Governor Hochul, Retail Workers and Small Business Owners Celebrate New Landmark Protections Against Organized Retail Theft

 New Felony Penalties Created for Assaulting a Retail Worker

$5 Million Tax Credit Available to Business Owners for Security Cameras and Other Anti-Theft Expenses

$40.2 Million for Dedicated Retail Theft Teams for New York State Police and Local Law Enforcement

Governor Kathy Hochul today joined a coalition of frontline retail workers and small business owners to celebrate new protections against organized retail theft that were signed into law with the FY25 State Budget. This comprehensive approach puts more power in the hands of law enforcement, prosecutors and business owners – targeting every area of vulnerability. The new protections include increased criminal penalties for anyone who assaults a retail worker elevating it from a misdemeanor to a felony, and includes a $5 million tax credit to help small business owners invest in added security measures. Governor Hochul’s FY25 State Budget again makes historic investments in public safety and builds on three years of progress driving down crime statewide.

"I promised the retail workers and our small business owners that I would protect them - and we are doing just that," Governor Hochul said. "Here in New York, we are standing up to organized retail theft, backing our businesses and their workers with the full force of the law, and restoring that sense of security and peace of mind so they can focus on what they do best."

Governor Hochul's focus on organized retail theft comes as crime data shows a significant spike in these crimes over the past six years. Larceny offenses in New York City have spiked by 51 percent between 2017 and 2023. Robberies, grand larceny and petit larceny in New York City are up by 86 percent during that same time period.

The FY25 State Budget includes Governor Hochul’s five-point plan to fight organized retail theft:

• Increases criminal penalties for anyone who assaults a retail worker by elevating it from a misdemeanor to felony. Any person who causes physical injury to a retail worker performing their job will be subject to this new felony.
• Allowing prosecutors to combine the value of stolen goods when they file larceny charges. The Budget allows retail goods from different stores to be aggregated for the purposes of reaching a higher larceny threshold when stolen under the same criminal scheme.
• Making it illegal to foster the sale of stolen goods to go after third-party sellers. A person will be found guilty if they use any website or physical location to sell stolen goods.
• $40.2 million for dedicated Retail Theft Teams within State Police, District Attorneys’ offices and local law enforcement, including 100 New York State Police personnel dedicated to fighting organized retail theft.
• $5 million tax credit to help small businesses invest in added security measures such as cameras. To help alleviate the burden on small businesses for additional security measures, the Budget creates a $3,000 tax credit for any small businesses who spends the threshold amount of money on retail theft prevention measures.

Governor Hochul’s commitment to fighting retail theft in the FY25 Budget builds on core strategies that have driven violent crime to historic lows. As a result of programs like the Gun Involved Violence Elimination Initiative (GIVE), which provides funding to local law enforcement in 21 counties outside of New York City, gun crimes have seen dramatic drops. Last quarter, GIVE regions had the lowest number of shootings on record, and New York City had the lowest number of shootings in any quarter since the pandemic. Since 2021, murders statewide are down 30 percent.

NYC PUBLIC ADVOCATE'S STATEMENT ON THE RENT GUIDELINES BOARD PRELIMINARY VOTE

 

"Neither the Rent Guidelines Board nor the mayor who appointed it seems to understand the reality of the housing crisis our city is confronting and the dire circumstances New Yorkers face in trying to find and stay in their homes. Their definition of 'reasonable seems written' by the real estate industry. Under this administration, which professes to care about affordability, we continue to see the largest proposed rent increases in decades. 

"With Albany’s housing deal and so many tenants left unprotected, and providing new tools available for landlords to raise rents, tenants simply cannot afford these proposed increases – and owners can’t squeeze more money from people who just don’t have it. Instead, government and banks should crack down on lending to bad landlords and on insurance companies harming responsible ones. 

 
"I’m sure the Board will hear the stories of struggle from people across the five boroughs in the coming weeks, and I implore them to actually listen." 

NYS PARKS EMPLOYEE PLEADS GUILTY TO OFFICIAL MISCONDUCT

 

New York State Inspector General Lucy Lang announced the guilty plea of Daniel Blamowski, an engineer employed by the New York State Office of Parks, Recreation and Historic Preservation (OPRHP), who fraudulently collected thousands of dollars in unearned state wages.

Blamowski, 52, of Orchard Park, pleaded guilty yesterday in New York State Supreme Court before the Honorable Debra Givens to one count of Official Misconduct, a class A misdemeanor under the New York State Penal Law. As part of his plea, Blamowski will make full restitution to the State of New York.

