Attorney General James Secures $6.9 Million from Bayer and Monsanto for False Advertising of Roundup® Weedkillers

 

Bayer CropScience and Monsanto Allegedly Falsely Claimed Certain Roundup® Consumer Products Were Safe and Non-Toxic, Violating an Agreement with OAG

New York Attorney General Letitia James today announced a settlement with Bayer CropScience LP (Bayer) and Monsanto Company (Monsanto) for allegedly making false and misleading claims regarding the safety of certain Roundup® consumer weedkillers. Bayer and Monsanto repeatedly claimed in advertising that Roundup® consumer products containing the active ingredient glyphosate were safe and non-toxic without adequate substantiation. These claims violated state laws against false and misleading advertising, and also breached a previous settlement the Office of the Attorney General (OAG) reached with Monsanto in 1996, in which Monsanto committed to stop making unsubstantiated claims regarding the safety of Roundup® products that contained glyphosate.

“Pesticides can cause serious harm to the health of our environment, and pose a deadly threat to wildlife, including pollinators and other species vital to agriculture,” said Attorney General James. “It is essential that pesticide companies — even and especially the most powerful ones — are honest with consumers about the dangers posed by their products so that they can be used responsibly. Once again, Monsanto and the company’s current owner, Bayer, made false and misleading claims about the safety of their products, but we will not allow them to get away with endangering our environment. My office will continue to protect the health of New York’s environment by ensuring our laws are respected and followed.”

Roundup® is among the leading brands of weedkillers in the United States. For many years, glyphosate was the most common primary active ingredient in Roundup® brand products. Scientific studies have determined that some formulations of Roundup® brand pesticides may be toxic to wildlife, particularly pollinator species such as honeybees and butterflies, as well as fish, amphibians, and other aquatic organisms. According to a 2022 report of the Empire State Native Pollinator Survey, at least 40 percent — and as many as 60 percent — of pollinator species native to New York are at risk of disappearing from the state, potentially threatening the future growth of crops and wildflowers statewide.

In 2020, Attorney General James began an investigation into whether Monsanto, and its current owner Bayer, were again engaging in false advertising of their Roundup® products, in violation of Monsanto’s 1996 settlement with OAG. The investigation found that a number of claims made in advertising, including promises that Roundup® products “won’t harm anything but weeds,” and “do not pose a threat to the health of animal wildlife,” were not adequately substantiated. The investigation also revealed that the companies made claims that implied Roundup® products were safer and less toxic than dish detergent and soap, a practice Monsanto had agreed to cease in the 1996 settlement. Following the investigation, Attorney General James concluded that the companies’ claims about these products violated New York laws against persistent business fraud and false and misleading advertising, and breached Monsanto’s obligations under the prior settlement.

The OAG’s investigation and settlement are related to the environmental impacts of Roundup® products; the impact of Roundup® products on human health is currently the subject of ongoing nationwide private-party litigation.

As a result of the settlement announced today, Bayer and Monsanto will pay $6.9 million to OAG, which will be used to prevent, abate, restore, mitigate, or control the impacts of toxic pesticides such as those containing glyphosate on pollinators or aquatic species. The specific programs and projects that will be supported with these funds have yet to be determined, but may include research, monitoring, and education, as well as habitat management, restoration, and enhancement.

The settlement also requires Bayer and Monsanto to immediately remove or discontinue any advertisements that represent Roundup® consumer products containing glyphosate as safe, non-toxic, harmless, or free from risk to pollinators and other wildlife. Bayer and Monsanto must also direct distributors and retailers of these consumer Roundup® weedkillers to cease the dissemination of any marketing materials that contain these allegedly false representations. Per the agreement, Bayer and Monsanto will submit an annual report and certification of compliance with the agreement to OAG, and the companies will be subject to a $100,000 penalty for each failure to uphold the obligations of the settlement.

Construction Company Owners Charged With $5.4 Million Fraud Scheme

 

Rawinder Dhillon and Amninder Singh Allegedly Submitted Fraudulent Surety Bonds to New York State to Obtain Construction Payments on False Pretenses

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint charging RAWINDER DHILLON and AMNINDER SINGH, the owners of a construction company, with participating in a scheme to submit fraudulent bonds to the New York State Governor’s Office of Storm Recovery (“GOSR”) in order to obtain payments on false pretenses in connection with construction projects funded by the United States Department of Housing and Urban Development (“HUD”).  The defendants were arrested this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Robert W. Lehrburger.

