Demolitions Approved For 567 And 569 Courtlandt Avenue In Melrose, The Bronx

 

Permits have been issued for the demolition of two buildings at 567 and 569 Courtlandt Avenue in Melrose, The Bronx. The adjacent lots are located between East 149th Street and East 150th Street. NY Psychotherapy is listed as the owner behind the applications.

Both 567 Courtlandt Avenue and 569 Courtlandt Avenue stand one story and 15 feet tall. The demolition on its lot will clear 3,525 square feet of space for 567 Courtlandt Avenue.

Savita Vinas of PR is listed as the applicant of record for both projects. The properties are located steps from the Third Avenue-149th Street subway station, which is serviced by the 2 and 5 trains.

Former NYCHA Superintendent Convicted Of Bribery And Extortion Offenses

 

In the First Trial Following a 70-Person Takedown in February 2024, Joy Harris, a Former New York City Housing Authority Superintendent, Was Convicted of Bribery and Extortion for Accepting Cash from Contractors in Exchange for Awarding Contracts

Damian Williams, the United States Attorney for the Southern District of New York, announced that Joy Harris, a former New York City Housing Authority (“NYCHA”) superintendent, was convicted of bribery and extortion under color of official right for soliciting and accepting tens of thousands of dollars from contractors in exchange for awarding those contractors no-bid contracts at NYCHA developments.  The verdict followed a one-week trial before U.S. District Judge Lewis A. Kaplan, who will sentence HARRIS on February 26, 2025. 

U.S. Attorney Damian Williams said: “Corruption is an insidious crime—difficult to detect, corrosive in its effect on government agencies, and damaging to public trust in government institutions. Joy Harris’s years-long abuse of her position to demand tens of thousands of dollars in bribes betrayed her duty to NYCHA residents, the City of New York, and taxpayers.  The jury’s unanimous verdict sends a clear message that those who use their public offices for personal gain will be held accountable.” 

According to the evidence presented in court during the trial:

NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year.  When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process.  However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including assistant superintendent and superintendents, could hire a contractor of their choosing without soliciting multiple bids.

HARRIS, an assistant superintendent and superintendent at four different NYCHA developments in Manhattan between 2015 and 2021, demanded and accepted cash in exchange for NYCHA contracts.  She required contractors to pay bribes up front in order to be awarded the contracts or required bribe payments after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so that the contractor could be paid by NYCHA.  HARRIS typically demanded 10% of the contract value—between $500 and $1,000, depending on the size of the contract.  In total, HARRIS demanded and accepted tens of thousands of dollars in bribes in exchange for awarding contracts worth hundreds of thousands of dollars.

HARRIS, 49, of Bushkill, Pennsylvania, was convicted of one count of federal program bribery, which carries a maximum term of 10 years in prison, and one count of extortion under color of official right, which carries a maximum term of 20 years in prison.

The maximum potential sentences in this case 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. Williams praised the outstanding investigative work of the New York City Department of Investigation, U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the special agents and task force officers of the U.S. Attorney’s Office for the Southern District of New York.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Of the 70 current and former NYCHA employees charged with bribery and extortion offenses in February 2024, 55 of the defendants have now pled guilty or been convicted at trial.  The charges against the remaining defendants are pending.

Attorney General James Urges Federal Court to Reverse Restrictions on Access to Abortion Medication Mifepristone

 

AG James and 17 AGs File Amicus Brief to Protect Access to Mifepristone in North Carolina

New York Attorney General Letitia James and a coalition of 17 attorneys general filed an amicus brief in support of a district court decision finding that North Carolina can not impose unnecessary and burdensome restrictions to access mifepristone that were rejected by the U.S. Food and Drug Administration (FDA). The coalition filed an amicus brief in Bryant v. Stein, asking the United States Court of Appeals for the Fourth Circuit to uphold the district court’s decision. The coalition argues that mifepristone has been safely and widely used for decades, and barriers to accessing mifepristone can drive up medical risks for patients.

“Mifepristone is a safe medication that has been used by millions of people, and these dangerous restrictions are causing real harm to people across the country,” said Attorney General James. “Reproductive health care should not be weaponized as a tool to win political points; it is a human right that should be accessible to everyone who needs it. I will always defend people’s reproductive rights and access to this critical health care.”

Mifepristone is a historically safe, FDA-approved medication used for abortion, as well as for treatment of miscarriage. When the FDA first approved its use in 2000, it added conditions for its distribution to ensure safe use. Since then, pursuant to its federal mandate to balance drug safety with patient access, the FDA has adopted a risk evaluation and mitigation strategy (REMS) program for mifepristone. As required by federal law, the FDA has periodically reevaluated the mifepristone REMS program and has reduced the original restrictions imposed on mifepristone to better balance safety with access. 

