Drug Dealer Charged With Overdose Death Of Public School Teacher In The Bronx

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest and unsealing of a Complaint charging KASHAWN LYONS with distributing the fentanyl that resulted in the death of Matthew Azimi, a public school teacher in the Bronx.  The Complaint also alleges that LYONS and a co-defendant, TERRICK WHITAKER, distributed heroin and fentanyl together between February and March 2018 in the Bronx.  LYONS was arrested yesterday by the NYPD, and presented today before U.S. Magistrate Judge Henry B. Pitman in Manhattan federal court.  TERRICK WHITAKER remains at large.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Kashawn Lyons and Terrick Whitaker peddled potentially lethal heroin and fentanyl near the grounds of a Bronx public school.  Additionally, Lyons allegedly sold a dose that was in fact lethal and resulted in the overdose death of a teacher at the school.  Working with the NYPD we will continue to combat the epidemic of lethal opioids that is killing people from all walks of life.”

According to the allegations in the Complaint[1]:

On November 30, 2017, Matthew Azimi, a 36-year-old teacher, was found dead inside a faculty bathroom at a special education public school in the Bronx (the “School”) where Mr. Azimi was a teacher.  The NYPD responded to the School and began investigating Azimi’s death.  An autopsy conducted following Mr. Azimi’s death revealed that he died from a lethal dose of fentanyl.  NYPD officers recovered a syringe and a pink glassine bag with no stamp or other distinctive marking next to Mr. Azimi’s body.  The NYPD also recovered Mr. Azimi’s cellphone.

As detailed in the Complaint, the NYPD was able to trace the last three completed calls that Mr. Azimi made before he overdosed on November 30, 2017, to a cellphone used by LYONS.  Through surveillance, the NYPD learned that LYONS continued to sell heroin and fentanyl in the vicinity of the School.  In February 2018, the NYPD made undercover buys of heroin and fentanyl from LYONS and WHITAKER, who was dealing drugs with LYONS, in close proximity to the School.  The heroin and fentanyl purchased from LYONS and WHTIAKER were packaged in the same unique pink glassine bags as the one found next to Mr. Azimi’s body.

LYONS was charged with distribution and possession with intent to distribute heroin and fentanyl, and with conspiring to distribute heroin and fentanyl with WHITAKER.  LYONS faces a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison based upon his distribution of the fentanyl that killed Mr. Azimi., 31, of the Bronx, 

WHITAKER, 31, of the Bronx, was charged with distribution and possession with intent to distribute heroin and fentanyl, and with conspiring to distribute heroin and fentanyl with LYONS, each of which carries a statutory maximum sentence of 20 years in prison. 

The statutory maximum and minimum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants would be determined by the judge.

Mr. Berman praised the outstanding investigative work of the NYPD in this case. 

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

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Governor Cuomo Endorses Luis Sepulveda in April 24th Special Election

  It looked like a victory party before the April 24th special election with all the elected officials in the room to watch Governor Andrew Cuomo endorse 32nd State Senate candidate Luis Sepulveda. There was the Bronx Borough President, members of Congress members of the State Senate, State Assembly and City Council. 

  Bronx Democratic County Leader Marcos Crespo opened the endorsement with many kind words for his next door neighbor in the State Assembly, and dispelled the rumor that he and Luis Sepulveda were twins. Crespo introduced Assembly Speaker Carl Heastie, who had only words of praise for Assemblyman Sepulveda's job in the State Assembly. Heastie called the State Assembly the Upper House, and wondered why Assemblyman Sepulveda wanted to go to the lower State Senate. 

Above - Assembly Speaker Carl Heastie.

Below - New York Governor Andrew Cuomo.

  Speaker Heastie then introduced Governor Andrew Cuomo, who said "I don't want to get involved in which house is the 'Upper House', because I have to work with both houses of the state legislature. Governor Cuomo praised County Leader Crespo on his dedication to Puerto Rico, and for traveling with him to see the devastation to the island. The governor called Congressman Crowley a rising star in Washington. He went on to blast the National Republican Party and current President for what their policies are doing to New York State economically, and the new tax bill is aimed at the twelve states that are all Democratic. He added that he is one-Hundred percent behind Congressman Crowley in the move to win all congressional districts in New York.

  The Governor said that he did not always agree with former State Senator Diaz, but he respected him. Then came the subject of the State Senate, and the two vacant seats. He said with the reunification of the Senate Democratic Conference and the IDC Democrats need only one more seat to have control of the State Senate, saying that more Progressive Democratic legislation would then be passed. He then made his endorsement of Luis Sepulveda, and introduced the next State Senator from the 32nd District Luis Sepulveda. 

