Month: June 2023

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GSA seeks to transfer of Nobska Lighthouse in Woods Hole, Massachusetts to agency or nonprofit

Source: United States General Services Administration

May 31, 2023

BOSTON – Today, GSA has issued a Notice of Availability for the Nobska Lighthouse in Woods Hole, Massachusetts. The historic lighthouse is available at no cost to eligible entities as part of a federal disposal program enabled by the National Historic Lighthouse Preservation Act (NHLPA) of 2000. This is one of a record number of lighthouses being offered in 2023 to government agencies, nonprofits, and the public via auction.

Under the NHLPA, a property that has been determined to exceed the needs of the U.S. Coast Guard is made available at no cost to eligible entities defined as:

Federal agencies
State and local agencies
Nonprofit organizations
Educational agencies or community development organizations for educational purposes
Park, recreational, cultural, or historic preservation purposes

Each year, the U.S. General Services Administration (GSA), in conjunction with the U.S. Coast Guard, Department of Homeland Security, and the National Park Service (NPS), issues Notices of Availability for historic light stations as part of the NHLPA. Under the NHLPA, the property may be obtained for educational, park, recreational, cultural, or historic preservation purposes.

The lighthouse was added to the National Register of Historic Places in 1987. The 40-foot tall, cylindrical, iron tower was cast in Chelsea, Massachusetts in 1876, and transported to Woods Hole in four sections. It was constructed on site and painted reddish-brown, but is now white. The lighthouse is capped with a standard cast iron lantern that houses a fourth order Fresnel lens.

In addition to the lighthouse, the four-acre property includes the original keeper’s quarters and a brick oil house, and paint lockers, all constructed in 1876. The second keeper’s quarters which is connected to the original was added in 1900. The garage was built in 1931 and the radio building beacon was built in 1937. The keeper’s quarters are Victorian wood frame buildings with gabled roofs.

The property is accessible from Nobska Road east of the harbor entrance. It is an active aid to navigation operated by the U.S. Coast Guard (USCG).

Under the NHLPA, the property may be obtained for educational, park, recreational, cultural, or historic preservation purposes. For complete details on the property, including conditions, range of possible uses, commercial activities, utilities, etc. eligible entities can review the Notice of Availability.

Any eligible entity with an interest in acquiring the property for a use consistent with the purposes stated above should submit a letter of interest to the address below within 60 (sixty) days from the date of this notice.

Letters of interest should include:

Name of property
Name of eligible entity
Point of contact, title, address, phone and email
Non-profit agencies must provide a copy of their state-certified articles of incorporation before the end of the 60-day Notice period.

Eligible entities that submit a letter of interest will be sent an application from the National Park Service (NPS), and given an opportunity to inspect the property. Building inspectors and/or contractors may accompany the applicant on the inspection. The application is due within 90 days from the date of the site inspection.

The NPS will review all applications submitted and may recommend a steward to receive the property. If a recommendation is made, the General Services Administration (GSA) will complete the conveyance to the selected steward with a Quitclaim Deed. Pursuant to Section 305106 of the NHLPA, the property will be sold if it is not transferred to a public body or non-profit organization.

Letters of interest should be directed to:

U.S. General Services Administration
Real Property Utilization and Disposal Division
10 Causeway Street – 11th Floor
Boston, MA 02222
Attention: Sonia Allon-Singh (sonia.allon-singh@gsa.gov)

GSA’s New England Region Real Property Utilization and Disposal Division provides realty services to federal agencies throughout the region, as well as in New Jersey, New York, Ohio, Indiana, Illinois, Michigan, Minnesota, Wisconsin, Puerto Rico and the U.S. Virgin Islands.

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About GSA:
GSA provides centralized procurement and shared services for the Federal Government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing approximately $75 billion in annual contracts, and delivering technology services that serve millions of people across dozens of Federal agencies. GSA’s mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA

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GSA seeks to transfer Warwick Neck Lighthouse in Warwick, Rhode Island to agency or nonprofit

Source: United States General Services Administration

May 31, 2023

BOSTON – Today, the U.S. General Services Administration (GSA) has issued a Notice of Availability for the Warwick Neck Lighthouse in Warwick, Rhode Island. The historic lighthouse is available at no cost to eligible entities as part of a federal disposal program authorized by the National Historic Lighthouse Preservation Act (NHLPA) of 2000. This is one of a record number of lighthouses being offered in 2023 to government agencies, nonprofits, and the public via auction.

