Attorney General James Secures $400,000 From Wegmans After Data Breach Exposed Consumers’ Personal Information

 

AG James Requires Wegmans to Improve Data Storage Security Practices to Protect Consumers

 New York Attorney General Letitia James today secured $400,000 from grocery store chain, Wegmans, for exposing the personal information of more than three million consumers nationwide, including more than 830,000 New Yorkers. For years, Wegmans kept consumers’ personal information in misconfigured cloud storage containers that were open, making it easy for hackers or others to potentially access the information. The compromised data included usernames and passwords for Wegmans accounts, as well as customers’ names, email addresses, mailing addresses, and additional data derived from drivers’ license numbers. As a result of Attorney General James’ action, Wegmans is also required to upgrade its data security practices to protect consumers.

“Wegmans failed to safely store and seal its consumers’ personal information, instead it left sensitive information out in the open for years,” said Attorney General James. “Today, Wegmans is paying the price for recklessly handling and exposing millions of consumers’ personal information on the internet. In the 21^st century, there’s no excuse for companies to have poor cybersecurity systems and practices that hurt consumers.”

In April 2021, a security researcher informed Wegmans that a cloud storage container hosted on Microsoft Azure was left unsecured and open to public access, potentially exposing consumers’ sensitive information. Wegmans immediately reviewed its cloud environment and identified the container, which had a database backup file with over three million records of customer email addresses and account passwords. The container was misconfigured from its creation in January 2018 until April 2021. During this time, an unauthorized actor could have accessed and cracked account credentials, using them to log in to a customer’s Wegmans account or to access a customer’s account on a different website if the customer had reused their password. In May 2021, Wegmans discovered a second cloud storage container that was also misconfigured. The storage container, which was left publicly accessible since it was set up in November 2018, housed a database that included customers’ names, email addresses, mailing addresses, and additional data derived from drivers’ license numbers. 

In June 2021, Wegmans began notifying affected consumers whose personal information was compromised during the incident. The Office of the Attorney General (OAG) determined that, in addition to failing to appropriately configure the cloud storage containers to limit access to its contents, at the time of the incident, Wegmans failed to inventory its cloud assets containing personal information, secure all user passwords, and regularly conduct security testing of its cloud assets. In addition, Wegmans maintained checksums derived from customers’ driver’s license numbers without a reasonable business purpose to maintain any form of driver’s license information indefinitely. Wegmans also failed to maintain long-term logs of its cloud assets, which made it difficult to investigate security incidents.

As a result of today’s agreement, Wegmans is required to pay New York $400,000 in penalties. In addition, Wegmans must adopt new measures to protect consumers’ personal information going forward, including:

•  Maintaining a comprehensive information security program that includes regular updates to keep pace with changes in technology and security threats and reporting security risks to the company's leadership;
•  Maintaining appropriate asset management practices, including maintaining an inventory of all cloud assets;
•  Establishing policies and procedures to ensure all cloud assets containing personal information have appropriate access controls to limit access to such information;
•  Developing a penetration testing program that includes at least one annual comprehensive penetration test of Wegmans’ cloud environment;
•  Implementing centralized logging and monitoring of cloud asset activity, including logs that are readily accessible for a period of at least 90 days and stored for at least one year from the date the activity was logged;
•  Establishing appropriate password policies and procedures for customer accounts, including hashing stored passwords with a hashing algorithm and salting policy commensurate with NIST standards, encouraging customers to use strong passwords, educating customers on the benefits of multifactor authentication, and prohibiting password reuse;
•  Maintaining a reasonable vulnerability disclosure program that allows third parties, such as security researchers, to disclose vulnerabilities;
•  Establishing appropriate practices for customer account management and authentication, including notice, a security challenge, or re-authentication for account changes; and,
•  Updating its data collection and retention practices, including only collecting a customer’s personal information when there is a reasonable business purpose for collection and deleting personal information when there is no longer a reasonable business purpose to retain such information — for information collected prior to the effective date of the agreement, Wegmans will permanently delete all personal information for which no reasonable purpose exists within 240 days of the effective date.

