MAYOR ERIC ADAMS DELIVERS REMARKS AT NEW YORK STATE FINANCIAL CONTROL BOARD MEETING

 

Mayor Eric Adams: Good morning as well. And I want to acknowledge the presence and thank a good friend, state Comptroller Tom DiNapoli, Comptroller Brad Lander — city comptroller, and the private members, Secretary of State Rossana Rosado, Steven Cohen, and my longtime friend William Thompson. I want to thank you all. I want to thank the City Council for their partnership and the members of my team who are here with me today, both First Deputy Mayor Lorraine Grillo and Budget Director Jacques Jiha.

 

The adopted plan follows the guidepost I set down in January. This includes promoting the city's economic recovery, building and maintaining budget reserves, achieving budget savings, using resources efficiently and lifting New Yorkers and working families. The bottom line is that we are boosting the recovery and increasing resiliencies like never before.

 

If we were to start with last year, fiscal year 2022 ended with a $6.1 billion surplus that we used to prepay current year expenses. As in the past, we used the gap closing strategy to balance the $101.1 billion fiscal year 2023 adopted budget. Our out year gaps are manageable, falling below the 20 year average as a percentage of city funds spending. Cautiously estimating, revenue is the cornerstone of our fiscal management strategy and protects the recovery by ensuring that we responsibly meet needs as they arise. At adoption, we adjusted our fiscal year 2023 revenue forecast upwards to reflect a $1.5 billion in additional tax revenue. This growth was driven by the impact of record level of Wall Street activity in 2021 on personal income taxes. We use these additional revenues to prepay expenses and reduce the current fiscal year budget year gap. They also were the key to strengthening our reserves. Our planning must recognize that we face uncertainty, and I just really want to emphasize that. We face uncertainty in the future.

 

I agree with my friends here today that building and maintaining budget reserves as a buffer against the unexpected is a critical priority. So at adoption, we partnered with the City Council to increase reserves by $2 billion, which is the largest single contribution to reserves in the city's history. There is now $1.9 billion in the rainy-day fund, $4.5 billion in the retiree health benefits trust, and $1.6 billion in the general reserves as well as $250 million in the capital stabilization reserve. The $8.3 billion we have set aside and reserved is a record level and exceeds 10% of city’s funds revenue for the first time, which is a benchmark recognized by rating agencies and fiscal monitors.

 

On top of building and maintaining reserves, we have remained committed to reducing headcount and achieving savings. Through our strict headcount and attrition management, we have reduced employee headcount to just under 304,000. This is 23,000 lower than the city's peak in September 2019. As I have made clear, I will keep pushing city government to be more efficient and use taxpayers’ dollars wisely.

 

In this budget cycle, we set aside additional resources to defray the cost of upcoming labor negotiations. By adding nearly $4.7 billion to the labor reserve across the financial plan, we have now funded 1.25 percent annual wage increase for city employees. Now, we are clear that this is the beginning, not an ending. However, while we are committed to paying fair wages, we will not make deals that the city cannot afford.

 

Further, as financial conditions have changed dramatically since the height of the pandemic, we have removed unallocated labor savings from the financial plan outyears. While this grows out years gaps, it more truly reflects the current financial condition that we are facing. On top of strong fiscal management, to fully recover we must make the city safer and cleaner and help members of our community who were disproportionately impacted by the pandemic.

 

We're trying to bring New Yorkers back to this important level. We don't want to go back to the way it was. We want to take it to the place where it should be, a place where everyone across the five boroughs has opportunity and would thrive and prosper. To get this done, we made commitments to subway safety, expanded summer jobs and enrichment opportunities for youth, and are connecting even more at-risk New Yorkers with green jobs. Recognizing the importance of our human and legal services providers we were on the front lines during the pandemic — they were on the front lines during the pandemic, we baselined a contract adjustment. To help working families, we worked with the governor — and I want to thank you, governor, and the state lawmakers — to expand the New York City Earned Income tax revenue and credit and provided incentives for employers and property owners to create more childcare options citywide. And because vital public spaces are so important to the recovery, we made significant investments to keep our streets and parks cleaner, safer, and more inviting. These investments were made possible by our commitment to achieving budget savings and the prudent use of additional revenues.

 

To conclude, I'm proud to say that the city has met all requirements imposed by the Financial Emergency Act and that our financial plan advances the recovery, is fiscally responsible, and builds a stronger and more resilient New York. Rating agencies support our approach. In May, Fitch Ratings singled out our commitment to building and maintaining record levels of reserves and upgraded the city's ratings from stable to positive for the first time in more than a decade. And our economy continues to strengthen creating jobs at a quick pace. We have now recovered more than 80 percent of jobs lost in the height of the pandemic and expect a full recovery within two years.