  Soon to be State Senator Luis Sepulveda thanked the governor for his kind words, and said that he did not pick out the orange and blue colors behind him since they are the colors of the Mets, and he is a Yankee fan not a Met fan. He thanked his mentor now Councilman Ruben Diaz Sr., and hoped to see Mayor Ruben Diaz Jr. in 2021. He also praised former Bronx Democratic Leaders Roberto Ramirez, Jose Rivera, and Carl Heastie.

  Sepulveda then went on to say he will be continuing his fight for Justice, better education, that the elderly don't have to decide to pay for medicines or the rent, to make poverty a thing of the past, and fight the assault on labor unions by the federal government. He said that he was glad to see the unification of the State Senate, and thanked Senator Stewart-Cousins and his friend Senator Klein who he called a progressive. He thanked his wife and son, and his father saying that he owes all he is to today to his father.

Above - Candidate for the 32nd State Senate District addresses the audience after receiving the endorsement of Governor Andrew Cuomo.

Below - Elected officials clap as soon to be State Senator Luis Sepulveda thanks Governor Andrew Cuomo for his endorsement. 

Community Safety Meeting PS 105 April 13th

LAWYERS 4 JUMAANE Fundraiser On April 10

ATTORNEYS 4 JUMAANE

FUNDRAISER on Tuesday!

If you would like to attend, 

RSVP at Jumaane4NY@gmail.com

"IT'S TIME! LET'S GO!

Eric Adams 2021 - Proud to Pay Women MORE

A recent study by the NYC Public Advocate Letitia James documented one of the proudest accomplishments of my borough presidency. Not only has my office led the city in pay equity, we actually pay women 14 percent MORE than men. It's time to pay talented employees what they deserve everywhere!

Click here to read article.

Bronx Jewish Community Council - Volunteer Recognition Breakfast April 22, 2018

RSVP TODAY

BCEQ 2018 Membership Meeting & Environmental Conference

Wednesday, April 11, 2018 from 4 - 7 pm

Manhattan College Leo Engineering 

3825 Corlear Ave, Kingsbridge Bronx.

one block from the Broadway #1 238th Street stop.

Environmental Conference on the:  

Harlem River Watershed Plan, 

Van Cortlandt Park Lake on a Diet, 

Clean Water - Riverkeeper, Inc. v. Pruitt, 

Protecting Parkland - BCEQ v. NYC Pier 5 lawsuit, 

DEP Plans to clean the Harlem River, and Learn Up

Refreshments. Please Register for food.

Bronx Council for Environmental Quality www.bceq.org

Bronx Chamber of Commerce - Promote Your Business @ April 18, 2018 Gala

EXCELLENT OPPORTUNITY TO PROMOTE YOUR BUSINESS OR ORGANIZATION!

News 12, BronxNet, Bronx Times Reporter and other media will be covering The Bronx Version of the Academy Awards

Wednesday, April 18, 2018, 5:30-10:30 pm
Marina del Rey Caterers, Bronx NY

RSVP before April 4, 2018 for ticket discounts, sponsorship opportunities

 "First Come First Served"!

Bronx Business Awards 2018 Gala 

Honorees:

The Perez Family, Mastermind, Ltd.; Developer of the Year

Gino's Pastry Shop; Made in the Bronx Award of the Year

Bronx Community College; Institutional Member of the Year

Third Avenue BID; Non-Profit of the Year

D & J Ambulette Services, Inc.; Health Provider of the Year

E.A.T. w/ Culinary Professionals, Inc.; 

M/WBE Company of the Year

Portion of the 2018 Gala Proceeds to benefit

Special Olympics New York

Key Note Speaker

Rob Walsh, Former Commissioner of  NYC Dept. Small Business Services

Mistress Of Ceremonies

Jacqueline Catona Wayans 

TV Host & Producer, "Don't Give Up and Win"

To make reservations, advertise in the Gala Journal, and/or be a Sponsor to the 2018 Gala Celebration. Call Phil Cardone 718-828-3900 or e-mail Phil@BronxChamber.org

Click for Reservations, Journal Advertising & Sponsorships

I look forward to seeing you at the excellent networking event!

Nunzio Del Greco
President and CEO
Bronx Chamber of Commerce

"Network For Business Success"
1200 Waters Place, Suite 106
Bronx, NY 10461
718-828-3900
Nunzio@bronxchamber.org

 

"You never know where your next big deal is going to come from"!

Rep. Engel Calls for the Resignation or Firing of EPA Administrator Scott Pruitt

  Congressman Eliot L. Engel, a top member on the House Energy and Commerce Committee, issued the following statement calling for the resignation or firing of EPA Administrator Scott Pruitt:

“It is long past time for Scott Pruitt to resign or be terminated from his post as Administrator of the EPA.

