EFTA00094388.pdf

SDNY News Clips, Wednesday, August 14, 2019 SDNY News Clips Wednesday, August 14, 2019 Contents Public Corruption 2 Epstein 2 General Crimes 14 Sprecher 14 Violent and Organized Crime 20 Walter 20 Civil Division 22 NYCHA 22 Securities and Commodities Fraud 24 Margulies 24 Sharma and Farkas 26 Matters of Interest 28 Obama-era counsel Greg Craig's trial postponed; new jury to be selected 28 Epstein Saga Puts Spotlight on Crime Victim's Rights Act 30 Donziger Faces Criminal Contempt Prosecution Team at Seward & Kissel 34 Jail Where Epstein Died Has Record of Security Blunders 36 2nd Circuit's Decision Could Embolden Federal Anti-Corruption Prosecutors 38 1 EFTA00094388  SDNY News Clips, Wednesday, August 14, 2019 Public Corruption Epstein Jeffrey Epstein Raped Me When I Was 15 NYT By Jennifer Araoz 8/14/19 The first time I stepped into Jeffrey Epstein's mansion on the Upper East Side in the fall of 2001, I noticed his security cameras. They were hard to miss. Inside the front door, he had small TVs playing the footage in real time. I was a child, just 14 at the time. But the message was clear: I was in the house of someone important and I was being watched. I can still remember watching myself on those screens as I walked into the house of the person I came to know as a predator, a pedophile, my rapist. I'm filing a civil action against Jeffrey Epstein's estate and accomplices today, under New York's Child Victims Act. A key provision of the law goes into effect today and allows survivors to revive claims if the statute of limitations had expired. Epstein was found dead, apparently by suicide, in his jail cell last week. I'm angry he won't have to personally answer to me in the court of law. But my quest for justice is just getting started. During my freshman year, one of Epstein's recruiters, a stranger, approached me on the sidewalk outside my high school. Epstein never operated alone. He had a ring of enablers and surrounded himself with influential people. I was attending a performing arts school on the Upper East Side, studying musical theater. I wanted to be an actress and a singer. The recruiter told me about a wealthy man she knew named Jeffrey Epstein. Meeting him would be beneficial, and he could introduce me to the right people for my career, she said. When I confided that I had recently lost my father and that my family was living on food stamps, she told me he was very caring and wanted to help us financially. The trap was set. The visits during the first month felt benign, at least at the time. On my second visit, Epstein also gave me a digital camera as a gift. The visits were about one to two hours long and we would spend the time talking. After each visit, he or his secretary would hand me $300 in cash, supposedly to help my family. But within about a month, he started asking me for massages and instructed me to take my top off. He said he would need to see my body if he was going to help me break into modeling. I felt uncomfortable and intimidated, but I did as he said. The assault escalated when, during these massages, he would flip over and sexually gratify himself and touch me inappropriately. For a little over a year, I went to Epstein's home once or twice a week. 2 EFTA00094389  SDNY News Clips, Wednesday, August 14, 2019 The last day I went to his house was during the fall of my sophomore year. This time, when I was giving him the massage, he told me to take off my underwear and get on top of him. When I said no, he got more aggressive, held me tightly and raped me. After that day, I never went back. I also quit the performing arts school — the one I had auditioned for and had wanted so badly to attend. It was too close to his house, the scene of so many crimes. I was too scared I would see him or his recruiter. So I transferred to another school in Queens close to my home. Since I was no longer able to pursue my dream of performing arts I eventually lost interest and dropped out. It took me years to tell the people close to me what had happened. I was so intimidated by his insistence that I never speak a word of my visits to anyone. And like many survivors, I struggled with anxiety and shame for what I had experienced. The power structure was stacked against me. His money, influence and connections to important people made me want to hide and stay silent. Those same powerful forces let him hide and evade justice. That changes, starting now. I want my story to hold Epstein to account and also his recruiters, the workers on his payroll who knew what he was doing and the prominent people around him who helped conceal and perpetuate his sex-trafficking scheme. Their hideous actions victimized me and so many young girls like me. For years I felt crushed by the power imbalance between Epstein, with his enablers, and me. The Child Victims Act finally offers a counterweight. Moving forward, victims will now have until age 55 to bring a civil case. I hope more states pass similar laws so that more survivors who endured abuse, assault and rape as a child can know what wresting back their power feels like. Standing up to the entrenched network of power and wealth that surrounded Epstein is scary, but I am no longer afraid. Reliving these experiences is tough, but I've learned to be tougher. I used to feel alone, walking into his mansion with the cameras pointing at me, but now I have the power of the law on my side. I will be seen. I will be heard. I will demand justice. 