THE WORLD READS WHITE PLAINS CITIZENETREPORTER — 8,324,077 VISITS IN ONE YEAR | 2,905,611 VISITORS VISIT 8,324,077 TIMES 3 TIMES EVERY DAY IN ONE YEAR. HIGHEST ACTIVITY IN WPCNR HISTORY.White PlainsCitizeNetReporter lifted its worldwide visits from unique visitors to wpcnr.com to 8,324,077,a 1,306,419 increase in visits in one year from 7,017,658 visits to the site last year which covers White Plains and Westchester County. The 8,324,077 visits were made by 2,005,611 unique visitors who visited wpcnr an average of 3 visits a day. ON JULY 20- -2026 visitors have accessed wpcnr and made 3,072 visits an average of 1.6 visits. In the last week 33,495 individual vistors made 54,458 visits, averaging 1.6 visits. In the last month, 152,940 visitors recorded 229,338 visits (1.5 visits)

Realtor Indicted in Alleged $50 Million Fraud on Big Name Banks

Posted on August 19, 2011 by John Bailey

WPCNR FBI WIRE. From the Federal Bureau of Investigation. August 19, 2011:

A federal grand jury in Brooklyn has returned an indictment charging the defendant Edul Ahmad with participating in a mortgage fraud scheme in which he and others fraudulently obtained more than $50 million in loans.

The indictment alleges the defendant conspired to defraud financial institutions, including Bank of New York, JP Morgan Chase, Citibank, N.A., Countrywide Financial, Flushing Savings Bank, Fremont Investment and Loan, HSBC Bank USA, N.A., IndyMac Bank, One West Bank, U.S. Bank, and Wells Fargo & Company, and wholesale mortgage lenders, including New Century Mortgage Corporation and Ocwen Financial Corporation.

Ahmad is charged with one count of conspiracy to commit bank and wire fraud and 10 counts of bank fraud.¹

The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Janice K. Fedarcyk, Assistant Director in Charge of the Federal Bureau of Investigation, New York Field Office; and Jon T. Rymer, Inspector General, Federal Deposit Insurance Corporation. The defendant’s arraignment was scheduled late Friday before United States Magistrate Judge Andrew L. Carter, Jr., at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York. The case has been assigned to United States District Judge Dora L. Irizarry.

As detailed in the indictment, from 1995 to 2009, Ahmad was a licensed real estate broker in the state of New York and also acted as a loan officer. As part of the alleged scheme, the defendant submitted false loan applications and supporting documents to make borrowers of mortgage loans appear to be more creditworthy than they actually were. The defendant did that in order to profit from real estate commissions and loan fees generated by the transactions.

Additionally, at the closings, Ahmad prepared and submitted documents that falsely misrepresented whether the borrowers actually made any payments to the sellers and understated the amounts of Ahmad’s real estate commissions and loan fees. In doing so, Ahmad prevented the financial institutions from discovering that his fees exceeded those permitted by the institutions. Many of the homes involved were ultimately lost in foreclosures because the borrowers could not afford to make their mortgage payments.

“Mortgage loans allow millions of Americans to turn the dream of home ownership into reality,” stated United States Attorney Lynch. “The system must be based on the accuracy of its information and the integrity of its members. The defendant allegedly brought neither to the table, abusing the trust of the financial institutions who relied upon him. We will vigorously prosecute licensed professionals who abuse their positions and harm our communities by undermining financial and real estate markets through mortgage fraud.”

FBI Assistant Director in Charge Fedarcyk stated, “By repeatedly filing false mortgage applications, Ahmad allegedly committed serial bank fraud. Such falsehoods are not merely lies, they were the modus operandi in essentially stealing almost $50 million. The FBI remains committed to investigating mortgage fraud.”