Following a referral from OPRHP, the Inspector General’s investigation established that Blamowski was engaged in unauthorized employment for a private development firm while on state payroll. The investigation revealed that between December 2020 and July 2021, Blamowski performed at least 92 hours of work for this private firm while on duty for OPRHP and submitted certified timesheets reflecting full days worked for the State. In total, Blamowski submitted sixteen inaccurate timesheets during the course of his unauthorized employment, while continuing to receive unearned wages paid by the State.

“For one hundred years, the public servants who comprise what is now New York State’s Office of Parks, Recreation and Historic Preservation have led the nation in safeguarding and preserving our state’s precious natural assets for all to enjoy,” said New York State Inspector General Lucy Lang. “Integrity in the allocation of resources is crucial to maintaining and providing access to the 360,000 acres of our state’s parks, trails, beaches, historic sites, and campgrounds. My office and the dedicated staff of OPRHP are committed to these principles and to identifying those who would undermine them.”

“Together, we will continue to prosecute any public employee who steals from the taxpayers of New York. In addition to pleading guilty today, this defendant must pay back the wages he was paid by New York State Parks while also working for another employer,” said Acting District Attorney Michael J. Keane. “I want to thank the Offices of the New York State Inspector General and the New York State Office of Parks, Recreation and Historic Preservation for their work in this investigation. I encourage anyone with information on suspected time theft or other corruption within our state agencies to contact my office’s Public Integrity Unit or the Inspector General’s Office.”

“OPRHP is committed to the highest standards of ethics and integrity,” said Office of Parks, Recreation and Historic Preservation Commissioner Pro Tempore Randy Simons. “I commend staff who brought this to the attention of authorities. We are grateful to the Inspector General’s Office and the Erie County District Attorney’s Office for their thorough investigation and prosecution of this matter.”

Inspector General Lucy Lang thanked the members of her staff responsible for conducting this investigation, including Investigative Counsel Jonathan Schultz, Investigative Auditor Meghan O’Dell, and Chief Investigator Martin Stanford, under the supervision of Deputy Inspector General for the Western Regional Office Jeffrey Hagen.

Inspector General Lang also expressed her gratitude to OPRHP for their prompt referral and partnership on this investigation and to Acting District Attorney Michael J. Keane and his staff for their work in diligently prosecuting this matter.

Housing Lottery Launches For 138 Bruckner Boulevard In Mott Haven, The Bronx

 

The affordable housing lottery has launched for 138 Bruckner Boulevard, a 12-story mixed-use building in Mott Haven, The Bronx. Developed by JCS Realty, the structure yields 447 residences. Available on NYC Housing Connect are 135 units for residents at 130 percent of the area median income (AMI), ranging in eligible income from $105,875 to $218,010.

Amenities include assigned parking spaces, bike storage lockers, elevator, and security cameras. Residences include name-brand kitchen countertops and finishes. Tenants are responsible for electricity, which includes stove and heat.

At 130 percent of the AMI, there are eight studios with a monthly rent of $3,088 for incomes ranging from $105,875 to $161,590; 93 one-bedrooms with a monthly rent of $3,298 for incomes ranging from $113,075 to $181,740; and 34 two-bedrooms with a monthly rent of $3,939 for incomes ranging from $135,052 to $218,010.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than June 24, 2024.

City Parks Foundation - Rally for Parks on May 7th in Union Square!

 

Urgent! Mayor Adams’ FY25 Executive Budget retains cuts of $55M from NYC Parks, eliminating 600+ essential jobs, putting our parks at risk. Without immediate action, parks will suffer from neglect, becoming dirtier and less safe. 

Join us at the Rally For Parks on Tuesday, May 7 at 6pm in Union Square Park to say NO to budget cuts and YES to safe, clean, green parks. Stop by the City Parks Foundation table to learn more about how we’re working with our partners and communities to #SaveNYCParks.

For more ways to help, join the Play Fair coalition, a 500+ member organization and advocacy campaign elevating parks issues citywide. 

Register for the rally and don’t miss this critical event!

Brooklyn Resident Pleads Guilty to Conspiracy to Unlawfully Export Dual-Use Electronics Used in Russian Military Drones

 

Brooklyn Company Received Over $250,000 from Sanctioned Russian Entity to Purchase and Export Electronic Components

In federal court in Brooklyn, Nikolay Grigorev pleaded guilty to conspiring to defraud the United States for his role in an illicit export control scheme to ship electronic components from the United States to companies affiliated with the Russian military.  The proceeding was held before United States District Judge Nicholas G. Garaufis.  When sentenced, Grigorev faces up to five years in prison.  Co-defendants Nikita Arkhipov and Artem Oloviannikov remain at large.

Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, United States Deputy Attorney General; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; James Smith; Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (DOC-BIS-OEE), announced the guilty plea.

“Grigorev admitted that he conspired to supply Russia with U.S.-sourced, dual-use technologies, knowing full well that his actions violated export controls and sanctions designed to stop those items from being sent to Russia and used in the production of drones like those found on the battlefields in Ukraine,” stated United States Attorney Peace.  “Today’s guilty plea reaffirms that my Office will pursue anyone who violates our export controls and threatens our national security.”

“In pleading guilty, the defendant admitted he conspired to smuggle over $250,000 worth of sensitive American drone technology to Russian companies fueling Putin’s unlawful war against Ukraine,” stated Deputy Attorney Monaco.  “Swift action by agents and prosecutors unraveled a web of fake orders and wire transfers to prevent over 11,500 electronic components from making their way to the Russian war machine. The Justice Department will continue to hold accountable those who defy our sanctions and export controls to support Russia’s unprovoked and unjustified aggression in Ukraine – whether they’re based in New York City or overseas.”

“When I visited Ukraine last November, I saw firsthand the death and destruction that such drones and other Russian weapons of war have caused and heard from our counterparts about the importance of stopping the illicit flow of technology to support the Russian war machine,” stated Assistant Attorney General Olsen.  "This plea reinforces our commitment to hold accountable those who violate our laws and our determination to undermine the Russian government’s unjustified campaign of aggression against the Ukrainian people.”

“Nikolay Grigorev intentionally avoided export controls by masking his business’s production and shipment of technologies designed to support Russian military operations, especially its ongoing attacks in Ukraine,” stated FBI Assistant Director-in-Charge Smith.  “These sanction violations intentionally subvert those laws designed to protect international trade and illustrate the defendant’s malintent in this scheme. The FBI prioritizes all threats to our national security and will disrupt any entity attempting to covertly collaborate with our adversaries”

 “Deliberately circumventing U.S. export controls to enable production of drones that support Russia’s full-scale invasion of Ukraine and the indiscriminate bombing of Ukrainian citizens and critical infrastructure will not be tolerated,” stated DOC-BIS-OEE Special Agent-in-Charge Carson.  “This guilty plea demonstrates the direct impact that OEE investigations have in supporting U.S. national security interests.”

 As alleged in the indictment, Grigorev utilized a Brooklyn-based corporate entity, Quality Life Cue LLC (“QLC”), to facilitate the scheme.  QLC was registered and controlled by Grigorev and Oloviannikov, with Arkhipov utilizing a QLC email account from Russia.  Through QLC, the defendants procured dual-use electronic components for entities in Russia involved in the development and manufacture of drones for the Russian war effort in Ukraine.  The most notable of these entities is SMT-iLogic, a Russia-based technology company.  On or about May 19, 2023, SMT-iLogic was also added to the Specially Designated Nationals and Blocked Person List (“SDN List”).  According to the Office of Foreign Assets Control, SMT-iLogic is known to be involved in the supply chain for producing Russian military drones used in Russia’s war against Ukraine.  SMT-iLogic is associated with an entity known as the Special Technology Centre (“STC”).  STC is a Russia-based entity that was added to the SDN List on or about December 29, 2016, for assisting the foreign military intelligence agency of Russia’s armed forces, commonly known by the acronym “GRU,” in conducting signals intelligence operations.  On or about January 4, 2017, STC was added by the U.S. Department of Commerce, Bureau of Industry and Security to the Entity List for supporting the GRU.  STC was involved the production of the “Sea Eagle Orlan 10 UAV,” a drone vehicle that has been involved in Russian military operations in Ukraine.  STC’s largest customer is Russia’s Ministry of Defense, which paid STC the equivalent of nearly $99 million between February and August of 2022. 

Between October 22, 2021 and February 22, 2022, QLC accounts controlled by Grigorev received wire transactions from SMT-iLogic totaling approximately $272,830.  These funds were used almost entirely to make payments to a Brooklyn-based electronics distributor (the “Brooklyn Company”) or pay Grigorev’s credit cards, which he used to buy goods from the Brooklyn Company.  In email and chat communications, the defendants explicitly discussed their efforts to circumvent U.S. export restrictions, including through the use of front companies in third countries, such as Kazakhstan, and they also forwarded invoices listing SMT-iLogic as the recipient of semiconductors and other electronic components purchased from the Brooklyn Company. In addition, in December 2022, in response to negative press coverage of SMT-iLogic, Grigorev forwarded a news article to his co-defendants and stated, “they are already writing about your (sic) guys in articles about how Russia is getting American components for drones.” In June 2023, a court-authorized search warrant of Grigorev’s residence in Brooklyn resulted in the successful seizure of over 11,500 electronic components that had been purchased from the Brooklyn Company and were awaiting unlawful export to Russia.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Artie McConnell and Kate Mathews are in charge of the prosecution, with assistance from Litigation Analyst Mary Clare McMahon. Natalya Savransky, formerly of the National Security Division’s Counterintelligence and Export Control Section, also provided valuable assistance.

These actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.

Long Island Woman Arrested For Selling Misbranded And Adulterated Weight Loss Drugs, Including Ozempic, On TikTok

 

Isis Navarro Reyes Allegedly Sold Misbranded Adulterated Weight Loss Drugs to Customers Without a License to Administer Such Drugs

Damian Williams, the United States Attorney for the Southern District of New York, and Fernando P. McMillan, the Special Agent in Charge of the New York Field Office of the Office of Criminal Investigations of the U.S. Food and Drug Administration (“FDA”), announced the unsealing of a criminal Complaint in Manhattan federal court charging ISIS NAVARRO REYES, a/k/a “Beraly Navarro,” with receipt of misbranded drugs in interstate commerce, dispensing misbranded drugs while held for sale, conspiracy to introduce and deliver for introduction misbranded drugs in interstate commerce, dispensing of misbranded drugs while held for sale, and smuggling.  As alleged in the Complaint, from about November 2022 through about January 2024, REYES marketed, advertised, and sold various misbranded and adulterated weight loss drugs, including Ozempic, Mesofrance, and Axcion, to followers on social media.  REYES, who is not licensed by law to administer prescription medication, obtained the weight loss drugs that she held for sale from Central and South America.  None of the weight loss drugs that REYES sold were approved for sale or dispensing in the United States by the FDA.  REYES was arrested this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Barbara Moses. 

U.S. Attorney Damian Williams said: “As alleged, Isis Navarro Reyes used her social media following to sell weight loss drugs unapproved for distribution in the United States.  Reyes’s alleged unlawful dispensing of these drugs caused significant, life-threatening injuries to some victims and put all of her victims in harm’s way.  Recently, public interest in semaglutide and weight loss drugs has skyrocketed, and criminals have sought to take advantage of this interest for their ends.  With this, the first misbranding and adulteration charges brought pertaining to semaglutide, Reyes will be held accountable for her conduct, and criminals should think twice before trying to sell weight loss drugs without a license to do so.  This case makes clear that extreme caution and physician consultation should always be taken when purchasing medications, especially on social media.” 

FDA Office of Criminal Investigations Special Agent in Charge Fernando P. McMillan said: “Selling misbranded prescription drugs, particularly injectable products that should be sterile, in the U.S. marketplace puts all consumers’ health at risk.  We will continue to pursue and bring to justice those who jeopardize the public’s health by selling misbranded drugs.” 

As alleged in the Complaint:[1]

From about November 2022 through about November 2023, ISIS NAVARRO REYES, using TikTok, posted dozens of videos about weight loss drugs including, but not limited to, Ozempic, Axcion, and Mesotherapy.     

In her videos, REYES showcases the weight loss drugs, instructs viewers how frequently they should be used, describes how they should be taken or injected, and claims to describe her personal experiences — for example, side effects and effectiveness in causing weight loss — in detail.  In several of these videos, REYES tells viewers that they can contact her via an encrypted messaging application on her cellphone (the “Cellphone”) if they would like to order the weight loss drugs that she is selling. 

On about October 11, 2023, REYES posted a video pertaining to Ozempic.  In this video, REYES demonstrates how to inject oneself with the medication and shares her experience using the drug.  Toward the end of the video, REYES instructs viewers to contact her on the Cellphone if they are interested in having her obtain Ozempic for them.  A screenshot from this TikTok post is below: 

In about December 2023, a law enforcement officer acting in an undercover capacity (the “UC”) began messaging REYES on the Cellphone.  From about December 2023 through about January 2024, the UC and REYES exchanged several messages concerning REYES’s supply of Ozempic and the UC’s interest in purchasing Ozempic from REYES.  On about January 7, 2024, pursuant to instructions from REYES, the UC sent $375 to a Zelle account in the name of “Isis Reyes Navarro.”  REYES did not ask the UC to provide a prescription, and the UC did not provide one.  On about January 9, 2024, REYES dropped off a package intended for the UC at a post office located in or around Shirley, New York.

On about January 12, 2024, law enforcement received a package addressed to the UC from REYES (the “UC Parcel”) in Manhattan.  The UC Parcel contained a box containing what purported to be Ozempic.[2]  Photos of packaging containing the purported Ozempic that REYES mailed the UC are below:

All of the labeling accompanying the Ozempic in the UC Parcel was in Spanish, in violation of FDA regulations.

In about November 2022, a woman who had viewed content posted to REYES’s TikTok account (“Victim-1”) called the Cellphone for the purpose of ordering weight loss drugs.  The individual who answered Victim‑1’s call identified herself as “Isis Navarro Reyes.”  In about February 2023, Victim-1 purchased 30 injections of Mesofrance, an injectable weight loss drug, from REYES.  REYES mailed the Mesofrance to Victim-1’s residence in White Plains, New York.  REYES did not ask Victim-1 to provide a prescription, and Victim-1 did not provide one. 

Between about February 2023 and about June 2023, Victim-1 self-administered 28 injections.  In an audio message that she recorded and transmitted, REYES provided Victim-1 with instructions on how to administer the drug.  REYES told Victim-1, among other things, to inject herself every three days.  All of the labeling of the vials that contained the Mesofrance that Victim‑1 purchased from REYES were in a language other than English, in violation of FDA regulations.

On about July 13, 2023, Victim-1 began developing lesions from administering the Mesofrance.  Victim-1 sent messages to REYES about her injuries and sent photos.  In about October 2023, Victim-1’s physician diagnosed her with a mycobacterium abscessus infection, which is frequently caused by the contamination of medications, medical products, and medical devices with the mycobacterium abscessus bacterium.  In about November 2023, the New York Department of Health tested one of the vials of Mesofrance that Victim-1 purchased from REYES.  The substance tested positive for mycobacterium abscessus, a species of rapidly growing, multidrug-resistant, nontuberculous mycobacteria.

REYES, 36, of Shirley, New York, is charged with one count of smuggling, which carries a maximum sentence of 20 years in prison; one count of receipt of misbranded drugs in interstate commerce, which carries a maximum sentence of one year in prison; one count of dispensing of a misbranded drug while held for sale, which carries a maximum sentence of one year in prison; one count of conspiracy to introduce and deliver for introduction a misbranded drug in interstate commerce, which carries a maximum sentence of one year in prison; and two counts of dispensing of misbranded drugs while held for sale, each of which carry a maximum sentence of one year in prison.

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

Mr. Williams praised the outstanding investigative work of the FDA Office of Criminal Investigations, the U.S. Postal Service Office of the Inspector General, and the Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.

This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorney Brandon C. Thompson is in charge of the prosecution.

The charges 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 herein constitute only allegations, and every fact described herein should be treated as an allegation.

[2] To date, there is no evidence that the Ozempic that REYES sold the UC is not genuine.

Former Defense Contractor Pleads Guilty to Attempted Espionage

 

John Murray Rowe Jr., 65, of Lead, South Dakota, pleaded guilty to one count of attempted delivery of national defense information to a foreign government and three counts of willful communication of national defense information.

According to court documents, Rowe, who is originally from Massachusetts, was employed for nearly 40 years as a test engineer for multiple cleared defense contractors. In connection with his employment, Rowe held various national security clearances from SECRET to TOP SECRET//SCI (Sensitive Compartmented Information) and worked on matters relating to U.S. Air Force electronic warfare technology, among other things. After committing a number of security violations and revealing a devout interest in Russian affairs, Rowe was identified as a potential insider threat and terminated from employment.

In March 2020, he met with an undercover FBI agent who was posing as an agent of the Russian government. During this meeting, Rowe disclosed national defense information classified as SECRET that concerned specific operating details of the electronic countermeasure systems used by U.S. military fighter jets, among other things. Over the course of the next eight months, Rowe exchanged over 300 emails with the purported Russian agent, confirming his willingness to work for the Russian government and discussing his knowledge of classified information relating to U.S. national security. In one email, Rowe explained, “If I can’t get a job here then I’ll go work for the other team.” In another email, Rowe disclosed classified national defense information concerning the U.S. Air Force. In September 2020, Rowe had a second in-person meeting with the undercover FBI agent. During this meeting, Rowe again disclosed classified national defense information.

Rowe was arrested on Dec. 15, 2021, and was ordered detained pending trial. During his pretrial detention at the Philadelphia Federal Detention Center, Rowe made at least three unauthorized disclosures of the same classified national defense information concerning the U.S. Air Force to individuals not authorized to receive it – namely, his brother, son and realtor, which were captured on recorded prison calls.

Sentencing is set for Aug. 22, and Rowe faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case.

Assistant U.S. Attorney Sarah Wolfe for the Eastern District of Pennsylvania and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Section are prosecuting the case. Additional assistance was provided by the U.S. Attorney’s Office for the District of South Dakota and the FBI Minneapolis Field Office.