Husband And Wife Charged In Interstate Gun Trafficking Scheme

 

 Damian Williams, United States Attorney for the Southern District of New York, John DeVito, Special Agent-in-Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Keechant L. Sewell, Police Commissioner for the City of New York (NYPD), announced today that RONALD ROGERS and ANAUNCIA ROGERS were charged with conspiracy to commit gun trafficking and gun trafficking, in connection with their involvement in a scheme to illegally obtain and transport firearms from Georgia for resale to residents of New York.  RONALD ROGERS was arrested yesterday traveling from Georgia to New York and was presented today before Magistrate Judge Robert W. Lehrburger in the Southern District of New York.  ANAUNCIA ROGERS was also arrested yesterday in Georgia and was presented today in the Northern District of Georgia.

U.S. Attorney Damian Williams said:  “As alleged, Anauncia and Ronald Rogers were in the business of illegally purchasing firearms in Georgia and transporting them to New York.  The two are alleged to have purchased 68 guns in their interstate weapons-buying scheme.  The importation of firearms into the tri-state exposes millions of New Yorkers to potentially lethal harm, and I commend the career prosecutors of this Office for partnering with the ATF and NYPD in the ongoing effort to rid our streets of illegal guns.”

ATF Special Agent-in-Charge John  DeVito said:  “One of ATF’s top priorities is to decrease the ever-growing threat to public safety caused by illegally trafficked firearms.  The men and women of the Joint Firearms Task Force worked diligently to identify, investigate and to apprehend Ronald and Anauncia Rogers in this case.  This investigation is yet another example of the collaborative work of the NYC Crime Gun Intelligence Center and all our investigative partners to reduce firearms trafficking and violent crime across our City and Nation.”

NYPD Commissioner Keechant L. Sewell said:  “The NYPD and our law enforcement partners at the ATF and the Office of the U.S. Attorney for the Southern District remain precisely focused on building strong cases against anyone who peddles illegal guns on the streets of New York.  Bringing these gun traffickers to justice is dangerous work, and I commend our dedicated investigators for identifying and taking into custody this husband-and-wife team, who will now face the full consequences of their alleged actions.”

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

From at least in or around September 2018 up to and including March 2022, RONALD ROGERS and ANAUNCIA ROGERS, both residents of the state of Georgia, engaged in a scheme to buy at least 68 firearms from at least seven federal firearms licensees (“FFLs”) in Georgia.  Over the course of the scheme, ANAUNCIA ROGERS personally purchased at least 47 firearms. In connection with each purchase, ANAUNCIA ROGERS attested that she was the true purchaser of the firearms, when in fact she was buying guns on behalf of her husband and co-defendant, RONALD ROGERS.  After ANAUNCIA ROGERS purchased the guns, RONALD ROGERS transported the firearms to New York City, usually by car, and illegally resold many of the guns to others.

To date, the NYPD has seized six firearms purchased in Georgia by ANAUNCIA ROGERS during arrests in New York City. 

RONALD ROGERS, 26, and ANAUNCIA ROGERS, 26, both of Riverdale, Georgia, are charged with one count of conspiracy to commit gun trafficking, which carries a maximum penalty of five years in prison, and one count of gun trafficking, which also carries a maximum penalty of five years in prison.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding work of the ATF and the NYPD for their assistance in this investigation.

The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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

BRONX MAN INDICTED ON ATTEMPTED MURDER AND ATTEMPTED RAPE CHARGES FOR ATTACKING WOMAN IN BUILDING HALLWAY

 

Victim Was Strangled, Suffered Skull Fracture and Blood Loss

 Bronx District Attorney Darcel D. Clark today announced a Bronx man has been indicted on Attempted Murder, Attempted Rape, and additional charges for sexually assaulting, strangling, and beating a woman inside a University Heights building.

 District Attorney Clark said, “The defendant allegedly attacked the victim in a hallway of her building. The brutality left the victim with fractured bones and blood loss. We will pursue justice for her.”

 District Attorney Clark said the defendant, Jason Dickerson, 34, of 2860 Bailey Avenue, was arraigned today on Attempted Murder in the first degree, Attempted Murder in the second degree, two counts of Attempted Rape in the first degree, two counts of first-degree Sexual Abuse, second-degree Sexual Abuse, first and second-degree Strangulation, Criminal Obstruction of Breathing or Blood Circulation, and second-degree Assault before Bronx Supreme Court Justice Raymond Bruce. The defendant was remanded and is due back in court on August 9, 2022.

 According to the investigation, inside a hallway in a building on Davidson Avenue on March 11, 2022 at approximately 3:30 p.m., the defendant allegedly offered the victim, a 27-yearold woman, money for sex. The victim complied and after engaging in sexual acts Dickerson demanded his money back. When the victim refused to give him the money, he allegedly put his arm around her neck and strangled her repeatedly until she lost consciousness. Dickerson allegedly sexually abused the victim and attempted to rape her while she was unconscious. When the victim regained consciousness, she screamed loudly, and the defendant ran off. The incident was captured on surveillance video.