FBI Assistant Director in Charge Michael J. Driscoll said: “The defendants allegedly conspired to obtain over five million dollars from the state of New York based on phony construction surety bonds.  Unfortunately, this is another example of a program intended to help communities recover from disaster being targeted for manipulation and fraud.  The FBI is committed to ensuring that individuals who conspire to commit fraud against the government face the consequences for their schemes.”

According to the allegations contained in the Complaint:[1]

GOSR was established in 2013 – following Hurricane Irene, Tropical Storm Lee, and Superstorm Sandy – to centralize recovery and rebuilding efforts in impacted areas of New York State.  GOSR utilizes federal funding to provide aid for housing recovery, small businesses, community reconstruction, and infrastructure.  DHILLON and SINGH owned and operated a construction company based in Staten Island, New York (“the Construction Company”).  The Construction Company was awarded contracts by GOSR in connection with certain construction projects (the “Construction Projects”) funded by HUD. 

For each of the Construction Projects, the Construction Company was required to obtain surety performance bonds (meant to ensure satisfactory completion of a construction company’s contractual obligations) and payment bonds (meant to ensure payment by a construction company to subcontractors and/or vendors supplying labor and/or materials).  In or about April 2021, the Construction Company emailed to GOSR documents purporting to be the required performance bonds and payment bonds for the Construction Projects.  Following the submission of the purported bonds, GOSR paid the Construction Company more than approximately $5.4 million in connection with the Construction Projects.

In or about February 2022, a subcontractor (the “Subcontractor”) that had contracted with the Construction Company to perform roofing work in connection with one of the Construction Projects contacted GOSR to report that the Construction Company had not paid the Subcontractor for its work.  In response, GOSR provided the Subcontractor with a copy of one of the purported bonds so that the Subcontractor could obtain payment from the insurance carrier.  However, when the Subcontractor contacted the insurance broker that allegedly issued the bond, the insurance broker informed the Subcontractor, in substance and in part, that the insurance broker had no record of issuing the bond and that the bond was fraudulent.  Thereafter, the insurance broker informed GOSR, in substance and in part, that each of the purported payment and performance bonds provided by the Construction Company to GOSR were fraudulent.  Accordingly, on or about February 20, 2022, GOSR terminated its contracts with the Construction Company.

DHILLON, 32, of Staten Island, New York, and SINGH, 37, of New Hyde Park, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory two-year consecutive sentence. 

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

Mr. Williams praised the outstanding investigative work of the FBI.

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 herein should be treated as an allegation.

DISTRICT ATTORNEY DARCEL D. CLARK ANNOUNCES TWO INDICTMENTS FOR FRAUD AGAINST ELDERLY VICTIMS; ON WORLD ELDER ABUSE AWARENESS DAY, CLARK WARNS SENIORS TO BE VIGILANT AGAINST SCAMMERS

 

Disbarred Bronx Lawyer Allegedly Stole $700,000 From 5 Clients in Riverdale; L.I. Man Allegedly Cashed $120,000 in Checks, Nearly Depleting Woman’s Account

 Bronx District Attorney Darcel D. Clark today announced that two men have been charged in separate indictments for stealing from elderly people, highlighting economic abuse of seniors who put their trust – and life savings – in the hands of fraudsters.

 One indictment charges a disbarred Bronx attorney for stealing from the living and the dead—in a real estate fraud scheme and from estates that left funds to charities.

 District Attorney Clark said, “The defendant allegedly ingratiated himself with mostly elderly clients in Riverdale, gaining power of attorney or becoming executor of their wills, and took profits from selling their homes or kept money that was left to charities. His alleged actions led to unsurmountable financial harm, as well as stress for people of advanced age. It is elderly abuse.”

