Thursday, June 15, 2023

NYC PUBLIC ADVOCATE CALLS ON STATE GOVERNMENT TO CONVENE SPECIAL SESSION ON HOUSING BILLS

 

After the 2023 state legislative session failed to produce any meaningful action on housing, New York City Public Advocate Jumaane D. Williams today called for legislators to continue working toward and enacting a deal, rather than leaving New Yorkers without relief until next year.  In a letter to Governor Kathy Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie, the Public Advocate urged the state legislature to return to the Capitol for a special session to pass a package of housing legislation that would provide both immediate and long term relief to tenants across the city and state. 


Specifically, the Public Advocate is calling on the state legislature to pass, and the governor to sign, a package of tenant protection and support bills that have needlessly stalled in Albany, including the Right to Counsel 2.0, create of a Housing Access Voucher Program (HAVP) , and Good Cause Eviction. This comes after the Assembly announced Tuesday that it would reconvene next week to finalize legislative business.


“I ask, on behalf of New Yorkers struggling to find and remain in their homes, that the three of you work together imminently to discuss and finalize an agreement around Right to Counsel, HAVP and Good Cause Eviction protection,” Public Advocate Jumaane D. Williams wrote. “This includes any needed special session, with assurance that the governor will immediately sign these bills into law. With rents spiking to historic highs, and thousands facing eviction, Albany has a moral and governing mandate to not let these issues go unaddressed for months that New Yorkers cannot afford.”


The housing and homeless crisis that has long impacted New York City has only worsened in recent months and years. There are an estimated 92,000 people in the city without a home, rents have made this city the most expensive in the nation, and half of all New York families are unable to afford even the minimum costs of living here. About one in ten children in New York City are without a home, and in some areas, one in five. The reality of this crisis is present, the call to action urgent.  


The full letter from the Public Advocate to state leadership is below.


Dear Governor Hochul, Majority Leader Stewart-Cousins, and Speaker Heastie,


This letter is in regards to the state’s failure to pass meaningful housing legislation. 


In the midst of a housing crisis, the New York State government failed to deliver much needed housing relief to the people of New York. First we watched the Governor’s Housing Package collapse, without any community input. After the NYS Budget passed, it was disappointing to not see the Right to Counsel 2.0, the Housing Access Voucher Program (HAVP), and Good Cause Eviction legislation voted on this session. However, I understood the housing coalition’s support of the end-of-session amended versions, despite these versions gutting the full weight of the bills, as concessions were necessary to secure votes for passage. Even given these concessions, the session ended with no consensus on housing legislation, leaving the people of New York without vital protections and resources in the midst of a historic housing crisis.


While building income-targeted affordable housing is desperately needed, it is also a longer term solution. Preserving units that already exist is paramount to helping right now. Right to Counsel 2.0, HAVP and Good Cause Eviction protections are the most immediate solutions. To be clear, the proposals as presented were watered down and filled with items supporting real estate interests, the very same entities responsible for and contributing to the housing crisis, and were hard to accept. Still failing to pass a single housing bill, when New Yorkers’ need for housing is so dire should not be where we end up.


I ask, on behalf of New Yorkers struggling to find and remain in their homes, that the three of you work together imminently to discuss and finalize an agreement around Right to Counsel, HAVP and Good Cause Eviction protection. This includes any needed special session with assurance that the governor will immediately sign these bills into law. With rents spiking to historic highs, and thousands facing eviction, Albany has a moral and governing mandate to not let these issues go unaddressed for months that New Yorkers cannot afford.


Sincerely, 


Jumaane D. Williams 

Public Advocate for the City of New York


MAYOR ADAMS, NYC AGING, NYPD ANNOUNCE PLACEMENT OF OLDER ADULT LIAISON IN EVERY POLICE PRECINCT CITYWIDE

 

Announcement on World Elder Abuse Awareness Day Emphasizes Steps Being Taken by Adams Administration to Keep Older Adults Safe

 

Older Adult Liaisons Will Coordinate with Police Officers and Community Leaders to Connect Victims to Support Services, Review Crime Reports to Determine Local Needs


New York City Mayor Eric Adams, New York City Department for the Aging (NYC Aging) Commissioner Lorraine Cortés-Vázquez, and New York City Police Department (NYPD) Commissioner Keechant L. Sewell today marked World Elder Abuse Awareness Day by announcing that an older adult liaison has been designated to every police precinct in the city, as well as every police service area covering New York City Housing Authority developments in the five boroughs. The liaisons will be tasked with connecting victims with support services, educating the public on older adult programs available to them, and informing older New Yorkers on steps they can take to keep themselves safe.

