Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - JULY 28, 2022

 

Governor Encourages New Yorkers to Keep Using the Tools to Protect Against and Treat COVID-19: Vaccines, Boosters, Testing, and Treatment

22 Statewide Deaths Reported Yesterday

 NOTE: Beginning June 24, 2022, the Vaccine data will be updated weekly on Fridays to align with CDC's updated data refresh schedule. For additional information on COVID-19 Vaccination Data provided by CDC, see https://covid.cdc.gov/covid-data-tracker/#vaccinations_vacc-total-admin-rate-total.

Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.

"As we continue to respond to new variants and prepare for potential surges in the fall, let's continue to use the tools that help protect against and treat COVID-19," Governor Hochul said. "The vaccine is the best tool we have to prevent serious hospitalization from COVID-19, and I encourage those who are not up to date on their vaccine and booster doses to get caught up immediately. Take a test if you feel unwell and if you do test positive, talk to your doctor about potential treatment."

Today's data is summarized briefly below:

• Cases Per 100k - 38.57
• 7-Day Average Cases Per 100k - 33.33
• Test Results Reported - 84,283
• Total Positive - 7,538
• Percent Positive - 8.40%**
• 7-Day Average Percent Positive - 8.80%**
• Patient Hospitalization - 2,780 (-8)
• Patients Newly Admitted - 458
• Patients in ICU - 258 (-28)
• Patients in ICU with Intubation - 89 (0)
• Total Discharges - 325,218 (+462)
• New deaths reported by healthcare facilities through HERDS - 22
• Total deaths reported by healthcare facilities through HERDS - 57,013

** Due to the test reporting policy change by the federal Department of Health and Human Services (HHS) and several other factors, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.

Important Note: Effective Monday, April 4, the federal Department of Health and Human Services (HHS) is no longer requiring testing facilities that use COVID-19 rapid antigen tests to report negative results. As a result, New York State's percent positive metric will be computed using only lab-reported PCR results. Positive antigen tests will still be reported to New York State and reporting of new daily cases and cases per 100k will continue to include both PCR and antigen tests. Due to this change and other factors, including changes in testing practices, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.

• Total deaths reported to and compiled by the CDC - 72,730

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.

Each New York City borough's 7-day average percentage of positive test results reported over the last three days is as follows **:

Borough	Monday July 25, 2022	Tuesday, July 26, 2022	Wednesday, July 27, 2022
Bronx	8.89%	8.77%	8.96%
Kings	8.28%	7.90%	7.55%
New York	7.46%	7.20%	7.20%
Queens	10.36%	9.97%	9.82%
Richmond	8.59%	8.48%	8.62%

Disbarred New York Attorney Sentenced To Three Years In Prison For Multi-Million Dollar Securities Fraud Scheme

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that JAESON BIRNBAUM, a disbarred lawyer, was sentenced today to 36 months in prison for defrauding investors in his now bankrupt litigation finance firm, “Cash4Cases.”  BIRNBAUM previously pled guilty to securities fraud for misappropriating investors funds and pledging the same lawsuit recoveries as collateral to multiple parties, contrary to his representations.  U.S. District Paul A. Crotty imposed the sentence in Manhattan federal court.

U.S. Attorney Damian Williams stated: “As a lawyer Birnbaum understood the importance of honest dealings and putting his investors first.  Instead, Birnbaum chose to lie to his investors in order to steal their money and cover up his fraud by doctoring company records.  Through today’s sentence, Birnbaum has been held accountable for this serious fraud.”

According to statements in the Information, and other public filings and statements in court:

From at least in or about 2017 through in or about 2019, BIRNBAUM obtained more than $3 million in investments for Cash4Cases based on fraudulent misrepresentations.  These investments were in the form of promissory notes, titled “Investor Security Agreements” (“ISAs”), which purported to provide the relevant investors with a security interest in the recoveries associated with certain specified lawsuits that were ostensibly purchased by Cash4Cases.  In fact, in some instances, the lawsuits that were either never funded by Cash4Cases or BIRNBAUM had previously pledged their recoveries to other parties. 

