Great Neck resident, 8 others plead guilty to overcharging NYC, state for services for those in need

A Great Neck resident and eight other individuals and corporations have pleaded guilty to a bid-rigging scheme that overcharged New York City and the state for "moving and storage services for public benefit recipients and crime victims," according to Attorney General Letitia James and city Investigation Commissioner Jocelyn E. Strauber.

Since about 2001, five defendants, including Avraham “Avi” Cohen of Great Neck, submitted thousands of false and inflated bids that charged the New York State Office of Victim Services and the New York City Human Resources Administration up to three times the fair market value for moving services, James and Strauber said Tuesday in a news release.

The scheme defrauded government agencies of funds intended to help public benefits recipients, domestic violence survivors and other crime victims in need of relocation services, the release said.

As a result of the pleas, the individuals will pay damages to New York State and New York City, perform community service and be barred from doing further business with state and city agencies.

“It is essential that vulnerable New Yorkers are able to access the help they need to escape dangerous situations quickly and safely,” James said in the release. “Through their actions, the perpetrators of this fraud put profits over people, and put victims of crime and low-income New Yorkers at risk.”

The defendants pleaded guilty to violations of General Business Law and New York Penal Law.

The corporate entities involved are Avi Moving & Trucking Inc. (Avi Moving) of Queens, New York; Baya Inc. of Queens, New York; Fastrac Processing LLC of Queens, New York; and Prime Moving & Trucking LLC (Prime Moving) of Delaware.

On Oct. 17, Cohen and Avi Moving pleaded guilty, according to the release. They were sentenced to a one-year conditional discharge and paid $600,000 in damages. The sentencing of Derek T. Barney of Carteret, New Jersey, and Prime Moving is pending.

Last Thursday, Frank Lopez Jr. of Queens, and Baya Inc., the company he owns, pleaded guilty, were sentenced to a one-year conditional discharge and paid restitution of $200,000 to New York City. 

The state and city agencies would fund moving and storage services for eligible clients, according to the release, and require submission of three competitive bids to ensure that the government paid the lowest price. 

The defendants formed and operated a sham trade association called the United Movers Association, officials said. Each of the moving companies exchanged blank signed bid sheets and agreed that they would use them to submit false bids.

The defendants also operated a fraudulent entity called the Office of Eviction Services, which targeted unwitting clients of both agencies by falsely identifying itself as a governmental or nonprofit organization, according to the release.

"On July 18, 2023, the defendants behind the Office of Eviction Services pled guilty to Scheme to Defraud in the Second Degree, in violation of New York Penal Law," the release said, adding that each was "sentenced to a one-year conditional discharge with the conditions that they perform 100 hours of community service, not commit any further crimes, and not seek to do business with HRA and other agencies."