3 EFTA00094390  SDNY News Clips, Wednesday, August 14, 2019 Sasse demands Barr 'rip up' 2008 Epstein deal, bring co-conspirators to justice NY Post By Emily Jacobs 8/14/19 Sen. Ben Sasse (R-Neb.) has urged Attorney General William Barr to "rip up the non-prosecution, non- investigation agreement" for Jeffrey Epstein so that co-conspirators are brought to justice. "Too many of Epstein's secrets have gone to the grave with him, and the Department must not allow his death to be one last sweetheart deal for his co-conspirators," Sasse wrote in a letter sent to Barr on Tuesday. "The victims of Epstein's international sex trafficking ring deserve justice. In order to bring Epstein's co- conspirators to justice, the Department of Justice should rip up the non-prosecution, non-investigation agreement entered into by Epstein and the U.S. Attorney's Office for the Southern District of Florida in 2008." That 2008 deal, put together by then-US Attorney and recently ousted Labor Secretary Alex Acosta, granted Epstein and "any potential co-conspirators" immunity from federal charges in exchange for him pleading guilty to a single state charge. Epstein served 13 months in a state prison in Florida, but was allowed out six days a week so he could work from his private office. Sasse slammed the deal, writing, "This agreement should shock the conscience of anyone familiar with its details. "These problems run far beyond those identified by the U.S. District Court for the Southern District of Florida, which ruled that federal prosecutors violated the Crime Victims' Rights Act by hiding the terms of the deal from the women and girls that Epstein raped and exploited until after it was entered." This is the second letter Sasse has sent Barr regarding Epstein. On Saturday, Sasse wrote to the attorney general demanding answers on circumstances that allowed for Epstein to commit suicide in federal custody. "Heads must roll," Sasse wrote. "Every single person in the Justice Department — from your Main Justice headquarters staff all the way to the night-shift jailer — knew that this man was a suicide risk, and that his dark secrets couldn't be allowed to die with him." Barr has promised to bring anyone involved in Epstein's crimes to justice. "We will get to the bottom of what happened and there will be accountability," Barr said, adding, "Any co- conspirators should not rest easy. The victims deserve justice and they will get it." 4 EFTA00094391  SDNY News Clips, Wednesday, August 14, 2019 Jeffrey Epstein Death: 2 Guards Slept Through Checks and Falsified Records NYT By Katie Benner and Danielle Ivory 8/13/19 The two staff members who were guarding the jail unit where Jeffrey Epstein apparently killed himself fell asleep and failed to check on him for about three hours, then falsified records to cover up their mistake, according to several law enforcement and prison officials with knowledge of the matter. Those disclosures came on Tuesday as the two employees were placed on administrative leave and the warden of the jail, the Metropolitan Correctional Center in Manhattan, was temporarily reassigned, pending the outcome of the investigation into Mr. Epstein's death, the Justice Department announced. The two staff members in the special housing unit where Mr. Epstein was held — 9 South — falsely recorded in a log that they had checked on the financier, who was facing sex trafficking charges, every 30 minutes, as was required, two of the officials said. Such false entries in an official log could constitute a federal crime. In fact, the two people guarding Mr. Epstein had been asleep for some or all of the three hours, three of the officials said. The attorney general, William P. Barr, on Monday ordered the Justice Department's inspector general to look into how Mr. Epstein had managed to commit suicide while in custody and why he had been taken off a suicide watch 12 days earlier. "We will get to the bottom of what happened," Mr. Barr said. The warden, Lamine N'Diaye, will be transferred to a Bureau of Prisons office in Philadelphia while the F.B.I. and the Justice Department's inspector general conduct inquiries. The Justice Department said in a statement that it might take additional punitive actions. Prison staff discovered Mr. Epstein, 66, dead in his cell at the Metropolitan Correctional Center at 6:30 a.m. on Saturday, officials said. He had apparently hanged himself with a bedsheet, likely fastening the sheet to a top bunk and pitching himself forward, law enforcement and prison officials said. Mr. Epstein had been awaiting trial on charges he had sexually abused scores of teenage girls at his mansions in Manhattan and Palm Beach, Fla. He had apparently tried to commit suicide once before, on July 23, shortly after he was denied bail, which resulted in him being placed on suicide watch, prison officials familiar with the incident have said. Six days later, prison officials determined that he was no longer a threat to his own life and returned him to a cell in the 9 South housing unit with another inmate, officials said. That inmate was later transferred out of the cell, leaving Mr. Epstein alone on Friday night. Though it is standard practice to house people who have recently been taken off suicide watch with another person, the prison did not replace Mr. Epstein's cellmate. 