Ethical Cultural Fieldston School Addition to School

   Pictured above is the Ethical Cultural Fieldston School lower school where the school wants to expand the fourth floor (the fenced in area on the roof) for additional classroom space. 

   Representatives of the school came to last Thursday's Community Board 8 Land Use Committee meeting to inform the community board how the school is going to expand the Lower School Building roof for more classroom space.

    The Community Board was told the construction was as of right, and that it would take about three days for steel to be hoisted by a crane from flatbed trucks on Greystone Avenue to the roof of the building. The board was also told that the school has no other way to get the steel up to the roof, and has already met with neighbors to discuss what the parking situation might be. Neighbors have been offered an equal amount of parking spaces lost in a school parking lot. 

    I wanted to know how the large trucks would get to the construction site. I was told from Broadway up Manhattan College Parkway to Greystone Avenue, but then another person from the school said that the large trucks would come up the Riverdale Avenue hill to Greystone Avenue. 

    As you will see in the photos below that the school has other problems with the retaining wall which spans around most of the school.

Above - The retaining wall on Greystone Avenue not far from the lower school shows cracks, and discoloration as well as plant growth in the wall.

Below is a photo of the retaining wall at the corner of Riverdale Avenue and West 238th Street. The cracks here in the wall are so huge that a temporary barrier had to be put up last year.

It appears that the concrete barriers have shifted to create a hazardous condition where people walking by can be hurt by the bulging concrete at the corner of Riverdale Avenue and West 238th Street.

Motel Homeless Shelter Discussed at CB 8 Land Use Meeting

     On the agenda of the June 9th Community Board 8 Land Use Committee meeting was an item titled 'Human Resources Administration - Placement of housing facility for homeless persons at Van Cortlandt Motel 6393 Broadway.

      Matt Borden the Assistant Commissioner of Governmental Relations, and Louis Molina the Senior Advisor for the Department of Homeless addressed the Community Board 8 Land Use Committee, State Senator Jeff Klein, Assemblyman Jeffrey Dinowitz, Councilman Andrew Cohen, and the almost 100 people in the audience of the meeting on the status of the Van Cortlandt Motel homeless shelter. 

    It seems that as many as three people are placed in a motel room with little supervision. The only way the community found out about this new homeless shelter was because there was an incident with one of the people the city placed in the motel. Even the 50th Police Precinct was never notified that a homeless shelter was placed at the motel. There were many questions thrown at the two city representatives, and one woman complained that the quality of life is deteriorating even more on Broadway.

     State Senator Jeff Klein spoke for a while saying this was the third time that a homeless shelter had popped up in his district. He said that while the senate passed legislation that he wrote to have community boards be notified of new homeless shelter sites the legislation died in the state assembly. Klein said that he was going to draft new legislation that would address the issue, ad be able to satisfy those in the assembly who voted against the first bill. The conclusion was that Councilman Cohen said that the  commissioner of Homeless told him that the site would be reviewed by September, and that it should be gone by then.  

Representatives for the city address the audience. Also in the photo seated is Community Board 8 Land Use Chair Charles Moerdler (left), and Community Board 8 Chairman Daniel Padernacht (right).

State Senator Jeff Klein responds to what he heard from the city representatives who look on from the side. Also in the photo seated is Community Board 8 District Manager Patricia Manning (far right).

As they are always ready to serve their communities are Councilman Andrew Cohen, State Senator Jeff Klein, and Assemblyman Jeffrey Dinowitz.

Manhattan U.S. Attorney - $54 Million Settlement Against Salix Pharmaceuticals For Using “Speaker Programs” As Mechanism To Pay Illegal Kickbacks To Doctors To Prescribe Salix Products

Salix Admits to Paying Doctors to Serve as “Speakers” at Programs that Were Primarily Social in Nature and Where the “Speakers” Spent Little or No Time Discussing the Relevant Salix Product

Preet Bharara, the United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”), and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today a $54 million settlement in a civil fraud lawsuit against SALIX PHARMACEUTICALS, INC. (“SALIX”), a specialty pharmaceutical company based in Raleigh, North Carolina, that sells products used to treat various gastroenterology conditions.  The settlement resolves claims that SALIX violated the federal Anti-Kickback Statute and False Claims Act by using its “speaker programs” as a mechanism to pay kickbacks to doctors to induce them to prescribe SALIX drugs and medical devices that were reimbursed by federal health care programs.  Specifically, the United States’ Complaint-in-Intervention alleges that SALIX held sham speaker programs, frequently at high-end restaurants, where doctors were paid substantial honoraria purportedly to educate other doctors about a Salix product, but in reality spent little or no time discussing the product.  The settlement will also resolve numerous state law civil fraud claims.

Today, U.S. District Court Judge Denise L. Cote approved a settlement stipulation to resolve the Government’s claims against SALIX.  Under the settlement, SALIX is required to pay approximately $46.53 million to the United States and has made extensive admissions regarding its conduct.  Further, as part of the settlement, SALIX will pay approximately $7.47 million to resolve the state law civil fraud claims. 