“When Mr. Pruitt was nominated, I called him a ‘dangerous and unacceptable choice to lead the EPA’ because his past actions had shown an unyielding disdain for science, a deep disregard for our environment, and a general antipathy for the Agency he was tapped to run.

“Since then, he has shown the consistent contempt for the environment that I expected, but perhaps even worse, he has abused the public trust and trampled on the ethical guidelines that are designed to ensure that the Government’s business is conducted with impartiality and integrity.

“The person appointed to run the EPA should be someone who cares about protecting the health and safety of people all across the country, not someone who wages war on clean air and clean water and puts our climate in peril.  Nothing less than the future of our children is at stake.

“It is time for Mr. Pruitt to go.”

Luchese Crime Family Soldier and Organized Crime Associate Plead Guilty to Conspiring to Illegally Distribute Oxycodone

Defendants Threatened a Brooklyn Doctor and Obtained Fraudulent Prescriptions for More Than 230,000 Oxycodone Pills

  Earlier today, at the federal courthouse in Brooklyn, Anthony Grado, a member of the Luchese organized crime family, and Lawrence Tranese, an organized crime associate, pleaded guilty to conspiracy to distribute oxycodone.  The proceeding was before United States Magistrate Judge Sanket J. Bulsara.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.

“Luchese family member Grado imperiled our community, threatening a doctor to force him to write prescriptions for oxycodone and then trafficking in the addictive drugs,” stated United States Attorney Donoghue.  “Violent threats to a doctor by Mafia defendants, combined with their trafficking of oxycodone pills, posed an especially serious danger to our community.  As demonstrated by today’s guilty pleas, this Office together with our law enforcement partners will be relentless in the prosecution of organized crime and those who contribute to the opioid epidemic.”

“Organized crime groups and other criminal entities are seizing on the outbreak of addiction plaguing our country to make money,” stated FBI Assistant Director-in-Charge Sweeney.  “It shouldn’t be a shock that members of the Luchese crime family used violence to force a member of the medical community to further their criminal enterprise.  The FBI Joint Organized Crime Task Force is committed to aggressively pursuing these groups to stop them from further contributing to the deadly opioid epidemic affecting our country.”

According to court documents and statements at the plea proceedings, Grado and Tranese conspired with others to distribute oxycodone that they obtained through fraudulent prescriptions written on a Brooklyn-based doctor’s prescription pad.  Grado, a Luchese family member, together with Tranese and their co-conspirators provided the doctor with the names of people for whom the doctor should write prescriptions.  The doctor then wrote prescriptions in those names for medications containing oxycodone, usually without conducting any examination.  Grado, Tranese and their co-conspirators filled the prescriptions and sold the pills.  At other times, Grado held the doctor’s prescription pads himself and either had the doctor write the fraudulent prescriptions at his direction, or completed the prescriptions and later advised the doctor of the details. 

Members of the conspiracy used violence and threats of violence to seize control of the doctor’s prescription pads.  For example, in one recorded conversation, Grado told the doctor that he would make the doctor write “a thousand scripts a day and [expletive] feed you to the [expletive] lions” if the doctor wrote prescriptions without Grado’s approval.  In the same conversation, Grado also told the doctor that if the doctor’s newly ordered prescription pads “go in anybody’s hands,” besides Grado’s, “I’ll put a bullet right in your head.”  During the course of the conspiracy, Grado also ordered one of his associates to stab the doctor, and the associate carried out the order.  Finally, Grado called upon a higher-ranking member of the Luchese crime family to attend a “sit down,” or meeting, to resolve issues related to the pill distribution scheme.

When sentenced, the defendants each face up to 20 years in prison, as well as forfeiture and a fine of up to $1 million.

The Defendants:

ANTHONY GRADO

Age:  54

Monroe Township, New Jersey

LAWRENCE TRANESE

Age:  55

Brooklyn, New York

Correctional Officer Arrested For Taking Bribes To Smuggle Contraband Into The Metropolitan Correctional Center

Correctional Officer Victor Casado Took Bribes from a Federal Inmate in His Custody in Exchange for Smuggling Contraband into the Jail

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Ronald G. Gardella, Special Agent-in-Charge of the New York Field Office of the Department of Justice Office of the Inspector General (“DOJ OIG”), announced today the unsealing of a criminal Complaint in Manhattan federal court charging federal correctional officer VICTOR CASADO with taking bribes in exchange for smuggling contraband into the Metropolitan Correctional Center (“MCC”), a Manhattan detention facility that houses federal inmates.  CASADO was arrested this morning and will be presented today before Magistrate Judge Henry B. Pitman.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, correctional officer Victor Casado had a duty to ensure the safety and security of the Metropolitan Correctional Center and federal inmates in his care.  Instead he allegedly abused the trust placed in him by taking bribes to smuggle contraband to federal inmates.  Casado now transitions from Justice Department employee to defendant.”  

