Pharmacy Owner And Money Launderer Plead Guilty To Multiple Fraud Schemes

 

Nerik Ilyayev and Mukhiddin Kadirov’s Schemes Included HIV Medication Fraud, No-Fault Automobile Insurance Fraud, and Money Laundering

Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty pleas of NERIK ILYAYEV and MUKHIDDIN KADIROV for their respective roles in HIV medication fraud, no-fault automobile insurance fraud, and money laundering schemes totaling over $6 million.  ILYAYEV pled guilty to conspiracy to commit healthcare fraud for using two different pharmacies to defraud Medicare and Medicaid in connection with HIV medication claims and to defraud no-fault automobile insurance providers in connection with other medication claims.  KADIROV laundered several million dollars in fraud proceeds in connection with the HIV fraud scheme.  ILYAYEV and KADIROV pled guilty today before U.S. District Judge Gregory H. Woods.  

U.S. Attorney Damian Williams said: “Nerik Ilyayev brazenly defrauded Medicare and Medicaid and New York’s no-fault automobile insurance providers of over $6 million.  To execute his schemes, Ilyayev sourced pharmaceuticals from illegitimate sources and worked with others to pay kickbacks to low-income individuals.  Mukhiddin Kadirov facilitated the Medicare and Medicaid fraud by laundering millions in crime proceeds through shell companies.  Both Ilyayev and Kadirov went to great lengths to conceal their role in these crimes, including using the identities of other people.  Ilyayev and Kadirov will now pay for their crimes, and this Office will not stop pursuing those who seek to profit by defrauding our healthcare system.”    

According to the Complaint, Information, and statements made in open court:

From approximately February 2021 through March 2022, ILYAYEV owned and operated a pharmacy in Manhattan (“Pharmacy-1”).  ILYAYEV used Pharmacy-1 to pay illegal kickbacks to low-income HIV patients to recruit them to fill prescriptions for expensive HIV medications at Pharmacy-1 and to obtain HIV medications from unlawful sources.  ILYAYEV, on behalf of Pharmacy-1, then submitted fraudulent insurance claims to Medicare and Medicaid to cover the cost of the HIV medications.  In order to conceal his role in the fraud scheme, ILYAYEV used the identity of another person (“Individual-1”) and pretended to be Individual-1 to own and operate Pharmacy-1 using Individual-1’s identity.  Medicare and Medicaid collectively paid approximately $5.2 million in fraudulent claims for HIV medications to Pharmacy-1.      

After shutting down Pharmacy-1, ILYAYEV took control of another pharmacy in Queens, New York (“Pharmacy-2”).  Again, to conceal his role in the fraud, ILYAYEV used the identity of another person (“Individual-3”) and pretended to be Individual-3 to own and operate Pharmacy-2.  Pharmacy-2 submitted fraudulent insurance claims to no-fault automobile insurance providers.  Pharmacy-2 defrauded the no-fault automobile insurance providers of approximately $1.2 million.  In addition, Pharmacy-2 unlawfully sold pharmaceuticals to other pharmacies that ILYAYEV had obtained from illegitimate sources.      

KADIROV participated in a money laundering network that primarily launders healthcare fraud proceeds (the “Money Laundering Network”) that the Federal Bureau of Investigation (“FBI”) has been investigating since approximately 2020.  Members of the Money Laundering Network typically deposit checks from healthcare companies that represent healthcare fraud proceeds into New York-based bank accounts held by shell companies.  The shell companies often purport to be wholesale companies and use terms like “wholesale” in the company name to make the check deposits from the healthcare companies appear less suspicious to banks and law enforcement.  The conspirators controlling the shell companies collect cash typically from U.S.-based individuals who want to remit funds, often to Uzbekistan, through unlicensed channels.  The conspirators controlling the shell companies then provide that cash, minus a fee, to the conspirators providing the healthcare checks.  The conspirators controlling the shell companies next typically wire the check deposit proceeds from the shell companies to Chinese or other foreign companies to purchase goods from those foreign companies.  The foreign companies ship the goods to importers in Uzbekistan.  The importers pay the Uzbekistan-based partners of the conspirators operating the shell companies in U.S. Currency for the goods.  Those Uzbekistan-based partners would then give the U.S. currency to the families and friends of the individuals who had provided the cash to the conspirators controlling the shell companies in New York.