 

“Sadly, one in 10 adults over age 60 suffers from abuse or neglect or is financially exploited, and, too often, these crimes can often go unreported. But we’re working to end that,” said Mayor Adams. “On World Elder Abuse Awareness Day, we are announcing our latest initiative to protect older New Yorkers: Designating an older adult liaison in every police precinct and service area citywide. These new liaisons will connect victims to support services and work closely with the elder community to identify and address their needs. Older New Yorkers should know that you are not alone, and you do not have to suffer in silence. Your city is here for you, and we will keep you safe. I want to thank NYC Aging Commissioner Cortés-Vázquez, NYPD Commissioner Sewell, and all our partners for their outstanding work in making this new position possible.”

 

“Establishing older adult liaisons at every police precinct across the five boroughs is yet another step toward making New York City the most age-inclusive city possible,” said Deputy Mayor of Health and Human Services Anne Williams-Isom. “With more than 1.6 million older adults across the city, this new partnership will connect law enforcement with older adult communities to ensure they have the knowledge, support, and connections they need to stay safe and continue thriving.”

 

“Over 6,000 police officers have gone through trainings to make sure they can identify elder abuse when they see it, and this announcement today is just another step that solidifies our shared commitment to supporting older New Yorkers,” said NYC Aging Commissioner Cortés-Vázquez. “These police liaisons will put a face to the resources and programs available to help keep residents safe. At the same time, we will be using data to identify what crimes against older New Yorkers are occurring and adjust our policies to act accordingly so these residents can continue living independently and safely.”

 

“Throughout the five boroughs, the women and men of the New York City Police Department are focused on ensuring that the promise we make to our older residents to maintain their safety and well-being is never broken by incidents of abuse, neglect, or exploitation,” said NYPD Commissioner Sewell. “And today, together with our government and community partners, we are reaffirming our commitment to preventing and ending elder abuse in all of its many forms.”

 

The idea of new older adult liaisons stemmed from discussions that took place within the “Cabinet for Older New Yorkers,” which Mayor Adams created last year. The NYPD and over 20 other city agencies are members of the Cabinet, and the interagency collaborative aims to realize and institutionalize an age-inclusive New York through structural and systematic solutions.

 

The older adult liaisons will:

  • Connect older adults to NYC Aging and other city programs and services that they can benefit from;
  • Review complaint reports made to the NYPD involving older adults to provide assistance and follow-up;
  • Educate older adults on the latest crime prevention tips; and
  • Attend precinct community council meetings to help keep the public informed.

 

Since last August, a similar pilot program has been taking place in NYPD Patrol Borough Manhattan North and in the 5th Police Precinct located in Chinatown, where there have been about 300 referrals a month to NYC Aging’s Elder Justice Program. While NYC Aging’s Elder Justice Program has received over 2,000 referrals throughout the city over the last year, studies still show cases of elder abuse are consistently underreported nationwide.

 

World Elder Abuse Awareness Day began 17 years ago by the United Nations’ World Health Organization to raise awareness about the abuse, neglect, and other crimes that older people across the globe face.

 

“Since it was launched on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, World Elder Abuse Awareness Day has helped people throughout the world to understand elder abuse in all its forms, including but not limited to financial, physical and mental/emotional abuse,” said William Dionne, executive director, Carter Burden Network. “With awareness comes understanding and an ability to help elders who are either being abused or who are at risk for abuse. Because elder abuse is often hidden with abused elders reluctant to come forward due to fear of reprisals from their abuser or fear of getting their abuser in trouble or embarrassment at having been abused, an initiative like World Elder Abuse Awareness Day helps bring the abuse of elders to the forefront of the general public and thereby encourage outreach and events to reach those elders being abused so that they know they are not alone and that they can get help.”

 

“Neighborhood SHOPP marks World Elder Abuse Day with renewed commitment to protecting Older Adults,” said Katherine Martinez, president and CEO, Neighborhood Self Help by Older Persons Project (SHOPP). “SHOPP is dedicated to serving older adults and operating an Elder Justice program. This significant day serves as a reminder to raise awareness about the prevalence of elder abuse and reaffirm our commitment to ensuring the safety and well-being of older adults in our community. As a leading nonprofit organization serving the Bronx for over 40 years, SHOPP strives to prevent and respond to elder abuse, neglect, and exploitation, advocating for the rights and dignity of older adults. With our comprehensive support services, community engagement, and collaborative efforts, we aim to create a safe and inclusive environment for older adults to thrive.”

 

Governor Hochul Announces Enforcement Actions Against Unlicensed Cannabis Businesses in Ithaca and Binghamton

 A sign on an illegal cannabis shop in New York.

