CITY LAUNCHES FAIR SHARE NYC; FREE RESOURCES TO HELP SMALL BUSINESS OWNERS APPLY FOR FEDERAL RELIEF FUNDS

 

 Mayor Bill de Blasio and NYC Department of Small Business Services (SBS) Commissioner Jonnel Doris today launched Fair Share NYC, a targeted campaign to connect small business owners to federal relief funds. Federal funds include the Paycheck Protection Program (PPP), a forgivable loan to help businesses keep their workforce employed, and the Economic Injury Disaster Loan (EIDL) Advance, a grant of up to $10,000 for businesses in low-income communities.

“PPP loans can be a lifeline for hard-hit small businesses in all five boroughs, and New York City will do everything we can to connect these businesses to the resources they deserve,” said Mayor Bill de Blasio. “I encourage every New Yorker to shop local and help these community anchors get back on their feet in the weeks and months to come.”

 

“New York City’s economic recovery must be inclusive, so it is imperative that we help the diverse local businesses throughout the City survive and thrive," said Deputy Mayor for Housing and Economic Development Vicki Been. “Fair Share NYC provides critical resources to ensure our small businesses have a fair shot in receiving the needed federal funds."

 

“Small businesses are the lifeblood of New York City’s economy," said J. Phillip Thompson, Deputy Mayor for Strategic Policy Initiatives and Co-Chair of the Racial Inclusion and Equity Taskforce. “Fair Share NYC will help these businesses secure the federal dollars they need to stay open and keep thousands of New Yorkers employed.”

 

“Small businesses are the backbone of our economy and SBS is committed to keeping them resilient,” said Jonnel Doris, Commissioner of the NYC Department of Small Business Services (SBS). “Meeting this goal requires that we all work together, and we are grateful to our federal partners for bringing these critical dollars to the City’s neediest business owners.”

 

Fair Share NYC aims to provide technical assistance to businesses seeking to access $284.45 billion in PPP loans that was recently approved in the Coronavirus Response and Relief Supplemental Appropriations Act of 2021. This new package provides additional funding for businesses that did not receive PPP money in the first round, especially minority- and women-owned businesses. It also earmarks funding for “very small” businesses and lending through community-based lenders.

 

The City is offering free resources through Fair Share NYC to help businesses secure loans. Resources include:

• Daily webinars to review the PPP and EIDL Advance programs and offer guidance on how to apply;
• One-on-one assistance to find the best financing option for each business and get help filling out the application;
• Connections to PPP lenders; and
• Information about additional federal resources.

 

Resources will be available in multiple languages, including Spanish and Chinese. Small businesses should visit nyc.gov/ppp or call 888-SBS-4NYC for more information.

EDITOR'S NOTE:

Yes Mr. Mayor let's talk about Fair Share when it comes to the Homeless population. The Bronx has only 18 percent of the NYC population, but the Bronx has 37 percent of the Homeless population.  DHS is not going by its FAIR SHARE of housing the homeless citywide, and is forcing more single adult homeless males into the Bronx Mr. Mayor.

 

MAYOR DE BLASIO ANNOUNCES NEW YORK CITY WILL CANCEL TRUMP ORGANIZATION CONTRACTS

 

 Mayor Bill de Blasio today announced that the City of New York is taking steps to terminate three Trump Organization agreements with the City after last week’s deadly insurrection at the U.S. Capitol.

The Administration will be notifying the Trump Organization that the City will begin the process to cancel its agreements to operate the Central Park Carousel, Wollman and Lasker skating rinks, and Ferry Point Golf Course in accordance with the steps outlined in the contracts. 

 

“The President incited a rebellion against the United States government that killed five people and threatened to derail the constitutional transfer of power,” said Mayor Bill de Blasio. “The City of New York will not be associated with those unforgivable acts in any shape, way or form, and we are immediately taking steps to terminate all Trump Organization contracts.”

