Following A.G. Schneiderman Investigation, Walgreens Restructures Rite Aid Acquisition To Address Competition Concerns

A.G. Schneiderman, Together With Federal Trade Commission, Demanded That Rite Aid Retain Additional New York Stores To Preserve Retail Pharmacy Chain Competition 

Walgreens Will Now Only Acquire 272 Stores In NY, Compared To Original 456 Stores

Schneiderman: New Yorkers Deserve The Lower Prices, Greater Choices, And Better Service That Result From Vigorous Competition

  Attorney General Eric T. Schneiderman announced today that, following his office’s investigation into Walgreens’ proposed acquisition of thousands of Rite Aid stores in New York and across the country, Walgreens has restructured the acquisition to address concerns that it would limit retail competition in the New York area.  Walgreens and Rite Aid are the second- and third-largest retail pharmacy chains in the U.S, serving huge numbers of New York consumers, as well as businesses that purchase drug coverage for their employees. Walgreens initially proposed to acquire 2,186 stores from Rite Aid, including 456 Rite Aid stores in New York State. 

To resolve competitive concerns raised by Attorney General Schneiderman and the Federal Trade Commission, Walgreens agreed to acquire fewer stores in New York State and the New York City metropolitan region than it originally had planned. Walgreens will now acquire 272 stores in New York State, with Rite Aid retaining 327 stores across the state. Additionally, Walgreens will acquire 34 fewer stores in New Jersey and 13 fewer stores in Connecticut than initially proposed, allowing Rite Aid to maintain a significant footprint in the New York City metropolitan region, and preserving Rite Aid as a competitive force in the region. 

“Retail pharmacy chains fill the majority of prescriptions in many areas of New York State,” Attorney General Schneiderman said. “Vigorous competition between pharmacy chains keeps down the cost of filling a prescription, which benefits New York consumers and businesses by preserving choice and keeping costs low. We’ll continue to keep close tabs on consolidation in the retail pharmacy space to ensure New Yorkers get the lower prices, greater choices, and better service they deserve.”

Walgreens initially sought to acquire Rite Aid in its entirety in November 2015.  A 19-month review of that transaction by the Federal Trade Commission, Attorney General Schneiderman, and several other states identified significant competitive issues posed by the transaction, and Walgreens and Rite Aid abandoned the merger in June 2017.  Shortly thereafter, Walgreens announced that it intended to acquire 2,186 stores from Rite Aid, but, in response to the competitive concerns presented by Attorney General Schneiderman, the FTC, and other states, Walgreens will now acquire 254 fewer Rite Aid stores.

The June 2017 transaction proposed by Walgreens and Rite Aid also included an agreement granting Rite Aid the option to purchase generic drugs through an affiliate of Walgreens at a low cost for a ten-year period.  After discussion with federal and state antitrust regulators, that agreement was amended to allow Rite Aid greater latitude to pursue outside business relationships over the course of the agreement.    

Bronx Chamber of Commerce's Hispanic Heritage Luncheon honors Bronx Hispanic Leaders

Bronx Chamber of Commerce 2017 Bronx Biz & Information Expo | Thursday, October 5th, 11:00 am-5:00 pm, at The Mall at Bay Plaza

DiNAPOLI ANNOUNCES IMPROVEMENTS TO COLLEGE SAVINGS PLAN TO SAVE MONEY FOR COLLEGE

New York’s 529 College Savings Program Lowers Fees, Allows Higher Maximum Balance & Eliminates Minimum Contribution 

  Beginning in September, New York’s 529 College Savings Program will offer more investment options, lower costs, raise the maximum allowable balance and eliminate the $25 minimum contribution, State Comptroller Thomas P. DiNapoli announced today. 

“Now’s the time to take advantage of the improvements we’re making to New York’s 529 College Savings Program,” DiNapoli said. “We’re making it easier for New Yorkers of all income levels to invest in their loved one’s future, as the cost of obtaining a college education continues to rise. NY’s 529 College Savings Program can help offset some of those costs.” 

Six new investment portfolios are being added to the Direct Plan's three age-based options. This will smooth the transition steps from more aggressive to more conservative investments as the beneficiary nears college age. More information can be found in the plan’s brochure here. 

In addition to the new investment options, DiNapoli said program fees will be reduced. The total asset-based fee for all Direct Plan portfolios will drop to 0.15 percent, meaning participants will pay $1.50 in program fees each year for every $1,000 invested in the plan. The maximum account balance will be increased from $375,000 to $520,000 for both the Direct and Advisor Plans to more accurately reflect rising college costs. 

Another significant enhancement is that the minimum contribution of $25 will be eliminated for Direct Plan participants so individuals of all incomes can open accounts and contribute as much as they can afford.  

New York’s 529 College Savings Program currently includes two separate 529 plans: the Direct Plan sold directly by the program and the Advisor Plan, sold exclusively through financial advisors. The Advisor Plan has different investment options and higher fees and expenses as well as financial advisor compensation.

