Comptroller Lander Investigation Finds City Must Bolster Key Emergency Response Infrastructure & Communications Before Next Major Storm

 

While City agencies began to improve monitoring & community engagement after Hurricane Ida, Tropical Storm Ophelia revealed major gaps in preparedness and response

Comptroller’s findings include: 2/3 of City’s catch basin cleaning trucks were out of service when the storm hit; only 2.7% of New Yorkers 16+ received NotifyNYC alerts; the Mayor had yet to appoint an Extreme Weather Coordinator

Seven months after Tropical Storm Ophelia inundated New York City with over eight inches of rain, Comptroller Brad Lander released findings of his office’s investigation into the City’s handling of the storm, along with key recommendations for New York City agencies to better prepare for extreme weather and flooding conditions. The investigation, Is New York City Ready for Rain?, analyzed the City’s storm operations, interagency coordination, emergency communications to the public, community preparedness, and storm water infrastructure improvements.  

“Extreme storms are coming more frequently, so New York City must do the work to be more prepared for them,” said New York City Comptroller Brad Lander. “That means modernizing our catch basins, making sure the cleaning trucks are in service, and notifying New Yorkers—especially the most vulnerable—more swiftly before the next storm hits. And it means focusing capital process reforms and leadership attention on stormwater infrastructure improvements, so those projects don’t languish for decades while the climate crisis moves faster than we do.”   

“New York City’s state of preparedness is only as good as its physical and social infrastructure. Sadly, the woefully low number of NotifyNYC subscribers, out-of-order catch basin cleaning trucks, and emergency sewer repairs indicate that we’re already behind the tide of the next extreme rainfall event. New Yorkers will be safer if we’re able to better manage and communicate how the City is handling weather emergencies,” said Louise Yeung, Chief Climate Officer for the New York City Comptroller. 

On September 29, 2023, New York City experienced 8.65 inches of total rainfall as a result of the storm—at its peak, exceeding 3 inches per hour in parts of Brooklyn. The heaviest rains persisted for over an hour in southern Brooklyn and along the East River from DUMBO, through the Lower East Side, up through Astoria and East Harlem. Real-time sensors—many of which had been added by NYC Department of Environmental Protection (DEP) in recent years as part of its storm preparation—recorded more than 24 inches of flooding in Gowanus, south Williamsburg, and Midland Beach, while parts of Southern Queens and coastal Staten Island saw significant flooding despite not receiving intense rainfall, pointing to the inadequacy of existing stormwater infrastructure.  

The Fire Department rescued 11 people, including four from basement units. Mercifully, no New Yorkers were killed by this storm, unlike Hurricane Ida, in which 13 New Yorkers died. Woodhull Hospital had to be fully evacuated after flooding required disconnecting the electricity. Flooding occurred at 45 subway stations and eight yards; the MTA suspended or saw severe disruptions to 11 subway lines, Metro-North services, and parts of the LIRR Far Rockaway and Long Island Branch lines while NYC Transit pumped four million gallons of water out of the subway system. The Major Deegan Expressway, FDR Drive, Grand Central Parkway, Belt Parkway, and 4th Ave in Brooklyn were shut down; flooded portions of the Cross Island Parkway caused vehicles to be stuck, and the overflow Bronx River flooded the Bronx River Parkway until 6:30 am the following morning. 

In the wake of Hurricane Ida in 2021, the City enacted three plans for extreme rainfall events: The New Normal, Rainfall Ready, and Ida Action Plan. These plans detail the City’s commitments to improve communications, operations, planning, and infrastructure to manage heavy rain. Comptroller Lander’s investigation probed how well the City implemented these commitments in its preparation for and response to Ophelia.  

The investigation comes as a new survey from Citizens Budget Commission shows plummeting confidence in how the City prepares for an emergency. Comptroller Lander investigation’s key findings include: 

Storm Operations  

• Nearly two-thirds of the City’s catch basin cleaning trucks were out of service during the storm, leaving only 19 trucks to clean catch basins across all five boroughs. Catch basin cleaning is one of the City’s best tools to prevent localized flooding before heavy rains, yet DEP only had 19-out-of-51 trucks— which DEP operates but DSNY maintains—available to clean priority catch basins across the city at the time of the storm. 