 

“Mr. Trump’s incitement of violence at our Capitol was an abomination,” said Corporation Counsel James E. Johnson. “In light of last week’s attack on our Capitol and our democracy, we have concluded that it is in the best interests of New Yorkers for the City to commence the process of cancelling these contracts and terminating its business ties with the Trump Organization.” 

  

The PGA recently cancelled the 2022 PGA Championship at a Trump golf course.  In its contract with the Trump Organization to run Ferry Point Golf Course, the City called for a championship level golf course that would attract major championship events.

 

The termination process for each location is detailed in each of the City agreements. The Carousel is currently closed and termination will be effective 25 days after the City’s termination notice is delivered. The Agreement for the Wollman and Lasker Rinks terminates after 30 days written notice. The process for terminating the Ferry Point Golf Course is more detailed and is expected to take a number of months.

  

COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION

STREAMLINED PROCESS REQUIREMENTS

SBA is collecting the requested information in order to make a loan under SBA’s Economic Injury Disaster Loan Program to the qualified entities listed in this application that are impacted by the Coronavirus (COVID-19). The information will be used in determining whether the applicant is eligible for an economic injury loan. If you do not submit all the information requested, your loan cannot be fully processed.

The estimated time for completing this entire application is two hours and ten minutes

 

Click Here To Apply

 

The Applicant understands that the SBA is relying upon the self-certifications contained in this application to verify that the Applicant is an eligible entity, and that the Applicant is providing this self-certification under penalty of perjury pursuant to 28 U.S.C. 1746 for verification purposes.

 

If you have questions about this application, please contact our Customer Service Center at 1-800-659-2977 or (TTY: 1-800-877-8399) DisasterCustomerService@sba.gov 

ASSEMBLYMAN JEFFREY DINOWITZ STATEMENT ON DOMESTIC VIOLENCE ALLEGATIONS AGAINST STATE SENATOR SEPÚLVEDA

 

After news reports that Bronx State Senator Luis Sepúlveda has been arrested on domestic violence charges, Assemblyman Jeffrey Dinowitz has issued the following statement:

 

“There are unfortunately too many families in our borough who have experienced domestic violence in their households. If it is true that State Senator Sepúlveda committed these horrible acts, then he must resign his elected office. I urge anyone who is experiencing domestic violence to know that they are not alone and there are people available who can help.”

 

New York City offers a 24-Hour Domestic Violence Hotline at 1-800-621-HOPE (1-800-621-4673). There may be resources available to help, including temporary housing, emergency shelter, and supportive services for yourself and your children.

 

For LGBTQ domestic violence issues, NYC Gay & Lesbian Anti-Violence Program can be contacted at 212-714-1141. For people with disabilities, Barrier-Free Living can be contacted at 212-533-4358.

Governor Cuomo Updates New Yorkers on State's Progress During COVID-19 Pandemic - JANUARY 12, 2021

 

8,926 Patient Hospitalizations Statewide

1,492 Patients in the ICU; 909 Intubated

Statewide Positivity Rate is 7.73%

164 COVID-19 Deaths in New York State Yesterday

 Governor Andrew M. Cuomo today updated New Yorkers on the state's progress during the ongoing COVID-19 pandemic.

"New York is continuing to fight COVID-19 across the state by increasing our testing capacity, ensuring the hospitals have enough space, and vaccinating New Yorkers as quickly as possible," Governor Cuomo said. "The numbers over the past two weeks suggest you could see a flattening after a spike from Thanksgiving, Christmas and the New Year. We said we would hope and aspire for a flattening in late January, and you could argue that you start to see a flattening now. Positivity in almost every region is down from the high during this holiday spike."

A post-Thanksgiving increase that grew through Christmas and the New Year and starting to flatten.