 District Attorney Clark said the defendant, Paul Frieary, 69, of Shendaken, NY, who had a law office on Riverdale Avenue, is charged with second-degree Grand Larceny, third-degree Grand Larceny, fourth-degree Grand-Larceny, fourth-degree Criminal Possession of Stolen Property, first-degree Scheme to Defraud, and second-degree Scheme to Defraud. Frieary was arraigned June 1, 2023, before Bronx Supreme Court Justice George Villegas. The defendant was placed on supervised release and is due back in court on August 23, 2023.

 According to the investigation, between July 2014 to January 2021 the defendant took thousands of dollars from victims in retainer fees to represent them in their real estate closing, and allegedly never dispersed money to clients when he received money from buyers. Frieary was disbarred from the practice of law in October of 2020 following the Attorney Grievance Committee’s investigation into predatory practices by him while acting as an attorney on behalf of multiple interested parties to various land sale contracts and probate petitions.

 In one incident, Frieary represented buyers of a home owned by a couple in their 90s. He allegedly gave them some $329,000 but kept more than $277,000. They passed away after trying for years to no avail to get the rest of the money owed to them.

 In another incident, an elderly woman, whose husband predeceased her and who had no family in the U. S., hired Frieary and gave him full power of attorney and made him the executor of her estate. In her will, she left $350,000 to seven charities including the Bowery Mission, Catholic Charities of the Archdiocese of New York, Food Bank for New York City, and People for the Ethical Treatment of Animals. In 2014 she passed away, and the charities listed confirmed that there were never any donations given by the woman’s estate, Paul Frieary, nor any of his companies.

 In the second case, the defendant nearly depleted a 95-year-old woman’s savings by alleged check fraud.

 District Attorney Clark said, “A 95-year old woman who does not speak English entrusted her checkbook to someone. Allegedly, the checks wound up in the hands of the defendant, who cashed over $120,000 worth of checks. The victim bravely testified to the grand jury. It’s a cautionary tale for everyone, particularly seniors, that no one should give their account information to anyone unless they have made sure the person is trustworthy.”

 District Attorney Clark said Rudolf Drauch, 60, of West Babylon, NY, is charged with second-degree Grand Larceny, third-degree Grand Larceny, fourth-degree Grand Larceny, second-degree Criminal Possession of Stolen Property, third-degree Criminal Possession of Stolen Property, fourth-degree Criminal Possession of Stolen Property, first-degree Offering a False Instrument for Filing, fourth-degree Criminal Tax Fraud, and fifth-degree Criminal Tax Fraud. He was arraigned on June 13, 2023 before Bronx Supreme Court Justice George Villegas. He is due back in court on September 28, 2023.

 According to the investigation, between February and August 2022, the victim, a 95-yearold Bronx woman who does not speak English, gave blank checks to someone to pay bills for her. While she was temporarily in a nursing home, the defendant allegedly cashed 72 of them totaling $120,263. The defendant allegedly withdrew almost all the victim’s savings. The victim’s nephew, who grew suspicious over his aunt’s finances, contacted the Bronx DA’s Office in 2022 and a joint investigation with the New York State Department of Taxation and Finance uncovered the check fraud and failure to report the income on tax returns.

 District Attorney Clark thanked the New York State Department of Taxation and Finance, Criminal Investigations Division, for their work in the investigation.

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

NYC PUBLIC ADVOCATE CALLS ON STATE GOVERNMENT TO CONVENE SPECIAL SESSION ON HOUSING BILLS

 

After the 2023 state legislative session failed to produce any meaningful action on housing, New York City Public Advocate Jumaane D. Williams today called for legislators to continue working toward and enacting a deal, rather than leaving New Yorkers without relief until next year.  In a letter to Governor Kathy Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie, the Public Advocate urged the state legislature to return to the Capitol for a special session to pass a package of housing legislation that would provide both immediate and long term relief to tenants across the city and state. 

Specifically, the Public Advocate is calling on the state legislature to pass, and the governor to sign, a package of tenant protection and support bills that have needlessly stalled in Albany, including the Right to Counsel 2.0, create of a Housing Access Voucher Program (HAVP) , and Good Cause Eviction. This comes after the Assembly announced Tuesday that it would reconvene next week to finalize legislative business.

“I ask, on behalf of New Yorkers struggling to find and remain in their homes, that the three of you work together imminently to discuss and finalize an agreement around Right to Counsel, HAVP and Good Cause Eviction protection,” Public Advocate Jumaane D. Williams wrote. “This includes any needed special session, with assurance that the governor will immediately sign these bills into law. With rents spiking to historic highs, and thousands facing eviction, Albany has a moral and governing mandate to not let these issues go unaddressed for months that New Yorkers cannot afford.”

The housing and homeless crisis that has long impacted New York City has only worsened in recent months and years. There are an estimated 92,000 people in the city without a home, rents have made this city the most expensive in the nation, and half of all New York families are unable to afford even the minimum costs of living here. About one in ten children in New York City are without a home, and in some areas, one in five. The reality of this crisis is present, the call to action urgent.  

The full letter from the Public Advocate to state leadership is below.

Dear Governor Hochul, Majority Leader Stewart-Cousins, and Speaker Heastie,

This letter is in regards to the state’s failure to pass meaningful housing legislation. 

In the midst of a housing crisis, the New York State government failed to deliver much needed housing relief to the people of New York. First we watched the Governor’s Housing Package collapse, without any community input. After the NYS Budget passed, it was disappointing to not see the Right to Counsel 2.0, the Housing Access Voucher Program (HAVP), and Good Cause Eviction legislation voted on this session. However, I understood the housing coalition’s support of the end-of-session amended versions, despite these versions gutting the full weight of the bills, as concessions were necessary to secure votes for passage. Even given these concessions, the session ended with no consensus on housing legislation, leaving the people of New York without vital protections and resources in the midst of a historic housing crisis.

While building income-targeted affordable housing is desperately needed, it is also a longer term solution. Preserving units that already exist is paramount to helping right now. Right to Counsel 2.0, HAVP and Good Cause Eviction protections are the most immediate solutions. To be clear, the proposals as presented were watered down and filled with items supporting real estate interests, the very same entities responsible for and contributing to the housing crisis, and were hard to accept. Still failing to pass a single housing bill, when New Yorkers’ need for housing is so dire should not be where we end up.

I ask, on behalf of New Yorkers struggling to find and remain in their homes, that the three of you work together imminently to discuss and finalize an agreement around Right to Counsel, HAVP and Good Cause Eviction protection. This includes any needed special session with assurance that the governor will immediately sign these bills into law. With rents spiking to historic highs, and thousands facing eviction, Albany has a moral and governing mandate to not let these issues go unaddressed for months that New Yorkers cannot afford.

Sincerely, 

Jumaane D. Williams 

Public Advocate for the City of New York

MAYOR ADAMS, NYC AGING, NYPD ANNOUNCE PLACEMENT OF OLDER ADULT LIAISON IN EVERY POLICE PRECINCT CITYWIDE

 

Announcement on World Elder Abuse Awareness Day Emphasizes Steps Being Taken by Adams Administration to Keep Older Adults Safe

 

Older Adult Liaisons Will Coordinate with Police Officers and Community Leaders to Connect Victims to Support Services, Review Crime Reports to Determine Local Needs

New York City Mayor Eric Adams, New York City Department for the Aging (NYC Aging) Commissioner Lorraine Cortés-Vázquez, and New York City Police Department (NYPD) Commissioner Keechant L. Sewell today marked World Elder Abuse Awareness Day by announcing that an older adult liaison has been designated to every police precinct in the city, as well as every police service area covering New York City Housing Authority developments in the five boroughs. The liaisons will be tasked with connecting victims with support services, educating the public on older adult programs available to them, and informing older New Yorkers on steps they can take to keep themselves safe.

 

“Sadly, one in 10 adults over age 60 suffers from abuse or neglect or is financially exploited, and, too often, these crimes can often go unreported. But we’re working to end that,” said Mayor Adams. “On World Elder Abuse Awareness Day, we are announcing our latest initiative to protect older New Yorkers: Designating an older adult liaison in every police precinct and service area citywide. These new liaisons will connect victims to support services and work closely with the elder community to identify and address their needs. Older New Yorkers should know that you are not alone, and you do not have to suffer in silence. Your city is here for you, and we will keep you safe. I want to thank NYC Aging Commissioner Cortés-Vázquez, NYPD Commissioner Sewell, and all our partners for their outstanding work in making this new position possible.”

 

“Establishing older adult liaisons at every police precinct across the five boroughs is yet another step toward making New York City the most age-inclusive city possible,” said Deputy Mayor of Health and Human Services Anne Williams-Isom. “With more than 1.6 million older adults across the city, this new partnership will connect law enforcement with older adult communities to ensure they have the knowledge, support, and connections they need to stay safe and continue thriving.”

 

“Over 6,000 police officers have gone through trainings to make sure they can identify elder abuse when they see it, and this announcement today is just another step that solidifies our shared commitment to supporting older New Yorkers,” said NYC Aging Commissioner Cortés-Vázquez. “These police liaisons will put a face to the resources and programs available to help keep residents safe. At the same time, we will be using data to identify what crimes against older New Yorkers are occurring and adjust our policies to act accordingly so these residents can continue living independently and safely.”

 

“Throughout the five boroughs, the women and men of the New York City Police Department are focused on ensuring that the promise we make to our older residents to maintain their safety and well-being is never broken by incidents of abuse, neglect, or exploitation,” said NYPD Commissioner Sewell. “And today, together with our government and community partners, we are reaffirming our commitment to preventing and ending elder abuse in all of its many forms.”

 

The idea of new older adult liaisons stemmed from discussions that took place within the “Cabinet for Older New Yorkers,” which Mayor Adams created last year. The NYPD and over 20 other city agencies are members of the Cabinet, and the interagency collaborative aims to realize and institutionalize an age-inclusive New York through structural and systematic solutions.

 

The older adult liaisons will:

• Connect older adults to NYC Aging and other city programs and services that they can benefit from;
• Review complaint reports made to the NYPD involving older adults to provide assistance and follow-up;
• Educate older adults on the latest crime prevention tips; and
• Attend precinct community council meetings to help keep the public informed.

 

Since last August, a similar pilot program has been taking place in NYPD Patrol Borough Manhattan North and in the 5^th Police Precinct located in Chinatown, where there have been about 300 referrals a month to NYC Aging’s Elder Justice Program. While NYC Aging’s Elder Justice Program has received over 2,000 referrals throughout the city over the last year, studies still show cases of elder abuse are consistently underreported nationwide.

 

World Elder Abuse Awareness Day began 17 years ago by the United Nations’ World Health Organization to raise awareness about the abuse, neglect, and other crimes that older people across the globe face.

 

“Since it was launched on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, World Elder Abuse Awareness Day has helped people throughout the world to understand elder abuse in all its forms, including but not limited to financial, physical and mental/emotional abuse,” said William Dionne, executive director, Carter Burden Network. “With awareness comes understanding and an ability to help elders who are either being abused or who are at risk for abuse. Because elder abuse is often hidden with abused elders reluctant to come forward due to fear of reprisals from their abuser or fear of getting their abuser in trouble or embarrassment at having been abused, an initiative like World Elder Abuse Awareness Day helps bring the abuse of elders to the forefront of the general public and thereby encourage outreach and events to reach those elders being abused so that they know they are not alone and that they can get help.”

 

“Neighborhood SHOPP marks World Elder Abuse Day with renewed commitment to protecting Older Adults,” said Katherine Martinez, president and CEO, Neighborhood Self Help by Older Persons Project (SHOPP). “SHOPP is dedicated to serving older adults and operating an Elder Justice program. This significant day serves as a reminder to raise awareness about the prevalence of elder abuse and reaffirm our commitment to ensuring the safety and well-being of older adults in our community. As a leading nonprofit organization serving the Bronx for over 40 years, SHOPP strives to prevent and respond to elder abuse, neglect, and exploitation, advocating for the rights and dignity of older adults. With our comprehensive support services, community engagement, and collaborative efforts, we aim to create a safe and inclusive environment for older adults to thrive.”

 

Governor Hochul Announces Enforcement Actions Against Unlicensed Cannabis Businesses in Ithaca and Binghamton

 

New York State Office of Cannabis Management and Department of Taxation and Finance Inspected Unlicensed Shops

Illicit Products Were Seized, Initiating the Process of Shutting Down Unlicensed Cannabis Sales in Storefronts

Actions Are Direct Result of Empowering Legislation Governor Hochul Signed into Law in the FY 2024 Budget

 Governor Kathy Hochul today announced enforcement teams from New York State's Office of Cannabis Management and Department of Taxation and Finance conducted inspections at storefront businesses not licensed to sell cannabis in Ithaca and Binghamton. These actions led to Notices of Violation and Orders to Cease Unlicensed Activity being issued, building on actions taken in New York City last week, and they will continue to be replicated across the state to end public sales of illicit cannabis by any unlicensed businesses. State enforcement actions were made possible as part of the FY 2024 Budget Governor Hochul signed into law last month.

"As the most equitable cannabis industry in the nation gains momentum, we continue to take action against bad actors who seek to skirt around our laws," Governor Hochul said. "Unlicensed dispensaries violate our laws, put public health at risk, and undermine the legal cannabis market, and we will continue to take these critical enforcement measures to protect New Yorkers from illicit, unregulated sales."

On May 3, 2023, Governor Hochul signed legislation enabling for the enhanced, statewide enforcement by OCM on unlicensed cannabis businesses as part of the FY 2024 Budget. The legislation now enables OCM to also assess civil penalties against unlicensed cannabis businesses, with fines of up to $20,000 a day for the most egregious conduct, and starts the process of potential closure of a retail location selling cannabis without a license among other penalties. The new law also makes it a crime to sell cannabis and cannabis products without a license.

As a result of the legislation, the Department of Taxation and Finance can now conduct regulatory inspections of businesses selling cannabis to determine if appropriate taxes have been paid and to levy civil penalties in cases where they have not. The legislation also establishes a new tax fraud crime for businesses that willfully fail to collect or remit required cannabis taxes or knowingly possess for sale any cannabis on which tax was required to be paid but was not.

By taking decisive action against unlicensed cannabis businesses, New York State is making a significant stride toward cracking down on unlawful cannabis operations that jeopardize public safety, consumer well-being, and the integrity of New York State's legal cannabis market.

On Tuesday, OCM and DTF conducted inspections on three businesses in Ithaca. Each of the locations was issued a notice of violation for selling cannabis without a license. The penalty for this, which will ultimately confirmed through an administrative hearing process, is $10,000 per day, plus potential additional penalties. The inspected businesses may also be subject to additional violations and penalties under the Department of Tax and Finance Law.

The following shops were inspected in Ithaca:

1. Black Leaf -- 103 East State Street, Ithaca, NY
2. Zaza Convenience -- 101 East State Street, Ithaca, NY
3. The Rezz -- 312 Fourth St, Ithaca, NY

Yesterday, OCM and DTF conducted inspections in Binghamton. As in Ithaca, both locations were issued a notice of violation for selling cannabis without a license with. The penalty for this, which will ultimately confirmed through an administrative hearing process, is $10,000 per day, plus potential additional penalties. The inspected businesses may also be subject to additional violations and penalties under the Department of Tax and Finance Law.

The following shops were inspected in Binghamton:

1. Green Magic - 144 Henry St
2. Takeoff 2 - 63 Chenango St

State Senator Lea Webb said, "We do not allow bars and restaurants to operate here in New York without proper licensing and the same is true for cannabis shops. My Senate district is home to two of the first adult-use dispensaries to open their doors in Upstate New York, one in the City of Binghamton and the second in the City of Ithaca. These business owners have worked hard to obtain legal licenses to sell cannabis, create new jobs in our community, and support our local economy. I appreciate my colleagues and Governor Hochul's commitment to protecting our state's investment in our cannabis industry, which not only helps grow our local economy, but also supports New York's agricultural producers and folks who have been disproportionately harmed by the criminalization of cannabis."

Additional information on fines:

If an unlicensed location is found to continue selling cannabis products after OCM issues a Notice of Violation/Order to Cease, an additional per-day penalty of up to $20,000 may be assessed by an ALJ. Further, should the unlicensed business remove the OCM Notice of Violation or Warning affixed to the business storefront, the business is subject to a fine of up to $5,000.

Additional information regarding previous and ongoing operations in New York City:

OCM and DTF began their first joint inspections authorized by the new enforcement law the week of June 5, 2023, in New York City, where inspections will remain active and ongoing. The two agencies inspected 11 shops in Manhattan last week, have inspected several more this week, and will continue to do so.

