martinez, miguel information

8/14/2019 Martinez, Miguel Information

1/14

UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF NEW YORK

- - - - - x

UNITED STATES OF AMERICA-v . -

MIGUEL MARTINEZ,Defendant .

- - - - - - - - - - - - - - - - - - - - x

COUNT ONE

INFORMATION09 Cr.

(Conspiracy To Defraud The Publ ic Of Honest Serv ices)The United Sta tes Attorney charges :

Duty Of Honest Serv ices To Ci t i zens Of New York Ci ty1. From 2002 to Ju ly 2009, MIGUEL MARTINEZ, the

defendan t , has served as a member of the New York City Council( the "Council") r ep re se n ti ng th e 10th Council Di s t r i c t , whichinc ludes the Washington Heights and Inwood neighborhoods ofManhattan. As a member of the Counci l , MARTINEZ's o f f i c i a ldu t ies have inc luded, among o ther t h ings , ac t ing as a publ i cadvocate on beha lf o f cons t i tuen t s and o ther s , des igna t ing non-p ro f i t organ iza t ions to receive New York City funds, andapp rov ing expen se s to be paid from h is Council of f i c e expensebUdget.

2. As a member of th e Counci l , MIGUEL MARTINEZ, thedefendant , owed a duty o f hones t se rv ice s to the c i t i z ens of NewYork Ci ty . MARTINEZ's duty of honest se rv ices arose , in p a r t ,from v ar io us p ro v is io n s of the New York C ity Ch ar te r, which,


2/14

among o th er th in gs , proh ib i t s counci l members from us ing t h e i rpos i t ion to ob ta in f inanc i a l gain . See New York Ci ty Charter ,Chapter 68, Sect ion 2604(b) (3). The New York C ity C ha rter a l soproh ib i t s Counci l members from engaging in any bus iness o rt r ansac t ion which i s in co nf l ic t with the proper discharge oft h e i r o f f i c i a l du t i es . See New York City Charte r , Chapte r 68,Sect ion 2604(b) (2) . New York City law a lso re qu ire s Counci lmembers to f i l e annual Financ ia l Disc losure Reports l i s t i ng ,among o ther t h ings , sources of income. See New York CityAdmin i s t ra t ive Code, Sect ion 12-110.

Counci l Funds Avai lable To MARTINEZ And Relevant Ent i t i e s3. As a Counci l member, MIGUEL MARTINEZ, the

defendant , has been a l loca ted an annual of f i c e expense budget bythe Counci l . In o rder to rece ive reimbursement fo r h is Counci lof f ice expenses , MARTINEZ has been requi red to submit invo icesr e f l e c t i ng th e expenses to the City of New York. Since 2002,MARTINEZ's annual Counci l of f ice expense bUdget has ranged fromapproximate ly $112,000 to approximate ly $135,000.

4. During the t ime MIGUEL MARTINEZ, the defendant ,has represented the 10th Counci l Dis t r i c t , the Counci l hasa l loca ted mil l ions of do l l a rs annual ly in funds to ce r t a i n nonp ro f i t o rg an iz at io ns p urp orte dly f or the publ ic bene f i t . Publicexpendi tures made as a r e su l t o f such a l loca t ions have beenre fe rre d to as "d i sc re t ionary funds." MARTINEZ and o th er e le cte d

-2 -


3/14

members of the Counci l have had broad d i sc re t i on to des igna te thenon-pro f i t organiza t ions e l i g ib l e to rece ive such funds.MARTINEZ and o ther Counci l members each have con t ro l led a cer t a inpor t ion of d i sc re t ionary funds fo r des igna t ion to non-pro f i torgan iza t ions .

5. Washington Heights Arts Center ( the "Arts Center")i s a non-pro f i t organ iza t ion which was incorpora ted in 1998. Atth e t ime it was organized, i t s mission was to educate WashingtonHeights chi ldren in th e a r t s . Within th e Counci l , MIGUELMARTINEZ, th e defendant , has been the pr inc ipa l sponsor offunding fo r the Arts Center . Since 2003, th e City o f New Yorkhas provided a t l ea s t $163,000 to the A rts C en ter, therebyp ro vid in g th e major i ty of the A rts Cente r ' s funding.