Today's data is summarized briefly below:

• Total Vaccine Doses Administered - 645,037
• Test Results Reported - 196,671
• Total Positive - 15,214
• Percent Positive - 7.73%
• Patient Hospitalization - 8,926 (+281)
• Patients Newly Admitted - 918
• Hospital Counties - 56
• Number ICU - 1,492 (+66)
• Number ICU with Intubation - 909 (+18)
• Total Discharges - 111,141 (+541)
• Deaths - 164
• Total Deaths - 32,007

Acting Manhattan U.S. Attorney Announces Settlement Of Civil Forfeiture Claims Against Over $50 Million Laundered Through Black Market Peso Exchange

 

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Timothy J. Shea, the Acting Administrator of the U.S. Drug Enforcement Administration (“DEA”), and Susan A. Gibson, the Special Agent in Charge of the New Jersey Division of the DEA, announced today that the United States has settled a civil forfeiture action against assets of Sefira Capital LLC (“Sefira”) and 31 subsidiary corporations, which own high-end commercial and residential real estate throughout the United States.  The Government’s complaint, which was filed on January 8, 2021, alleged that the defendant corporations accepted millions of dollars of narcotics proceeds laundered through the shadow financial system commonly known as the Black Market Peso Exchange, for investment in various real estate ventures.  

In the stipulation of settlement filed with U.S. District Judge Andrew L. Carter Jr. today, which is still subject to approval by the Court, the defendant corporations agree to forfeit $29 million to resolve the Government’s claims, representing approximately $22.5 million previously seized from Sefira and its subsidiaries, and an approximately $6.5 million payment in lieu of the forfeiture of certain real estate interests.  As part of the settlement, Sefira agreed to conduct reasonable due diligence on future investors, and not to accept investment funds from any source other than the actual investor.

In a related civil forfeiture action, the Government filed today a proposed judgment of forfeiture with U.S. District Judge George B. Daniels, covering $23.2 million seized from Hampus Assets, Inc., and Kaunas Assets Corp. in connection with their acceptance of millions of dollars of narcotics proceeds laundered through the Black Market Peso Exchange.  Hampus Assets and Kaunas Assets previously entered into a settlement consenting to the forfeiture of the funds, agreeing to conduct reasonable due diligence on future deposits into bank accounts under their control, and to refrain from conducting certain cross-border money transfers.

Acting Manhattan U.S. Attorney Audrey Strauss said:  “The Black Market Peso Exchange facilitates the laundering of vast sums of drug trafficking proceeds generated in the U.S., enabling the conversion of U.S. dollars into the currencies of drug trafficking organizations’ countries.  The forfeiture filings announced today signal not only the surrender of more than $50 million in laundered proceeds, but also the agreement of corporate defendants to exercise due diligence to ensure they are not assisting in or facilitating money laundering.”

DEA Acting Administrator Timothy J. Shea said:  “The alleged laundering of millions of dollars of illicit proceeds shows the incredible profit generated by ruthless drug cartels who only care about money and power, not the suffering of Americans or devastated communities left behind.  The DEA’s unique ability to infiltrate money laundering organizations is essential to illuminating the global networks used to repatriate drug proceeds around the globe.  Money is the lifeblood of the cartels, and DEA, together with our law enforcement partners, is committed to identifying, targeting, and prosecuting these organizations to protect the American people.”

The Government lawsuits alleged as follows:

The Black Market Peso Exchange allows drug trafficking organizations to transfer narcotics proceeds from the United States to the country in which they operate while concealing the source and nature of the funds.  Drug trafficking organizations will sell bulk United States currency earned from their drug operations in the U.S. to money laundering brokers at a discount, in exchange for payment in the home country or countries of the drug trafficking organization in their local currency.  To finance the transactions, the brokers will purchase bulk currency in the local currency of the drug trafficking organizations, typically from individuals who wish to transfer money to the United States while avoiding the banking system.  The brokers pay these individuals by depositing the U.S. dollar drug proceeds into U.S.-based shell accounts, and then transferring them to accounts controlled by the individuals, or for their benefit.

