New York lawyer Steven M. Etkind, CPA, guilty for stealing more than $3.5 million from Deceased Client’s Estate

New York lawyer Steven M. Etkind, CPA, guilty for stealing more than $3.5 million from Deceased Client’s Estate

FOR IMMEDIATE RELEASE
Thursday, September 6, 2018
New York Attorney Pleads Guilty to Tax Fraud Related to Multimillion-Dollar Embezzlement From Deceased Client’s Estate


Steven M. Etkind, CPA, a New York-licensed attorney and former partner at a New York law firm pleaded guilty today to conspiracy to defraud the United States and tax evasion arising from a scheme to embezzle millions of dollars from a deceased client’s estate, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Geoffrey S. Berman for the Southern District of New York.

“The fiduciary duty that a lawyer owes to a client is paramount to the practice of law,” said Principal Deputy Assistant Attorney General Zuckerman. “The Justice Department will prosecute and seek just punishment against any attorney who victimizes their clients for their own personal gain.”

“As he admitted in court today, Steven Etkind violated the law, the canons of his profession, and the trust of his client by stealing more than $3.5 million from the client’s estate,” said U.S. Attorney Berman. “Etkind now awaits sentencing for his crimes.”

According to court documents and statements made in court, Steven M. Etkind was a partner at a New York law firm’s tax, trusts and estates group and a Certified Public Accountant. Etkind performed legal work for a successful entrepreneur client, who passed away in 2008, naming Etkind as the co-executor of his $35 million estate.

The client’s will directed the creation of two charitable trust private foundations, funded with assets from the client’s estate, for the sole purpose of donating to 501(c)(3) charitable organizations, including those aimed at assisting Jewish-sponsored organizations. Etkind was named co-trustee of these trusts.

Beginning in 2009, Etkind and his co-conspirator set up a phony charitable organization, the United Jewish Education Foundation (UJEF), and used it to steal more than $3.5 million from these charitable trusts. As part of the conspiracy, Etkind directed that donations from the trusts be first made to legitimate Jewish charitable organizations in order to give the disbursements the appearance of legitimate donations. Etkind and his co-conspirator then redirected the funds to accounts of UJEF, the phony charity that his co-conspirator controlled.

Etkind subsequently directed his co-conspirator to write checks, totaling $327,500, to a bank account in the name of JE Capital Holding Corp., a nominee corporate entity that Etkind controlled exclusively. Etkind further directed more than $3 million to be used in 2010 to purchase a 6,300 square-foot home with a swimming pool in Southampton, New York. The Southampton property was purchased for the use and enjoyment of Etkind and his family. Etkind later transferred title of the property to JE Trust, a nominee trust he controlled.

To conceal his embezzlement, Etkind filed, and caused to be filed, fraudulent personal, corporate, and charitable trust returns with the Internal Revenue Service (IRS). During the course of a subsequent audit of UJEF by the IRS Tax Exempt & Government Entities Division, Etkind and his co-conspirator made several false and misleading statements, including about the true ownership of the Southampton Property.

United States District Judge John G. Koelt scheduled Etkind's sentencing for January 18, 2019. Etkind faces a statutory maximum sentence of five years in prison on the conspiracy charge and five years in prison for tax evasion. He also faces a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Berman praised the outstanding efforts by special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Jorge Almonte and Jack A. Morgan of the Tax Division, who are prosecuting the case, as well as the IRS’s Tax Exempt & Government Entities Division for their assistance in the investigation.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

========================

• Partner

  Steven Etkind

  February 2018 – Present (8 months) New York City
  Mr. Etkind has created hundreds of estate plans, ranging from a few million dollars in size to those in the hundreds of millions of dollars. Mr. Etkind has represented trust companies or business owners in numerous ESOP transactions, advised many businesses and private investment partnerships on taxation, corporate transactions, business succession issues and employee incentive strategies.
  
  Mr. Etkind has been quoted in The New York Times, Barron’s, Money Magazine and many other publications.
  
  
  Tax Representations Include:
  
  Structured an inbound investment of loans to other lenders in the U.S.
  
  Structured the ownership of broker/dealer holdings owned by offshore persons and U.S. persons.
  
  Structured the rollup of 45 subsidiaries into a holding company and subsequently configured the sale of the holding company's shares to a regulated entity, to provide the legal framework for the structure to unwind without income tax, should the regulated entity not receive government permission to proceed.
  