As part of his participation in the Money Laundering Network, KADIROV laundered approximately $4.2 million of Pharmacy-1’s fraud proceeds.  KADIROV used three bank accounts in the name of three shell companies that were purportedly wholesale companies (the “Shell Companies”) to launder Pharmacy-1’s fraud proceeds.  The Shell Company bank accounts were opened in the name of another person (“Individual-2”), although KADIROV controlled the bank accounts.  KADIROV took other steps to conceal his role in the money laundering scheme, including using a burner phone in connection with the Shell Company bank accounts, and he concealed his face when using ATMs to conduct transactions using the Shell Company bank accounts.  Pharmacy-1 deposited approximately $4.2 million in checks with the Shell Companies.  Consistent with the operations of the Money Laundering Network, the Shell Companies wired most of the check deposits to companies abroad, including China, Ukraine, and Russia.

ILYAYEV, 36, of Queens, New York, pled guilty to one count of conspiracy to commit healthcare fraud, which carries a maximum potential sentence of 10 years in prison.

KADIROV, 44, of Queens, New York, pled guilty to one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison. 

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

Mr. Williams praised the outstanding investigative work of the FBI and the U.S. Department of Health and Human Services, Office of the Inspector General.  Mr. Williams also thanked the National Insurance Crime Bureau and the Investigations Medicare Drug Integrity Contractor for their assistance in the investigation.

Justice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and Employees

The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals. 

The indictments build on prosecutions announced in June and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States. 

The indictments complement actions taken by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs. 

“We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.” 

“The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of agents and officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.” 

“The charges announced are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.” 

“Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said Drug Enforcement Administration (DEA) Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as one DEA, to defeat the cartels and their entire global supply chain.” 

“This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service (USPIS). “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.” 

The DEA led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the USPIS also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure. 

Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues. 

Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021.  

The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users.  

These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds. 

The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States. 

Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents. 

Middle District of Florida 

Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States. 

According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years.   

“The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.” 

Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao. 

Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf. 

Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu. 

Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful. 

Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering. 

DEA investigated these cases. 

Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases. 

Southern District of Florida 

Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage. 

“Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.”

Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation.  

The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering. 

Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida. 

Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps. 

Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives.  

According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent  methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico. 

Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States. 

The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases.   

Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture. 

The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts. 

The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF. 

Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community. 

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

MAYOR ADAMS’ STATEMENT ON CALLAHAN DECREE COURT FILING

 

New York City Mayor Eric Adams released the following statement after the City of New York filed a revised application in court to modify the 1981 consent decree in Callahan v. Carey related to the city’s Right to Shelter law: 

“In accordance with the judge’s request, our lawyers filed a revised application to seek relief from Callahan. As we have said before, the Callahan decree — entered over 40 years ago, when the shelter population was a fraction of its current size — was never intended to apply to the extraordinary circumstances our city faces today. With more than 122,700 asylum seekers having come through our intake system since the spring of 2022, and projected costs of over $12 billion for three years, it is abundantly clear that the status quo cannot continue. We must be flexible to respond to this crisis effectively and continue to lead with the compassion and care we have consistently shown those arriving here.

“To be very clear, the city is not seeking to terminate Callahan; we are simply asking for the city’s obligations to be aligned with those of the rest of the state during states of emergency. For more than a year now, New York City has shouldered the burden of this national crisis largely alone. We have opened more than 210 emergency sites, have spent more than $2 billion to date, and expect to spend $5 billion by the end of this fiscal year without significant and timely help from our state and federal partners. And throughout this crisis, not a single family with children has been forced to sleep on the streets. But as we have said repeatedly, with upwards of 10,000 asylum seekers continuing to arrive every month, New York City cannot continue to do this alone.”

Community Town Hall Meeting on Illegal Smoke Shops Hosted by Assemblymember John Zaccaro Jr.

Neighbors and Community Partners,

I along with my colleague in the New York City Council will be hosting an important Town Hall meeting to address a growing and critical issue in our community.

Date: Wednesday, October 18th

Time: 6PM - 8PM

Location: Bronx House Community Center ( 990 Pelham Parkway South, BX, NY 10461)

To RSVP and submit questions: click here 

Many of you have voiced concern about the increased number of smoke shops in our community and those who may be circumventing the law through the illegal sale of tobacco and cannabis products. Similarly, many neighbors have contacted my office about cannabis law and the legality of certain proposed cannabis locations that have applied for a license.