5 EFTA00094392  SDNY News Clips, Wednesday, August 14, 2019 The Justice Department, which oversees the Bureau of Prisons, did not immediately identify the two correctional officers who were placed on administrative leave. Two prison officials familiar with the incident said the two staff members had not looked in on Mr. Epstein for about three hours before he was found. One of the staff members was a former correctional officer who had taken a different position at the detention center that did not involve guarding detainees. He had volunteered to work again as a correctional officer for the extra overtime pay, a law enforcement official and an employee at the jail said. The second officer, a woman who was assigned to that wing, had been ordered to work overtime because the jail was short staffed. James Petrucci, the warden at a federal prison in Otisville, N.Y., has been named acting warden of the Manhattan jail, officials said. Some union leaders for prison workers expressed dismay with Mr. Barr's decision to allow the warden to continue working, even as the two staff members were placed on leave. "It makes me angry that they reassigned the warden," said Jose Rojas, an official in the prison employees' union and a teacher at the Coleman prison complex in Sumterville, Fla. "They didn't put him on administrative leave like the others. The warden made the call to take Epstein off suicide watch and to remove his cellmate. That is egregious." Since Saturday, Mr. Barr has been briefed multiple times a day on the inquiries into Mr. Epstein's death, a Justice Department official said. In addition to the investigations by the Justice Department, the inspector general and the F.B.I., two other reviews of Mr. Epstein's death were underway, a Justice Department official said. A team of psychologists from the Bureau of Prisons visited the Manhattan jail on Tuesday to review each step of the decision to take Mr. Epstein off suicide watch. On Wednesday, an "after-action team" — led by the bureau's Southeast regional director — is scheduled to be at the prison to determine whether employees and officials followed protocols in the days and weeks before Mr. Epstein died, the official said. Mr. Epstein's death has drawn sharp criticism from Republican and Democratic lawmakers. On Monday, the chairman and ranking member of the House Judiciary Committee sent a letter to the acting director of the Bureau of Prisons, Hugh Hurwitz, demanding answers about how Mr. Epstein could have been unsupervised long enough to take his own life. The letter said Mr. Epstein's apparent suicide had brought to light "severe miscarriages" or deficiencies in how inmates are managed at the jail and had "allowed the deceased to ultimately evade facing justice." It was signed by Representatives Jerrold Nadler, a New York Democrat, and Doug Collins, a Georgia Republican. 6 EFTA00094393  SDNY News Clips, Wednesday, August 14, 2019 Mr. Nadler and Mr. Collins demanded that the Bureau of Prisons hand over by Aug. 21 any details about Mr. Epstein's mental health evaluations and his housing, as well as the bureau's protocols for handling inmates considered at risk of suicide. They also requested to be told how Mr. Epstein was being monitored and what the surveillance cameras may have recorded in or near Mr. Epstein's cell. At the same time, Senator Ben Sasse, a Nebraska Republican on the Senate Judiciary Committee, urged Mr. Barr on Tuesday to rip up an agreement federal prosecutors in Florida had reached with Mr. Epstein in 2008 that shielded not only him, but also any other co-conspirators who may have helped him lure teenage girls into prostitution. "This crooked deal cannot stand," Mr. Sasse said in his letter. 7 EFTA00094394  SDNY News Clips, Wednesday, August 14, 2019 Our first responders didn't leak Jeffrey Epstein's death: FDNY NY Daily News By Thomas Tracy 8/13/19 Sex fiend financier Jeffrey Epstein's death was first leaked on a right-wing Internet message board, but didn't come from FDNY first responders, the department said Tuesday. Details about the degenerate's demise were up on the anonymous message board 4 Chan about 30 minutes before word of the apparent suicide seeped out. "[D]ont ask me how I know, but Epstein died an hour ago from hanging, cardiac arrest," the poster wrote on Saturday. When pressed for more information, procedures used to resuscitate Epstein were listed. The data, which appeared to be from a first responder, was first reported by Buzzfeed News. "The FDNY reviewed the alleged information and determined it did not come from the Department," an FDNY spokesman told the Daily News. An ongoing investigation into the leak is focused on hospital personnel right now, sources said. If a city medic or any other medical professional divulged information about Epstein's death, it is a violation of federal health privacy laws and they could face serious consequences, officials said. Oren Barzilay, head of FDNY EMS union Local 2507 said he was "confident" that someone other than an FDNY member was responsible. "Reading the posting it looks clear to me that someone is repeating what they read or saw," Barzilay said. "Patient confidentiality is vital part of our training. Our EMTs and paramedics are well aware of the consequences they would face by leaking such information." Two federal investigations have been launched into Epstein's death. The accused sex trafficker died Saturday after he apparently used a