NEW YORK STATE ANNOUNCES AFFORDABILITY INVESTMENTS TO HELP KEEP NEW YORKERS COOL DURING EXTREME HEAT

 

NY Updates Extreme Heat Action Plan and Boosts Funding and Other Resources

Advances Collaborative Solutions to Protect Public Health and Support Disadvantaged Communities 

New York State announced new and continued investments to address extreme heat, prioritizing disadvantaged communities on the frontlines of heat exposure, new funding opportunities to create public cooling spaces, and expanded assistance to provide affordable cooling for New Yorkers at home. The efforts mark progress on New York State’s Extreme Heat Action Plan, directed by Governor Kathy Hochul and first announced in June 2024 to address extreme heat impacts and prioritize State investments.   

With heat waves and other extreme heat events more common, New York State agencies are continuing to work towards implementing the recommended initiatives found in the State’s Extreme Heat Action Plan (EHAP), which are designed to help New Yorkers prepare for the negative health and environmental impacts from extreme heat events. A variety of resources are available for individuals, local governments, and community-based organizations, including: 

• Creating green and cool public spaces – State investments are transforming public spaces to reduce urban heat while serving as places for communities to gather and connect. New funding is available to support green, cool and comfortable spaces, including schools, playgrounds, and public pools, that serve the youngest members of our communities. Investments are creating new spaces and enhance existing ones, including prioritizing disadvantaged communities (DACs) to help expand equitable access to outdoor cooling spaces.  
• Expanding access to public cooling – In the 2026 State of the State address, Governor Hochul announced a new grant program to fund Community Resilience Hubs and secured $10 million in the FY 2027 budget. New State Department of Health (DOH) cooling center guidance provides best practices for establishing cooling centers and supports consistent services at those sites. The Department of Environmental Conservation’s (DEC) Climate Smart Communities (CSC) grants program provided $2 million in funds for new cooling centers and heat emergency plans in 2025 alone, with opportunities for new funding available now.  
• Supporting access to cooling at home – In 2025, DOH launched the new Essential Plan Cooling Program. In 2026, the program is expanding eligibility to offer free air conditioners to more members of the Essential Plan, now covering 16 qualifying conditions. Expanded eligibility will help provide in-home cooling to more people with health conditions that may be exacerbated by heat. This will complement assistance available in 2026 through the Home Energy Assistance Program (HEAP) Cooling program. In addition, the Public Service Commission announced uniform extreme heat utility protections for customers to prevent utility shutoffs during extreme heat events. 
• Protecting workers – In 2024, the Department of Labor (DOL) launched extreme weather guidance, including extreme heat guidance, to keep workers safe. In 2025, DOL developed additional resources, including a new bilingual wallet card and templates for Heat Illness and Injury Prevention Plans (also in Spanish). Site visits and vulnerable worker outreach in collaboration with local partners were also expanded. Governor Hochul also recently announced the extreme heat NYSIF equipment credit for small businesses.   

In the second year of implementing the EHAP, which is led by DEC and the New York State Energy Research and Development Authority (NYSERDA), New York State investments helped create green spaces to keep communities and neighborhoods cool, support access to swimming and play areas, and build community resilience by supporting resilience hubs, community cooling centers, and cooling options at people’s homes.  

Resources support planning for and adapting to extreme heat across the state, including updates to the Heat Vulnerability Index and new Urban Heat Island (UHI) planning tools, expected to be released later this summer. In addition, new funding opportunities improve public access to cool spaces in public schools through the Clean, Green Schools Initiative, create public cooling spaces through NY SWIMS and NY PLAYS, and resources support assistance to cooling at home through the Home Energy Assistance Program (HEAP) and the Essential Plan Cooling Program.  

Department of Environmental Conservation Commissioner Amanda Lefton said, “More frequent extreme heat and severe weather are contributing to serious public health consequences and threats to New Yorkers, particularly among communities of color and those historically overburdened by pollution. Under Governor Hochul’s leadership and in partnership with other State agencies, DEC continues to make progress enhancing public health, protecting lives, and increasing resilience as we face the impacts of our changing climate.”  

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “Governor Hochul’s commitment to safeguarding the health of New Yorkers, especially our most vulnerable populations, against the effects of extreme heat has resulted in a comprehensive strategy that leverages the expertise of many agencies. NYSERDA is proud to be a partner in helping our communities and employers offer new resources for residents and workers to prepare for and avoid being impacted by the health and environmental impacts that can come with our hottest days.”  

Division of Homeland Security and Emergency Services Acting Commissioner Terry O’Leary said, “Extreme heat is the number one weather related cause of death in the United States, and it is critical that New Yorkers are aware of the risks and prepare for its impacts. Thanks to Governor Hochul's investments and forward-thinking leadership, our state agencies are working together to plan for and mitigate the impact of extreme heat, while making resources available for communities and residents across the state. On Heat Action Day, I urge everyone to prepare and stay safe: monitor your local forecast, stay hydrated, have a plan in the event of unexpected power outages, and stay informed by signing up for real time emergency and weather alerts."  