This is your time to ask questions and make your voice heard. Please join us on October 18th to hear directly from local officials, the New York City Sheriff's Department, and NYC Department of Consumer and Worker Protection. Together, these agencies are tasked with regulating the businesses that sell tobacco and cannabis products and will be available to field your questions and share their expertise.

For more information about this event and how to participate, please see the flyer below. 

Looking forward to seeing you on October 18th!

Your Neighbor,

John Zaccaro Jr. 

New York State Assemblymember, 80th Assembly District 

Department of City Planning Kicks Off Engagement for Midtown South Mixed-Use Plan

 

First remote public meeting and online survey in this community-focused process will dive into existing conditions and New Yorkers’ vision for this part of Manhattan 

This plan will look to craft strategies to foster more vibrant, 24/7 mixed-use neighborhoods 

Department of City Planning (DCP) Director Dan Garodnick today announced the launch of an online survey and the first remote public meeting for the Midtown South Mixed-Use Plan, an initiative to foster vibrant, 24/7 mixed-use neighborhoods across 42 centrally-located blocks where housing is currently not permitted under today's half century-old zoning rules. Taking place on Tuesday, Oct. 17, at 7 pm, the public info session offers a chance for New Yorkers to learn about and join the conversation on Midtown South’s present conditions and what they hope to see in the future. RSVP here. 

“It's hard to get more centrally-located than Midtown South, an amenity and transit-rich area that is being held back by outdated zoning. It’s time we changed that. Through this process, we’ll aim to transform this area into a 24/7 community that provides homes to a wide range of New Yorkers, a great mix of jobs, and updated amenities. But we’ll only succeed with your input. I encourage everyone to get involved in shaping a brighter future for this neighborhood,” said Dan Garodnick, Director of the Department of City Planning.  

“The Midtown South Mixed-Use Plan will not only build housing that our city desperately needs, but it will also reinvigorate some of Manhattan’s most central, opportunity-rich neighborhoods, building on their dynamic possibility,” said Manhattan Borough President Mark Levine. “I’m grateful to the Department of City Planning for not only taking a look at the zoning regulations in the area, but for thinking more comprehensively about issues like housing, businesses, and the public realm. And to top it off, DCP is starting their public engagement process early. I encourage New Yorkers to share their thoughts and help shape the future of Midtown South by joining public information sessions and taking the online survey.” 

“The Midtown South Mixed-Use Plan presents a tremendous opportunity to rejuvenate neighborhoods and provide another desperately needed solution to our housing crisis. Borough President Levine, Council Member Bottcher, and I are grateful for the chance to work on an innovative project like this that will hopefully help bring new life back into areas we represent. I am excited to begin the engagement process and look forward to hearing feedback from my constituents,” said City Council Majority Leader Keith Powers. 

“We need to take a hard look at neighborhoods that don’t allow any residential uses, because this presents the opportunity to create more desperately needed affordable housing in Manhattan. Given the reduction in office use, it is common sense that we look to convert these buildings into housing wherever possible. I look forward to working closely with the Department of City Planning, Community Boards 5 and 4 and my colleagues in government to assure that we get this rezoning right and ensure a prosperous, livable Midtown,” said Council Member Erik Bottcher. 

The interactive online survey contains questions for New Yorkers to answer about their connection to Midtown South, what they most like about their community today, what their priorities are for the future of these neighborhoods, how DCP can best share information on this process, and more. This information will help to shape the study and planning process over the coming months. Those who live, work, play, shop, own property or are patrons of Midtown South are encouraged to complete the survey, which will remain open through the end of the year. 

During this remote public meeting, DCP will connect with existing residents, local organizations, Business Improvement Districts, small businesses, community board members, and others to learn about their priorities for Midtown South. DCP will also provide more information on land use rules as well as existing businesses and services. The meeting will go over the study’s timeline as well as details on how attendees can remain engaged. There will be ample opportunities for public comments and questions at the event. 

“The Garment District Alliance fully supports the goals of the proposed Midtown South Mixed-Use Plan and we applaud Mayor Adams for initiating this process. Creating opportunities for residential conversions in neighborhoods like the Garment District will help to alleviate the city’s housing crisis and lead to revitalization in areas that have been impacted the most by the pandemic. We eagerly await the Garment District’s transformation into a 24/7 neighborhood where people can work, visit, and live,” said Barbara A. Blair, president of the Garment District Alliance. 

