Upper Saddle River NJ, On the one-month anniversary of the infamous discovery of the pumping of runoff consisting of a suspension of carcinogenic toxic soil by Toll Brothers directly into Pleasant Brook—a practice that has been apparently ongoing now for more than four consecutive months—at 6:19 PM tonight GreenUSR Attorney Gart Molander received the following text message from the NJ DEP:
“I work for the NJ DEP and have no information on what the locals did or how they have handled this issue. Today is the first time my office (Bureau of Emergency Response) was notified of this ongoing issue. As mentioned, I am sending someone from the County to investigate. They will advise me if there is any action necessary by the State. Thanks“
Apparently neither Mayor Minichetti, her Council, the Borough Administrator, nor Boswell Engineering deemed it necessary to report these ongoing erosion control problems, including the pumping of muddy runoff containing high levels of arsenic and lead directly into our precious waterways, from the biggest construction site in the history of Upper Saddle River to the NJ DEP Emergency Management Program.
We are now on the NJ DEP’s radar screen and let’s hope that finally reasonable minds will prevail to shut down this unprecedented environmental disaster.
Upper Saddle River NJ, Latest update from Toll Brothers site tonight. According to immediate neighbor of Toll Brother they were pumping mud all day today (Sunday, May 20, 2018). After documented Thursday (May 17 mud discharge) Pleasant Brook was starting to clear up this morning but and now it’s FULL of MUD again at 9:30pm .
At this point we don’t care if Toll Brothers is discharging this mud intentionally or that they simply can’t cope with the amount of storm water gushing from 100 plus acres of soil which was contaminated with high level of arsenic and lead.
Allegedly the soil was tilled with huge bulldozers – tillers and now it’s considered “remediated”. However no soil was removed from the site just spread around. Now the question remains what happens with that arsenic and lead after 5 months of being discharged (intentionally or unintentionally) to Upper Saddle River aquafire? So far not one water test was produced by neither Toll Brothers, Boswell engineers or our famous building director James Dougherty. Police officers called to the scene advised me that they were advised not to touch anything which might came in contact with that water due to alleged arsenic and lead contamination. If it’s bad for police officers how on earth can it be safe for GreenUSR residents. Since GreenUSR members lost confidence in ability of our local government to handle this situation we will be asking feds for assistance.
Wyckoff NJ, The Assembly Environment committee passed legislation today preventing public pension funds from investing in companies that are not meeting Superfund cleanup obligations. Corporations that file bankruptcy to avoid paying for environmental remediation are targeted by Assemblyman Kevin J. Rooney’s bill (R40) (A997).
The Superfund program is administered by the U.S. Environmental Protection Agency (EPA) in cooperation with individual states. In New Jersey, the Department of Environmental Protection’s (NJDEP) Site Remediation Program oversees the Superfund program. As of 10 March 2016, there are 105 Superfund sites listed on the National Priorities List (NPL). Thirty-six additional sites have been cleaned up and deleted from the list.
Rooney said ,“We cannot allow companies to benefit from state investment while they are walking away from an environmental disaster,” said Rooney (R-Bergen). “This bill sends a clear message that irresponsible behavior and dubious tactics will not be tolerated. We will hold them accountable for poisoning our environment.”
A previous version of the bill (A4814) was unanimously approved by the Assembly and the Senate during the previous legislative session, but Gov. Chris Christie did not sign it.
Rooney drafted the measure after an American-based subsidiary of an Argentinian company declared bankruptcy to avoid paying $1.4 billion to remediate a heavily polluted stretch of the Passaic River. The Diamond Alkali Company, now known as Maxus Energy, owned and operated a facility in Newark manufacturing agricultural chemicals including Agent Orange and DDT. Over decades, chemicals were dumped into the river in what is now a Superfund site.
“This negligence had a devastating effect on the environment,” said Rooney. “Hundreds of thousands of gallons of dioxin were recklessly poured into the water. The poison is incredibly toxic and can take decades to degrade naturally.”
The parent company of YPF SA intentionally placed their subsidiary into bankruptcy just months after the Environmental Protection Agency announced a cleanup plan.
“These actions set a dangerous precedent,” continued Rooney. “New Jerseyans cannot be expected to clean messes made by those exploiting our system. Our state cannot afford it, and neither can our environment.”
The New Jersey pension fund owns more than 860,000 shares of YPF, valued at approximately $18 million.