Manhattan U.S. Attorney Preet Bharara said:  “For years, Salix Pharmaceuticals unlawfully sought to increase prescriptions of its products by using its ‘speaker programs’ as a vehicle to pay kickbacks to doctors.  Through these ‘speaker programs,’ which were frequently nothing more than social gatherings with little or no educational component, Salix found a way to pay doctors money and treated them to fancy meals to push their drugs.  With today’s settlement, Salix has taken responsibility for its conduct and agreed to pay a significant financial penalty.  This action and settlement is part of our continuing effort to pursue health care providers who put their profits ahead of patient safety.” 

HHS-OIG Special Agent in Charge Scott J. Lampert said: “When Salix Pharmaceuticals paid doctors large sums of money to speak at programs that were primarily social events, the goal was to induce the doctors to prescribe Salix products and enhance the company’s bottom line.  We will continue to investigate such illegal arrangements that undermine impartial medical judgment and place company interests above those of patients.”

FBI Assistant Director-in-Charge Diego Rodriguez said: “Salix used high priced meals at swanky restaurants to get doctors to push its products.  Whether those doctors actually prescribed those medications, the simple idea behind the pitch eats away at the faith patients have in their doctors to put their health and wellbeing above the interests of a corporation.  The FBI and our partners will do all that we can to keep these practices from doing more harm than good.”

As alleged in the Complaint-in-Intervention filed in Manhattan federal court:

During the period January 2009 through December 2013 (the “Covered Period”), many of SALIX’s speaker programs for Xifaxan, Apriso, Relistor, MoviPrep, OsmoPrep, Solesta, and Deflux (the “Covered Products”) were nothing more than social events at which SALIX wined and dined doctors to induce them to write prescriptions for these products.  These speaker programs included both in-person events (at which both the speaker and the attendees were present in person and the speaker was paid to provide an educational talk on a Covered Product to the attendees using a slide presentation), as well as pre-recorded events (at which a SALIX employee was supposed to use a laptop or other device to play for the attendees a pre-recorded video of a doctor delivering a slide presentation, and then call the paid speaker, who was to be available to answer any questions by telephone). 

The speaker programs, which were typically held in restaurants, were supposed to be educational in nature and the cost of the meal was supposed to be modest.  But in practice, SALIX held many speaker programs that were primarily social in nature, including events where it repeatedly invited the same doctors, who frequently were from the same practice or otherwise knew each other, to attend the same exact program on the same exact topic.  With respect to the pre-recorded programs – which SALIX personnel internally referred to as “doc-in-the-box programs” – the pre-recorded video frequently was not played or was intentionally played in a manner so it could be ignored.  SALIX also held many speaker programs at very expensive, high-end restaurants.

The doctors whom SALIX paid to be speakers and whom SALIX invited to its events were often the high prescribers of its products or were viewed as having the potential to be high prescribers.  Many of these doctors increased their prescription-writing for the Covered Products after becoming speakers and/or repeatedly attending sham speaker programs.  During the Covered Period, SALIX spent approximately $25 million on speaker payments and meals.

As part of the settlement, SALIX admitted, acknowledged, and accepted responsibility for the following conduct:

• Throughout the Covered Period, speaker programs were an important part of SALIX’s strategy for increasing sales of the Covered Products.SALIX conducted approximately 10,000 speaker programs for the Covered Products, including approximately 8,000 programs alone for Xifaxan, Apriso, and Relistor. 
• Speaker honoraria payments for a program ranged from $250 (for a doctor available on call to answer questions associated with a pre-recorded program) to $4,500 (for a doctor who spoke at an in-person program and had a specified level of experience and certain credentials).During the Covered Period, SALIX paid over 500 physicians honoraria for serving as speakers on the Covered Products, with dozens of physicians earning more than $50,000, and several earning more than $100,000. 
• Throughout the Covered Period, SALIX did not have effective mechanisms in place to monitor adequately its speaker programs to ensure compliance with internal policies. For example, there were no effective mechanisms in place to audit speaker programs and insufficient efforts were made to review data and other information on speaker programs to ensure compliance with the company’s internal policies.

• Throughout the Covered Period, numerous SALIX employees held speaker programs for the Covered Products that were primarily social in nature and/or otherwise did not comply with the company’s internal policies.For example, there were programs where: 
  • the designated speaker spent little or no time discussing the Covered Product; 
  • the required slide presentation was not shown in its entirety or not at all; 
  • doctors attended multiple programs on the same topic (at which the same slide presentation was supposed to have been shown) within a short period of time; 
  • the programs were held in the main dining rooms of restaurants or other locations that were not conducive to an educational program; 
  • the programs were held at high-end restaurants (such as Nobu and Le Bernardin in New York City), with per-person costs exceeding $200 and even $300;
  • the SALIX sales representative responsible for a program reported that certain physicians had attended the event even though they had not, in order to make the per-person cost of the event appear lower than it actually was;
  • attendees included individuals other than healthcare professionals with a legitimate interest in the scheduled topic, such as a physician’s spouse; and/or 
  • the programs were used as an opportunity to provide a physician’s practice (in some cases including administrative staff) with a meal or a happy hour. 
• Additionally, with respect to the pre-recorded speaker programs, there were numerous instances where:(1) the SALIX sales representative did not play the pre-recorded presentation; (2) the SALIX sales representative played the pre-recorded presentation but placed the laptop or other viewing device in a location where it could not readily be seen or at a volume at which it could not readily be heard; and/or (3) the designated approved speaker was not called at the end of the pre-recorded presentation but still received an honorarium payment. 

