Comptroller Lander Releases Analysis of New York City’s June 2022 Financial Plan and Fiscal Year 2023 Adopted Budget

 

Urges depositing $800 million of additional FY22 tax revenues into long-term reserves to help prepare for a potential economic downturn, while using a modest portion of remaining Federal stimulus to reverse school budget cuts.

 New York City Comptroller Brad Lander today released an analysis of the City’s fiscal year (FY) 2023 Adopted Budget. The analysis comes at a time of ongoing economic uncertainty and mixed signals. While New York City is facing record inflation, stock market volatility and rising interest rates, the City has also benefited from stronger-than-expected tax revenue, strong job growth, rebounds in tourism levels and record numbers of new business applications.

“The pandemic’s economic impacts have exacerbated long-standing inequities in New York City. While the Fiscal Year 2023 Adopted Budget addressed several of the concerns I raised earlier in the spring, including a large deposit to our Rainy Day Fund, it still falls short in key areas that threaten the City’s long-term stability and economic growth. Our analysis shows that we can do better to secure a more resilient city, by depositing $800 million of excess FY22 tax revenue into long-term reserves, while using 11% of remaining federal stimulus dollars for education to cover $469 million in school budget cuts. That would help us prepare better, both for a future economic downturn, and for the future of our kids,” said Comptroller Brad Lander. 

The FY 2023 Adopted Budget of $101 billion is $10.44 billion less than in FY 2022 budget, predominantly driven by a reduction in COVID assistance from federal relief measures. The Adopted Budget included several changes to the Executive Budget supported by the Comptroller’s Office, including:

• A $371 million increase in the labor reserve to support annual wage increases of 1.25% as the City moves toward negotiations with all its workforce amidst high vacancies.
• An added $118 million into the rental assistance program.
• $10 million to ensure that undocumented children have access to publicly funded childcare.
• An additional $1.5 billion in long-term reserves, split equally between the Revenue Stabilization Fund (RSF) and the Retiree Health Benefit Fund (RHBF), bringing the total to $6.55 billion, or 9.4% of the City’s tax revenues.

As the City faces economic uncertainty, increasing reserves will be key to ensuring New York City is prepared to weather a fiscal storm. In addition to commending the increase to long-term reserves this year, the Comptroller’s Office reiterated the recommendation issued in a May 2022 report titled Preparing for the Next Fiscal Storm, to increase deposits to cover 16% of tax revenues and to establish a policy for regular deposits and limited withdrawals. Comptroller Lander also called for depositing $800 million in additional FY 2022 revenues identified in the Adopted Budget into long-term reserves.

Although the total budget for the Department of Education increased by $292 million from the Preliminary Budget, individual school budgets were cut by $469 million for FY 2023, a net reduction of $372 million. Comptroller Lander has repeatedly called for using federal recovery dollars for education to cover the gaps facing principals this year. The DOE continues to have over $4 billion in unused federal stimulus dollars that was allocated by Congress to provide relief and support schools through the pandemic, including over $600 million that was budgeted to be spent in FY 2022 but has not yet been spent. That one-time funding was intended to help support students during a time of loss and anxiety, and it should be used to stabilize school funding this year. The City also must have a thoughtful, transparent conversation to address long-term enrollment trends and ensure sustainable funding to support the needs of students and families.

Uncertain economic conditions, a declining stock market, under-budgeting in key areas, and recurring programs that remain unfunded in the outyears will need to be addressed in future financial plans. The Comptroller’s office projects slightly higher revenues than OMB’s forecast, but they are not sufficient to address risks and known funding shortfalls. Several programs (including rental assistance, shelter security guards, and 3K expansion) are fully funded in FY 2023 with non-recurring stimulus funding which risks the programs being under funded in future years when stimulus funding expires. The report identifies overtime, Carter Cases, homeless shelters, foster care reimbursement, paratransit, court appointed counsel, and public assistance and areas of concern for underbudgeting. The impact of historic stock market declines on NYC’s pension investment returns in FY 2022 will impose additional costs on the City’s budget beginning in FY 2024. The Comptroller’s Office projects that the City will face net risks of $869 million in FY 2023, $6.43 billion in FY 2024, $7.07 billion in FY 2025, and $9.55 billion in FY 2026.