6. The Upper Manhattan Counci l Ass is t ing Neighbors("UCAN") i s a non-pro f i t organiza t ion which was incorpora ted in1998. Near the t ime of UCAN's incorpora t ion , MIGUEL MARTINEZ,the d efe nd an t, s erv ed as UCAN's pres ident . At th e t ime of i t s

"incorpora t ion , UCAN's mission was to p reserv e a ffo rd ab le housingfo r Upper Manhattan c i t i z ens . Since h is e lec t io n to the Councilin 2002, MARTINEZ has been the p r inc ipa l spon sor of funding fo rUCAN by the City of New York. During t ha t t ime, the C ity of NewYork has provided the major i ty of UCAN's funding and, l a rge ly dueto MARTINEZ's sponsorship , has a l loca ted a t le a s t $1.7 mil l ionfo r UCAN.

-3 -


4/14

The Means And Methods Of The ConspiracyOverview

7. From i n o r a bo ut O ctobe r 2002 through i n o r aboutMay 2008, MIGUEL MARTINEZ, the defend ant, ag reed w ith a coc o n s p i r a t o r not named a s a defendant h e r e i n ("CC-1") and o t h e r s ,known and unknown, t o defraud t h e p u b l i c of MARTINEZ's hones ts e r v i c e s as a member of the Counci l by u s i n g h i s o f f i c i a lp o s i t i o n f o r h i s and o t h e r s ' p e r s o n a l f i n a n c i a l g a i n and byengaging i n t r a n s a c t i o n s t h a t were i n c o n f l i c t with t h e properd isc ha rg e o f h i s o f f i c i a l d u t i e s . S p e c i f i c a l l y , MARTINEZ, i n h i sc a p a c i t y as a Counci l member, d i r e c t e d New York C i t y and p r i v a t efunds t o v a r i o u s e n t i t i e s which MARTINEZ and CC-1 e f f e c t i v e l yc o n t r o l l e d so t h a t MARTINEZ could m i s a p p r o p r i a t e approximately$106,000 of t h e money f o r h i s p e r s o n a l b e n e f i t . Although the NewYork City A d m i n i s t r a t i v e Code r e q u i r e d Counci l members t o f i l eannual F i n a n c i a l D i s c l o s u r e Reports l i s t i n g , among o t h e r t h i n g s ,sources of income, i n an e f f o r t t o conceal h i s f r a u d u l e n ta c t i v i t y , MARTINEZ d i d not d i s c l o s e the approximate ly $106,000 heo b t a i n e d f o r h i s p e r s o n a l b e n e f i t from t h e v a r i o u s schemesd e s c r i b e d below.

- 4 -


5/14

The F a l s e Council Expense Invoice Scheme8. From i n o r about October 2002 through i n o r about

May 2008, MIGUEL MARTINEZ, th e d efe nd an t, and o t h e r coc o n s p i r a t o r s no t named h e r e i n agreed t o c r e a t e f i c t i t i o u si n v o i c e s t o be submit ted t o MARTINEZ's Counci l o f f i c e and p a i dfrom MARTINEZ's annual o f f i c e expense budget .

9. MIGUEL MARTINEZ, t h e defendant , p e r s o n a l l yapproved payment of t h e s e i n v o ic es , which MARTINEZ knew t o bef a l s e . Some of t h e s e invo ices f a l s e l y claimed, f o r example, t h a tCC-1 and t h e G re a t e r Manhattan Group, a s h e l l c o r p o r a t i o n , hadperformed a v a r i e t y of s er v ic e s f o r MARTINEZ's Counci l o f f i c e ,i n c l u d i n g media o u t r e a c h , o r g a n i z a t i o n of c o n s t i t u e n t workshops,and s t a f f development c o n s u l t a t i o n s . I n t r u t h and i n f a c t , asMARTINEZ knew, n e i t h e r CC-1 nor the G r e a t e r Manhattan Group hadperformed any such work.

10. A f t e r r ec e i v in g f i c t i t i o u s i n v o i c e s , MIGUELMARTINEZ, t h e defendant , a u t h o r i z e d payment of t h e i n v o i c e s fromh i s Counci l o f f i c e expense budget and s e n t them t o t h e C i t y ofNew York f o r payment. Based on MARTINEZ's approval , t h e C ity ofNew York t h e n s e n t payments t o the f i c t i t i o u s vendors , i n c l u d i n gCC-1, by U.s . m a i l . At MARTINEZ's i n s t r u c t i o n , t h e f i c t i t i o u svendors then cashed a n d /o r d e p o s it ed t h e checks , and gaveapproximately $51,000 from t h e s e payments t o MARTINEZ f o r h i sp e r s o n a l b e n e f i t .

- 5 -


6/14

11. In an e f f o r t to conceal h is f raudulent ac t iv i t y ,MIGUEL MARTINEZ, th e d efe nd an t, i n t en t iona l ly f a i l ed to d isc lo sethe approximately $51,000 in income t ha t he obta ined from thef a l s e Counci l expense invoice scheme on h is Financ ia l DisclosureReports .