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

Former Pharmaceutical Company Employees Arrested For Participating In Fentanyl Kickback Scheme

Pharmaceutical Sales Representatives And Managers Paid Thousands Of Dollars To Doctors In Exchange For Prescribing Of Millions Of Dollars’ Worth Of Fentanyl

Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced that JONATHAN ROPER, a former District Manager at a pharmaceutical company (“Pharma Company-1”), and FERNANDO SERRANO, a former sales representative at Pharma Company-1, were charged today with violating the Anti-Kickback Statute in connection with their participation in a scheme to pay doctors thousands of dollars to participate in sham educational programs in order to induce the doctors to prescribe millions of dollars’ worth of a fentanyl-based sublingual spray manufactured by Pharma Company-1 (the “Fentanyl Spray”).  ROPER was arrested this morning by FBI agents on Long Island, and SERRANO was arrested this morning by FBI agents in New Jersey.  They will be presented before U.S. Magistrate Judge Kevin N. Fox in Manhattan this afternoon.

Manhattan U.S. Attorney Preet Bharara said: “Fentanyl is an incredibly dangerous and highly addictive drug that is finding its way into, and destroying, too many lives in our communities.  Because of its deadly power, its legitimate prescription faces significant and severe restrictions.  Yet, as alleged, former drug company employees Jonathan Roper and Fernando Serrano corruptly induced doctors to prescribe millions of dollars’ worth of Fentanyl through thousands of dollars in kickbacks disguised as phony educational programs.  As alleged, Roper and Serrano helped feed this devastating surge of opioid addictions by tapping into another age-old addiction, greed.”

FBI Assistant Director Diego Rodriguez said: “This case should be something the medical industry and the general public should pay close attention to because it’s one of the reasons we’re experiencing an epidemic of overdoses and deaths in this country.  Not only did the defendants in this case allegedly bully sales reps into pushing this highly addictive drug, they paid doctors to prescribe it to patients.  The more prescriptions written, the more money the doctors made.  Instead of seeing a way to help people who are dealing with extreme pain, they allegedly saw a huge payday that potentially put people’s lives in danger.”

HHS OIG Special Agent in Charge Scott J. Lampert said: “We expect drug company representatives to be part of the prescription drug abuse solution – not part of the problem, as alleged in this case.  We will continue to investigate kickback arrangements, which can undermine impartial medical decision-making and worsen the overuse of opioids in this country.”

According to allegations in the Complaints unsealed today in Manhattan federal court:[1] 

Fentanyl is a synthetic opioid that is classified as a Schedule II controlled substance and is approximately 100 times more potent than morphine as an analgesic.  Because of the risk of misuse, abuse, and addiction associated with prescription products like the Fentanyl Spray, only doctors who have enrolled in a mandated U.S. Food and Drug Administration (“FDA”) program and completed necessary training are permitted to prescribe the Fentanyl Spray. 

Pharma Company-1’s Fentanyl Spray was approved by the FDA in or about January 2012, solely for the management of breakthrough pain in cancer patients who are already receiving and who are tolerant to opioid therapy for their underlying persistent pain.  The Fentanyl Spray is the only FDA-approved product that Pharma Company-1 currently has on the market.  Pharma Company-1 reported approximately $330 million in net revenue from the Fentanyl Spray in 2015. 

In order to market the Fentanyl Spray, Pharma Company-1 established a program purportedly to educate healthcare professionals about the Fentanyl Spray (the “Speaker Program”).  Doctors selected as speakers at these Speaker Programs by Pharma Company-1 (“Speakers”) were compensated for purportedly providing educational presentations to a peer-level audience of healthcare professionals using a preapproved PowerPoint presentation.  In reality, however, many of the Speaker Programs that ROPER and SERRANO organized and attended were predominantly social gatherings at high-end restaurants in Manhattan that involved no education regarding the Fentanyl Spray and no slide presentation at all.  Many of the Speaker Programs also lacked an appropriate audience of healthcare professionals.  In order to make these Speaker Programs appear legitimate, sign-in sheets for these Speaker Programs – including Speaker Programs organized by ROPER and SERRANO – were frequently forged by adding the names and signatures of doctors to sign-in sheets who had not, in fact, been present at the Speaker Program.  Repeat attendees were also commonplace at Speaker Programs organized by SERRANO.  In numerous instances, all of the attendees at Speaker Programs organized by SERRANO had previously attended Pharma Company-1 Speaker Programs.  Because all legitimate Speaker Programs required use of the same preapproved slide presentation, there was no educational purpose for healthcare professionals to attend Speaker Programs on a repeated basis.