Comptroller Lander urges the City to address these significant risks proactively through long-term planning for the City’s budget and its economic development programs, further contributions to reserves, and a thoughtful PEG program.

To read the full analysis on New York City’s FY 2023 Adopted Budget, click here.

Attorney General James and Governor Hochul Announce $2 Million Penalty Against Company That Unlawfully Operated Oil Wells

 

James Lee Ordered to Plug Hundreds of Oil Wells That Jeopardized Drinking Water in Steuben and Cattaraugus Counties 

Decision Includes Largest-Ever Financial Penalty Imposed for Well-Plugging Violations 

  New York Attorney General Letitia James and Governor Kathy Hochul today announced a $2 million judgment in a lawsuit against James R. Lee and his corporate affiliates for flagrant violations of the state’s oil and gas well regulations and endangering communities in Steuben and Cattaraugus counties. Lee and his companies were ordered by a State Supreme Court judge to pay the penalty — the largest financial penalty imposed in an oil and gas well case — and to bring his oil wells into full compliance with state laws. For years, Lee and his companies did not properly plug the wells they operated, which posed a significant danger to drinking water supplies and of releasing methane in the areas surrounding the wells.  

“This is a crucial win for our efforts to protect New York’s air and water. These unlawfully operated oil wells threatened drinking water for countless families in the Southern Tier and Western New York and posed significant harms to the environment,” said Attorney General James. “This case should make it clear that New York will stand up to anyone that threatens the health of our communities or our natural resources. I am grateful to Governor Hochul, Commissioner Seggos, and our partners at DEC for their partnership in stopping polluters and protecting the people.” 

“My administration is laser focused on taking decisive action in order to protect drinking water in communities across the state, and the record financial penalty announced today is a major victory for New York,” said Governor Hochul. “We remain steadfast in our efforts to hold accountable anyone who jeopardizes the health and safety of New Yorkers. I thank Attorney General Letitia James for her partnership in taking action to protect the public health and environment in Steuben and Cattaraugus counties.”

“This judgment is a significant day of reckoning for Lee and his companies after years of blatant disregard for New York state’s stringent requirements at hundreds of oil well sites in Steuben and Cattaraugus counties,” said DEC Commissioner Seggos. “I thank Attorney General James, her team, and my staff for their tireless work to bring this persistent violator to justice. This precedent-setting case demonstrates that New York state will leave no stone unturned in aggressively pursuing polluters and holding them accountable for the damage they wreak on our environment and communities.”

For many years, Lee and his shell corporate affiliates — Lee Oil Company, Inc., Whitesville Producing Corporation, Whitesville Production Corp., Allegro Oil & Gas Inc., and Allegro Investments Corporation — owned or operated hundreds of oil wells in Steuben and Cattaraugus counties. These unlawful operations were the subject of numerous enforcement actions brought by the Office of the Attorney General (OAG) and DEC. After failing to follow environmental laws and properly plug more than 400 of the wells, OAG and DEC filed a lawsuit against Lee and his companies to force them to comply including properly plugging their wells, as well as to pay penalties for their longstanding and flagrant violations. 

The court ruled in favor of OAG and DEC in their case against Lee, and determined that: 

•   Defendants failed to plug more than 400 oil wells;
•   Defendants failed to submit over 10 years of required annual reports for the wells;
•   Defendants failed to file required DEC Organizational Reports for the well operators;
•   Defendants failed to provide adequate financial security intended to ensure the wells’ plugging;
•   James Lee is personally liable for the penalty and for bringing the wells into compliance and is not shielded by his defunct corporate affiliates; and
•   Responsibility to plug the wells can pass on to successor owners of the affected mineral property.