FBI Assistant Director William F. Sweeney Jr. said:  “As alleged, Casado served as a gateway for the introduction of contraband into a federal prison. Not only did his actions violate federal laws and prison protocol, but they posed additional risks for other prison guards who would be responsible for removing these items if found and disciplining those who were in possession. Casado’s alleged crime is a serious offense that will be me with just scrutiny.”

DOJ OIG Special Agent-in-Charge Ronald G. Gardella said:  “The DOJ OIG takes allegations of contraband smuggling into our federal prison system very seriously.  We will continue to vigorously investigate such allegations and work with our law enforcement partners to identify and bring to justice any Justice Department employee involved in a smuggling scheme.”

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

CASADO has been employed as a correctional officer at the MCC since 2012.

On multiple occasions in 2016 and 2017, CASADO smuggled cellphones, alcohol, over-the-counter medications, and food into the MCC in exchange for bribe payments.  These bribes were funneled to CASADO by non-incarcerated relatives or associates of the inmates, either in cash or by wire transfer.  For example, on multiple occasions, CASADO received bribes from an inmate (“Inmate-1”), transferred by one of Inmate-1’s attorneys, totaling more than $45,000 in exchange for smuggling alcohol and cellphones, among other contraband, into the MCC for Inmate-1.  Additionally, CASADO also requested and received thousands of dollars in payments from another inmate (“Inmate-5”), which were delivered to CASADO by Inmate-5’s relatives and a paralegal who worked for him.  Inmate-5 paid CASADO at CASADO’s insistence, ostensibly to fund travel by CASADO to the Dominican Republic.           

CASADO, 35, of the Bronx, New York, has been charged in the Complaint with one count of conspiracy to commit bribery and to introduce contraband into prison, which carries a maximum prison term of five years; one count of bribery, which carries a maximum prison term of 15 years; one count of introducing contraband into prison, which carries a maximum prison term of one year; one count of conspiracy to commit honest services wire fraud, which carries a maximum prison term of 20 years; and one count of honest services wire fraud, which carries a maximum prison term of 20 years.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Berman praised the investigative work of the FBI and the DOJ Office of the Inspector General in this investigation.

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

 [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Frank Mercedes Sentenced To Life In Prison Plus 10 Years For Hiring Contract Killers In 1999 Murder

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FRANK MERCEDES was sentenced today to life in prison plus 10 years for murder in connection with a drug conspiracy, murder-for-hire, murder-for-hire conspiracy, and use of a firearm resulting in death, in connection with his role in the murder of Richard Diaz, 28, in Manhattan in 1999.  MERCEDES was convicted after a one-week jury trial before U.S. District Judge Richard J. Sullivan, who imposed today’s sentence.

U.S. Geoffrey S. Berman said:  “Frank Mercedes callously ordered the murder of someone who had stolen from his drug business.  As a result of that order, 28-year-old Richard Diaz—an innocent man who had nothing to do with Mercedes’ drug trafficking—was brutally killed in the summer of 1999.  Today’s proceeding is a reminder that this Office will never stop working to obtain justice on behalf of those affected by this type of senseless violence. We hope that today’s sentence, almost 20 years after Mr. Diaz’s death, brings some small measure of peace to Mr. Diaz’s family.”

According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:

FRANK MERCEDES, a/k/a “Jabao,” ran a significant drug enterprise in Upper Manhattan in the late 1990s.  In the summer of 1999, MERCEDES hired three men, including Jose Luis Gracesqui, a/k/a “Muffler,” to kill one of his drug customers (the “Intended Victim”) after the Intended Victim and a number of his associates stole heroin and money from MERCEDES.

On the night of July 19, 1999, after tracking the Intended Victim for days, Gracesqui and another member of the crew saw the Intended Victim in a car and followed the car through Manhattan.  When the car with the Intended Victim stopped at a red light, Gracesqui approached the passenger’s side window and began shooting.  The shots hit both the Intended Victim and Richard Diaz, who was driving the car.  Mr. Diaz was able to drive a short distance to the Henry Hudson Parkway, until he lost consciousness and died.  The Intended Victim sustained serious injuries, although he survived.  Shortly thereafter, MERCEDES met with Gracesqui and the other members of the hit team to pay them tens of thousands of dollars for committing the murder. 

MERCEDES, 51, from the Dominican Republic, was sentenced to three concurrent life sentences, to be followed by a consecutive term of ten years.

Gracesqui was previously convicted in January 2016 of charges relating to his role in the murder of Richard Diaz, and also is currently serving a life sentence. 