While employed at Pharma Company-1, ROPER and SERRANO were each involved in organizing Speaker Programs for two Manhattan-based doctors (“Doctor-1” and “Doctor-2”), among other doctors.  Doctor-1 and Doctor-2 were frequently the purported Speakers at sham Speaker Programs that were social in nature and lacked an educational component.  Doctor-1 and Doctor-2 were highly compensated by Pharma Company-1 for acting as Speakers.  In 2014 alone, Doctor-1 and Doctor-2 received over $147,000 and $112,000, respectively, in Speaker Program fees.  During this same time period, Doctor-1 and Doctor-2 were also two of the largest prescribers of the Fentanyl Spray in the United States.  In 2014 alone, Doctor-1 and Doctor-2 prescribed, respectively, over $3 million and over $2 million worth of the Fentanyl Spray that was reimbursed by various private insurance companies, and over $1 million worth of the Fentanyl Spray that was reimbursed by Medicare.

It was well understood among Pharma Company-1 employees that doctors were selected as Speakers in order to induce these doctors to prescribe large quantities of the Fentanyl Spray, and ROPER explicitly instructed the sales force he supervised that this was the case.  For example, on or about May 6, 2014, ROPER sent an email to certain sales representatives in which he expressed displeasure that certain doctors who were Speakers were not prescribing sufficient quantities of the Fentanyl Spray:   

Where is the ROI [Return on Investment]??!!! All prescribers from this team that are on this list are [Pharma Company-1] speakers. We invest a lot of time, $, blood, sweat, and tears on “our guys” and help spreading the word on treating BTCP [breakthrough cancer pain]. We hire only the best of the best to be apart [sic] of our speaker bureau and dropping script counts is what we get in return?

This is a slap in the face to all of you and is a good indication as to why NONE of you are climbing in the rankings this quarter. DO NOT be afraid to set your expectations and make them crystal clear as to what they are before, during, and after HIRING these priviliged [sic] set of docs who are fortunate enough to be a part of the best speaker bureau in the market in the world of BTCP [breakthrough cancer pain]. Please handle this immediately as funding will not be given out to anymore [sic] “let downs” in the future. Thanks.                                                                                                                

ROPER decided which doctors would be allocated Speaker Programs in the sales territory that included New York City.  ROPER instructed one sales representative that a Speaker would receive fewer Speaker Programs in the future because ROPER was not pleased with the quantity of Fentanyl Spray prescriptions this doctor was writing.  ROPER informed the sales representative that he wanted to hit the doctor “in his pocket” in order to try to cause the doctor to start writing more Fentanyl Spray prescriptions.  ROPER also once instructed this same sales representative to offer cash to a medical professional in order to induce this medical professional to prescribe the Fentanyl Spray.            

ROPER, 37, of Commack, New York, and SERRANO, 30, of Manalapan, New Jersey, are each charged with one count of conspiracy to violate the Anti-Kickback Statute and one count of violating the Anti-Kickback Statute.  Each of the two counts carries a maximum term of five years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

AFTER COMPTROLLER STRINGER AUDIT, DEPARTMENT OF FINANCE CORRECTS TAX STATUS OF NEARLY 100 MIXED-USE BUILDINGS IN QUEENS

City will collect an additional $1.28 million in taxes over the next five years that can be used to support schools, build roads and affordable housing 

Similar audit in Brooklyn identified over $2 million in potential revenue

   New York City will bring in up to an additional $1.28 million in revenue over the next five years because of changes at the Department of Finance prompted by an audit released today by New York City Comptroller Scott M. Stringer. The audit found nearly 100 mixed-use buildings in Queens that had been improperly assessed by the Department of Finance and taxed at an incorrect, lower rate.

Today’s findings follow a similar report from February which identified 197 misclassified mixed-use buildings in Brooklyn. Changes stemming from that audit will bring the City an additional $2.09 million in revenue over the next five years. Combined, the two audits identified an additional $3.37 million that will be collected through 2022.

“These two audits spurred immediate changes that will right a wrong and benefit our entire City,” Comptroller Stringer said. “To their credit, the Department of Finance took quick action after auditors identified misclassified buildings, and now the City stands to gain an additional $3.37 million in revenue over the coming years. That’s real money that can be used to build affordable housing, fix our streets, and support our schools.”

Properties in New York City are given one of four tax classes (Class 1 are one to three unit buildings, primarily used for residential purposes; Class 2 are all other residential properties; Class 3 are properties owned by utilities and special franchises; and Class 4 are all other properties not in Class 1, 2, or 3). This audit examined whether Class 1 mixed-use buildings in Queens were properly assessed and taxed by the Department of Finance as of May 2015.