bedsheet to hang himself inside his cell at the Metropolitan Correctional Center in lower Manhattan. Epstein, 66, was being held at the federal prison since he was arrested on sex trafficking charges July 6. He attempted suicide by hanging on July 24 while in MCC's special housing unit, but was not on suicide watch when he died. 8 EFTA00094395  SDNY News Clips, Wednesday, August 14, 2019 Epstein guards suspected of falsifying logs to show they were checking on him: report Fox News By Gerren Keith Gaynor 8/13/19 Guards at the New York City jail facility where Jeffrey Epstein is said to have killed himself are suspected of falsifying log entries to show they were checking on the alleged sex trafficker and other inmates with greater regularity than was the case, according to a Tuesday report. Surveillance video reviewed after Epstein's death shows guards at the Metropolitan Correctional Center did not make some of the checks they claimed to have made in their logs, a source told the Associated Press. The New York Times reported, citing unnamed officials, that the guards fell asleep at some point and did not check on him for up to three hours. The federal jail workers claimed they were checking on inmates in Epstein's unit every half hour, but investigators now believe that was not the case. The Justice Department on Tuesday said that two guards assigned to watch Epstein had been placed on administrative leave. The latest revelation, first reported by CBS News, comes amid growing conspiracy theories surrounding Epstein's death as he awaited trial on sex trafficking and conspiracy charges. Prosecutors said he sexually abused dozens of young girls in his New York and Florida residences between 2002 and 2005, allegations that could have landed him behind bars for 45 years. The 66-year-old disgraced financier was found hanging in his cell on Saturday after using a bedsheet tied to his bunk. He was later pronounced dead at a hospital. Many lawmakers and conspiracy theorists alike wonder how he could commit suicide inside the Special Housing Unit at the jail facility. Attorney General William Barr said Monday there were "serious irregularities at this facility that are deeply concerning," and said he was demanding "a thorough investigation." In the aftermath of Epstein's apparent suicide, his alleged "recruiter" Ghislaine Maxwell now finds herself under the microscope. Geoffrey Berman, the U.S. attorney for the Southern District of New York, has vowed to continue the investigation into Epstein, who, at the time of his death, was in a New York facility awaiting trial on allegations he operated an underage sex trafficking ring. And even though Epstein is now firmly outside the grip of the criminal justice system, his alleged "co-conspirators" do not enjoy a similar reprieve. Several of Epstein's accusers have pointed to Maxwell as playing a pivotal role in enlisting his victims, according to thousands of pages of court documents unsealed on Friday -- just hours before Epstein reportedly used his bedsheet to hang himself from a prison bunk -- in relation to a 2015 defamation suit filed against Maxwell. Those who say they're victims of Epstein and other eyewitnesses to the events surrounding his alleged crimes, have testified Maxwell's role was in arranging massages and sexual favors for Epstein and a circle of his high- profile associates. 9 EFTA00094396  SDNY News Clips, Wednesday, August 14, 2019 But Maxwell allegedly played an even more direct role in the sex abuse on several occasions. Maxwell and Epstein were accused of molesting two victims in 1996 but the claims -- allegedly reported to the FBI -- fell on deaf ears, according to an affidavit viewed by the Miami Herald. Maxwell has not released any public statements since Epstein's arrest in early July. No criminal charges have been brought against her and she has consistently and vehemently denied all allegations of misconduct. I0 EFTA00094397  SDNY News Clips, Wednesday, August 14, 2019 Jeffrey Epstein's gal pal Ghislaine Maxwell lying low at Massachusetts mansion NY Post By Yaron Steinbuch 8/14/19 Jeffrey Epstein's former gal pal Ghislaine Maxwell, who has been accused of procuring underage victims for the millionaire pedophile, has been living in a secluded Massachusetts mansion with her new beau, according to a report. The 57-year-old British socialite is in a relationship with tech CEO Scott Borgerson, 43, with whom she is living in the $3 million oceanfront home at the end of a long private road in Manchester-by-the-Sea, the Daily Mail reported Wednesday. "She's become a real homebody, rarely ventures out. She's the antithesis of the woman who traveled extensively and partied constantly with Epstein," a source familiar with Maxwell's new life told the news outlet. Maxwell, who has virtually disappeared from view and whose lawyers have not responded to requests for comment, has been described as the late financier's girlfriend, closest pal and sex procurer. Court papers unsealed Friday — just hours before Epstein was found "unresponsive" in his cell at the Metropolitan Correctional Center in Manhattan — also allege that she served as the "madam" in his alleged ring and also engaged in threesomes with some of the victims. She has previously denied any wrongdoing. Epstein is believed to have hanged himself while locked up on federal sex-trafficking charges. The mansion where Maxwell has been ensconced