The site is one of the most polluted stretches of water in the nation, and eating fish and crabs from the area is prohibited. The remediation plan is considered the one of costliest and most extensive projects ever undertaken.
The Senate approved the legislation in February.
Kevin J. Rooney represents the 40th Legislative District in the New Jersey General Assembly. Rooney was born in Paterson, New Jersey. He is a lifelong Bergen County resident and grew up in Upper Saddle River. He graduated from Northern Highlands Regional High School in Allendale, New Jersey, and attended Ramapo College for Business and Cook College of Rutgers University for arboriculture.
Upper Saddle River Nj, In the spirit of the below Toll Brothers settlement GreenUSR member accompanied by his lawyer Garth Molander, Esq. filed criminal complaint against Toll Brothers with the local prosecutor‘s office for alleged intentional discharging storm water into Pleasant Brook and dumping remediated arsenic and lead sediment into local waterways. Instead of following the above settlement agreement Toll Brothers recklessly dumped heavy mud for four consecutive months and didn’t take any precautions to protect our beloved GreenUSR environment.
“EPA estimates the settlement will prevent millions of pounds of sediment from entering U.S. waterways every year, including sediment that would otherwise enter the Chesapeake Bay, North America’s largest and most biologically diverse estuary. The bay and its tidal tributaries are threatened by pollution from a variety of sources and are overburdened with nitrogen, phosphorus and sediment that can be carried by stormwater.”
( https://www.justice.gov/opa/pr/homebuilder-toll-brothers-inc-pay-741000-clean-water-act-penalty-and-implement-company-wide ) ”
Upper Saddle River NJ, had this passed on by the Upper Saddle River Police department .
A Message from Orange and Rockland Power ,
Orange and Rockland Power: CUSTOMERS BEWARE NEW BILL PAYMENT SCAM ON FACEBOOK
PEARL RIVER, NY May 8, 2018 — O&R warned its customers today about a new phony bill-payment scheme — this time in Spanish on Facebook — in which crooks pose as “consultants” who offer to help customers pay their debts. In reality, the crooks are stealing the customers’ money.
The thieves say on Facebook that if customers wire a percentage of their “electric, cable, cell phone or any utility bill” to the scammers, the crooks will put up the difference to fully pay the bill. The example the phony post uses is if a customer’s bill is $250, the customer can wire the thief $150 and thief will cover the rest.
It looks too good to be true. That’s because it isn’t true. The scammer doesn’t cover the customer’s bill. The scammer steals the customer’s money.
To make things worse, after the customer sends the payment to the scammer, the thieves send the customer a bogus 646 phone number for the customer to call to confirm that their payment was received by the company and the bill was paid in full.
Once again, not true. No payment was made on the account. The thieves stole the customer’s money that was intended to pay the bill, the thieves had no intention of helping retire the debt and the bill still needs to be fully paid.
Don’t let this happen to you.
If you have questions about your O&R bill payment, call O&R Customer Service directly at (877) 434-4100 or email us.
Upper Saddle River NJ, Battle for Pleasant Brook continues and GreenUSR.org enters a second phase ,the Cleanup. This ”unimportant” to our local leaders environment issue has become a matter of national urgency.
Derek Michalski , “It‘s up to us to make our officials accountable for their actions and if anybody wants to digest brown water from Toll Brother‘s April 20, 2018 massive mud dump please let me know. I should have some saved in jars with appropriate labels. No one should underestimate danger of accidental digestion of arsenic and Lead. Better be save than 40 years later sorry. Last March EPA provided this warning: “Lead is a neurotoxin and increasing amounts build up in the body. Even at low levels, lead in children can lower I.Q.s, cause learning disabilities, damage hearing, reduce attention spans, and cause hyperactivity and other behavior problems. Arsenic is toxic, can damage people’s health, and can cause cancer. This cleanup reduces the potential for harm to people’s health from coming into contact with, or accidentally ingesting, soil or creek sediment contaminated with lead and arsenic”
(pictures were taken yesterday April 17 and today April 18, 2018)
April 19,2018
Derek Michalski
Upper Saddle River NJ, Three days in a row muddy waters of Pleasant Brook in Upper Saddle River and Westearly Branch Of Saddle River in the town of Saddle River continued filling various ponds between Mahwah, Upper and Saddle River with heavy mud. This topic dominated also for the third day local discussions about the potential impact of this unprecedented continuous silt/dust/mud pollution by Apple Ridge massive construction site.