 During the struggle, the defendant struck the victim causing a laceration to her face, as

 District Attorney Clark thanked Detective Ernesto Castillo of the NYPD Bronx Special Victims Squad, Neighborhood Coordination Officer Gregory Scott of the 52nd Precinct, Detective Jaysen Basnight of the NYPD Crime Scene Unit, and Detective Ronald Hobson of the NYPD Bronx Warrant Squad for their assistance in the investigation. 

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

MAYOR ADAMS ANNOUNCES MORE THAN 1,300 NEW YORKERS HAVE ACCEPTED SHELTER SINCE LAUNCH OF SUBWAY SAFETY PLAN

Unprecedented $171 Million Investment in Low-Barrier Safe Haven and Stabilization Beds Ensures Unhoused New Yorkers Have Short- and Longer-Term Destinations of Care, Support, and Housing

 New York City Mayor Eric Adams today announced that three months into the Subway Safety Plan, 1,379 people experiencing homelessness have accepted placement in safe haven, stabilization, and shelter beds. This is a five-fold increase in people accepting services compared with the first week of the plan, when only 22 people accepted shelter. Additionally, the city’s outreach teams are making on average 744 engagements with people in need each day in both the mayor’s Subway Safety Plan and end-of-line (EOL) outreach efforts, building trust to connect more New Yorkers to long-term permanent housing, mental health care, and community-based services.

 

“Three months into our work making subways safer and connecting New Yorkers in need with services, and it is evident that our efforts are working,” said Mayor Adams. “We have connected more than 1,300 New Yorkers with shelter and other vital services and our teams are making hundreds of engagements every day on the subways, a monumental milestone. It’s a new day in New York, and this announcement shows what is possible when we can break down silos between agencies and work in partnership with the state and the MTA toward a collective goal. There is no one-size-fits-all approach, so we will continue to evaluate what works best, while never wavering from our commitment to help put New Yorkers experiencing homelessness on a path towards permanent housing and stability and building a safer subway system for all.” 

 

“Every New Yorker deserves a permanent home and today’s milestone is a first step toward that goal,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “Today’s announcement is a product of multiagency coordination underway including robust city-state partnerships working together to execute the Subway Safety Plan and homeless outreach work. Thank you to all the community-based organizations doing outreach work every day.”

 

“This administration is already delivering on its promise to make a real difference in the lives of our most vulnerable New Yorkers, and we’re proud of the significant progress we’ve made over such a short period of time,” said New York City Department of Social Services (DSS) Commissioner Gary P. Jenkins. “The unprecedented investments in dedicated resources coupled with an all-hands-on-deck approach to addressing unsheltered homelessness has helped over 1,300 New Yorkers take the first step toward stabilizing their lives. The support of our agency and state partners has been key to the effective implementation of our strategic efforts to address a long, intractable crisis and achieving these results. Most importantly, we are grateful for our compassionate outreach teams that work around the clock to engage and build trust with our fellow New Yorkers in need, encouraging them to come inside and receive the high-quality services they deserve.”

 

“The NYPD is proud to be a part of this innovative, multiagency effort to ensure that no New Yorker is left behind,” said New York City Police Department (NYPD) Commissioner Keechant L. Sewell. “Our collective response to homelessness, and its fundamental causes, is rooted in both compassion and a can-do spirit to makes things better, to help connect our city’s most vulnerable populations with the services they deserve, and to improve life for all New Yorkers. This is our solemn pledge as our NYPD officers continue working day and night to prevent and combat crime and maintain public safety in our great city.”

 

“Meeting the needs of unhoused people on our subways and streets, who often face complex health, mental health, and social needs, is some of the most challenging work we do as city. Getting these fellow New Yorkers connected with services and shelter should be easier,” said New York City Department of Health and Mental Hygiene (DOHMH) Commissioner Dr. Ashwin Vasan. “This pioneering approach is finally making inroads at getting our neighbors linked to the supports that will help them recover and thrive. We are proud to be part of this effort with our partner agencies.”

 

“Vulnerable New Yorkers deserve to live with dignity, access to health care, and housing that includes basic facilities. The subway isn’t a home that lives up to that standard,” said Janno Lieber, chair and CEO, Metropolitan Transportation Authority (MTA). “We welcome Mayor Adams’ commitment to engage compassionately with those who would otherwise be forced to use the transit system as a shelter of last resort.”

 

As part of the Subway Safety Plan, the city is providing outreach services at all 24 end-of-line stations every night and throughout the subway system every day. At some EOL stations, enhanced outreach is provided overnight through joint response efforts that include DSS, DOHMH, NYPD, MTA, and community-based providers in high-need locations across the city. The city also partners with the state’s Safe Options Support Outreach Teams, which consist of outreach workers and clinicians to connect people to ongoing Critical Time Intervention services. 