Mr. Berman praised the investigative work of the U.S. Drug Enforcement Administration (DEA) New York Drug Enforcement Task Force, which comprises agents, detectives, and investigators from the DEA, the New York City Police Department, and the New York State Police.  Mr. Berman also thanked the Special Agents of the United States Attorney’s Office for the Southern District of New York.

California Man Pleads Guilty To Multimillion-Dollar Fraud On Film Investors

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that STEVEN BROWN pled guilty today to defrauding victims of over $9.5 million by participating in a fraudulent scheme to solicit investments in feature-length films and documentaries based on misrepresentations and fraudulent documents.  BROWN pled guilty before United States Magistrate Judge Henry B. Pitman and is scheduled to be sentenced on July 18, 2018, at 2:00 p.m., before U.S. District Judge Kimba M. Wood. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As he admitted today, Steven Brown defrauded investors of millions of dollars by convincing them to invest in Hollywood films and documentaries with false promises and fraudulent documents.  Even after he was arrested, he continued his fraud and induced yet another investor to provide additional money using the same fraudulent tactics.  Now Brown’s scheme has been revealed, and he faces significant time for his scheme.”        

According to allegations in an Indictment and other documents filed in federal court, as well as statements made in public court proceedings:

From 2009 through 2017, STEVEN BROWN participated in a scheme in which he, along with co-conspirators, solicited investments in the marketing and production of feature-length films and documentaries from investors, including by furnishing them with fraudulent documents and by promising guaranteed returns, which never materialized.

In order to solicit these investments, BROWN and others made material misrepresentations about, among other things, their own investments in the films for which they were soliciting money, as well as investments that they claimed to have received from other investors.  To support their claims, BROWN and his coconspirators at times sent the victims falsified financial records that reflected investments in the films that had never actually been made.  BROWN and his coconspirators also told certain victims that their investments would be guaranteed by a fictitious entity, and provided falsified documents in support of these purported guarantees.  On one occasion, Brown sent an email to a victim attaching what purported to be a current bank statement for an account held by the fictitious entity, as well as an email from an executive at the fictitious entity guaranteeing the victim’s investment.  In fact, neither the account nor the executive actually existed.

BROWN continued to solicit investments in film projects based on misrepresentations even after being arrested on the criminal charges brought in this case.  In 2017, BROWN solicited an investment from a victim of the scheme in a film production and distribution company with which BROWN was purportedly involved by promising the victim a 50 percent return on the investment.  The victim’s funds were never returned and were, in part, used to pay expenses unrelated to any film projects.    

In total, BROWN and his co-conspirators solicited millions of dollars from their victims, allegedly to be used for either marketing or production costs associated with the various films.  In reality, however, the money that was received from these investors was primarily used to fund other projects, to pay back previously defrauded investors, and to pay the personal expenses of BROWN and his co-conspirators, including, among other things, the purchase of a condominium for BROWN.

BROWN, 48, of Los Angeles, California, pled guilty to one count of conspiring to commit wire fraud, which carries a maximum term of 20 years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.

A.G. Schneiderman Releases New Report On Mutual Fund Fees

Announces Agreement By 13 Major Firms To Make New And Enhanced Disclosures To Retail Investors Following Industry-Wide Investigation

Disclosures Will Affect 400 Actively Managed Mutual Funds; U.S. Mutual Funds Currently Manage Over $16 Trillion In Net Assets Nationwide 

AG Releases Report Finding Mutual Fund Firms Gave Unequal Access To Important Information About Actively Managed Funds; Firms Commended For Agreeing to Publish the Information For All Investors

AG Schneiderman: Firms Must Ensure That All Investors Have The Same Access To Information About Their Investment Options 

  Attorney General Eric T. Schneiderman announced that after an industry-wide investigation into mutual fund disclosures and fees, 13 major mutual fund firms—including those run by some of the largest players in the mutual fund industry—have agreed to voluntarily publish important information about their mutual funds to all retail investors. Under the agreements announced today, the firms will disclose new information that can help retail investors determine whether a higher-cost, actively managed mutual fund fits their investment goals better than another, lower-cost alternative.

The newly disclosed information, known as Active Share, measures the percentage of stock holdings in a fund’s portfolio that differs from that fund’s benchmark index—key information investors can use to determine whether a higher-fee, actively managed fund has the potential to beat the benchmark returns of a lower-cost, passively managed fund. The AG’s investigation found that while these major mutual fund firms regularly disclosed this information to well-heeled institutional and professional investors, retail investors were often excluded.

“These new disclosures will give Main Street investors access to critical information before making investment decisions for themselves and their families,” said Attorney General Schneiderman. “By working with us to help level the playing field for all investors, these firms are taking an important step forward. I encourage all mutual fund firms to follow suit.” 