The presence of heavy mud floating thorough Upper and Saddle River aquatic system in opinion of many is another piece of evidence of continuous (since December 2017) mud pollution from the site that was ordered by NJDEP to undergo remediation of arsenic and lead within the top soil rata. Consequently on January 13, 2018 Stop Work Order was issued on 100 plus acres of the so called by GreenUSR members “Arsenic Field”.
In the past the public was informed that the sediment within the stream channel was tested but nobody provided any info whether the test occurred before or after the rain. In the light of over 4 month long pollution period the author of this post publicly demands to test all three ponds within 5 mile radius of the contaminated site. Logically the tests should be done two days ago but today (April 18) the waters are still full of mud and who knows if arsenic and lead that is being the subject of remediation on the site is not present in the heavy mud imported from the site to our GreenUSR aquatic ecosystem.
If Upper and Saddle River residents want to preserve the beauty of this neighborhood and to STOP continually deteriorating values of our homes this call for action shouldn’t be ignored by our local leaders. It’s too late to stop the destruction of 1000 trees, it’s too late to stop the construction site but on the Eve of 48th Earth Day Celebration it’s not to late to test the muddy waters and to dispel the fear and suspicion in our GreenUSR communities. Please show us your leadership. Happy Earth Day GreenUSR! ?
Hackensack NJ, Acting Bergen County Prosecutor Dennis Calo announced today the results of “Operation Helping Hand 4” – the fourth phase of an innovative law enforcement and public health initiative targeting the heroin and opioid crisis in Bergen County. The initiative was led by the Bergen County Prosecutor’s Office (“BCPO”), under the direction of Acting Prosecutor Calo and Chief of Detectives Robert Anzilotti, in coordination with Bergen County Executive James J. Tedesco III and Bergen County Sheriff Michael Saudino. Held from March 12 through 16, 2018, the initiative brought together Bergen County law enforcement from 30 agencies, Recovery Specialists from Children’s Aid and Family Services, clinicians and specialists from the Bergen County Department of Health Services, Division of Addiction Services, and professionals from New Bridge Medical Center to offer help to those suffering from the disease of addiction in Bergen County.
During the initiative, 37 individuals were arrested and brought to the BCPO to be processed. After they were issued summonses, largely for heroin possession, they were offered an opportunity to speak to a Recovery Specialist – a recovering addict, who has been clean and is trained to help them find treatment. This offer of help was in addition to, not in lieu of, criminal charges.
If the individual requested help, a trained clinician from the Bergen County Division of Addiction Services assessed him/her to determine the appropriate level of care and treatment needed. The clinicians, working closely with the Recovery Specialists and representatives from New Bridge Medical Center, then made arrangements for treatment, and law enforcement transported the individual to treatment.
Of the 37 individuals arrested during Operation Helping Hand 4, 19 have so far availed themselves of the treatment option, including 12 who are currently in 5-day detox programs, mostly at New Bridge Medical Center. As those individuals complete detox, longer-term treatment options are being arranged for them and their progress is being tracked by the Recovery Specialists. For those who did not avail themselves of treatment, the Recovery Specialists remain in touch with many of them and are prepared to offer help whenever they are ready to seek it.
A multi-jurisdictional task force comprised of law enforcement officers from the following agencies, under the direction of BCPO Chief Anzilotti, participated in the initiative: Bergen County Sheriff’s Office; Bergenfield Police Department; Cliffside Park Police Department; Clifton Police Department; Dumont Police Department; East Rutherford Police Department; Englewood Police Department; Elmwood Park Police Department; Fair Lawn Police Department; Garfield Police Department; Glen Rock Police Department; Hackensack Police Department; Lyndhurst Police Department; Mahwah Police Department; Morris County Prosecutor’s Office; New Milford Police Department; Norwood Police Department; Paramus Police Department; Passaic County Prosecutor’s Office; Paterson Police Department; Port Authority of New York and New Jersey; Ridgefield Park Police Department; Saddle River Police Department; Tenafly Police Department; Union County Prosecutor’s Office; Upper Saddle River Police Department and the Westwood Police Department.
Statistics compiled by the Bergen County Prosecutor’s Office indicate an increase in opioid use and drug overdoses in Bergen County from 2016 to the present. A preliminary analysis of overdose data by the BCPO Intel Unit and Narcotics Task Force revealed the following with respect to 2017:
507 total reported overdoses, 416 of which are currently identified as heroin/opioid-related.