 

Last month, Mayor Adams announced unprecedented investments in high-quality services and resources dedicated to helping unsheltered New Yorkers transition off the streets, and out of the subway system, and move into more stable housing. As part of his focus to help those experiencing homelessness, the mayor allocated an additional $171 million a year, beginning in Fiscal Year 2023, to aggressively expand and enhance outreach efforts and specialized resources, including safe havens, stabilization beds, and Drop-in Centers — the largest investment made by any city administration in street outreach and targeted low-barrier programs.

 

Governor Hochul Proposes Additional Action on State Gun Laws in Wake of Deadly Mass Shooting at Texas Elementary School

 Governor Hochul: "How does an 18-year-old purchase an AR-15 in the State of New York, State of Texas? That person's not old enough to buy a legal drink. I want to work with the legislature to change that. I want it to be 21. I think that's just common sense."

Directs State Police to Increase Visibility at Schools Out of an Abundance of Caution, Convenes Emergency Meeting of School Safety Improvement Team 

Provides Update on Gun Seizures Following Formation of Interstate Task Force on Illegal Guns in January 

State Police Illegal Gun Seizures Up 60 Percent Per Month, Have Conducted 299 Gun Tracing Investigations Resulting in Leads in 22 States 

Nearly 4,000 Guns Seized by All New York Law Enforcement Agencies in 2022

 Governor Kathy Hochul today proposed additional action to strengthen and close loopholes in state gun laws in the wake of a horrific mass shooting in Texas that claimed the lives of at least 21 people - including 19 elementary school children. Out of an abundance of caution, Governor Hochul is directing State Police to increase visibility at schools in their patrol areas statewide. This increased presence includes check-ins at schools to be conducted by both uniform and plainclothes members. This effort will continue through the end of the school year.

Earlier this morning, Governor Hochul convened an emergency meeting of the state's School Safety Improvement Team (SSIT), which includes the State Police, State Education Department, Division of Homeland Security and Emergency Services and the Division of Criminal Justice Services. The meeting was held to ensure that everything possible is being done to support school safety across the state. The SSIT was created in 2013 following the tragedy at Sandy Hook Elementary School. The team works to support the safety of schools and ensure that each has the proper security protocols and procedures in place.

Governor Hochul also directed flags to remain at half-staff to honor the victims of the Texas shooting. Flags will remain at half-staff until 12 PM on Monday, May 30.

"The horrific shooting of 19 children and two teachers in Texas, not even two weeks after the mass murder of ten New Yorkers in Buffalo, is yet another infuriating reminder of the plague of gun violence facing our nation," Governor Hochul said. "These are steps we shouldn't have to take, but I am convening an emergency meeting of the state's School Safety Improvement Team and directing State Police to increase visibility at schools to make sure we are doing everything in our power to prevent the next tragedy. My administration will continue working to strengthen the gun laws in our state and put an end to these horrific acts, so that everyone—from schoolchildren to those shopping for groceries to those visiting houses of worship—can live without fear that their lives will be cut short by a weapon of war."

Last week, in direct response to the white supremacist act of terror that claimed 10 lives at a supermarket in Buffalo, Governor Hochul unveiled a comprehensive plan to combat the steady rise in domestic terrorism and violent extremism, strengthen state gun laws and crack down on social media platforms that host and amplify content that promotes and broadcasts violent acts.

The package included the issuing to two key Executive Orders. The first Executive Order will establish a new unit within the Office of Counterterrorism dedicated solely to the prevention of domestic terrorism, while also establishing a dedicated State Police unit to track domestic violent extremism through social media. The second Executive Order will require State Police to file for an Extreme Risk Protection Order (ERPO) under New York State's Red Flag Law whenever they have probable cause to believe that an individual is a threat to themselves or others.

As part of the package, Governor Hochul is also pushing a series of legislative measures designed to help law enforcement investigate and prevent gun-related crimes. The Governor is proposing new legislation to close the "other gun" loophole by revising and widening the definition of a firearm, making more guns subject to various preexisting firearm laws. Governor Hochul is working with the Legislature to pass two bills to address and streamline the investigation of gun-related crimes. The first would set forth a process to require semiautomatic pistols manufactured or delivered to licensed dealers in New York to be microstamping-enabled. The second piece of legislation would strengthen gun reporting protocols by requiring all law enforcement agencies to report the recovery of any crime gun within 24 hours of their discovery.

Governor Hochul has prioritized strengthening coordination between law enforcement agencies at all levels and across various states, convening the Interstate Task Force on Illegal Guns in January to share intelligence, tools, tactics and strategies for combating gun violence, especially as it relates to trafficking firearms between different states. The Task Force is comprised of more than 50 law enforcement representatives from nine northeastern states.