Interagency Storm Coordination  

• Mayor Adams had not appointed an Extreme Weather Coordinator when Tropical Storm Ophelia hit more than 18 months into his term. Six months later, in March 2024, City Hall informed the Comptroller’s office that this role has been assigned to Camille Joseph Varlack, Chief of Staff to the Mayor. 

Emergency Communications to the Public  

• Broad and high-profile public communications only picked up after flash flooding already began to impact commutes, homes, and critical facilities. The Mayor’s first press conference occurred on September 29 at 11:40 am, nearly three hours after heavy rains and flooding began. NYCHA’s robocalls occurred at 4:45 pm, 9 hours after the flooding was well underway. NYC Public Schools first posted on X (formerly known as Twitter) at 12:35 pm and only updated its website with guidance on school dismissal and after-school activities at 2:30 pm when many schools already dismissed students.
• Only 2.7% of New Yorkers over 16 years old received NotifyNYC emergency alerts for the flash flooding on September 29. NotifyNYC is the City’s primary way to broadcast emergency notifications but is an opt-in service and the vast majority of New Yorkers have not enrolled.
• New York City Emergency Management’s (NYCEM) new basement notification list only includes 2,378 subscribers, less than 1% of the estimated number of basement residents in NYC. People who live in basement apartments are especially vulnerable to flash floods and especially hard-to-reach because many speak languages other than English and their basement apartments are not formally permitted.  

Stormwater Infrastructure Improvements  

• DEP can install new catch basin designs that would reduce the time and labor to clean catch basins, for a modest $22.5 million. Catch basin inspections and cleanings before and during a storm requires substantial lead time and labor. DEP has identified new modern street grate designs that, if installed at key locations, would reduce clogging from trash and debris and thereby reducing the labor and time needed to clean catch basins.
• More than 60% of the City’s stormwater infrastructure projects are behind schedule, with an average delay of nearly two years, and 69% of projects are over-budget, with an average budget overrun of 310%.
• DEP’s 10-year capital plan includes $875 million for emergency reconstruction of sewers across 66 projects—more than 8% of DEP’s capital budget. While DEP prudently budgets for emergency repairs, this level of emergency sewer repairs indicates the sewer system is far from a state of good repair.

The Comptroller’s review also noted positive storm preparedness steps that the City took in advance of Tropical Storm Ophelia:

• The City began monitoring Tropical Storm Ophelia a week in advance, and NYCEM proactively activated the emergency flash flood plan at 8:30 am the day before. Once activated, NYCEM initiated coordination calls with key operational and first responder agencies.
• DEP incorporated many new data sources to identify where flooding is happening in real-time and to inform priority catch basin inspections and cleaning with flood sensor data, 311 flooding complaints, field reports from other agencies, video feed from DOT’s live traffic cameras, and social media posts to paint a more comprehensive picture of flooding issues. 

• For the first time, NYCEM paid community networks, who are more effective at connecting with hard-to-reach New Yorkers, to amplify emergency notifications. NYCEM funded 20 partners in its Strengthening Communities Program on average $3,915 to share emergency alerts with their networks. In total, this effort resulted in over 800 phone calls, 169 emails to 58,625 recipients, and 381 text messages to 13,216 recipients. However, NYCEM activated these community groups at 10 am, after heavy rains began.  
• DEP held flood preparedness events to distribute 4,000 flood barriers, 7,500 rain barrels, 500 sump pumps, and 500 flood sensors in flood-prone neighborhoods. The City also partially restarted FloodHelpNY, a program intended to provide education, resiliency audits, financial counseling, and retrofit assistance for homeowners after a storm.

The Comptroller’s Office made 11 recommendations as a result of its investigation: 

1. The City should expand emergency communications beyond the limited number of New Yorkers who currently receive NotifyNYC and communicate flood risks to the public earlier.
2. NYCEM should expand Strengthening Communities to reach more diverse at-risk New Yorkers.
3. NYCEM should establish baseline funding for annual emergency activations of community networks.
4. NYCEM should formalize the role of community-led emergency canvassing into City’s emergency protocols.
5. DEP should replace its aging catch basin cleaning trucks and take over maintenance of its catch basin cleaning truck fleet from DSNY and establish new protocols to ensure that trucks are well-maintained to be deployed whenever a storm hits.
6. DEP should be funded to retrofit catch basin across the city with new modern designs that reduce clogging.
7. MTA, DOT, and DEP should dramatically expand subway flood protection improvements.
8. DEP should improve stormwater infrastructure assessments to maintain a state of good repair.
9. The State legislature should greenlight capital process reforms proposed by the Adams Administration to pick up the pace of completing stormwater projects, including state legislation to authorize New York City the ability to utilize proven alternative delivery methods for its infrastructure projects.
10. The Adams Administration should improve the City’s Capital Project Dashboard and use it as a tool to better manage stormwater capital project delivery. 
11. The City should develop a shared interagency tracking and data sharing tool to better coordinate storm operations.  