  Represented several individuals in tax controversy cases involving undeclared offshore bank accounts and other financial assets which were not properly reported.
  
  Structured hundreds of offshore investment companies.

civil enforcement action against Azure Fishery LLC, the company’s managers, the operator of the commercial fishing vessel Jaxon T, and the new owner of the vessel for violations of the federal Clean Water Act Over Illegal Oil Discharges into the ocean offshore of Hawaii

FOR IMMEDIATE RELEASE 

Friday, September 7, 2018 

United States Files Complaint Against Hawaii Fishing Companies, Managers, and Vessel Operator Over Illegal Oil Discharges and Lodges Partial Settlement With Managers


The United States filed a civil enforcement action against Azure Fishery LLC, the company’s managers, the operator of the commercial fishing vessel Jaxon T, and the new owner of the vessel for violations of the federal Clean Water Act, the Department of Justice and U.S. Coast Guard announced today. Along with the filing of the complaint, the United States also lodged a partial settlement to resolve the claims against the two company managers, Hanh Nguyen and Khang Dang, who have agreed to pay $475,000 in civil penalties and reimbursements. The managers also committed to perform operational improvements and other compliance measures to their entire fleet of 25 longline fishing vessels based in Honolulu. The claims against the rest of the defendants remain for future adjudication.

The complaint, filed in the U.S. District Court for the District of Hawaii today, alleges five causes of action against six defendants: Azure Fishery LLC, company managers Nguyen and Dang, company member and prior owner Tuan Hoang, vessel operator Andy Hoang and current owner Linh Fishery LLC. The complaint alleges willful discharges of oil, including oily bilge water, from the commercial longline fishing vessel Jaxon T, now known as the St. Joseph, into the ocean offshore of Hawaii, as well as related violations of the Coast Guard’s longstanding spill prevention and pollution control regulations, including failure to provide sufficient capacity to retain all oily mixtures on board. The complaint further alleges that in order to extend the length of fishing voyages, the defendants routinely pumped a mixture of fuel oil, lubricating oils, water, and other fluids from the vessel’s engine room bilge into the Pacific Ocean rather than retain the waste on board. The United States alleges that Azure Fishery LLC and the company managers and vessel operator are each liable for civil penalties under the Clean Water Act for discharging oily mixtures into the waters off Hawaii. The United States also seeks injunctive relief from these same defendants and Linh Fishery LLC, the current owner of the vessel.

“A thriving commercial fishing sector in Hawaii and other parts of the United States largely depends upon keeping our ocean environments free of harmful pollution,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Today’s action shows that the Justice Department is as committed as ever to enforcing the nation’s vessel pollution laws in close partnership with the U.S. Coast Guard.”

“This is the fourth case we have brought this year involving illegal oil discharge practices in the Honolulu-based longline fishing fleet,” said Rear Adm. Kevin Lunday, Commander, Coast Guard 14th District. “All vessel owners and operators are responsible for maintaining their vessels and preventing illegal discharges of oily wastes into the ocean. We are committed to the people of Hawaii to protect our waters and the Pacific Ocean from the damage caused by illegal pollution.”

“We will continue to protect our precious natural resources by enforcing the Nation’s environmental laws,” said U.S. Attorney for the District of Hawaii Kenji M. Price. “This settlement, and the other tremendous work performed by the law enforcement community in this area, should encourage owners and operators to proactively make necessary repairs and improve their waste disposal practices. Violators who fail to act on this message will face similar, or more severe, consequences.”

The complaint further alleges that company managers Nguyen and Dang fraudulently transferred the vessel to the current owner, Linh Fishery LLC, shortly after the Coast Guard discovered the violations in March 2017. Because the sale of the vessel and distribution of the proceeds to company members rendered Azure Fishery LLC insolvent and thus otherwise unable to pay a civil penalty, the complaint seeks recovery of the value of the fraudulently transferred vessel from the beneficiaries of the transfer, Linh Fishery LLC, Hanh Thi Nguyen, Khang Nguyen Dang, and Tuan Ngog Hoang, under the Federal Debt Collection Procedures Act (“FDCPA”), 28 U.S.C. § 3001 et seq.