Lev Parnas Sentenced To 20 Months In Prison For Campaign Finance, Wire Fraud, And False Statements Offenses

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that LEV PARNAS was sentenced in Manhattan federal court by United States District Judge J. Paul Oetken to 20 months in prison for conspiring to make political contributions by a foreign national along with solicitation and aiding and abetting the making of the same, conspiring to make straw donations, participating in a wire fraud conspiracy, and making false statements and falsifying records.  PARNAS was previously found guilty on October 22, 2021 following a two-week jury trial on campaign finance and false statements offenses, and pled guilty to participating in a wire fraud conspiracy on March 25, 2022. 

U.S. Attorney Damian Williams said:  “Parnas will now serve time in prison for his many crimes.  Not content to defraud investors in his business, Fraud Guarantee, out of more than $2 million dollars, Parnas also defrauded the American public by pumping Russian money into U.S. elections and lying about the source of funds for political contributions.  My office will continue to aggressively prosecute those who put their personal and financial gain above their country and their investors.”

According to the allegations in the Indictment, court documents, and evidence presented at trial:

The Foreign Donor Scheme

In the spring of 2018, PARNAS, Igor Fruman, Andrey Kukushkin and Andrey Muraviev, a Russian oligarch, decided to launch a business aimed at acquiring retail cannabis licenses in the United States. As part of that plan, Muraviev agreed to wire $1 million, through a series of bank accounts, to Fruman and PARNAS to fund hundreds of thousands of dollars in political contributions they had made or promised to make before the election in November 2018.  The purpose of the donations was to curry favor with candidates that might be able to help PARNAS and his co-conspirators obtain cannabis and marijuana licenses.  To obscure the fact that Muraviev was the true donor of the money, the funds were sent to a business bank account controlled by Fruman’s brother, and then the donations were made in PARNAS’s and Fruman’s names.

The Straw Donor and False Statements Scheme

In March 2018, PARNAS and Fruman began attending political fundraising events in connection with federal elections and making substantial contributions to candidates, joint fundraising committees, and independent expenditure committees with the purpose of enhancing their influence in political circles and gaining access to politicians. 

In May 2018, to obtain access to exclusive political events and gain influence with politicians, PARNAS and Fruman made a $325,000 contribution to an independent expenditure committee.  PARNAS and Fruman also made thousands of dollars in contributions to a federal candidate and a joint fundraising committee.  Despite the fact that the Federal Election Commission (“FEC”) forms for these contributions required PARNAS and Fruman to disclose the true donor of the funds, they falsely reported that the $325,000 contribution came from Global Energy Producers, a purported liquefied natural gas import-export business that was incorporated by PARNAS and Fruman around the time the contributions were made.  PARNAS also falsely stated on contribution forms that contributions to the federal candidate and joint fundraising committee were paid for by him.  In truth and in fact, the donations did not come from Parnas or GEP funds.  Rather, the contributions were all straw donations paid for by Fruman. 

In response to a complaint filed with the FEC regarding the $325,000 contribution to the independent expenditure committee, and to further conceal the true source of the funds used to make certain of their donations, in or about October 2018, PARNAS and Fruman submitted sworn affidavits to the FEC that contained false statements, including that the $325,000 contribution “was made with GEP funds for GEP purposes” and that  “GEP is a real business enterprise funded with substantial bona fide capital investment; its major purpose is energy trading, not political activity.”

The Fraud Guarantee Scheme

Between in or about late 2012 and in or about mid-2019, PARNAS and David Corriea conspired to defraud multiple victims by inducing them to invest in their company, known as “Fraud Guarantee,” based on materially false and misleading representations.  Among other things, PARNAS and Correia falsely claimed that the investors’ funds would be used solely for legitimate business expenses of Fraud Guarantee, when in fact the funds were largely withdrawn as cash, transferred to personal accounts, and used for various apparently personal expenditures.  PARNAS and Correia also made materially false representations concerning, among other things, how much money PARNAS had contributed to the company and how much money the company had raised overall.  At least seven victims invested in Fraud Guarantee based at least in part on PARNAS’s and Correia’s false and misleading representations, with each victim being fraudulently induced to pay hundreds of thousands of dollars, for a total of more than $2 million.

