Attorney General James Ends Harmful Labor Practices at One of Nation’s Largest Title Insurance Companies, Puts in Place Policies to Protect Workers

Old Republic Agrees to End Illegal Tactics Constraining Worker Mobility

AG James Continues to Expand Investigation of No-Poach Agreements, Other Anticompetitive Tactics in Various Industries, Protecting New York Workers 

 New York Attorney General Letitia James today announced an agreement with the Old Republic National Title Insurance Company that ends the company’s practice of using no-poach agreements to thwart labor competition. Under the agreement, Old Republic — one of the nation’s four largest title insurance companies — has agreed to a monetary payment of $1 million, to terminate any existing no-poach agreements, and to cooperate with Attorney General James’ ongoing investigations in this area.

“Workers are the lifeblood of New York, and New Yorkers are entitled to free and fair labor markets,” said Attorney General James. “For years, Old Republic stifled competition in the labor market, but this agreement ends the company’s illegal conduct, while putting all businesses on notice that no-poach agreements will not be tolerated in New York state. My office will continue to investigate no-poach agreements that potentially harm New York workers, and fight to end these anticompetitive practices once and for all.”

Old Republic issues title insurance policies either through agencies it owns or controls (directs) or through independent title insurance agencies that it appoints (agencies). Directs and agencies are competitors in the labor market, and compete for employees on the basis of salaries, benefits, and career opportunities.

A “no-poach” is an agreement among two or more companies not to solicit, recruit, or hire each other’s employees. In a well-functioning labor market, employers don’t need no-poach agreements and, instead, compete by offering higher wages or enhanced benefits to attract the most valuable talent for their needs. No-poach agreements reduce competition for employees and disrupt the normal compensation-setting mechanisms, to the detriment of the affected employees.

Attorney General James’ investigation concluded that Old Republic entered into no-poach agreements with agencies, and that these agreements effectively ended competition for employees between Old Republic and the agencies, potentially impacting New York workers. The investigation did not identify any procompetitive justifications for these agreements.

The agreement increases competition in the labor market and protects workers by:

• Ending Old Republic’s no-poach agreements with competitors: Old Republic has agreed to end all existing no-poach agreements, and discontinue the practice of entering into no-poach agreements.

• Cooperating with Attorney General James’ ongoing no-poach investigations: Old Republic has committed to substantial cooperation with the Office of the Attorney General’s efforts to investigate no-poach agreements in the title insurance industry.

Additionally, Old Republic is required to pay New York state a $1 million monetary payment.

State Senator Gustavo Rivera Hosts Back to School Event at Devoe Park With Congressman Espaillat

 

State Senator Gustavo Rivera brought with him three hundred book bags, and notebooks to give out for his back to school event. All were handed out before he left. Congressman Adriano Espaillat was also on hand as well as over a dozen various service providers, or entertainment for the children that were included in a circle of tables.

On hand were the Public Library, Legal help during the pandemic, Live On NY where you were able to sign up to donate your organs, a Dental Wellness table that gave out free checkups, the fire department with CPR training, A Girl Scout Troop, and several others. 

A view of the Devoe Park area, with the Fordham Hill Houses in the background. A line waiting to get a backpack, and also some of the other participants placed in a circle.  

Senator Rivera, with not quite the ambiance of Congresswoman Ocasio-Cortez asks these children which color backpack they wanted. 

Dental Wellness is important, and children were getting free dental screenings, with the approval of their parent. The Girl Scouts are in the background.

Congressman Adriano Espaillat was on hand to take photos with the children.

The congressman also posed with the bigger kids as State Senator Rivera waves as he gets his photo with Congressman Espaillat. 

Governor Hochul Announces Administration Appointments

 

Governor Kathy Hochul announced new appointments to her administration. 

"To build New York back better than it was before and deliver real change for New Yorkers, we need the best and brightest minds working together to solve the most important issues we face as a state," Governor Hochul said. "These talented individuals from diverse backgrounds have the skills, knowledge and experience that we need to move this state forward, and I look forward to working with them."

