Gang member convicted of 'taking over' NYC's fire restoration industry
The racketeering and extortion charges each carry a maximum sentence of 20 years.
An alleged member of the Bloods street gang was convicted of racketeering and extortion conspiracies for masterminding a “takeover” of the fire mitigation and restoration industry in New York City, according to the U.S. Attorney’s Office for the Southern District of New York.
In 2019, Jatiek Smith of Staten Island, New York, began working at First Response Cleaning Corp., an emergency mitigation services (EMS) company that provided fire restoration work such as demolition and construction. Shortly after joining First Responses, Smith assumed control of the operation and began recruiting other Bloods members into the EMS company’s ranks.
According to the attorney’s office, Smith and his crew at First Response began using violence, threats of violence and extortion to “terrorize and dominate the fire restoration industry in New York City.”
As part of this takeover, First Responses’ main competition was forced out of the industry through violence, threats and extortion. Once in control of the industry, Smith imposed rules that resulted in First Response getting a preferential share of fire claims.
To ensure the rules were adhered to, Smith and his accomplices used threats and violence, including threatening to kill children to gain compliance. According to the attorney’s office, those who didn’t follow the rules and solicited fire restoration work without Smith’s approval were assaulted. Victims included senior citizens and the assaults often occurred during the day.
Through the scheme, Smith and his crew were able to rake in hundreds of thousands of dollars. The profits were maximized by concealing illegal conditions at properties and perpetrating fraud against insurance carriers.
According to Damian Williams, the United States Attorney for the Southern District of New York, Smith’s scheme represented a new form of organized crime in the city.
“The experienced career prosecutors of this office and our law enforcement partners stand ready to combat violent and organized crime, no matter how unconventional,” Williams said in a release. “We will not stand for gangs or any criminal groups who try to corrupt our communities and threaten our safety. Those who do should expect to find themselves in handcuffs.”
Smith has yet to be sentenced, but the racketeering conspiracy and extortion conspiracy charges each carry a maximum sentence of 20 years in prison.
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