To help carry out his fraud, BIRNBAUM directed an employee to falsify his company’s books and records to make it appear that the recoveries from lawsuits that had already been paid out were still available to be pledged as collateral to new investors.

BIRNBAUM also misappropriated a substantial portion of investors’ funds for his personal use and to make promised payments to earlier investors in Ponzi-like manner.  As one example, BIRNBAUM obtained a $1 million investment for Cash4Cases in September 2019.  Prior to this investment, BIRNBAUM told the investor that Cash4Cases would use the money exclusively for advances to litigants.  However, contrary to this representation, BIRNBAUM used the money to make a $530,000 down payment on the purchase of a house and to pay for other personal expenses and Ponzi-like payments to earlier investors.

BIRNBAUM, 48, of Boca Raton, Florida, was also sentenced to a three-year term of supervised release.  He was further ordered to pay restitution to his victims in the amount of $2,661,072.24 and to forfeit $2,661,072.24 in fraud proceeds.  

Mr. Williams praised the investigative work of the United States Postal Inspection Service and thanked the U.S. Securities and Exchange Commission for its assistance.

Attorney General James Announces Sentencing of Former New York State Supreme Court Justice and Former Chairman of Erie County Democratic Committee for Corruption

 

Former New York State Supreme Court Justice John Michalek Accepted Bribes from Former Erie County Power Broker and Democratic Committee Chairman Steven Pigeon

 New York Attorney General Letitia James today announced the sentencing of Erie County power broker and former Chairman of the Erie County Democratic Committee, G. Steven Pigeon, 61, and former New York State Supreme Court Justice, John A. Michalek, 71, for their roles in a bribery scheme that influenced judicial decisions and official appointments. The Honorable Judge Donald F. Cerio, Jr. sentenced Michalek to one year and four months in jail and a $5,000 fine. Pigeon was sentenced to one year in jail to run concurrent to his federal four-month sentence and a $5,000 fine.

“New Yorkers put their trust in judges and public servants to serve the interests of the people, not make a mockery of our institutions for personal financial gain,” said Attorney General James. “Former Judge Michalek and party leader Pigeon engaged in a deep web of deception and bribery that violated their duty to the public and the very laws Michalek swore to uphold. Let today’s sentencing be a warning to all who would try to do the same: our judicial system is not for sale, and regardless of political party affiliation, my office will always hold corrupt officials accountable.”

On June 30, 2016, Michalek pleaded guilty to two felonies, including Bribe Receiving in the Third Degree, a class D felony, and Offering a False Instrument for Filing in the First Degree, a class E felony, in connection with receiving bribes from Pigeon and for filing a false document with the New York State Office of Court Administration when he appointed a receiver requested by Pigeon. After entering his plea, Michalek submitted a letter of resignation to the New York State Chief Administrative Judge and was disbarred from practicing law. At today’s sentencing, Michalek’s defense attorney made an oral motion, and sentencing was stayed until September 9, 2022.

On September 28, 2018, Pigeon, an attorney, political consultant, and former Chairman of the Erie County Democratic Committee, pleaded guilty to Bribery in the Third Degree, a class D felony. After entering his guilty plea, Pigeon was disbarred. 

Between February 2012 and April 2015, Michalek and Pigeon exchanged emails and text messages which revealed Pigeon was bribing Michalek in order to influence judicial decisions. Messages show Pigeon helped Michalek secure employment and official appointments for two of his family members, gave Michalek free tickets to box seats for Buffalo Sabres hockey games, and gave Michalek’s family a free ticket to a $1,000 political fundraiser. The messages also indicate that Pigeon helped Michalek secure a judicial appointment to the New York State Supreme Court in the Appellate Division.

