A.G. Schneiderman, Gov. Cuomo, & Mayor De Blasio Announce Settlement With Major NYC Landlord To End Tenant Harassment And Hazardous Living Conditions

Tenant Harassment Prevention Task Force Reaches Settlement With ICON Realty Management To Protect Tenants And Preserve Affordable Housing, Following Harassment And Hazardous Living Complaints From East Village, Lower East Side, And Brooklyn Tenants

ICON To Also Pay $500,000 In Penalties, Fees, And Costs

  Attorney General Eric T. Schneiderman, Governor Andrew M. Cuomo, and Mayor Bill de Blasio announced a first of its kind settlement between the Tenant Harassment Prevention Task Force (Task Force) and ICON Realty Management (ICON). This settlement provides tenants broad relief, requiring the landlord to end harassment and hazardous living conditions for the hundreds of tenants in buildings owned and managed by ICON.

Tenants in several ICON-owned rent-regulated buildings in the East Village, the Lower East Side, and Brooklyn were forced to live in adverse conditions, enduring excessive dust and debris from construction in the building common areas and apartments, inconsistent and irregular heat and hot water, and lack of cooking gas and elevator service for extended periods. The Task Force investigation found that, on multiple occasions, ICON failed to obtain Department of Buildings (DOB) work permits, performed construction outside the scope of permits issued, and failed to appropriately clean or maintain the construction work areas. The Task Force investigation also found that ICON ignored tenants’ requests for repairs, failed to timely correct housing and building code violations, and subjected tenants to long-lasting interruptions of heat, hot water, and cooking gas services.

The Assurance of Discontinuance (AOD), executed today by the Attorney General’s office, requires ICON to adopt policies and procedures to prevent future violations and safety risks; corrects all outstanding housing, maintenance, and building code violations; establishes safe construction practices; provides rent abatements to tenants during disruptions of essential services; appoints a tenant liaison to immediately address tenant concerns; and establishes an independent monitor to ensure ICON’s compliance with the agreement. The settlement also requires ICON to pay $300,000 to the State of New York (on behalf of the Task Force) and over $200,000 in penalties, fees, and costs to New York City’s Housing Preservation & Development and Department of Buildings.

“Unscrupulous landlords should be on notice: we’ll use every legal tool at our disposal to protect New York’s tenants,” said Attorney General Schneiderman. “Too often, bad landlords see rent-regulated apartments as a goldmine – looking to make a quick buck by using construction to harass tenants out of their homes. No New Yorker should have to fear for their health or their safety in their own home. This settlement marks another win for New York’s tenants as our Task Force continues to protect their rights and hold landlords accountable.”

“This settlement agreement makes it clear that we have zero tolerance for a landlord’s illegal and harmful construction that exposes tenants to harassing and hazardous living conditions.  I am proud of the TPU and all the work we’ve accomplished with the Task Force to protect rent-regulated tenants from predatory and abusive landlords. New Yorkers have the right to safe decent homes that do not jeopardize their health and safety,” said Governor Andrew M. Cuomo.

"Property owners in this City have a clear legal responsibility to their tenants and those duties were repeatedly violated by this company. We will continue to work hand in glove with our law enforcement partners to protect New York tenants and punish deadbeat landlords,” said Mayor Bill de Blasio.

The Tenant Harassment Prevention Task Force was created in 2015 in response to growing complaints that landlords were using construction as a mean to harass and endanger the health and safety of tenants. It includes the Governor’s Tenant Protection Unit, the New York State Attorney General (NYAG), and New York City’s Department of Housing Preservation and Development (HPD) and Department of Buildings (DOB). The Task Force combines multi-agency resources to address actions that jeopardize affordable housing and endanger tenants.  It executes unannounced top-to-bottom inspections of buildings in New York City, interviews tenants, and shares agency data to build investigations and provide tenants with comprehensive relief. The work of the Task Force has led to criminal prosecutions, such as the case against Daniel Melamed, and/or civil litigation or settlement, such as today’s settlement with ICON.

Maria Torres-Springer, Commissioner of New York City Department of Housing Preservation and Development, said, “Landlords like ICON are exactly why Mayor de Blasio recently enacted eighteen new pieces of legislation strengthening New York’s protections against tenant harassment and increasing penalties for owners who continue to engage in it. One of these new bills, Intro. 1549, specifically addresses this type of behavior and ensures tenants have the right to sue landlords for harassment for repeated disruption of essential services. Landlords know that engage in construction harassment will face consequences.”