New York State Office of Cannabis Management and Department of Taxation and Finance Inspected Unlicensed Shops

Illicit Products Were Seized, Initiating the Process of Shutting Down Unlicensed Cannabis Sales in Storefronts

Actions Are Direct Result of Empowering Legislation Governor Hochul Signed into Law in the FY 2024 Budget

 Governor Kathy Hochul today announced enforcement teams from New York State's Office of Cannabis Management and Department of Taxation and Finance conducted inspections at storefront businesses not licensed to sell cannabis in Ithaca and Binghamton. These actions led to Notices of Violation and Orders to Cease Unlicensed Activity being issued, building on actions taken in New York City last week, and they will continue to be replicated across the state to end public sales of illicit cannabis by any unlicensed businesses. State enforcement actions were made possible as part of the FY 2024 Budget Governor Hochul signed into law last month.

"As the most equitable cannabis industry in the nation gains momentum, we continue to take action against bad actors who seek to skirt around our laws," Governor Hochul said. "Unlicensed dispensaries violate our laws, put public health at risk, and undermine the legal cannabis market, and we will continue to take these critical enforcement measures to protect New Yorkers from illicit, unregulated sales."

On May 3, 2023, Governor Hochul signed legislation enabling for the enhanced, statewide enforcement by OCM on unlicensed cannabis businesses as part of the FY 2024 Budget. The legislation now enables OCM to also assess civil penalties against unlicensed cannabis businesses, with fines of up to $20,000 a day for the most egregious conduct, and starts the process of potential closure of a retail location selling cannabis without a license among other penalties. The new law also makes it a crime to sell cannabis and cannabis products without a license.

As a result of the legislation, the Department of Taxation and Finance can now conduct regulatory inspections of businesses selling cannabis to determine if appropriate taxes have been paid and to levy civil penalties in cases where they have not. The legislation also establishes a new tax fraud crime for businesses that willfully fail to collect or remit required cannabis taxes or knowingly possess for sale any cannabis on which tax was required to be paid but was not.

By taking decisive action against unlicensed cannabis businesses, New York State is making a significant stride toward cracking down on unlawful cannabis operations that jeopardize public safety, consumer well-being, and the integrity of New York State's legal cannabis market.

On Tuesday, OCM and DTF conducted inspections on three businesses in Ithaca. Each of the locations was issued a notice of violation for selling cannabis without a license. The penalty for this, which will ultimately confirmed through an administrative hearing process, is $10,000 per day, plus potential additional penalties. The inspected businesses may also be subject to additional violations and penalties under the Department of Tax and Finance Law.

The following shops were inspected in Ithaca:

  1. Black Leaf -- 103 East State Street, Ithaca, NY
  2. Zaza Convenience -- 101 East State Street, Ithaca, NY
  3. The Rezz -- 312 Fourth St, Ithaca, NY

Yesterday, OCM and DTF conducted inspections in Binghamton. As in Ithaca, both locations were issued a notice of violation for selling cannabis without a license with. The penalty for this, which will ultimately confirmed through an administrative hearing process, is $10,000 per day, plus potential additional penalties. The inspected businesses may also be subject to additional violations and penalties under the Department of Tax and Finance Law.

The following shops were inspected in Binghamton:

  1. Green Magic - 144 Henry St
  2. Takeoff 2 - 63 Chenango St

State Senator Lea Webb said, "We do not allow bars and restaurants to operate here in New York without proper licensing and the same is true for cannabis shops. My Senate district is home to two of the first adult-use dispensaries to open their doors in Upstate New York, one in the City of Binghamton and the second in the City of Ithaca. These business owners have worked hard to obtain legal licenses to sell cannabis, create new jobs in our community, and support our local economy. I appreciate my colleagues and Governor Hochul's commitment to protecting our state's investment in our cannabis industry, which not only helps grow our local economy, but also supports New York's agricultural producers and folks who have been disproportionately harmed by the criminalization of cannabis."

Additional information on fines:

If an unlicensed location is found to continue selling cannabis products after OCM issues a Notice of Violation/Order to Cease, an additional per-day penalty of up to $20,000 may be assessed by an ALJ. Further, should the unlicensed business remove the OCM Notice of Violation or Warning affixed to the business storefront, the business is subject to a fine of up to $5,000.

Additional information regarding previous and ongoing operations in New York City:

OCM and DTF began their first joint inspections authorized by the new enforcement law the week of June 5, 2023, in New York City, where inspections will remain active and ongoing. The two agencies inspected 11 shops in Manhattan last week, have inspected several more this week, and will continue to do so.

All of the shops inspected in New York City last week were selling cannabis without a license and, upon inspection, were issued Notices of Violation and Orders to Cease Unlicensed Activity.