Since 2016, the FDA has removed certain restrictions on mifepristone access, such as the requirement to obtain mifepristone in person and from a physician, on the grounds that these restrictions neither improved patient safety nor adequately minimized burdens on the health care system. In 2023, North Carolina imposed various restrictions on the use and distribution of mifepristone, including many of the restrictions that were expressly removed by the FDA. The plaintiff, an abortion provider in North Carolina, sued to challenge the state restrictions as preempted by federal law. The district court held that, while states have broad authority to regulate health care, a state law that reimposes restrictions removed by the FDA under the agency’s statutory authority to create REMS would be preempted. The coalition’s amicus brief defends the district court’s decision as striking the proper balance between state authority and FDA regulation. 

Joining Attorney General James in filing the brief are the attorneys general of California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and the District of Columbia. 

8 REPUTED GANG MEMBERS/ASSOCIATES INDICTED FOR MASSIVE FRAUD SCHEME; TRIED TO CASH $12.6 MILLION COVID RELIEF CHECK

 

Defendants Allegedly Spent Money on Rolls Royces, Chartered Luxury Yachts, Jewelry and Designer Clothes

Bronx District Attorney Darcel D. Clark announced that eight alleged members or associates of the “Shiesty 66” gang have been indicted for a bank fraud scheme that allegedly netted them over $10 million, after an investigation by the Office’s Investigations Division, New York City Police Department, U.S. Secret Service, and U.S. Postal Inspection Service. 

District Attorney Clark said, “The defendants allegedly conspired to steal millions of dollars, recruiting vulnerable people as partners in fraud. At one point, they allegedly attempted to steal $12.6 million in federal COVID-19 relief funds. The defendants allegedly spent the money as quickly as they stole it, on luxury items.” 

NYPD Interim Commissioner Thomas G. Donlon said, “We are committed to identifying and investigating alleged gang members and ending the illegal schemes used to fund their criminal activities, as highlighted by this indictment. The NYPD will always vigorously collaborate with our law enforcement partners to hold accountable those involved in deceit and fraud.”

Special Agent in Charge of the U.S. Secret Service New York Field Office Patrick J. Freaney said, “The Secret Service is proud to join with its law enforcement partners in announcing the indictment of these reputed gang members who, as alleged, thought nothing of planning exorbitant acts of fraud to fleece taxpayers in the name of personal gain. Our investigators are committed to disrupting this type of wanton criminality, particularly when the fraud seeks to exploit funding dedicated to those in dire need."

Inspector in Charge of the U.S. Postal Inspection Service New York Division, Daniel B. Brubaker, said, “The defendants, members of the “Shiesty 66” gang, allegedly conspired to steal checks from the mail worth millions of dollars. These stolen funds were allegedly used to support the defendants’ lavish lifestyles. This far-reaching investigation by Postal Inspectors and our law enforcement partners involved victims from across the country. Postal Inspectors work aggressively to pursue mail thieves and protect our customers from falling victim to fraudulent schemes. These indictments are a shining example of our partnership with the NYPD, the U.S. Secret Service, and the Bronx District Attorney’s Office. The message to other would-be mail thieves is this: we will utilize every resource at our disposal, travel across the country to identify victims, and leverage every partnership to bring you to justice.” 

District Attorney Clark said the defendants are variously charged over four indictments with Enterprise Corruption, Grand Larceny, Forgery, Criminal Possession of Stolen Property, and related charges. The defendants all have been arraigned, before Bronx Supreme Court Justice Margaret Clancy who set bail on six defendants and remanded two defendants. They are due back in court on November 19, 2024.

The investigation began in November 2021 after reports of shots fired near East 166th Street and Sheridan Avenue led to the identification of alleged members of the Shiesty 66 gang. Public profiles of the gang on social media revealed some of its members were allegedly involved in “card cracking” in which they recruited people on social media to give them access to their debit card information, deposited a phony check in the account, immediately withdrew cash at an ATM, gave the account holder a kickback and then the card was reported stolen.

According to the investigation, between April 28, 2022, and September 11, 2023, the defendants, acting in concert with each other, engaged in a card-cracking, check-washing, and bank fraud scheme. They allegedly exploited loopholes in the banking system to commit fraud throughout the tri-state area and the West Coast.

In one instance, one of the defendants attempted to get the information needed to deposit a stolen U.S. Treasury check worth $12.6 million meant for Mount Sinai Medical Center as part of Covid relief funds.

The defendants allegedly used the stolen money to buy clothes from Louis Vuitton, Gucci, Cartier, and Burberry, as well as Rolex and Audemars Piguet watches, and lavish trips where they chartered boats in Paris, Miami, Kuwait, and other destinations. 

District Attorney Clark thanked NYPD Detective Ryan Blair of the Violent Crime Squad, NYPD Intelligence Research Specialist Britney Ford, NYPD Detective Daniel Alessandrino of the Financial Crimes Task Force, Special Frauds Squad; U.S. Secret Service Agent Christine Miller, and U.S. Postal Service Inspector Tad Conklin for their work on the investigation.  