New York City Department of Buildings Commissioner Rick D. Chandler, PE, said, “We are proud of our work on the Tenant Harassment Prevention Task Force and my agency will continue to take strong action to ensure landlords who violate the laws and harass tenants will be held accountable. No landlord is allowed to use unsafe construction practices to harass tenants.”

“This agreement is a big win for tenants” said Yonatan Tadele of the Cooper Square Committee. “Tenants have suffered for years under ICON ownership and management. They've spoken out and tenaciously organized against ICON’s tactics. A coalition of Icon tenants from around the City, Icon Community United (ICU), brought their concerns to the Task Force. We are very glad to see such a strong settlement come forward.”

A.G. Schneiderman Indictments Of 13 Current And Former City Fire And Police Department Employees In Half Million Dollar Insurance Fraud Scams

  Attorney General Eric T. Schneiderman, New York City Department of Investigation Commissioner Mark G. Peters and New York State Department of Financial Services Superintendent Maria T. Vullo today announced the indictments of 13 public employees in Queens and Brooklyn, including New York City Police Department Traffic Agents and FDNY EMT’s, Lieutenants, and Paramedics for allegedly committing insurance fraud against the American Family Life Assurance Company (“AFLAC”). It is alleged that these city employees signed up for disability insurance through AFLAC, and manipulated the system by forging physician’s or supervisor’s signatures to file false insurance claims. This group of defendants allegedly collectively stole over half a million dollars. Each defendant stands accused of one count of grand larceny and one count of insurance fraud for thefts that ranged from over $3,000 to over $100,000 per defendant.

“Public employees are entrusted to adhere to the highest code of conduct. Yet these defendants undermined the public trust in government and the integrity of our insurance system by perpetrating this alleged scheme,” said Attorney General Schneiderman. “Cracking down on public corruption is a top priority for my office, and we will continue our relentless work with our partners in law enforcement to root out fraud and waste wherever we find it.”  

DOI Commissioner Mark G. Peters said, “Today’s arrests result from a lengthy DOI investigation into dozens of City workers, including fire and police department employees. We depend on honesty and integrity from all our public servants and these workers failed us. Our independent investigation will continue to root out this corrupt behavior with more arrests expected to follow.”

Financial Services Superintendent Maria T. Vullo said, “The individuals accused of these crimes had sworn to serve and protect the public, but instead they betrayed the public to serve their own selfish greed. The Department of Financial Services appreciates the opportunity to have worked on this case and commends Attorney General Schneiderman and Commissioner Peters for their efforts in bringing these defendants to justice.” The following defendants were arrested this morning on charges of Grand Larceny in the Second Degree and Insurance Fraud in the Second Degree, both class C felonies. Grand Larceny in the Second Degree is charged when the value of the stolen property exceeds $50,000. Upon conviction, a class C felony is punishable by up to fifteen years in prison:

• MARC MASTROS, 37, of Queens, N.Y., a former FDNY EMT, began working for the agency in September 1999 and resigned from the FDNY in March 2014. He is charged with defrauding AFLAC of approximately $118,630 and was arraigned in Queens County Supreme Court.

• DEVON GRAHAM, 46, of Queens, N.Y., has been employed as an FDNY EMT since May 2005. He is charged with defrauding AFLAC of approximately $71,310 and was arraigned in Queens County Supreme Court.

• KENNETH LAMBERT, 35, of Hasbrook Heights, N.J., has been employed as an FDNY EMT since February 2004. He is charged with defrauding AFLAC of approximately $91,056 and was arraigned in Queens County Supreme Court.

The following defendants were arrested this morning on charges of Grand Larceny in the Third Degree and Insurance Fraud in the Third Degree, both class D felonies. Grand Larceny in the Third Degree is charged when the value of the stolen property exceeds $3,000. Upon conviction, a class D felony is punishable by up to seven years in prison:

• JUAN MASTROS, 28, of Queens, N.Y., has been employed as an FDNY Paramedic since May 2009 and resigned December 9, 2016. He is charged with defrauding AFLAC of approximately $34,176 and was arraigned in Queens County Supreme Court.

• SUSAN JAMES, 58, of Queens, N.Y., a former FDNY EMS Lieutenant, began working for the agency in March 1996 and retired from the FDNY in October 2013. She is charged with defrauding AFLAC of approximately $9,950 and was arraigned in Queens County Supreme Court.

• CALEB LAUES, 41, of Queens, N.Y., has been employed as an FDNY Paramedic since February 2004. He is charged with defrauding AFLAC of approximately $41,590 and was arraigned in Queens County Supreme Court.