The following shops were inspected last week:

  1. Varieties on Broadway - 736 Broadway
  2. Roll 2 Nation - 738 Broadway
  3. Baby Jeeter - 793 Broadway
  4. Maze - 16 St. Marks Place
  5. LaGuardia Smoke - 510 LaGuardia Place
  6. Nomad - 59 West 30th Street
  7. Play lane - 117B W 23rd Street
  8. Cannabis Culture - 403 8th Avenue
  9. Smoke Factory - 287 7th Avenue
  10. Go Green Dispensary - 603 6th Avenue
  11. Daydream - 1181 Broadway
EDITOR'S NOTE:
How about the dozens of these unlicensed Cannabis stores in the Bronx, Governor Hochul, or is it only where legal Cannabis stores are operating that such enforcement will happen.

THE CITY OF NEW YORK CONFLICTS OF INTEREST BOARD - In the Matter of COIB Case No. 2019-503 BILL DE BLASIO OATH Index No. 587/23 Use of City Resources for Personal Use

 

FINAL FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER

Upon consideration of all the evidence presented in this matter, and of the full record, and all papers submitted to, and rulings of, the Office of Administrative Trials and Hearings (“OATH”), including the annexed Report and Recommendation (the “Report”) of OATH Administrative Law Judge (“ALJ”) Kevin F. Casey dated May 4, 2023, in the above-captioned matter, the Board hereby adopts in full the findings of fact and conclusions of law contained in the Report, which finds that Respondent violated Charter Section 2604(b)(2), pursuant to Board Rules Section 1-13(b). The Report recommends the Board impose a fine of $155,000 pursuant to Charter Section 2606(b) and, in addition, order payment to the City of $319,794.20 pursuant to Charter Section 2606(b1), which recommendation the Board adopts. 

Both parties were reminded of their right, pursuant to Board Rules Section 2- 03(h), to submit a post-hearing comment on the Report; neither party submitted such a comment within the time period provided for in the rule. 

Without limiting the foregoing, and in summary of its findings and conclusions, the Board notes the following: 

Between May 2019 and September 2019, while serving as Mayor, Respondent was a candidate for President of the United States. During this time, Respondent had the City pay the travel expenses for an NYPD security detail to accompany Respondent or his spouse on 31 out-of-state trips in connection with his presidential campaign. This NYPD security detail incurred $319,794.20 in travel costs, excluding NYPD salary and overtime, during these 31 trips. 

The City’s conflicts of interest law, codified in Chapter 68 of the City Charter, exists to “preserve the trust placed in the public servants of the city, to promote public confidence in government, to protect the integrity of government decision-making and to enhance government efficiency.” Charter Section 2600. Charter Section 2604(b)(2), as implemented in Board Rules Section 1-13(b), forwards this critical purpose by prohibiting public servants from using City resources for any non-City purpose. When a public servant uses City resources for private purposes, it erodes the public’s trust and makes City government less efficient. For this reason, the Board has routinely enforced this prohibition, particularly where a public servant uses City resources for the non-City purpose of advancing a campaign for elective office or other political activity.(1)

Respondent’s conduct plainly violates this prohibition. Although there is a City purpose in the City paying for an NYPD security detail for the City’s Mayor, including the security detail’s salary and overtime, there is no City purpose in paying for the extra expenses incurred by that NYPD security detail to travel at a distance from the City to accompany the Mayor or his family on trips for his campaign for President of the United States. The Board advised Respondent to this effect prior to his campaign; Respondent disregarded the Board’s advice.

Having found the above-stated violations of the City Charter, and for the reasons set forth in the Report, the Board adopts the Report’s recommended fine of $5,000 for each of Respondent’s 31 violations of Chapter 68, for a total fine of $155,000 pursuant to Charter Section 2606(b), and payment to the City of $319,794.20 pursuant to Charter Section 2606(b-1), the value of the gain or benefit obtained by the Respondent as a result of the violation. 

Respondent claims that the Board cannot impose a penalty upon Respondent because of the requirement, contained in Charter Section 2606(b), that the Board consult “with the head of the agency involved, or in the case of an agency head, with the mayor” before imposing a fine for violations of Charter Section 2604. Charter Section 2603(h)(3) contains a similar provision. As discussed in the Report, and as the Board has held previously, because Respondent was an executive branch elected official, this requirement does not apply here. Report at 19-20. See COIB v. Holtzman, COIB Case No. 93-121 (1996), OATH Index No. 581/94 at 41 n. 3, aff’d Holtzman v. Oliensis, 91 

(1) See, e.g., COIB v. Oberman, COIB Case No. 2013-609, OATH Index No. 1657/14 (2014), affirmed 148 A.D.3d 598 (1st Dept., 2017) (imposing $7,500 fine against former Executive Agency Counsel at the New York City Taxi and Limousine Commission who used his City phone during business hours to work on his campaign for the New York City Council); COIB v. Hynes, COIB Case No. 2013-771 (2018) (imposing $40,000 fine against District Attorney who used City computers, email, and personnel for his re-election campaign); COIB v. Mosley, COIB Case No. 2013-004 (2013) (imposing $2,500 fine against an administrative manager at the New York City Office of the Comptroller who used her City computer and email account to perform campaign work for a candidate for the New York State Assembly). 