PARNAS, 50, of Boca Raton, Florida, was sentenced to 20 months in prison, three years of supervised release, as well as $2,322,500 restitution.  Igor Fruman was sentenced to 366 days in prison on January 21, 2022 for solicitation of a contribution by a foreign national.  Andrey Kukushkin was sentenced to 366 days in prison on March 15, 2022 for conspiring to make and aiding and abetting the making of a contribution by a foreign national.  David Correia was sentenced to 366 days in prison on February 8, 2021 for making false statements and conspiracy to commit wire fraud.  Andrey Muraviev is believed to be in Russia and remains at large. 

Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office.

MAYOR ADAMS, CHIEF MEDICAL EXAMINER DR. GRAHAM ANNOUNCE FORMATION OF NATION’S FIRST DNA GUN CRIMES UNIT

 

Dedicated Team of Forensic Scientists at City’s DNA Crime Laboratory Will Accelerate Testing of Evidence to Bolster Fight Against Gun Violence

 New York City Mayor Eric Adams and New York City Chief Medical Examiner Dr. Jason Graham today announced the formation of the first-ever gun crimes unit at a public DNA crime laboratory in the country. The Office of the City Medical Examiner (OCME) DNA Gun Crimes Unit will focus exclusively on the testing and analysis of evidence from gun crimes and accelerate testing turnaround times to 30 days or less to expedite the processing of gun crime cases in the criminal justice system — strengthening public safety and the city’s criminal justice system.

 

“The Office of the Chief Medical Examiner is central to our fight against gun violence in New York City, and so we must fight the gun violence crisis with every tool at our disposal. That includes timely and accurate DNA testing of gun crime evidence,” said Mayor Adams. “New York City already processes gun crimes testing faster than 90 percent of the jurisdictions in the nation, but the OCME DNA Gun Crimes Unit will use the power of science to bring those involved in gun crimes to justice faster and help the criminal justice system process cases more quickly. With this new team, New York City is leading the way to end gun violence and keep our communities safe.”

 

“For every New Yorker concerned about or touched by gun violence, today’s announcement demonstrates the city’s commitment to safety and justice,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “OCME’s specialized unit will help speed up law enforcement investigations. It will also provide individuals and families involved in a case with certainty that the city’s forensic laboratory is bringing every resource to bear to serve justice. Thank you to the OCME team, to our law enforcement partners, and to every person that chooses to serve in the DNA Gun Crimes Unit.”

 

“The DNA Gun Crimes Unit exemplifies the mission of OCME to leverage science in the service of justice and public safety,” said Chief Medical Examiner Dr. Jason Graham. “This specialized team will laser focus our forensic expertise to test evidence from gun crimes and rapidly deliver results for all communities affected by gun violence. Our testing turnaround times are already among the best in the nation, and this initiative will bring us to the next level.”

 

Funded by an investment of $2.5 million, the OCME DNA Gun Crimes Unit will hire and train 24 forensic scientists dedicated solely to the testing and analysis of evidence from gun crimes throughout the five boroughs. Within the next year, the specialized squad will ensure testing turnaround times of an unprecedented 30 days or less, as measured from when testing is requested by a district attorney to the distribution of the case report to the district attorney and the New York City Police Department. Funding will also support upgrades in laboratory management software, the purchase of new equipment, and supplies.

 

OCME operates the largest public DNA crime laboratory in North America, responsible for testing physical evidence from criminal cases within New York City. The lab tests approximately 50,000 items of evidence each year across all categories of crime. Testing turnaround times for gun crimes currently stand at 60 days or less, faster than 90 percent of the jurisdictions in the nation.