 

So I want to thank you for this opportunity to speak with you today and for the important work for the city and the people of this city and the future. Thank you very much. Thank you, governor.

WHAT YOU SHOULD KNOW By Former NYC Councilman Rev. Ruben Diaz

 

Tina Forte To Visit The New York Hispanic Clergy Organization

You should know that Ms. Tina Forte will be among the most recent on the list of elected officials and Political Candidates who have paid a visit to the New York Hispanic Clergy Organization.  Ms. Forte, a successful entrepreneur in the Bronx, will address the Clergy members before the November 8^th General Elections.

 

This Thursday September 8^th, Ms. Tina Forte will be meeting with the Hispanic Clergy members at the Christian Community Neighborhood Church located at 1437 Longfellow Avenue, in the Bronx.

 

It is important that you know that Ms. Tina Forte is not only a successful Entrepreneur, but she is also a family woman, mother, and grandmother and she is the Republican Candidate for the U.S. House of Representatives in New York’s 14^th Congressional District running to unseat Congresswoman Alexandria Ocasio Cortez (AOC).

 

Ms. Tina Forte is following last week's visit from Congressman Lee Zeldin and other Republican and Conservative candidates that have given the Hispanic Clergy the opportunity to dialogue with them and listen to their concerns. 

I am Reverend Ruben Diaz, and this is What You Should Know.

Former Employee of Telecommunications Company Charged for Large-Scale Mobile Phone Unlocking Scheme

 

 A former telecommunications company employee was charged for his role in a scheme to fraudulently unlock the Subscriber Identification Module (SIM) cards of thousands of mobile phones, U.S. Attorney Philip R. Sellinger announced today.

Richard Forrest Sherman, 43, of previously of Salem, Oregon, and now Boerne, Texas, is charged by complaint with wire fraud conspiracy in Newark federal court. He was arrested today in Texas, had his initial court appearance before U.S. Magistrate Judge Henry Bemporad in federal court in the Western District of Texas, and was released on $30,000 unsecured bond.

According to documents filed in this case and statements made in court:

Sherman worked at a multinational telecommunications company. While there, he managed an account for a customer that received an exemption to unlock the SIM cards of mobile devices. Sherman exploited this exemption by creating a series of customer accounts within the carrier’s system to make the accounts look like an affiliate company of the customer that actually received the exemption. Sherman and others then submitted bulk unlocking requests through these fake affiliate accounts that Sherman set up before leaving the telecommunications company. 

Sherman, through his entities, received payment from others in exchange for causing the fake affiliate accounts to successfully send International Mobile Equipment Identity (IMEI) numbers in bulk to the carrier. The carrier, believing that the fake affiliate company was entitled to the unlocking exception, unlocked these IMEIs in bulk. Unlocking these IMEIs permitted others involved in the scheme to resell the phones for profit – the phones would have otherwise remained locked or required payment of a fee to be unlocked. Sherman set up the fake affiliate accounts in or around 2013; he and his conspirators exploited the fraud scheme until it was discovered in August 2020. 

The wire fraud conspiracy count is punishable by a maximum of 20 years and a fine of $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whichever is greatest. 

U.S. Attorney Sellinger credited special agents of the U.S. Secret Service’s Seattle Field Office, under the direction of Special Agent in Charge Robert Canestrari, with the investigation leading to the charge.

The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty. 

Governor Hochul Announces Plans To Establish Caribbean Trade Office To Strengthen Economic Ties With New York State Businesses

 

Governor Kathy Hochul today announced that New York State will establish a Caribbean trade office to support and encourage new economic opportunities for New York businesses. This new foreign office will assist New York State companies with international sales and exporting their products and services to the Caribbean region. The Governor made the announcement at the West Indian American Day Carnival Association Breakfast.  

 "Today we are taking important steps to expand trade opportunities for New York State businesses in the Caribbean,"Governor Hochul said."This vibrant commercial region will help New York companies broaden and develop new partnerships as we begin a new and exciting chapter in our economic development relationship with this market."  

Empire State Development President, CEO and Commissioner Hope Knight, said,"The new Global NY office in the Caribbean will help New York State businesses realize their full potential in accessing new international markets for their goods and services. Expanding international export opportunities supports business growth that in turn boosts the economy and creates more good-paying jobs for New Yorkers." 

The Caribbean is a growing market for New York State businesses and communities, and New York is expanding its network of global office coverage to meet the additional demand. Qualifying New York State businesses interested in exporting can leverage the State's foreign offices for customized market intelligence and for assistance identifying potential sales partners or distributors in select countries. 

