Inner City Press

In Other Media-eg New Statesman, AJE, FP, Georgia, NYTAzerbaijan, CSM Click here to contact us     .

These reports are usually available through Google News and on Lexis-Nexis

Share |   

Follow on TWITTER

Home -

These reports are usually available through Google News and on Lexis-Nexis


(FP Twitterati 100, 2013)

ICP on YouTube

More: InnerCityPro
Sept 24, 2013

UN: Sri Lanka


FOIA Finds  

Google, Asked at UN About Censorship, Moved to Censor the Questioner, Sources Say, Blaming UN - Update - Editorial

Support this work by buying this book

Click on cover for secure site orders

also includes "Toxic Credit in the Global Inner City"




Bank Beat

Freedom of Information

How to Contact Us

Importer of Clothes From China Bailey Got 6 Months In Otisville Now Restitution With Frei

By Matthew Russell Lee

SDNY COURTHOUSE, Jan 6 – A business man accused of defrauding the U.S. government of over $1 million in customs fees on children's clothing from China, Joseph Bailey, on June 6 was brought in shackles into the U.S. District Court for the Southern District of New York Magistrates Court. Inner City Press was the only media there.

 The government agreed to a $1 million bond; his wife Lisa and his nearly identical son Morris, in the gallery, were given his medicines in a plastic bag.

  After that, the case was repeatedly adjourned, with the adjournment memo-endorseds being virtual the only documents in the docket: from June to September, from September to October, and and October to November 13 at 3:30 pm. Inner City Press went to this long delayed conference before SDNY Judge William H. Pauley, with only one other person in the gallery, and heard Bailey's attorney ask for permission for Bailey to travel to Florida for Thanksgiving.

  In mid January Bailey quietly pled guilty to only one of the counts initially and more loudly brought against him.

On December 22, Bailey was sentenced by Judge Pauley. Bottom line: he got six months in prison, with Otisville recommended, to start in May. Inner City Press live tweeted it, here and below.

 Now on January 6, the order of forfeiture has been signed, providing for $1.7 million, $1.4 million joint and several with Chuck Frei.

 But on January 4, from another of Bailey's victims, this was sent to Judge Pauley: "Dear Hon.William H. Pauly lll   I am following up to a previous email I sent you regarding Joseph Bailey. I am now writing this email on behalf of the employees of Rivstar Swimwear , a division of Stargate Apparel , who lost their jobs because of Joseph Bailey's convicted crime. Not only did Joseph Bailey cheat and defraud the government and good taxpayers of this country, he defrauded   all the good people of Rivstar Apparel and their families. I listened to your sentencing of Joseph Bailey and you commending him on building a business from nothing. I also built a business from nothing. An 18‐million ‐dollar swim business , my life's work for 38 years. In which Joseph Bailey merged it into his Stargate business , calling it Rivstar Apparel . The only difference being Joseph Bailey lost his business because he committed a crime.The innocent Rivstar Apparel people lost their jobs, "due" to   Joseph Bailey committing a crime. I would be happy to discuss how and why my relationship began with Joseph Bailey in 2008 at your convenience . As for now, I would like to ask , where is the restitution for the Rivstar employees that worked  and made Joseph Bailey millions of dollars for over the 11 years  we were with him. These employees were let go due to his crimes with   only 3 weeks severance.   Please your Honor, before finalizing Joseph Bailey's restitution part of his sentence ,help the Rivstar employees. Some of us cannot go back to business as usual because Wal‐mart & Target stores will not do business with us due to our association with Bailey. Our livelihoods have been taken from us. As President of the Rivstar Division and its employees, we ask you to grant us restitution at 2 times the employees annual salaries for their hardships. Below I   have listed the Rivstar employees and their annual salaries for your review. Louis Brindisi ‐  Div. President  $150,000 plus bonus Darin Brindisi ‐   V.P. of All Swimwear $200,000  plus sales comm. John Zunin ‐ Production Head  $140,000 Lisle Quek ‐ Production Asst. $50,000 Meena Kim ‐ Graphic Artist  $80,000 Weiwei Mu ‐ Head Designer  $85,000 Quyen Ma ‐  Asst. Designer  $50,000 Miryam Cortes ‐ Technical Designer $100,000 It was greed that caused Joseph Bailey to commit his crimes.He should pay back the people he hurt most. Your understanding and consideration would be greatly appreciated.   Please let us know your decision.."