Contemporaneously with the filing of the complaint, the United States has lodged a partial consent decree addressing the claims against company managers Nguyen and Dang. Under the settlement, Nguyen and Dang will each pay $211,000 for the Clean Water Act penalty claims against them and they will jointly pay an additional $53,000 for their apportioned share of the fraudulent transfer claim under the FDCPA. Moreover, they will perform corrective measures across their fleet of 25 Hawaii-based longline fishing vessels. The corrective measures are designed to ensure safe and lawful operations going forward and include (1) repairing the vessels to reduce the quantity of oily waste generated during a fishing voyage; (2) obtaining independent verification of repairs; (3) providing crewmembers with training on the proper handling of oily wastes; (4) documenting proper oily waste retention during voyages and disposal after returning to port; and (5) submitting periodic compliance assurance reports to the Coast Guard and the Department of Justice.

Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. Under the act, the Coast Guard also has promulgated spill prevention and pollution control regulations for vessels and other facilities. Overboard discharges of oily mixtures, whether by directly pumping out oily bilge water that has not been properly treated, or by attempting to pump only the portion of the oily bilge water beneath a floating oil layer in the bilge (so-called decanting), has long been unlawful under federal law. Eliminating oil discharges into the ocean helps protect people, birds, fish, marine mammals, sea turtles and other natural resources.

Under the terms of the Clean Water Act, the penalties paid for these violations will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.

The proposed partial consent decree, lodged in the District of Hawaii, is subject to a 30-day public comment period and court review and approval. Copies of the consent decree are available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html. 

ST. JOSEPH

Owner Name: LINH FISHERY, LLC

Owner Address: 1108 CLIO ST, HONOLULU, HI 96822-2701, USA

Master Name: NGUYEN, THIEN

Master Nationality: United States of America

Reg Port: Honolulu

Built in Country: United States of America

Built in Year: 1987

Crew: 6

Length: 91.40

Length Units: Feet

Length Type: REGISTERED

Moulded Depth: 12.40

Moulded Depth Units: Feet

Beam: 24.00

Beam Units: Feet

Tonnage: 198.00

Tonnage Type: GRT

Engine Power: 670

Power Units: HP

Freezer Types: Ice

Freezing Capacity: 3

Freezing Capacity Units: tons/day

Number of Freezers: 1

FishHold Capacity: 23

FishHold Cap Units: MT

Flag: United States of America

Registration Number: 916657

IRCS: WDJ5013

Vessel Type: Tuna longliner

WIN: WDJ5013

IMO-LR: 8855827

VID: 5707

Submitted by CCM: United States of America

Attachments: 

Communication Details: NONE

Fishing Methods: Drifting longlines

The luxury ship Star Pride, operated by Windstar Cruises, making a cruise from Iceland to New York lost power off Cuttyhunk Island the propulsion and auxiliary engines were shut down automatically after a loss of cooling water

The U.S. Coast Guard says it is at the scene of a disabled cruise ship in Buzzards Bay on Cape Cod on Friday afternoon.

The disabled vessel, the 376-foot Star Pride, is a luxury ship that was making a cruise from Iceland to New York. It was scheduled to make its maiden docking in Manhattan on Saturday.

There are more than 350 people on board, but none were injured.

The Fairhaven harbormaster said the ship lost power off Cuttyhunk Island.

"There was a strong vibration for about five or 10 seconds," said passenger Jose Kirchner. "Then we lost cabin lights, we lost forward power, so we slowly slowed down and we were basically adrift."

The ship was anchored while the Coast Guard and tug boats raced to the scene.

After 5:30 p.m., the Coast Guard said the ship had regained power. It remained anchored for some time, but Windstar Cruises, the company that operates the Star Pride, said around 9 p.m. that it was on the move to Newport, Rhode Island, where it will be inspected.

The ship's arrival in New York has been delayed.

"By and large most people are concerned about what are we going to do tomorrow," said Kirchner. "What about our flights, that kind of thing."

Windstar Cruises says the propulsion and auxiliary engines were shut down automatically after a loss of cooling water. After the power was restored, operations returned to normal and passengers were served dinner.

"At no time were the 191 passengers and 160 crew and ship at risk," the cruise line said in a statement. "During the time the ship was without propulsion, the Star Pride was on emergency generator power including power to navigational equipment and essential safety systems as well as basic comforts for the passengers and crew."

Different Types of Protections on a Ship’s Marine Engine

Basically there are four main types of protection systems used to safeguard propulsion engine:

1.   Alarm: In case of deviation of engine parameters from a set value, an audible and visual alarm will sound which will give an early warning of the problem.

2.   Slow down: It is the next stage of protection when actions taken are not sufficient to control the ongoing problem; hence engine slow down is done to counter the disturbed parameter.

3.   Shut down: When there is a higher fluctuation in the engine parameters which can harm other systems of the engine, the shut down protective devices cut off the fuel supply and the engine stops.

4.   Starting Interlock: This will not allow the engine to start from the stand-still condition if some important system within the engine has not been operated or arranged properly.

Different Engine Slow Down Situations

In this situation the main engine will come to dead slow RPM i.e. below 30 RPM as the slow down protection gets activated. Following are different slow down situation for main engine:

• Lube oil pressure falls to 1.5 bar

• Cam shaft pressure falls below 2 bar

• There is no flow of piston cooling media (water or oil)

• Oil mist detector or Main bearing sensors has been activated

• Lube oil temperature at the inlet of engine is high > 60 deg C

• Piston Cooling temperature is  high > 75 deg C

• Jacket water Temperature is high > 88 deg c

• Engine cylinder exhaust temperature is high > 450 deg C

• Scavenge air temperature is high > 65 deg C

• Thrust block temperature is high > 75 deg C

• Low flow of Cylinder lube oil

• Control air pressure is low < 5.5 bar

Different Shut down Situations

• Lube oil inlet pressure to engine is very low <1 bar

• Cam shaft Lube oil pressure is very low < 1.5 bar

• Very high Jacket cooling water temperature >95 deg C

• Low Jacket cooling water pressure < 0.1 bar

• No flow of Cylinder lube oil

• Thrust block temperature very high > 90 deg C

• Lube oil inlet pressure for turbocharger is low < 0.8 bar

• Over speed of the engine which activates shut down at 107 % of Max. continuous rating MCR

Different Starting Interlocks are

• Turning gear engage interlock

• Auxiliary blower off interlock

• Lube oil and other important pump not running interlock

Apart from safety protections on a ship’s engine, various other systems to ensure that various other operations are not affected.

The risk of direct impacts associated with Tropical Strom Florence along the U.S. East Coast next week has increased

442 WTNT31 KNHC 090843 TCPAT1 BULLETIN Tropical Storm Florence Advisory Number 40 NWS National Hurricane Center Miami FL AL062018 500 AM AST Sun Sep 09 2018 ...FLORENCE EXPECTED TO BECOME A HURRICANE TODAY...

SUMMARY OF 500 AM AST...0900 UTC...INFORMATION
----------------------------------------------
LOCATION...24.5N 55.8W
ABOUT 765 MI...1235 KM SE OF BERMUDA
ABOUT 640 MI...1030 KM NE OF THE NORTHERN LEEWARD ISLANDS
MAXIMUM SUSTAINED WINDS...70 MPH...110 KM/H
PRESENT MOVEMENT...W OR 270 DEGREES AT 6 MPH...9 KM/H
MINIMUM CENTRAL PRESSURE...989 MB...29.21 INCHES


WATCHES AND WARNINGS
--------------------
There are no coastal watches or warnings in effect.


DISCUSSION AND OUTLOOK
----------------------
At 500 AM AST (0900 UTC), the center of Tropical Storm Florence was
located near latitude 24.5 North, longitude 55.8 West. Florence is
moving toward the west near 6 mph (9 km/h), and this general motion
is expected to continue today.  A west-northwestward motion with an
increase in forward speed is expected by Monday, and that motion is
forecast to continue through mid-week.  On the forecast track, the
center of Florence will move over the southwestern Atlantic Ocean
between Bermuda and the Bahamas Tuesday and Wednesday, and approach
the southeastern U.S. coast on Thursday.

Maximum sustained winds are near 70 mph (110 km/h) with higher
gusts.  Florence is expected to become a hurricane today and rapid
intensification is likely to begin by tonight.  Florence is forecast
to become a major hurricane on Monday.

Tropical-storm-force winds extend outward up to 125 miles (205 km)
from the center.

The estimated minimum central pressure is 989 mb (29.21 inches).


HAZARDS AFFECTING LAND
----------------------
SURF:  Swells generated by Florence are affecting Bermuda and are
beginning to reach portions of the U.S. East Coast.  These swells
are likely to cause life-threatening surf and rip current
conditions.  Please consult products from your local weather office.