N.Y.2d 488 (1998); COIB v. Markowitz, COIB Case No. 2009-181, OATH Index No. 1400/11 at 4.

WHEREFORE, IT IS HEREBY ORDERED that Respondent be assessed a fine of $155,000 pursuant to Charter Section 2606(b) and payment to the City of $319,794.20 pursuant to Charter Section 2606(b-1), a total of $474,794.20, to be paid to the Conflicts of Interest Board within 30 days of service of this Order

Respondent has the right to appeal this Order to the Supreme Court of the State of New York by filing a petition pursuant to Article 78 of the Civil Practice Law and Rules. 

The Conflicts of Interest Board

By: Milton L. Williams Jr., Chair

Fernando A. Bohorquez Jr., Wayne G. Hawley, Ifeoma Ike, Georgia M. Pestana did not participate in the consideration or decision of this matter.

Dated: June 15, 2023. 

CITY OF NEW YORK DEEMS MEDICARE ADVANTAGE CONTRACT REGISTERED

 

OLR Has Informed City Comptroller He Had No Statutory Basis for Declining to Register Medicare Advantage Contract Last Week

The New York City Office of Labor Relations, under the Adams administration, today announced that it has deemed the Medicare Advantage contract registered, allowing implementation of the plan to move forward effective September 1st of this year. This step was taken after the two agencies informed the New York City Comptroller’s Office that they did not have any statutory basis for declining to register the contract, as required under the City Charter, and because failing to register the contract only increases confusion and misinformation among retirees regarding Medicare Advantage.

 

“As we’ve said repeatedly, this Medicare Advantage plan improves retirees’ current plans, including offering a lower deductible, a cap on out-of-pocket expenses, and new benefits, like transportation, fitness programs, and wellness incentives,” said New York City Mayor Eric Adams. “We are clearly within our authority under the charter to deem this contract registered, and we look forward to working with Aetna to ensure a smooth transition to the plan for our city’s eligible retirees and their dependents come September 1st.”

 

The city’s Aetna Medicare Advantage plan will provide a lower deductible for retirees than their current Senior Care plan. The plan also places a cap on out-of-pocket expenses and offers new benefits to retirees, including transportation to certain doctors’ appointments, fitness programs, and wellness incentives. Additionally, the plan significantly limits the number of procedures requiring prior authorization.

 

The city is working with Aetna to ease the transition to the new plan and answer any questions from eligible retirees. Aetna has built a custom website specifically for City of New York retirees. The website has resources for retirees to look up their doctor, find out detailed information about their plan, and register for online and in-person information sessions. Retirees can also contact Aetna’s dedicated call center at 855-648-0389 (TTY: 711), Monday to Friday, from 8:00 AM to 9:00 PM. Additionally, Aetna has held a series of in-person town hall meetings in the New York metro area and other states with high Medicare-eligible retiree populations to answer retirees’ questions and assist them with the transition.


Attorney General James Recovers $1.7 Million from Cryptocurrency Platform for Operating Illegally

 

CoinEx Required to Stop Operating in the U.S., Pay Penalties, and Refund New York Investors

New York Attorney General Letitia James today recovered more than $1.7 million from COINEX (CoinEx) for failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange. Today’s agreement resolves Attorney General James’ lawsuit against CoinEx and requires the company to refund thousands of New York investors more than $1.1 million and pay more than $600,000 in penalties to the state. As part of today’s consent order, CoinEx is banned from offering, selling, or purchasing securities and commodities in New York and is prohibited from making its platform available in the state. In response to Attorney General James’ lawsuit, CoinEx publicly announced that it would withdraw its platform and services from the United States. Attorney General James has worked to increase oversight and regulation of cryptocurrency companies to protect New York investors, and has recovered more than $500 million from the cryptocurrency industry.

“Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy,” said Attorney General James. “Today’s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York’s laws. My office will continue to crack down on crypto companies that brazenly disregard the law, mislead investors, and put New Yorkers at risk.”

CoinEx is a Hong Kong-based virtual currency trading platform that allows investors to buy and sell cryptocurrency through its website and mobile app. New York law requires securities and commodities brokers to register with the state, which CoinEx failed to do. An investigator from the Office of the Attorney General (OAG) was able to create an account with CoinEx using a computer with a New York-based IP address to buy and sell digital tokens although CoinEx was not registered with the state.