recently is a stately three-story colonial property with five- bedrooms and wraparound terraces, according to the Daily Mail. Borgerson, the owner, is a member of the Council on Foreign Relations and the co-founder and CEO of CargoMetrics Technologies, an investment management company that specializes in analyzing data on global shipping, according to a bio on LinkedIn that bears his name. The former Coast Guard officer, who earned a Ph.D. from the Fletcher School of Law and Diplomacy at Tufts University, "has advised the White House on maritime policy" and "testified a number of times before Congress as a nonpartisan witness," according to the bio. Last month, the Daily Mail observed Borgerson running errands in the affluent community of Manchester-by- the-Sea, about 25 miles northeast of Boston. Later, he was seen walking Maxwell's pooch on Boston Common near his apartment where he lives during the week while running his company. Borgerson declined to comment on his relationship with Maxwell when contacted by the Daily Mail. Maxwell's lawyer, Jeff Pagliuca, has not responded to requests for an interview with her by the news outlet. II EFTA00094398  SDNY News Clips, Wednesday, August 14, 2019 Jeffrey Epstein's Curious Ties to His Brother's Real-Estate Business NY Magazine By James D. Walsh 8/14/19 Jeffrey Epstein's apparent suicide over the weekend likely means that his criminal case will not proceed. But in a statement Saturday, Attorney General William Barr issued a sharp warning: "Any co-conspirators should not rest easy." There has been plenty of speculation as to whom may be held responsible for helping or enabling Epstein, from his alleged madam, Ghislaine Maxwell, to the attorneys who handled his business dealings for decades. While he has not been accused of involvement in the sex offender's crimes, new details about Jeffrey's younger brother, Mark Epstein, have raised questions about their business ties, and how close the pair really were. Jeffrey and Mark grew up together in the Sea Gate community in Brooklyn. Mark, who is a year-and-a-half younger than his brother, went on to start a silk-screening business and, having "semi-retired" at age 39, he dabbled in real estate and philanthropy. In 2009, Mark was named chair of the Cooper Union board. That ended with his resignation in 2015 after the school's controversial decision to begin charging students tuition for the first time in the college's 150-year history. The Epstein brothers' relationship in adulthood is opaque. In filings, the U.S. Attorney for the Southern District had said Jeffrey had "no known immediate family" and "no meaningful family ties." Yet in a 2009 deposition, Mark said that he knew Donald Trump flew on Jeffrey's plane "numerous times" and that he'd personally seen Trump on his brother's plane once. "They were good friends," Mark recently told the Washington Post. "I know [Trump] is trying to distance himself, but they were." After Jeffrey pleaded not guilty last month to sex trafficking of minors, Mark offered his Florida home to guarantee his brother's bond. Last month, Mark told Crain's New York that he had no business connection to his brother, but documents show that Mark's real-estate business, Ossa Properties, is linked to J. Epstein & Co., the company through which Jeffrey managed retail billionaire Leslie Wexner's assets. The person in charge of running Ossa Properties, Jonathan Barrett, was also an asset manager for J. Epstein & Co. Mark told Crain's that the connection between the two companies was "a mistake," reminiscent of the "recording error" that linked private-equity tycoon Leon Black's foundation to Jeffrey years after he was convicted of soliciting a minor for prostitution in Florida. At the center of the curious connection between Mark's real-estate company and his brother is a condominium at 301 East 66th Street, a 15-minute walk from Jeffrey's mansion on East 70th Street. Mark owns the majority of the units in the bland, 16-story, 200-unit building, which he purchased from Wexner in the early 1990s. Mark has said his brother does not own a share of the building, but for years Jeffrey allegedly housed friends, employees, and associates in apartments in the building, including models connected to MC2, the modeling agency in which he invested. (The Daily Beast recently reported that Mark also began dabbling in the modeling industry around the same time Jeffrey invested in MC2.) In 2010, a former MC2 employee said in a sworn statement that the MC2 models were in fact victims of Epstein's underage sex-trafficking ring. "Jeffrey rents several apartments there where he keeps his girls, alleged models for the MC2 agency he owns," Florida attorney Brad Edwards, who represents a number of Epstein's alleged victims, told "Page Six" in 2009. "But Mark acts like he doesn't even know his brother." 12 EFTA00094399  SDNY News Clips, Wednesday, August 14, 2019 In addition to the models, the Jeffrey Epstein associates who also rented apartments or ran businesses out of the building included an ex-girlfriend, his pilot, and his MC2 business partner, Jean-Luc Brunel. (One of Epstein's alleged victims has claimed she was forced to have sex with Brunel.) Two other potential Jeffrey Epstein co- conspirators, Nadia Marcinkova and Sarah Kellen, both operated businesses that were registered at the building. Former Israeli prime minister Ehud Barak, who was photographed outside Jeffrey's townhouse in 2016, also regularly spent time at the condo. "I don't live in that building," Mark told Crain's. "I don't monitor who uses those apartments." 