NEW YORK -(Dow Jones)- A money manager based in the Bay Ridge section of Brooklyn, N.Y., has been indicted in a Ponzi scheme that prosecutors say operated for three decades and involved more than $40 million.

Philip Barry, who ran a [...]]]> Who knew there was that much money floating around the neighborhood? Story shamefully linkjacked from here.

NEW YORK -(Dow Jones)- A money manager based in the Bay Ridge section of Brooklyn, N.Y., has been indicted in a Ponzi scheme that prosecutors say operated for three decades and involved more than $40 million.

Philip Barry, who ran a group of companies collectively known as Leverage Group, was charged Thursday in an indictment with securities fraud and 20 counts of mail fraud.

….Barry allegedly ran Leverage Group until February 2009 as a Ponzi scheme, paying returns to earlier investors from money received from other, newer investors, prosecutors said.

Prosecutors previously said that Barry approached them in August 2008, allegedly admitting that in the past he made payments to Leverage Group investors in part by using new investor money. The investigation has been ongoing since then.

The original SEC filing can be found here (sec.gov). It’s really gotta be one of the most stark first paragraphs in an SEC filing.

The Securities and Exchange Commission today charged a Brooklyn money manager for running a $40 million Ponzi scheme in which he promised approximately 800 investors guaranteed high returns from safe, liquid investments, but instead spent their money on real estate, his pornography mail order business, and other interests.

We hear at Bayridgistan are a blue-collar group. Much like the current Fox News-sponsored gold rush, the securities and derivatives hype of yesteryear reads as another Big Finance hustle–another way to get the workingman’s dollar to finance the back end of an investment fad. Just remember.. it’s always the last Ponze that’s the brokest.

Here’s some perspective on the “Madoff of Brooklyn” from dailyfinance.com. Here’s a particularly bizarre, and locally relevant section

Unlike Madoff’s investors, who were quick to clamor for their money, Barry’s customers seem more circumspect. Some, including New York State Conservative Party chairman Michael Long — who lost $15,000 with Barry — are convinced that Barry invested in good faith but was done in by the shaky financial and real-estate markets.
Of course, others haven’t been quite so forgiving. Barry’s various companies, including Philip Barry LLC, the Leverage Group, North American Financial, and Saint Joseph Development Corp., face a host of lawsuits. Apparently, Barry promised a minimum return of 12.55 percent to most of his customers but wouldn’t allow them to withdraw their funds. However, the biggest claim is that Barry, like Madoff, used money from new investors to pay off old ones. If that proves true, this classic “Ponzi” scheme will be the end of Barry.

In light of this, we here are relieved to see at least a little progress in the right direction.

The bill creates a new Consumer Financial Protection Agency (CFPA), imposes new curbs on the multitrillion-dollar derivatives market and sets up a new system for dissolving failing financial firms.

Exposure to music helps children develop a life-long apprecaition for the arts. Music Adventures is an innovative program that encourages creative expression through music, dance and related arts.

Check out the schedule (and some more details), bring out [...]]]> Santa (or a reasonably affordable facsimile) will be stomping down Third Avenue this friday. As part of a promotional campaign..”Santa will stop at designated locations along Third Avenue to give out gifts for the children and a guide to local merchants offering Shop Brooklyn bonus deals.”

Check out the schedule (and some more details), bring out the kids…. (possibly an umbrella).  Tip of the Hat for doing something nice in the community to the folks at www.thirdavenuebayridge.com ,  and http://lovebrooklyntoursandevents.com/

WHEN

Friday, November 27th, 12:00 p.m.

WHERE

Kickoff at 88^th Street & 3^rd Avenue with Brooklyn Borough President Marty Markowitz, The Merchants of Third Avenue Civic Improvement Association, representative from Senator Marty Golden, Councilman Vincent Gentile and other local leaders.

Santa’s stops on Third Avenue are scheduled as follows:

1:00 p.m.                  91^st Street
1:30 p.m.                  97^th Street
2:15 p.m.                  75^th Street
2:45 p.m                   68^th Street
3:30 p.m.                  71^st Street
4:00 p.m.                79^th Street
4:30 p.m.                84^th Street

Bring a camera to take pictures with Santa.

