in a statement to WPCNR, wrote “The county has never approached the city about this. Whether they approached Ridgeway is something you would need to ask them directly.”

The HUD Settlement, FASNY wishy-washy positions, and Mr. Ryan’s willingness to cut expenses were Dr. Pagan’s key attacks.

On the Playland management situation, Pagan criticised Ryan for approving a lease with a children’s museum before responses to RFPs had been vetted and finalist(s) picked. Ryan said the childrens museum had been in the original Request for Proposal. Ryan, in one of the few commitments either candidate made Tuesday night, said Playland would be preserved and functional under any new finalist the County selections. Ryan is Chair of the Board of Legislators Recreation & Parks Committee.

Ryan at least four times cited his long experience as Chair of the Board of Legislators—and articulated in detail the complexities involved in shoot-from-the-hip budget cutting and policy making. His deft verbal juggling and jousting gave the impression of careful consideration and maturity in dealing with the issues with the audience not really knowing exactly what he would do on the issues.

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WPCNR QUILL & EYESHADE. From the New York State Department of Taxation and Finance. September 17, 2011:

The White Plains economy moved slightly ahead of last year in August with a  “real money” 2.7% increase in city sales tax receipts on a pace with Westchester County’s overall sales tax generation.  

The new city fiscal year 2011-12 sales tax percentages of gain or loss is no longer artificially “rosy” inflated as it was last fiscal year  by a higher city sales tax rate that remains the same as the fiscal year ended in June. The gains, 5% in July and 2.7% in August are modest but reassuring, though the June city sales tax receipts handle, (last month of the last fiscal year) was a robust $4,980,977, about a million dollars more than the July and August receipts.

In August, the NYS Department of Taxation and Finance says White Plains earned $3,873,937.31 in sales tax receipts compared to $3,772,094.34 last year, reflecting perhaps the openings of new restaurants, and new retail firms of Dick’s Sporting Goods and Raymour & Flanagan, as well as preparations for Hurricane Irene.

The city has received $11,674,863 in sales the first two months of the year,

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WPCNR FBI WIRE. From the Federal Bureau of Investigation. September 15, 2011:

The FBI announced Tuesday the unsealing of a 32-count superseding indictment charging 20 members and associates of the Bloods gang in Newburgh, New York, (the “Newburgh Bloods”), including members of a related crack-cocaine dealing conspiracy, with racketeering, narcotics, robbery, and firearms offenses. The superseding indictment charges members and associates of the gang with, among other crimes, two murders; six armed assaults and/or attempted murders; and the use, carrying, and possession of firearms.

Manhattan U.S. Attorney PREET BHARARA stated: “The elimination of the Bloods, Latin Kings, and other violent gangs is an absolute precondition to the sustainable prosperity and sustainable justice that residents of every American city deserve. Our work is not finished, but our work to date has been significant. We are holding people accountable; we are gutting the gangs that once roamed free; and we are bringing back the rule of law in Newburgh. Wherever you live in America, you have a right to live in peace and in safety.”

According to the original and superseding indictments filed in Manhattan federal court:

The original indictment, United States v. Anthony Boykin, et al., 10 Cr. 391 (CM), unsealed on May 13, 2010, charged 60 defendants with drug distribution offenses, many of whom were part of the Newburgh Bloods. The superseding indictment includes charges against 20 individuals–-11 new defendants and nine defendants from the original indictment. All of these defendants were either members of the Newburgh Bloods or associated with the gang through their participation in a crack cocaine trafficking conspiracy.

The superseding indictment is the latest result of a long-term investigation, dubbed “Operation Blood Drive,” conducted by federal and local law enforcement officers working with the United States Attorney’s Office. The operation used confidential informants, undercover officers, and surreptitious surveillance to infiltrate the Newburgh Bloods’ violent and drug trafficking activities in Newburgh, New York.