The $2 million penalty was imposed on Lee and his corporate affiliates, based in part, on the fact that the state proved Lee benefitted financially — by at least $1 million — by failing to comply with the state’s environmental law and remitting judgments against them. In its decision, the court found that Mr. Lee and his companies have violated these laws for years and have ignored the state’s repeated attempts to bring Mr. Lee and his companies into compliance.  

Unplugged oil and gas wells pose serious threats to drinking water supplies and the overall environment. Several of Lee’s wells have already discharged oil to surrounding waters and pose ongoing public health threats. Additionally, these wells can emit methane, a potent greenhouse gas that greatly contributes to climate change.  

The court said its decision needed to carry a strong message to discourage other well operators from considering abandoning their own obligations at oil and gas wells around New York state and leaving taxpayers to pay for their plugging. The decision also establishes important real property law precedent that may be used to require owners of properties with unplugged wells to fully comply with the state’s well plugging requirements. 

The DEC will continue to provide rigorous oversight of Lee’s wells and work to ensure the court’s order is followed by bringing all wells into compliance. Mr. Lee has claimed an inability to pay for the plugging, but DEC will seek to recover assets he has that may be used to fulfill the obligations imposed by the judgment. 

Governor Hochul Announces More Than 6,000 Illegal Gun Seizures as a Result of Interstate Gun Task Force Since January

 Intrastate and Interstate Cooperation among Local, State and Federal Agencies Producing Results

Total Seizures Across New York State Increased 20 Percent from January Through July 2022 When Compared to First Seven Months of Last Year

Individuals Injured by Gunfire Decreased 12 Percent in Communities Participating in State-Funded Gun Involved Violence Elimination Initiative and 11 Percent in New York City

140 Percent Increase in New York State Police Gun Seizures Between August 2021 to July 2022 Compared to August 2020 to July 2021

 Governor Kathy Hochul today announced that police agencies have removed 6,007 illegal guns from communities across New York State during the first seven months of the year, a 20 percent increase when compared to the same timeframe in 2021. Joined by New York City Mayor Eric Adams and Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Steven Dettelbach prior to a meeting of the Interstate Task Force on Illegal Guns, Governor Hochul updated New Yorkers about her administration's comprehensive efforts to stem the flow of illegal guns, reduce gun violence and save lives. ATF Director Dettelbach touted the Task Force as a national model for other regions in the country to follow.

"My administration is laser focused on stopping the devastation caused by gun violence in communities across the state, and we continue to take bold action to face this crisis head on," Governor Hochul said. "This record number of gun seizures is the result of an unprecedented, nation-leading coordinated response among dedicated law enforcement professionals on the local and federal levels. I'd rather be in the crime prevention business than the crime solving business, and thanks to the first-of-its-kind Interstate Gun Task Force, that's exactly what we are doing together."

Governor Hochul also announced that New York State Police seized 1,468 guns from August 2021 to July 2022: the highest number in the history of the agency. This represents a 140 percent increase when compared to August 2020 to July 2021, when the State Police seized 612 guns.

Bureau of Alcohol, Tobacco, Firearms and Explosives Director Steven Dettelbach said, "This Task Force has what is needed to make a difference- and ATF, through our Crime Gun Intelligence Centers, our eTrace crime gun tracing system, and NIBIN- is committed to providing our law enforcement partners the actionable intelligence and leads needed to identify the trigger-pullers who terrorize our communities and the firearm trafficking networks that illegally supply them with guns."

The Interstate Task Force on Illegal Guns has fostered significant cooperation and collaboration among local, state, and federal law enforcement agencies in Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, Ohio, Pennsylvania, Rhode Island and Vermont since its creation earlier this year. Task Force members convened for the fourth time this morning to discuss data, intelligence, strategies and other tactics critical to their ongoing efforts to address the increase in gun violence that has occurred in New York and the nation since early 2020. The next meeting will occur next month in New Jersey.

Governor Hochul also announced that New York State Police seized 1,468 guns from August 2021 to July 2022: the highest number in the history of the agency. This represents a 140 percent increase when compared to August 2020 to July 2021, when the State Police seized 612 guns.