Of the 308 reported overdoses, 131 were fatal overdoses; 111 of those were identified as heroin/opioid-related.
325 deployments of Narcan, the overdose reversal drug, by law enforcement officers, resulting in 245 lives saved. (Note: there were many other deployments – by parents, friends, family members, EMTs and in the ER that are not accounted for in this )
Acting Prosecutor Dennis Calo stated that “Operation Helping Hand 4 is part of the Bergen County Prosecutor’s Office and Bergen County law enforcement’s continuing effort to combat the opioid epidemic and help those who are affected by it. The Operation demonstrates the close cooperation of law enforcement, County government and Bergen County social service organizations in the fight against this epidemic and the results that are possible through that cooperation. We will continue the fight.”
Acting Prosecutor Calo would like to thank the Bergen County Sheriff’s Office, the Bergen County Executive, New Bridge Medical Center, Children’s Aid and Family Services, the Bergen County Department of Health Services, Division of Addiction Services, as well as all the participating law enforcement agencies for their assistance with this initiative.
Ramsey NJ, Mayhem of sorts on Tuesday afternoon, 03/06, at the Interstate Shopping Center in Ramsey after a 4-door sedan struck an exterior support column in front of Five Below, striking a passing vehicle in the process, then mounted a curb and wiped out a traffic control sign. A parked tow truck called by police to remove the wrecked sedan was hit by another vehicle. Ramsey Police and Upper Saddle River EMS responded to the incident. All drivers and passengers refused medical aid. At least one (1) vehicle was removed from the scene by a flatbed tow truck. An additional tow truck was observed responding to the area to evaluate another vehicle involved in the crash. Damage to the shopping center structure appeared to have been cosmetic in nature only.
Glen Rock NJ, the campaign seemed to finally heat up this weekend with America’s Mayor Rudy Giuliani endorsing the GOP District 39 ticket, Senator Cardinale, Assemblyman Auth and Holly Schepisi and helping us raise additional money last night.
District 39 – (Bergen and Passaic) Bloomingdale, Closter, Demarest, Dumont, Emerson, Harrington Park, Haworth, Hillsdale, Mahwah, Montvale, Norwood, Oakland, Old Tappan, Park Ridge, Ramsey, Ringwood, River Vale, Saddle River, Upper Saddle River, Wanaque, Washington (Bergen), Westwood, Woodcliff Lake.
Giuliani also endorsed and campaigned with Kelly Greco Langschultz for NJ Senate. Kelly Landschultz of New Milford is the Republican candidate for Senate, with William Leonard of Glen Rock and Christopher B. Wolf of Saddle Brook the GOP Assembly candidates
District 38 – (Bergen and Passaic) Bergenfield, Fair Lawn, Glen Rock, Hasbrouck Heights, Hawthorne, Lodi, Maywood, New Milford, Oradell, Paramus, River Edge, Rochelle Park, Saddle Brook .
River Vale, NJ , Assemblywomen Holly Schepisi has had enough ,on Facebook she says , “Sometimes you have to fight back. When you have no platform, positions or plans, you lie about pretty much everything. This isn’t “politics” as usual. It’s intentionally and maliciously defaming someone in an effort to destroy a person’s reputation.”
Schepisi Attorney Gibbons PC Director Thomas J. Cafferty fired off a letter on behalf of the incumbent Republican Assemblywoman to the Committee to Elect Linda Schwager, Jannie Chung and Annie Hausmann.
Cafferty stated in the letter that the Democrats have published, or have caused to be published, various political advertisements containing false and defamatory statements about Schepisi, including: (1) an advertisement dated October 13, 2017, which contains fictitious quotes regarding the Sandy Hook shooting that are falsely attributed to his client; and (2) an advertisement dated October 27, 2017, which depicts images of men with machine guns and includes the statement “Auth and Schepisi have headlined events hosted by the head of a domestic terrorist militia.”
“On behalf of Ms. Schepisi, I hereby demand that you and any and all of your employees, representatives and/or agents, immediately cease and desist the publication of the above-referenced advertisements and any and all other false and defamatory statements about Ms. Schepisi,” Cafferty wrote. “I also insist that you retract the above-referenced advertisements and any and all other false and defamatory statements that you have published about Ms. Schepisi in at least as prominent a location and in the same manner as the original advertisements were published, with a copy to me.”