“As Tropical Storm Ophelia reminded us, low-income communities of color across New York City are on the frontlines of climate disasters—often seeing their homes, subways, and streets inundated by extreme rain,” said Eddie Bautista, Executive Director of the New York City Environmental Justice Alliance. “As this investigation demonstrated, environmental justice communities are often the last to be informed of an oncoming emergency. The City must bolster the safety and resiliency of frontline communities as climate change-fueled storms continue to intensify.” 

“The flash floods last fall remind us of the growing risks that basement residents face from climate change,” said Annetta Seecharran, Executive Director of Chhaya Community Development Corporation. “The Comptroller’s investigation shows us just how little progress the City has made to reach basement residents in these emergencies, leaving New Yorkers to fend for themselves. At a time when climate change is threatening affordable housing across the city, we need better protections for New Yorkers now so that no more lives or homes are washed away.” 

View the report Is New York City Ready for Rain? here. 

BRONX MAN INDICTED FOR SHOOTING 2-YEAR-OLD ON FORDHAM ROAD

 

Defendant Fired 5 Shots Across Bustling Street in Broad Daylight

Bronx District Attorney Darcel D. Clark announced that a Bronx man was indicted for Attempted Murder in the second degree and additional charges for firing a gun multiple times at an intended target, instead striking a 2-year-old boy in the back as he walked with his mother. 

District Attorney Clark said, “Fordham Road is arguably the busiest shopping district in the Bronx. The defendant allegedly fired a gun amid shoppers and pedestrians, on Saturday afternoon before Easter, showing a complete lack of concern for the lives of others. A bullet struck a little boy the day before his third birthday. Fortunately, the child survived this traumatic incident.” 

District Attorney Clark said Freddy Flores, 20, last of 2386 Walton Avenue, has been indicted on Attempted Murder in the second degree, Attempted Assault in the first degree, second-degree Assault, Attempted Assault in the second degree, first-degree Criminal Use of a Firearm, second-degree Criminal Use of a Firearm, two counts of second-degree Criminal Possession of a Weapon, Criminal Possession of a Firearm, first-degree Reckless Endangerment, and second-degree Reckless Endangerment. He was arraigned today before Bronx Supreme Court Justice Brenda Rivera. Bail was set at $50,00 cash, $150,000 bond, and $150,000 partially secured bond at 10%. The defendant is due back in court on July 17, 2024. 

According to the investigation, on Saturday, March 30, 2024, at approximately 1:42 p.m., the defendant allegedly shot at an individual on Fordham Road. Flores allegedly fired his gun approximately five times, in the midst of a street and sidewalks crowded with pedestrians and vehicular traffic. One of the bullets struck a 2-year-old boy on his lower back as he was walking on the opposite sidewalk with his mother. He was treated at New York Health + Hospitals Jacobi for his injuries.

District Attorney Clark also thanked NYPD Detective Ryan Lawrence of the 52 Precinct Detective Squad for his work on the case.

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

Governor Hochul and Advocates Celebrate Landmark Agreement to Address New York’s Housing Crisis

Establishes Wide-Ranging Plan to Increase New York’s Housing Supply – Including Incentives that Create Affordable Housing Statewide, Tools for New York City to Generate More Housing, $500 Million to Build Up to 15,000 New Homes on State Land and Authority to Further Strengthen New York’s Pro-Housing Communities Program

Includes Historic Protections for Tenants and Homeowners, Anti-Price Gouging Measures for Renters, Stronger Protections from Evictions, and New Enforcement and Preventative Measures to Protect Homeowners from Deed Theft, and Reinforces Law that Squatters Are Not Tenants

Adds More Than $600 Million in Capital Funding to Support Housing Statewide

Combats Housing Discrimination Against Section 8 Voucher Recipients and Affordable Housing Providers