Jeff Lewis has been appointed Chief of Staff to the Governor. Prior to joining the Governor's Office, Mr. Lewis served in the Office of then-Lieutenant Governor Hochul for more than six years, first as Director of External Affairs and then as Chief of Staff. Mr. Lewis has also served as Finance Director at Recchia for Congress (NY-11) and in staff roles on the Democratic Congressional Campaign Committee and in the U.S. House of Representatives, where he worked for then-Representative Hochul (NY-26). His political career began with an internship in the Office of then-Erie County Clerk Hochul. He holds a Bachelor's degree in politics from New York University.

Linda Sun has been appointed Deputy Chief of Staff. Ms. Sun previously served as Deputy Superintendent for Intergovernmental Affairs & Chief Diversity Officer at the NYS Department of Financial Services. She has also served as Deputy Chief Diversity Officer and Director of Asian American Affairs for the NYS Executive Chamber, Director of External Affairs for Global NY at Empire State Development and Chief of Staff to NYS Assemblymember Grace Meng. Ms. Sun is the highest appointed Asian American in the administration and a first generation immigrant. She holds a Master's degree from Teachers College at Columbia University and a B.A. from Barnard College at Columbia University.

Melissa Bochenski has been appointed as Deputy Chief of Staff. She previously served as then-Lieutenant Governor Hochul's Deputy Chief of Staff. Prior to joining New York State, she worked as a Strategic Relations Analyst at M&T Bank. From 2011-2013, she served as an Executive Assistant and Office Manager to then-Representative Hochul (NY-26). Ms. Bochenski holds a Bachelor's degree in political science from Canisius College.

Julissa Gutierrez was appointed in early 2020 as Chief Diversity Officer for the State of New York and will continue to serve in this role under the Hochul administration. As Chief Diversity Officer, Ms. Gutierrez supports the Governor's programs and initiatives to increase diversity within the State's workforce and has already increased civic, economic and social empowerment in a variety of communities. In May 2021, Ms. Gutierrez was recognized by City & State New York where she was named #1 on their first MWBE Power 50 List. Ms. Gutierrez previously served as Deputy Director of Constituency Affairs in the Governor's office, in a number of roles at the National Association of Latino Elected and Appointed Officials Educational Fund and as Special Assistant to the Commissioner at the New York City Department of Youth and Community Development. Ms. Gutierrez is a Board Member of the New Immigrants Community Empowerment, a Trustee for the Queens Public Library and a Board Member of the Queens Public Library Foundation. She holds a Master's degree in Social Service Administration from the University of Chicago and a B.A. in International Relations with a Minor in Women's Studies from the University of Delaware.

Shirley Paul has been appointed Senior Advisor to the Governor. Prior to joining the Governor's office, she served as Assistant Director for Legislative Affairs at SUNY Systems Administration. Ms. Paul has worked in state government in various roles, including working with then-Lieutenant Governor Hochul as Senior Advisor and Counsel and as a Law Clerk in the NYS Court System. Ms. Paul started her career in public service in then Senator Joseph R. Biden's office. She is a member of several civic associations and professional organizations and was featured by City & State in their 2019 Class of Albany 40 Under 40 as a rising star in state government. Ms. Paul is a first generation Brooklynite of Haitian decent. She holds a Bachelor's degree in Political Science from Delaware State University, a Master's degree in Urban Planning and Administration from Brooklyn College and a Juris Doctorate from New York Law School.

Sinéad Doherty has been appointed Deputy Secretary for Executive Operations. Prior to joining the Governor's office, she served as Director of Operations for the California based children's non-profit, Good Tidings Foundation. Ms. Doherty worked on the Biden for America presidential campaign, supporting surrogate scheduling and advance in Iowa, after serving as the National Trips Director for the Amy For America campaign. She previously worked for then-Lieutenant Governor Hochul as Director of Operations, served as Confidential Assistant to then US Department of Health & Human Services Secretary Sylvia Mathews Burwell, and was Deputy Director of Advance for then House Democratic Leader Nancy Pelosi. She holds a bachelor's degree in international relations from Boston University.  