13 EFTA00094400  SDNY News Clips, Wednesday, August 14, 2019 General Crimes Sprecher Broadway producer Ben Sprecher arrested on child porn charges AP 8/13/19 A Broadway producer whose first big-budget show was derailed by a con man's false financial promises has been arrested on child porn charges. The producer, Ben Sprecher, was arrested Tuesday on federal charges of possession and distribution of child pornography. It was not immediately clear who would represent him at a court appearance. A criminal complaint prepared by a New York City police detective said Sprecher admitted he possessed child porn files. The complaint said over 100 electronic files seized from Sprecher's residence included a nearly 46-minute video of a pre-teen girl engaging in sex acts with an adult male. Sprecher was the lead producer of "Rebecca," a Broadway musical that was canceled before it was to open in fall 2012. A stockbroker later admitted he'd flimflammed the producers. 14 EFTA00094401  SDNY News Clips, Wednesday, August 14, 2019 Ben Sprecher, Notorious Broadway Producer With Scandal-Scarred Past, Arrested on Federal Child Pornography Charges: Sources NBC 4 By Joe Valiquette 8/13/19 A Broadway producer with ties to one of the biggest fraud scandals in theatre history faces federal child pornography charges after an early morning raid at his Harlem home Tuesday, law enforcement sources familiar with the case tell News 4. Ben Sprecher was arrested on a criminal complaint issued by the U.S. attorney's office in Manhattan, the sources said. He was taken into custody by the NYPD and Homeland Security Investigations agents at his home on West 122nd Street, where a search warrant is being executed, the sources say. The complaint said Sprecher allegedly admitted he possessed child porn files. It also says more than 100 electronic files were seized from his home, including a nearly 46-minute video of a pre-teen girl engaging in sex acts with a man. It wasn't immediately clear who would represent Sprecher in court. Broadway producer Ben Sprecher was arrested on federal child pornography charges in Manhattan Tuesday, law enforcement sources say.(Published Tuesday, Aug. 13, 2019) Sprecher has a lengthy list of Broadway credits, most recently the London stage adaptation of the horror classic "The Exorcist." On his LinkedIn profile, Sprecher also credits himself as a theatre owner-operator, executive producer of the national tour of "Little House on the Prairie" and producer of the Broadway revival of "Brighton Beach Memoirs." But he is perhaps most notorious for "Rebecca," a $12 million musical that was set to open in the fall of 2012 -- until Sprecher and other investors found out the show's major backer did not exist. A Long Island stockbroker named Mark Hotton with a long history of civil fraud lawsuits against him was arrested for scamming Sprecher and the show's other backers. He ultimately plead guilty and was sentenced to more than a decade in prison. Sprecher was cleared of any involvement in the fraud, but left with his reputation sullied. "Do I feel like I was duped? I was duped. I was raped," Sprecher told the New York Times in an Oct. 2012 interview. According to Playbill, lawsuits related to the show's collapse were still being settled as recently as this past May. 15 EFTA00094402  SDNY News Clips, Wednesday, August 14, 2019 Broadway producer Ben Sprecher arrested on child porn charges NY Post By Stephanie Pagones, Lorena Mongelli and Emily Saul 8/13/19 The Broadway producer behind the failed musical "Rebecca" was busted Tuesday for downloading child-porn — as disgusted neighbors said he once went around collecting signatures to get faster Internet. "For nine years, he was not even able to say `hello,' and suddenly he was quite friendly. ... He needed to have his Internet," a female resident said of accused kiddie-pery neighbor Ben Sprecher, 65, of Manhattan — who famously had his Broadhurst Theatre play "Rebecca: The Musical" torpedoed by a con man. Sprecher — who has produced everything from Broadway's "Brighton Beach Memoirs" to "American Buffalo," as well as a national tour of "Little House on the Prairie" — is accused of downloading more than 100 videos and photos containing child pornography, according to court documents. The sick stash included a nearly 46-minute video of a girl, described as between 10 and 12 years old, "engaging in various sex acts with an adult male," the papers allege. Sprecher shared at least four of the twisted files with an undercover agent over three days in June, the documents claim. He has admitted to downloading the illicit porn, court papers say. Sprecher was picked up by Homeland Security and the NYPD around 6 a.m. at his cony townhome on West 122nd Street in Momingside Heights, authorities said. His family was home at the time, according to law- enforcement sources. "The police officers went inside the building, and they then brought him out. [Sprecher] had a smile on his face — probably nervous and embarrassed about what was going on," said D.B. Shark, a Web-based radio host and local. "He is a pleasant guy" Shark said. "This is so shocking. But you never know who's next-door." Sprecher allegedly amassed the online kiddie porn between at least October 2018 and this month. Neighbors recalled how important the suspect's Internet connection was to him a few years ago, with one resident, Jenny Raymond, saying he "made an effort to send out notifications [to get a faster speed] to all the neighbors" in 2014. A Manhattan federal judge banned the producer from using the Internet at his arraignment Tuesday afternoon. Sprecher's public-defender lawyer, Martin Cohen, argued that his client needed at least his e-mail to work, to which the judge replied, "He doesn't seem to be doing too much these days." Sprecher's townhome is currently on the market for nearly $3.7 million. 