Throughout the same time period, Pigeon and Michalek discussed multiple pending lawsuits that Michalek presided over. Michalek shared privileged and non-public information with Pigeon so that he could provide input and advice on the cases. In one case, Michalek appointed an attorney chosen by Pigeon to a receivership. Pigeon’s choice was not on the court-issued list of receivers, so in order to appoint the person, Michalek filed a document with the Office of Court Administration in which he falsely claimed he needed that specific attorney’s expertise in handling the receivership.

On October 9, 2018, Pigeon pleaded guilty in federal court to conspiring to illegally cause a $25,000 campaign donation from a Canadian CEO to a New York state official running for reelection to statewide office in 2014. When the CEO’s donation was initially rejected because he was not a U.S. citizen, Pigeon arranged for a U.S. citizen who worked for the CEO to make the donation instead. In exchange for the donation, Pigeon and the CEO attended a New York City fundraiser for the candidate.

Yesterday, July 27, 2022, Pigeon was sentenced on federal charges to four months in jail followed by one year of supervised release by the Honorable Richard J. Arcara, U.S. District Judge, Western District of New York. On December 2, 2021, Pigeon was indicted and arraigned on two counts of Predatory Sexual Assault Against a Child, First Degree Rape and other charges. This case is still pending in Erie County Court.

The Office of the Attorney General (OAG) thanks the U.S. Attorney’s Office of the Western District of New York, New York State Police, and Federal Bureau of Investigation for their work on this matter. The OAG would also like to thank the New York State Board of Elections for their assistance.

Statement By NYC Comptroller Brad Lander on Economic Conditions Facing NYC

 

Comptroller Praises Senate Deal; Identifies $800 Million in Additional FY 2022 Tax Revenue, Urges Rainy Day Savings to Prepare for Economic Slowdown.

 Following the release of national GDP data on Thursday, the Federal Reserve’s announcement of interest rate hikes, and the new U.S. Senate deal to combat inflation and invest in climate solutions, New York City Comptroller issued the following statement:

“The proposed Inflation Reduction Act promises urgently needed investments to confront the climate crisis and curb rising costs for families, welcome news for New Yorkers. I’m grateful to Senate Majority Leader Chuck Schumer for moving negotiations forward on important investments in renewable energy and lower prescription drug prices. While the federal government can do more on housing affordability, child care, and expanded health care coverage, this hallmark legislation will make a big difference in the lives of New Yorkers and people across the country.

“Our economic horizon remains choppy: the GDP data released on Thursday leaves little doubt that the recovery is slowing and high inflation persists. Both federal and municipal action is required to stave off an economic downturn and ensure our recovery benefits all our communities.

“At the national level, we must learn from the success of COVID spending programs, like the expansion of pandemic unemployment assistance to freelancers, to help those at the margins of our economy weather the coming storms. I also urge the Federal Reserve to maintain a data-driven approach that is mindful of its dual-mandate to both stabilize prices and achieve maximum employment.

“Locally, the City of New York must prepare to soften the blow of a possible downturn’s effects to City services and the wallets of our residents. My office identified approximately $800 million in year-end excess revenues that should be deposited into our long-term savings. Our City still has one-time federal stimulus money remaining to fill gaps in school budgets, and we must build our long-term reserves to withstand a future recession.

“This is a pivotal moment to reorient our city to tackle the long-term questions facing the City’s economy, as our office job ecosystem shifts away from a traditional 9-to-5 model and changes the geography of business activity, giving rise to more flexible remote work and more precarious gig work. The infrastructure dollars coming from the Infrastructure Investment and Jobs Act and the potential climate investments from the Inflation Reduction Act will be huge opportunities for New York City to make long term, job-generating investments in projects, like Public Solar NYC, which will secure a thriving economy for the next generation.”