The attorney also warned about the sanctioning of an unprivileged, false and a defamatory statement concerning his plaintiff, communicated to a third party with the requisite level of fault and which causes damage. See Govito v. W. Jersey Health System, Inc., 332 N.J. Super. 293, 305-06 (App. Div. 2000).
“he level of fault when the statement concerns a public official or public figure, like Ms. Schepisi, is actual malice, which is the knowledge of falsity or reckless disregard for the truth,” Cafferty said. “Durando v. Nutley Sun, 209 N.J. 235, 249 (2012). In other words, the actual malice standard is satisfied when the publisher of the statement entertained serious doubts as to the truth of that statement. St. Amant v. Thompson, 390 U.S. 727, 731 (1968).”
The attorney noted that Schepisi advised the Democrats on multiple occasions that the statements contained in their advertisements are false.
“You have, however, ignored Ms. Schepisi. Consequently, you have published these advertisements with reckless disregard for the truth of the statements contained therein and with the requisite knowledge of falsity,” Cafferty wrote. “If you do not cease publication of any and all false and defamatory statements about Ms. Schepisi, I will have no choice but to advise my client of all legal remedies available to her including, without limitation, instituting a lawsuit against you.”
District 39 is Bergen and Passaic counties; Bloomingdale, Closter, Demarest, Dumont, Emerson, Harrington Park, Haworth, Hillsdale, Mahwah, Montvale, Norwood, Oakland, Old Tappan, Park Ridge, Ramsey, Ringwood, River Vale, Saddle River, Upper Saddle River, Wanaque, Washington (Bergen), Westwood, Woodcliff Lake .
River Vale NJ, assemblywomen Holly Schepisi reiterates our thoughts on tax reform and the poor position New Jersey is in being one of the highest taxed states in the nation. ” Thinking about property taxes, New Jersey and the federal property tax deduction. New Jersey residents pretty much get hosed in every way possible when it comes to taxes. Residents in the communities I represent and the other residents of Bergen County currently pay about 30 percent of the entire NJ State Budget and receive back less than 3 percent of that money. At the federal level New Jersey only gets back 74 cents for each $1 it sends to Washington, making it the lowes…t reimbursement in the country.”
“As a result of ridiculously unfair school funding formulas, our residents pay the highest property taxes in the nation. The ONLY tax relief our residents have had is the ability to deduct our property taxes from our federal tax returns. Now the US Senate has voted to eliminate this deduction. I wholeheartedly disagree with the Senate Republicans on this issue. However I also put blame at the feet of the NJ Democrats who have controlled the New Jersey legislature for 16 years and our US Senators who have been controlled by the Democrats since 1982 (other than a short several month stint by Jeff Chiesa). How and why do we have the highest property taxes in the nation? Why do we receive the least amount of funding back from the federal government? Why won’t my Bergen County colleagues on the other side of the aisle fight alongside me for fairer funding of OUR residents? We cannot continue doing things the same way in this State. It is reaching a breaking point for our working middle class and our seniors. I hear campaign slogans about suburbs having to “pay their fair share.” We pay well beyond our “fair share” and we all must stand up together and fight back while we still can.”
District 39 – (Bergen and Passaic) Bloomingdale, Closter, Demarest, Dumont, Emerson, Harrington Park, Haworth, Hillsdale, Mahwah, Montvale, Norwood, Oakland, Old Tappan, Park Ridge, Ramsey, Ringwood, River Vale, Saddle River, Upper Saddle River, Wanaque, Washington (Bergen), Westwood, Woodcliff Lake .
Old Tappan NJ, Bob is an old friend of the Ridgewood blog and he is running for Assembly in District 39. Bob never forgets he is a small business owner . Bob is somone who can fight to set the balance right against ANTI-Business , ANTI-jobs Trenton.
District 39 is (Bergen and Passaic Conties) Bloomingdale, Closter, Demarest, Dumont, Emerson, Harrington Park, Haworth, Hillsdale, Mahwah, Montvale, Norwood, Oakland, Old Tappan, Park Ridge, Ramsey, Ringwood, River Vale, Saddle River, Upper Saddle River, Wanaque, Washington (Bergen), Westwood, Woodcliff
Unlike most modern day politicians Bob entered into politics to help the everyday people of New Jersey, like himself. After graduating from New York University, Bob opened a small insurance company with my wife, Elsa. While it was prosperous at first, the state of New Jersey began to pass heavy regulations that placed a burden on insurance companies like his. After all but six of my competitors went out of business because of these new laws I realized that it was very possible that I might also lose everything I had worked so hard for. It was at that point that I decided to reach out to my friend Senator Cardinale to see if there was any way that he could help me. With a little negotiation Senator Cardinale was able to get Allstate Insurance to work with me which stopped me from having to go out of business. Through this experience, I witnessed firsthand the power of the government to both destroy and to aid.