16 EFTA00094403  SDNY News Clips, Wednesday, August 14, 2019 Sprecher, who has been married for 25 years and has two adult children, also was barred by the judge from perusing any kind of porn and ordered "to avoid all unsupervised contact with minors." Prosecutors argued that he should be fitted with a monitoring device, too, but the judge refused. Sprecher was released on $100,000 bond and ordered back to court Sept 12. His lawyer declined comment after the hearing. In 2012, Sprecher and "Rebecca" co-producer Louise Forlenza were scammed by former Long Island stockbroker Mark Hotton, who netted $60,000 in fees from them with promises of lining up $4.5 million in investments for their psychological thriller. Hotton then claimed one of his big investors died suddenly of malaria while on safari, and that KO'd the money pot. He pleaded guilty to money-laundering conspiracy and was sentenced to 34 months behind bars. Then in 2017, Sprecher cried on the stand in Manhattan court while testifying against his former press agent, who he and Forlenza sued for $10 million, claiming the rep later scared away real investors who might have been able to save the production. The publicist was ordered to pay the pair $90,000. 17 EFTA00094404  SDNY News Clips, Wednesday, August 14, 2019 Broadway producer Ben Sprecher arrested on child porn charges NY Daily News By Stephen Rex Brown and Thomas Tracy 8/13/19 A Tony award-nominated Broadway producer was busted Tuesday for possession of a sick stash of child porn, prosecutors said. NYPD and Homeland Security investigators raided Ben Sprecher's home in Morningside Heights on W. 122nd St. at 6 a.m., seizing an external hard drive that contained "numerous files containing child pornography," prosecutors said. Sprecher, who produced the Tony-nominated "Fortune's Fool" in 2002 and a revival of "The Odd Couple" in 2005, shared around 100 child porn files on a file-sharing network beginning in October 2018. The 65-year-old was charged with possession and distribution of child pornography. The most serious charge carries a maximum sentence of 20 years in prison. After being read his rights the disgraced producer admitted the he "accessed" and "downloaded" perverted child porn files, according to a criminal complaint in Manhattan Federal Court. One video cited by an NYPD detective on the case showed a preteen girl engaged in sex acts with an adult man, according to the five-page complaint. The video was over 45 minutes long. The complaint says that Sprecher shared four child porn files through the network with law enforcement. "Sexualizing young children is unconscionable; and this Office and our law enforcement partners will continue to utilize all of the expertise and resources available to shine a light on every dark corner where it is produced, shared, and possessed," Manhattan U.S. Attorney Geoffrey Berman said. Sprecher, who is married with two grown children, declined comment after being released on $100,000 bond. He grabbed the camera of a Daily News photographer as he left the courthouse. "Mr. Sprecher has engaged in this conduct over a lengthy period of time," Assistant U.S. Attorney Samuel Rothschild said. "It's not a one-off." Sprecher's attorney Martin Cohen asked that he be allowed to have access to the intemet for work. "Mr. Sprecher works as a producer," Cohen said, adding that his client needed to be able to set up meetings and read email. "He doesn't seem to be doing too much these days," Magistrate Judge Henry Pitman said. He ordered Sprecher not use the intemet or have unsupervised interactions with minors. Despite his extensive credits, Sprecher is probably best known for his involvement in the "Rebecca" debacle in 2012. Sprecher thought he had lined up financial backing for a Broadway run of the musical, only to learn he had been tricked. A con man, Mark Hotton, had fabricated the existence of a South African investor who 18 EFTA00094405  SDNY News Clips, Wednesday, August 14, 2019 supposedly died before he could pour $4.5 million into the show. Sprecher had to pull the plug on the production, costing 130 people jobs. Hotton was sentenced to nearly three years in prison for the scam in 2014. Sprecher was cleared of any involvement in the scam, but the fallout damaged his reputation. A civil suit over the fiasco featured allegations that Sprecher had failed investors and "hid the truth." 