Auditors identified 97 buildings that were misclassified as Tax Class 1 mixed-use buildings, and taxed at a lower rate than they should have been. DOF agreed that 78 properties should be taxed at 45 percent of market value, instead of the residential rate of six percent at which they had been taxed, and that 19 properties required additional interior inspection. In total, the Comptroller’s office estimated that after the changes are made, the City will bring in an additional $1.28 million in taxes over the next five years.

Auditors also found that 33 of the misclassified buildings in Queens had been inspected by DOF assessors within the last three years – raising questions about the agency’s training and inspection process.

The Department of Finance has already re-classified 78 of the properties, and agreed with all three of the audit’s recommendations, including that it should:

• Conduct an interior inspection of the 19 remaining properties identified in the audit as misclassified and ensure they receive the correct tax class;
• Make sure assessors are properly trained so they do not misclassify buildings; and
• Enhance its oversight and quality assurance to ensure buildings are properly inspected.

“The bottom line is that everyone should pay their fair share of taxes. The Department of Finance will now collect more revenue that will help to fund critical programs in our City. Going forward, this agency must strengthen its training and oversight to ensure properties in every borough are properly assessed, and the correct taxes are collected” Stringer said.

To read the full audit report, click here.

Bronx Veterans Day Parade Applications

Senator David Carluci Birthday Bash

New York City Council Member Andy King Calls for the Firing of DOE Educator Who Demeaned A Queens’ School Black Teachers

  NYC Council Member Andy King, an executive board member of the Black, Latino and Asian Caucus, is calling on his colleagues in government and the city Department of Education (DOE) to fire Minerva Zanca, formerly the principal at Pan American International High School, Queens, who reportedly harassed and demeaned the school's black teachers.

On Thursday, it was announced that federal prosecutors sued the DOE on civil rights violations for failing to stop Ms. Zanca’s actions.

“I’ve never heard of such unprofessional dialogue and behavior coming from a top educator. It’s time to take a stand against racism and bigotry and not allow it to go on in our schools,” said King, who sits on the Council’s Civil Rights and Education committees. “Without question, Ms. Zanca created an ugly culture of derogatory name calling and “my way or highway” actions and if you spoke up or didn’t agree she would retaliate. Ms. Zanca shouldn’t be allowed to supervise any staff or group of youngsters in the NYC education system. I put the onus on Schools Chancellor Farina and the DOE to terminate Ms. Zanca and do it now!”

Ms. Zanca  joined the DOE in 1988 and  retired as a principal in June 2015. She has been working as a part-time guidance counselor at Frederick Douglass Academy in Brooklyn.

Norman Seabrook, President Of Correction Officers’ Benevolent Association, Arrested For Demanding And Accepting Bribes In Exchange For Investing Union Money In New York-Based Hedge Fund

Murray Huberfeld, Founder of Manhattan-based Hedge Fund, Also Charged For Paying Off Seabrook to Invest in the Fund

Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that NORMAN SEABROOK and MURRAY HUBERFELD were arrested this morning and charged in Manhattan federal court with committing honest services wire fraud, in connection with HUBERFELD’s payment of a $60,000 bribe to SEABROOK, the President of the Correction Officers’ Benevolent Association (“COBA”), and the promise of future bribe payments, in exchange for SEABROOK’s investment of $20 million of COBA money in HUBERFELD’s hedge fund.  SEABROOK was arrested this morning by FBI agents in the Bronx, and HUBERFELD was arrested this morning by FBI agents in Manhattan.  They will be presented before U.S. Magistrate Judge Kevin N. Fox in Manhattan this afternoon.

Manhattan U.S. Attorney Preet Bharara said:  “As alleged, Norman Seabrook and Murray Huberfeld engaged in a straightforward and explicit bribery scheme.  For a Ferragamo bag stuffed with $60,000 in cash, Seabrook allegedly sold himself and his duty to safeguard the retirement funds of his fellow correction officers.  Norman Seabrook, as COBA’s president for over two decades, allegedly made decisions about how to invest the nest egg for thousands of hard-working public servants, based not on what was good for them, but on what was good for Norman Seabrook.”

FBI Assistant Director-in-Charge Diego Rodriquez said:  “When an official takes advantage of his or her position as steward of an organization’s financial resources in order to line their own pockets, it is a dereliction of duty for someone trusted to protect the financial contributions of the hard working men and women who belong to the organization.  When a hedge fund manager provides bribe payments to organizations to gain their business, he or she puts the financial security of the fund’s investors at risk.  This kind of criminal collusion destabilizes the system and undermines investors’ confidence in the integrity of the marketplace.  The FBI, along with our partners, will continue to work to protect our citizens from the destructive consequences of corruption and deceit.”

According to the allegations in the Complaint filed yesterday in Manhattan federal court[1]:          

COBA is New York City’s largest correction officers union and the largest municipal jail union in the United States.  COBA represents over 9,000 correction officers in New York City, including at Riker’s Island.  NORMAN SEABROOK, the defendant, is the President of COBA and has been for over 20 years.  SEABROOK’s power over the affairs of COBA is rarely questioned by his Executive Board due to his ability to affect their assignments, pay, and hours.  SEABROOK’s control extends to the union’s finances, including the administration of its “Annuity Fund,” a retirement benefits program funded by the City of New York that invests more than $70 million for correction officers’ retirements.         