An indictment is an accusatory instrument and not proof of a defendant’s guilt

The NYC Hispanic Chamber Of Commerce in partnership with US Hispanic Chamber of Commerce, Wells Fargo, & Avanzar for our Finance webinars

 

RSVP Required to Attend

Starts Oct 22 | 6pm - 7pm RSVP Open Next Webinar Discusses Cash flow/Credit Options by Wells Fargo

RSVP Today

Peruvian National Sentenced in Transnational Scheme to Defraud Spanish-Speaking United States Consumers

 

A Peruvian national was sentenced to 98 months in prison and to pay nearly $700,000 in restitution to his more than 1,100 victims for his role overseeing a transnational fraud conspiracy that targeted recent immigrants to the United States.

According to court documents, Jose Alejandro Zuñiga Cano, 40, of Lima, was the operator of a Peruvian call center that defrauded and extorted Spanish-speaking United States residents by falsely threatening them with arrest, court proceedings and immigration consequences. Zuñiga was extradited from Peru in March to face charges related to the scheme and pleaded guilty to conspiracy to commit mail and wire fraud in July.

In pleading guilty, Zuñiga admitted that he owned and operated a call center in Lima, that placed unsolicited calls to Spanish-speaking consumers in the United States and falsely claimed that they had won or qualified for free products, including computer tablets and English language courses. On later calls, Zuñiga and his co-conspirators falsely claimed that victims were contractually obligated to pay large sums to receive the products. Zuñiga and his co-conspirators impersonated lawyers, court officials, police officers and representatives of a supposed “minor crimes court” to intimidate victims and force them to send payments. Zuñiga and his co-conspirators queried potential victims about their country of origin and threatened victims with court proceedings, arrest and immigration consequences if they did not pay.

Many victims who made payments following these lies and threats were frequently re-victimized by Zuñiga and his co-conspirators with a related restitution scheme. The defendant and his co-conspirators placed additional calls to victims who had already paid and, while posing as lawyers for a U.S. court, falsely represented that victims were entitled to restitution payments and would receive their money back if they paid additional fees. In reality, there was no lawyer, no restitution order and no funds returned to the victims who made those additional payments. Instead, Zuñiga kept those additional victim payments for himself.

“The Justice Department’s Consumer Protection Branch is dedicated to protecting vulnerable U.S. consumers from fraudsters no matter where those fraudsters reside,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This sentence demonstrates that individuals who defraud our immigrant communities will be held accountable in U.S. courts. We will continue to work with our partners to ensure that individuals who impersonate government and court officials are brough to justice.”

“The long arm of the American justice system has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations, to include the elderly and recent immigrants,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will not allow transnational criminals to use fear tactics and intimidation to steal money from the public we serve. Individuals who defraud American consumers will be brought to justice, no matter where they are located.”

“This sentencing of Jose Alejandro Zuñiga Cano is proof of the dedication between the U.S. Postal Inspection Service, the Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office to stop at nothing to bring those suspects who victimize our citizens to justice,” said Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS) Miami Division.

With this sentencing in the U.S. District Court for the Southern District of Florida, 12 defendants have now been convicted and sentenced in connection with a $15 million transnational fraud scheme that defrauded and threatened Spanish-speaking U.S. consumers, claiming they would suffer legal consequences if they did not pay for English-language learning products they never requested. Collectively, the scheme was responsible for defrauding more than 30,000 Spanish-speaking residents of the United States. Many of the victims were recent immigrants who had merely expressed interest in learning English.

The 12 defendants include eight Peruvian call center owner-operators and four distribution center owner-operators who processed payments, distributed products and facilitated the fraud in the United States. Many of the defendants shared strategies on how to defraud Spanish-speaking residents of the United States.

Zuñiga is the eighth defendant to be extradited from Peru and plead guilty in federal court to fraud charges related to Peruvian call centers involved in the English language learning scam. In 2021 and 2022, U.S. District Judge Robert N. Scola, Jr., sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla and Josmell Espinoza to sentences ranging from 88 months to 110 months in prison.

USPIS and the Civil Division's Consumer Protection Branch investigated the case.

Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Civil Division’s Consumer Protection Branch are prosecuting the case, and Assistant U.S. Attorney Annika Miranda for the Southern District of Florida is handling asset forfeiture. The Justice Department’s Office of International Affairs, U.S. Attorney’s Office for the Southern District of Florida, State Department’s Diplomatic Security Service, U.S. Marshals Service, Peruvian National Prosecutor General’s Office and Peruvian National Police provided critical assistance.