A report issued today by Attorney General Eric Schneiderman’s Investor Protection Bureau, “Mutual Fund Fees and Active Share,” details the findings of an investigation into fees charged by actively managed mutual funds, their disclosures to investors, and their portfolio composition relative to their fees.

The Attorney General’s investigation considered fees and disclosures for over 2,000 actively managed mutual funds – mutual funds are a popular way for investors to diversify their savings, and today, nearly half of American households invest in mutual funds, either directly through individual and retirement accounts or indirectly through other investment vehicles. 

The key findings detailed in the report are:

• Actively managed funds are typically much more expensive investment options than index funds. On average, fees on an investment in an actively managed fund cost an investor almost 4.5x more per year than fees on an investment in a passive fund.
• Higher fees for actively managed mutual funds do not necessarily reflect a higher level of active management. When choosing among actively managed mutual funds, investors should not conclude that a higher fee necessarily reflects a higher level of active management, as measured by the fund’s variation from its benchmark. Based on a review of fees and disclosures for over 2,000 mutual funds, investors cannot necessarily assume that a high fee, or expense ratio, for a particular mutual fund means that the fund will have a high Active Share – in other words, an investor cannot look only to the fees charged to invest in a fund in order to assess the fund’s potential to outperform the market (or the risk of underperformance), as measured by the Active Share metric. 
• Fund managers use Active Share information to help analyze mutual fund investments, and mutual fund companies provide Active Share to some professional and institutional investors, but generally not to retail investors. The Active Share metric allows investors to understand how much a particular fund overlaps with or diverges from its benchmark index. While not an absolute indicator of active management, Active Share has become a widely-used metric for mutual fund managers.

Following the Attorney General’s investigation, 13 firms agreed to make Active Share information available to all mutual fund investors by committing to publish Active Share for their actively managed, equity-based mutual funds available to U.S. investors (the 14th firm surveyed by NYOAG – Fidelity Management & Research Company – was already publishing Active Share for its relevant funds). Each of these firms will post on their websites the Active Share of the relevant funds on a quarterly basis. The firms who have agreed to publish Active Share information are: AllianceBernstein LP; BlackRock, Inc.; The Dreyfus Corporation (a subsidiary of BNY Mellon); The Capital Group Companies, Inc. (American Funds); Columbia Management Investment Advisors, LLC; Eaton Vance Management; Goldman Sachs Asset Management, L.P.; JP Morgan Chase & Co.; OppenheimerFunds, Inc.; Nuveen, LLC (a subsidiary of TIAA); T. Rowe Price Associates, Inc.; USAA Asset Management Company; and The Vanguard Group, Inc. The report recommends that all mutual fund firms provide Active Share information to all investors equally. Most of the firms that have agreed to post Active Share information will do so beginning in spring 2018.

The report also notes that investors must be more vigilant than ever in an era when the Trump administration and Congress have taken steps to roll back federal regulations that protect investors when they make retirement investment decisions, like choosing to invest in actively management mutual funds. Retail investors often rely on the advice of brokers or financial advisors, and there is significant uncertainty regarding the standard of care those advisors owe to retirement investors under federal law. Accordingly, the report concludes that Americans saving for retirement must be especially vigilant in evaluating investment choices and the investment recommendations made by their advisors. The report advises that investors should understand Active Share and can consider asking for Active Share information when making mutual fund investment decisions.

MAYOR DE BLASIO ANNOUNCES COMPLETION OF ROOF REPLACEMENTS AT 65 NYCHA BUILDINGS

New roofs prevent mold and leaks in apartments for 13,000 residents, construction kicks off to replace another 78 roofs by next summer

  Mayor Bill de Blasio today announced that roofs have been completely replaced at 65 NYCHA buildings. These new roofs will benefit approximately 13,000 residents by reducing mold, which can cause asthma and other respiratory illness. This marks the completion of the first phase of a major roof replacement begun by the City in 2015. The first 65 roofs cost approximately $91.5 million, $8.5 million under budget. A second phase of 78 roofs, costing $100 million, has now entered construction and will be completed by June 2019.

The Mayor announced the roof replacement program’s progress at Queensbridge Houses, the largest public housing development in the United Sates. All 26 roofs at the development have been replaced for the first time in more than 30 years. In addition to new roofs, the de Blasio Administration has also installed free wifi throughout the development, 360 CCTV cameras and 858 security lights. Crime at Queensbridge has fallen 21% since 2013.

“Residents may never see the new roof over their heads, but they will feel the difference. We are targeting a major source of leaks and mold, making kids healthier and helping parents sleep easier. With the right resources, we can deliver real-time improvements to the quality of life for thousands of families,” said Mayor de Blasio.