The Arts Center Scheme12. As s e t fo r th in Paragraph 5 above, s ince a t l e a s t

2003, MIGUEL MARTINEZ, th e d efe nd an t, has been th e pr inc ipa lsponsor fo r th e A rts Center by the City of New York. Since t h a tt ime, the Ci ty of New York has provided th e major i ty of th e ArtsCenter ' s income and has provided a t l e a s t $163,000 to th e A rtsCenter between 2003 and 2005. Funds a l loca ted by MARTINEZ werein tended to pay fo r se rv ice s fo r the Washington Height s 'community, inc luding tu to r ing f or c hild re n, a r t c las ses , andaf te r - schoo l programs.

13. From 2003 to 2005, CC-l was a s igna to ry on theArts Cente r ' s bank account . During t h a t t ime, a t th e d i r ec t i onof MIGUEL MARTINEZ, th e d efe nd an t, CC-l provided approximately$15,000 from the Arts Cente r ' s bank account to MARTINEZ fo r h ispersona l benef i t .

14. In an e f f o r t to conceal h is f raudulent ac t iv i t y ,MIGUEL MARTINEZ, the defendant , i n t en t iona l ly fa i l ed to d isc lo sethe approximately $15,000 in income t ha t he obta ined from theArts Center scheme on h is Financ ia l Disclosure Repor ts .

-6 -


7/14

The UCAN Scheme15. During 2004 and 2005, the New York Ci ty Housing

Development Corpora t ion ("HDC") provided a developer ( the"Developer") wi th approximat el y $35 mil l ion in loans . HDCprovided the loans so t h a t th e Developer could cons t ruc t fourlow-income housing developments in the 10 th Counci l Dis t r i c t andin the Bronx.

16. At th e tim e, under appl icable law, if th eDeveloper par tnered with a l o ca l non -p r o fi t o r g an i za ti o n tosponsor a low-income housing development, the Developer would bee l ig ib l e to rece ive sU bs ta ntia l ta x bene f i t s . To t h a t end, theDeveloper and MIGUEL MARTINEZ, the defendant , in h is capac i ty asth e Counci l member rep re sen t ing the 10th Counci l Dis t r i c t ,d is cu ss ed th e pos s i b i l i t y of UCAN's as soc ia t ion w ith theDeveloper ' s pro jec t s so the Developer would qua l i fy fo r the taxc red i t s . MARTINEZ then d i rec ted the Developer to meet with CC-1to discuss the arrangement .

17. In o r about th e August 2004, a t th e d i rec t ion ofMIGUEL MARTINEZ, the defendant , th e Developer met with CC-1 todiscuss UCAN's as soc ia t ion w ith the low-income housingdevelopm ents. D uring th e meet ing , a t the d i rec t ion of MIGUELMARTINEZ, th e defendant , CC-1 in s t ruc ted the Developer to make ase r i e s o f payments to UCAN.

- 7 -


8/14

18. From in o r about August 2004 to in o r aboutDecember 2005, th e Developer made approximate ly $96,000 inpayments to UCAN. Based in pa r t on these payments, th e Developerwas able to ob ta in m i ll io n s of do l l a rs in tax c red i t s .

19. Although each of the Developer ' s checks werewri t t en to UCAN-related en t i t i e s , a t th e d i r ec t i on of MIGUELMARTINEZ, the defendant , CC-1 deposi t ed th e checks in to othe rbank accounts in New York, New York. MARTINEZ u l t imate lyreceived approximate ly $40,000 from these o the r bank accounts fo rh is persona l bene f i t .

20. In an e f fo r t to conceal h is f raudulent ac t iv i t y ,MIGUEL MARTINEZ, th e defendant , i n t en t i ona l l y fa i led to d is clo sethe approximately $40,000 in income t ha t he obta ined from theUCAN scheme on h is Financ ia l Disclosure Repor ts .

Statu tory Allega t ion21. From in o r about October 2002 to in o r about May

2008, in th e Southern Dis t r i c t of New York and elsewhere , MIGUELMARTINEZ, th e defendant , toge ther with o ther s known and unknown,unlawful ly , wi l fu l ly and knowingly would and d id combine,con sp ir e, c o nf ed e ra te and agree t oge the r and with each o the r tov io la t e Ti t l e 18, United Sta tes Code, Sect ions 1341 and 1346.