Padma Seemangal has been appointed Deputy Secretary for Policy Operations. Ms. Seemangal previously served as Director of Communications and Public Affairs at Global Strategy Group and as a Senior Advisor for then-Lieutenant Governor Hochul through the Empire State Fellows Program. She also served as Program and Communications Manager for Women Creating Change and Acting Executive Director of the Indo-Caribbean Alliance, Inc. She has served as a policy consultant for the Public Advocate for the City of New York and a team consultant for New York City Council Member Ritchie Torres and the New York City Department of Cultural Affairs. She holds a B.A. in English Literature Studies and Government from St. Lawrence University and a Master's degree in Urban Policy Analysis and Management from The Milano School for International Affairs at the New School.

Hazel Crampton-Hays has been appointed Press Secretary. Ms. Crampton-Hays most recently served as Press Secretary to New York City Comptroller Scott Stringer. Previously, she served in the Governor's Press Office, including as First Deputy Press Secretary. She holds a Bachelor's degree in Politics and Religion from Oberlin College.

Jelanie DeShong has been appointed Assistant Secretary for Intergovernmental Affairs. Mr. DeShong most recently served as Director of Government Relations for State University of New York Downstate Health Sciences University and previously as Director of Community Engagement for then-Lieutenant Governor Hochul. Mr. DeShong has spent almost a decade in senior roles at the state and local levels of government. Mr. DeShong is a first-generation Brooklynite of Grenadian heritage. He is a product of the City's public school system. Mr. DeShong is an active member of his community and lives in Flatbush, Brooklyn where he grew up.

Devan Cayea has been appointed Director of Strategic Planning and Scheduling. Prior to joining the administration, Mr. Cayea recently served on the transition team and in the office of Senator Alex Padilla (D-CA), is a former senior advisor and Director of National Strategic Planning for the Amy for America presidential campaign, and was the Director of Operations in Senator Klobuchar's Capitol Hill office. He also served on the Biden for America presidential campaign, coordinating national travel for Second Gentleman Doug Emhoff during the 2020 cycle. Mr. Cayeabegan his career as the Deputy Director of Scheduling and Advance for House Democratic Leader Nancy Pelosi (D-CA). Mr. Cayea holds a Bachelor's degree from American University.

Fohat Aird-Bombo has been appointed Director of Advance. Mr. Aird-Bombo previously served in the Office of then-Lieutenant Governor Hochul where he was the Director of Advance and Special Events. Mr. Aird-Bombo worked on the 2020 presidential campaign for Mike Bloomberg as the New York Regional Operations Director. His previous positions also included serving as Senior Advance Lead for the Speakers of the New York City Council, Melissa Mark-Viverito and Corey Johnson.Prior to that, he spent time working in the New York Public School system as the Director of Operations. Mr. Aird-Bombo, who was born in the Bronx and raised in Brooklyn returned to the Bronx in 2018 to purchase his first home with his husband, Andy.

Bank Insider Sentenced For Fraudulent Loan Scheme

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that HERODE CHANCY, who at the time of the offense was employed as a manager at a Manhattan branch of a national bank (“Bank-1”), was sentenced today to 30 months in prison for his role in a commercial loan fraud scheme for loans totaling over $1 million.  CHANCY’s sentence was imposed by United States District Judge Lewis J. Liman. 

U.S. Attorney Audrey Strauss said: “Bank employee Herode Chancy used fake businesses, doctored bank statements, and stolen identities in an effort to obtain over $1 million in commercial loans.  Now Chancy has rightly been sentenced to prison for his crime.  Prosecutions like this one should serve as notice to individuals in positions of trust at financial institutions that engaging in corrupt criminal conduct will lead to prosecution and prison.”

According to the Complaint, Indictment, and statements made in court:

From at least in or about March 2019 up to and including at least in or about March 2020, CHANCY and codefendant Adedayo Ilori conspired to fraudulently obtain business loans from a third-party commercial lender with the intent not to repay the loans – i.e., with the intent to “bust out” the loans.  CHANCY and Ilori together submitted eight fraudulent business loan applications for a total of $1,025,000 in business loans.  The business loan applications submitted by CHANCY and Ilori included doctored bank statements and listed the identities of other persons as the loan applicants, including stolen identities.  CHANCY and Ilori also opened bank accounts using the identities of those other persons in order to receive the loan payments from the third-party commercial lender.  CHANCY and Ilori subsequently conspired with codefendant Michael Albarella, another bank manager at Bank-1, to open a bank account using a stolen identity to launder approximately $200,000 of the expected proceeds of the loan scheme.  Albarella opened the bank account at Bank-1 using the stolen identity provided by CHANCY and Ilori, and Albarella accepted a $10,000 bribe to open the bank account.        

CHANCY and Ilori believed that the underwriter for the third-party commercial lender was participating in the scheme and agreed to pay the underwriter a “commission” for the underwriter’s role in the scheme.  In reality, however, the underwriter was an undercover law enforcement officer. 

In addition to the prison term, CHANCY, 41, of Bellerose, New York, was sentenced to two years of supervised release and ordered to forfeit $10,000 in fraudulent proceeds.

On August 5, 2021, Albarella was sentenced to six months in prison and three years of supervised release by Judge Liman.  Ilori is scheduled to be sentenced on October 13, 2021.

Ms. Strauss praised the outstanding investigative work of the New York FBI’s Eurasian Organized Crime Task Force and Homeland Security Investigation’s El Dorado Task Force. 

Governor Kathy Hochul Announces #VaxtoSchool Campaign to Drive COVID-19 Vaccination Rates Among School-Aged New Yorkers Statewide

 

New Website at ny.gov/vaxtoschool for Parents and Guardians with Ready-Made Resources for Schools and Localities Hosting #VaxtoSchool Events

Dedicated Instagram Channel, @Vaccinateny, to Provide Vaccine Education for School-Aged New Yorkers and Families

#VaxtoSchool Pop-Up Sites to Open in Areas with Low COVID-19 Vaccination Rates Among 12 to 17-Year-Olds and #VaxtoSchool Buses to Provide Mobile Vaccinations

SUNY and CUNY Announce the Integration of the State's Excelsior Pass for Back-To-Campus, Proof of Vaccine Efforts

 Governor Kathy Hochul today announced the launch of the multi-faceted statewide #VaxtoSchool campaign to support increasing COVID-19 vaccination rates among school-aged New Yorkers, furthering the administration's commitment to making the health and well-being of students, teachers and families a top priority. 

As part of this campaign, the Governor announced a new, dedicated website at ny.gov/vaxtoschool with critical resources and materials for parents and guardians of school-aged New Yorkers and school communities. The new site includes information, and an FAQ for parents and guardians, as well as a multitude of ready-made signage for school leaders to support #VaxtoSchool education and operations in their local communities on the ground.

Additionally, the State has launched a new Instagram channel, @VaccinateNY, to educate school-aged New Yorkers and their families about the COVID-19 vaccine directly. The new social media page will provide approachable, interactive content through easy-to-understand vaccine information, prospective content partnerships, #VaxtoSchool social media design contests, and quick video explainers, ensuring that no stone is left unturned in our effort to provide all New Yorkers with the facts about the COVID-19 vaccine. DOH will also amplify these digital education efforts across all of their channels including Facebook, Instagram and Twitter.

"We've dedicated enormous state resources to getting New Yorkers of all eligible age groups vaccinated, but initially the state focused on the most vulnerable citizens, and now we need to focus on our youth," Governor Hochul said. "New York's young people are less likely to get seriously ill from COVID-19 but they can still spread the virus, and we need them to take it seriously. The new, innovative #VaxtoSchool social media campaign will help us get the word out to New York's young people about the vital importance of getting vaccinated to keep friends, families and communities safe."

As part of this effort, the Governor also announced that new #VaxtoSchool pop-up COVID-19 vaccination sites will be open in areas where zip code data shows the vaccination rate for 12 to 17-year-olds is lower than the statewide average. A community-based medical professional will be available at each site to answer any questions parents and guardians of school-aged New Yorkers may have. Alongside the new sites, #VaxtoSchool buses—mobile vaccination efforts—are being launched in convenient, school-centric areas statewide, such as public recreational spaces like basketball courts and parks. This will help to make the vaccine available and accessible to school-aged New Yorkers and their families.

New pop-up vaccination sites for 12 to 17-year-olds will be located at the below addresses. More locations will be announced.  

Mosholu Montefiore Community Center 

3450 Dekalb Avenue

Bronx, NY 10467

Open: Friday, September 10, 10 a.m. - 4 p.m. (1st Shot POD)

Friday, October 1, 10 a.m. - 4 p.m. (2nd Shot POD)

Variety Boys & Girls Club of Queens

21-12 30th Road

Astoria, NY 11102

Open: Saturday, September 18, 10 a.m. - 4 p.m.  (1st Shot POD)

Monday, October 4, 10 a.m. - 4 p.m. (2nd Shot POD)

The State is also working with New York colleges and universities to support their back-to-campus efforts, including the integration of the State's Excelsior Pass at SUNY and CUNY campuses statewide so they have a secure, verifiable means of accepting and tracking proof of vaccination and/or negative test results, as applicable, for students, teachers and campus staff. Interested New Yorkers can retrieve their Excelsior Pass or Excelsior Pass Plus today by visiting epass.ny.gov.

Attorney General James Fights Discrimination Against Residents of Puerto Rico and Other U.S. Territories

 

Coalition of 18 AGs Argue that Americans Living in U.S. Territories Should Not Be Excluded from Nationwide Federal Aid Programs

 New York Attorney General Letitia James joined a coalition of 18 attorneys general in urging the U.S. Supreme Court to reject the exclusion of Americans living in Puerto Rico and other U.S. territories from nationwide federal aid programs. In a brief filed in United States v. Vaello-Madero, a case concerning whether it is constitutional to deny Supplemental Security Income (SSI) benefits to residents of Puerto Rico, the attorneys general urge the Supreme Court to carefully scrutinize Congress’s reasoning for discriminating against the territories. The coalition argues that Congress must have more than a good reason to discriminate, and that a similar standard should apply to treatment of the territories. The brief also highlights the racist roots of discrimination against residents of U.S. territories and points out that by excluding territories from certain nationwide aid programs like SSI, Congress withholds assistance from areas in which it is arguably most needed.  

“Puerto Ricans are Americans, full stop,” said Attorney General James. “Denying aid to Puerto Ricans and other Americans is inhumane, illegal, and perpetuates racist policies. We must do all we can to help all Americans, especially those who need it most.”

Congress enacted the SSI program to provide low-income Americans who are elderly, blind, or disabled with monthly financial assistance. However, only residents of the 50 states, the District of Columbia, and the Commonwealth of the Northern Mariana Islands are eligible for this program under federal law. Americans living in Puerto Rico, Guam, the U.S. Virgin Islands, and American Samoa are not eligible for this assistance.

In their amicus brief, the attorneys general urge the Supreme Court to treat discrimination against U.S. territories by Congress with suspicion because:

• Congress should have more than a good reason to treat one region of the country differently than another: The Supreme Court has made it clear that to treat states differently, Congress must demonstrate that the differential treatment is necessary to address a specific problem. The coalition argues that over the past century, the territories have become more tightly woven into our national fabric, and that a similar level of scrutiny should be applied to discrimination against the territories.

• The differential treatment of U.S. territories is rooted in racism: Congress’s ability to discriminate against territories like Puerto Rico relies on the Insular Cases, a series of Supreme Court decisions from the early 1900s about the status of the territories acquired from Spain. These cases upheld the power of Congress to treat the new territories, which were formerly Spanish colonies, differently, and were based on racial biases and now-discredited theories of colonial governance. For example, in one of these cases, the Court explained that it was neither unreasonable nor unconstitutional for Congress to deprive territory residents of the right to trial by jury and described the territories as “peopled by savages.” The attorneys general argue that this troubling precedent should not be perpetuated by rubber stamping Congress’s discrimination against the nearly 3.8 million residents of U.S. territories.
  
  
• Excluding territories from anti-poverty programs harms some of the neediest Americans: The territories suffer disproportionately high levels of poverty and would greatly benefit from participating in federal aid programs. The national poverty rate hovers around 10.5 percent, and the neediest states — Louisiana and Mississippi — have poverty rates of around 19 percent. By contrast, poverty rates in the territories range from 22.6 percent in Guam to 56 percent in American Samoa. Congress’s exclusion of the territories from certain nationwide aid programs like SSI withholds benefits where they are arguably most needed.
  
  
• Congress irrationally includes some territories in benefits programs and excludes others: Multiple federal aid programs operate in some territories but not in others. For example, the Northern Mariana Islands is the only territory in which residents can receive SSI, but it is also the only territory excluded from Temporary Assistance for Needy Families, which provides cash assistance to low-income families with children. The Supplemental Nutrition Assistance Program (or food stamp program) operates in Guam and the U.S. Virgin Islands, but not in Puerto Rico, American Samoa, or the Northern Mariana Islands. There is no discernable pattern to Congressional decisions to extend programs to one territory but not another, and this haphazard discrimination generates unnecessary burdens for states and harms residents of the territories.

Joining Attorney General James and in filing today’s amicus brief are the attorneys general of Connecticut, Delaware, the District of Columbia, Guam, Hawaii, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, the Northern Mariana Islands, Oregon, Pennsylvania, Rhode Island, Vermont, and Virginia.

MAYOR DE BLASIO APPOINTS PETER HATCH AS COMMISSIONER OF THE DEPARTMENT OF CONSUMER AND WORKER PROTECTION

 

 Mayor Bill de Blasio today appointed Peter Hatch as Commissioner of the Department of Consumer and Worker Protection (DCWP), the largest municipal consumer protection agency in the country. Mr. Hatch, currently the City’s COVID-19 Public-Private Partnership Czar, is an experienced leader with a long record of public service dedicated to improving the lives of working families. As Commissioner, he will focus on ensuring a just and equitable recovery for all New Yorkers.

 

“Peter Hatch is a truly progressive government leader, policymaker, and lawyer who delivers for New Yorkers in times of crisis," said Mayor Bill de Blasio. “From delivering more than a million meals to essential workers to providing tens of millions of dollars in emergency financial assistance to families in need, Peter was critical to responding to the pandemic and getting relief to New Yorkers. I have full confidence that he will supercharge DCWP's work combatting inequality and ensuring that New York's most economically vulnerable recover from the pandemic. I also want to thank Acting Commissioner Sandra Abeles for her partnership during these last months.”

“Peter has fought on behalf of working families his entire career, most recently ensuring that our pandemic response was equitable and included all New Yorkers. His experience and passion make him the right leader for the Department of Consumer and Worker Protection, especially in this critical moment for our comeback. I look forward to continue working together to build stronger and more just New York City,” said Deputy Mayor for Strategic Policy Initiatives J. Phillip Thompson.

“I am excited to join DCWP’s stellar team and lead the City’s multi-agency campaign to ensure eligible families claim the Child Tax Credit, enforce our Paid Sick Leave law to boost vaccination rates among working New Yorkers, and protect consumers from COVID-related price gouging and other predatory practices. Together with leaders across New York City we will build a recovery that works for all of us,” said Department of Consumer and Worker Protection Commissioner Peter Hatch. “It has been the privilege of my professional life to serve my fellow New Yorkers from City Hall, and it will be an honor to continue serving them as Commissioner of the Department of Consumer and Worker Protection.”

 

About Peter Hatch:

 

In March of 2020, Mr. Hatch was named the COVID-19 Public-Private Partnership Czar as part of the Mayor’s new senior leadership team combatting the pandemic. In that role he fueled the City’s response to the pandemic with fast, flexible resources by raising more than $100 million in cash and in-kind contributions to fund and launch successful efforts to obtain and distribute personal protective equipment, feed essential workers, and provide emergency financial assistance to the most vulnerable New Yorkers including cash, rental, and burial assistance for New Yorkers originally ineligible for federal and state relief, short-term payroll support for 100 local restaurants committed to paying the full minimum wage and providing free meals to hard-hit communities, and innovative unconditional cash transfer programs including for low-income families in City quarantine hotels and the nation’s first direct cash transfer pilot for runaway and homeless youth.

 

Prior to working on the City's response to COVID-19, Mr. Hatch served four years as the Chief of Staff to the Office of the Deputy Mayor for Health and Human Services, where he oversaw the functions of 13 agencies and Mayoral Offices, including the Human Resource Administration and Department of Health and Mental Hygiene. In that role, Mr. Hatch helped craft and launch NYC Care, the nation's most comprehensive guaranteed health care access plan for uninsured New Yorkers. Concurrently in 2019, Mr. Hatch served as Senior Advisor to the Mayor on Street and Subway Homelessness, leading the Mayor’s 12 agency task force responsible for the development and implementation of The Journey Home, the first-in-the-nation action plan to end long-term street homelessness. 

In the Mayor’s first term, Mr. Hatch served as Senior Advisor to the First Deputy Mayor. He personally oversaw agencies including the Fire Department and Parks Department, playing a leading role in the review to strengthen 911 operations, the launch of innovative EMS initiatives, the successful effort to end chronic veteran homelessness, and the implementation of the Mayor’s parks equity agenda. He also Chaired the Franchise and Concession Review Committee, the Banking Commission, and the Community Investment Advisory Board.

Mr. Hatch received a B.A. in the history of science from Columbia College, a master’s degree in public policy from the Harvard Kennedy School, and a J.D. from Fordham University. He practiced employment, labor, and education law at Schulte Roth & Zabel LLP and co-founded BeneStream, a mission-driven start up to close the “unclaimed” benefits gap for union, gig, and low-wage workers, before returning to public service. He is a native New Yorker and lives in Manhattan with his wife and their two daughters.

 

Leader Of Fake Cryptocurrency Investment Scheme Pleads Guilty To Fraud

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced that MICHAEL ACKERMAN, who orchestrated a multimillion-dollar cryptocurrency investment scheme, pled guilty to wire fraud today before United States Chief District Judge Laura Taylor Swain.  ACKERMAN admitted to causing victim losses of more than $30 million.

U.S. Attorney Audrey Strauss said: “As he admitted today, Michael Ackerman raised millions of dollars in investments for his fake cryptocurrency scheme by falsely touting monthly returns of over 15 percent, falsifying documents to con investors into thinking his fund had a balance of over $315 million, and spending millions in investor funds on himself.  Now Ackerman awaits sentencing for his crime.”

According to the Indictment and the underlying complaint filed in this case, as well as prior court filings and recent court proceedings:

In or about 2017, MICHAEL ACKERMAN and others started a purported cryptocurrency “investment” fund (the “Fund”) and recruited hundreds of individual investors into the Fund.  The Fund was an investment club that allowed its members to contribute U.S. dollars, which the investors were told would then be used to invest and trade in Bitcoin and other cryptocurrencies.  ACKERMAN was held out as the Fund’s chief trading officer and personally controlled the Fund’s primary trading account on an online cryptocurrency exchange.  Based on figures provided by ACKERMAN, the Fund claimed that its proprietary trading algorithm was earning approximately 15 percent in profit for investors each month.

By December 2019, ACKERMAN claimed that the Fund investment pool – which consisted of approximately $37 million in original investor contributions – had grown in value to approximately $315 million.  ACKERMAN’s claims about the performance of the Fund were communicated to existing Fund investors as well as prospective investors, some of whom were induced to invest in the Fund in the hopes of enjoying high rates of return.

The rates of return that ACKERMAN reported on the Fund investments, and its overall Fund balance, were false.  In reality, the primary trading account used by ACKERMAN had an account balance that never exceeded approximately $5 million.  To support his false claim that the Fund’s investments were earning 15 percent in monthly profits and had grown to approximately $315 million, ACKERMAN doctored numerous account screenshots that he knew were being used to communicate with Fund investors.

Instead of investing and trading on behalf of the Fund, ACKERMAN stole at least $9 million in investor contributions and used them to bankroll a lavish lifestyle that included his purchase of multiple pieces of real estate, hundreds of thousands of dollars of Tiffany jewelry, vehicles, travel, and personal security services.

ACKERMAN, 52, of Sheffield Lake, Ohio, pled guilty today to one count of wire fraud, which carries a maximum sentence of 20 years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Under the terms of his plea, ACKERMAN agreed to make restitution of at least $30,667,738.79.  ACKERMAN also agreed to forfeiture of $36,268,515, including the millions of dollars in cash, real estate, and jewelry that were fraudulently obtained from victims or bought with victim funds.

ACKERMAN is scheduled to be sentenced by Judge Swain on January 5, 2022, at 2:00 p.m.       

Ms. Strauss praised the outstanding work of special agents from Homeland Security Investigations’ El Dorado Task Force and the Federal Bureau of Investigation in Tampa, and thanked the attorneys and investigators at the Commodity Futures Trading Commission and the Securities and Exchange Commission whose expertise and diligence were integral to the development of this investigation and today’s guilty plea.