Builds on Governor Hochul’s Commitment to Reducing Housing Costs for New Yorkers by Increasing the Housing Supply, Promoting Affordability, and Supporting Renters and Homeowners

Governor Kathy Hochul today gathered Senate Majority Leader Andrea Stewart-Cousins, New York City Mayor Eric Adams, as well as labor, housing, and tenant advocates, to celebrate an historic agreement as part of the FY 2025 Enacted Budget to address New York’s housing crisis. The agreement advances policies to increase the housing supply, promote affordability, strengthen protections for New York renters and homeowners, and combat bias and discrimination in housing. The actions build on Governor Hochul’s commitment to tackling the housing crisis and reducing housing costs for all New Yorkers.

"Since I became Governor, I've held a vision to build housing that New Yorkers desperately need, and we're celebrating this historic agreement that will transform lives and put working families first," Governor Hochul said. “This housing deal enacts a plan endorsed by unions and a diverse and vibrant coalition of New Yorkers to revolutionize the housing landscape and create the biggest expansion of tenant rights in New York in generations."

Increasing New York’s Housing Supply

As part of the FY 2025 Enacted Budget, Governor Hochul has secured a package of programs and initiatives to create new housing, including affordable housing, in New York City. The Budget includes the new 485-x tax incentive, a ten-year program building on the now-expired 421-a incentive program, which provides benefits for housing construction while encouraging affordability and delivering strengthened wage standards for building service and construction workers, where applicable. According to estimates, the 421-a program produced more than two-thirds of all newly constructed multifamily housing in the City in the last decade.

The Budget also extends the construction deadline for projects currently vested in the expired 421-a program through 2031, ensuring thousands of previously at-risk rental units, including affordable housing, can be built. In addition, the Budget establishes a new tax incentive for commercial conversion projects that include affordable housing, grants the authority to lift state restrictions on residential density in New York City for the first time since the 1960s while requiring affordability, and authorizes the City to create a pilot program to provide amnesty to existing basement and cellar apartments that meet health and safety standards to be set by the City in certain New York City neighborhoods.

For localities outside of New York City, the Budget includes an opt-in tax incentive program for mixed-income and 100 percent affordable new construction or conversion multifamily rental projects, and an incentive to create accessory dwelling units (ADUs). The Budget also requires the State’s Fire Prevention and Building Code Council to study ways to amend the code to facilitate alternative forms of multi-family housing.

Governor Hochul has also secured funding for a $500 million capital fund to develop up to 15,000 units of housing on state sites across New York. The Governor announced the Redevelopment of Underutilized Sites for Housing initiative in her 2024 State of the State after signing an executive order last year requiring all state agencies to examine properties within their control to determine their housing potential. Sites will become available on an individual basis as the state issues requests for proposals to develop them.

In addition, Governor Hochul has reached an agreement to strengthen New York’s Pro-Housing Communities program by enabling the State to make the Pro-Housing Communities certification a requirement to receive up to $650 million in state discretionary funding. The Governor announced the Pro-Housing Communities Program last year as part of a package of Executive Actions to increase New York’s housing supply to recognize and reward municipalities actively working to unlock their housing potential and encourage others to follow suit. To date, 179 localities have launched applications to become Pro-Housing Communities and 49 communities have been certified.

The FY 2025 Enacted Budget will further take action to help bring vacant apartments back on the rental market by raising the cap on individual apartment improvements for rent stabilized units. New requirements to the system will allow owners to recoup a reasonable portion of renovation costs over a 15-year period, which will help maintain the supply of safe, modernized rent stabilized units. The Budget also provides $40 million in capital to assist bringing back online vacant apartments in need of repair outside of New York City.

Strengthening Protections for Tenants and Homeowners

Governor Hochul has also secured historic anti-price gouging and eviction protections for New York renters as part of the FY 2025 Enacted Budget. The Budget makes annual rent increases above ten percent or five percent plus the Consumer Price Index (whichever is lower) presumptively unreasonable to protect tenants against price gouging and strengthens legal protections for covered renters in eviction proceedings, where applicable. These protections will be mandatory in New York City; municipalities outside of New York City will have the ability to opt-in to the program. Separately, Governor Hochul reached an agreement to reinforce existing law to make clear that squatters are not tenants, and thus are not entitled to these and other tenant protections.