Glencore Entered Guilty Pleas To Foreign Bribery And Market Manipulation Conspiracies

 

Swiss-Based Firm Agrees to Pay Over $1.1 Billion

 Merrick B. Garland, the United States Attorney General, Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Vanessa Roberts Avery, U.S. Attorney of the District of Connecticut, Luis Quesada, Assistant Director of the Federal Bureau of Investigation’s Criminal Investigative Division, and Gary Barksdale, Chief Postal Inspector of the United States Postal Inspection Service, announced that Glencore International A.G. (Glencore) pled guilty in the Southern District of New York to violations of the Foreign Corrupt Practices Act (FCPA).  In addition, as part of a separate resolution, Glencore Ltd., pled guilty in the District of Connecticut to a commodity price manipulation conspiracy.  Together, Glencore and Glencore Ltd., both part of a multi-national commodity trading and mining firm headquartered in Switzerland, agreed to pay over $1.1 billion to resolve the government’s investigations into bribery and commodity and price manipulation.   These guilty pleas are part of coordinated resolutions with criminal and civil authorities in the U.S., U.K., and Brazil.

Attorney General Merrick B. Garland said:  “The rule of law requires that there not be one rule for the powerful and another for the powerless; one rule for the rich and another for the poor.  The Justice Department will continue to bring to bear its resources on these types of cases, no matter the company and no matter the individual.”

U.S. Attorney Damian Williams said:  “The scope of this criminal bribery scheme is staggering.  Glencore paid bribes to secure oil contracts.  Glencore paid bribes to avoid government audits.  Glencore bribed judges to make lawsuits disappear.  At bottom, Glencore paid bribes to make money—hundreds of millions of dollars.  And it did so with the approval, and even encouragement, of its top executives.  The criminal charges filed against Glencore in the Southern District of New York are another step in making clear that no one – not even multinational corporations—is above the law.”

Assistant Attorney General Kenneth A. Polite, Jr. said: “Glencore’s guilty pleas demonstrate the Department’s commitment to holding accountable those who profit by manipulating our financial markets and engaging in corrupt schemes around the world.  In the foreign bribery case, Glencore International A.G. and its subsidiaries bribed corrupt intermediaries and foreign officials in seven countries for over a decade. In the commodity price manipulation scheme, Glencore Ltd. undermined public confidence by creating the false appearance of supply and demand to manipulate oil prices.”

U.S. Attorney Vanessa Roberts Avery said: “Glencore’s market price manipulation threatened not just financial harm, but undermined participants’ faith in the commodities markets’ fair and efficient function that we all rely on.  This guilty plea, and the substantial financial penalty incurred, is an appropriate consequence for Glencore’s criminal conduct, and we are pleased that Glencore has agreed to cooperate in any ongoing investigations and prosecutions relating to their misconduct, and to strengthen its compliance program company-wide.  I thank both our partners at the U.S. Postal Inspection Service for their hard work and dedication in investigating this sophisticated set of facts and unraveling this scheme, and the Fraud Section, with whom we look forward to continuing our fruitful partnership of prosecuting complex financial and corporate criminal cases.

FBI Assistant Director Luis Quesada said:  “Today’s guilty pleas by Glencore entities show that there is no place for corruption and fraud in international markets.  Glencore engaged in long-running bribery and price manipulation conspiracies, ultimately costing the company over a billion dollars in fines. The FBI and our law enforcement partners will continue to investigate criminal financial activities and work to restore the public’s trust in the marketplace.”

USPIS Chief Postal Inspector Gary Barksdale said:  “The idea of fair and honest trade is at the bedrock of American commerce. It is insult to our shared traditions and values when individuals and corporations use their power, wealth, and influence to stack the deck unfairly in their own favor.  The resulting guilty plea by Glencore Limited demonstrates the tenacity of the U.S. Postal Inspection Service and its law enforcement partners in holding criminals accountable who try to enrich themselves by undermining the forces of supply and demand.”

The FCPA Case

According to the Information filed in the Southern District of New York, statements made in court, as well as other publicly-filed documents in this case:

Glencore, acting through its employees and agents, engaged in a conspiracy for over a decade to pay more than $100 million to third-party intermediaries, while intending that a significant portion of these payments would be used to pay bribes to officials in several countries, including Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela, and the Democratic Republic of the Congo (DRC).