The Justice Department continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Vital Parks Forum Mon, Oct 21

 

Dear Community Partner, Our parks are vital, and so is your voice. Join NYC Parks Commissioner Sue Donoghue's Vital Parks for All forum on Monday, October 21st, from 6:30 p.m. to 8 p.m., at Lincoln Hospital Auditorium, 234 East 149th Street, in the Bronx. The event is co-hosted by Bronx Borough President Vanessa L. Gibson. The evening will include a demonstration of the Vital Parks Explorer, a new tool to empower community members and leaders like you with the data needed to both celebrate and advocate for our parks. You will also have an exclusive opportunity to ask questions to both NYC Parks Commissioner Sue Donoghue and Bronx Borough President Vanessa L. Gibson. Space is limited, please RSVP to rsvp@parks.nyc.gov now. We hope to see you there! For questions or concerns, contact Community Engagement Director Vlad Cruz at vcruz@cityparksfoundation.org

DiNapoli Report Highlights Where New Yorkers Work

 

Health Care and Social Assistance Jobs Had Greatest Post-Pandemic Recovery

A report by State Comptroller Thomas P. DiNapoli shows the state’s employment picture has changed in significant ways since 2000 with the health care and social assistance industries increasing their share of total employment as manufacturing and financial activities shrank. Employment in health care and social assistance had the greatest increase in jobs since 2019, with the sector now comprising nearly one in five jobs statewide. This sector was also the top employer in 2023 in every region of New York except the Southern Tier, and had an average annual wage of $65,407, 28.5% below the state average of $91,427.

“New York was hit early and hard by the pandemic, with every industry in every region losing jobs,” DiNapoli said. “It took the state nearly two years longer than the nation to regain those jobs and some regions are still struggling. This report focuses on how employment has changed across the state, and provides data to assist policymakers in examining job and workforce development programs to help ensure quality employment opportunities for all New Yorkers.”

DiNapoli’s report found:

• While the nation fully recovered jobs lost by June 2022, New York did not recover until April 2024.
• In 2023, seven of the 15 industry sectors, including health care, had employment above 2019 levels; the remainder, particularly retail trade and leisure and hospitality industries, struggled to regain the jobs lost in 2020.
• Employment in financial activities, which pays average annual wages more than double the state average, dropped from 9% of all jobs in 2000 to 7.8% in 2023. Similarly, employment in manufacturing, which comprised 8.8% of the total jobs in 2000, was over four percentage points lower in 2023.
• The average annual wage increased 21.3% from 2019, exceeding the Mid-Atlantic inflation rate of 17% for this period. While all industries experienced double digit growth in wages from 2019 to 2023, the strongest wage growth was in industries that have made the weakest employment recovery. Factors that could be influencing such gains are minimum wage increases, labor shortages or productivity gains.
• Approximately one in every nine workers (11.6%) earned the state minimum wage in 2022 (the latest data available), though rates were much higher in the leisure and hospitality and retail trade sectors, at 27.1% and 22.4%, respectively. Both ranked among the top industries for wage growth from 2019 to 2023. While the minimum wage changed little in New York City from 2019 to 2023, increasing primarily for home health care workers, its growth in the rest of the state was more significant.
• More than one in three jobs statewide were in four occupational groups: office and administrative support, sales and related occupations, healthcare support, and food preparation and related serving occupations. The median wages for these groups were less than the state median of $58,600 in 2023, potentially due to higher shares of employees who work part-time in those occupations.
• Home health and personal care aides was the single most the dominant occupation in New York in 2023, with over 566,000 jobs (6% of all employment) – more than double that of the second ranked occupation, retail salespersons.

Regional findings include:

• Regional recovery in 2023 was varied with no region above 2019 levels. Only New York City, Long Island, and the Hudson Valley had employment above 2019 levels in August 2024. Three other regions – the Capital Region, Central New York, and Western New York – are nearing recovery, while the rest continued to lag.
• While more than 70% of state jobs were located in the three downstate regions (New York City, Long Island, and Hudson Valley) in 2023, the concentration of industries varied across regions. Almost two-thirds of financial activities jobs and just under 75% of information sector employment were in New York City. Upstate regions comprised over half of all manufacturing jobs and three-quarters of natural resources employment.
• In every region, leisure and hospitality, retail trade and health care comprised over one-third of the total employment in 2023. The North Country and the Mohawk Valley, regions with over 43% of employment in these three sectors, were also among the top three regions for wage growth.
• At least one industry in every region continued to shed jobs after 2020; the majority of regions continued to lose jobs in the information and public administration sectors.

Report

Where New Yorkers Work: An Analysis of Industries and Occupations in New York

Governor Hochul Announces Free SUNY and CUNY Applications for New York Students Starting on October 21

For the Second Consecutive Year, SUNY, CUNY and More Than 50 Private Colleges and Universities Will Waive Application Fees During College Application Month

A Complete List of Participating Campuses and Fee Waiver Information Available Here; Students Encouraged To Apply

Builds on Governor Hochul’s Efforts To Expand Access to Higher Education and Make College More Affordable

Last Week, the Governor Announced More Than 40,000 Newly Eligible College Students Have Applied for Financial Aid Following TAP Expansion 

Governor Kathy Hochul today announced that the State University of New York, the City University of New York and over 50 private colleges and universities throughout New York State have again come together to offer free application opportunities for high school seniors during New York State College Application Month.

“Ensuring that every student has the opportunity to pursue higher education is a top priority for New York State,” Governor Hochul said. “College Application Month isn’t only about waiving fees — it’s about breaking down financial barriers and opening doors to future opportunities. We’re empowering students across the state to take the first step toward achieving their educational and career goals while removing the financial obstacles that may deter students from pursuing higher education.”