State Health Commissioner Dr. James McDonald said, “I thank Governor Hochul for her unwavering commitment to protecting the health and safety of all New Yorkers, as extreme heat can be life threatening especially for those with chronic conditions like asthma. As dangerously high temperatures continue to be the norm, we are proud to work with our State agency partners on the Extreme Heat Action Plan to provide affordable cooling options to protect vulnerable populations and workers.”  

Implementation of the Extreme Heat Action Plan 

To effectively adapt to extreme heat, DEC, DOH, and DHSES announced today new and updated tools to help communities understand where, when, and how heat is impacting them. The suite of tools will help communities plan for and adapt to extreme heat:

• DOH Heat Risk and Illness Dashboard –DOH’s Heat Risk and Illness Dashboard allows users to see their county’s heat-health risk forecast and track heat-related health outcomes on the local and statewide level. 
• DEC’s Urban Heat Island Maps –DEC’s Urban Heat Island maps provide exposure data statewide at a 30-meter resolution and help communities identify and address heat islands. 
• DOH Heat Vulnerability Index –DOH is making updates to the State’s Heat Vulnerability Index, helping communities identify areas with particularly vulnerable population groups. 
• NYS DAC Assessment Tool –DEC created a new tool to help communities understand potential environmental burdens in disadvantaged communities (DACs). 
• DHSES MitigateNY –The Division of Homeland Security and Emergency Services’ (DHSES) MitigateNY is New York State’s central hub for hazard mitigation planning, offering data, tools and guidance. 
• NYS Climate Impacts Assessment –The New York State Climate Impacts Assessment provides climate projections for New York State and information on impacts of climate change.  

New York State also marks continued significant progress on the second year of implementation of the Extreme Heat Action Plan (EHAP) with the 2025-2026 readiness update now available. In June 2024, Governor Hochul, DEC, NYSERDA, and the EHAP Work Group released the plan with nearly 50 actions by State agencies to address extreme heat impacts across four tracks (local planning and capacity building, community preparedness and workers’ safety, resilient buildings and access to cooling, and advancing ecosystem-based adaptations).   

DEC is coordinating the implementation of the plan in partnership with NYSERDA and the members of the Work Group, including DOH and DHSES. During the first year implementing the plan, State agencies made significant progress in developing new resources that help communities address impacts of extreme heat. 

Staying Safe During Extreme Heat 

The dangers of extreme heat can affect everyone, regardless of age, physical shape, or existing health conditions. The body works extra hard to maintain a normal temperature during extreme heat and, without taking proper measures, this can lead to heat-related illness or even death. 

Information about what the public can do during hot weather and how to locate cooling centers can be found on DOH’s Extreme Heat website.  

HEAP can also provide an air conditioning unit to income-eligible households that include someone with a documented medical condition exacerbated by extreme heat, or households with young children or older adults. Applications will continue to be accepted until funding runs out. For more information, visit the Office of Temporary and Disability Assistance website.

Groups most at risk are: 

• People who work outdoors or indoors without air conditioning 
• Adults aged 60 years and older 
• Infants, children, and those who are pregnant 
• People with chronic health conditions 
• Those with physical and cognitive disabilities 
• Those with no access to air conditioning 
• Individuals who live alone or are unhoused 
• Athletes 
• Pets and service animals 
• People living in cities because asphalt and concrete store heat longer and release heat more slowly at night. This produces higher nighttime temperatures and is known as the "urban heat island effect.” 

Another important heat safety tip is to never leave children or pets unsupervised in hot cars. There is a real and severe danger when leaving children or pets unsupervised in a car even when temperatures don’t “feel” hot. At 60 degrees outside, after just one hour a closed car can get as hot as 105 degrees.  

New Yorkers should closely monitor their local forecasts and look for updates issued by the National Weather Service. For a complete listing of weather alerts, visit the National Weather Service website.  

New Yorkers should also ensure that government emergency alerts are enabled on their mobile phones. They should also sign up for real-time weather and emergency alerts that will be texted to their phones by texting their county or borough name to 333111. 

Supporting Local Extreme Heat Action 

New York State continues to make investments in programs to help mitigate extreme heat and other climate impacts. Currently, $18 million is available through the Climate Smart Communities Grant program to fund climate change mitigation and adaptation projects, including for projects that help communities plan for and adapt to extreme heat. The deadline for applications is July 31, 2026. More information is available on DEC’s website. 

A total of $7 million was awarded through the Climate Smart Communities Grant program last year for heat-adaptation projects and $6 million supported 32 community-based organizations as part of DEC’s Environmental Justice Community Impact Grants.  

Since the inception of the Clean Green Schools Initiative, NYSERDA has awarded $82 million to 14 installation projects across 45 buildings and is in the process of negotiating contracts with additional school districts across the state, which are expected to be announced later this year. In May, Governor Hochul announced more than $100 million available to make clean energy upgrades in public schools across New York State through the Clean Green Schools Initiative. Proposals are due on August 18, 2026.  