The Comptroller of the State of New York and the New York State Higher Education Services Corp.are the Program Administrators and are responsible for implementing and administering New York’s 529 College Savings Program.

Read or download the Direct Plan disclosure booklet hereor go to: http://cdn.unite529.com/jcdn/files/NYD/pdfs/DisclosureBooklet.pdf

Ascensus Broker Dealer Services Inc., serves as program manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group Inc., serves as the investment manager. Vanguard Marketing Corp.markets, distributes and underwrites the Direct Plan.

For more information about New York’s 529 College Savings Program Direct Plan, obtain a Disclosure Booklet and Tuition Savings Agreementat nysaves.orgor by calling 877-NYSAVES (877-697-2837). This includes investment objectives, risks, charges, expenses and other information. 

NYC EMERGENCY MANAGEMENT AND DOITT RELEASE THE FIRST-EVER NOTIFY NYC MOBILE APP

New emergency notification app now available – giving New Yorkers access to real-time emergency updates on severe weather, public health hazards, transit disruptions, and more

  New York City’s official emergency communications program is making it easier than ever to be informed about emergencies. The New York City Emergency Management Department and the Department of Information Technology and Telecommunications today launched the Notify NYC app – the City’s first emergency notification mobile application. With the new Notify NYC app, New Yorkers can get information about emergency events and important City services, based on location. The new app is available for free download for Apple or Android devices, and offers real-time emergency updates on events from hurricanes and blizzards, to major traffic and mass transit disruptions, public health hazards, school closings, and unscheduled parking rule suspensions.

“It’s crucial that New Yorkers know what’s going on around the city, especially in an emergency,” said Mayor Bill de Blasio. “This new app will make it easier than ever to stay informed and get alerts about what’s happening – both nearby and citywide.”

“A key step to being prepared is staying informed,” said NYC Emergency Management Commissioner Joseph Esposito. “With the new app, Notify NYC offers New Yorkers more ways to receive information than ever before. Download the app to get free alerts about the emergencies and updates that matter most to you, and choose how you want to receive them.”

“In an emergency situation, we want New Yorkers to have the information they need in the palm of their hands.” That’s why Notify NYC app is a game-changer, providing real-time emergency notifications and crucial updates based on geolocation,” said Department of Information Technology and Telecommunications Commissioner Anne Roest. “We’re proud to have partnered with Emergency Management to build an app that will be such a valuable resource for so many.”

The Notify NYC app is the latest upgrade to the Notify NYC program – the City’s free, official source for information about emergency events and important City services. The new app has several key features:

·         Users can receive messages based on their current location, allowing alerts to follow New Yorkers as they travel throughout the five boroughs. New Yorkers can also include up to five addresses to receive alerts specific to where they and their families live, work, or go to school.

·         A new “receive all” mode allows users to access all emergency notifications, regardless of location or topic.

·         A new map feature provides detailed information about the locations of emergencies in relation to a user’s location. 

The Notify NYC mobile app is available for free download from iTunes or Google Play. Search for “Notify NYC.” Notify NYC website subscribers who do not download the new app will continue to receive their selected email notifications.

  

The new mobile app was developed by DoITT in partnership with NYCEM based on user experience with the Notify NYC website, which was first implemented by DoITT in 2007. Notify NYC mobile is the first “push” application developed by DoITT, and the first app developed by the agency’s specialized “Insource Team,” which works on detail to agencies to manage special technology projects. DoITT’s Notify NYC Insource Team first embedded at NYCEM  in 2016, and included a technical lead, a Java backend developer, Android and iOS developers, a UX/UI designer, a business analyst, and quality assurance analysts.

Notify NYC started as a pilot program in December of 2007 as a means to communicate localizedemergency information quickly to City residents. Since its inception, Notify NYC has sent out more than 9,400 notifications about local emergencies, and its subscribership has grown to more than half a million New Yorkers. To sign up for Notify NYC, New Yorkers can call 311, visitNYC.gov/NotifyNYC, or follow @NotifyNYC on Twitter. Subscribers can receive alerts in several ways: phone, email, SMS, fax, and Twitter. Non-English speaking subscribers have access to a link in which the same message is listed in 13 different languages, audio format, and American Sign Language (ASL). Notify NYC’s multilingual messages span a variety of emergency situations, including pre-scripted mass transit alerts, fire department activity, missing person(s) alerts, public health and safety notifications, utility alerts, weather alerts, drills and exercises, alternate side parking updates, downed trees notifications, and Combined Sewer Overflow advisories.

Notify NYC is just one way the City of New York seeks to communicate urgent information to City residents. In addition to sending e-mails, text messages, tweets, and phone calls, NYC Emergency Management has the ability to activate NYC’s Emergency Alert System (EAS), which sends information immediately via television and radio, and Wireless Emergency Alerts (WEA), which send critical emergency updates to all equipped cell phones in NYC. To learn more about the Notify NYC program or to sign up, visit NYC.gov/NotifyNYC or call 311.