The State University of New York (SUNY) will waive up to five application fees per student across its 64 colleges and universities from Oct. 21 through Nov. 3. The City University of New York (CUNY) is waiving application fees across all 25 campuses for high school seniors attending New York City public schools from Oct. 21 to Nov. 15 and from Nov. 4 to Nov. 15 for all New York State residents applying as a college freshman. CUNY further guarantees admission to all seven of its community colleges for all NYC Public Schools graduates, while private institutions across the state are offering fee waivers that vary by campus. Visit the New York State Application Month waiver webpage here for more information and a complete list of participating NYS colleges and universities.

Last week, Governor Hochul announced that following the increase in income thresholds secured in the FY25 Enacted Budget, more than 40,000 newly eligible New York State students have already submitted Tuition Assistance Program applications for the 2024-25 academic year. B-roll of Governor Hochul meeting with students at the University at Albany’s Financial Aid Office is available on YouTube here and TV quality video is available here.

To assist students with their academic goals, the NYS Higher Education Services Corporation (HESC) and academic partners will offer over 65 virtual and in-person events. These events aim to support students through their college applications, encourage students to learn more about New York State financial aid, and inform them about their college options. Additional assistance with college applications and information on related events can be found on the Apply to SUNY webpage and CUNY Month webpage.

New York State’s College Application Month (CAM) is part of the national American College Application Campaign, which began as a pilot at a single high school in North Carolina in 2005 and has since expanded to all 50 states and the District of Columbia. Coordinated by HESC in partnership with the NYS Education Department, SUNY, CUNY, the Commission on Independent Colleges and Universities, the Association of Proprietary Colleges, the NYC Department of Education and community organizations. CAM encourages high school seniors — especially those from low-income families, first-generation students, and those who may not otherwise apply — to submit college applications early. To date, the national campaign, sponsored by ACT’s Center for Equity in Learning, has helped nearly 4.7 million students submit over 8.7 million applications.

MAYOR ADAMS ANNOUNCES YANKEES, METS, LIBERTY HOME PLAYOFFS GAMES HAVE ALREADY GENERATED NEARLY $200 MILLION IN ECONOMIC ACTIVITY FOR NEW YORK CITY

 

Each Additional Yankees and Mets Home Playoff Game Expected to Generate Between $20 Million and $25 Million in Additional Economic Activity 

New York City Mayor Eric Adams and New York City Economic Development Corporation (NYCEDC) President and CEO Andrew Kimball today announced that the 2024 Major League Baseball (MLB) and Women’s National Basketball Association (WNBA) postseason in New York City has already generated nearly $200 million in economic activity from the home games of their respective playoff runs. The New York Liberty’s WNBA postseason run could generate a cumulative economic impact up to $18.3 million. The analysis accounts for ticket sales and spending from nearly 24,000 visitors from outside of New York City during the Liberty’s postseason run.

Additionally, with both the New York Yankees and New York Mets now participating in their respective Championship Series, each additional home playoff game is expected to generate between $20 million and $25 million per home game — stimulating local businesses and creating jobs and economic opportunity for New Yorkers across the five boroughs. Specifically, a new analysis from NYCEDC found that the New York Yankees 2024 postseason games generate an economic impact of $25 million per home game. A similar analysis found that New York Mets 2024 postseason games generate an economic impact of $20.1 million per home game.

“Playoff runs aren’t just good for our spirits, but also for our wallets. Championship teams on the field mean championship earnings for small businesses and championship wages for hard-working New Yorkers,” said Mayor Adams. “With the Yankees, Mets, and Liberty all making deep playoff runs, it’s a great time to be a sports fan in the greatest city in the world — and sports fan or not, we’re all rooting for more games and more money in New Yorkers’ pockets. If only I had a hat to cheer on ALL our New York City teams together!”

“Congratulations to the New York Liberty, Mets, and Yankees for their success in the playoffs,” said First Deputy Mayor Maria Torres-Springer. “As all three teams keep winning, so does the city, with each home game generating millions of dollars in economic activity, spending at small businesses citywide, and more visitors traveling to New York City.”

“There’s nothing like the playoffs, and with the Liberty, Mets, and Yankees advancing, New Yorkers are buzzing with excitement, and the city is set to see a huge economic boom,” said NYCEDC President and CEO Kimball. “MLB and WNBA postseason games stimulate our local economy, bringing visitors to New York City, and we would love nothing more than a deep postseason run for both of our MLB teams, and a championship tonight from the Liberty.”

NYCEDC’s analysis accounts for ticket sales, estimated at 33,000 for the Yankees, 27,000 for the Mets, and 3,400 for the Liberty, and spending from outside of New York City for each playoff home game. Additional earnings for seasonal employees at Yankee Stadium and at Citi Field, as well as other factors were included. Seasonal employment estimates were unavailable for the Barclay’s Center. These impacts stimulate growth in the local economy, creating opportunities and jobs for New Yorkers and spending that is reinvested across the five boroughs.