Under the NHLPA, a historic lighthouse that is no longer needed by the U.S. Coast Guard (USCG) is made available at no cost to eligible entities defined as:

● Federal agencies
● State and local agencies
● Nonprofit organizations
● Educational agencies or community development organizations for educational purposes
● Park, recreational, cultural, or historic preservation purposes

Each year, GSA, in conjunction with the USCG, Department of Homeland Security (DHS), and the National Park Service (NPS), issues Notices of Availability for historic light stations as part of the NHLPA. Under the NHLPA, the property may be obtained for educational, park, recreational, cultural, or historic preservation purposes.

The Warwick Neck Lighthouse is 51 feet high, capped with a cast iron lantern room, housing a modern light signal. Along with the lighthouse, the 0.8-acre property is improved with a single-family dwelling, detached garage, and a storage shed.

Warwick Neck Lighthouse was built in 1827, and the dwelling was built in 1932. The lighthouse was automated in 1985 and was listed on the National Register of Historic Places in 1988.

The lighthouse, an active aid to navigation (ATON) operated by the USCG, is powered by electricity and includes a fog signal horn. The fog signal is radio controlled and when activated by a user, it signals one blast every 15 seconds for 45 minutes and has a range of one-quarter mile.

For complete details on the property, including conditions, range of possible uses, commercial activities, utilities, etc., eligible entities can review the Notice of Availability.

Any eligible entity with an interest in acquiring the property for a use consistent with the purposes stated above should submit a letter of interest to the address below within 60 (sixty) days from the date of this notice.

Letters of interest should include:

● Name of property
● Name of eligible entity
● Point of contact, title, address, phone and email
● Non-profit agencies must provide a copy of their state-certified articles of incorporation before the end of the 60-day Notice period.

Eligible entities that submit a letter of interest will be sent an application from the National Park Service (NPS) and given an opportunity to inspect the property. Building inspectors and/or contractors may accompany the applicant on the inspection. The application is due within 90 days from the date of the site inspection.

NPS will review all applications and may recommend one applicant to receive the property. If a recommendation is made, GSA will complete the conveyance to the selected entity with a Quitclaim Deed. Pursuant to Section 305106 of the NHLPA, the property will be sold if it is not transferred to a public body or non-profit organization.

Letters of interest should be directed to:

U.S. General Services Administration
Real Property Utilization and Disposal Division
10 Causeway Street – 11th Floor
Boston, MA 02222
Attention: Kevin Legare (Kevin.Legare@gsa.gov)

GSA’s New England Region Real Property Utilization and Disposal Division provides realty services to federal agencies throughout the region, as well as in New Jersey, New York, Ohio, Indiana, Illinois, Michigan, Minnesota, Wisconsin, Puerto Rico and the U.S. Virgin Islands.

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About GSA:
GSA provides centralized procurement and shared services for the Federal Government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing approximately $75 billion in annual contracts, and delivering technology services that serve millions of people across dozens of Federal agencies. GSA’s mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA

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Former Operator of Payza.com Charged with Laundering 450 Bitcoin

Source: United States Department of Justice News

            WASHINGTON – Firoz Patel, 48, of Canada, was ordered detained today following indictment on charges of laundering 450 Bitcoin (BTC), valued at $24,020,699.83 at the time of the transaction, shortly before he reported to prison in another case in 2021. The two-count indictment, unsealed on May 17, 2023, charges Patel with money laundering and engaging in monetary transactions in property derived from specified unlawful activity. U.S. District Court Judge Dabney L. Friedrich, of the U.S. District Court for the District of Columbia, ordered Patel be detained pending trial.

            The announcement was made by U.S. Attorney Matthew M. Graves and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C.

            Previously, Patel, his brother, Ferhan, and their company, MH Pillars, Inc., d/b/a Payza, were prosecuted in the United States District Court for the District of Columbia for operating an Internet-based unlicensed money service business that processed more than $250 million in transactions. Through Payza.com, the defendants ran a money transmitting business that operated without the necessary state licenses and knowingly transmitted funds that were derived from illegal activity. The brothers each pled guilty to conspiracy to commit crimes against the United States by operating an unlicensed money transmitting business and by laundering monetary instruments. As part of his plea agreement, Firoz Patel was required to disclose all known assets to the U.S. government. On November 10, 2020, Patel was sentenced to 36 months in prison and was given a reporting date. The court also entered a forfeiture judgment for “any property, real or personal, involved in” the offense to which Firoz Patel had pled guilty. 

            According to court documents, between his sentencing and reporting dates, Patel transferred 450 BTC, traceable to Payza.com, to an account at a virtual currency exchange in the United Kingdom. The 450 Bitcoin would have been subject to forfeiture in Patel’s previous criminal case. The virtual currency exchange account was opened using the name and date of birth of Patel’s father, but with an email address and phone number controlled by Firoz Patel.  When the virtual currency exchange requested additional information about the account and the large deposit, it received a response in the name of an employee of a company in India affiliated with Payza. The account containing the 450 Bitcoin was ultimately frozen. 