Between approximately 2007 and 2018, Glencore and its subsidiaries caused approximately $79.6 million in payments to be made to intermediary companies in order to secure improper advantages to obtain and retain business with state-owned and state-controlled entities in West Africa, including Nigeria, Cameroon, Ivory Coast, and Equatorial Guinea. Glencore concealed the bribe payments by entering into sham consulting agreements, paying inflated invoices, and using intermediary companies to make corrupt payments to foreign officials. For example, in Nigeria, Glencore and Glencore’s U.K. subsidiaries entered into multiple agreements to purchase crude oil and refined petroleum products from Nigeria’s state-owned and state-controlled oil company. Glencore and its subsidiaries engaged two intermediaries to pursue business opportunities and other improper business advantages, including the award of crude oil contracts, while knowing that the intermediaries would make bribe payments to Nigerian government officials to obtain such business. In Nigeria alone, Glencore and its subsidiaries paid more than $52 million to the intermediaries, intending that those funds be used, at least in part, to pay bribes to Nigerian officials.

In the DRC, Glencore admitted that it conspired to corruptly offer and pay approximately $27.5 million to third parties, while intending for a portion of the payments to be used as bribes to DRC officials, in order to secure improper business advantages. Glencore also admitted to bribery of officials in Brazil and Venezuela. In Brazil, the company caused approximately $147,202 to be used, at least in part, as corrupt payments for Brazilian officials. In Venezuela, Glencore admitted to conspiring to secure improper business advantages by paying over $1.2 million to an intermediary company that made corrupt payments for the benefit of a Venezuelan official.

In July 2021, a former senior trader in charge of Glencore’s West Africa desk for the crude oil business pled guilty to one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering.

Under the terms of the plea agreement, which remains subject to Court approval, Glencore pled guilty to one count of conspiracy to violate the FCPA, agreed to a criminal fine of $428,521,173, and acknowledged criminal forfeiture liability in the amount of $272,185,792. Glencore also had charges brought against it by the U.K.’s Serious Fraud Office (SFO) and reached separate parallel resolutions with the Brazilian Ministério Público Federal (MPF) and the Commodity Futures Trading Commission (CFTC). Under the terms of the plea agreement, the department has agreed to credit the company over $256 million in payments that it makes to the CFTC, to the Court in the U.K. as well as to authorities in Switzerland, in the event that the company reaches a resolution with Swiss authorities within one year.

The department reached its agreement with Glencore based on a number of factors, including the nature, seriousness, and pervasiveness of the offense conduct, which spanned over a 10-year period, in numerous countries, and involved high-level employees and agents of the company; the company’s failure to voluntarily and timely disclose the conduct to the department; the state of Glencore’s compliance program and the progress of its remediation; the company’s resolutions with other domestic and foreign authorities; and the company’s continued cooperation with the department’s ongoing investigation. Glencore did not receive full credit for cooperation and remediation, because it did not at all times demonstrate a commitment to full cooperation, it was delayed in producing relevant evidence, and it did not timely and appropriately remediate with respect to disciplining certain employees involved in the misconduct. Although Glencore has taken remedial measures, certain of the compliance enhancements are new and have not been fully implemented or tested to demonstrate that they would prevent and detect similar misconduct in the future, necessitating the imposition of an independent compliance monitor for a term of three years.

The Commodity Price Manipulation Case

According to court documents filed in the District of Connecticut, Glencore Ltd. operated a global commodity trading business, which included trading in fuel oil. Between approximately January 2011 and August 2019, Glencore Ltd. employees (including those who worked at Chemoil Corporation, which was majority-owned by Glencore Ltd.’s parent company and then fully-acquired in 2014) conspired to manipulate two benchmark price assessments published by S&P Global Platts (Platts) for fuel oil products, specifically, intermediate fuel oil 380 CST at the Port of Los Angeles (Los Angeles 380 CST Bunker Fuel) and RMG 380 fuel oil at the Port of Houston (U.S. Gulf Coast High-Sulfur Fuel Oil). The Port of Los Angeles is the busiest shipping port in the U.S. by container volume. The Port of Houston is the largest U.S. port on the Gulf Coast and the busiest port in the U.S. by foreign waterborne tonnage.

As part of the conspiracy, Glencore Ltd. employees sought to unlawfully enrich themselves and Glencore Ltd. itself, by increasing profits and reducing costs on contracts to buy and sell physical fuel oil, as well as certain derivative positions that Glencore Ltd. held. The price terms of the physical contracts and derivative positions were set by reference to daily benchmark price assessments published by Platts—either Los Angeles 380 CST Bunker Fuel or U.S. Gulf Coast High-Sulfur Fuel Oil—on a certain day or days plus or minus a fixed premium. On these pricing days, Glencore Ltd. employees submitted orders to buy and sell (bids and offers) to Platts during the daily trading “window” for the Platts price assessments with the intent to artificially push the price assessment up or down.

For example, if Glencore Ltd. had a contract to buy fuel oil, Glencore Ltd. employees submitted offers during the Platts “window” for the express purpose of pushing down the price assessment and hence the price of the fuel oil that Glencore Ltd. purchased. The bids and offers were not submitted to Platts for any legitimate economic reason by Glencore Ltd. employees, but rather for the purpose of artificially affecting the relevant Platts price assessment so that the benchmark price, and hence the price of fuel oil that Glencore Ltd. bought from, and sold to, another party, did not reflect legitimate forces of supply and demand.