In addition, the Governor has strengthened protections for homeowners against deed theft by creating a clear definition of the crime of deed theft in the larceny statute and by limiting the ability of predatory investors to acquire interests in inherited property and to pressure homeowners into selling their family homes. These protections will help enhance enforcement and keep New Yorkers in their homes. To further prevent loss, the Governor has introduced a Transfer on Death Deed, which will enable homeowners to be certain their home will be protected after their passing, without the necessity of drafting a formal will.

Combatting Bias and Discrimination in Housing

As part of the FY 2025 Enacted Budget, Governor Hochul has also advanced legislation to prohibit insurance carriers from inquiring about or considering tenants' source of income, the existence of affordable dwelling units, or the receipt of governmental housing assistance in the decision to issue or continue to provide insurance for residential real property. This new legislation will help ensure affordable housing providers have access to reasonably-priced insurance, which in turn will help avoid rent increases on tenants.

The Governor will also establish a new enforcement unit dedicated to swift resolution of complaints about housing discrimination related to Section 8 Housing Choice Vouchers, helping to place impacted individuals and families in available housing to which they had been impermissibly denied access based on their vouchers.

Additional Capital Investments

In addition to advancing major policy actions, the FY 2025 Enacted Budget also includes more than $600 million in capital funding to support housing statewide, including but not limited to:

• $150 million for New York Housing for the Future to subsidize construction of cooperative rental and cooperative homeownership 100% affordable housing.
• $140 million for capital improvements of New York City Housing Authority developments.
• $80 million for capital improvements for Mitchell-Lamas.
• $75 million for capital improvements of public housing authorities outside of New York City.
• $50 million for Land Banks to redevelop blighted or abandoned properties.
• $40 million for capital awards to upgrade vacant rental units outside of New York City.
• $40 million for Infill Housing to fund development of small homes within unused and underutilized lands with existing development patterns.
• $10 million for capital improvements of rural housing subsidized by the Federal USDA 515 program.
• $25.5 million in other one-time capital assistance projects.

New York City Mayor Eric Adams said, “When we came into office two years ago, we had a mission: protect public safety, rebuild our economy, and make this city more livable for hardworking New Yorkers. Making our city more livable means building more affordable housing for more people. We are proud of our administration's progress on building a record number of affordable homes last year, and thanks to Governor Hochul and our partners in Albany, we can now go even further. We had one simple message for our partners in Albany: let us build — and they listened. With this new set of proposals slated to become law, including all of our legislative priorities, we can do just that and begin to build ourselves out of this housing crisis.”

Governor Hochul’s Housing Agenda

The FY 2025 Enacted Budget builds on Governor Hochul’s commitment to addressing New York’s housing crisis to make the state more affordable and more livable for all New Yorkers. As part of the FY 2023 Budget, the Governor announced a five-year, $25 billion Housing Plan, to create and preserve 100,000 affordable homes. More than 40,000 homes have been built to date.

 

Justice Department Charges Four Iranian Nationals for Multi-Year Cyber Campaign Targeting U.S. Companies

 

During the Course of the Conspiracy, One Defendant Also Worked for an IRGC Electronic Warfare and Cyber Defense Unit

An indictment was unsealed today in Manhattan federal court charging Iranian nationals Hossein Harooni (حسین هارونی), Reza Kazemifar (رضا کاظمی فر), Komeil Baradaran Salmani (کمیل برادران سلمانی), and Alireza Shafie Nasab (علیرضا شفیعی نسب) for their involvement in a cyber-enabled campaign to compromise U.S. government and private entities, including the U.S. Departments of Treasury and State, defense contractors, and two New York-based companies. Nasab was charged for the same conduct in a previous indictment that was unsealed on Feb. 29. The defendants remain at large.

Concurrent with today’s unsealing, the U.S. Department of State’s Rewards for Justice program (RFJ) is offering a reward of up to $10 million for information leading to the identification or location of the group and the defendants. The RFJ program seeks information on any person who, while acting at the direction or under the control of a foreign government, engages in certain malicious cyber activities in violation of the Computer Fraud and Abuse Act (CFAA). Additionally, the Treasury Department announced sanctions against the four defendants, among other malicious cyber actors.