            This matter is being investigated by the Homeland Security Investigations (HSI) Washington, D.C. Field Office.  The case is being prosecuted by Assistant U.S. Attorneys Arvind K. Lal and Christopher B. Brown. 

            An indictment is a formal accusation of criminal conduct, not evidence of guilt.  A defendant is presumed innocent unless proven guilty.

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Court Permanently Bars Five Defendants From Promoting Charitable Remainder Annuity Trust Tax Scheme

Source: United States Department of Justice News

On May 23, the U.S. District Court for the Western District of Missouri permanently barred Rhonda Eickhoff from organizing, promoting, selling or marketing a tax scheme involving the use of charitable remainder annuity trusts (CRATs).

On May 17, the court likewise permanently barred John Eickhoff Jr. and Hoffman Associates LLC from organizing, promoting, selling or marketing a tax scheme involving the use of CRATs. In addition, the court ordered Hoffman Associates LLC, the company allegedly used to promote the scheme, to disgorge $1.1 million and John Eickhoff Jr. to disgorge $400,000. The court previously entered injunctions against defendants John William Gray II and Damon Thomas Eisma stemming from their roles in this scheme. Each defendant agreed to the court orders. The case against two additional defendants for their roles in this scheme remains pending.

According to the United States’ amended complaint, defendants falsely claimed that customers following their CRAT scheme could sell property in a way that eliminated the federal income tax on the gain generated from the sale. The government alleged each defendant took part in one or more of the following steps involved in the scheme: (1) recruiting customers to contribute property to a CRAT (usually real property that has gained value over time); (2) unlawfully inflating (stepping-up) the cost basis in the property on tax documents; (3) selling the property and using the proceeds to purchase an annuity; and (4) falsely reporting the annuity payments received by the customers as tax-free distributions from the CRAT. The government alleged that the defendants promoted, sold, or established at least 70 CRATs, resulting in an estimated $40 million of unreported taxable income.

Abusive arrangements using Charitable Remainder Annuity Trusts remain a concern of the IRS, which recently warned taxpayers about the misuse of this trust arrangement as part of the IRS’s Dirty Dozen series.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.  Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

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Justice Department Secures Over $3 Million Redlining Settlement Involving ESSA Bank & Trust in Philadelphia

Source: United States Department of Justice News

The Justice Department announced today that ESSA Bank & Trust (ESSA) has agreed to pay over $3 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in and around Philadelphia. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities.

The complaint filed in federal court today alleges that from at least 2017 to 2021, ESSA failed to provide mortgage lending services and did not serve the credit needs of majority-Black and Hispanic neighborhoods in the Philadelphia metropolitan area.

“For too long, residents of communities of color have been unlawfully denied equal access to credit and shut out of economic opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When banks engage in redlining, they perpetuate existing patterns of segregation and widen the racial wealth gap in our country. This resolution makes clear our commitment to holding banks and financial institutions accountable for modern day redlining while ensuring access to fair lending in communities of color.”

“Accessing the American dream of owning your own home is possible only when there is equality for all in their opportunities to access lending in the residential mortgage markets,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Redlining in Greater Philadelphia has deep roots; it’s led to decades of disinvestment in communities of color. We appreciate ESSA’s prompt cooperation with the department’s investigation and their efforts that will aim to infuse lending resources and help build wealth in neighborhoods of color.”

Under the proposed consent order, which is subject to court approval, ESSA has agreed to invest at least $2.92 million in a loan subsidy fund to increase access to credit for home mortgage, improvement and refinance loans, as well as home equity loans and lines of credit, in majority-Black and Hispanic neighborhoods in the bank’s lending area. ESSA has also agreed to spend an additional $125,000 on community partnerships and $250,000 on advertising, outreach, consumer financial education and credit counseling, in an effort to expand the bank’s services in majority-Black and Hispanic communities. The consent order also requires the bank to hire two new mortgage loan officers to serve its existing branches in West Philadelphia and conduct a research-based market study to help identify the needs for financial services in communities of color.

The department opened its investigation into ESSA’s lending practices after receiving a referral from the Federal Deposit Insurance Corporation. ESSA fully cooperated with the department’s investigation and worked expeditiously to resolve these allegations.

In October 2021, the department launched its Combating Redlining Initiative as a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the initiative was launched, the department has announced seven redlining cases and settlements and secured $87 million in relief for communities of color that have been victims of lending discrimination across the country.

More information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.