As part of an investigation of international money laundering, the DEA used confidential sources to facilitate transactions on the Black Market Peso Exchange to uncover persons engaged in illegal activity and develop evidence for criminal prosecutions.  As part of the DEA undercover operation, confidential sources bought narcotics proceeds on the Black Market Peso Exchange, and then transferred those funds to U.S.-based accounts in the United States at the direction of money laundering brokers.

Sefira is a Florida-based boutique investment company that has raised over $100 million in capital from various investors (“Sefira Investors”) to invest in real estate projects primarily in the Southeastern United States.  From 2016 to 2019, Sefira or its subsidiaries received millions of dollars in criminal proceeds from certain Sefira Investors as part of an effort by drug trafficking organizations and others to launder the criminal proceeds through the Black Market Peso Exchange.  

Between January 2018 and January 29, 2019, the DEA transferred millions of dollars of narcotics proceeds to certain Sefira subsidiaries at the instruction of money-laundering brokers. These funds were wired from DEA undercover accounts that were not titled in the name of, or under the control of, any particular Sefira Investor.  Sefira accepted these funds without inquiring as to the source of ownership of these accounts or funds.

In addition, millions of dollars of criminal proceeds were used to fund other Sefira Investors’ investments in Sefira.  Sefira ignored similar red flags for those investments, including discrepancies between the purported investment amount and the actual amount Sefira received from Sefira Investors, as well as discrepancies between the purported Sefira Investors and the entities sending the investments to Sefira.

Between July 2018 and February 2019, Hampus Assets received millions of dollars from a shell company used to transfer narcotics proceeds on the Black Market Peso Exchange.  These deposits came in large amounts in rapid succession and did not follow an observable business pattern.  In October 2018, Hampus Assets transferred a portion of these proceeds to Kaunas Assets Corp.

Ms. Strauss praised the outstanding investigative work of Special Agents from the DEA New Jersey, Enforcement Group 2.  

Governor Cuomo Announces Proposal to Create a Pathways Pledge for New York State Employers as Part of 2021 State of the State

 

Companies Would Pledge to Create More Inclusive Workforces and Provide More Workforce Development Opportunities

Builds on Governor Cuomo's Historic $175 Million Workforce Development Initiative

Governor Andrew M. Cuomo and the blue-ribbon Reimagine New York Commission today announced a proposal to create a Pathways Pledge for New York State employers to create more inclusive workforces and provide more workforce development opportunities as part of the 2021 State of the State. The pledge commits both public and private-sector employers to reforming their talent recruitment, investment, and promotion policies to foster more equitable workforces after the COVID-19 pandemic.

"COVID-19 has exacerbated existing inequalities across our society, and the economy is no exception. Historic numbers of New Yorkers are out of work, and lower and middle-income households are being hit the hardest. Public and private employers have critical roles to play closing that gap," Governor Cuomo said. "We need to expand who they employ, invest in training and retraining and work with workforce development partners to get jobs to the jobless. That's why we are asking employers across the state to take the Pathways Pledge to help provide opportunity to all New Yorkers, not just those who are already well off."

To date, 16 companies have made the pledge, affecting over 120,000 workers in New York, and the state aims to triple those commitments in the next year. The Pledge builds on Governor Cuomo's progress advancing workforce development in New York State, including the $175 million Workforce Development Initiative, the first Governor's Office of Workforce Development, and ensuring that a majority of New York State civil service positions hire based on skills, not degrees.    

Participating employers will agree to report quarterly on their progress in implementing their Pledge commitments. They will agree to take actions including:

• Invest in current worker retraining or skills development for promotions and/or higher wages, including providing college financial support or supporting new skills training on the job; 
• Create new apprenticeship programs to provide pathways for underrepresented populations;
• Commit to exploring additional workforce supports for low-income workers or trainees, e.g., childcare and transportation subsidies;
• Commit to exploring skills-based hiring models by removing, as appropriate, high school or post-secondary degree requirements for new hires;
• Scale relationships with existing nontraditional workforce development partners by providing funding and/or expanded staff volunteer time to facilitate recruiting, interviews, and mentorship opportunities for new prospective employees; and/or
• Develop new relationships with New York State workforce development providers serving underserved communities, including State University of New York, City University of New York, Boards of Cooperative Educational Services, and/or nontraditional workforce development organizations.