Additionally, more than $125 million was made available to upgrade affordable multi-family housing in upstate New York. The State’s new Affordable Multi-Family Program Upstate (AMP Up) provides support for a wide range of cost-effective energy efficiency and electrification improvements in these residential buildings and serves as a one-stop-shop to enhance building performance, deliver utility bill savings, and improve comfort and quality of life for New Yorkers. Additional information about the program, incentive levels, and how to access and submit an application can be found on the AMP Up website here.  

In 2025, $2.5 million in grant funds supported 51 organizations through the Urban Farms and Community Gardens Grant program, and $63 million in capital grants funded 21 projects to expand safe swimming access across New York State through the NY SWIMS Initiative.  

FY 2027 Enacted Budget Highlights

Under Governor Hochul’s leadership, the FY27 Enacted Budget includes an additional  $1 billion investment in the Sustainable Future Program, reinforcing New York’s historic commitment to clean energy and greenhouse gas mitigation. The EmPower+ program will receive a $200 million boost – combining $150 million directly from the Sustainable Future Program with an additional $50 million included in the NYSERDA capital budget. This program has been extremely successful in helping people keep their homes comfortable, affordable, and environmentally friendly while generating new clean energy jobs for local contractors.  

With New Yorkers struggling with high energy costs and record gas prices at the pump thanks to bad federal policies, the new budget includes a one-time $1 billion Protecting Our Wallets Energy Rebate (POWER) checks to help provide needed relief to New Yorkers. The FY27 Budget also establishes a Ratepayer Protection Plan to modernize the State’s approach to regulating utilities with a commitment to ensuring energy remains affordable, and reaffirms New York’s commitment to environmental leadership by appropriating $425 million to the Environmental Protection Fund, using $25 million from the Sustainable Future Program to provide a record $450 million for important environmental programs.   

New York State's Climate Agenda 

New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 40 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy, including in the energy, buildings, transportation, and waste sectors. The State is also working to disburse the historic $2 billion Sustainable Future Program, which will deliver targeted funding to lower emissions, reduce household energy costs, and spur green job growth. 

Multiple Co-Conspirators Indicted for Widespread Interstate Drug Trafficking Conspiracy

 

Defendants allegedly participated in interstate possession and distribution of narcotics, including cocaine, methamphetamines, and fentanyl sent to addresses in Queens, Brooklyn, and Nassau County.

Drug Enforcement Administration New York Task Force Division Special Agent in Charge Christopher Roberts, Nassau County District Attorney Anne T. Donnelly, and USPIS Inspector in Charge Ketty Larco-Ward of the New York Division, announced that several co-conspirators were indicted on conspiracy and drug possession charges for engaging in an organized interstate drug trafficking operation that brought deadly fentanyl and other narcotics into Nassau County and the New York City area using the U.S. mail.  

Macayo Parrott, 51, of Glendale, Arizona, was arraigned on June 2, 2026, before Judge Tammy Robbins on grand jury indictment charges of Conspiracy in the Second Degree, Operating as a Major Trafficker, two counts of Criminal Sale of a Controlled Substance in the First Degree, two counts of Criminal Possession of a Controlled Substance in the First Degree; Criminal Sale of a Controlled Substance in the Second Degree, and two counts of Criminal Possession of a Controlled Substance in the Second Degree.

Parrott pleaded not guilty and was remanded. He is due back in court on July 13, 2026. If convicted, he faces up to 25 years to life in prison. 

Bruce Frazier, 51, of Hempstead, New York, was arraigned on March 4, 2026, before Judge Tammy Robbins on grand jury indictment charges of Conspiracy in the Second Degree, Criminal Possession of a Controlled Substance in the First Degree and Attempted Criminal Possession of a Controlled Substance in the Second Degree.

Frazier pleaded not guilty and bail was set at $1 million cash, $2 million bond, and $20 million partially secured bond. He is due back in court on June 15, 2026. If convicted, he faces up to 20 years in prison. 

Antwann Meyers, 45, of Queens, New York, was arraigned on March 4, 2026, before Judge Tammy Robbins on grand jury indictment charges of Conspiracy in the Second Degree, Criminal Possession of a Controlled Substance in the First Degree, Attempted Criminal Possession of a Controlled Substance in the First Degree, and Attempted Criminal Possession of a Controlled Substance in the Second Degree.

Meyers pleaded not guilty and bail was set at $2 million cash, $4 million bond, and $40 million partially secured bond. He is due back in court on June 15, 2026. If convicted, he faces up to 30 years in prison. 

Robert Bowie, 50, of Phoenix, Arizona, was arraigned on May 1, 2026, before Judge Tammy Robbins on grand jury indictment charges of Conspiracy in the Second Degree and Attempted Criminal Possession of a Controlled Substance in the First Degree.

Bowie pleaded not guilty and bail was set at $1 million cash, $2 million bond, and $10 million partially secured bond. He is due back in court on July 1, 2026. If convicted, he faces up to 20 years in prison. 

This multi-year narcotics trafficking investigation was conducted through a multiagency effort by the U.S. Drug Enforcement Administration’s New York Task Force Division (DEA-NYTFD), the U.S. Postal Inspection Service, and NCDA. 