After Senator Cardinale had helped him Bob decided to try and return the favor. Little by little, Bob started to do additional work for him until finally he became an unpaid volunteer aide for him in Trenton. After working for Senator Cardinale for 25 years a seat in the Assembly opened up; and while Bob was hesitant at first to run for office, he realized that this was my opportunity to help people, just as Senator Cardinale had helped him.
So in 2014, against all odds and very tough competition, I won a seat in the assembly. Even after all his time in the New Jersey Legislature I have kept one rule; before Bob votes on anything he must ask himself how would I feel as a taxpayer seeing my own vote? Bob is an Assemblyman because he has witnessed firsthand the power of the government to both impede and to aid, and Bob wants to ensure it will not impede again.
Tom Nobile, Staff Writer, @TomNobile Published 6:25 p.m. ET Sept. 15, 2017 | Updated 12:24 p.m. ET Sept. 16, 2017
UPPER SADDLE RIVER — An Orthodox Jewish group that erected a controversial boundary known as an eruv is suing the borough to expand it farther, arguing doing so would accommodate Jewish families living near the New York-New Jersey border.
The amended federal suit, filed Thursday, claims the borough has unlawfully threatened the constitutional, civil, and contractual rights of the Bergen Rockland Eruv Association and five Orthodox Jewish residents of Rockland County by demanding the removal of the existing eruv and refusing to allow its expansion.
New York NY, Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that CRAIG CARTON and MICHAEL WRIGHT were arrested this morning and charged with securities fraud, wire fraud, and conspiracy to commit those offenses.
As alleged, CARTON, WRIGHT, and another individual (“CC-1”) worked together to induce investors to provide them with millions of dollars, based on representations that the investor funds would be used to purchase blocks of tickets to concerts, which would then be re-sold on the secondary market. CARTON and CC-1 purportedly had access to those blocks of tickets based on agreements that CC-1 had with a company that promotes live music and entertainment events (the “Concert Promotion Company”) and that CARTON had with a company that operates two arenas in the New York metropolitan area (the “Sports and Entertainment Company”). In fact, neither the Concert Promotion Company nor the Sports and Entertainment Company had any such agreement with CARTON, WRIGHT, or CC-1, or any entity associated with them. After receiving the investor funds, CARTON, WRIGHT, and CC-1 misappropriated those funds, using them to, among other things, pay personal debts and repay prior investors as part of a Ponzi-like scheme.
CARTON and WRIGHT will be presented later today in Manhattan federal court.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Craig Carton and Michael Wright deceived investors and raised millions of dollars through misrepresentation and outright lies. Their schemes were allegedly propped up by phony contracts with two companies to purchase blocks of concert tickets, when in fact, Carton and Wright had no deals to purchase any tickets at all. As alleged, behind all the talk, the Wright and Carson show was just a sham, designed to fleece investors out of millions ultimately to be spent on payments to casinos and to pay off other personal debt.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Carton and Wright thought they could get off easy by allegedly paying off their debts with other people’s money. They then attempted to pay off investors with money that would eventually become future debt, as alleged. We see this time and time again, the rise and fall of a Ponzi scheme destined for failure. The truth is, the time will come when your luck runs out. Unfortunately for those arrested today, that time is now.”
According to the Complaint unsealed today Manhattan federal court[1]:
In the fall of 2016, CARTON, WRIGHT, and CC-1 exchanged emails and text messages regarding their existing debts. On September 5, 2016, for example, WRIGHT emailed CARTON and CC-1, “for the sake of our conversation tomorrow,” and outlined “the debt past due and due next week.” WRIGHT listed several apparent creditors, to whom he, CC-1, and/or CARTON were personally indebted for over a million dollars. WRIGHT listed eight possible options for repaying the debt, including “Run to Costa Rica, change name, and start life all over again – may not be an option.” CARTON responded to WRIGHT and CC-1, stating “don’t forget I have $1m coming tomorrow from ticket investor[.] will need to be discussed how to handle.” On September 7, 2016, CARTON emailed WRIGHT and CC-1, referenced a potential investor (“Investor-1”) in an upcoming holiday concert tour, and suggested “borrow[ing] against projected profits” on that investment.