The new office will be established through Empire State Development's Global NY division, which helps New York businesses launch or expand their presence in the global marketplace and promotes access to international trade opportunities and resources. Other foreign offices include Africa, Canada, China, Europe, India, Israel, Mexico and South America. 

About Global NY 

Global NY, a division of Empire State Development, offers financial and technical assistance that can offset the costs of exporting for New York businesses and organizations looking to connect to the rest of the world. Available support includes grants and loans to help qualifying small and medium-sized businesses looking to start or increase their global exports and non-profit organizations that provide export assistance and trade education to New York State companies. For more information please visit www.esd.ny.gov/global-ny-export-assistance.  

This Labor Day, our work is far from over.

Happy Labor Day!

Today, we honor workers across the country, and all who have advocated for worker’s rights.

In the 118 years since the first Labor Day, generations of workers have organized and fought relentlessly for their rights. Their fight created workplace protections for all Americans that created safer working conditions, better working hours, and fair pay.

But our work is far from over.

Too many of our neighbors still lack basic benefits like paid sick leave and family leave — which is critical, especially during a pandemic.

That’s why my colleagues and I are fighting to expand labor rights and protect good working conditions for all.

That looks like fighting for a livable wage, passing the PRO Act to protect the right of unions to organize, enshrining paid family leave, taxing excessive CEO pay, and much more.

So today, and everyday, I am proud to represent the working families of the South Bronx, and I am committed to the success of America's workers. It's clear that when working families succeed, we all succeed.

Have a safe and wonderful Labor Day.

Congressman Ritchie Torres

Permits Filed For 2838-2840 Webb Avenue In Kingsbridge, The Bronx

 

Permits have been filed for two four-story residential buildings at 2838-2840 Webb Avenue in Kingsbridge, The Bronx. Located between West 197th Street and Reservoir Avenue, the lots are near the Kingsbridge Road subway station, serviced by the 4 train. Eric Delafraz under the Webb Avenue 1 LLC is listed as the owner behind both applications.

The proposed 37-foot-tall developments will yield 5,693 square feet for residential space at 2838 Webb Avenue and 5,248 square feet designated for residential space at 2840 Webb Avenue. The buildings will each have eight residences, most likely rentals based on the average unit scope ranging from 656 to 711 square feet. The masonry-based structures will also have cellars and 37-foot-long rear yards.

Badaly Architects is listed as the architect of record.

Demolition permits will likely not be needed as the lots are vacant. An estimated completion date has not been announced.

Bayer Corp. to Pay $40 Million to Resolve Alleged use of Kickbacks and False Statements Relating to Three Drugs

 

 Bayer Corp., an Indiana corporation and manufacturer of pharmaceutical products, and its related entities, Bayer HealthCare Pharmaceuticals Inc., Bayer HealthCare LLC, and Bayer AG (collectively “Bayer”), have agreed to pay $40 million to resolve alleged violations of the False Claims Act in connection with the drugs Trasylol, Avelox, and Baycol. 

The settlement announced today arose from two “whistleblower” lawsuits filed and pursued by a former employee of Bayer who worked in its marketing department. 

In a lawsuit filed in the District of New Jersey, the employee, Laurie Simpson, alleged that Bayer paid kickbacks to hospitals and physicians to induce them to utilize the drugs Trasylol and Avelox, and also marketed these drugs for off-label uses that were not reasonable and necessary. Simpson further alleged that Bayer downplayed the safety risks of Trasylol. The lawsuit alleged that as a result of this conduct Bayer caused the submission of false claims to the Medicare and Medicaid programs and violated the laws of 20 states and the District of Columbia.  Trasylol is a drug used to control bleeding in certain heart surgeries. Avelox is an antibiotic approved to treat certain strains of bacteria.

Simpson filed a second lawsuit relating to Bayer’s statin drug, Baycol, which was later transferred to the District of Minnesota. That lawsuit alleged that Bayer knew about, but downplayed, Baycol’s risks of causing a serious syndrome that results from the death of muscle fibers and the release of their contents into the bloodstream. The lawsuit further alleged that Bayer misrepresented the efficacy of Baycol when compared to other statins and fraudulently induced the Defense Logistics Agency to renew certain contracts relating to Baycol. Subsequently, Trasylol and Baycol were withdrawn from the market for safety reasons. 

“As alleged in the complaints, Bayer – one of the largest pharmaceutical companies in the world – engaged in a series of unlawful acts, including paying kickbacks to doctors and hospitals, marketing them off-label, and downplaying their safety risks,” U.S. Attorney Philip R. Sellinger, District of New Jersey, said. “This resolution should send a message to the pharmaceutical industry that such conduct undermines the integrity of federal health care programs and jeopardizes patient safety. This settlement reflects the importance of the whistleblower’s role in litigating False Claims Act actions on behalf of the United States, and we thank Ms. Simpson and her counsel for stepping forward and pursuing this case to conclusion.”