Today’s agreement requires CoinEx to provide full refunds totaling $1,172,971.50 to 4,691 New York investors. Investors can receive their refund in the form of cryptocurrency directly from CoinEx over the next 90 days. After 90 days, eligible investors can receive their refund as U.S. currency from OAG by emailing coinexrefund@ag.ny.gov. Each investor will be refunded the amount of cryptocurrency or the cash equivalent of the cryptocurrency they held in their accounts as of April 25, 2023.

In addition, CoinEx must implement geoblocking to prevent New York IP addresses from accessing their platform. CoinEx is also prohibited from creating any new accounts for U.S. customers and existing U.S. customers can only withdraw their crypto from the platform.

Today’s settlement continues Attorney General James’ efforts to enforce New York laws in the cryptocurrency industry. Last month, Attorney General James announced sweeping cryptocurrency legislation that will increase regulations of the cryptocurrency industry to protect New York investors. Also last month, Attorney General James secured $4.3 million from Coin Cafe for failing to register as a commodity broker-dealer and defrauding investors. In March, Attorney General James also brought a lawsuit against KuCoin for failing to register as a securities broker or dealer or commodities broker-dealer with the OAG. In January, Attorney General James and a multistate coalition recovered $24 million from the cryptocurrency platform Nexo for operating illegally. Attorney General James also sued the former CEO of Celsius for defrauding investors and concealing the company’s dire financial condition. In March 2022, Attorney General James issued a taxpayer notice to virtual currency investors and their tax advisors to accurately declare and pay taxes on their virtual investments.

In October 2021, Attorney General James directed unregistered crypto lending platforms to cease operations for not registering with the state. In September 2021, Attorney General James recovered $479.9 million from GTV Media for failing to register cryptocurrency sales. Also in September 2021, Attorney General James secured a $3 million court judgment against Coinseed. In February 2021, Attorney General James required Bitfinex and Tether to end all trading activity in New York and required iFinex and Tether and their related companies to pay $18.5 million in penalties.

Attorney General James urges New Yorkers who have been affected by deceptive conduct in virtual assets markets to report these issues to OAG. Attorney General James also encourages workers in the cryptocurrency industry who may have witnessed misconduct or fraud to file an online whistleblower complaint with her office, which can be done anonymously.

AG James Has Recovered More Than $500 Million from Crypto Industry for Violating New York Laws

MAYOR ADAMS, OLR COMMISSIONER CAMPION ANNOUNCE TENTATIVE CONTRACT AGREEMENT WITH UNIFORMED OFFICERS COALITION

 

Pattern Conforming Settlement With More Than 32,000 Uniformed Members Brings Total City Workforce Under Contract to 75 Percent

New York City Mayor Eric Adams and Office of Labor Relations (OLR) Commissioner Renee Campion today announced a five-year tentative contract agreement with the Uniformed Officers Coalition (UOC), a coalition of uniformed unions representing more than 32,000 city employees. With today’s settlement, 75 percent of the city workforce is now under contract. UOC represents 11 unions across all four uniformed city agencies: the Detectives Endowment Association (DEA), the Sergeants Benevolent Association (SBA), the Lieutenants Benevolent Association (LBA), the Captains Endowment Association (CEA), the Uniformed Firefighters Association (UFA), the Uniformed Fire Officers Association (UFOA), the Correction Officers Benevolent Association (COBA), the Correction Captains Association (CCA), the Assistant Deputy Wardens (ADW), the Sanitation Officers Association (SOA), and the Uniformed Sanitation Chiefs Association (USCA). 

The tentative agreement conforms to the economic pattern established under the Police Benevolent Association settlement in April, and follows agreements with District Council 37 in February and the United Federation of Teachers earlier this week. Today’s agreement includes wage increases ranging from 3.25 percent to 4.00 percent over the contract period.

 

“As a former union member and someone who retired at the rank of captain in the New York City Police Department, I am proud we have reached this significant agreement with the Uniformed Officers Coalition,” said Mayor Adams. “The men and women who work tirelessly to keep our city safe and clean deserve fair pay, and this agreement represents a concrete demonstration of our gratitude for their efforts.”

 

“This agreement underscores the mayor’s commitment to investing in our city’s most valuable resource: our people,” said OLR Commissioner Renee Campion. “I want to thank all the unions who came to the table and negotiated this agreement, which is fair to city workers and taxpayers.”

 

“It is our duty to care for the people who care for all of us,” said Deputy Mayor for Public Safety Philip Banks III. “That starts with fair compensation for the work they do. This investment into our workforce is an investment in the safety and prosperity of our city.”