The Superseding Indictment

Specifically, at all times relevant to the indictment, a criminal organization known as the “Bloods” was operating in Newburgh, New York. The Bloods is a nationwide criminal organization that is organized into sub-groups known as “sets.”

Among the sets operating in Newburgh, New York, were the “Bounty Hunter Bloods,” “G-Shine,” “5-9 Brim,” “Stone,” and the “9 Trey Bloods.” Members often further identified themselves by the street on which they grew up or lived. Although members of the Newburgh Bloods belonged to different sets, these individuals and sets often coordinated, collaborated, and worked together and with each other as a single organization.

Within sets of the Newburgh Bloods, certain individuals had “rank,” which meant that they were among the leaders of their sets. For example, ANTHONY BOYKIN had rank in the Bounty Hunter Bloods set. Any member of the Newburgh Bloods with rank had certain authority over any other member of the gang, irrespective of set. For example, Newburgh Bloods with rank could call meetings of all the Newburgh Bloods for which attendance was mandatory.

 At these meetings, members discussed, among other things, their criminal activities. Members of the Newburgh Bloods with rank could also direct punishments against other members or against non-members. Some of these punishments required individuals to be assaulted or killed.

The superseding indictment charges that the Newburgh Bloods Gang was a racketeering enterprise, pursuant to the Racketeer Influenced and Corrupt Organizations (“RICO”) Act, the purposes of which included the distribution and sale of crack cocaine, and preserving and protecting the power, territory, and profits of the Newburgh Bloods through murder, attempted murder, other acts of violence, and threats of violence. Fifteen defendants are charged with participating in the racketeering enterprise. The Indictment alleges that members of the Newburgh Bloods committed and attempted to commit violent acts in aid of the enterprise, including:

• ANTHONY BOYKIN, CHARLES BYRD, and MAURICE HAGAN are charged with conspiracy to murder and attempted murder of a victim in the vicinity of 25 Lutheran Street in Newburgh, New York, on August 24, 2008.

• ANTHONY BOYKIN, CHARLES CORBIN, TAYLOR FIELDS, MAURICE HAGAN, ROBERT HERRING, and RAHSAAN MELVIN are charged with conspiracy to murder and attempted murder of a second victim in the vicinity of 191 Chambers Street in Newburgh, New York, on September 20, 2008.

• MARCO BOYKIN, CHARLES BYRD, CHARLES CORBIN, ROBERT HERRING, and DAVID JACKLYN are charged with conspiracy to murder and attempted murder of a third victim in the vicinity of 52 Benkard Avenue in Newburgh, New York, on October 5, 2008.

• JOHN NELSON and DANIELLE WILLIAMS are charged with conspiracy to murder and attempted murder of a fourth victim in Newburgh, New York, York, on January 31, 2009.

• ANTHONY BOYKIN, MARCO BOYKIN, and ANTWAN ROBINSON are charged with conspiracy to murder and murder of Lamont Young in the vicinity of Lander Street and First Street in Newburgh, New York, on March 4, 2009.

• ANTHONY BOYKIN, MARCO BOYKIN, JOHN CANADAY, CHARLES CORBIN, TAYLOR FIELDS, MAURICE HAGAN, ROBERT HERRING, JOSEPH McLEAN, and JUSTIN SIMMONS are charged with conspiracy to murder and murder of Tyrik Legette in the vicinity of 156 Lander Street in Newburgh, New York, on April 30, 2009.

• JOHN CANADAY, TAYLOR FIELDS, and ANTWAN ROBINSON are charged with conspiracy to rob and robbery of a suspected narcotics dealer in the vicinity of Chambers Street and First Street, Newburgh, New York, on June 2, 2009.

• JUSTIN SIMMONS is charged with committing an assault in aid of racketeering by shooting a victim in the vicinity of 146 Lander Street in Newburgh, New York, on July 17, 2009.

• JOSEPH McLEAN and RAHSAAN MELVIN are charged with committing an assault in aid of racketeering by shooting a victim in the vicinity of Lander Street between Farrington and South Streets in Newburgh, New York, on March 10, 2010.