FDIC Inspector General Rymer stated, “The Federal Deposit Insurance Corporation, Office of Inspector General (OIG), is pleased to join our law enforcement colleagues in announcing the indictment of Mr. Ahmad for his alleged role in this multi-million dollar bank fraud. It is especially important to investigate and prosecute cases where trusted professionals abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing such threats to the safety and soundness of FDIC-insured banks throughout the country.”

If convicted, the defendant faces a maximum term of imprisonment of 30 years. The indictment also seeks forfeiture of the proceeds of the defendant’s bank and wire fraud activity, including a criminal forfeiture money judgment and money traceable to the offenses of conviction.

The government’s case is being prosecuted by Assistant United States Attorney Alexander A. Solomon.

County Exec Vetoes Children’s Museum Lease. Group Underfunded He Says.

Posted on August 19, 2011 by John Bailey

WPCNR COUNTY CLARION-LEDGER. From Westchester County Department of Communications. (EDITED)

County Executive Robert P. Astorino today vetoed a plan to lease space at Playland to the Westchester Children’s Museum, saying the lease was based on questionable finances and was at best premature, since a process is underway to determine Playland’s future.

The action came despite a unanimous vote by the Board of Legislators to approve the lease and with that the probability that Astorino’s veto will be overridden.

The Children’s Museum, which has yet to open, Astorino said (in a news release Friday), has no financial or operational track record. Its most recent IRS filing indicates that it has net assets of $2,365,116 – only 37 percent of the $6,441,300 cited in the lease agreement as being available to undertake the required capital improvement. Upon opening, the museum would face strong competition from the six other children’s museums that are within 42 miles of Playland.

“I was elected to do what I believe is right, not only what is popular,” Astorino said. “My issue is not with the idea of a children’s museum. My issues are the timing of the lease and protecting the financial interests of the county’s taxpayers. In today’s economic climate, when our county government is being forced to make extremely difficult budget decisions to maintain essential services, programs must be more than well intentioned to earn taxpayer support.”

The county executive, in his veto message, stressed his appreciation for the concept of a children’s museum and his respect for the efforts of the all the people trying to launch the not-for-profit Westchester Children’s Museum. But he felt compelled to veto the legislation for the following reasons:

· The need to protect the taxpayers of Westchester.

The notion that the annual rent of $1 is adequate compensation to county taxpayers because the Children’s Museum will be making $6.4 million in capital improvements to the building has not been tested against the market value of the property.

In addition, it appears almost certain that the final cost of the renovations to the building will be more than projected by the legislators and the prior administration. For example, the $2 million cost of moving an existing sewer line, which traverses under the property, was not factored into earlier estimates and would have to be paid for by taxpayers.

“Valuable beachfront property, which has been refurbished at great taxpayer expense and whose final cost is not yet known, should not be given away without a competitive process to ensure that taxpayers are receiving a fair price for a county asset,” Astorino said.

Passage of the legislation was premature.

The RFP (“request for proposals”) process, initiated by Astorino to determine the long-term future of Playland, is still underway. The county is in the second stage of a multi-stage process and is awaiting a feasibility report by a 19-member citizens committee on 12 proposals, which is due next month.

“It is reckless and not in the best interest of the county or the museum to contemplate a long-term lease with any tenant until the RFP process is complete and a plan for the long-term viability of the park has been established,” Astorino said.

Attorney Gets 3 Years for Insider Trading

Posted on August 19, 2011 by John Bailey

WPCNR FBI WIRE. From the Federal Bureau of Investigation. August 19, 2011:

PREET BHARARA, the United States Attorney for the Southern District of New York, announced that attorney JASON GOLDFARB was sentenced today in Manhattan federal court to three years in prison for his participation in an insider trading scheme in which he gave material, nonpublic information (“Inside Information“) that had been misappropriated from the law firm of Ropes & Gray to ZVI GOFFER for the purpose of securities trading. GOLDFARB pled guilty to one count of conspiracy and one count of securities fraud on April 21, 2011. U.S. District Judge RICHARD J. SULLIVAN imposed today’s sentence.