“We look forward to the Midtown South Mixed-Use Plan and believe it is critical that there is thoughtful input from a wide range of stakeholders through this public engagement process,” said James Mettham, President, Flatiron NoMad Partnership. “By updating antiquated zoning regulations, the plan can create opportunities to build desperately needed housing and catalyze a further mix of uses, spaces, and experiences that make Flatiron and NoMad an epicenter of possibilities in a ‘New’ New York.” 

Midtown South is home to over 7,000 businesses and contains over 135,000 jobs, enjoying great access to transit and proximity to Midtown Manhattan. While the neighborhood has a strong base, it does face the challenges of changing work patterns, including companies switching to hybrid or remote work formats, and an aging building stock, with 89% of them constructed before 1961. Current zoning rules also generally do not permit housing in this area, preventing New Yorkers from living close to jobs and stymieing new models of work such as live/work. The study area’s general boundaries are West 40th Street to the north, West 23rd Street to the south, Fifth Avenue to the east, and Eighth Avenue to the west. 

The Midtown South Mixed-Use Plan aims to expand housing opportunities, including affordable housing, bolster critical economic activity, and enliven the area’s public realm. Together, these goals will help to ensure the neighborhood’s long-term success.  

This kickoff event will be followed by more opportunities for New Yorkers to get involved this fall and into next year.  

Department of City Planning

The Department of City Planning (DCP) plans for the strategic growth and development of the City through ground-up planning with communities, the development of land use policies and zoning regulations applicable citywide, and its contribution to the preparation of the City’s 10-year Capital Strategy. DCP promotes housing production and affordability, fosters economic development and coordinated investments in infrastructure and services, and supports resilient, sustainable communities across the five boroughs for a more equitable New York City. 

In addition, DCP supports the City Planning Commission in its annual review of approximately 450 land use applications for a variety of discretionary approvals. The Department also assists both government agencies and the public by advising on strategic and capital planning and providing policy analysis, technical assistance and data relating to housing, transportation, community facilities, demography, zoning, urban design, waterfront areas and public open space. 

MAYOR ADAMS, GOVERNOR HOCHUL ANNOUNCE $38 MILLION FOR ASYLUM SEEKER LEGAL SERVICES AND CASE MANAGEMENT

With Eligibility for Temporary Protected Status Expanding Today, State Commits $38 Million in New Funding to Help City Provide Legal Services 

City’s Asylum Application Help Center Has Assisted Over 5,000 Individuals Submit Asylum Applications Already 

New York City Mayor Eric Adams and New York Governor Kathy Hochul today announced more than $38 million in new state funding to bolster the city’s efforts to provide legal services for asylum seekers. The announcement comes on the first day that the federal rule extending Temporary Protected Status (TPS) to Venezuelans who entered the country before July 31, 2023 takes effect. To coincide with the federal rule taking effect today, the city will begin assisting eligible Venezuelan asylum seekers submit their paper applications for TPS and work authorization, in addition to their fee waiver forms at the city’s Asylum Application Help Center, also partially funded by state resources.

  

“Throughout this crisis, New York City has led the nation in answering the call to support arriving asylum seekers, and that work continues again today in partnership with New York State,” said Mayor Adams. “We were proud to lead the call to ‘Let Them Work’ and are grateful that the federal government heard us and has expanded the pathways to work for many of those in the city’s care. With the expansion of Temporary Protected Status taking effect today, our teams are already hard at work helping them apply for work authorization, and this investment from the state will bolster those efforts to help thousands of migrants obtain work and eventually move out of shelter.”

 

“For more than a year, the state and city have worked side-by-side to address the unprecedented humanitarian crisis we’re experiencing,” said Governor Hochul. “After months of coordinated advocacy from New Yorkers, the federal government has made thousands of migrants from Venezuela newly-eligible for Temporary Protected Status. Our job now is to ensure these individuals fill out all the appropriate paperwork so they can attain work authorization, find a job, and exit taxpayer-funded shelter.” 

 

“In just a few months, our Asylum Seeker Application Help Center has assisted thousands of individuals and families complete their federal asylum applications and helping them move one step closer to obtaining work authorization and participating in the American Dream,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “Now, with this investment from the state, we can build on that model, stand up satellite sites across the city to serve even more asylum seekers, and help Venezuelans who recently received TPS from the federal government. Thank you to Governor Hochul and her team for this investment and for answering our call for more support on this national crisis.”