“The arrests of these defendants, who participated in the interstate drug trafficking network, using the postal system as their means to distribute dangerous drugs, including fentanyl, to addresses in Queens, Brooklyn, and Nassau County, have delivered their last package,” stated DEA New York Task Force Division Special Agent in Charge Christopher Roberts. “Every package mailed containing counterfeit pills laced with fentanyl is a potentially deadly shipment, carrying addiction and possibly death directly to someone’s doorstep. The DEA and our law enforcement partners remain committed to identifying, targeting, and dismantling those who exploit our mail system to profit from poisoning our communities. With every package intercepted, every trafficker arrested, and every network dismantled, the DEA remains steadfast in our mission for a Fentanyl Free America.”

“For several years these defendants allegedly worked together to move dozens of shipments of dangerous illegal narcotics, including fentanyl, cocaine, and methamphetamine, to states across the country and right here in Nassau County,” said DA Donnelly. “This incredible bust dismantled a sophisticated drug trafficking network and seized nearly two thousand grams of fentanyl – enough to kill roughly a million people. Together with our partners in the DEA’s New York Task Force Division and the U.S. Postal Inspection Service, we are rooting out traffickers, stopping illicit shipments in their tracks, and protecting residents of New York State and Nassau County.”

“The U.S. Postal Inspection Service has zero tolerance for illegal drug traffickers using the mail stream,” stated USPIS Inspector in Charge Ketty Larco-Ward of the New York Division.  “Removing dangerous narcotics like fentanyl, cocaine, and methamphetamines from the U.S. Mail is one of our highest priorities.  Postal Inspectors, along with our local and federal law enforcement partners, will continue to aggressively investigate and dismantle drug trafficking networks and their pipelines before they hit American communities.”

DA Donnelly said that, according to the indictment, beginning in June 2023, the DEA-NYTFD, USPIS and NCDA, received information from a separate law enforcement investigation that large amounts of narcotics, U.S. Postal Service parcels, and packing materials were found and believed to have been used to ship narcotics.

The recovered parcels showed addresses including 153rd Lane in Jamaica, Queens, a hotel connected to defendant Antwaun Meyers’ work as a security guard. A subsequent investigation into the delivery of those parcels identified a pattern of the packages being shipped with shipper and receiver names that did not match the shipping and receiving addresses. 

The parcels were electronically tracked to a mobile phone number used by Macayo Parrott. 

Additional packages were allegedly shipped by Parrott to a Frazier Street address in Hempstead, where defendant Bruce Frazier allegedly resides, and other delivery locations in Ridgewood and Brooklyn, connected to defendant Meyers through his work as a security guard.

For approximately 32 months, more than 40 packages were identified as allegedly shipped by Parrott. Four of those packages were intercepted and confirmed to contain narcotics. 

On January 10, 2024, in Phoenix, Arizona, Parrott allegedly purchased a shipping label with the 153rd Lane address. That parcel was seized and found to contain approximately 2226 grams of methamphetamine. 

On June 1, 2024, Parrott allegedly purchased a shipping label with the Frazier Street address. The parcel was seized by law enforcement and contained approximately 201.1 grams of fentanyl pills. The pills were similar in physical appearance to the 2,000 pills found in the home of defendant Meyers when he was arrested on March 4, 2026.

On November 9, 2024, in Los Angeles, California, Parrott allegedly purchased a shipping label for an address in Florida. That parcel was seized by law enforcement and found to contain approximately 860.6 grams of fentanyl combined with cutting agents. 

Between May 21, 2025, and May 22, 2025, Parrott allegedly sent a parcel through the U.S. mail that contained approximately 1 kilogram of fentanyl. 

In June 2025, Parrott allegedly purchased various shipping labels with addresses in Hempstead and Brooklyn for packages that contained 1 kilogram each of fentanyl.

On various dates, according to intercepted phone calls, text messages and other investigative methods, Parrott allegedly engaged in conversations with Frazier, Meyers, and Bowie, discussing shipping parcels that contained narcotics to the defendants through the U.S. Postal Service, organizing the handoff of multiple narcotics to others, and purchasing fentanyl pills.

During the period of 2023 through 2025, over 100 parcels believed to contain narcotics were allegedly shipped by Parrott to 12 states, of which 81 were sent to locations in New York State and 21 sent to Nassau County. In total approximately more than 4,000 fentanyl pills, two compressed fentanyl bricks (1,850.3 grams), two kilograms of methamphetamine (2226 grams), and one kilogram of cocaine (969.3 grams) were seized by investigators.

Based on records obtained through the course of the investigation, investigators believe that the group allegedly used CashApp as well as credit union accounts to transfer funds within the conspiracy. Records identified multiple payments totaling nearly $6,000 between Frazier and Parrott.

The current street value of a kilogram of fentanyl in the New York metropolitan area is between $32,000-$40,000.

Parrott, Meyers, Frazier and Bowie were all arrested on March 4, 2026. Parrott and Bowie were arrested in Arizona.

Upon his arrest, more than 2,000 fentanyl pills were recovered at Meyers’ residence at 114-28 168th Street in Queens, New York.

Bags containing dozens of cellphones, packing materials, and other documents related to the investigation were recovered from Parrott’s residence in Arizona during his arrest. 