The 16 founding employers participating in the Pathways Pledge are IBM, Chobani, Con Edison, Google, JPMorgan Chase, Mastercard, AIG, Memorial Sloan Kettering, Montefiore, Globalfoundries, TEKsystems, Loretto, Cognizant, Clarkson University, Berkeley College, and Athenex. 

In addition to new commitments from New York's leading employers, Governor Cuomo will also take the following State actions through his $175 million Workforce Development Initiative, inspired by the work of the Reimagine New York Commission. The COVID-19 health emergency has pushed a tremendous number of New Yorkers out of work. The crisis has also magnified inequalities, with lower- and middle-income households experiencing the greatest economic losses. The following actions will seek to expand job pathways and opportunities:

• Launch NYS Workforce Scholarships to allow low-income New Yorkers to attend high-quality training programs free-of-cost to gain skills leading to well-paid jobs. This initiative builds on Governor Cuomo's leadership to make college free for middle class New York families by creating non-college pathways vital to help New Yorkers move up the ladder.
• Expand SUNY For All Free Online Training so New Yorkers can enroll in additional employment certification programs for quality jobs in high-demand areas like IT, cyber, and healthcare, building on the success of hybrid learning models. 
• Expand the Employment Training Incentive Program retraining tax credit to further incentivize New York businesses to train and upskill employees and interns. This tax incentive will support training and wraparound services to help employees who are furloughed or out-of-work due to the COVID-19 pandemic. This will also provide internship opportunities to young New Yorkers. 

Reimagine New York Commission Working Group Co-Chair and Former IBM Chair, President and CEO Ginni Rometty said, "Jump-starting New York's economic recovery depends on creating new career opportunities for those hit hardest by the pandemic, especially New Yorkers without a college degree. That's why I'm encouraging all New York companies to adopt the Pathways Pledge, which commits employers to hire people based on their skills, not just their degrees. The pledge also calls for retraining programs to help workers build the skills that matter most in a fast-changing digital economy. Committing to the Pathways Pledge is a way for companies to expand opportunity, make the workforce more inclusive, and put skills first in rebuilding New York's economy." 

  

Reimagine New York Commission Working Group Co-Chair and Former Infor Chairman and CEO Charles Phillips said, "In a rapidly evolving digital economy, it is now more important than ever for New Yorkers to be able to acquire new skills. Having spent my career in the technology industry, I have seen first-hand how innovation can require individuals to acquire new skills to succeed in the workplace. We must provide New Yorkers with increased access to job training and the financial support needed to pursue it; we must ensure that training programs in the state are high-quality and equip workers to succeed in their careers; and we must help workers to access the digital tools required to both receive training and participate in the workplace. The Reimagine New York Commission has advanced new policies and programs designed to help New Yorkers in each of these ways." 

  

Reimagine New York Commission Member and Per Scholas President and CEO Plinio Ayala said, "Per Scholas has been so honored and excited to participate in the Reimagine New York Commission to help New York build a successful economic recovery plan following the COVID-19 pandemic. We are encouraged by so many New York companies that are making a Pathways Pledge commitment to a more equitable and diverse workforce through worker upskilling and pre-employment training to ensure our labor force is prepared for in-demand jobs."

Reimagine New York Commission Member and Founder and CEO of Chobani Hamdi Ulukaya said, "As a founding member of the Pathways Pledge, Chobani has been creating opportunities for all New Yorkers no matter where they come from or their experience. The promises we're making today formalize an important mission—not just for this state but for the country. We must continue to do everything we can to break down the barriers to achieving the American Dream."  