All of the shops inspected in New York City last week were selling cannabis without a license and, upon inspection, were issued Notices of Violation and Orders to Cease Unlicensed Activity.

The following shops were inspected last week:

1. Varieties on Broadway - 736 Broadway
2. Roll 2 Nation - 738 Broadway
3. Baby Jeeter - 793 Broadway
4. Maze - 16 St. Marks Place
5. LaGuardia Smoke - 510 LaGuardia Place
6. Nomad - 59 West 30th Street
7. Play lane - 117B W 23rd Street
8. Cannabis Culture - 403 8th Avenue
9. Smoke Factory - 287 7th Avenue
10. Go Green Dispensary - 603 6th Avenue
11. Daydream - 1181 Broadway

EDITOR'S NOTE:

How about the dozens of these unlicensed Cannabis stores in the Bronx, Governor Hochul, or is it only where legal Cannabis stores are operating that such enforcement will happen.

THE CITY OF NEW YORK CONFLICTS OF INTEREST BOARD - In the Matter of COIB Case No. 2019-503 BILL DE BLASIO OATH Index No. 587/23 Use of City Resources for Personal Use

 

FINAL FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER

Upon consideration of all the evidence presented in this matter, and of the full record, and all papers submitted to, and rulings of, the Office of Administrative Trials and Hearings (“OATH”), including the annexed Report and Recommendation (the “Report”) of OATH Administrative Law Judge (“ALJ”) Kevin F. Casey dated May 4, 2023, in the above-captioned matter, the Board hereby adopts in full the findings of fact and conclusions of law contained in the Report, which finds that Respondent violated Charter Section 2604(b)(2), pursuant to Board Rules Section 1-13(b). The Report recommends the Board impose a fine of $155,000 pursuant to Charter Section 2606(b) and, in addition, order payment to the City of $319,794.20 pursuant to Charter Section 2606(b1), which recommendation the Board adopts. 

Both parties were reminded of their right, pursuant to Board Rules Section 2- 03(h), to submit a post-hearing comment on the Report; neither party submitted such a comment within the time period provided for in the rule. 

Without limiting the foregoing, and in summary of its findings and conclusions, the Board notes the following: 

Between May 2019 and September 2019, while serving as Mayor, Respondent was a candidate for President of the United States. During this time, Respondent had the City pay the travel expenses for an NYPD security detail to accompany Respondent or his spouse on 31 out-of-state trips in connection with his presidential campaign. This NYPD security detail incurred $319,794.20 in travel costs, excluding NYPD salary and overtime, during these 31 trips. 

The City’s conflicts of interest law, codified in Chapter 68 of the City Charter, exists to “preserve the trust placed in the public servants of the city, to promote public confidence in government, to protect the integrity of government decision-making and to enhance government efficiency.” Charter Section 2600. Charter Section 2604(b)(2), as implemented in Board Rules Section 1-13(b), forwards this critical purpose by prohibiting public servants from using City resources for any non-City purpose. When a public servant uses City resources for private purposes, it erodes the public’s trust and makes City government less efficient. For this reason, the Board has routinely enforced this prohibition, particularly where a public servant uses City resources for the non-City purpose of advancing a campaign for elective office or other political activity.(1)

Respondent’s conduct plainly violates this prohibition. Although there is a City purpose in the City paying for an NYPD security detail for the City’s Mayor, including the security detail’s salary and overtime, there is no City purpose in paying for the extra expenses incurred by that NYPD security detail to travel at a distance from the City to accompany the Mayor or his family on trips for his campaign for President of the United States. The Board advised Respondent to this effect prior to his campaign; Respondent disregarded the Board’s advice.

Having found the above-stated violations of the City Charter, and for the reasons set forth in the Report, the Board adopts the Report’s recommended fine of $5,000 for each of Respondent’s 31 violations of Chapter 68, for a total fine of $155,000 pursuant to Charter Section 2606(b), and payment to the City of $319,794.20 pursuant to Charter Section 2606(b-1), the value of the gain or benefit obtained by the Respondent as a result of the violation. 

Respondent claims that the Board cannot impose a penalty upon Respondent because of the requirement, contained in Charter Section 2606(b), that the Board consult “with the head of the agency involved, or in the case of an agency head, with the mayor” before imposing a fine for violations of Charter Section 2604. Charter Section 2603(h)(3) contains a similar provision. As discussed in the Report, and as the Board has held previously, because Respondent was an executive branch elected official, this requirement does not apply here. Report at 19-20. See COIB v. Holtzman, COIB Case No. 93-121 (1996), OATH Index No. 581/94 at 41 n. 3, aff’d Holtzman v. Oliensis, 91 

(1) See, e.g., COIB v. Oberman, COIB Case No. 2013-609, OATH Index No. 1657/14 (2014), affirmed 148 A.D.3d 598 (1st Dept., 2017) (imposing $7,500 fine against former Executive Agency Counsel at the New York City Taxi and Limousine Commission who used his City phone during business hours to work on his campaign for the New York City Council); COIB v. Hynes, COIB Case No. 2013-771 (2018) (imposing $40,000 fine against District Attorney who used City computers, email, and personnel for his re-election campaign); COIB v. Mosley, COIB Case No. 2013-004 (2013) (imposing $2,500 fine against an administrative manager at the New York City Office of the Comptroller who used her City computer and email account to perform campaign work for a candidate for the New York State Assembly). 

N.Y.2d 488 (1998); COIB v. Markowitz, COIB Case No. 2009-181, OATH Index No. 1400/11 at 4.

WHEREFORE, IT IS HEREBY ORDERED that Respondent be assessed a fine of $155,000 pursuant to Charter Section 2606(b) and payment to the City of $319,794.20 pursuant to Charter Section 2606(b-1), a total of $474,794.20, to be paid to the Conflicts of Interest Board within 30 days of service of this Order

Respondent has the right to appeal this Order to the Supreme Court of the State of New York by filing a petition pursuant to Article 78 of the Civil Practice Law and Rules. 

The Conflicts of Interest Board

By: Milton L. Williams Jr., Chair

Fernando A. Bohorquez Jr., Wayne G. Hawley, Ifeoma Ike, Georgia M. Pestana did not participate in the consideration or decision of this matter.

Dated: June 15, 2023. 

CITY OF NEW YORK DEEMS MEDICARE ADVANTAGE CONTRACT REGISTERED

 

OLR Has Informed City Comptroller He Had No Statutory Basis for Declining to Register Medicare Advantage Contract Last Week

The New York City Office of Labor Relations, under the Adams administration, today announced that it has deemed the Medicare Advantage contract registered, allowing implementation of the plan to move forward effective September 1^st of this year. This step was taken after the two agencies informed the New York City Comptroller’s Office that they did not have any statutory basis for declining to register the contract, as required under the City Charter, and because failing to register the contract only increases confusion and misinformation among retirees regarding Medicare Advantage.

 

“As we’ve said repeatedly, this Medicare Advantage plan improves retirees’ current plans, including offering a lower deductible, a cap on out-of-pocket expenses, and new benefits, like transportation, fitness programs, and wellness incentives,” said New York City Mayor Eric Adams. “We are clearly within our authority under the charter to deem this contract registered, and we look forward to working with Aetna to ensure a smooth transition to the plan for our city’s eligible retirees and their dependents come September 1^st.”

 

The city’s Aetna Medicare Advantage plan will provide a lower deductible for retirees than their current Senior Care plan. The plan also places a cap on out-of-pocket expenses and offers new benefits to retirees, including transportation to certain doctors’ appointments, fitness programs, and wellness incentives. Additionally, the plan significantly limits the number of procedures requiring prior authorization.

 

The city is working with Aetna to ease the transition to the new plan and answer any questions from eligible retirees. Aetna has built a custom website specifically for City of New York retirees. The website has resources for retirees to look up their doctor, find out detailed information about their plan, and register for online and in-person information sessions. Retirees can also contact Aetna’s dedicated call center at 855-648-0389 (TTY: 711), Monday to Friday, from 8:00 AM to 9:00 PM. Additionally, Aetna has held a series of in-person town hall meetings in the New York metro area and other states with high Medicare-eligible retiree populations to answer retirees’ questions and assist them with the transition.