Bureau of Alcohol, Tobacco, Firearms and Explosives Director Steven Dettelbach said, "This Task Force has what is needed to make a difference- and ATF, through our Crime Gun Intelligence Centers, our eTrace crime gun tracing system, and NIBIN- is committed to providing our law enforcement partners the actionable intelligence and leads needed to identify the trigger-pullers who terrorize our communities and the firearm trafficking networks that illegally supply them with guns."

The Interstate Task Force on Illegal Guns has fostered significant cooperation and collaboration among local, state, and federal law enforcement agencies in Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, Ohio, Pennsylvania, Rhode Island and Vermont since its creation earlier this year. Task Force members convened for the fourth time this morning to discuss data, intelligence, strategies and other tactics critical to their ongoing efforts to address the increase in gun violence that has occurred in New York and the nation since early 2020. The next meeting will occur next month in New Jersey.

2022 Bronx Chamber of Commerce Gala: The Reveal

The Board of Directors and leadership team of The Bronx Chamber of Commerce will host it’s 2022 Gala – Celebrating Our Members on Thursday, September 29, 2022 at 6:30pm at Marina Del Rey, 1 Marina Drive in the Throggs Neck section of the Bronx. The event, gathering over 600 attendees, highlights the rich history and achievements of the Bronx’s oldest economic development agency and celebrates the contributions of:     Joseph Kelleher, President, Simone Metro Properties and Chairman, The Bronx Chamber of Commerce   John Collazzi, Co-Founder, The Bronx Times Reporter and Founding Board Member and Member Emeritus, The Bronx Chamber of Commerce   The New York Yankees, in honor of the late George Steinbrenner, Principal Owner, NY Yankees and Founding Vice President of The Bronx Chamber of Commerce   The evening is the Bronx's #1 business networking event of the year and features a two-hour cocktail reception, dinner, and dancing. Invited speakers include New York State Governor Kathy Hochul and New York City Mayor Eric Adams. The evening includes star-studded performances by Master of Ceremonies, Sal Valentinetti, "The Voice,” Brenda K. Starr, C-Bank, Cynthia, Steven Maglio, and DJ Serg. This annual event raises critical funds for borough economic and workforce development. 100% of all contributions support the Bronx Chamber’s business and economic development programs.  Sponsor, Purchase Tables & Tickets - Click Here Secure Your Journal Ad - Click Here  ‌  ‌  ‌

Official AOC Campaign - General Election Ttarts Today

 

It’s official, 

After yesterday’s primary, we now have a Republican opponent that Alexandria will face in the general election on November 8, 2022.

Last year, our Republican opponent raised $10 million against us. The entire Republican establishment and their corporate allies put the full weight of their propaganda machine into spreading lies about Alexandria.

Whether or not their candidate had a chance of winning wasn’t the point. They used the campaign as an opportunity to discredit Alexandria and prop up their talking points on Fox News. And this year will be no different.

Just yesterday, their campaign set up a massive #OustAOC sign on a highway overpass in Queens.

We need to be ready to fight back against their mailers, posters, commercials, and digital ads with deep organizing and truth telling, which is why we’ve set a goal of raising $150,000 before the end of August.

No matter what, we’re going to stay focused on the facts and issues that matter to the people of NY-14 — and the work that Alexandria has done to fight for working families.

Thank you for your support,

Team AOC

Former JetBlue Employee Pleads Guilty to COVID-19 Loan Fraud

 

Defendant is the Last of Seven Conspirators Convicted for Stealing Nearly $1.5 Million in Fraudulently Obtained Small Business Loans

 Keily Nunez, a former JetBlue Airways employee, pleaded guilty to conspiracy to commit wire fraud in connection with false statements Nunez made to obtain loans for himself and his coconspirators pursuant to the Economic Injury Disaster Loan (EIDL) program.  Nunez and four coconspirators were charged in June 2021.  Today’s proceeding was held before United States District Judge Raymond J. Dearie. 