Demolition Permits Filed for 2875-2879 Valentine Avenue in Bedford Park, The Bronx

 

Permits have been filed for the demolition and alteration of three adjacent buildings at 2875, 2877, and 2879 Valentine Avenue in Bedford Park, The Bronx. Dedaj Construction Corp. is listed as the owner behind the applications. Permits are currently in the plan examiner review phase.

All three properties stand three stories and 24 feet tall. The proposed demolition and alteration at 2879 Valentine Avenue will make structural stability changes to the building, which spans 1,317 square feet and contains three residential units. The proposed demolitions at 2875 Valentine Avenue and 2877 Valentine Avenue will clear 1,305 square feet and 1,317 square feet of space, respectively. Each of the latter properties contain two residential units.

Mohammad R. Badaly is listed as the applicant of record for all three projects. An estimated completion date has not been announced.

Raytheon Company to Pay Over $950 Million in Connection With Foreign Bribery, Export Control and Defective Pricing Schemes

Raytheon to Pay Approximately $300 Million to Resolve the FCPA and ITAR Investigations in the Eastern District of New York 

Raytheon Company (Raytheon), a subsidiary of Arlington, Virginia-based defense contractor RTX (formerly known as Raytheon Technologies Corporation), entered into a three-year deferred prosecution agreement (DPA) with the Department of Justice in connection with a criminal information unsealed in the Eastern District of New York charging Raytheon with two counts: conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act (FCPA) for engaging in a scheme to bribe a government official in Qatar and conspiracy to violate the Arms Export Control Act (AECA) by willfully failing to disclose the bribes in export licensing applications with the Department of State. 

Separately, Raytheon will enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of Massachusetts charging Raytheon with two counts of major fraud against the United States. As part of that resolution, Raytheon admitted to engaging in two separate schemes to defraud the Department of Defense (DOD) in connection with the provision of defense articles and services, including PATRIOT missile systems and a radar system.

Both agreements require that Raytheon retain an independent compliance monitor for three years, enhance its internal compliance program, report evidence of additional misconduct to the Justice Department, and cooperate in any ongoing or future criminal investigations. 

Raytheon also reached a separate False Claims Act settlement with the department relating to the defective pricing schemes. The Justice Department’s FCPA and ITAR resolution is coordinated with the Securities and Exchange Commission (SEC).

In addition, the Justice Department’s resolutions ensure that the appropriate federal agencies can proceed with determining whether Raytheon or any other individuals or entities associated with the company should be suspended or debarred as federal contractors. Pursuant to the Federal Acquisition Regulations (FAR), when more than one agency has an interest in an entity’s potential suspension or debarment, the FAR requires that the Interagency Suspension and Debarment Committee (ISDC) identify the lead agency for conducting government-wide suspension or debarment proceedings. In connection with this resolution, the Justice Department has referred Raytheon’s factual admissions to the appropriate officials within the Department of Defense to initiate the process with the ISDC to identify which federal agency will take the lead in such administrative proceedings, which occur independently of the Justice Department’s criminal and civil resolutions.

Breon Peace, United States Attorney for the Eastern District of New York; Kevin Driscoll, Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division; Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; Chad Yarbrough, Assistant Director, Criminal Investigative Division, Federal Bureau of Investigation (FBI) and William S. Walker, Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York,  announced the resolution.

“Over the course of several years, Raytheon employees bribed a high-level Qatari military official to obtain lucrative defense contracts and concealed the bribe payments by falsifying documents to the government, in violation of laws including those designed to protect our national security,” stated United States Attorney Peace.  “We will continue to pursue justice against corruption, and as this agreement establishes, enforce meaningful consequences, reforms and monitorship to ensure this misconduct is not repeated.”

Mr. Peace expressed his appreciation to the Securities and Exchange Commission (SEC) and the U.S. Department of State for their work on the case.

“Raytheon engaged in criminal schemes to defraud the U.S. government in connection with contracts for critical military systems and to win business through bribery in Qatar,” stated Deputy Assistant Attorney General Driscoll. “Such corrupt and fraudulent conduct, especially by a publicly traded U.S. defense contractor, erodes public trust and harms the Department of Defense, businesses that play by the rules, and American taxpayers. Today’s resolutions, with criminal and civil penalties totaling nearly $1 billion, reflect the Criminal Division’s ability to tackle the most significant and complex white-collar cases across multiple subject matters.”

“International corruption in military and defense sales is a violation of our national security laws as well as an anti-bribery offense,” stated Assistant Attorney General Olsen.  “Raytheon willfully failed to disclose bribes made in connection with contracts that required export licenses. This resolution should serve as a stark warning to companies that violate the law when selling sensitive military technology overseas.”

“The Raytheon Company set out to intentionally defraud the U.S. government,” stated FBI Assistant Director Yarbrough.  “This agreement highlights the importance of integrity when it comes to government contracting. The FBI, with its law enforcement partners, will continue to investigate these types of crimes that waste taxpayer dollars and prosecute all those who are intent on cooking up these major fraud schemes.”