Governor Hochul Urges New Yorkers to Prepare for Severe Thunderstorms Thursday Afternoon and Evening

 

Thunderstorms Forecast For Central and Eastern New York

Damaging Wind Gusts, Downed Tree Limbs and Power Lines, and Localized Flooding in Low-lying Areas Possible

National Weather Service Reporting Radar Confirmed Tornado in Wyoming County on Thursday

Governor Hochul Urges New Yorkers to Use Caution and Stay Alert During Evening Commute on Thursday

 Governor Kathy Hochul today urged New Yorkers to prepare for strong and severe thunderstorms expected to impact most of the state on Thursday afternoon and continue through the evening.

"We're keeping a close eye on the forecast today as severe storms could impact much of the State into this evening, with reports of a brief tornado that passed through Wyoming County," Governor Hochul said. "I am urging New Yorkers to pay attention to their local forecasts and sign up for emergency alerts so they can take measures to stay safe ahead of severe weather."

The National Weather Service's Storm Prediction Center has placed much of the State under a severe thunderstorm watch until 8PM. These storms are capable of bringing damaging winds, strong enough to down trees and power lines - resulting in outages, hail up to and possibly exceeding one inch in diameter, and heavy rain that may lead to isolated flash flooding.

For a complete listing of weather alerts and forecasts, visit the National Weather Service website at https://alerts.weather.gov. New Yorkers are also encouraged to sign up for emergency alerts by subscribing to NY Alert at https://alert.ny.gov, a free service providing critical emergency information via text/call/email.

Severe Weather Safety Tips

Preparedness

• Know the county in which you live and the names of nearby cities. Severe weather warnings are issued on a county basis.
• Learn the safest route from your home or business to high, safe ground should you have to leave in a hurry.
• Develop and practice a 'family escape' plan and identify a meeting place if family members become separated.
• Make an itemized list of all valuables including furnishings, clothing and other personal property. Keep the list in a safe place.
• Stockpile emergency supplies of canned food, medicine and first aid supplies and drinking water. Store drinking water in clean, closed containers.
• Plan what to do with your pets.
• Have a portable radio, flashlights, extra batteries, and emergency cooking equipment available.
• Keep your vehicle fueled or charged. If electric power is cut off, gasoline stations may not be able to pump fuel for several days. Have a small disaster supply kit in the trunk of your car.

Have disaster supplies on hand, including:

• Flashlight and extra batteries
• Battery-operated radio and extra batteries
• First aid kit and manual
• Emergency food and water
• Non-electric can opener
• Essential medicines
• Checkbook, cash, credit cards, ATM cards

Tornado

• If outdoors and a Tornado Warning is issued, seek shelter immediately. If there is no shelter nearby, lie flat in a ditch or low spot with your hands shielding your head.
• If at home or in a small building, go to the basement or an interior room on the lowest floor of the building. Stay away from windows. Closets, bathrooms, and other interior rooms offer the best protection. Get under something sturdy or cover yourself with a mattress.
• If in a school, hospital, or shopping center, go to a pre-designated shelter area. Stay away from large open areas and windows. Do not go outside to your car.
• If in a high-rise building, go to an interior small room or hallway on the lowest floor possible. Do not use elevators - use stairs instead.

Flash Flooding

• Never attempt to drive on a flooded road. Turn around and go another way.
• If water begins to rise rapidly around you in your car, abandon the vehicle immediately.
• Do not underestimate the power of fast-moving water. Two feet of fast-moving flood water will float your car, and water moving at two miles per hour can sweep cars off a road or bridge.

Lightning

• Follow the 30-30 rule: If the time between when you see a flash of lightning and hear thunder is 30 seconds or less, the lightning is close enough to hit you. Seek shelter immediately. After the last flash of lightning, wait 30 minutes before leaving your shelter.
• Lightning hits the tallest object. If you are above a tree line, quickly get below it and crouch down if you are in an exposed area.
• If you can't get to a shelter, stay away from trees. If there is no shelter, crouch in the open, keeping twice as far away from a tree as it is tall.

For more safety tips, visit the New York State Division of Homeland Security and Emergency Services Safety Tips web page at www.dhses.ny.gov/safety.