22. It was a pa r t and an ob jec t of th e conspiracyt h a t MIGUEL MARTINEZ, th e defendant , and h is co-consp i ra to r s ,unlawful ly , wi l fu l l y and knowingly, having devised and in tending

-8 -


9/14

to dev ise a scheme and a r t i f i c e to defraud the pu bl ic o fMARTINEZ's hones t se rv ice s , and fo r obta in ing money by means o ff a l s e and f ra ud u le n t p re te n se s, rep re sen ta t ions and promises , fo rth e purpose o f execu t ing such scheme and a r t i f i c e and at tempt ingso to do, d id place in a pos t o f f i c e and au th o ri ze d d epo s it or yfo r mai l a mat t e r and th ing to be s en t and de l ive red by th eP os ta l S erv ic e, and took and rece ived therefrom such mat t e r andth ing, a nd kn ow in gly caused to be de l ive red by mai l according toth e d i rec t ion thereon , and a t th e p lace a t which it was d i rec tedto be de l ive red by th e person to whom it was addressed , suchmat te r and th ing , to wit , MARTINEZ, in h i s capac i ty as a New YorkCity Counci l member, caused checks to be sen t by U.S. mai l in th ecourse of d i rec t ing New York City and p r iva t e funds to var iousen t i t i e s which MARTINEZ and CC-1 con t ro l led so t h a t MARTINEZcould use approximately $106,000 o f the funds fo r h is persona lbene f i t , and concealed h is f raudu len t ac t i v i t y by f a i l i ng todi sc lose h is r e ce ip t of these funds in h is Financ ia l Disc losureReports , in v io la tio n of Ti t l e 18, United Sta tes Code, Sect ions1341 and 1346.

Over t Acts23. I n f ur th er an ce of th e consp i racy and to e f f ec t th e

i l l ega l o b je ct th er eo f, MIGUEL MARTINEZ, th e defendan t , andothers known and unknown, committed the fol lowing ove r t ac t s ,among o ther s , in th e Southern Dis t r i c t o f New York and elsewhere:

- 9 -


10/14

a. On o r about October 12, 2004, in h is capac i tyas a counci l member, MARTINEZ approved payment of an invo icesubmit ted by CC-l in the amount of $1,375, which caused a checkto be mailed to CC-l in the Bronx, New York.

b. On o r about September 9, 2005, MARTINEZdepos i ted a check, wri t t en by CC-l from a bank account of a UCAN-re la ted en t i t y in the amount of $15,000, in to another bankaccount in New York, New York, con t ro l led by MARTINEZ.

c. On o r about June 14, 2004, MARTINEZ rece ivedapproximate ly $4,000 from the Arts Cente r ' s bank account fo r h ispersona l bene f i t .(Ti t le 18, uni ted Sta tes Code, Sect ions 1341, 1346, and 1349.)

COUNT TWO(Mail F raud)

The United Sta tes Attorney fu r the r charges :24. The a l l ega t ions contained in paragraphs 1 through

20 are repeated and r ea l l eged as i f fu lly s ta te d here in .25. From in o r about October 2002 to in o r about May

2008, in the Southern Di s t r i c t of New York and elsewhere , MIGUELMARTINEZ, the defendant , having devised and in tending to devise ascheme and a r t i f i c e to defraud, and fo r obta in ing money by meansof fa l se and f raudulent pretenses , r ep resen ta t ions and promises ,fo r the purpose o f ex ec uting such scheme and a r t i f i c e and

-10-


11/14

at tempt ing so to do, d id p l ace in a pos t o f f i c e and au thor izeddeposi to ry fo r mai l a mat t e r and th ing t o be s en t and del iveredby the Pos ta l Serv ice , and took and rece ived theref rom suchmat t e r and t h ing , and knowingly caused to be de l ivered by mailaccord ing to th e d i r ec t i on thereon , and a t th e place a t which itwas d ire cte d to be de l ive red by the person to whom it wasaddressed , such mat te r and th ing , to wit , MARTINEZ, in h iscapac i ty as a New York Ci ty Counci l member, caused checks to besen t by U.S. ma i l , i n c l ud i ng one on o r about February 29, 2008,in the course of d i rec t ing New York Ci ty and p r i va t e funds tovar ious en t i t i e s which MARTINEZ and CC-l con t ro l led so t h a tMARTINEZ co uld u se ap pro xim ately $106,000 of th e funds fo r h ispersona l benef i t .

(T i t l e 18, United Sta tes Code, Sect ion 1341.)