• JOSE SOLIS, 34, of Valley Stream, N.Y., has been employed as an FDNY Paramedic since April 2008. He is charged with defrauding AFLAC of approximately $27,229 and was arraigned in Queens County Supreme Court.

• MOURAD TOUATI, 48, of Queens, N.Y., a former FDNY EMT and current Department of Correction (“DOC”) Officer, began working for FDNY in January 2008 and left in 2014. He joined DOC in May 2014. He is charged with defrauding AFLAC of approximately $31,146 and was arraigned in Queens County Supreme Court.

• RANDOLPH LOWE, 57, of Brooklyn, N.Y., has been employed as an NYPD Traffic Enforcement Agent since March 2008. He is charged with defrauding AFLAC of approximately $4,753 and was arraigned in Kings County Supreme Court.

• ANTHONY MIRANDA, 58, of Brooklyn, N.Y., has been employed as an FDNY EMS Lieutenant since March 1996. He is charged with defrauding AFLAC of approximately $22,550 and was arraigned in Kings County Supreme Court.

• MELISSA OVALLE, 35, of Brooklyn, N.Y., has been employed as FDNY EMS Lieutenant since January 2005. She is charged with defrauding AFLAC approximately $20,670 and was arraigned in Kings County Supreme Court.

• YOLANDA POWELL, 47, of Brooklyn, N.Y., a former NYPD Traffic Enforcement Agent, began working for NYPD in October 2003 and resigned from the NYPD in December 2015.  She is charged with defrauding AFLAC of approximately $9,505 and was arraigned in Kings County Supreme Court.

• VALERIY YEDVABSKIY, 58, of Brooklyn, N.Y., has been employed as an NYPD Traffic Enforcement Agency since May 2009. She is charged with defrauding AFLAC of approximately $27,010 and was arraigned in Kings County Supreme Court.

The Attorney General would like to thank the New York State Department of Financial services for the referral in this matter. The Attorney General would also like to thank the New York City Department of Investigation for partnering with the OAG on this investigation.

With offices around the state, and a jurisdiction that is not limited by county, the OAG is uniquely positioned to simultaneously prosecute defendants in multiple venues in cases like this one.

The Attorney General’s investigation into this matter remains ongoing.

Prosecuting the case are Assistant Attorney General Kevin B. Frankel and Special Counsel Brian P. Weinberg of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz. The investigation was handled by Investigator Angel Laporte of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator John McManus. The Investigations bureau is led by Chief Dominick Zarrella. Forensic Auditor Kristina Kojamanian assisted in the investigation under the supervision of Forensic Audit Section Deputy Chief Auditor Sandy Bizzarro.  The Forensic Audit Section is led by Chief Auditor Edward J. Keegan, Jr. Legal Support Analyst Katharine Litka of the Public Integrity Bureau also assisted in the investigation. 

Handling the case for NYC DOI is Assistant Inspector General Sara Levinson, Data Analyst Nicholas Devine, all under the supervision of Inspector General Frank J. Carine, Assistant Commissioner Michael Healy, Deputy Commissioner/Chief of Investigations Michael Carroll and First Deputy Commissioner Lesley Brovner. The investigation also received assistance from DOI’s Office of the Inspector General for NYPD. Cindy Licata, Senior Criminal Investigator, handled the case for the Department of Financial Services.

A.G. Schneiderman, New York State Police, Massachusetts DEA Task Force Announce Takedown Of Nationwide Drug Ring In “Operation Dirty Dope”

25 People Indicted In Heroin Smuggling Ring That Stretched From Arizona Across Eastern Seaboard; Eight Facing Major Trafficking Charges

More Than 33 Kilos Of Heroin Seized; Total Street Value More Than $13 Million; Biggest Seizure In History Of State’s Organized Crime Task Force

Schneiderman: We Will Use Every Tool At Our Disposal To Curb This Crisis

   Attorney General Eric T. Schneiderman, New York State Police (NYSP), and the Massachusetts DEA Task Force today announced the indictment of more than two dozen people for their roles in an alleged national heroin smuggling ring.

The investigation, dubbed “Operation Dirty Dope,” seized more than 33 kilos of heroin and 2 kilos of Fentanyl, with a total street value of more than $13 million.

The operation -- which began with the New York State Police Troop L Narcotics Enforcement Unit in April 2015 and netted alleged dealers and traffickers in New York, Massachusetts, Pennsylvania, Arizona, and New Jersey -- is one of the largest heroin seizures ever in New York and is the single largest single seizure in the 46-year history of the state’s Organized Crime Task Force.  The bust also seized 300 grams of cocaine, two semi-automatic handguns (including one inscribed with a drug cartel’s insignia) and eight vehicles (four of which contained sophisticated concealed compartments, or “traps,” designed for the purpose of smuggling narcotics).