“Raytheon Corporation engaged in a systematic and deliberate conspiracy that knowingly and willfully violated U.S. fraud and export laws,” stated HSI New York Special Agent in Charge Walker.  “Raytheon’s bribery of government officials, specifically those involved in the procurement of U.S. military technology, posed a national security threat to both the U.S. and its allies. As this investigation reflects, national security continues to be a top priority for HSI New York. The global threats facing the U.S. have never been greater, and HSI New York is committed to working with our federal and international partners to assure sensitive U.S. technologies are not unlawfully and fraudulently acquired.”

The FCPA Case

According to admissions and court documents filed in the Eastern District of New York, between approximately 2012 and 2016, Raytheon, through certain of its employees and agents, engaged in a scheme to bribe a high-level official at the Qatar Emiri Air Force (QEAF), a branch of Qatar’s Armed Forces (QAF) that was primarily responsible for the conduct of air warfare, to assist Raytheon in obtaining and retaining business from the QEAF and QAF.  Raytheon entered into and made payments on sham contracts for air defense operations-related studies to corruptly obtain the Qatari official’s assistance in securing certain air defense contracts.  Raytheon also entered into a teaming agreement with a Qatari entity to corruptly obtain the Qatari official’s assistance in directly awarding a contract to Raytheon, without a competitive bid, to build a joint operations center that would interface with Qatar’s several military branches. 

Under the terms of the DPA, Raytheon will pay a criminal monetary penalty of over $252.3 million, criminal forfeiture of over $36.6 million and retain an independent compliance monitor for three years.  In addition, as part of the resolution of the SEC’s parallel investigation, Raytheon will pay approximately $49.1 million in disgorgement and prejudgment interest and a civil penalty of $75 million, $22.5 million of which will be credited against the criminal monetary penalty.  The Department has agreed to credit approximately $7.4 million of the disgorgement Raytheon pays to the SEC against the criminal forfeiture.

As part of the DPA, Raytheon and RTX have agreed to continue to cooperate with the U.S. Attorney’s Office for the Eastern District of New York, the Criminal Division’s Fraud Section and the National Security Division’s Counterintelligence and Export Control Section in any ongoing or future criminal investigations relating to this and other conduct.  In addition, Raytheon and RTX have agreed to continue to enhance Raytheon’s compliance program.

The Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense.  Raytheon received credit for its cooperation with the Department’s investigation, which included:

• Providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own independent investigation;
• Facilitating interviews with current and former employees;
• Making detailed factual presentations to the government;
• Proactively disclosing certain evidence of which the government was previously unaware and identifying key documents in materials it produced; and
• Engaging experts to conduct financial analyses. 

Raytheon also engaged in timely remedial measures, including:

• Recalibrating third party review and approval processes to lower company risk tolerance;
• Implementing enhanced controls over sales intermediary payments;
• Hiring empowered subject matter experts to oversee its anti-corruption compliance program and third party management;
• Implementing data analytics to improve third party monitoring; and
• Developing a multipronged communications strategy to enhance ethics and compliance training and communications.

However, in determining the appropriate cooperation credit, the government also took into account the fact that, in the initial phases of the investigation, prior to in or around 2022, Raytheon was at times slow to respond to the government’s requests and failed to provide relevant information in its possession; for example, Raytheon withheld relevant, material information from the government and gave incomplete and misleading presentations regarding the nature and scope of a relevant third-party intermediary relationship.

In light of these considerations, as well as Raytheon’s prior history, which includes three prior civil or regulatory enforcement actions: (i) a 2013 consent agreement with the U.S. State Department concerning civil ITAR and Arms Export Control Act violations, in connection with which Raytheon agreed to hire an independent special compliance officer to oversee the four-year consent decree while at the same time engaging in the conduct described in the DPA; (ii) a civil settlement with the Environmental Protection Agency in 2007 concerning payments to clean up contamination sites; and (iii) a resolution with the SEC in 2006 concerning false and misleading disclosures and improper accounting practices, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the twentieth percentile above the low end of the otherwise applicable Guidelines fine range.

The ITAR Case

According to admissions and court documents filed in the Eastern District of New York, between approximately 2012 and 2016, Raytheon, through certain of its employees and agents, engaged in a scheme to willfully violate the AECA and ITAR Part 130 by failing to disclose to the United States Department of State, Directorate of Defense Trade Controls, fees and commissions paid in connection with two Qatar-related contracts – specifically, the bribes Raytheon paid to the high-level QEAF official through sham subcontracts.

The Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense.  Raytheon received credit for its cooperation with the Department’s investigation, which included:

• Gathering evidence of interest to the government and proactively identifying key documents related to willful ITAR-related misconduct;
• Making factual presentations concerning the ITAR-related misconduct; and
• Facilitating witness interviews and expediting the government’s ability to meet with witnesses. 