Toward the end of 2013, on a trip to the Dominican Republic with, among others, an individual who is now a cooperating witness for the Government (“CW-1”), SEABROOK told CW-1 that he worked hard to invest COBA’s money and was not getting anything out of it, and it was time that “Norman Seabrook got paid.”  CW-1 was friendly with and had done business with MURRAY HUBERFELD, a founder and part owner of Platinum Partners (“Platinum”), a Manhattan-based hedge fund that principally ran two funds.  CW-1 was aware that Platinum was looking to attract public and institutional investors – as opposed to its more typical investor set of high net-worth individuals – and told HUBERFELD that SEABROOK would likely invest COBA money in Platinum if HUBERFELD were willing to pay SEABROOK money.  HUBERFELD agreed to the proposition, and HUBERFELD worked out a formula in which SEABROOK would be paid a kickback of a portion of the profits from COBA’s investment that HUBERFELD estimated could be between $100,000 and $150,000 per year.

SEABROOK then began investing COBA’s money, at first going through the motions of having Platinum make a pitch to COBA’s Annuity Fund board and having advisers conduct diligence.  Those advisers included attorneys who expressed concern that public pensions like COBA do not typically invest in higher-risk vehicles like hedge funds.  In March 2014, COBA’s Annuity Fund made a $10 million investment in one of Platinum’s funds.  In June 2014 – this time without running the investment by the COBA Board or seeking any approval – SEABROOK invested $5 million, or 40 percent, of COBA’s own assets in the same fund.  In August 2014, the Annuity Fund invested another $5 million in Platinum.  By that point, COBA was the largest investor in that Platinum fund for all of 2014, and amounted to more than half of all incoming investments for the fund.  At the same time, the fund was experiencing significant redemptions by other investors.

Toward the end of 2014, SEABROOK wanted the first of his kickback payments, and demanded it from CW-1.  HUBERFELD told CW-1 that the fund had not performed as well as expected, and that he could pay SEABROOK only $60,000.  CW-1 agreed to lay out the cash, and HUBERFELD agreed to reimburse CW-1 on Platinum’s behalf.  HUBERFELD suggested that to paper over the reimbursement, CW-1 invoice Platinum for a number of CW-1’s tickets to the Knicks, in the amount of $60,000, and Platinum would then cut a check to CW-1.

CW-1 paid SEABROOK the first $60,000 kickback on December 11, 2014.  Before meeting SEABROOK that evening, CW-1 went to one of SEABROOK’s favorite stores, Salvatore Ferragamo on Fifth Avenue in Manhattan, and bought an expensive bag for SEABROOK.  CW-1 put the money in the bag, and met SEABROOK a few blocks away in SEABROOK’s COBA vehicle, where he handed SEABROOK the bag.  CW-1 and SEABROOK had dinner with two other persons, then attended a Torah dedication ceremony, after which SEABROOK left Manhattan.  These events have been corroborated by, among other things, phone records, e-mails, license plate reader records, and a receipt from Salvatore Ferragamo.  On the same day, CW-1’s assistant prepared a $60,000 invoice to Platinum for Knicks tickets, which CW-1 forwarded by e-mail to HUBERFELD.  Three days later, Platinum paid CW-1 by check.

HUBERFELD, through another co-conspirator not identified in the Complaint, continued to lobby SEABROOK for more money in 2015.  However, after a lawsuit filed by a former COBA board member referred to the Platinum investments, and the U.S. Attorney’s Office grand jury investigation resulted in subpoenas to Platinum and COBA in May 2015, no further investments were made.

SEABROOK, 56, of the Bronx, New York, and HUBERFELD, 55, of Manhattan New York, have been charged with one count of conspiracy to commit honest services wire fraud, and one count of honest services wire fraud.  Each of the two counts carries a maximum term of 20 years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Bharara praised the investigative work of the FBI, the NYPD Internal Affairs Bureau, and the Internal Revenue Service’s Criminal Investigations Division, and noted that the investigation is continuing.  

This case is being handled by the Office’s Public Corruption Unit.  Assistant United States Attorneys Martin Bell, Russell Capone, and Kan M. Nawaday are in charge of the prosecution.

The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.

Premiere Event is next Thursday, June 16th!

Space its limited.  You must obtain a FREE Club KRVC Card to attend. 
Pick one up at KRVC at 505 West 236th Street  during our office hours: 
Mon-Wed 11am-6pm, Thursday 11am-2pm, Friday 1-4pm.
www.krvcdc.org/club

BOROUGH PRESIDENT DIAZ RELEASES ANNUAL DEVELOPMENT REPORT

Highlights Over $9.4 Billion in Total Bronx Development Since 2009

Bronx Borough President Ruben Diaz Jr. has issued his annual development report, highlighting the total development seen in The Bronx since he first took office in 2009 through the end of 2015.