“These new roofs mean real quality of life improvements for 13,000 residents,” said NYCHA Chair and CEO Shola Olatoye. “While only the first phase in a $1.3 billion investment, through these critical infrastructure repairs, we are making major strides toward achieving our NextGeneration NYCHA goal to provide safe, clean and connected communities for all public housing residents.”

The Mayor has dedicated $1.3 billion to repair 950 deteriorating roofs for 175,000 NYCHA residents. Leaky roofs are not only responsible for key sources of water and excessive moisture that causes mold in apartments, but also represent a danger to a building’s physical structure. This critical infrastructure upgrade will provide a long-term, cost-saving solution that will improve the quality of life for residents.

 Phase 1: COMPLETE

65 Roofs Fully Replaced  $91.5 Million

Borough	Development	number of buildings	Total City         Funds
Queens	Queensbridge North	13	$28,183,463.00
Queens	Queensbridge South	13	$27,863,809.00
Brooklyn	Albany 1 & 2	9	$9,870,447.00
Bronx	Parkside	14	$14,441,871.00
Brooklyn	Sheepshead Bay	16	$11,216,416.00

Phase 2: IN CONSTRUCTION

78 Roofs to be Replaced  $100 Million

Borough	Development	Number of buildings	Total City Funds
Manhattan	Wise Towers	2	$3,377,000.00
Manhattan	White	1	$1,733,000.00
Bronx	Sedgwick	7	$7,534,000.00
Manhattan	Saint Nicholas	13	$15,691,000.00
Brooklyn	Tilden	8	$4,682,000.00
Brooklyn	Cypress Hills	15	$13,726,000.00
Brooklyn	Breukelen	32	$53,352,000.00

The de Blasio Administration has made an unprecedented commitment to preserve and strengthen public housing. This investment is part of the Administration’s total commitment to $2.1 billion to support NYCHA’s capital infrastructure from Fiscal Year 2014 to Fiscal Year 2027 and $1.6 billion to support NYCHA’s operations from Fiscal Year 2014 to Fiscal Year 2022. This investment includes $1.3 billion to fix over 900 roofs, over $500 million to repair deteriorating exterior brickwork at nearly 400 buildings, and $140 million to improve security at 15 NYCHA developments.  The City waived NYCHA’s annual PILOT and NYPD payments to the City, relieving NYCHA of nearly $100 million in operating expenses a year. In January 2018, the Mayor announced $13 million to improve NYCHA’s response to heating emergencies this winter, followed by an additional $200 million for long-term heating improvements at 20 NYCHA developments.

Wave Hill Events April 18‒April 26 Earth Day Weekend!

Wed, April 18    2018 Horticultural Lecture #3: Timothy Young—Writers and Gardens in the Archives   

The stories of great gardens are told in their physical presence—and on paper. Archives show the planning and execution of gardens through journals and sketches. They also reveal the philosophy of the gardener. This lecture focuses on the archival legacies of several 20th-century writers and artists who built gardens, including Vita Sackville-West, Robert Dash and Rupert Barneby and Dwight Ripley. Timothy Young holds the title of Curator of Modern Books and Manuscripts at Beinecke Library at Yale University. Individual tickets: $25/$20 Wave Hill Member or student. Seating is limited, and advance reservations are recommended, online at wavehill.org. The lecture takes place at the New York School of Interior Design at 170 East 70^thStreet in Manhattan.

NEW YORK SCHOOL OF INTERIOR DESIGN, 6‒7:30PM

Sat, April 21    Family Art Project: Earth Day Gratitude Garden

Reflect upon the abundance of this Earth. What are your favorite things that grow, be they trees, bees, broccoli or bananas? Sculpt a miniature garden using oil clay in bright colors. Then share what you are thankful for on a paper flag, and plant it in our outdoor, communal “gratitude garden.” You’ll see that the more gratitude the garden is given, the more it grows! Free, and admission to the grounds is free until noon. Earth Day Weekend event.

WAVE HILL HOUSE, 10AM‒1PM

Sat, April 21    In The Shop: Spend $50, Receive a Reusable Tote

In honor of Earth Day, receive a reusable tote when you spend $50 or more in The Shop at Wave Hill. Earth Day Weekend event.

PERKINS VISITOR CENTER, 10AM‒4PM

Sat, April 21    Woodworking Workshop: Green Roof Birdhouse

Sharpen both your woodworking and gardening skills as you construct and plant a birdhouse with a rooftop of live succulent plants. Master carpenter and Director of Facilities Frank Perrone and Director of Public Programs Laurel Rimmer provide instruction and inspiration in this hands-on workshop. No previous carpentry experience required. Ages 12 and older welcome with an adult. Space is limited! $60 per project; 10% discount to Wave Hill Members. Registration required, online at wavehill.org or onsite at the Perkins Visitor Center. Earth Day Weekend event.