COUNT THREE(Money Launder ing Consp ir acy )

The United S ta t e s Attorney f u r the r charges :26. The a l l ega t i on s con ta ined in paragraphs 1 through

20 are repea ted and rea l l eged as i f fu l l y s t a t ed he re in .27. In o r about 2005, in the Southern Di s t r i c t of New

York and elsewhere , MIGUEL MARTINEZ, th e defendan t , and othersknown and unknown, unlawfu l ly , wi l fu l l y , and knowingly combined,consp i red , confedera ted , and agreed t oge the r and with othe rs

-11 -


12/14

known and unknown to v io l a t e o f Ti t l e 18, United Sta tes Code,Sect ion 1956.

28. It was a pa r t and an objec t of th e consp i racy t h a tMIGUEL MARTINEZ, th e defendan t , and othe rs known and unknown,would and d id conduct and a t tempt to conduct f i n anc i a lt r ansac t ions invo lv ing the proceeds o f spec i f i ed unlawfulac t iv i t y , knowing t h a t th e p ro pe rty involved in such f inanc ia lt ransac t ions involved th e proceeds o f some form o f unlawfulac t iv i t y , to wit , m ail fraud offenses as charged in Counts Oneand Two, and knowing t h a t such f inanc ia l t r ansac t ions weredes igned in whole o r in p a r t to concea l and di sgu i se th e natu re ,l oca t ion , source , ownership , and con t ro l of th e proceeds o fspec i f i ed unlawful a c t i v i t y , in v io l a t i on of Ti t l e 18, Uni tedSta te s Code, Sec t i on 1956 (a) (1 ) (B) ( i) .

Over t Acts'29. In fu rth era nc e o f sa id conspiracy and to e f f ec t

th e i l l ega l ob j e c t the reof , th e fol lowing ove r t ac t s , amongothe rs , were committed in the Southern Di s t r i c t o f New York andelsewhere:

a . On o r about September 7, 2005, CC-1 wrote acheck fo r $15,000 from a bank account of a UCAN-related en t i t ycon ta in ing proceeds of th e o ffe ns es charged in Counts One and Twoto a bank accoun t in the name Samajul is con t ro l led by MIGUELMARTINEZ, th e defendan t .

-12-


13/14

b. On o r a bo ut O cto be r 18, 2005, MARTINEZ wrotea check fo r $13,000 from a bank account in the name Samaju l i st ha t con ta ined pro ceeds o f the offenses charged in Counts One andTwo to th e G rea ter Manhattan Group.

(T i t l e 18, United Sta tes Code, Sect ion 1956(h) . )

FORFEITURE ALLEGATION30. As th e r e su l t o f committ ing th e o ffe nse s charged

in Counts One and Two, in v io la tio n of 18 U.S.C. Sect ions 1341,1346 and 1349, MIGUEL MARTINEZ, th e d efe nd an t, s ha l l f o r f e i t tothe United S ta t e s , pursuant to Ti t l e 18, United Sta tes Code,Sect ion 981(a) (1) (C) and Ti t l e 28, United Sta tes Code, Sect ion2461, a l l prope r ty , r e a l and persona l , th a t c on sti tu te s o r i sder ived from proceeds t ra ce ab le to the commission of the offense ,in clu ding , b ut no t l im ite d to , a sum of $106,000, represent ingthe amount o f proceeds obtained as a r e su l t of th e o ffen sesal leged in Counts One and Two.

Subs t i tu te Asse t Provis ion31. I f any of the above-descr ibed fo r f e i t ab l e

property , as a r e su l t of any ac t o r omiss ion of the defendant :(1 ) cannot be loca ted upon th e exercise of due

d i l igence ;(2) has been t rans fe r red o r sold to , o r depos i ted with,

a th i rd person;

-13-


14/14

(3) has been placed beyond the j u r i s d i c t i on of thecour t ;

(4) has been sUbs tan t i a l ly diminished in va lue ; o r(5 ) has been commingled with o th er p ro p er ty which

cannot be s ub di vi de d w i th ou t d i f f i c u l t y ;it i s th e i n t en t of th e United Sta t e s , pursuant to 21 U.S.C. 853(p) , to seek fo r fe i tu re of any o the r p roper ty o f sa iddefendan t up to th e va lue o f th e above f o r f e i t ab l e proper ty .

(T i t l e 18, United Sta t e s Code, Sec t ion 981(a) (1) (C),Ti t l e 21, un i t ed Sta t e s Code, Sec t ion 853(p) ;Ti t l e 28, United Sta t e s Code, Sec t ion 2461.)

LEV L. DASSINActing United Sta t e s Attorney

-14 -

martinez, miguel information

Documents