From December 22: Defense lawyer Sharon McCarthy: My client pled guilty to wire fraud, under-reporting value of imports of Stargate, $1.6 million understated. COVID hit, so sentencing was delayed until today. Mr. Bailey wanted to expedite it, the stress is exacting a toll.

 McCarthy: Mr Bailey suffers from depression and alcoholism. He is a broken man. He defrauded the government of $1.6 million. He's ready to accept judgment. Probation suggests 24 months, less than the plea agreement.

McCarthy: Mr. Bailey poses no threat of harm to anyone. The only threat here is to Mr. Bailey if he is sent to jail. He would face a 1 in 5 change of contracting COVID, four times higher than if he is out.

 McCarthy: Mr. Bailey is owed $29 million from his companies. If he is incarcerated he will not recoup it. He has spread the word to others not to do what he did. He has spoken at three schools and would do more, once it is safe. There is a video, it has gone viral

 McCarthy: Mr Bailey has spread the word within his Syrian Sephardic community in Brooklyn. If he goes to prison, his 21 employees will be out of work. He will speak directly to the Court later in this proceeding. Assistant US Attorney Dina McLeod: Mr Bailey implicated others in his scheme. Two of his employees are cooperating witnesses. In the beginning it was identical invoices except for the bottom line number. Next was sample invoices.

AUSA McLeod brings up the victim who wrote in, citing Inner City Press. here.

Unclear if they'll be allowed to speak. AUSA: "US Customs is the victim here." So, no.

AUSA: Customs relies on honesty. Mr. Bailey got away with it for a long time. It's unfair to the other businesses he competes with. Now Mr. Bailey is asking for the same sentence as the cooperator, Mr. Fry. Fry was the CFO. It would be an unwarranted disparity

Bailey himself: "Your Honor, my action cause harm to the government, my wife and children, and my community. I violated government law and the law of my own religion, Thou shalt not steal.

Bailey: I've joined AA. I have many check-ins. I attend Zoom meetings several times a week. I shared my story publicly. I have learned about repentance. I am the patriarch of the family. I ask for mercy. Thank you, Your Honor.

 Judge Pauley: Mr. Bailey pled guilty to defrauding the US out of customs duties. He was the leader of the criminal activity. Total offense level 24, criminal history category 1. So, 51 to 63 months guideline.

 Judge Pauley: Mr. Bailey dropped out of high school at 16. He built a successful company. His crime is puzzling. He has agreed to pay restitution. But a loss of liberty is warranted. The guideline is too high, Probation is excessive. So, six months of imprisonment

Judge Pauley: After the six months in prison, three years of supervised release. On restitution, I do not think 10% of income is appropriate, given his assets. Propose an order in two weeks. Surrender will not be soon. It will be May 6, 2021. Or send me a letter

McCarthy: We'd like Otisville camp, so he can have Kosher meals and religious services. Judge Pauley: I'm going to grant that. Mr. Bailey, I think you and your family and business can work through this. Stay safe.

  But how much might the whistleblower get? Watch this site, @InnerCityPress and the new @SDNYLIVE.


Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.

Feedback: Editorial [at]

Box 20047, Dag Hammarskjold Station NY NY 10017

Reporter's mobile (and weekends): 718-716-3540

Other, earlier Inner City Press are listed here, and some are available in the ProQuest service, and now on Lexis-Nexis.

 Copyright 2006-2020 Inner City Press, Inc. To request reprint or other permission, e-contact Editorial [at] for