“Great things are happening here. We are seeing unprecedented levels of development in The Bronx, including new housing units of all types and vibrant commercial projects. As we continue to attract new investors and new interest in our borough, my office will continue our efforts to ensure that the ongoing revitalization of The Bronx works for everyone,” said Bronx Borough President Ruben Diaz Jr.

The report notes that, in total, The Bronx has seen more than $9.493 billion in total development in all categories since 2009, when Borough President Diaz first took office. In 2015 alone, The Bronx saw a record $2.385 billion in new development.

The report finds that, between 2009 and 2015, more than 23,000 new units of housing and over 54 million square feet of total development. In 2015 alone, the borough saw more than 10 million square feet of development and nearly 7,000 units of new housing, higher numbers than any year of Borough President Diaz’s tenure.

The report follows other encouraging news about the continued economic growth of The Bronx. Late last month, the New York State Department of Labor announced that the borough’s unemployment rate had fallen to fell to 6.6 percent in April 2016, down from 7.9 percent in March 2016 and 7.8 percent in in April 2015. This is the lowest unemployment rate the borough has seen since Bronx Borough President Ruben Diaz Jr. first took office in May 2009. Those same statistics showed that more than 100,000 Bronxites are employed today than when the borough president first took office.

Read the full report at http://on.nyc.gov/1U6aCco.

New York City plastic bag measure makes cents for stores; no sense for residents

  Avella bill passed by Senate encourages recycling of all plastic bags without onerous fees

The New York State Senate on Tuesday passed legislation by State Senator Tony Avella, and supported by Independent Democratic Coalition members, to spur plastic bag recycling without imposing fees on residents.

Avella’s bill (A.7085A) requires stores to place plastic bag recycling receptacles with a sign in plain view where consumers can return used plastic bags from previous shopping trips or any other type of plastic sacks such as newspaper and dry-cleaning bags.

“When it comes to ‘reduce, reuse, recycle’, we are supposed to be reducing our city’s waste, not our resident’s bank accounts. Fees to use plastic bags would cost our city's families, while failing to increase the recycling of those bags. That is why I am proud to pass my legislation, along with my Senate colleagues, to increase awareness of plastic bag recycling programs already in place, and encourage the return of all plastic bags, not just those used at grocery stores. This bill will increase recycling without hurting New York's low-income families,” said Avella.

“We heard our constituents loud and clear when we bagged New York City’s nonsensical idea to impose a fee on grocery store bags. This fee would have hit hard many New York families and consumers, while doing little to encourage actual recycling. The passage of Senator Avella’s bill accomplishes the green-goal of returning all plastic bags, not just supermarket bags, without taking green from anybody’s wallet,” said Independent Democratic Conference Leader Jeff Klein.

“This recycling initiative encourages us to return all plastic bags, not just certain types of plastic bags. On Staten Island and in the Brooklyn portion of my Senate District the City Council’s measure was soundly rejected by its representative and my constituents. Nobody minds being environmentally-friendly, but everyone minds being hit with extra fees in an already costly city. This legislation is a win-win for the environment and residents of New York City,” said State Senator Diane Savino.

Under this measure, retailers with 10,000 square-feet or chain stores with five or more franchises of 5,000 square-feet must place a large collection bin in its store as part of its recycling program. Above each container a sign, in a large font, must alert consumers of the recycling initiative.

Each store must track plastic bag recycling in logs monitoring collection, transport and weight of the plastic material. Stores must retain records for three years, under the proposal. Retailers would also be required to use plastic bags that clearly state, “Please return to a participating store for recycling,” and offer reusable bags as an alternative.

Senator Klein Hosts Chart-Topping Band Orleans at Riverfest

    State Senator Jeff Klein, hosted the popular 70’s pop/rock band Orleans at RiverFest on Sunday evening.  

The annual festivities, sponsored by the Kingsbridge Riverdale Van Cortlandt Development Corporation, celebrated the picturesque Hudson River and highlighted the need for a Greenway, during a fun-filled day along the waterfront.

“RiverFest has become a valued tradition in the Riverdale community. This year I was proud to present Orleans, the chart-topping music group, to wow our residents with a memorable show. This festival truly celebrates the beauty of the Hudson River. Further, with the $250,000 funding I secured for the Greenway study and the newly updated timeline for this project, Riverdalians will soon be better able to enjoy this gorgeous outdoor area,” said Senator Jeff Klein.

Senator Klein secured $250,000 for a Greenway feasibility study last year. Now, the MTA will issue a Request For Proposals at the end of this month, bringing the long-envisioned project closer to reality. The study will examine the stabilization of the Hudson River’s embankment in Riverdale and include the development of several design alternatives as well as the selection of the final trail design.

For this year’s bash. the group Orleans, which has produced 16 albums, amazed the crowd with hits like “Still the One,” “Dance with Me,” and “Love Takes Time.” Families gathered throughout the day to enjoy arts and crafts, boat rides, face painting, food, miniature golf, and more.