19 EFTA00094406  SDNY News Clips, Wednesday, August 14, 2019 Violent and Organized Crime Walter Tekashi69 bodyguard sentenced to more than 5 years behind bars for restaurant shooting NY Daily News By Trevor Boyer and Leonard Greene 8/14/19 Brooklyn rapper Tekashi69's former bodyguard was sentenced Wednesday to 62 months in prison for his admitted role in a shooting at an Upper East Side restaurant. Faheem Walter's attorney argued that he had already suffered enough after being shot and nearly dying in the bloody Oct. 26, 2018 fracas that began when private security guards would not allow him into Phillipe Chow on E. 60th St. Tekashi69, whose real name is Daniel Hernandez, went to the restaurant to meet with a record executive. Hours earlier, Hernandez was sentenced to 4 years probation in connection with a video he made of a 13-year-old girl having sex. Walter and another member of Tekashi's entourage were turned away from the eatery, but later returned and hit one of the security guards over the head with a chair. The guard pulled a licensed handgun and fired twice, hitting Walter in the torso. Walter was rushed to a hospital, and was later charged with gang assault. "He almost didn't make it," his defense attorney, Edward Sapone, said in Manhattan Federal Court. "The bullet ripped through his intestine." Surgery saved Walter, but resulted in hundreds of stitches, a scar from his collarbone to his belly button and continual infections at the site of his colostomy. Sapone argued the gory consequences of the shooting would serve as a deterrence to the public — and a reminder to Walter not to commit further crimes. Still, his lawyer said, Walter took responsibility for his role in that shooting by making a guilty plea. "He picked the fight, with the wrong guy," Sapone said. But prosecutors said Walter was actually an enforcer for the Nine Trey Bloods, a gang associated with Tekashi, and even admitted on recordings to carrying a gun for Nine Trey. "He was kind of a go-to guy if something needed to be taken care of," said Assistant U.S. Attorney Michael Longyear. Longyear asked the judge to take into account an Instagram Live video that Walter broadcasted June 1 from a contraband smartphone within his cell at the Metropolitan Correctional Center. 20 EFTA00094407  SDNY News Clips, Wednesday, August 14, 2019 Walter, 29, bragged to his online audience that he was "still standing," Longyear said. Though Walter made no threats, references to the gang, or denials of his guilt in the broadcast, "To us it was a little surprising... that he would still engage in this conduct. He's breaking MCC's rules," Longyear explained. Judge Paul Engelmeyer acknowledged that Walter never actually used the gun he carried for the gang. But he still participated in the gang's violent activity. "You appear to have learned a very hard lesson a very hard way," Engelmeyer said. Walter could be out of jail in three years with good behavior, authorities said. Sapone said Walter joined the entourage to work for Tekashi, not to get involved with the gang. "That's not the job he signed up for," Sapone said. "He wishes he never met Hernandez." Tekashi 69, a trash-talking hip-hop star, pleaded guilty to nine racketeering, gun and drug charges and flipped on his former friends in January. He remains in custody and hopes his cooperation will convince a judge to impose a light sentence. 21 EFTA00094408  SDNY News Clips, Wednesday, August 14, 2019 Civil Division NYCHA NYCHA's overtime spending climbs again. hitting S95 million NY Post By Nolan Hicks 8/13/19 The city's budget has sprung a big leak. Overtime spending at the city's embattled Housing Authority ballooned to $95.5 million last year, as employees labored to correct the scandalous living conditions that led to a partial federal takeover of the agency, new payroll figures from the Empire Center think tank show. Some of the biggest payouts went to NYCHA's plumbers — one of whom took home more than a quarter of a million dollars in total pay thanks to massive overtime. Robert Procida racked up $181,422 after working 1,668 hours in extra shifts. That's an average of 32 hours of overtime a week. It brought his total take-home pay to $286,246 for the year, the Empire Center found. More than half of NYCHA's 13,000 employees worked extra time between July 2018 and June 2019, according to an analysis of payroll data by the conservative group. Overall, New York City spent $1.9 billion on overtime in its most recent budget, according to the figures. NYCHA's overtime spending has risen in recent years, growing 58 percent from the $60.6 million it spent during the city's 2015 budget year. The $95.5 million it spent during the most recent budget is also up. I percent from the $94.5 million it spent during the 2018 budget, which ended in June 2018. A NYCHA spokesman attributed the overtime surge in recent years to growing repair needs and new efforts to combat the agency's chronic heat and water outages, which are often linked to its decrepit pipes and plumbing in its 316 housing developments. That's borne out in who scored the overtime. The authority's 19 plumbing supervisors scored the biggest average overtime payments, earning on average $71,505 from extra shifts. They are charged with supervising and directing the work done by NYCHA's plumbers and other staff in connection with the water, drainage and gas systems at the sprawling public-housing agency. All told, they racked up a combined $1.4 million from 12,492 hours of overtime. 22 EFTA00094409  SDNY News Clips, Wednesday, August 14, 2019 In addition to Procida, who has worked for NYCHA since 1987 and who could not be reached for comment, the other biggest plumbers on the overtime list included Daniel Hock Jr., who got $130,901.16 in overtime, and Jose Ortiz, who got $124,343.01. The u