Managed and staffed by scientists in OCME’s Department of Forensic Biology, the city’s DNA laboratory serves the criminal justice system as an independent resource, with testing results used to convict the guilty and exonerate the innocent. The lab is accredited by the ANSI National Accreditation Board (ANAB) and the New York State Forensic Laboratory Accreditation program.

Housing Lottery Launches For 661 Manida Street Senior Apartments In Hunts Point, The Bronx

 

The affordable housing lottery has launched for 661 Manida Street, an eight-story residential building with senior housing in Hunts Point, The Bronx. Designed by Rise Architecture and developed by Josil Group, the structure yields 56 residences. Available on NYC Housing Connect are 32 units for residents at 80 percent of the area median income (AMI), ranging in eligible income from $54,343 to $96,080.

Amenities include bike storage lockers, a shared laundry room, gym, recreation room, and an elevator. Units include name-brand kitchen appliances, countertops, and finishes, air conditioning, and intercoms. Tenants are responsible for electricity.

At 80 percent of the AMI, there are 23 studios with a monthly rent of $1,487 for incomes ranging from $54,343 to $85,440 and nine one-bedrooms with a monthly rent of $1,583 for incomes ranging from $59,143 to $96,080.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than August 30, 2022.

Betances Residence Completes Construction At 443 East 142nd Street In Mott Haven, The Bronx

Breaking Ground has completed construction on Betances Residence, a 152-unit affordable and supportive housing property at 443 East 142nd Street in Mott Haven, The Bronx. The development is Breaking Ground’s first Passive House-certified building and was completed in partnership with New York City Housing Authority (NYCHA) and the New York City Department of Housing Preservation and Development (HPD).

Designed by COOKFOX, Betances Residences features two eight-story towers that together comprise approximately 120,000 square feet. As a Passive House structure, the property’s high-performance façade provides greater airtightness compared to typical multifamily residential buildings. This level of insulation reduces the amount of energy needed to maintain a comfortable interior temperature, annual utility costs, and overall greenhouse gas emissions.

The mix of apartments includes 130 studios and 22 one-bedroom layouts. All of the apartments are reserved for formerly homeless and low-income adult households, plus a single unit for the superintendent. A total of 26 units were made available to current residents of NYCHA apartments.

Amenity spaces include a laundry room, a library and computer lab, a multipurpose room for events and programming, a landscaped courtyard, and a roof deck.

The building also features 4,700 square feet for a community facility with educational programming for underserved youth.

“Older adults are the fastest growing population in New York, and Betances helps ensure that our most vulnerable seniors can age in place without constant fear of losing their home,” said Brenda Rosen, president and CEO of Breaking Ground at a ribbon-cutting ceremony earlier this month. “We are especially grateful to NYCHA and our government partners, whose commitment to expanding affordable housing is unmatched. It is a privilege to continue to invest in the South Bronx and bring this beautiful, sustainable residence, along with programs for youth, to the Mott Haven community.”

Betances Residence received capital funding from the New York City Council and Bronx borough president’s office, HPD, HDC, OTDA/HHAC, and Wells Fargo Bank, N.A. The Corporation for Supportive housing provided pre-development funds. The AFL-CIO Housing Investment Trust purchased tax-exempt bonds to finance the development.

“Current NYCHA residents and low-income seniors will now have access to permanently affordable and supportive housing, a critical lifeline for our city’s seniors as they age,” said Jonathan Gouveia, executive vice president of real estate development of The New York City Housing Authority. “We congratulate Breaking Ground on the completion of this energy-efficient and thoughtfully designed building and look forward to continued partnership across city and state agencies.”

Permits Filed For 665 East 183rd Street In Belmont, The Bronx

 

Permits have been filed for a six-story mixed-use building at 665 East 183rd Street in Belmont, The Bronx. Located between Belmont Avenue and Cambreleng Avenue, the lot is closest to the 182-183 Street subway station, serviced by the B and D trains. Nikolin Mjerashaj under the 3539 Drinon LLC is listed as the owner behind the applications.