In connection with the scheme, five other defendants previously pleaded guilty to conspiracy to commit wire fraud: Orlando Sanay, Michael Pimentel Veloz, Fanny Plasencia, Ramon Osvaldo Pena, and Angel K. Colon.  In addition, codefendant Keimi Nunez previously pleaded guilty to wire fraud.  When sentenced, all defendants face up to 20 years in prison and have agreed to forfeit the fraudulently obtained loan funds.

Breon Peace, United States Attorney for the Eastern District of New York, and Ricky J. Patel, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty pleas. 

“Each of the defendants admitted to their part in stealing nearly $1.5 million from a government program designed to help struggling small businesses and families survive the pandemic,” stated United States Attorney Peace.  “This Office will continue to aggressively prosecute those who seek to enrich themselves by abusing government programs.”

“Nunez and his co-conspirators fleeced the government to the tune of over $1.5 million, taking advantage of programs designed to keep small businesses afloat during a time of unprecedented economic volatility,” said HSI New York Acting Special Agent in Charge Ricky J. Patel. “Since the early days of the COVID-19 global pandemic, HSI has been committed to uncovering pandemic fraud and holding accountable those who take advantage of tragedy to turn a profit.”

The EIDL program provides qualifying small businesses with low-interest loans.  The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic.  As set forth in court filings, between April 2020 and November 2020, the defendants applied for EIDL loans for eleven separate entities.  In those applications, the defendants falsely represented the number of employees associated with the entities and misstated the gross revenues for the entities for the 12 months prior to the COVID-19 pandemic. 

For example, Nunez submitted a loan application to the Small Business Association (SBA) in April 2020 claiming that Plasencia was the Chief Operating Officer and Nunez was the manager of FI USA Consulting LLC (FI USA).  In the application, Nunez falsely claimed that FI USA had 42 employees and gross revenues of $672,137 for the relevant period.  The SBA approved FI USA’s application and on July 13, 2020 wired $149,900 to FI USA’s bank account.  In contrast to the claims made in the application, New York Department of Labor records showed that FI USA never reported having any employees.  Internal Revenue Service records further revealed that FI USA never filed a tax return since its formation in 2017.  There is no evidence that the EIDL funds provided to FI USA were used for business purposes. 

Based on the defendants’ false representations, the Small Business Administration approved approximately $1.5 million in loans that were deposited into the defendants’ bank accounts. 

In addition to making false statements to obtain the loans, the defendants did not use the relief funding for ongoing business expenses as the EIDL program requires.  Instead, they withdrew hundreds of thousands of dollars in cash from bank accounts that had received EIDL loan funds. 

When sentenced, all defendants face up to 20 years in prison and have agreed to forfeit the fraudulently obtained loan funds.

Leadership Of Yoga To The People Arrested For Tax Fraud

 

The Three Defendants Together Earned Millions of Dollars from Nationwide Yoga Business But Did Not File Tax Returns – or Pay Taxes – from at least 2013 to 2020

 Damian Williams, the United States Attorney for the Southern District of New York,  Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New York Field Office (“IRS-CI”), and Jonathan Mellone, Special Agent-in-Charge of the New York Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), announced charges against GREGORY GUMUCIO, MICHAEL ANDERSON, and HAVEN SOLIMAN for participating in a conspiracy to commit tax fraud for at least seven years.  The three defendants were longtime leaders at a prominent nationwide yoga business, Yoga to the People (“YTTP”), from which they all received a substantial amount of income, yet none of the three defendants filed individual or business tax returns – or paid any income taxes – from at least 2013 through 2020.  GUMUCIO, ANDERSON, and SOLIMAN were arrested today in Washington State.  GUMUCIO and SOLIMAN will be presented before Magistrate Judge David W. Christel in the Western District of Washington (Tacoma Division), and ANDERSON will be presented before Magistrate Judge Mary Alice Theiler in the Western District of Washington (Seattle Division).