Three handguns were also recovered from Bowie’s residence in Arizona during his arrest.

NCDA thanks the U.S. Drug Enforcement Administration’s New York Task Force Division, including the New York City Police Department, and the U.S. Postal Inspection Service for their partnership in this investigation and prosecution. 

The case is being prosecuted by Unit Chief Michael Greubel of the Narcotics, Firearms and Gangs Bureau under the supervision of Bureau Chief Michelle Burke and under the overall supervision of Executive Assistant District Attorney for the Investigations Division Nicholas Mauro. Parrott is represented by Thomas Mirigliano, Esq. Frazier is represented by George Michel, Esq. Meyers is represented by Chauncey Henry, Esq. Bowie is represented by Jeffrey Groder, Esq. 

The charges are merely accusations, and the defendants are presumed innocent until and unless found guilty.

WOW.DHS.GOV: ICE Officers Arrested Worst of the Worst Murderers, Sexual Predators, Violent Assailants, and Other Violent Criminals

 

Americans can see the tens of thousands of criminal illegal aliens arrested from their communities at WOW.DHS.Gov

U.S. Immigration and Customs Enforcement (ICE) arrested more worst of the worst criminal illegal aliens from across the country, including those convicted for murder, sexual assault, aggravated assault causing serious bodily injury, and other despicable crimes.

“Our best of the best ICE law enforcement officers arrested more worst of the worst criminal illegal aliens terrorizing our communities, including murderers, sexual predators, violent assailants, and other criminals,” said Acting Assistant Secretary Lauren Bis. “These are the dirtbags we are arresting and removing from American communities every single day. Sanctuary politicians need to stop RELEASING criminals from jails into our communities and start cooperating with ICE.”

Arrests include:

Sayan Chitamnath, a criminal illegal alien from Cambodia, convicted for murder, assault with a deadly weapon, robbery, and felon in possession of firearm in Long Beach, California.

Said Salat Yarow, a criminal illegal alien from Kenya, convicted for sexual assault in Travis County, Texas.

Gerson Rojo-Guzman, a criminal illegal alien from Mexico, convicted for aggravated assault causing serious bodily injury, fraudulent use of birth certificate, and possession with intent to distribute controlled substance in Dallas, Texas.

Israel Ramos-Bustillo, a criminal illegal alien from Honduras, convicted for criminal possession of a controlled substance in New York, New York.

Jose Cordova-Gonzalez, a criminal illegal alien from Mexico, convicted for unlawful transport of firearms in Cleveland, Tennessee.

Americans can see more public safety threats arrested in their communities on our webpage WOW.DHS.Gov.

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CEO of Iran Tech Company Arrested on Federal Charge of Supplying U.S. Equipment to Iran’s Nuclear and Military Establishment

 

A dual U.S.-Iranian national and CEO of an Iran-based technology company was arrested on a federal criminal complaint charging him with violating U.S. sanctions against Iran by acquiring sophisticated U.S.-origin networking, security, and encryption equipment for Iranian customers — including the Iranian regime’s nuclear and military establishments.

“As alleged, Ghomi enriched himself by supplying U.S. technology to the Atomic Energy Organization of Iran and other sanctioned entities responsible for the Iran’s nuclear program,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division will hold accountable those who violate our laws to further Iran’s nuclear ambitions.”

“Ghomi is accused of aiding our declared enemies by selling U.S.-origin computer networking parts to Iran and earning millions of dollars in violation of U.S. sanction laws,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “Our nation’s laws prohibiting doing business with one of the world’s largest state sponsors of terrorism must be enforced and obeyed. We will hold him accountable by seeking an appropriate prison sentence and by seizing his assets, including his $35 million Newport Beach mansion.”

“This arrest reflects our commitment to disrupt the illegal flow of American technology to foreign nations, especially our adversaries,” said Acting Special Agent in Charge Darren Lian of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “As alleged, Mr. Ghomi spent years exploiting United States financial systems and procurement channels to move controlled equipment to Iran while hiding his activities behind front companies and falsified documentation. We will continue to work with our partners to safeguard national security by utilizing our financial investigative expertise.”

Jamshid Ghomi, 63, of Newport Coast, California, is charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA).

Ghomi is expected to make his initial appearance this afternoon in U.S. District Court in Santa Ana, California.

The IEEPA and the Iranian Transactions and Sanctions Regulations (ITSR) impose controls and restrictions on transactions involving Iran based on the threats posed by Iran to the national security of the United States, including its pursuit of nuclear weapons and sponsorship of terrorism. The IEEPA and ITSR prohibit the export, re-export, sale, or supply, directly or indirectly, from the United States or by a United States person, wherever located, of any goods, technology, or services to Iran or the Government of Iran without first obtaining authorization from OFAC. 

According to the affidavit filed with the complaint, Ghomi is the founder, owner, and CEO of Faraz Pardaz Rayaneh Co. Ltd. (FPR), a Tehran-based computer networking company. For more than a decade, Ghomi has used FPR to procure U.S.-origin networking equipment for customers in Iran in violation of U.S. sanctions. Ghomi or FPR never obtained a license from the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) authorizing those transactions.