Katrina Asante Withdraws Her Candidacy for the 36th State Senate District Inbox x

    Katrina Asante released the following statement after withdrawing her candidacy for the 36th State Senate District.

“After much reflection and many discussions with my family and supporters, I have decided to withdraw my name for consideration for the 36th New York State Senate race. I am truly honored by all of the support I have received during these last few months, but it has become clear to me that I would not be able to run the campaign my community deserves. This experience has given me the opportunity to grow deeper roots in my community, meet people who are making a difference in our neighborhoods and bring attention to the many issues my community still needs addressed.  I will be forever grateful for that. 

This decision does not in any way lessen my commitment to serving our district and being a tireless advocate for the issues that matter to us most.  

Moving forward, I believe we need a leader in the 36th Senate District who not only understands the needs of this community, but is committed to serving our constituency and fighting for the issues that can make a difference in our neighborhoods. Jamaal Bailey and I share many of the same values and positions. We both grew up in this district, have dedicated most of our professional lives to public service and agree on the main issues that need to be addressed for our community, such as education for our youth and quality jobs. The people of the 36th Senate District are vibrant, strong and hardworking, and their leader should reflect all of those qualities. 

I sincerely thank all of those who supported my candidacy, especially the constituents of the 36th district, who I will continue to call my friends and neighbors.  I would also like to thank the Stonewall Democratic Club of NYC for endorsing my candidacy and believing that I would be a vigorous fighter for equal rights for all people by helping tear down the shadows of ignorance. 

While I will not get the opportunity to serve as a State Senator at this time, I clearly understand that my help is still needed.  My commitment to help open doors for those who are deserving and are facing many of the same challenges I faced during my times of struggle remains unchanged. 

I look forward to continuing the work to make the Bronx a great place to live. Thank you all again."

STATEMENT FROM BP DIAZ RE: S.7336/ ‘Bag Tax’ Legislation

   “With today’s vote, the State Senate has struck a bipartisan blow for economic fairness against a backdoor, regressive tax. The city’s attempt to charge individuals a nickel per plastic bag is well-intentioned, yet poorly executed, and I congratulate State Senator Simcha Felder and his colleagues for recognizing as much. Lower income New Yorkers will be disproportionately burdened by this proposal. In addition, this new law will put a strain on the relationship between local and small businesses and their most loyal customers, potentially causing those customers to spend less money in their neighborhoods and harming our local economies.

“Everyone agrees that these bags are an environmental hazard, but the bag tax is not an effective way to reduce their impact on our communities. Our city needs to consider more creative ways to reduce litter and pollution, as well as more creative ways to spend any funding derived through such efforts. We cannot place a new tax on the backs of the poor and call it progressive government,” said Bronx Borough President Ruben Diaz Jr.

Ischia Bravo for Assembly - Our Campaign Begins Today

Friends & Supporters,

OUR TIME HAS COME! Today, June 7th, through July 10th our campaign will be out on the streets going door to door collecting petitions in order to officially get on the primary ballot. 

Our campaign has set a HIGH GOAL when it comes to the number of signatures we want to collect and we cannot do it without you. I am running because, as someone born and raised in the 78th district and now raising my two boys here, I have seen firsthand what a lack of leadership in the Assembly has done to hold back our community from progress. I've spent my life fighting for the people of the Bronx - we cannot afford to go on without effective, proactive, and vocal leadership when our communities deserve so much more!

WE NEED YOU to come out and show your support for real effective change we so desperately need. 

Our campaign headquarters is located at 14 Kingsbridge Road and we will be giving out petitions and walk lists every day from 9am until 8pm.

Never petitioned before? Don't worry. Our campaigns staff will train you on the ins and outs of petitioning when you come into the office as well as provide you with a one page sheet with instructions and frequently asked questions. 

I cannot do this without you! 

In Solidarity,
Ischia

OVERSIGHT AND INVESTIGATIONS COMMITTEE TO HEAR POLICE MISCONDUCT BILL

  Tomorrow, the Committee on Oversight and Investigations will hold a hearing for Deputy Leader Council Member Jumaane D. Williams' Intro. 119C bill. 

 

The Early Warnings System bill would require the Inspector General for the Police Department, in consultation with the Law Department, the Police Department, the Comptroller, the Civilian Complaint Review Board, and Commission to Combat Police Corruption, to review information on police misconduct and develop recommendations related to the disciplining, training, and monitoring of police officers. To facilitate this review, the Law Department would be required to publish information on civil actions every six months.

The committee will hear testimony from members of the Administration, New York Police Department (NYPD), and the Law Department.

 

WHO: Committee on Oversight and Investigations, Council MemberVincent J. Gentile (Chair), Council Member Jumaane D. Williams, Members of the Administration, NYPD, and Law Department

 

WHAT: Bill Hearing

 

WHERE: City Hall Council Chambers

 

WHEN: Wednesday, June 8 - 10 a.m.