According to court documents, between approximately September 2012 and August 2016, Glencore Ltd. employees conspired to manipulate the price of fuel oil bought from, and sold to, a particular counterparty, Company A, through private, bilateral contracts, by manipulating the Platts price assessment for Los Angeles 380 CST Bunker Fuel. Between approximately January 2014 and February 2016, Glencore Ltd. employees also undertook a “joint venture” with Company A, which involved buying fuel oil from Company A at prices artificially depressed by Glencore Ltd.’s manipulation of the Platts Los Angeles 380 CST Bunker Fuel benchmark. Finally, between approximately January 2011 and August 2019, Glencore Ltd. employees conspired to manipulate the price of fuel oil bought and sold through private, bilateral contracts, as well as derivative positions, by manipulating the Platts price assessment for U.S. Gulf Coast High-Sulfur Fuel Oil.

A former Glencore Ltd. senior fuel oil trader, Emilio Jose Heredia Collado, of Lafayette, California, pled guilty in March 2021 to one count of conspiracy to engage in commodities price manipulation in connection with his trading activity related to the Platts Los Angeles 380 CST Bunker Fuel price assessment. Heredia’s sentencing is scheduled for June 17, 2022.

Glencore Ltd. pleaded guilty, pursuant to a plea agreement, to one count of conspiracy to engage in commodity price manipulation. Under the terms of Glencore Ltd.’s plea agreement regarding the commodity price manipulation conspiracy, which remains subject to court approval, Glencore Ltd. will pay a criminal fine of $341,221,682 and criminal forfeiture of $144,417,203. Under the terms of the plea agreement, the department will credit over $242 million in payments that the company makes to the CFTC. Glencore Ltd. also agreed to, among other things, continue to cooperate with the department in any ongoing investigations and prosecutions relating to the underlying misconduct, to modify its compliance program where necessary and appropriate, and to retain an independent compliance monitor for a period of three years.

A number of relevant considerations contributed to the department’s plea agreement with Glencore Ltd., including the nature and seriousness of the offense, Glencore Ltd.’s failure to fully and voluntarily self‑disclose the offense conduct to the department, Glencore Ltd.’s cooperation with the department’s investigation, and the state of Glencore Ltd.’s compliance program and the progress of its remediation.

A sentencing control date was scheduled in the Southern District of New York on October 3, 2022, before United States District Judge Lorna G. Schofield, who presided over Glencore’s guilty plea today.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.

State Senator Gustavo Rivera - Senate Majority Advances Legislation to Make Prescription Drugs More Affordable

 Yesterday, the Senate Democratic Majority advanced legislation to improve the accessibility and affordability of prescription drugs for all New Yorkers. The proposed bills would reduce the cap on cost-sharing for insulin from $100 to $30 per month, assist seniors with prescription fees, and make all third-party discounts, vouchers, and financial assistance for prescription drugs made on behalf of the insured individual applicable to their co-payment, deductible, co-insurance, and out-of-pocket maximum. Given the new legislation, seniors will now be eligible for the Elderly Pharmaceutical Insurance Coverage Program if they have enrolled in the Medicare Part D insurance plan and any other comparable plan. 

In addition to cost-saving initiatives, the legislation will also promote prescription drug awareness and provide information on cost-increase measures. One bill requires pharmaceutical companies to offer a sixty-day notice of their intent to raise the cost of a prescription drug if the increase is greater than 10%. In 2016, when Mylan increased the cost of their two-package Auto-Injectors from $100 to $600 per package, thousands of Americans were left wondering how they could afford this life-saving drug. There are at least 90,000 emergency room visits due to anaphylactic shock every year.

“The high cost of insulin is putting the lives of diabetic New Yorkers at risk, especially those who are financially strained, today we are reducing the cap on cost-sharing for insulin from the current $100 to $30 per month. The other bills I'm sponsoring in this package will make crucial reforms to third-party payments for co-pays and reform the eligibility criteria for the EPIC program to help a greater number of our seniors afford their prescriptions. I'd like to thank Majority Leader Andrea Stewart-Cousins for supporting this legislation that will continue to expand access and affordability of prescription drugs for New Yorkers,” Chair of the Senate Committee on Health, Senator Gustavo Rivera.

The legislation that was passed by the Senate Majority included: 

•   Cap On Cost Sharing For Insulin: This bill, S.1413, sponsored by Senator Gustavo Rivera, reduces the cap on cost-sharing for insulin from the current $100 per insulin per month to $30 per month.

