Restoration logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Restoration logo
  • NEWS
  • PRODUCTS
    • New Products & Technologies
    • Submit Your Product
    • Interactive Product Spotlights
  • EDUCATION
    • KnowHow.
    • Podcasts
    • Trade Shows & Expos
    • Training & Certification
    • Webinars
    • Whitepapers
  • TOPICS
    • Water Damage
    • Fire & Smoke Damage
    • Mold
    • Contamination
    • Odor
    • Contents
    • Architecture
    • Catastrophe
    • Cleaning
  • BUSINESS
    • Managing Your Business
    • Insurance/Legal Matters
  • BUYER'S GUIDE
  • VIDEOS
    • Ask Annissa
    • Ask the Expert
    • Ironclad Marketing Minute
    • TradeTalks
    • Video Channel
  • INFOCENTER
    • Mold and Mycotoxins
  • THE EXPERIENCE
    • Conference & Exhibition
    • Convention & Trade Show
    • R&R Special Issue
  • EMAG
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP
Insurance/Legal Matters in Restoration

Law Enforcement Claims Street Gang Took Over Fire Restoration Business

By Ted Craig
criminal investigation into First Response Cleaning Corp.

Photo credit: JaysonPhotography / iStock / Getty Images Plus via Getty Images

October 11, 2022

This past summer, federal and local law enforcement agencies in New York City unsealed a two-count indictment charging nine individuals with racketeering and extortion in a conspiracy involving a restoration company.  

According to the indictment, the defendants took control of First Response Cleaning Corp., a Brooklyn-based company that provides fire damage restoration. The defendants used First Response as a vehicle to extort other fire mitigation firms and to assert control over the industry using violence and threats of violence.

“We allege gang members deployed mob-like tactics, using extortion and violence in their attempts to take over an entire industry designed to help victims after a fire,” said FBI Assistant Director Michael J. Driscoll. “They employed violence to force other companies and vendors to do their bidding.”

According to the indictment and statements made in court filings, eight of the defendants worked together to take control of First Response in 2019. The defendants are: Jatiek “Tiek” Smith; Sequan “Supa” Jackson; Anthony “Touch” Mcgee; Kaheen “Biz” Small; Damon“Demo” Dore; Hasim “Hoodie” Smith; Rahmiek “Ready” Lacewell; and Manuel “Manny” Pereira, a/k/a “Manny.” Law enforcement agents said many of the men are members of the Bloods street gang; Smith was the leader of the crew.

The Bloods are a street gang that started in Los Angeles, and grew to prominence in the 1980s as a major purveyor of crack cocaine. Proceeds from the drug sales were used to expand across the country, with the East Coast version forming in the 1990s.

After taking control of First Response, Smith and the others allegedly used force and threats against other restoration companies and public adjusters to exert control over parts of the fire mitigation business in New York City. Defendant Octavio Peralta was a public adjuster who is accused of participating in the enterprise’s efforts to defraud and who helped the conspirators solidify their control.

The enterprise’s threats included threats to kill or shoot their victims and members of the victims’ families. With the backing of these threats, law enforcement agents said, they imposed a system of rules upon other restorers and on public adjusters. These included a strict rotation system in which the defendants dictated which companies got which losses.  

The enterprise also extorted money from restoration companies and public adjusters and required these other companies to pay if they wanted to continue to work without being attacked. On multiple occasions, the indictment states, the enterprise used force against other restoration companies and public adjusters to ensure that they submitted to the rules, including physically assaulting victims. They sometimes created video recordings of this violence and distributed the recordings within the industry to threaten other victims.

The enterprise also helped submit false insurance claims for damaged properties. They allegedly threatened violence or retaliation against potential witnesses who were believed to be cooperating with the federal investigation into the enterprise’s crimes.

According to media reports, residents of one fire-damaged apartment building said their homes were burglarized after First Response crews started working on the site.

“This criminal organization took advantage of people in time of personal and professional turmoil to enrich themselves at others expense,” said Ricky J. Patel, acting special agent-in-charge of the New York Office of Homeland Security Investigations.

HSI became involved because Smith was arrested in Puerto Rico.

All nine defendants are charged with one count each of conspiracy to commit racketeering and one count of conspiracy to commit extortion. Each count carries a statutory maximum of 20 years in prison, for a combined statutory maximum of 40 years in prison. Any sentencing of the defendants will be determined by the judge. The charges contained in the indictment are accusations, and the defendants are presumed innocent unless and until proven guilty

This case is being handled by the Violent and Organized Crime Unit of the office of the United States Attorney for the Southern District of New York.

See more articles from our October issue!

KEYWORDS: insurance adjusters insurance restoration smoke cleanup

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Ted craig authors

Ted Craig is a former editor-in-chief of Restoration & Remediation.

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • mold remediation

    Fighting Mold and Bacteria Damage

    Successful mold remediation can be multidisciplinary,...
    Contamination Restoration & Remediation​
    By: Josh Woolen
  • certifications and licenses for restoration professionals

    Certifications and Licenses Every Restoration Company Needs

    Restoration companies need to make sure they have the...
    Restoration Training/Education
    By: Sharon Elzarat
  • a wall covered in moss and fungus

    Zero Tolerance for Toxic Molds: Essential Steps for Successful Remediation

    Understanding the importance of zero tolerance for toxic...
    Mold Remediation
    By: Michael A. Pinto CSP, SMS, CMP, RTPE, FLS, ERS and Kendra Seymour
You must login or register in order to post a comment.

Report Abusive Comment

Manage My Account
  • eNewsletter
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

More Videos

Popular Stories

Pop Art Female Superhero Punches a Masked Villain

TPAs vs. Independence: The Restoration Industry’s Own Version of the Cola Wars

RIA Carrier Advocate Mark Springer

Turning the Page: A New Era of Trust and Collaboration in Restoration

Paul Davis Restoration Leadership Team

Justin Graham Expands Paul Davis Restoration’s Reach with Acquisition of Greater Seattle Franchise

Submit Your New Product/Technology to R&R!

Would you like to promote a new restoration, remediation or cleaning product/technology with Restoration & Remediation? Fill out the question below to start your submission:

Events

September 3, 2025

The Experience Convention and Trade Show

The Experience Convention & Trade Show logoJoin us in Las Vegas for The Experience Convention & Trade Show, the leading event for cleaning, restoration, and remediation pros, packed with hands-on demos, expert speakers, and high-impact networking. Happening September 3–5, 2025 at Caesars Forum—this is where the industry comes to learn, connect, and grow!

View All Submit An Event

Poll

Doffing PPE

When you are doffing your PPE, do you sanitize between every step?
View Results Poll Archive

Products

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary.

See More Products
Prepare for CATASTROPHE with R&R!

Related Articles

  • Homeowners, cleaners frustrated with military over fire claims

    See More
  • Institute of Inspection, Cleaning and Restoration Certification (IICRC) Logo

    IICRC’s Upcoming Fire Standards to be Focal Point Under New Colorado Fire Restoration Study Law

    See More
  • Marketing Your Restoration Business through Claims Networks

    See More

Related Products

See More Products
  • fires out.jpg

    Fire’s Out, Now What? Vol. I & II

  • COVER pdf.jpg

    How to Get More Restoration Jobs in 14 Days... (ebook)

See More Products
×

Stay ahead of the curve with our eNewsletters.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Submit a Press Release
  • SIGN UP TODAY
    • Create Account
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Reprints
    • Marketing Services
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing