STATEMENT FROM BOROUGH PRESIDENT GIBSON ON MAYOR ADAMS’ FY`23 EXECUTIVE BUDGET

 

“In his first State of the City announcement, Mayor Adams outlined his Executive Budget with a renewed focus on public safety, economic development, youth empowerment, and other issues important to everyday New Yorkers. As we continue to work together towards creating an equitable recovery from COVID-19, it is up to us to work with our partners on the local, state and federal level to develop plans that will move our borough forward, and invest in our city`s future. It is important that the Bronx is included in any conversation around economic recovery and investment, and that is why, as Borough President, I was most pleased to hear about:

Environmental Equity: Mayor Adams’ FY`23 Executive Budget provides $488 million in capital funding for park improvement projects, including planting 20,000 trees annually on city streets in the years to come. I joined with my fellow Borough Presidents in pushing for the budget of the Parks Department to be 1% of the city`s budget and we are one step closer to achieving that goal with this announcement. Increasing the tree coverage in The Bronx and across the city will have numerous environmental effects, including: reducing heat, combating air pollution, and mitigating climate effects that cause floods and other natural disasters.

Hunts Point Produce Market: Mayor Adams is promising an investment of $140 million in capital funds beginning in FY`23 for the Hunts Point Produce Market, that will help revitalize the area and begin to undo the years of disinvestment that has negatively impacted the neighborhood. The Hunts Point Produce Market is a vital economic engine in our borough and deserves to have the resources and support to be successful.

Subway Safety: These past few weeks, we have seen increased crime and violence on our trains and in our subway stations. That is why I commend Mayor Adams for including $55 million in his budget to expand the Behavioral Health Emergency Assistance Response Division (B-HEARD) initiative that will deploy mental health professionals to areas with increased need, including the South Bronx.

Summer Rising: Investment in our communities starts with investing in our youth, and Mayor Adams is doing just that with the Summer Rising initiative. This program, which will provide 110,000 students with opportunities this summer, on top of the expansion of The Summer Youth Employment Program, demonstrates a real commitment from Mayor Adams and his administration to ensuring our youth have access to resources and opportunities that support their mental, emotional and developmental learning. Many of our youth were forced into social isolation as a result of the pandemic, and we need to ensure they have access to Summer Rising, SYEP, Saturday Night Lights, and our Beacon and Cornerstone programs to heal from that trauma and safely build relationships with their peers.

Support for Unsheltered New Yorkers: Safe haven sites, stabilization beds, and drop-in centers are essential for providing critical support to unsheltered New Yorkers by ensuring they have access to wrap-around services that address their mental, emotional and physical needs. The Mayor is investing $117 million in his executive budget into 1,400 additional safe haven and stabilization beds, three additional drop-in centers with support services, and increased street outreach. I applaud Mayor Adams for this decision and I believe it could not come at a more crucial time for our city.

We have a lot of work ahead of us in the coming weeks, but I remain committed to working with Mayor Adams and his administration to advocate for the needs of our borough.”

Defendant Convicted of Defrauding American Express of More Than $4.7 Million

 

 A federal jury convicted Jasminder Singh of bank fraud and money laundering based on defrauding American Express of more than $4.7 million in charges for iPhone purchases and spending the fraud proceeds on a $1.3 million home and other luxury items.  Singh was convicted of bank fraud and unlawful monetary transactions. The verdict followed a one-week trial before United States District Judge Carol Bagley Amon.

Breon Peace, United States Attorney for the Eastern District of New York, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.

“The jury determined that Singh was a fraudster who used American Express cards to purchase thousands of iPhones, racking up millions of dollars in charges and then spun a web of lies to avoid paying the bill and hide his ill-gotten assets,” stated United States Attorney Peace.  “After stiffing American Express, the defendant was living large, until today, when the bill for his crimes came due with today’s verdict.”

As proven at trial, Singh used four business entities that he created and controlled and 10 American Express credit cards in those entities’ names to purchase thousands of Apple iPhones that he then sold overseas for millions of dollars. Between November 2017 and December 2019, the defendant misrepresented to American Express his inability to repay more than $4.7 million in charges incurred from his purchase of iPhones in order to secure additional credit, and used a series of financial transactions to conceal the money he obtained from selling the purchased iPhones. The defendant used the proceeds from his fraudulent scheme to pay for personal expenses and purchase luxury items, including a $1.3 million home in cash in Fremont, California. The defendant made most of the purchases at Apple stores in Oregon and Washington.

The evidence at trial included financial and phone records, audio recordings, testimony from the defendant’s co-conspirator Mandeep Singh, and an FBI forensic accountant. Mandeep Singh pleaded guilty to money laundering conspiracy in March 2022 and is awaiting sentencing.

Owner of Pharmacies in Brooklyn and Queens Pleads Guilty in Health Care Fraud And Kickback Scheme

 

 Robert John Sabet, the owner of Brooklyn Chemists in Gravesend, Brooklyn, and Lucky Care Pharmacy in Flushing, Queens, pleaded guilty before United States Magistrate Judge Vera M. Scanlon to conspiracy to commit health care fraud and unlawfully spending the proceeds of his $6.8 million fraud.  When sentenced, Sabet faces up to 10 years in prison.

Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Breon Peace, United States Attorney for the Eastern District of New York; Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Regional Office (HHS-OIG); Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); and Frank T. Walsh, Jr., Acting Medicaid Inspector General, New York State Office of the Medicaid Inspector General (OMIG), announced the guilty plea.

According to court documents, Sabet conspired to bill Medicare and Medicaid for expensive prescription drugs that were not eligible for reimbursement because they were not needed or not dispensed, and because they were dispensed in connection with kickbacks. As part of the conspiracy, Sabet and others paid kickbacks and bribes to customers to convince them to fill prescriptions at his pharmacies, and paid customers cash in exchange for the ability to bill Medicare and Medicaid for over-the-counter health care-related products on their behalf. Sabet used proceeds of the scheme to purchase luxury goods and a 2020 Porsche Taycan worth over $250,000.

Attorney General James Recovers $175,000 in Stolen Wages for Manhattan Pizzeria Workers

 

Gotham Pizza Failed to Pay its Workers Minimum Wage and Overtime Pay

  New York Attorney General Letitia James today announced that she has recovered $175,000 for employees of Gotham Pizza who were cheated out of their pay. Attorney General James’ investigation found that between 2016 and 2019, Gotham Pizza and its owner Michael Shamailov knowingly and intentionally failed to pay at least 10 employees proper minimum wage, overtime pay, and tips at its three locations in Manhattan.

“No matter how you slice it, fair pay is not a suggestion — it’s the law,” said Attorney General James. “For years, Gotham Pizza took advantage of its hard-working employees by failing to pay them for their work. I am proud to recover the money they have long been owed and cheated, and I will always fight to ensure New Yorkers get their fair piece of the pie.”

Gotham Pizza currently has three New York City locations: 1443 York Avenue (Upper East Side), 1667 First Avenue (Yorkville), and 144 Ninth Avenue (Chelsea).

The Office of the Attorney General’s (OAG) investigation revealed that from 2016 to 2019, at least 10 employees were paid under minimum wage, between $6 to $10 per hour when they should have been paid $11 to $15. In addition, they were never paid any overtime after working more than 40 hours per week and did not receive full tips. Gotham Pizza’s actions violated the Minimum Wage Order and New York labor laws, which require all employers to pay covered employees the applicable minimum wage and any legally required overtime rate for all hours worked over 40 hours in a workweek.

The agreement requires Gotham Pizza to pay a total of $175,000 to the 10 workers. Gotham Pizza must also provide OAG with compliance reports containing payroll information for its employee to ensure their cooperation with the law. Additionally, OAG will conduct spot interviews with Gotham workers to confirm that wages are being consistently and properly paid. If Gotham Pizza fails to comply with the terms of the agreement or fails to provide the workers the compensation required, OAG reserves the right to bring a civil action.

The OAG's Labor Bureau enforces worker-protection laws that protect workers from wage theft and other exploitation and investigates alleged violations of minimum wage, overtime, prevailing wage, and other labor laws throughout the state. If anyone has questions or believes that they have been a victim of wage theft or other labor law violations, please contact OAG at 212-416-8700 or Labor.Bureau@ag.ny.gov.

The agreement announced today marks Attorney General James’ most recent efforts to crack down on wage theft. Earlier this month, Attorney General James secured nearly $900,000 for more than 200 NYCHA construction workers who were underpaid by Lintech Electric. In March 2022, she announced agreements with two home health agencies for cheating employees out of wages and submitting false Medicaid claims. That same month, she secured an agreement with Sanford Apt. Corp (Sanford), a cooperative residential apartment building in Flushing, Queens that refused to pay its superintendents for their work.

“As the former Commissioner of the New York City Department of Consumer and Worker Protection, I made it a priority to protect our city’s workers,” said New York City Council Member Julie Menin. “This is intolerable that Gotham Pizza has violated worker-protection laws and paid below the minimum wage. I applaud Attorney General Letitia James for being proactive in pursuing businesses that are conducting wage theft and exploitation of its workers.”

“While making sure others ate, these workers had food stolen from their own table,” said New York City Council Member Erik Bottcher. “Fortunately for all New Yorkers, we have Attorney General James making sure that wage theft and worker exploitation does not go unpunished. I’m grateful to her and everyone at the Office of the Attorney General, especially the Labor Bureau, for their incredible work on behalf of our state.”

Governor Hochul Announces John Wang Will Be Nominated to Serve on the Empire State Development Board of Directors

 

Governor Kathy Hochul today announced John Wang will be nominated to serve on the Empire State Development Board of Directors. Mr. Wang is the first Asian American to be nominated to the ESD board.

"New Yorkers deserve leadership that is qualified and committed to the work of the State," Governor Hochul said. "With his wealth of experience and passion for public service, John Wang will be an extraordinary addition for Empire State Development. I look forward to working with him as we continue to bring together the most diverse and knowledgeable leaders to solve the State's most pressing challenges and deliver for New Yorkers."

Empire State Development Acting Commissioner and President and CEO-designate Hope Knight said, "Under Governor Hochul's leadership, New York State is advancing a bold economic agenda that is catalyzing new investments and creating more opportunities for more New Yorkers. Our diversity as a state is our strength, and the nomination of Mr. Wang helps to reflect the diversity of New York and its economy. Mr. Wang's experience, insight and unique perspectives are an asset to the ESD Board, and I look forward to working with him as we launch aggressive new initiatives to create quality jobs and generate sustainable economic growth in communities throughout the state."

John Wang is the President of the Asian American Business Development Center (AABDC), which he founded in 1994. It is a nonprofit established to provide technical assistance to Asian American small businesses and a leading trade development organization which promotes business between the United States and Asia. Over the years, a major component of AABDC's work has expanded into the promotion and advocacy of Asian American executives, business leaders and entrepreneurs through the Outstanding 50 Asian Americans in Business Award which recognizes the achievement and contribution of Asian Americans in the general economy. Over 700 Asian Americans have been honored since 2001.

The mission of Empire State Development (ESD) is to promote a vigorous and growing state economy, encourage business investment and job creation, and support diverse, prosperous local economies across New York State through the efficient use of loans, grants, tax credits, real estate development, marketing and other forms of assistance.

To support the governor's economic development mission, ESD will help execute many priorities in the FY23 Budget such as:

• $1.4B ConnectAll Initiative
• $1B Small Business Rescue Plan
• $350M Office of Strategic Workforce Development
• $250M Restore NY
• $200M Shovel Ready Investments (FAST NY)

As part of ESD's board of directors, John Wang will help to bring back a robust and prosperous economy for Asian-owned businesses and all of the amazing small businesses across the state. His experience in helping businesses in New York and abroad will help give Asian-owned small businesses the boost they need after a turbulent two years.

Inspector General Lucy Lang commends Governor Kathy Hochul for actions taken to protect state employees from gender-based violence, stalking, and sexual assault

 

Governor Kathy Hochul expanded New York State's approach to preventing gender-based violence, stalking, and sexual assault in the workplace by adopting many of Inspector General Lucy Lang’s recommendations issued earlier this morning at the New York State Crime Victims Memorial.  

The new Executive Order, signed today by Governor Hochul, and effective immediately, will modernize the state's workplace policies, procedures, and trainings, resulting in a safer environment for all employees, ensuring that responses to domestic violence is survivor-centered, trauma-informed and culturally responsive. 

“Every employee of New York State deserves to feel safe in their workplace,” said Inspector General Lucy Lang. “I am thrilled by Governor Hochul’s decisive action to make New York a national leader in addressing and preventing gender-based violence in its workforce. Today, the Governor acted swiftly to address the findings and recommendations of our investigative report, which I am confident will make our state workforce better prepared, responsive, and safer for domestic violence victims and all state employees.”

The Governor’s Executive Order follows a newly issued investigative report by Inspector General Lang revealing failures by senior leadership at State agencies overseen by the prior administration to comply with their own domestic violence policies due to a lack of agency awareness of and sensitivity to domestic violence issues.   

As detailed in the report, despite being made aware by the employee that she had been the victim of emotional, physical, and verbal abuse by her husband, senior employees in the Labor Relations and Legal Departments failed to respond appropriately. Almost a year later, the husband, who was by then no longer employed by OGS, killed his wife in their home before taking his own life. “While the facts of this ultimate tragedy are beyond the scope of our investigation, which assessed only the agencies’ compliance with their internal policies, it provides critical context for the complexities and dangers of domestic violence, “ said Inspector General Lang.  “Moreover, it is an opportunity to reflect on and improve the way we respond to domestic violence in the future.”

Among the Inspector General’s recommendations was designating one or more agency liaisons to the Office for the Prevention of Domestic Violence (OPDV) and distribute the liaison name(s) and contact information to staff.  Since a 2008 executive order, State agencies have been required to utilize OPDV’s model to formulate and adopt policies of their own, but it was not until today that the designation of and dissemination of the contact information for the liaison was mandatory. The Inspector General commends the Governor for addressing this critical gap in policy.  

As she also announced earlier today, Inspector General Lang has launched a comprehensive audit of all State executive branch agencies to assess compliance with State Domestic Violence and the Workplace mandates and will now include these additional requirements.  The Inspector General’s Office will provide these findings to OPDV who will work with these agencies to ensure compliance and provide training and resources.

Permits Filed For 3273 Third Avenue In Morrisania, The Bronx

 

Permits have been filed for a seven-story mixed-use building at 3273 Third Avenue in Morrisania, The Bronx. Located between East 163rd and East 164th Streets, the lot is closest to the Intervale Avenue subway station, serviced by the 2 and 5 trains. Joel Fekete of JF Real Estate Capital Inc is listed as the owner behind the applications.

The proposed 72-foot-tall development will yield 52,842 square feet, with 49,223 square feet designated for residential space, 3,254 square feet for commercial space, and 364 square feet for community facility space. The building will have 73 residences, most likely rentals based on the average unit scope of 674 square feet. The concrete-based structure will also have a cellar, a 31-foot-long rear yard, and 22 open parking spaces.

DJLU Architects is listed as the architect of record.

Demolition permits have not been filed yet. An estimated completion date has not been announced.

Governor Hochul Announces Historic State Funding to Yonkers Schools - Is This Quid Pro Quo for the State Senate to Change the Election Law?

FY 2023 Budget Provides Unprecedented Support for Students and Teachers

Historic Plan Includes Record $31.5 Billion in Total Statewide School Aid for School Year 2023 - Highest Level of State Aid Ever

Record $360.1 Million in State Aid to Yonkers City Schools in 2022-2023 

 Governor Kathy Hochul today announced historic state funding to Yonkers schools for the 2022-2023 school year. This aid is part of Governor Hochul's unprecedented investment in education in the FY 2023 State Budget. Those investments include a statewide school aid increase of $2.1 billion, including a $1.5 billion increase in Foundation Aid and a $125 million increase in pre-kindergarten for four-year-old children. Additionally, the Budget provides $100 million in matching funds to provide academic and mental health supports for students and educators.

"Our FY 2023 State Budget includes historic investments that will make a difference in people's lives now and for years to come, including a record investment in our public schools - the largest in state history," Governor Hochul said. "The COVID-19 pandemic was an unimaginable experience forced upon our teachers and students, but they rose to the challenge. It is now our responsibility to ensure they have support to get back on track, recover, and thrive and I thank Majority Leader Stewart-Cousins for her collaboration on this budget which unleashes the power of New York's education system."  

Senate Majority Leader Andrea Stewart-Cousins said, "I'm proud that we are continuing to build on the efforts I helped lead over the past years to fully fund our schools so that regardless of zip code or school district, every New York student has access to a high-quality education. This past budget, it was important that effort pushed forward with Governor Hochul, Senate Education Chair Shelley Mayer, the Democratic Senate Majority, and our partners in the Assembly. Working together, we were able to bring home these historic levels of funding to our students in Yonkers and across New York State. These landmark investments in students from cradle to college will ensure a bright path forward for New York."

The FY 2023 State Budget provides $360.1 million in state aid to Yonkers City schools in 2022-2023 - an increase of $25.5 million, or 7.6 percent, over the previous school year. This includes 2022-23 Foundation Aid of $246.7 million, a year-to-year increase of $12.7 million or 5.4 percent. The Yonkers City School District also receives $19.6 million of VLT aid, and an additional $12 million in the SED budget.

The Budget increases School Aid in the Mid-Hudson region by $358.7 million, or 13.0 percent, including a $267.3 million, or 15.0 percent, increase in Foundation Aid. This increase is largely driven by the second year of the three-year phase-in of full funding of the Foundation Aid formula.

EDITOR'S NOTE:

What a coincidence, State Senate Majority Leader Stewart-Cousins is getting additional funding for the schools in her district. Is this Quid Pro Quo so the State Senate will vote to change the election law so Brian Benjamin's name can be taken off the ballot, thus allowing another name to be substituted?