MEET AT WAVE HILL HOUSE, 10AM–4PM

Sat, April 21    Earth Day Garden Meditation

Use the garden landscape as inspiration this Earth Day weekend, with healer, artist and yogi Sara Hart of iHart Lens. Using the art of meditation and other healing arts, practice simple techniques to connect and feel grounded on any occasion, anywhere, any day. Indoor space is provided in case of rain. Registration is not required. Free, and admission to the grounds is free until noon. Earth Day Weekend event. 

ON THE GROUNDS, 11AM–NOON

Sat, April 21    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM‒NOON 

Sat, April 21    Wave Hill History Walk

Discover the fascinating history of Wave Hill’s architecture and landscape on a walk with a Wave Hill Garden Guide. Hear about the people who once called Wave Hill home, among them Mark Twain, Theodore Roosevelt, Bashford Dean and Arturo Toscanini. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 1PM

Sat, April 21    Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. Avifauna: Interplay of Birds + Habitatfeatures artworks that delve into the relationship between birds and their habitats—from the role birds play in propagating plants to changes in how natural and built environments affect migration patterns. Artists working in photography, video, artist books, wall painting, installation, drawing and sound include Tatiana Arocha, Tanya Chaly, Marna Chester, Nina Katchadourian, Paula McCartney, Jeff Mertz, Peter Morgan, Sarah Nicholls, James Proseck, Jenna Spevek and Fred Tomaselli. In the Sunroom Project Space, Adrienne Elise Tarver builds tactile plant sculptures that create an immersive, sheltering landscape. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Sun, April 22    Family Art Project: Earth Day Gratitude Garden

Reflect upon the abundance of this Earth. What are your favorite things that grow, be they trees, bees, broccoli or bananas? Sculpt a miniature garden using oil clay in bright colors. Then share what you are thankful for on a paper flag, and plant it in our outdoor, communal “gratitude garden.” You’ll see that the more gratitude the garden is given, the more it grows! Free with admission to the grounds. Earth Day Weekend event.

WAVE HILL HOUSE, 10AM‒1PM

Sun, April 22    In The Shop: Spend $50, Receive a Reusable Tote

In honor of Earth Day, receive a reusable tote when you spend $50 or more in The Shop at Wave Hill. Earth Day Weekend event.

PERKINS VISITOR CENTER, 10AM‒4PM

Sun, April 22    Pre-Concert Tea

Enjoy Afternoon Tea in the Mark Twain Room prior to today’s concert in Armor Hall. The Café at Wave Hill pairs a classic menu with an assortment of green, black and herbal teas. This traditional tea service includes the four classic elements of savory, scones, sweets and tea. The menu, presented by Great Performances, includes an array of tea sandwiches, scones and bite-sized desserts. Afternoon Tea also includes a glass of sparkling wine. Afternoon Tea Service is $36. Wave Hill Members receive a 10% discount. Advance registration is required online. We will take reservations until 5PM, Thursday, April 19.

WAVE HILL HOUSE, NOON–2PM

Sun, April 22    Concert: João Luiz, Guitar & special guest Danilo Brito, Mandolin 

João Luiz of the Brasil Guitar Duo will return for another splendid concert. This time he will be joined by fellow Brazilian and master mandolinist Danilo Brito. The two performed sold-out shows this past spring at Jazz at Lincoln Center. Together they will showcase the choro, an enduringly popular Brazilian musical genre known for instrumental virtuosity, improvisation, syncopation and counterpoint. Tickets for this concert are $28 plus admission to the grounds/$24 Wave Hill Member/$12 Children ages 8–18. Order tickets online at wavehill.org or onsite at the Perkins Visitor Center. For additional information, please call 718.549.3200 x251.

WAVE HILL HOUSE, 2PM

Sun, April 22    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

Mon, April 23

Closed to the public.

Tue, April 24    Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Tue, April 24    Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. Avifauna: Interplay of Birds + Habitatfeatures artworks that delve into the relationship between birds and their habitats—from the role birds play in propagating plants to changes in how natural and built environments affect migration patterns. Artists working in photography, video, artist books, wall painting, installation, drawing and sound include Tatiana Arocha, Tanya Chaly, Marna Chester, Nina Katchadourian, Paula McCartney, Jeff Mertz, Peter Morgan, Sarah Nicholls, James Proseck, Jenna Spevek and Fred Tomaselli. In the Sunroom Project Space, Adrienne Elise Tarver builds tactile plant sculptures that create an immersive, sheltering landscape. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–5:30PM,  March 15–October 31. Closes 4:30PM, starting November 1.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.