 

“Thank you to Commissioner Campion and Commissioner Tisch for their work to reach a deal for our uniformed sanitation leaders,” said Deputy Mayor for Operations Meera Joshi. “The managers covered by this tentative deal are working on major quality of life initiatives for New Yorkers and keeping our streets clean. This deal acknowledges and gives thanks for their hard work.”

 

“This meaningful new agreement is welcome news for our uniform investigators, supervisors, and executives, who work night and day to ensure public safety in every New York City neighborhood,” said New York City Police Department (NYPD) Commissioner Keechant L. Sewell. “Their work has helped us achieve continuing crime reductions, both last year and this, including double-digit decreases in shootings, shooting victims, and homicides. The city is fortunate to have these truly dedicated public servants, and I’m proud that this agreement reflects a recognition of their continuing contributions to our common good. We thank each of the unions for their continued partnership in working towards the best interests of our officers, and by extension, this city.”

 

“The men and women of the FDNY run into danger when others run away from it, and keeping our city safe is not possible without them. A group of dedicated public servants, they consistently operate without hesitation and demonstrate bravery at every turn,” said Fire Department of the City of New York (FDNY) Commissioner Laura Kavanagh. “This agreement is a nod to that hard work and dedication, and we are appreciative of Mayor Adams for getting this done.”

 

“Public safety in our city and improving the safety and operations of our jails is not possible without the bold and dedicated men and women of the Department of Correction,” said New York City Department of Correction Commissioner Louis A. Molina. “I, too, was once a uniformed member of law enforcement, serving as a police officer in Manhattan, and I know firsthand how important this agreement is for those who serve and protect New Yorkers.”

 

“The Sanitation employees covered by this tentative agreement — supervisors, superintendents, and chiefs — are on the front lines of implementing Mayor Adams' cleanliness agenda,” said New York City Department of Sanitation Commissioner Jessica Tisch. “They are overseeing the city's graffiti removal operation, getting derelict vehicles off the streets, and enforcing the once-in-a-generation change to when trash goes out that is sending rats packing. They've delivered for our city, and today, Mayor Adams is delivering for them.”

 

“The era of defunding and dismantling our essential workforce is over. The COBA executive board and I extend our deepest gratitude to Mayor Adams and his administration for understanding the gravity of the crisis we have faced for the past several years and addressing our concerns with a significant wage increase that reflects the tremendous sacrifices we have made and continue to make in keeping New York City safe,” said Benny Boscio, president, COBA. “This economic package is a meaningful investment in both the future of our workforce and the future of our jails. I also want to thank OLR Commissioner Renee Campion for negotiating fairly and in good faith throughout negotiations and DOC Commissioner Louis Molina for his steadfast support. We look forward to continuing our productive conversations in our unit bargaining sessions and negotiating the best possible contract for New York City's Boldest.”

 

“On behalf of the men and women I represent, I would like to thank Mayor Adams and OLR Commissioner Campion for negotiating this contract with us and the 10 other unions in our coalition,” said Patrick Ferraiuolo, president, CCA. “This is proof that, when we can sit down and discuss our needs and concerns and when the people on the other side of the table are logical and understanding, anything can be accomplished.  The members of the Correction Captains' Association work in what is one of the most challenging environments, and I view this agreement as confirmation from the mayor and commissioner that our hard work does not go unnoticed.”

 

“The Detectives’ Endowment Association has been at the bargaining table tirelessly on behalf of our members for months because we know how much these highly skilled men and women are worth,” said Paul DiGiacomo, president, DEA. “This salary increase proves that Mayor Adams and his administration realize how important NYPD detectives are to New York City. For that, the union is grateful.”                            

 

“On behalf of all of the members of the UFA, the UFA acknowledges and appreciates the impactful collaboration between the city and the coalition of 11 unions, with special thanks to Mayor Eric Adams and Commissioner Renee Campion, for resolving this important five-year economic contract package for a large number of our city’s uniformed employees,” said Andrew Ansbro, president, UFA.

 

“The UFOA is proud of the work our uniform coalition put in to reach this agreement,” said Jim McCarthy, president, UFOA. “The FDNY fire officers will have increases in their current wages and are assured raises in the next few years. We look forward to continuing with our unit bargaining and improving the benefits of our active and retired members.”

 

The total cost of the tentative agreement is approximately $4 billion through Fiscal Year 2027. It is fully covered by funding set aside in the Labor Reserve as of the Fiscal Year 2024 Executive Budget.

 

As in previous rounds of bargaining, each individual union within the coalition will have an opportunity to bargain on issues specific to their bargaining unit, within the same overall economic framework.