The proposed 65-foot-tall development will yield 9,403 square feet, with 8,561 square feet designated for residential space and 841 square feet for community facility space. The building will have 11 residences, most likely rentals based on the average unit scope of 778 square feet. The masonry-based structure will also have a 30-foot-long rear yard.

Adnan Engineering is listed as the architect of record.

Demolition permits were filed last July for the two-story residential building on the site. An estimated completion date has not been announced.

Major Multi-Drug Seizure of Over 250 Pounds of Heroin, Fentanyl, Cocaine, Crystal Meth and Counterfeit Pills in the Bronx

Accused Major Trafficker Arrested Inside Apartment 

 A court authorized search of an apartment in the Mount Hope neighborhood of the Bronx resulted in the seizure of approximately 110 kilograms of heroin, fentanyl and cocaine, plus 50 pounds of a substance believed to be crystal meth and up to 75,000 counterfeit pills believed to contain fentanyl. The drugs, which were allegedly intended for citywide distribution, carry an estimated street value of approximately $24 million. JULIO MOTA PLASENCIA was arrested in the stash apartment on Monday night and is charged with Operating as a Major Trafficker.

 Bridget G. Brennan, New York City’s Special Narcotics Prosecutor, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration’s (DEA) New York Division, Bronx District Attorney Darcel D. Clark, New York City Police Commissioner Keechant L. Sewell, Ricky J. Patel, Acting Special Agent in Charge, Homeland Security Investigations (HSI), New York, and New York State Police Superintendent Kevin P. Bruen announced the seizure and arrest following the arraignment of MOTA PLASENCIA in Manhattan Criminal Court last night, where he was ordered held without bail.

 MOTA PLASENCIA was arrested on the evening of Monday, June 27, 2022, inside 112 Henwood Place, Apt. 3D in the Bronx. A criminal complaint filed by the Office of the Special Narcotics Prosecutor contains charges of Operating as a Major Trafficker and Criminal Possession of a Controlled Substance in the First and Third Degrees.

 The investigation was conducted by the DEA’s New York Organized Crime Drug Enforcement Strike Force. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.

 The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; U.S. Customs and Border Protection; the U.S. Marshals Service; New York National Guard; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.

 Pursuant to an investigation, members of the New York OCDETF Strike Force obtained a court authorized warrant for 112 Henwood Place, Apt. 3D. Upon entering the apartment at about 6:55 p.m. on Monday, June 27, 2022, agents and officers allegedly observed MOTA PLASENCIA run to the rear of the third floor apartment. Agents and officers pursued and found him standing on a windowsill in the bedroom. An open duffle bag that allegedly contained approximately 20 kilograms of narcotics was nearby.

 A thorough search of the apartment revealed drugs present throughout. Inside one closet near the entrance to the apartment, agents and officers found a gym bag with 50,000 to 75,000 counterfeit pills that were blue in color and stamped “M-30” mimicking a commonly abused form of oxycodone. The pills are believed to contain fentanyl.

 A second closet held two duffle bags containing 30 to 40 kilograms of narcotics and three ziplock bags of heroin, two of which were labelled “Cartel” and “Goma.” Also inside that closet were four boxes of rifle ammunition, with a total of 80 rounds, that can also be used in certain handguns.

 Inside the living room, agents and officers recovered a red cooler containing approximately 26 kilograms of cocaine, and a duffle bag containing cylindrical packages wrapped in plastic that are believed to have contained crystal meth. Also in the living room was a cardboard box with miscellaneous car parts and a kilogram of cocaine.

 A hamper in a hallway outside the bedroom contained approximately three kilograms of cocaine. On the kitchen counter were two kilograms of cocaine that had been opened up, as if being prepared for packaging.

 Some kilogram packages were labeled with various names, such as Toyota and Audi, and an image of the Dockers logo. The drugs seized will be submitted for DEA laboratory analysis.