Later in the fall of 2016, CARTON began negotiating with a hedge fund (the “Hedge Fund”) regarding a transaction in which the Hedge Fund would extend CARTON capital to finance CARTON’s purchase of event tickets, which CARTON would then re-sell at a profit. In early December 2016, CC-1 texted CARTON and WRIGHT and discussed using the Hedge Fund’s capital “to repay debts,” and not for the purchase of tickets.
The next day, December 7, 2016, CARTON emailed the Hedge Fund five agreements between (i) CC-1 and a company controlled by CC-1 (the “CC-1 Entity”) and (ii) the Concert Promotion Company. In each of the purported agreements, the Concert Promotion Company agreed to sell the CC-1 Entity up $10 million worth of tickets to different concert tours. However, as alleged, these agreements were fraudulent and had not, in fact been entered into by the Concert Promotion Company.
The following day, the Hedge Fund and CARTON executed the revolving loan agreement (the “Revolving Loan Agreement”), under which the Hedge Fund agreed to provide CARTON with up to $10 million, for the purpose of funding investments in the purchase of tickets for events. The Revolving Loan Agreement provided, in sum and substance, that the proceeds of the loan would be used only to purchase tickets pursuant to agreements for the acquisition of tickets, including the agreements with the Concert Promotion Company and for limited business expenses. The Hedge Fund would receive a share of the profits from the resale of the tickets.
The Hedge Fund then sent $700,000 to the CC-1 Entity to finance the purchase of tickets pursuant to the agreements between the CC-1 Entity and the Concert Promotion Company. CC-1, however, then sent this money to a bank account controlled by WRIGHT, who then, on December 12, sent $200,000 to CARTON’s personal bank account (the “CARTON Bank Account”), which CARTON then wired to a casino. Also on December 12, WRIGHT sent another $500,000 to an individual who had previously lent CARTON $500,000, which was due to be repaid that day.
Later in December 2016, the Hedge Fund sent an additional $1.9 million to the CC-1 Entity, to finance the purchase of tickets pursuant to agreements between the CC-1 Entity and the Concert Promotion Company. Once again, the Concert Promotion Company had not entered into any such agreements. CC-1, WRIGHT, and CARTON engaged in text messages regarding the disposition of these funds. Some of the money was used by CC-1 to repay two individuals who had previously invested with CC-1 in a related scheme involving the purported investment in the resale of tickets, and by CARTON to pay casinos and to pay Investor-1 a purported return on an earlier investment in a ticket-related venture.
CARTON also induced the Hedge Fund to wire $2 million to the Sports and Entertainment Company, based purportedly on an agreement he had with the Sports and Entertainment Company (the “Sports and Entertainment Company Agreement”). The Sports and Entertainment Company Agreement purportedly gave an entity controlled by CARTON (the “CARTON Entity”) the right to purchase $2 million of tickets to concerts at one of the venues operated by the Sports and Entertainment Company. CARTON, among other things, sent the Hedge Fund a copy of the Sports and Entertainment Company Agreement that purportedly had been signed by the chief executive officer of the Sports and Entertainment Company. However, this agreement was fraudulent and had never been entered into by the Sports and Entertainment Company or signed by the chief executive officer.
On December 20, 2016, when the Hedge Fund wired the $2 million to the Sports and Entertainment Company, CARTON contacted the Sports and Entertainment Company and told them, in sum and substance, that the wire had been sent in error and should be sent to the bank account for an entity operated by CARTON and WRIGHT, for which WRIGHT is the signatory. After the money was rewired to that account, WRIGHT wired $966,000 to WRIGHT’s personal bank account and $700,000 to the CARTON Bank Account. CARTON then wired approximately $188,000 from the CARTON Bank Account, including at least $133,000 in wires to several casinos.
* * *
CARTON, 48, of New York, New York, and WRIGHT, 41, of Upper Saddle River, New Jersey, are each charged with one count of conspiracy to commit securities fraud and wire fraud, one count of wire fraud, and one count of securities fraud. The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the investigative work of the FBI and thanked the Boston Regional Office of the U.S. Securities and Exchange Commission, which has filed civil charges against CARTON and CC-1 in a separate action. He added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brendan F. Quigley and Elisha J. Kobre are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