“Criminal activity originating from Iran poses a grave threat to America’s national security and economic stability,” said Attorney General Merrick B. Garland. “These defendants are alleged to have engaged in a coordinated, multi-year hacking campaign from Iran targeting more than a dozen American companies and the U.S. Treasury and State Departments. This case represents just one part of the U.S. government’s effort to counter the range of threats originating from Iran that endanger the American people.”

“The FBI is constantly working to detect and counter cyber campaigns like the one described in today’s indictment. From enabling lethal plots and repressing our citizens and residents to targeting our critical infrastructure, we’ve often seen the trail of dangerous cyber-criminal activity lead back to Iran,” said FBI Director Christopher Wray. “Today’s announcement demonstrates the FBI’s commitment to using every lawful tool at our disposal, together with our domestic and international partners, to disrupt the threats posed from Iran to American businesses and citizens.”

“Today’s charges pull back the curtain on an Iran-based company that purported to provide ‘cybersecurity services’ while in actuality scheming to compromise U.S. private and public sector computer systems, including through spearphishing and social engineering attacks,” said Assistant Attorney General Matthew G. Olsen of the Department of Justice’s National Security Division. “The Department is committed to using a whole of government approach to disrupt such malicious activities and impose consequences on the individuals that carry them out.  Employees that continue to work at these companies risk arrest and prosecution or a lifetime as an international fugitive from justice.”  

“As alleged, the defendants participated in a cyber campaign using spearphishing and other hacking techniques in an attempt to compromise private companies with access to defense-related information,” said U.S. Attorney Damian Williams for the Southern District of New York. “Cyber intrusion schemes such as the one alleged threaten our national security, and I’m proud of our law enforcement partners and the career prosecutors of this office for continuing to use innovative technologies and investigative measures to disrupt and track down these cybercriminals. If you have information leading to the to the identification or location of Harooni, Kazemifar, Salmani, or Nasab, please reach out to the Department of State at rewardsforjustice.net.”

According to court documents, from at least in or about 2016 through at least in or about April 2021, Harooni, Kazemifar, Salmani, Nasab, and other conspirators were members of a hacking organization that participated in a coordinated multi-year campaign to conduct and attempt to conduct computer intrusions. These intrusions targeted more than a dozen U.S. companies and the U.S. Departments of Treasury and State.

During the conspiracy, Kazemifar, Salmani, and Nasab were employed by Mahak Rayan Afraz (محک رایان افراز), an Iran-based company that purported to provide cybersecurity services, but which was, in fact, a front for the conspirators’ operations.

The hacking group’s private sector victims were primarily cleared defense contractors, which are companies that have been granted security clearances by the U.S. Department of Defense to access, receive, and store classified information for the purpose of conducting activities in support of U.S. Department of Defense programs. In addition, the group targeted a New York-based accounting firm and a New York-based hospitality company.

In conducting their hacking campaigns, the group used spearphishing — tricking an email recipient into clicking on a malicious link — to infect victim computers with malware. During their campaigns against one victim, the group compromised more than 200,000 employee accounts. In another campaign, the conspirators targeted 2,000 employee accounts. In order to manage their spearphishing operations, the group created and used a particular computer application that enabled the conspirators to organize and deploy their spearphishing attacks.

In the course of these spearphishing attacks, the conspirators compromised an administrator email account belonging to a defense contractor (Defense Contractor-1). Access to this administrator account empowered the conspirators to create unauthorized Defense Contractor-1 accounts, which the conspirators then used to send spearphishing campaigns to employees of a different defense contractor and a consulting firm.

In addition to spearphishing, the conspirators utilized social engineering, which involved impersonating others, generally women, to obtain the confidence of victims. These social engineering contacts were another means the conspiracy used to deploy malware onto victim computers and compromise those devices and accounts.

Kazemifar was responsible for testing the tools utilized by the conspiracy to execute its cyber campaigns. For example, Kazemifar was involved in testing spearphishing emails used to target victim companies and was involved in developing malware utilized by the conspiracy in social engineering initiatives. During the course of his involvement in the conspiracy, from at least in or about 2014 through at least in or about 2020, Kazemifar also worked for the Iranian Organization for Electronic Warfare and Cyber Defense (EWCD). EWCD is a component of the Islamic Revolutionary Guard Corps (IRGC), which is itself a component of the Iranian Armed Forces. Among other things, the IRGC is responsible for Iran’s offensive cyber capabilities. The United States has designated the IRGC as a foreign terrorist organization.