Participating merchants offering Shop Brooklyn bonus deals include:

Added Attractions
A Gift to Remember
Bay Ridge Bicycle World
Bookmark Shoppe
Bodhi Salon
Cebu
Chef with Sole
City Couture
Creations with Inspiration
Greenhouse Café
The Green Spa & Wellness Center
Gossip
Heart to Heart
The Hutch
HoM
Ivy Bakery
Jenny Lynn Clothing
Kaleidoscope Toy Store
Learning Lab
Lola’s Boutique
Nordic Delicacies
Run for Your Life
The Village
Yellow Hook Grille

And more…

This event is brought to you by the Merchants of Third Avenue Civic Improvement Association.  www.thirdavenuebayridge.com

–Understand the buying habits and desires of the community;

–Gain insight from local consumers [...]]]> The Merchants of Third Avenue Civic Improvement Association, a non-profit serving the Third Avenue retail corridor for over 30 years is conducting a study, an in-depth survey of local residents that will help:

–Understand the buying habits and desires of the community;

–Gain insight from local consumers to improve business practices, products and promotions;

–Communicate with the community about events, new store openings and special offers;

–Identify type of businesses people want on the Avenue in order attract the right retailers to fill vacant spaces on the Avenue

Where do you shop?

Where do you eat?

What type of businesses would you like to see on Third Avenue?

TAKE THE THIRD AVENUE SURVEY! Go to www.thirdavenuebayridge.com and click on the survey link!

Did you know most of the businesses on Third Avenue are owned by our neighbors?  By completing this survey and providing information about where you shop and dine and what you’d like to see happen on Third Avenue, you can help ensure that Bay Ridge continues to flourish and remains a desirable and enjoyable place to live.

What’s in it for you (besides a better Third Avenue of course)? All survey participants providing contact information will be entered to win one of ten $100 gift certificates to local businesses including restaurants, spas and retail stores.

The Third Avenue Survey is a project of The Merchants of Third Avenue Civic Improvement Association, dedicated to promoting and supporting the merchants of Third Avenue.   The Market Survey is made possible by grant funding from the New York City Department of Small Business Services and support by local elected officials including Senator Martin Golden and Councilman Vincent Gentile.

Written by Rosalie Drago

Any Bay Ridge resident who strolls the avenues knows that every few weeks a new business opens while another vacant storefront, with skeletal remains of shelves and [...]]]> Open and Closed:  A case for the life of a small business in Bay Ridge

Written by Rosalie Drago

Any Bay Ridge resident who strolls the avenues knows that every few weeks a new business opens while another vacant storefront, with skeletal remains of shelves and tables bears the FOR RENT signs.

Though there are many economic development studies dedicated to the workings of a retail corridor, it is difficult to be purely scientific about analyzing the problem.  One can compare demographic data and look at trends of course.  There is also the conversation with the local businesses and residents that shed at least a little light on the subject.

The obvious and most prominent culprit for the struggle and demise of many businesses in the past year is the economic crisis.  Nearly all small businesses rely on a credit line to pay their bills.  In order to keep customers coming in they have to order product, in advance of the customer service.  To operate a small restaurant, spa or retail shop most owners require between $15k and $30k credit to purchase goods and pay expenses.  Each month that credit line gets paid down when customers come in and spend money.   When the market crashed last year, many banks pulled the store owner’s credit lines.  If a store owner didn’t have several thousand of their personal money saved they couldn’t operate.

What is not so clear is why, when credit lines weren’t an issue, some businesses lived on while others closed their doors.  Putting aside those businesses that did not do their research in the market and had no prior experience in the type of place they opened, let’s look at a few examples.  Over the course of a few weeks I surveyed about 30 residents and talked with stores who are staying afloat, flourishing as well as those who have invested thousands in a new business only to lose it all and walk away.

One of the most curious cases of a store that didn’t last was Chip Shop.  Owner Chris is successful, with business increasing at his other two Brooklyn locations on 5^th Avenue and Atlantic Avenue in spite of tough economic times.  Chris told me he used all the same promotional tools when he opened his store in Bay Ridge as he did at his other locations: joined the local association, advertised in local papers – to no avail.  “The people just never came” he said.