Ghomi identified, negotiated, purchased, and arranged the shipment of large quantities of controlled U.S. technology for his own company. From 2011 to 2015, he used his own eBay and PayPal accounts to make more than 400 purchases of computer-networking equipment, directing the goods to intermediaries in the United Arab Emirates (UAE). In 2023, Ghomi personally negotiated the purchase of U.S.-origin networking equipment directly from suppliers in Minnesota and Nebraska, routing it through a UAE front company and on to FPR in Iran. 

None of these items could be lawfully exported to Iran without a license from OFAC.

From 2014 to 2018, Ghomi arranged the smuggling of more than 250 metric tons (275.6 U.S. tons) of networking equipment into Iran, using freight forwarders and intermediaries in Dubai to disguise that Iran was the true destination.

Ghomi knew this conduct was illegal and took deliberate steps to conceal it. He directed his UAE co-conspirators to keep his name off shipping paperwork, to omit invoices from shipments bound for Iran, and on at least two occasions to hide U.S.-origin computer equipment inside larger shipments. He used front companies in the UAE to obscure his role, and he personally received warnings on invoices and software licenses that exporting these goods to Iran was prohibited. Ghomi and his co-conspirators referred to Iran as “Motherland” in their internal correspondence concerning the equipment’s procurement.

FPR’s annual sales exceeded $10 million and ran to hundreds of Iranian companies and government entities, many of which were subject to U.S. sanctions. A relatively small but significant portion of that business went to the most sensitive end-users in Iran: the Iranian regime’s nuclear and military establishment.

From 2017 to 2023, FPR supplied U.S.-origin computer networking equipment to the Atomic Energy Organization of Iran (AEOI) — the Iranian government agency responsible for Iran’s nuclear program, including its centrifuge and uranium-enrichment programs. The U.S. State Department sanctioned AEOI in 2020 for playing a leading role in Iran's nonperformance of its nuclear commitments, including exceeding the limits on its uranium stockpile and enrichment levels. 

According to the affidavit, AEOI required FPR to register as an approved vendor, which it did in 2021 and 2022. From 2014 to 2022, FPR supplied U.S.-origin networking, security, and encryption equipment to Iran’s Ministry of Defense and Armed Forces Logistics — the Iranian ministry responsible for research, development, and manufacturing across Iran’s defense enterprise — and to affiliated military and defense-electronics entities. FPR’s 2017 contract with Iran Computer Industries, signed by Ghomi, expressly identified the buyer as the “Ministry of Defense and Armed Forces Logistics — Iran Computer Industries.”

Ghomi laundered the proceeds of his illegal business into the United States, depositing FPR’s Iranian sales revenue into its operating account at a sanctioned Iranian bank and then sweeping those funds to himself. Within days, he received corresponding wires into his U.S. accounts from a rotating set of unrelated trading companies and exchange houses in the British Virgin Islands, Hong Kong, Turkey, and the UAE. Those wires bore false descriptions such as “Buying Goods” and “For Consulting Fees.”

From 2011 to 2024, Ghomi moved more than $15 million from Iran into his U.S. bank accounts and into a construction escrow account held on his behalf. He falsely reported those funds to the IRS as a foreign inheritance. Ghomi’s federal tax returns reported almost no income, his highest reported income in any year being $20,684. Ghomi claimed the Earned Income Tax Credit, a federal tax break for low- to moderate-income working individuals and families, in seven different tax years. Over the same period, Ghomi reported more than $1.7 million in home-mortgage interest and $1.25 million in state and local real-estate taxes on his federal income tax returns.

Ghomi funded the construction of his Orange County, California, mansion with the proceeds of his sanctions-evasion scheme. Ghomi purchased a vacant lot in Newport Coast in March 2010 for $4,490,000 and paid approximately $10,490,371 to construct the residence from 2010 to 2013. From May 2011 to August 2015, foreign-source wires totaling more than $7 million flowed into the escrow account funding the home’s construction. These wires came from many of the same trading companies as the transfers from FPR’s operating account, were handled by the same FPR employees, and bore the same false descriptions. 

A complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Ghomi would face a maximum penalty of 20 years in prison.

IRS-CI, in coordination with the Department of Commerce’s Bureau of Industry and Security, is investigating the case.

Assistant U.S. Attorney David C. Lachman for the Central District of California is prosecuting the case, with valuable assistance from the National Security Division’s Counterintelligence and Export Control Section.

A complaint merely contains allegations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

United States Announces $36.5 Million Settlement Of Medicare Fraud Lawsuit Against Matrix Medical Network

 

United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), Naomi Gruchacz, announced that the United States has settled a civil healthcare fraud lawsuit against COMMUNITY CARE HEALTH NETWORK, LLC, D/B/A MATRIX MEDICAL NETWORK (“MATRIX”), a health services company headquartered in Nashville, Tennessee, that contracts with Medicare Advantage Organizations (“MAOs”) to perform in-home health assessments of Medicare patients.  The settlement resolves claims that MATRIX violated the False Claim Act by causing the MAOs to submit to the Government false and invalid patient diagnoses for certain chronic conditions, thereby artificially inflating the Medicare payments the MAOs received for providing insurance coverage to patients enrolled in their plans. The Government alleges that MATRIX focused on reporting diagnoses that could lead to higher payments for its client MAOs, instead of ensuring that all of its diagnoses were appropriate and well-supported. 