Harooni was responsible for procuring, administering, and managing the online network infrastructure, including computer servers and customized software used to facilitate the computer intrusions. Harooni also fraudulently used the identity of a real person (Individual-1), including his use of a copy of Individual-1’s true passport, to conceal his role in procuring online infrastructure used by the conspiracy to facilitate the computer intrusion campaign.

Salmani was responsible for testing tools utilized by the conspiracy to execute spearphishing campaigns, including the campaign against a hospitality company. Salmani was also involved in maintaining infrastructure used by the conspirators.

Nasab was responsible for procuring infrastructure used by the conspiracy, particularly infrastructure used in furtherance of social engineering campaigns. Nasab also used Individual-1’s identity, including Individual-1’s name and passport, to register server and email accounts that were used during malicious cyber campaigns.           

The defendants are each charged with conspiracy to commit computer fraud, conspiracy to commit wire fraud, and wire fraud. If convicted, they face up to five years in prison for the computer fraud conspiracy, and up to 20 years in prison for each count of wire fraud and conspiracy to commit wire fraud. Harooni is additionally charged with knowingly damaging a protected computer, which carries a maximum penalty of 10 years in prison. Harooni, Salamani, and Nasab are additionally charged with aggravated identity theft, which carries a mandatory consecutive term of two years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Cyber Division is investigating the case.

Assistant U.S. Attorneys Ryan B. Finkel, Dina McLeod, and Daniel G. Nessim for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Matthew Chang of the National Security Division’s National Security Cyber Section.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

City Employee Pleads Guilty To Check Theft Scheme

 

Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced that BRANDON SANTANOO, an employee of the New York City Law Department (the “Law Department”), pled guilty to conspiracy to commit bank fraud in connection with his participation in a scheme to steal checks mailed to the Law Department and then to deposit or attempt to deposit forged, altered, and fraudulently endorsed versions of those checks into bank accounts not associated with the Law Department.  SANTANOO pled guilty before U.S. Magistrate Judge Jennifer E. Willis. 

U.S. Attorney Damian Williams said: “Brandon Santanoo abused his position of trust as a city employee.  As he admitted in federal court, he stole hundreds of thousands of dollars’ worth of checks made payable to the Law Department and passed them along to others to fraudulently deposit.  We will not tolerate any breach of trust or corruption within city agencies.” 

DOI Commissioner Jocelyn E. Strauber said: “Brandon Santanoo used his position at the City Law Department to steal approximately 40 checks payable to the City – and valued at approximately $600,000 – and then handed them out to acquaintances to forge, alter, or fraudulently endorse the checks and then deposit into private bank accounts.  I thank the Law Department for the referral to DOI that prompted this investigation and our law enforcement partners in the United States Attorney’s Office for the Southern District of New York for their commitment to hold accountable City employees who exploit their access to engage in criminal conduct, and to protect valuable City resources from theft.”

According to the allegations in the Information and the Complaint, the plea agreement, and statements made in court:

Beginning in 2017, SANTANOO worked as a clerk in the mail room at the Law Department’s office in Brooklyn.  By virtue of his position, SANTANOO had access to mail that was sent to the Law Department. 

From at least in or about June 2021 through at least in or about May 2023, SANTANOO stole checks that had been mailed to the Law Department, including checks made payable to the Law Department’s Worker’s Compensation Division, which is responsible for administering claims of city employees who are injured on the job.  SANTANOO then passed those checks onto other people, who deposited or attempted to deposit forged, altered, and fraudulently endorsed versions of those checks into third parties’ bank accounts.  Approximately 40 checks, totaling approximately $600,000, were stolen and deposited or attempted to be deposited as part of the scheme.

SANTANOO, 27, of Queens Village, New York, pled guilty to one count of conspiracy to commit bank fraud, which carries a maximum potential sentence of 30 years in prison. 

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.  Sentencing is scheduled for September 4, 2024, at 10:00 a.m. before U.S. District Judge Richard M. Berman.

Mr. Williams praised the outstanding investigative work of the DOI.  Mr. Williams also thanked the Special Agents from the U.S. Attorney’s Office for the Southern District of New York for their assistance on this matter.