 Drug paraphernalia was also recovered from various places in the apartment. A suitcase contained a kilo press used in packaging wholesale quantities of narcotics. A duffle bag contained plates for the kilo press. Other items recovered included scales, plastic gloves and other packaging materials. A drug ledger contained MOTA PLASENCIA’s name and multiple dollar amounts. Agents and officers seized evidence of multiple alias. Multiple forms of identification bore his picture and different names, including a driver’s license from the Dominican Republic.

 Special Narcotics Prosecutor Bridget G. Brennan thanked Bronx District Attorney Darcel D. Clark and Brooklyn District Attorney Eric Gonzalez, and commended her office’s Special Investigations Bureau, and the New York Organized Crime Drug Enforcement Strike Force, including the DEA; the New York City Police Department; the New York State Police; Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; U.S. Customs and Border Protection; the U.S. Marshals Service; New York National Guard; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.

 “It appears that this apartment served as the Amazon warehouse for lethal drugs in New York City and surrounding regions,” said Special Prosecutor Brennan “While this case is consistent with the trend towards high-level traffickers selling many different drug types, it is highly unusual to find such large amounts concentrated in one location.”

 “Data doesn’t lie, New York is under siege by criminal drug networks flooding our city streets with fentanyl, killing people at record rates,” said DEA Special Agent in Charge Frank Tarentino. “This significant seizure proves that today’s traffickers have all the ingredients to make toxic cocktails for retail sales, deliberately blinding the users of what they are really getting. Through great teamwork among the New York Strike Force and NYC Office of the Special Narcotics Prosecutor, we have taken $24 million worth of deadly drugs off our streets.”

 Bronx District Attorney Darcel D. Clark said, “This seizure illustrates what we are up against in the Bronx with traffickers bringing vast amounts of poisonous drugs that devastate communities here and in the metropolitan area. It is particularly disturbing that there was such a variety of dangerous drugs; fentanyl and crystal meth are especially destructive to people’s health. We will continue to work with local, state, and federal partners to target these traffickers and get these deadly drugs off our streets. I thank Special Narcotics Prosecutor Bridget G. Brennan and Frank A. Tarentino III, Special Agent in Charge of the DEA, for their partnership, as well as HSI, New York, NYPD and the New York State Police.”

 “These illegal narcotics are poison. Period. They are peddled for profit by criminals who prey on some of the most vulnerable communities in New York City – and as this case demonstrates it is behavior that can never be tolerated,” said NYPD Commissioner Keechant L. Sewell. “The work of our NYPD investigators, together with the city’s Special Narcotics Prosecutor, the DEA, and all of our law enforcement partners has shut down a depraved drug-dealing operation in this case and I want to thank all of our investigators for their outstanding in doing so.”

 Defendant                                  Charges

Julio Mota Plasencia           Operating as a Major Trafficker – 1 ct

Bronx, NY                           CPCS 1st – 1 ct.

Age: 39                                CPCS 3rd – 1 ct

The charges and allegations are merely accusations and the defendant is presumed innocent until proven guilty.

DiNapoli: Rechargeable Batteries Use Rising, But State Not Enforcing Recycling Law

 

Rechargeable Batteries in Waste Stream Can Contaminate Waterways, Cause Fires

Audit Finds Department of Environmental Conservation Unaware If Manufacturers, Retailers Obey Recycling Law Created to Protect Environment, Public Safety

 The state Department of Environmental Conservation (DEC) is not doing enough to ensure rechargeable batteries are recycled as required by law to protect the environment and public safety, according to an audit released today by New York State Comptroller Thomas P. DiNapoli.

“We use devices with rechargeable batteries every day, but they pose serious environmental risks if they’re not properly recycled,” DiNapoli said. “Unfortunately, the agency responsible for making sure they get recycled has little knowledge of whether it’s actually happening or whether they’re going out with the trash where they put New York’s environment, public health and safety at risk. DEC has to start monitoring compliance with the law, and enforcing it, or this hazard will only get worse as use of rechargeable batteries increases.”