 

“This is a tough crisis to manage but the pathway out of crisis is through work and helping migrants live independently,” said New York State Division of Homeland Security and Emergency Services Commissioner Jackie Bray. “Governor Hochul has been focused on funding and programs to help people leave shelter. This funding doubled down on earlier state funding for legal services, case management, and connections to legal employment.” 

 

In the coming weeks, the city and state will scale efforts at the Asylum Application Help Center, expanding case management and legal services to help more asylum seekers in the city’s care obtain work authorization, stabilize their lives, and provide for themselves so they can move out of shelter.

 

The city and state also plan to partner to expand access to legal and casework services by:  

• Opening additional Application Help Center satellite sites across the city;  
• Launching roving teams within the city’s emergency shelter sites to help asylum seekers apply on the spot for TPS and work authorization; and  
• Scheduling those who enter the shelter system and are eligible for TPS for appointments to immediately apply upon entering the city’s care.  

Since this humanitarian crisis began, New York City has taken fast and urgent action — opening 210 emergency sites, including 17 other large-scale humanitarian relief centers. The city has also stood up navigation centers to connect asylum seekers with critical resources, enrolled thousands of children in public schools through Project Open Arms, and more. Earlier this spring, the city released “The Road Forward: A Blueprint to Address New York City’s Response to the Asylum Seeker Crisis,” detailing how the city will continue to manage the influx of asylum seekers and advocate for support from federal and state partners.

KRVC - Please Support our October Events!

 

We have so many great events coming up in October! Monday Fundays, Book Club, Art Gallery Opening, Community Concert & Art Exhibition, Halloween Events & More! We could use your help. Please DONATE so We Can Produce all These Great Events!

Monday Fundays are Mini-Festivals right in front of our Community Space! October 2, 16, 23

October 4th

Join us for a discussion of

Go Tell It On The Mountain by James Baldwin

A 1953 semi-autobiographical novel tells the story of John Grimes, an intelligent teenager in 1930s Harlem, and his relationship with his family and his church.

October 12

Opening of our next Gallery 505 Exhibit at 7pm

live music and refreshments

Janice DeMarino holds an MFA from Hunter College and taught art in the NYC private sector from 1994 to 2020. The artist is a recipient of awards from the Birch Wathen Lenox School to work on encaustic projects at R & F Handmade Paints in NY, as well as in Anversa Italy. She also received an award to pursue papermaking at Dieu Donne Papermill.  Women’s Studio Workshop granted DeMarino a fellowship to create handmade paper works in their studio facilities in Rosendale, NY. Her work has been exhibited in galleries and independent venues throughout New York. 

 

"My encaustic paintings develop as I paint and as I introduce collage elements. The process, which involves layering oil paints and hot wax, usually takes over. Encaustic paintings have a translucency to them. Sometimes images seem to rise and fall as I create each piece."

Janice DeMarino

October 15th

Join us for an afternoon of live music and fine art in our beautiful Henry Hudson Park

October 28th Halloween fun on Mosholu Avenue

October 31st

Our annual Halloween party at 505BX

Look forward to seeing you!

505BX.org

BFRDC ENDORSES JOE BIDEN FOR RE-ELECTION

 

The Benjamin Franklin Reform Democratic Club (“Club” or "BFRDC") voted on September 28, 2023 to endorse Joseph R. Biden in the Democratic Primary for the 2023 US Presidential election. The club included in their endorsement Kamala Harris for Vice President. Members spoke in support of the move, noting the importance of endorsing and building support for a Democratic candidate now considering that the Democratic Primary for US President is scheduled in New York for April 2, 2024, and petitioning begins on December 12, 2023. 

In her remarks, Club President Virginia Krompinger emphasized the need for all Democrats to continue working to help Democrats running in both the 2023 and 2024 elections. Referring to former president Donald Trump, “We cannot wait to support Democrats in an environment where Republicans are mounting challenges and will support a candidate like him.” She also voiced concern that "the US Constitution does not clearly prohibit a candidate (like Trump) from running for the presidency or serving if elected, even if he is convicted of a crime and jailed." 

Assembly Member Jeffrey Dinowitz said in a communication to Club members, “…it’s clear now more than ever that the future of our democracy is at stake. Literally. Who would have ever thought that this could even be a possibility?”