 

Members of the unions covered under this agreement will receive the following compounded and retroactive wage increases, with start and end dates varying based on when their contract from the last round of bargaining expired:

 

  • 3.25% on first day of Year 1
  • 3.25% on first day of Year 2
  • 3.50% on first day of Year 3
  • 3.50% on first day of Year 4
  • 4.00% on first day of Year 5

 

Under the agreement, there is also funding available for unit bargaining to address recruitment and retention issues.

 

The agreement must be ratified by each union’s membership.


NYS Office of the Comptroller DiNapoli Audit Finds Hazardous Conditions Persist in Mitchell-Lama Developments

 

Office of the New York State Comptroller News

New York State’s affordable housing agency, Homes and Community Renewal (HCR), is falling short in its oversight of several Mitchell-Lama developments, according to an audit released today by State Comptroller Thomas P. DiNapoli. Auditors found unsafe conditions at facilities that went unaddressed, sometimes for years, and questionable spending.

“Our auditors found that tenants are subjected to unsanitary, unacceptable conditions and that water leaks, collapsing ceilings, mold and other problems were left unaddressed sometimes for years,” said DiNapoli. “Homes and Community Renewal needs to improve its oversight of conditions at Mitchell-Lama buildings and monitor spending more closely. Tenants deserve nothing less.” 

Auditors examined conditions and records at four Mitchell-Lama developments in New York City – 753 Classon Ave. Housing Co. (Classon), located in Brooklyn, Cathedral Parkway Towers (Cathedral), located in Manhattan, Findlay House (Findlay), located in the Bronx, and Jamie Towers, also located in the Bronx -- between 2019 and January 2023. They found poor conditions and disrepair at all of the developments. Auditors also found $1.5 million in total spending at the developments that was either unrelated to normal operations, lacked adequate support or for which there were no approvals, competitive analysis and bidding, as required.

The Mitchell-Lama Housing program provides affordable rental and cooperative housing to middle-income families. The program is supervised by HCR’s Division of Housing and Community Renewal (DHCR). Mitchell-Lama developments are owned by private companies which often enter into agreements with agents who manage their buildings. Owners are responsible for providing safe and habitable housing and maintaining the development’s physical and financial integrity, while managing agents manage the developments to ensure the owners’ responsibilities are met. Each Mitchell-Lama development is assigned a DHCR Housing Management Representative who is responsible for monitoring and evaluating the development’s management and providing recommendations for corrections.

Auditors made multiple visits to the four developments and compared their findings with Field and Office Visit Reports that management representatives are required to maintain.

Poor Physical Conditions: Highlights (Photos in Audit)

  • Classon: Partially collapsed ceilings in the community room, an entrance out of compliance with the Americans with Disability Act standards and evidence of mold in the basement and community room.
  • Jamie Towers: Stairwell doors and garbage chutes would not close on their own, posing a fire risk to tenants, cracked walkways and an out-of-service elevator.
  • Findlay Houses: Self-closing door at the building’s main entrance failing to close properly, posing a safety risk to tenants.
  • Cathedral: Missing concrete, calcium drips, a trip hazard, pools of water, cracks in the sidewalks, bricks jutting out around flower beds and retaining walls, an unsafe retaining wall and mold and fungus on the playground mat of the preschool.

To improve physical conditions at the developments, auditors made several recommendations to increase DHCR’s monitoring, including conducting at least one annual site visit to each development, taking action against managing agents who are not compliant with regulations, ensuring immediate corrective action is taken to address unsafe conditions and developing a process to use publicly available violations and complaints data in the monitoring of developments.

Misspent Funds

In addition to poor oversight of physical conditions, auditors determined that DHCR officials’ oversight of financial conditions at these developments was weak. In a review of 280 transactions, totaling $1.9 million, auditors found that nearly half, 139, worth about $1.5 million, were either unrelated to normal operations, inadequately supported, or lacked documented proof of approval, competitive analysis, or bidding, as required.

Auditors looked at expenses at the four developments and found, in three – Cathedral, Jamie Towers, and Classon – instances where funds were not properly accounted for or were used for unusual purposes. Auditors determined that DHCR officials are also not ensuring that building management is being held accountable for maintaining healthy, safe standards of living for tenants and apartment owners.

Despite the negative financial findings, management at all four developments have recently applied for a maintenance or rent increase.

The audit included several recommendations to improve the monitoring and oversight of financial conditions, including that DHCR officials review the inappropriate or unusual expenditures identified by the auditors, implement policies and procedures for certain payments and procurements as well as internal controls, and mandate regular training for management.

DHCR disputed several of the audit findings and noted that the COVID-19 pandemic created many challenges, including limiting its ability to perform inspections. Officials did agree to consider many of the recommendations made. The agency’s response is included in the audit.

This is the first in a series of audits on the physical and financial conditions at Mitchell-Lama Developments statewide. 

Audit