Rechargeable batteries can contain toxic metals such as mercury, lead, cadmium, nickel and silver, and lithium-ion, all of which can pose a threat to the environment and human health and safety if they are not properly recycled. If they’re just put in the garbage and enter the waste stream, they can end up in landfills and their chemicals can leak into public water systems, lakes and streams. Lithium-ion batteries can ignite or explode if they are damaged in the waste stream and were the cause of a six-alarm fire on a trash barge in December 2021.

DEC is responsible for enforcing the 2010 New York State Rechargeable Battery Law that requires manufacturers and retailers recycle rechargeable batteries with some exceptions such as large batteries weighing over 25 pounds and rechargeable vehicle batteries. Recycling in New York is managed by Call2Recycle (C2R), a non-profit program funded by the rechargeable battery and portable electronics industry, under a plan approved by the DEC in 2013.

C2R provides collection bins, pays for shipping and sorting and selects recycling facilities, so there are no public costs or public collection sites. C2R also creates, and submits to the DEC, an annual report on the recycling efforts that battery manufacturers are required to provide under the law. Between 2017 and 2020, C2R reported collecting 996,149 pounds of rechargeable batteries – mostly nickel-cadmium, followed by sealed lead, lithium-ion, and nickel metal hydride.

DiNapoli’s audit found that, outside of C2R’s efforts, the DEC has no independent awareness of whether rechargeable batteries are being recycled in New York as the law requires or how much is being recycled. The agency also does little with the annual reports that C2R submits on behalf of manufacturers.

C2R’s 2020 report listed 189 manufacturers in its recycling program that sell rechargeable batteries in the state. In 2014, it gave DEC a list of 75 manufacturers that were not in the program and might not have been complying with the law. DEC sent letters that resulted in 25 joining the program, but has taken no action since then to check on the remaining 50 manufacturers.

In 2021, C2R sent DEC a list of the top 10 manufacturers that are not in its recycling program, but the agency has not taken any action on it. Auditors were able to reach seven of the manufacturers who each stated they had no recycling program. Two of them are large companies with more than 14,000 employees and $5 billion in revenue.

As of September 2021, there were 911 retail locations in C2R’s program. Auditors checked on 30 of them and found five did not know they were enrolled in the program to collect and recycle rechargeable batteries and three did not have a collection bin. There are at least 1,248 more retailers that may be subject to the law but are not in the program or have not implemented another means for collecting and recycling batteries. Auditors checked with 72 of them and found a large majority (69%) did not have collection bins for consumers.

Because it is not checking to see if manufacturers and retailers are following the law, DEC has not issued a single fine or penalty since the law was passed. Violators of the law can face penalties of $50 to $200 for consumers, $200 to $500 for retailers, and $2,000 to $5,000 for manufacturers.

DEC is required under the law to analyze the information it gets from C2R, and its own monitoring efforts, and submit a report every two years to the Legislature and the Executive. It has never submitted a report.

Rechargeable battery usage will continue to grow, including those powering electric vehicles, not covered by the law. A law passed in September 2021 requires that by 2035 all new cars and trucks sold in New York have zero emissions. Rechargeable vehicle batteries pose the same threats to the environment and individuals’ health as the batteries that are required to be recycled under the law. The rising use of the batteries increases the urgency that DEC uphold its responsibilities under the law and demonstrate strong oversight of recycling.

DiNapoli’s audit recommended that DEC monitor, enforce and promote the recycling law and that it submit the biennial reports called for in the law.

In its response, the agency cited lack of resources for its failure to monitor or enforce the law. In 2018, it reported seven employees spent 7% of their time on oversight of rechargeable battery recycling, falling to five employees spending 2% of their time as of August 2021. The employees are also charged with overseeing proper disposal of electronic waste, mercury products and toxins in packaging. The agency’s full response is in the audit.

Report

Department of Environmental Conservation, Oversight and Enforcement of the Rechargeable Battery Law