Under the settlement, which was approved by U.S. District Judge Andrew L. Carter, MATRIX will pay the United States a total sum of $36.5 million.  MATRIX made extensive factual admissions in the settlement regarding its conduct, including that in numerous instances MATRIX reported certain conditions where its health assessment forms did not contain sufficient clinical information to support the diagnosis.  In connection with the settlement, MATRIX also entered into a five-year Corporate Integrity Agreement (“CIA”) with HHS-OIG.  The CIA requires MATRIX to implement numerous accountability and auditing measures.  In particular, MATRIX must conduct annual risk assessments and other monitoring, and an independent review organization will conduct compliance reviews focused on MATRIX’s systems, processes, and procedures relating to MATRIX’s risk adjustment activities and MATRIX’s services provided to Medicare Advantage plan enrollees.

“For years, Matrix generated false and invalid diagnoses for patients enrolled in Medicare Advantage plans that were later reported to the Government,” said U.S. Attorney Jay Clayton.  “Matrix advertised its ability to identify new diagnosis codes that would boost Medicare Advantage insurers’ payments, and it delivered on that promise by reporting lucrative diagnoses that frequently fell well short of meeting recognized clinical criteria.  Matrix did so to generate business for itself, at the expense of the public fisc.  New Yorkers hate fraud that drains public funds.  Why?  Because New Yorkers are smart and they know fraud involving taxpayer-funded programs costs all New Yorkers.  This Office is proud to join with the rest of the Department, including the National Fraud Enforcement Division, to hold perpetrators of fraud accountable in Medicare and other contexts.”

“Matrix manipulated Medicare managed care’s reimbursement structure for financial gain,” said HHS-OIG Special Agent in Charge Naomi Gruchacz.  “By generating unsupported and clinically invalid diagnoses, Matrix undermined the integrity of federal health care programs and put profits above patients.  This settlement demonstrates our unwavering commitment to holding entities accountable when they inflate Medicare payments through improper practices and fail to uphold the standards beneficiaries deserve.”

The Medicare Advantage program, also known as Medicare Part C, allows Medicare beneficiaries to opt out of traditional Medicare and enroll in health plans that are administered by private insurance companies known as MAOs.  The MAOs contract with the Centers for Medicare and Medicaid Services (“CMS”) to provide traditional Medicare coverage to beneficiaries enrolled in their plans in exchange for capitated payments.  CMS adjusts these capitated payments based on the health status of each beneficiary as determined through diagnoses submitted by the MAOs. Specifically, CMS uses these diagnoses, along with demographic factors, to calculate a Risk Adjustment Factor (“RAF”) score for each member and, in turn, the amount of the monthly payment it will pay the MAO for covering that member, pursuant to the Hierarchical Condition Category (“HCC”) model. In general, CMS pays insurers more for sicker beneficiaries likely to incur higher healthcare expenses and less for healthier beneficiaries.  Diagnosis codes submitted to CMS must be supported by the beneficiaries’ medical records and be accurate, complete, and truthful, based on the best knowledge, information, and belief of the MAO making the submission. 

As alleged in the Government’s Complaint:

MATRIX contracts with MAOs to conduct health assessments of Medicare Advantage plan members in their homes.  Based on these in-home assessments, MATRIX provides diagnosis codes to the MAOs for ultimate submission to CMS as part of the MAOs’ risk adjustment data.  The MAOs paid MATRIX a fee, generally in the range of $350 to $450, for each assessment.  CMS relies on this risk adjustment data, including the medical diagnosis codes, to determine the payments paid to the MAOs for each beneficiary.  As a “first-tier entity” that contracts with MAOs, MATRIX is required to certify the accuracy and truthfulness of the data it generates relating to claims for payment submitted by MAOs. 

During the period from 2014 to 2019, MATRIX knowingly caused MAOs to submit false and invalid diagnoses of the following chronic medical conditions to CMS for risk adjustment purposes: proliferative diabetic retinopathy, drug-induced polyneuropathy, rheumatoid polyneuropathy, atrial fibrillation, rheumatoid arthritis, chronic obstructive pulmonary disease, and simple chronic bronchitis (the “Invalid Diagnoses”).  MATRIX reported the Invalid Diagnoses to MAOs based on its in-home assessments even though: (a) there was not sufficient information to support the diagnoses; (b) the diagnoses did not conform with the guidelines for coding and reporting diagnoses as required by CMS; and (c) the conditions were frequently not diagnosed by any other healthcare provider who saw the beneficiary during the year in which the home visit occurred or in the preceding two years or subsequent two years.  As a result of the reporting of these Invalid Diagnoses, the MAOs obtained inflated risk adjustment payments from CMS to which they were not entitled.