Governor Hochul Announces Rollout of Electric and Gas Utility Bill Credits for Low-Income Families

 

$567 Million Available to Help Low-Income Customers Pay Off Past Utility Bills

More Than 327,000 Low-Income New York Households to Directly Benefit

 Governor Kathy Hochul announced today that the vast majority of $567 million dedicated to help low-income electric and gas utility customers pay off past utility bills will be reflected on customers' August bills. The financial assistance program includes an estimated $557 million statewide COVID-19 bill credit program for low-income customers adopted by the New York State Public Service Commission. Under the bill credit program, the PSC leveraged $250 million from the FY 2023 Enacted State Budget to require utilities to provide a one-time credit to customers enrolled in the Energy Affordability Program that will eliminate unpaid utility bills that have accrued through May 1, 2022. The program also authorizes the same relief for any eligible low-income customers that enroll in EAP by December 31, 2022.

"I am pleased to announce that the largest low-income utility financial assistance program in the state's history rolls-out on Monday, August 1 - marking a major step forward in the state's ongoing efforts to help New Yorkers maintain utility services," Governor Hochul said. "No New Yorker should have their lights and air conditioning shut off as a result of financial problems caused by the pandemic. I applaud the State Legislature for their partnership to appropriate $250 million toward reducing the burden of utility arrears, which will be critical to helping vulnerable New Yorkers maintain their utility services, especially during these hot summer months."

At the direction of Governor Hochul, the Department of Public Service, the staff arm of the PSC, worked with the state's major utilities to credit the customers' accounts. The COVID-19 pandemic caused significant financial hardship for New Yorkers, particularly low-income consumers. Since March 2020, the number of customers more than 60 days behind in their electric and gas utility payments (i.e., in arrears) and the total dollar amount of arrears has grown to unprecedented levels. Low-income customer credits are expected to be posted to customer accounts beginning August 1, 2022 and consumers can expect to see the credit on their next billing cycle. Credits will be received by the vast majority of low-income customers of the major electric and gas companies on their August bills.

The COVID-19 pandemic caused significant financial hardship to low-income customers and resulted in the shuttering of businesses and widespread loss of jobs. The number of customers that have unpaid utility bills and the total dollar amount of unpaid utility bills has risen considerably since the beginning of the pandemic in March 2020, and this bill credit program provides financial relief to the most vulnerable residential customers in order to help them avoid having their utility services terminated for non-payment. More than 327,000 low-income New York households will directly benefit from the program.

Under the bill credit program, all State assistance available for utility bill assistance will be coordinated to ensure maximum benefits to ratepayers and to avoid duplication of efforts This includes relief available to low-income customers from the State Office of Temporary and Disability Assistance's Emergency Rental Assistance Program to reduce unpaid utility bills, estimated at $100 million, coupled with $250 million from the New York State budget appropriation directed to utilities to eliminate pandemic-related unpaid utility bills for low-income households. Utility shareholders have provided more than $36 million in contributions to benefit ratepayers. The bill credit program is estimated to cost the major utility ratepayers $181 million after they are allocated their share of the budget appropriation, and customer credits and shareholder contributions that reduce the program cost are applied.

This one-time, low-income utility bill credit, which will be applied to affected customers' bills by the utilities, requires no action by existing low-income customers enrolled in the EAP to receive the benefit. PSEG Long Island and the municipal utilities have been allocated $10.4 million of the $250 million appropriated in the budget to be used for the bill credit program for low-income customers. The PSC anticipates a future proposal by consumer groups and stakeholders to address the substantial increase in unpaid electric and gas utility bills for remaining residential and non-residential customers resulting from the COVID-19 pandemic.

As part of the overall work to reduce unpaid electric and gas utility bills, Governor Hochul recently launched a new initiative between OTDA and the major utilities to identify more low-income households to enroll in the EAP program, which provides utility bill discounts that save participating households hundreds of dollars per year on utility costs.

Any newly eligible low-income customer that enrolls in EAP before December 31, 2022 will be included in the bill credit program.