According to the charging documents and court proceedings in this case:

In 2007 and 2008, ARTHUR CUTILLO and BRIEN SANTARLAS, who were working as attorneys at Ropes & Gray, provided GOLDFARB with Inside Information about several mergers and acquisitions of public companies for which Ropes & Gray was providing legal services. GOLDFARB, in turn, delivered the Inside Information to GOFFER, a former hedge fund manager. GOFFER then executed securities transactions based on the Inside Information and passed it to other people who also used it to execute securities transactions.

The Inside Information included information regarding the potential acquisition of 3Com Corporation (“3Com“) and the potential acquisition of Axcan Pharma, Inc. (“Axcan“). In exchange for providing GOFFER the Inside Information, GOLDFARB, CUTILLO, and SANTARLAS received cash payments.

* * *

In addition to the prison term, Judge SULLIVAN sentenced GOLDFARB, 33, of New York, New York, to three years of supervised release. GOLDFARB was ordered to pay a $32,500 fine and a $200 special assessment fee. Judge SULLIVAN also imposed an order of forfeiture for $1,103,131, representing the amount of foreseeable proceeds obtained as a result of the securities fraud offenses.

GOLDFARB’s co-defendant CUTILLO and co-conspirator SANTARLAS previously pled guilty to conspiracy and securities fraud charges in connection with this scheme. Co-defendant ZVI GOFFER was convicted after a one month jury trial of conspiracy and securities fraud charges in connection with this scheme.

CUTILLO was sentenced to 30 months in prison; ZVI GOFFER’s sentencing is scheduled for September 21, 2011, at 2:00 p.m.; and SANTARLAS’s sentencing is scheduled for October 28, 2011, at 2:30 p.m.

Mr. BHARARA praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission for its assistance with the investigation.

This case was brought in coordination with President BARACK OBAMA’s Financial Fraud Enforcement Task Force, on which Mr. BHARARA serves as a co-chair of the Securities and Commodities Fraud Working Group. President OBAMA established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Assistant U.S. Attorneys ANDREW FISH, REED BRODSKY, and RICHARD TARLOWE are in charge of the prosecution.

Police Website Reports Key Bank Robbed. Emergencies Will Be Announced on Site.

Posted on August 19, 2011 by John Bailey

WPCNR POLICE GAZETTE. From White Plains Public Safety Website, www.wppublicsafety.com . August 19, 2011 UPDATED 3:31 P.M. E.D.T.:

The new White Plains Public Safety website reported Thursday that Key Bank, 188 East Post Road was robbed approximately 4 P.M.Tuesday by a suspect wearing a red bandanna, a New York Yankees Cap, long-sleeved blue shirt. The suspect had been seen on video lingering in the bank lobby 3 to 5 minutes prior to the incident, the site says. No one was hurt during the robbery. No weapon was displayed.

To view a video and see a picture of the suspect, go to www.wppublicsafety.com . Anyone with information on the suspect, may contact the police on condition of anonymity by calling 914-422-6217 or 914-422-6223.

Viewers can also access crime statistics in the city through last week and keep track of upcoming public safety events.

Commissioner of Public Safety David Chong told WPCNR the newly redesigned website will be used to inform citizens in timely fashion on police activity:

“We want to update the website at least weekly and sometimes daily if we need information to get out. This was one of my goals when I came here: a transparent and easily user-friendly accessible department.”

Commissioner Chong elaborated:

“We intend that both Police and Fire will update the site regularly. This us a working project so we will adjust as we go along. We plan to put crime and fire safety prevention tips, wanted/lost persons, open crimes that we want the public’s help, current events, emergency notifications, known street closures, interesting arrests on the site.

“People should check in regularly for interesting public safety news.

“In an emergency, we will attempt to use the site for immediate notifications.

“We are very excited about the way the users can request certain police reports without coming into the public safety building. That convenience and ease is part of Mayor Tom Roach’s commitment to simplicity and ease of government.”