MATRIX’s home visit program was designed in large part to identify additional diagnosis codes that could be reported to CMS to increase patient risk scores, and therefore the capitated payments that the MAOs received for their plan members.   MATRIX regularly recorded Invalid Diagnoses for complex conditions without performing the testing, imaging, or other diagnostic clinical steps necessary to establish those diagnoses.  The purpose of the home visits was not to treat patients’ medical conditions; indeed, MATRIX did not provide medical treatment or prescribe medications as part of the home visits.  Nor did it refer the patients to specialists for follow-up care, other than generalized suggestions that the patient follow up with their doctors. 

MATRIX marketed its services to MAOs in part by representing that the in-home assessments would allow MAOs to capture diagnoses for use in the risk adjustment process that had not been reported by the plan members’ other providers.  In marketing and other materials provided to MAOs, MATRIX advertised its ability to find and document diagnoses that were not otherwise reported by a patient’s primary care physicians and would therefore increase a patient’s risk adjustment score and the MAOs’ payments.  For example, Matrix advertised its ability to secure HCC “Lift,” meaning to make diagnoses that resulted in higher HCC disease scores and, thus, higher risk adjustment payments.  MATRIX also advertised and calculated the “increase in RAF score” from MATRIX’s assessments and estimated the amount by which the diagnoses MATRIX identified increased the risk adjustment payments received by the MAOs. 

MATRIX’s in-home assessments were typically conducted by nurse practitioners.  Based on the visit, the nurse practitioner completed an electronic, check-the-box form concerning the individual’s reported medical history and the results of a basic physical assessment.  MATRIX’s coding teams later reviewed the assessment forms and diagnoses listed and identified the applicable diagnosis codes to be sent to the MAOs for ultimate submission to CMS as part of their risk adjustment data.  Additionally, after the visits, MATRIX’s “Quality Improvement” staff reviewed the diagnoses entered to assess whether the nurse practitioner had any “missed” diagnoses, which they then urged the nurse practitioner to add.  At times, MATRIX even added diagnoses without the nurse practitioner’s signoff. 

The Invalid Diagnoses generated by the MATRIX home visits did not conform to the International Classification of Diseases (“ICD”) Official Guidelines for Coding and Reporting (the “ICD Guidelines”), as required by applicable federal regulations.  The diagnoses did not affect patient care, treatment, or management during the home visit, as required under the ICD Guidelines, and thus were ineligible for risk adjustment.  In addition, the Invalid Diagnoses were not supported by the minimal information recorded on the MATRIX assessment forms, in violation of the ICD Guidelines’ medical record documentation requirement.  

Through the operation of its home assessment program, MATRIX reported codes for thousands of Invalid Diagnoses to MAOs, which in turn submitted those codes to CMS.  Based on these unlawful false claims, the MAOs improperly received millions of dollars in risk adjustment payments from CMS, in violation of the False Claims Act.

As part of the settlement, MATRIX admitted and accepted responsibility for certain conduct alleged by the Government including the following:

• MATRIX contracted with over 30 MAOs to conduct health assessments of Medicare Part C plan members in their homes. 
• The in-home assessments were typically performed by nurse practitioners, who collected health histories and medication information, conducted physical exams, and documented diagnostic information on electronic health assessment forms.  The nurse practitioners did not provide clinical medical treatment to the plan members or prescribe medications. 
• Certain contracts with MAOs required MATRIX to, among other things, assist the MAO in “capturing Member diagnoses for use in [MAO’s] risk adjustment process” and report on the MAO’s “ROI,” or return on investment.  MATRIX calculated an MAO’s ROI based, in part, on the estimated increase in Medicare Part C reimbursements received by the MAO that was attributable to risk score increases resulting from Matrix assessments.
• MATRIX’s in-home assessments resulted in diagnoses of plan members, and the submission to CMS of resulting risk-adjusting diagnosis codes, that frequently had not been reported by any other healthcare provider who treated the plan member during the year in which the home visit occurred or during the two years before and after the calendar year in which the home visit occurred.
• In numerous instances, MATRIX reported the following conditions to MAOs where the health assessment forms did not contain sufficient clinical information to support the diagnosis: proliferative diabetic retinopathy; drug-induced polyneuropathy; rheumatoid polyneuropathy; atrial fibrillation; rheumatoid arthritis; chronic obstructive pulmonary disease; and simple chronic bronchitis. The MAOs in turn frequently submitted the diagnosis codes corresponding to those conditions to CMS for risk adjustment purposes, which often resulted in the MAOs receiving higher Medicare Part C reimbursements.

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.

In a separate settlement announced today by the Civil Division of the Department of Justice and the United States Attorney’s Office for the Eastern District of Texas, DPN USA d/b/a HealthFair (“HealthFair”), a company acquired by MATRIX in 2018 that performed health assessments on mobile health care buses, and HealthFair’s prior owner Shahriah “James” Ekbatani, are agreeing to resolve separate allegations that HealthFair knowingly reported certain diagnoses to MAOs that were unsupported, unsubstantiated, and/or invalid on the basis of these mobile assessments.

Mr. Clayton thanked HHS-OIG for its assistance with this case.