•   Elderly Pharmaceutical Insurance Coverage Program Eligibility: This bill, S.2535A, sponsored by Senator Gustavo Rivera, sets the eligibility criteria for the Elderly Pharmaceutical Insurance Coverage Program. The bill specifies that participants must be enrolled in Medicare part D or any other public or private drug plan that successfully proves the coverage is similar to or better than the defined standards coverage under the Medicare Part D prescription drug benefit. 

•   Third-Party Payments For Co-Pays: This bill, S.5299A, sponsored by Senator Gustavo Rivera, requires any third-party payments, financial assistance, discount, voucher, or other price reduction instrument for out-of-pocket expenses made on behalf of an insured individual for the cost of prescription drugs to be applied to the insured's deductible, copayment, coinsurance, out-of-pocket maximum, or any other cost-sharing requirement when calculating such insured individual's overall contribution to any out-of-pocket maximum or any cost-sharing requirement.

•   Substitution Of Biosimilar Medications: This bill, S.8465, sponsored by Senator Gustavo Rivera, will make the existing temporary law a permanent law that allows pharmacists to substitute biosimilar medications under certain conditions.  

•   Sixty-Day Notice Drug Cost Increase: This bill, S.7499B, sponsored by Senator Julia Salazar, requires manufacturers to provide at least 60 days notice of their intent to raise wholesale prescription drug costs to the Department of Financial Services if the increase is 10% or more of the total cost of the drug.  

•   Wholesale Drug Importation: This bill, S.1737, sponsored by Senator James Skoufis, will create a state program to import prescription drugs from other countries at a lower cost. In this program, a wholesaler is allowed to import drugs that meet U.S. F.D.A. standards from only suppliers who are regulated and authorized under the laws of their country for distribution and sale only in New York.

•   Drug Failure Protocols: This bill, S.8191, sponsored by Senator Neil Breslin, requires a utilization review agent to follow certain rules when establishing a step therapy protocol. It requires that the protocol accepts any attestation submitted by the insured's health care professional stating that a required drug has failed as prima facie evidence that the required drug has failed.

•   Patient RX Information and Choice Expansion Act (PRICE Act): This bill, S.4620C, sponsored by Senator Neil Breslin, requires health plans to furnish in real-time cost, benefit, and coverage data to the enrollee, his or her health care provider, or the third-party of his or her choosing.

•   Thirty-Day Supply For State Disaster Emergencies: This bill, S.4856, sponsored by Senator Elijah Reichlin-Melnick, requires policies and contracts that provide coverage for prescription drugs to include coverage of an immediate additional thirty-day supply of a prescription drug during a state disaster emergency. 

•   Prescription Drugs From Out Of State: This bill, S.5489 sponsored by Senator Samra Brouk, authorizes pharmacies to receive prescription drugs from other pharmacies outside of New York in the case of a public health emergency, guaranteeing patient access to medications.

•   Price-Gouging For Medicine: This bill, S.3081A, sponsored by Senator Julia Salazar, prohibits selling a drug subject to a shortage for an unconscionably excessive price. The bill adds medicine to the list of goods and services that can be classified as possibly being subject to price gouging. The classification of medicines falling under this section of the law will be determined by the publicly reported drug shortages reported by the U.S. Food and Drug Administration. 

•   Prohibits the Application of Fail-First or Step Therapy Protocols: This bill, S.5909, sponsored by Senator Todd Kaminsky, prohibits the application of fail-first or step therapy protocols to coverage for the diagnosis and treatment of mental health conditions.

Team AOC - Baby formula crisis: Explained

 

This weekend, Alexandria hosted an Ask Me Anything session on Instagram where someone asked about the baby formula shortage. 

So, we wanted to take a moment to share via email what’s going on and how we ended up here. 

First, we want to acknowledge that this has been a scary event for families with newborns. We see you.

Before we get into how we got here, is there a solution or end in sight for the baby formula shortage? 

Yes, help is on the way. This week, the White House authorized “Operation Fly Formula,” which means that the U.S. is working with allies to begin imports of baby formula that meet U.S. safety standards to make up for the current shortage.  

The first shipment of over a million bottles just arrived from Switzerland.

The White House also invoked the Defense Production Act last week to kickstart domestic production as well. In addition, the House passed a $28 million baby formula shortage bill despite 192 Republicans voting against the bill (only 12 supported it).¹  

But, it’s important that we understand HOW we got here and how this happened to prevent it from happening again. 

So what happened here?

In short, corporate monopolies are a major reason behind the baby formula shortage. 

Did you know that the ENTIRE U.S. infant formula market is controlled by just three or four companies? 

That means that if something happens to one supplier, the entire supply is crippled. And that’s exactly what happened. This is actually a growing structural problem within huge parts of our food system overall, but it hit infant formula in a big way. 

Here’s how it went down:

One of those companies, Abbott Labs, had long been warned by the FDA about increasingly dangerous conditions in their formula factories that were endangering the safety of U.S. infant formula supply. 