“Ms. Simpson diligently pursued this matter for almost two decades,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Today’s recovery highlights the critical role that whistleblowers play in the effective use of the False Claims Act to combat fraud in federal healthcare programs.”

“We recognize Ms. Simpson for her perseverance with this matter,” said U.S. Attorney Andrew M. Luger, District of Minnesota, said. “We are pleased we were able to work with the parties to facilitate this resolution and help bring this longstanding matter to a close.”

Under the terms of the settlement, Bayer will pay $38.9 million to the United States and $1.14 million to the 20 states and the District of Columbia.

The two actions resolved by the settlement were brought under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the government for false claims and share in any recovery. The United States may intervene in the action or, as in this case, the whistleblower may proceed with the matter. Ms. Simpson will receive $11 million from the proceeds of the settlement. 

The resolution obtained in this matter was supported by a coordinated effort between the U.S. Attorney’s Office in the District of New Jersey, the Department of Justice Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office in the District of Minnesota.

The government is represented by Assistant U.S. Attorney Kruti D. Dharia of the District of New Jersey’s Opioid Abuse Prevention and Enforcement Unit, Senior Trial Counsel Sanjay M. Bhambhani of the Civil Division’s Commercial Litigation Branch, Fraud Section, and First Assistant U.S. Attorney Ann M. Bildtsen of the District of Minnesota.

The cases are captioned United States ex rel. Simpson v. Bayer Corp. Civ. No. 05-cv-3895 (D.N.J.), and United States ex rel. Simpson v. Bayer Corp., Civ. No. 08-cv-5758 (D.Minn).

The claims settled by this agreement are allegations only, and there has been no admission of liability.

New Jersey Man Pleads Guilty to Assaulting Officers With a Dangerous Weapon During Jan. 6 Capitol Breach

 

Defendant Sprayed Officers With a Chemical Substance

 A New Jersey man pleaded guilty to two felony charges for assaulting law enforcement officers with a dangerous weapon – pepper spray – causing bodily injury to the officers during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

Julian Elie Khater, 33, of Somerset, New Jersey, pleaded guilty in the District of Columbia to two counts of assaulting, resisting, or impeding officers with a dangerous weapon.

According to court documents, Khater and a co-defendant -- George Pierre Tanios – traveled together to Washington, D.C. on Jan. 6, 2021. Prior to the trip, Tanios purchased two cannisters of bear spray and two cannisters of pepper spray. He provided one cannister of pepper spray to Khater prior to arriving in Washington. On Jan. 6, the two men attended a rally near the Ellipse and then headed towards the Capitol, where they joined others in a mob illegally on the grounds.

Khater then walked through the crowd to within a few steps of a bike rack barrier being used by a line of law enforcement officers attempting to secure the Capitol and its grounds. Khater stood directly across from officers. At 2:23 p.m., people in the mob began pulling on the bike rack barrier using ropes and their hands to pull the rack away. Seconds later, from less than eight feet away, Khater sprayed pepper spray from a cannister in his right hand at the officers. He first sprayed a U.S. Capitol Police Officer, identified in court documents as “Officer B.S.,” in the face. That officer then turned his head away and retreated from the police line.

Khater continued to deploy the spray, advancing towards another Capitol Police officer, identified in court documents as “Officer C.E.,” and spraying her directly in the eyes from only a few feet away. She dropped her head and retreated, requiring the assistance of another officer because she was unable to see. Khater then sprayed a Metropolitan Police Department officer, identified in court documents as “Officer D.C.,” directly in the face. That officer also immediately retreated from the line. All three officers suffered bodily injury from the pepper spray attack and were incapacitated and unable to perform their duties.

Khater and Tanios were arrested on March 14, 2021. Tanios, 42, of Morgantown, West Virginia, pleaded guilty in the District of Columbia on July 27, 2022, to entering and remaining in a restricted building or grounds and disorderly and disruptive conduct in a restricted building or grounds. The charges carry a combined statutory maximum of two years in prison and potential financial penalties. Tanios is to be sentenced on Dec. 6, 2022.

Khater is to be sentenced on Dec. 13, 2022. He faces a statutory maximum of 20 years in prison on each of the two counts of assaulting, resisting, or impeding officers with a dangerous weapon. The charges also carry potential financial penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

In the 19 months since Jan. 6, 2021, more than 860 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 260 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.