Former CEO Of Real Estate Private Equity Investment Firm Charged With Securities Fraud

 

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of ERIC MALLEY, the founder and former chief executive officer of real estate private equity investment firm MG Capital Management L.P.  on charges of securities fraud and wire fraud for his role in a scheme to fraudulently induce hundreds of individuals to invest a total of more than $50 million in two real estate investment funds by, among other things, lying about his own prior experience and investment track record and about the nature and characteristics of those funds.  MALLEY was arrested this morning in New Canaan, Connecticut, on a criminal complaint (the “Complaint”) and will be presented before a magistrate judge in the Southern District of New York. 

Acting Manhattan U.S. Attorney Audrey Strauss said:  “Eric Malley allegedly promised his clients that they would reap the benefits of owning equity in Manhattan real estate through his time-tested, sophisticated, debt-free investment strategy.  As alleged, those promises were lies.  Malley lied about his prior funds’ existence and performance, and he lied in promising clients that the funds were free of debt and leased to prominent corporate tenants.  While his investors lost money, Malley enriched himself.  We will continue to work with our law enforcement partners to protect investors from these types of deceptive practices.”

FBI Assistant Director William F. Sweeney Jr. said:  “As alleged, Malley, acting as CEO of an investment firm he founded, solicited investors with material misrepresentations and lies pertaining to luxury residential real estate and several investment funds.  Ultimately, the investors, many of whom had entrusted Malley with all of their retirement savings, lost nearly everything.  Today’s action should serve as a reminder to fraudsters who seek to prey on unwitting investors that the FBI and our partners will not waver in our commitment to bring them to justice.”

As alleged in the Complaint unsealed today in Manhattan federal Court[1]:

MALLEY founded MG Capital Management L.P. (“MG Capital”) in approximately January 2013, and served as its chief executive officer (“CEO”) from that time until approximately December 2019.  MALLEY described MG Capital as an opportunity for investors to invest in luxury residential real estate properties through limited partnership interests, and formed two real estate investment funds, MG Capital Management Residential Fund III (“Fund III”) and MG Capital Management Residential Fund IV (“Fund IV”) (collectively, “the Funds”), in approximately February 2014 and September 2017, respectively.

In connection with marketing the Funds to investors, MALLEY touted two purportedly extremely successful prior funds he had formed, Fund I and Fund II.  MALLEY also assured investors that the Funds would be and were debt-free, and that the properties held by the Funds would be and were leased primarily to corporate tenants.  MALLEY’s representations about the existence and performance of Funds I and II were largely fabricated.  Furthermore, the Funds were not debt-free, but instead held mortgaged properties, and the properties that made up the Funds were almost entirely leased to individual, not corporate, tenants.

Investors in the Funds, many of whom invested the entirety of their retirement savings, lost all or almost all of their investments.  As to Fund III, in total, approximately 60 investors invested approximately $23 million.  Fund III incurred net operating losses of approximately $860,000, and its investors never received either distributions or a return of their investments.  MALLEY nevertheless distributed at least approximately $278,000 to himself in his capacity as general partner.  As to Fund IV, in total, approximately 275 investors invested approximately $35 million.  Fund IV incurred millions of dollars in losses, and MALLEY did not disclose those losses until approximately two years into Fund IV’s operation.

In or about mid-December 2019, MALLEY stepped down from his role as CEO of MG Capital.  Between in or about February 2020 and on or about March 31, 2020 – after MALLEY had become aware that the U.S. Securities and Exchange Commission (“SEC”) was investigating him – MALLEY accessed MG Capital’s server and deleted approximately 10,000 files from the server, including broker information and closing documents detailing the closing costs associated with acquisition of properties, which were used to obtain funding from the Funds’ administrators.

MALLEY, 50, of New Canaan, Connecticut, is charged with one count of securities fraud, which carries a maximum potential sentence of 20 years in prison, and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison.  The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Ms. Strauss praised the investigative work of the FBI and thanked the New York Regional Office of the U.S. Securities and Exchange Commission, which has separately filed a civil action against MALLEY and M.G. Capital Management.

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

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