However, while Abbott produced a huge portion of U.S. infant formula, infant formula was only a tiny percent of their revenue (less than 5%). So they didn’t really pay as much attention, investment, or care to their formula business. It wasn’t their moneymaker. 

Abbott let their factories get worse, FDA inspections continued to show flags, and whistleblowers came forward stating Abbott was falsifying their records and ignoring consumer reports that babies were getting sick. 

In February, Abbott recalled some of its most popular formulas after four babies became sick with bacterial infections after consuming some of their products. 

Around this time, the FDA inspections of Abbott’s formula factories got so bad that after repeated attempts and warnings, the factory had to be shut down. It was just too dangerous. 

So Abbott, which controlled 48% of the market, halted production. 

To be clear, the underlying forces causing this shortage are rampant throughout our entire food system. 

Alexandria sounded the alarm long before this crisis. 

During a congressional hearing, Alexandria warned that corporate monopolies are threatening our food supply, risking price gouging, and hurting wages. Our leaders have been warned about this for a long time. As Alexandria said, “I hate being right about these things.”

It’s shocking that just a few Big Ag and factory farm companies control major sectors of our food supply, like meat processing or soybean production. 

If you’d like to dig into this more and other topics from the last few weeks, please watch and share Alexandria’s Instagram Live.

Our movement has always been about listening to the alarm bells, learning from our past mistakes to prevent future crises, and holding corporations accountable.

We can do better, and that’s what Alexandria and our movement is fighting for. 

Thanks for being in it alongside us. 

Team AOC

1 - Washington Post

NYS Office of the Comptroller Tom DiNapoli: Syracuse City School District Employees Pay Over $31,000 for Submitting False Time Cards

 

Program Coordinator Inflated Paychecks for Time Not Worked

 New York State Comptroller Thomas P. DiNapoli, United States Attorney Carla B. Freedman and Terry Harris, Special Agent in Charge, U.S. Department of Education Office of Inspector General (ED OIG), Eastern Region announced today that Syracuse City School District teachers Jason Cecile and Nichole Murray must pay the United States $31,872.90 to resolve allegations that they submitted false timecards in connection with the school district’s Twilight Program.

"These individuals shamelessly stole from the very students they were supposed to be helping. My thanks to U.S. Attorney Freedman, and our other partners in law enforcement, for their dedication to ensuring justice is served and that the stolen money is recouped,” said Thomas DiNapoli, New York State Comptroller. 

“The settlement announced today, as well as the related state prosecutions, hold Mr. Cecile and Ms. Murray accountable for stealing money from a federally funded program intended to benefit at-risk high schoolers,” said United States Attorney Carla B. Freedman. “We will not tolerate fraudulent conduct that could undermine an important safety net for struggling students.” 

“Mr. Cecile and Ms. Murray not only abused their positions of trust for personal gain, but did so at the expense of the very ones they promised to serve – school children. That is unacceptable,” said Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “The OIG will continue to aggressively pursue those who misappropriate education funds for their own purposes. America’s students and taxpayers deserve nothing less.”

Beginning in the 2015-2016 school year, Syracuse City School District (SCSD) received federal grant funds administered by the U.S. Department of Education to operate a high school dropout-prevention program known as the Twilight Program. SCSD offered the Twilight Program at various high schools after regular school hours, from 3:00 p.m. until 7:00 p.m. Students enrolled in the Twilight Program were given the opportunity to make up classes to accumulate enough credits to earn their high school diplomas. SCSD teachers staffed the Twilight Program and received extra pay for teaching classes to Twilight Program participants.

Jason Cecile was the Twilight Program Coordinator at Henninger High School. Nichole Murray was a teacher in the Henninger Twilight Program. As the coordinator, Cecile controlled the Twilight teaching schedule. He instructed certain Twilight staff members to claim hours on their timecard based on the amount of money that was available in the Twilight budget, not on the number of hours they worked.  Cecile admitted he habitually left Twilight early and submitted timecards that overreported the number of hours he worked. Murray admitted that she taught one Twilight class, and generally left Henninger at 5:00 p.m., but submitted timecards attesting that she worked until 6:00 p.m., 6:30 p.m., or 7:00 p.m. Both Murray and Cecile signed their timecards and submitted them for payment, falsely attesting to their accuracy.   

As part of the settlement agreements, Cecile will pay $20,754.15.  Murray will pay $11,118.75. 

This investigation was triggered in part by a whistleblower lawsuit filed under the qui tam provision of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $2,001.37 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 5:19-cv-1188 (DNH/TWD).

In a related case prosecuted by the Onondaga County District Attorney’s Office, Jason Cecile pled guilty to Corrupting the Government in the 3^rd Degree, a felony, and Nichole Murray pled guilty to Disorderly Conduct. As part of their criminal plea agreements, Murray and Cecile agreed to resign from their employment at SCSD.