“Operation Dirty Dope is another step in our multi-faceted effort to curb the heroin crisis that is destroying our communities,” Attorney General Schneiderman said. “Our message to dealers and traffickers is simple: we will not tolerate anyone smuggling death into our state. I want to thank all of our law enforcement partners across the country, especially the New York State Police and the Massachusetts DEA Task Force, who helped bring these defendants to justice.”

 “The valuable partnerships developed through the Organized Crime Task Force were the key in bringing down this illegal drug trafficking organization,” said New York State Police Superintendent George P. Beach II. “I want to thank State Police Troop L, the Attorney General’s Office, and all our partners for the hard work that has resulted in 25 dangerous criminals behind bars, and a significant amount of heroin and other drugs of our streets.”

“Opioid abuse is at epidemic levels in Massachusetts and across the North East,” said DEA Special Agent in Charge Michael J. Ferguson. “Heroin is causing deaths across the Commonwealth in record numbers and DEA is committed to aggressively pursuing Drug Trafficking Organizations who are coming from out of state to distribute this poison across Massachusetts in order to profit and destroy people's lives and wreak havoc in our communities. This investigation would not have been a success without the continued commitment of our local, state and federal law enforcement partners.”

The indictments, unsealed in Bronx County Court today, detailed a sophisticated distribution ring that allegedly moved most of the drugs from Mexico into Tucson, Arizona. From Arizona, the drugs were allegedly moved in hidden compartments in cars from Arizona to the Bronx, Washington Heights, and Pennsylvania. From there, traffickers moved the drugs to sell in Suffolk County and the central Massachusetts town of Leominster.

The investigation utilized confidential informants, wiretaps, and physical and video surveillance.

In the wiretaps, the defendants can allegedly be heard discussing plans to mix other chemicals -- including chicken anesthetic, Novocain, acetone (nail polish remover), roach killer (boric acid), fentanyl, and more – in with the heroin to add to the bulk and value.

During bail arguments, it was also alleged that traffickers used people addicted to heroin as human guinea pigs to test the quality of the cut heroin, flagrantly disregarding whether the laced heroin would kill them or not.

Those charged as major traffickers include:

• Daniel Abascal Pena
• Argenis Grullon, a/k/a “Alpha” or “Hanley”
• Reymon Rivera Ortiz, a/k/a “Dioco”
• Francisco Martinez Reyes, a/k/a “Viejo”
• Edwin Nunez Sierra, a/k/a La Papa
• Carlos Almonte, a/k/a Luis Rivera
• Carlos Hierro-Mata
• Luis Aude-Mora

Others indicted include:

• Manuel Castillano a/k/a “Cuñado”
• Manuel Amparo, a/k/a “Cacu”
• Tomas Salinas
• Hector Diaz, a/k/a “Shorty”
• Gisette Hernandez
• Jandhel Restituyo Vasquez
• Yeimy Matias
• Ryan Martinez
• Fernando Suero
• Oscarhyl Martinez Aude
• Manuel Torres, a/k/a “Raul”
• Amauris Sanchez
• Domingo Pena
• Juan Miguel Marte Javier
• Carlos Alberto Borges Perez
• Jose R. Rodriquez a/k/a “Rafa”
• Luis Martinez, a/k/a “Majimbe”

Those charged as major traffickers could face life in prison if convicted. All others could face 8 1/3 to 25 years if convicted.

Several additional agencies assisted in the investigation, including the Tucson Arizona United States Marshal Service, Fitchburg Police Department, Army Air National Guard, South Florida Money Laundering Strike Force, North Miami Police Department, New Jersey Attorney General’s Office, Bronx County District Attorney Darcel Clark, the New York Sheriff's Office of Criminal Investigation and the New York City Police Department. 

The investigation was conducted by OCTF Investigators Kerry Buttner and Naomi Jimenez together with The New York State Police Troop L Narcotics Enforcement Unit, and the New England Field Division Worcester HIDTA. OCTF investigators are supervised by Deputy Chief Christopher Vasta. The Attorney General’s Investigations Bureau is led by Chief Investigator Dominick Zarrella.

The case is being prosecuted by OCTF Assistant Deputy Attorney General James Cudden, together with OCTF Analyst Nicole Accurso. Deputy Attorney General Peri Alyse Kadanoff runs the Organized Crime Task Force and Kelly Donovan is the Executive Deputy Attorney General for Criminal Division.

The charges against the defendants are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.