NEXT ADVISORY
-------------
Next complete advisory at 1100 AM AST.

======================================= 

Tropical Storm Florence Discussion Number  35
NWS National Hurricane Center Miami FL       AL062018
1100 PM AST Fri Sep 07 2018

Florence remains a sheared tropical cyclone.  Satellite images
indicate that the low-level center is partially exposed on the
southwesterly edge of a large convective mass, with the overall
circulation somewhat elongated from southwest to northeast.
A blend of the latest Dvorak wind speed estimates from TAFB/SAB and
the CIMSS SATCON gives a value of 50 kt for this advisory.

While the winds at 200 mb are already from an easterly direction
near the center of Florence, there is significant shear from
northwesterly winds from 300-500 mb, undercutting the outflow layer.
This shear is forecast to relax by the global models over the next
36 hours as an anticyclone builds to the north of the storm, which
should promote some strengthening by Sunday. After 48 hours, the
deep-layer flow becomes easterly near the cyclone, with very little
shear while the system is over very warm waters.  This pattern
favors significant intensification, and most of the guidance brings
Florence back to a category 4 hurricane in 4 or 5 days.  The
intensity forecast is very similar to the last one, and is raised
slightly at days 3 and 4 to come into better agreement with the
guidance.  It is interesting to note that even with a lower initial
intensity, the guidance is higher than the last cycle, which speaks
to the strength of the signal for intensification in the long range.

The initial motion estimate is 265 degrees at 6 kt.  Florence is
expected to continue moving slowly westward for the next 48 hours
under the influence of a weak mid-level ridge over the western
Atlantic.  By days 4 and 5, an exceptionally strong blocking ridge
is forecast to develop between Bermuda and the Northeast U.S. and
build westward, keeping Florence on a west-northwestward trajectory
with a notable increase in forward speed by the end of the forecast
period.  It feels like a broken record to mention that the overall
guidance envelope keeps shifting southwestward, and the official
forecast is moved in that direction.  Unfortunately with such a
large well-defined steering current from the ridge becoming likely,
the extended-range risk to the United States keeps rising, which is
confirmed by the majority of the latest ensemble guidance.

Key Messages:

1. Regardless of Florence's eventual track, large swells are
affecting Bermuda and will begin to affect portions of the U.S.
East Coast this weekend, resulting in life-threatening surf and rip
currents.

2. The risk of other direct impacts associated with Florence along
the U.S. East Coast next week has increased.  However, there is
still very large uncertainty in model forecasts of Florence's track
beyond day 5, making it too soon to determine the exact location,
magnitude, and timing of these impacts.  Interests near and along
the U.S. East Coast should monitor the progress of Florence through
the weekend and ensure they have their hurricane plans in place.

Workers and the Public to be Vigilant And Mindful of Hazards During Tropical Storm Gordon Cleanup

U.S. Department of Labor Urges Workers and the Public to be Vigilant And Mindful of Hazards During Tropical Storm Gordon Cleanup

ATLANTA, GA – 

Emergency crews and residents of the Gulf Coast region of Florida, Alabama, and Mississippi faced with debris caused by Tropical Storm Gordon should be aware of hazards they may encounter and take steps to stay safe, the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) urges.

"Workers involved in storm cleanup can face a range of safety and health hazards," said Occupational Safety and Health Administration Regional Administrator Kurt Petermeyer. "Risks can be minimized with knowledge, safe work practices, and personal protective equipment."

Cleanup work after the storm may involve hazards related to restoring electricity and communications, debris cleanup, roof repair, and tree trimming. Only those with the proper training, equipment, and experience should conduct cleanup activities.

Protective measures for cleanup activities after a weather disaster should include the following:

• Evaluating the work area for hazards
• Fall protection for elevated surfaces
• Assuming all power lines are live
• Using chainsaws, portable generators, ladders, and other equipment properly
• Using personal protective equipment, such as gloves, hard hats, hearing and foot protection

OSHA maintains a comprehensive website with safety tips to help employers and workers. Individuals involved in response and cleanup efforts may call OSHA's toll-free hotline at 800-321-OSHA (6742) or visit the Agency's website to reach representatives in Alabama, Florida, and Mississippi who can provide on-site assistance. Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.