U.S. Attorney Damian Williams said:  “As alleged, the defendants operated a lucrative nationwide yoga business, which brought in over $20 million and netted them each substantial sums, permitting them to live lavish lifestyles.  Yet the defendants chose not to file tax returns, or pay income taxes, for at least seven consecutive years.  The defendants perpetrated their scheme in various ways, including paying employees in cash and off the books, refusing to provide employees with tax documentation, not maintaining books and records, paying personal expenses from business accounts, and using nominees to disguise their connection to various entities.  At least two of the defendants even submitted fabricated tax returns to third parties when seeking a loan or an apartment, despite not filing any tax returns with the IRS.  Thanks to dogged investigative work, the defendants now face serious charges for their alleged crimes.”

IRS-CI Special Agent in Charge Fattorusso said:  “The defendants purported to create a donation-based exercise community to make yoga more accessible for their clients, when in reality, they allegedly ran a more than decade-long cash cow that relied on a sophisticated network of tens of millions of dollars in unreported income and free labor to fund the leaders’ lavish lifestyles.  Today’s arrests and charges are the opening salvo against this years-long scam and the first step to holding these defendants accountable for their alleged crimes.”

DOL-OIG Special Agent-in-Charge Jonathan Mellone said:  “An important part of the mission of the Office of Inspector General is ensuring that workers receive the wages that they are entitled to and that appropriate unemployment insurance taxes are withheld from their pay and remitted to the relevant tax authority. We will continue to work with our law enforcement partners to investigate these types of allegations."

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

In or around 2006, GUMUCIO founded YTTP in New York, New York.  YTTP was originally donation-based: YTTP requested, but did not require, payment from its yoga students.  YTTP started with one yoga studio on the Lower East Side of Manhattan, and it became extremely popular.  Over the ensuing years, YTTP opened at least approximately 20 yoga studios or affiliated entities throughout New York City and in various other places, including California, Colorado, Arizona, Florida, and Washington State.  YTTP also had a teacher training program, which earned substantial income from aspiring yoga teachers.  YTTP operated from at least approximately 2006 until 2020.  From 2010 to 2020, YTTP and its affiliates generated gross receipts of more than $20 million.  Yet YTTP never filed a corporate tax return with the IRS. 

YTTP’s leadership included GUMUCIO, ANDERSON, and SOLIMAN.  GUMUCIO was YTTP’s founder, principal owner, and functional chief executive officer, as he directed and made decisions for the YTTP enterprise.  ANDERSON was an owner of YTTP and the functional chief financial officer; he was involved in, among other things, negotiating leases for YTTP entities, obtaining Employer Identification Numbers from the IRS, opening bank accounts, and working with GUMUCIO to expand YTTP.  SOLIMAN was an owner of YTTP, its Chief Communications Officer, the Director of Education for YTTP’s Teacher Training (“TT”) Program, and was actively involved in YTTP’s efforts to expand internationally.

GUMUCIO, ANDERSON, and SOLIMAN each received a large volume of income from YTTP, yet none of the three defendants filed a personal tax return with the IRS for any calendar year from 2013 to 2020, inclusive.  Using conservative figures, for calendar years 2015 to 2020, GUMUCIO had unreported income directly from YTTP exceeding $1.6 million and a tax due and owing to the IRS exceeding an estimated $431,000; ANDERSON had unreported income directly from YTTP exceeding $2.1 million and a tax due and owing to the IRS exceeding an estimated $603,000; and SOLIMAN had unreported income directly from YTTP exceeding $961,000 and a tax due and owing to the IRS exceeding an estimated $196,000.  During the charged period, GUMUCIO, ANDERSON, and SOLIMAN each represented their annual income to be six figures to third parties not associated with the Government (e.g., in loan applications, rental applications, and/or bank documents), yet none of them filed an individual tax return. 

During the charged period, despite not filing any tax returns and not paying any income taxes, GUMUCIO, ANDERSON, and SOLIMAN enjoyed extravagant lifestyles, which included frequent foreign travel; expensive meals and clothing; NFL season tickets; and horse lodging and horseback riding.