Brazilian Woman Charged With Defrauding Clients And Misappropriating Their Money

 

Raquel Moura Borges Misappropriated More Than $4 Million of Her Clients’ Funds

 Damian Williams, the United States Attorney for the Southern District of New York, and Daniel R. Brubaker, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment charging RAQUEL MOURA BORGES with securities fraud, wire fraud, and investment adviser fraud in connection with her scheme to defraud customers of her investment adviser firm, Global Access Investment Advisor LLC (“GAIA”).  BORGES was arrested yesterday morning and presented before Magistrate Judge Sarah Netburn. The case is assigned to U.S. District Judge Lewis J. Liman. 

U.S. Attorney Damian Williams said: “Borges promised her investment advisory clients that she would invest in securities and other investments but in fact stole her clients’ savings and lined her own pockets.  Now, for this alleged violation of the law and of her fiduciary duty to her clients, Borges faces federal criminal charges”

USPIS Inspector-in-Charge Daniel R. Brubaker said:  “The defendant, a native of Brazil, was welcomed by Postal Inspectors with a pair of handcuffs upon her return to the United States yesterday. For years investors trusted Raquel Moura Borges and her company Global Access Investment Advisors in Manhattan with a combined total of over $19 Million. She allegedly violated at least two of those investors’ trust and broke the law by spending their money on a lavish New York City apartment and to cover other clients’ losses. The arrest of Borges should serve as a warning to criminals: no matter where they are, Postal Inspectors and our law enforcement partners will be waiting at the end of that road to bring you to justice. We will commit every resource available to us in the fight against investment fraud and will track down fraudsters whether they are here or abroad.”

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

From at least in or about 2017 until at least in or about 2018, RAQUEL MOURA BORGES represented to Victim-1 that she was making financial investments, including a private placement investment in a particular Brazilian company, on Victim-1’s behalf.  In or about December 2017, over the course of three transactions, BORGES caused approximately $2.7 million to be transferred from Victim-1’s account to accounts controlled by BORGES. Contrary to the representations made by BORGES to Victim-1 and in violation of the duties she owed Victim-1, none of the $2.7 million was actually invested on Victim-1’s behalf.  Instead, BORGES diverted the money to others and spent approximately $160,000 on interior design fees for an apartment in Manhattan, New York that BORGES owned and used personally.  To conceal her misappropriation of Victim-1’s funds, in or about June 2018, BORGES sent Victim-1 a fake bank statement that falsely reflected a transfer of $2.7 million for the purpose of a “private placement purchase.” 

From at least in or about 2016 until at least in or about 2017, BORGES represented to Victim-2 that she was making financial investments on Victim-2’s behalf.  In or about August 2016, BORGES caused approximately $1.95 million to be transferred from Victim-2’s account to a GAIA account controlled by BORGES (the “GAIA Account”).  The purported reason for the transfer was an investment in real estate in New York.  Contrary to the representations made by BORGES to Victim-2, and in violation of the duties she owed Victim-2, none of the $1.95 million was actually invested on Victim-2’s behalf.  Instead, on or about August 23, 2016, the same date that the $1.95 million wire from Victim-2’s account arrived in the GAIA Account, BORGES signed a check drawn on the GAIA Account in the amount of $1,500,000 payable to herself (the “$1.5M Check”).  The “For” line of the $1.5M Check read “RB’s new house.”  Also on or about August 23, 2016, BORGES caused the $1.5M Check to be deposited into her personal account. 

In or about October 2017, in a meeting with a family member of Victim-2 and in a subsequent e-mail communication, BORGES admitted, in substance and relevant part, that she had misappropriated Victim-2’s money. Among other things, BORGES stated, in sum and substance, that BORGES had used Victim-2’s money to cover other clients’ losses and that BORGES would find a way to pay back Victim-2. 

BORGES, 55, of Brazil, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of investment adviser fraud, which carries a maximum sentence of 5 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the investigative work of the USPIS and also thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendant, for its assistance in the investigation.

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.