When asked people shopping on Third Avenue about Chip Shop one answer emerged consistently – location. Many people said they rarely venture past 77^th Street to dine, doing most of their dining between 77^th and 101^st. A few others said they didn’t like the service and when asked if other local restaurants provide better service they admitted that, they don’t always, but since they know the owners they are quicker to forgive any mishaps.  For Chip Shop, any Bay Ridge customers they did attract are now visiting them at the Park Slope location.

While several business owners agreed that a location in the 80’s would have been more conducive to success, they had a few other things to add.

“Failure is not an option, this is my only business” said Marianna, owner of Lola’s Boutique who recently expanded and moved from 86^th Street to Third Avenue.  “Maybe they compared sales to the other stores and thought this wouldn’t be profitable.  I have had to dip into my own pocket over the years to survive, but I can’t just walk away.”

“Many Bay Ridge residents are a bit xenophobic of businesses coming here from other neighborhoods. We had people coming in when we first opened who were practically “accusing” us of being a chain from the city.  It was hard for them to accept the fact that we were locals, in my case a 4th generation local.  Now that we’ve been there a year, more people are starting to give us a chance.” Says Allison, who owns and operates Rob celli’s “In other neighborhoods, when a new place opens people will flock to it just because its “new” and “exciting”. In Bay Ridge, everything is a routine- people go to the same places to buy the same things on the same days. You need to be around long enough to become part of that routine.”

Sheila, Maria and Maureen, owners of The Green Spa & Wellness Center agreed. “The Bay Ridge customer is very different than that of other neighborhoods.  Many people living in Bay Ridge either grew up here, returned here, have family here.  Other areas of Brooklyn have a more diverse and transitory group of people who are moving in from Manhattan or other areas.  In our experience, Bay Ridge residents want the personal relationship and recognition.”

So what has made these businesses succeed? Perseverance, flexibility and a committed local market.

For The Spa it is the clients. “We truly credit loyal guests who we have developed close relationships over the years and are thankful that they continue to stay with us.” Being hospitable to those loyal customers is the key according to Maureen. “I come from an Irish family when someone came to visit our home; we invited them in for a cup of tea and a snack. They stay a little longer and you have a nice experience together. The point is not to literally feed everyone that walks in your door – if you are a toy store – but find out what you r guest is hungry for and add it to your business.”

What do they cite as they keys to their success?   Constantly analyzing business, making changes and creating reasons for customers to come back.

According the Allison being able to change with the economy and keeping our business plan flexible is their main focus. “People said that they wish we had seats so they could sit down, eat and hang out with us.  We added seats a few weeks ago for this purpose, and we’re seeing a whole new clientele come in along with our regulars. We also decided to try run with one of our particular strengths.  I’d run a successful custom baking company in Bay Ridge for almost 8 years, so I brought that back in the form of our cupcakes and they became more popular than we could have imagined.  We’ve been written up nationally, had orders from across the countries, and had people travel across the country specifically to try our cupcakes!”

For Maureen at The Green Spa is a cycle of getting feedback, tweaking the business and hosting events.  “We are continuously making changes and focusing on something new.  At times our concentration is with our online business, at others it is studying our products and new products that are coming out on the market, at other times it is training our staff on new treatments and practices, at other times there is a focus on special events and spreading the word.”

What have you learned as a result of running a business in Bay Ridge?

“Owning a business here taught me a very important lesson about my own shopping habits” says Allison “if there’s something in the neighborhood that you love and you don’t support it, don‘t be surprised if it goes away”

Advice from the ladies at The Green Spa? “Networking and patronizing local businesses.  .  It definitely comes back to you in some way… either those businesses return the loyalty or recommend you within the neighborhood.”

While the best business practices that local store owners mentioned are a sure win.  What customers want still seems to be an intangible.  To that end, the Merchants of Third Avenue Civic Improvement Association will be conducting a market survey to understand what residents of Bay Ridge want from their shops and restaurants.  That survey will be available after October 4^th on their website www.thirdavenuebayridge.com and in print at many of the local businesses.