Raytheon also received credit for remediation, which included, in addition to the remediation described above in connection with the FCPA case:

• Hiring additional empowered subject matter experts in legal and compliance;
• Developing a multipronged communications strategy to enhance ethics and compliance training and communications; and
• Making enhancements to its ITAR-related compliance program.

Raytheon did not receive full credit for its cooperation because in the initial phase of the investigation, it failed to provide information relevant to the ITAR violations beyond what was requested in the FCPA investigation.

In light of these considerations, the ITAR-related financial penalty of $21,904,850 includes a cooperation and remediation credit of 20 percent off the otherwise applicable penalty.

The Defective Pricing Case

According to admissions and court documents filed in the District of Massachusetts, from 2012 through 2013 and again from 2017 through 2018, Raytheon employees provided false and fraudulent information to the DOD during contract negotiations concerning two contracts with the United States for the benefit of a foreign partner — one to purchase PATRIOT missile systems and the other to operate and maintain a radar system. In both instances, Raytheon employees provided false and fraudulent information to DOD in order to mislead DOD into awarding the two contracts at inflated prices. These schemes to defraud caused the DOD to pay Raytheon over $111 million more than Raytheon should have been paid on the contracts.

Under the terms of the DPA, Raytheon will pay a criminal monetary penalty of $146,787,972, pay $111,203,009in victim compensation, and retain an independent compliance monitor for three years. The Justice Department has agreed to credit the victim compensation amount against restitution Raytheon pays to the Civil Division in its related, parallel False Claims Act proceeding.

Pursuant to the DPA, in addition to the independent compliance monitor, Raytheon and RTX have agreed to continue to implement a compliance and ethics program at Raytheon designed to prevent and detect fraudulent conduct throughout its operations. Raytheon and RTX have also agreed to continue to cooperate with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts in any ongoing or future criminal investigations.

The Justice Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense conduct, which involved two separate schemes to defraud the U.S. government. Raytheon received credit for its affirmative acceptance of responsibility and cooperation with the department’s investigation, which included (i) facilitating interviews with current and former employees; (ii) providing information obtained through its internal investigation, which allowed the department to preserve and obtain evidence as part of its own independent investigation; (iii) making detailed presentations to the department; (iv) proactively identifying key documents in the voluminous materials collected and produced; (v) engaging experts to conduct financial analyses; and (vi) demonstrating its willingness to disclose all relevant facts by analyzing whether the crime-fraud exception applied to certain potentially privileged documents and releasing the documents that it deemed fell within the exception. However, in the initial phases of the investigation prior to March 2022, Raytheon’s cooperation was limited by unreasonably slow document productions.

Raytheon also engaged in timely remedial measures, including (i) terminating certain employees who were responsible for the misconduct; (ii) establishing a broad defective pricing awareness campaign; (iii) developing and implementing policies, procedures, and controls relating to defective pricing compliance; and (iv) engaging additional resources with appropriate expertise to evaluate and test the new policies, procedures, and controls relating to defective pricing compliance.

In light of these considerations, as well as Raytheon’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the tenth percentile above the low end of the otherwise applicable guidelines fine range.

The False Claims Act Settlement

Raytheon also entered into a civil False Claims Act settlement to resolve allegations that it provided untruthful certified cost or pricing data when negotiating prices with the DOD for numerous government contracts and double billed on a weapons maintenance contract.

Under the False Claims Act settlement, which is the second largest government procurement fraud recovery under the Act, Raytheon will pay $428 million for knowingly failing to provide truthful certified cost and pricing data during negotiations on numerous government contracts between 2009 and 2020, in violation of the Truth in Negotiations Act (TINA). Congress enacted TINA in 1962 to help level the playing field in sole source contracts — where there is no price competition — by making sure that government negotiators have access to the cost or pricing data that the offeror used when developing its proposal. As part of the settlement, Raytheon admitted that it failed to disclose cost or pricing data, as required by TINA, regarding its labor and material costs to supply weapon systems to DOD. 

 

Raytheon also admitted that by misrepresenting its costs during contract negotiations it overcharged the United States on these contracts and received profits in excess of the negotiated profit rates. Further, Raytheon admitted that it failed to disclose truthful cost or pricing data on a contract to staff a radar station. Raytheon also admitted that it billed the same costs twice on a DOD contract.

As part of the civil resolution, Raytheon received credit under the Justice Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases for cooperation provided by RTX. That cooperation included conducting and disclosing the results of an internal investigation, disclosing relevant facts and material not known to the government but relevant to its investigation, providing the department with inculpatory evidence, conducting a damages analysis, identifying and separating individuals responsible for or involved in the misconduct, admitting liability and accepting responsibility for the misconduct, and improving its compliance programs.

The civil settlement includes the resolution of a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by Karen Atesoglu, a former Raytheon employee, and is captioned United States ex rel. Atesoglu v. Raytheon Technologies Corporation, 21-CV-10690-PBS (D. Mass.). Ms. Atesoglu will receive $4.2 million as her share of the settlement.

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including the FCPA.