All 20 defendants are also charged with conspiring to distribute narcotics, and 17 are charged with using, carrying, and possessing firearms during and in relation to the narcotics conspiracy.

The Newburgh Bloods operated drug markets at certain locations in Newburgh, from which they distributed cocaine base, commonly known as “crack,” among other drugs. In particular, the gang controlled drug markets in the vicinity of the following locations, among others, in Newburgh: South Miller Street, Lander Street (a portion of which is known as “Blood Alley”), Farrington Street, Lutheran Street, and Van Ness Street. All of these locations were within approximately ten blocks of one another. During and in relation to the drug distribution conspiracy, members of the Newburgh Bloods used, carried, and possessed firearms.

* * *

In a coordinated strike earlier Tuesday, officers and agents from the Hudson Valley Safe Streets Task Force arrested 12 defendants. Eight additional defendants were previously arrested. The defendants who were taken into custody today are expected to be presented in Manhattan federal court later this afternoon. The case is assigned to U.S. District Judge COLLEEN McMAHON.

Mr. BHARARA praised the outstanding investigative work of the FBI, the New York State Police, Newburgh Police Department, the Orange County District Attorney’s Office, and the Orange County Sheriff’s Office. He also thanked the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the New York State Department of Corrections and Community Supervision, the Police Department for the Town of Newburgh, and the Port Jervis Police Department for their assistance with this case. Mr. BHARARA added that the investigation is continuing.

The case is being handled by the Office’s Violent Crimes Unit Assistant United States Attorneys MICHAEL D. MAIMIN, AMIE N. ELY, and HARRIS FISCHMAN are in charge of the prosecution.

The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

New York State Police Troop “F” Commander MAJ. EDWARD RASO stated: “This operation is another example of the outstanding work being conducted by the Hudson Valley Safe Streets Task Force. It is law enforcement at its finest; working as a team to take violent criminals off our streets.”

City of Newburgh Police Chief MICHAEL FERRARA stated: “I want to thank the supporting law enforcement agencies for their tremendous assistance in this comprehensive, criminal investigation, led by the United States Attorneys Office for the Southern District of New York and the FBI Safe Streets Task Force. These arrests have focused on the street violence that is associated with the narcotics trafficking that stifles every day life and is a major driving force in the abnormal crime rate of the City of Newburgh. Unless gang related criminal activity is confronted with a relentless, persistent and effective enforcement such as this, a heightened crime rate in every category will continue in Newburgh. Because the City of Newburgh Police Department’s sworn officer count was stretched very thin in 2011, this investigation and its resulting charges are imperative to the public safety of the neighborhoods in the City of Newburgh.”

Orange County District Attorney’s FRANK PHILLIPS stated: “I want to thank the U.S. Attorney for his continued commitment to fighting crime in Orange County. Today’s arrests and indictments have solved at least two more homicides. These cases could not be prosecuted under New York law. I also want to thank the many members of local, state, and federal law enforcement for their work in making our community a safer place.”

Orange County Sheriff CARL E. DuBOIS stated: “This office remains committed to partnering with the Hudson Valley Safe Streets Task Force, with an emphasis on the Sheriff’s Office Gang Intelligence Unit, which is one of the largest repositories of gang intelligence files in the region. Compiling and sharing this information with other law enforcement agencies, especially the FBI, is a critical component in past, present, and future enforcement efforts.”

PREET BHARARA, the United States Attorney for the Southern District of New York; JANICE K. FEDARCYK, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”); MAJ. EDWARD RASO, Troop “F” Commander for the New York State Police (“NYSP”); MICHAEL FERRARA, the Chief of Police for the City of Newburgh Police Department; FRANK PHILLIPS, the District Attorney for the Orange County District Attorney’s Office; and CARL E. DuBOIS, the Sheriff for the Orange County Sheriff’s Office, announced the indictment.