Rosalie Drago is a consultant providing marketing and economic development services to neighborhoods and small business in Brooklyn. She works with neighborhood associations to create programs, events and conduct research that provide the much-needed support to help small businesses survive and prosper.  For more information visit www.dragobrooklyn.com.

To hear the Republican Assembly Campaign Committee tell it, two-term Staten Island Democrat Janele Hyer-Spencer is responsible for all the dysfunction [...]]]> Best explained by Andrew Hawkins of New York Capital News (how does CUNY keep turning out so many good journalists?– pls note the bold area… way to nab a memorable quote. My favorite this year.)

To hear the Republican Assembly Campaign Committee tell it, two-term Staten Island Democrat Janele Hyer-Spencer is responsible for all the dysfunction in New York, from joblessness to soaring energy costs to the state’s overwhelming tax burden…

Unsatisfied with their position as a permanent minority, Assembly Republicans, down to a new membership low, are determined to capitalize on what they believe is an anti-incumbency mood among voters by winning as many seats back from the Democrats next year as they can.

Hyer-Spencer’s response?

Hyer-Spencer said that she will always be a target for Republicans as long as her district represents such a narrow margin between Democratic and Republican voters.

“It could be me or Mother Teresa holding the seat,” she said. “It’s not the person they give a shit about, it’s the seat they want back.”

A rather candid analysis.

Check out the rest of the details, including just how close the last two races for her seat have been, by clicking here or visiting http://www.nycapitolnews.com/news/126/ARTICLE/1596/2009-11-17.html

Perhaps this is the dawn of a grittier Janele Hyer-Spencer–JHS: the Brooklyn Brawla.

We welcome the candor.

Friday, November 20, 2009; 8:50 PM

To read more, click here or visit http://www.washingtonpost.com/wp-dyn/content/article/2009/11/20/AR2009112004194.html

The scene on Friday night was one of curses, anger and [...]]]> Over the course of the last two nights, due to construction, R trains service has been scuttled between 36th street and 95th street. Instead, shuttle buses were provided for those unfortunate enough to need the R train between the hours of 11pm and 6 am.

The scene on Friday night was one of curses, anger and typical MTA pandemonium. Surprised late-night straphangers were told N train service was being re-routed over the D line and that to reach any stop between 36th and 95th on the R they would need to transfer to the shuttle bus. On the platform, two unfortunate MTA employees directed the surly crowds. In 15 minutes, we recorded at least 8 instances of the MTA employees catching some form of flack or verbal abuse.

Outside, the line for the shuttle train looked more like a puffy-eyed blue-collar mosh pit. Exhausted late night workers stood waiting for the bus between 5 and 25 minutes. When the occasional bus arrived, during the 40 minutes of observation, not a single one had enough room for everybody. Some of the slower or older of the straphangers, as such, ended up waiting two or three rounds of buses. Sometimes this meant a 25 minute wait in the freezing cold. One MTA employee stood and ushered the disgruntled riders onto whatever buses finally came around the corner. Cabbies were on the scene like free pez was being given out. With so few buses available, and a palpable, unmanaged tension in the air, many opted to pay the extra cash to be on their way.

We counted over 25 cabbies picking up rides in a period of about 30 minutes. John, a Queens based cabbie who worked the shift, estimated the average fare that night to be between 7 and 12 dollars. Some cars picking up passengers, however, were clearly not TLC licensced. Numerous minivans and sedans pulled up with offers to drive folks down the avenue (for a fare). At one point, approximately 1:20a.m., one passenger jumped from the car when he saw the driver wasn’t TLC licensced. The driver got out and a 5 minute verbal shouting match ensued. After a few minutes, the driver picked up a new fair, cursed his old fair out the window, and drove down Fourth Avenue into Bay Ridge dusk.

A group of 4 or 5 MTA employees leaned on nearby cars, commenting to each other about the nearby commotion. They also took turns re-adjusting their belts and spitting–neither of which provided more shuttle buses or helped them arrive faster.