YTTP and its leaders, including GUMUCIO, ANDERSON, and SOLIMAN, used various methods to evade taxes, including, among others:

• Accepting yoga students’ payments in cash (e.g., which was collected in tissue boxes that were passed around during yoga classes) and paying yoga teachers in cash and “off the books”;
• Using nominees to disguise the defendants’ connection to various entities which, in fact, were part of the YTTP enterprise and from which GUMUCIO, ANDERSON, and SOLIMAN all received income; to that end, GUMUCIO targeted and groomed typically young women and others to become nominee “owners” of studios, luring them with the title of studio owner when, in fact, he generally controlled business decisions, took a cut of their proceeds, and the nominees generally took on meaningful financial risk;
• Generally forbidding YTTP teachers from counting incoming cash that yoga students paid and requiring yoga studio managers to transport cash proceeds to GUMUCIO’s apartment on St. Marks Place in Manhattan, where those proceeds were “stacked” and counted during so-called “stacking parties”;
• Failing to maintain a corporate headquarters or keep corporate books and records;
• Using YTTP business accounts to pay the defendants’ personal expenses; and
• Maximizing unreported income, as GUMUCIO manipulated subordinates into providing free labor (e.g., teaching unpaid classes, stacking cash, cleaning yoga studios, depositing cash into bank accounts, etc.).

GUMUCIO, 61, of Cathlamet, Washington; ANDERSON, 51, of Bellevue, Washington; and SOLIMAN, 33, of Cathlamet, Washington, are each charged with (i) one count of conspiracy to defraud the IRS, which carries a maximum penalty of five years in prison; and (ii) five counts of tax evasion, each of which carries a maximum penalty of five years in prison. 

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

Mr. Williams praised the outstanding efforts of IRS-CI, DOL-OIG, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.  Mr. Williams also thanked the U.S. Attorney’s Office for the Western District of Washington for its assistance. 

Mr. Williams also noted that the investigation is ongoing.  If you believe you have information about the defendants, this case, or if you believe you are a victim of any crimes related to YTTP, please email USANYS.YTTPcase@usdoj.gov.

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 below constitute only allegations, and every fact described should be treated as an allegation.

Speaker Adrienne E. Adams, Council Members, and Department for the Aging Announce Over $3 Million in Funding for Specialized Vehicles to Deliver Meals to Homebound Older New Yorkers

 

Funds from City Council will support home delivered meals program across the city

Department for the Aging’s community-based partners will be able to use the funds to replace 44 hotshot vans used for meal deliveries

 New York City Council Speaker Adrienne E. Adams and Council Members have announced a $3.08 million allocation to the Department for the Aging’s (DFTA) community-based partners for repair and replacement of an estimated 44 hotshot vans for the City’s home delivered meals program. The program serves millions of meals annually to older adults, who are homebound due to health or physical challenges. The meals are reviewed by registered dietitians to ensure they are nutritionally balanced.

“Our seniors are the jewels of our communities who deserve to be supported with nutritious home-delivered meals,” said Speaker Adrienne Adams. “The City Council prioritized investing $3 million of its funds to help community-based partners continue delivering meals in a safe and timely manner. It is critical that our city meets the needs of older adults, and this funding will contribute to the vital services for homebound New Yorkers. I am proud to join my colleagues in celebrating this important allocation by the City Council in the city budget.”

“For over 30 years, the home delivered meals program has provided hot, nutritious meals to our most vulnerable older adults across the five boroughs. Even at the height of the pandemic, program staff and volunteers never stopped delivering meals,” said Mayor Eric Adams. “I’m pleased that the funding we are announcing today will provide the vehicles necessary for this program to continue serving older New Yorkers for years to come. This is another step in creating a more equitable city we can all be proud to live in, and age together in.”  

“Our local partners throughout the city have been doing an incredible job making sure homebound older adults receive the meals they need, and this allocation from the City Council will ensure they have the equipment necessary to continue their services,” said Commissioner Lorraine Cortés-Vázquez. “The home delivered meals program has been essential to making sure residents can age in dignity, and this allocation helps ensure we can continue our mission.”