Below are examples of notifications released this week that will now be available via the app with the new mapping and geolocation features:

Coastal Flood Advisory: Notified 9/20/17 at 4:20 p.m.

The National Weather Service has extended the Coastal Flood Advisory for southern Queens until Thursday, 9/22 at 12:00 AM. The affected area includes the Atlantic Ocean beaches and along the South Shore Bays. Tidal departures of 1-2 feet above normal are expected.

During a Coastal Flood Advisory, minor flooding of the most vulnerable shore roads and/or properties is possible. Coastal residents should be alert for later statements and take action to protect property.

For more information, please visit www.weather.gov/nyc.

To view this message in American Sign Language (ASL), العربية, বাঙালি, 中文, Français, Kreyòl Ayisyen, Italiano, 한국어, Polski, Pусский, Español, اردو or ייִדיש : http://on.nyc.gov/2glCc9d

Ferry Disruption: Notified 9/18/17 at 9:13 p.m.

Due to the United Nations General Assembly, NYC Ferry riders should expect service disruptions from Tuesday, 9/19 to Monday, 9/25. The US Coast Guard is enforcing a full closure of the East River on 9/19 from 9:15 AM to 8:00 PM near United Nations Headquarters, specifically betweenEast 35th Street and the Queensboro Street Bridge.

As a result of these restrictions, NYC Ferry riders should anticipate delays and temporary closures from at Pier 11/Wall Street & East 34th Street terminals. The Midtown Shuttle Bus will pick up riders on East 34th Street & 1st Avenue instead of the ferry terminal. All routes are subject to change with little or no notice as a result of heavy traffic conditions.

For more information and service updates, visit www.ferry.nyc/service-alerts.

Road Closure – Planned: Notified 9/17/17 at 3:33 p.m.

Due to the United Nations General Assembly, expect significant traffic delays throughout Manhattan from Monday (9/18) through Friday (9/22). Anticipate traffic disruptions, various street closures, and an increased presence of emergency personnel. Use of public transportation

is highly encouraged during this period.

Notify NYC is just one way the City of New York seeks to communicate urgent information to City residents. In addition to sending e-mails, text messages, tweets, and phone calls, NYC Emergency Management has the ability to activate NYC’s Emergency Alert System (EAS), which sends information immediately via television and radio, and Wireless Emergency Alerts (WEA), which send critical emergency updates to all equipped cell phones in NYC. To learn more about the Notify NYC program or to sign up, visit NYC.gov/NotifyNYC or call 311.

Trinitarios Gang Member Sentenced To 30 Years In Prison For Murder Of 16-Year-Old Boy

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JUAN MARTINEZ, a/k/a “KJ,” was sentenced today by United States District Judge Paul A. Engelmayer to a term of 30 years in prison for his participation in a racketeering conspiracy and in the murder of 16-year-old Ka’Shawn Phillips on September 5, 2005.  MARTINEZ was a member of the Yonkers faction of the violent Trinitarios gang (the “Trinitarios Gang”).

Acting Manhattan U.S. Attorney Joon H. Kim said:  “On a Labor Day weekend 12 years ago, Juan Martinez recruited a hit squad of his fellow Trinitarios Gang members to murder 16-year-old Ka’Shawn Phillips, who had earlier been involved in a fistfight with Martinez.  The Trinitarios Gang members recruited by Martinez brutally shot, beat, and stabbed Phillips to death in the middle of the street.  While nothing can bring Phillips back, we hope his family finds a measure of solace in the justice achieved by today’s sentence.  Together with our law enforcement partners, we will continue to aggressively prosecute all those who engage in these senseless acts of violence in our communities.”

In imposing sentence, Judge Engelmayer noted the “savagery of the attack,” and observed that Martinez was “personally responsible for the slaughter” of Phillips and that Martinez’s crime was “as wrongful and evil as a crime can be.”

According to the Indictment, and other documents filed in the case, as well as statements made during the sentencing proceedings:

The Trinitarios Gang was a violent gang that was formed in the New York state prison system in the early 1990s and subsequently spread to the streets.  JUAN MARTINEZ, a/k/a “KJ,” was a member of the Yonkers faction of the Trinitarios Gang.  On September 5, 2005, MARTINEZ – who was 30 years old at the time – was involved in a fistfight with Ka’Shawn Phillips at a pickup basketball game in Yonkers.  MARTINEZ retaliated first by attacking Phillips with a machete, and then by enlisting members of the Bronx faction of the Trinitarios Gang to attack Phillips.  Armed with guns, knives, and swords, a mob of Trinitarios Gang members shot, beat, and stabbed Phillips to death.  He was 16 years old.

In addition to the prison term, MARTINEZ, 42, of Yonkers, New York, was sentenced to five years of supervised release. 

           

Since 2009, as part of “Operation Patria” and “Operation Green Haze,” this Office has charged at least a combined 149 members and associates of the Trinitarios Gang.

           

Mr. Kim praised the work of the New York City Police Department’s Bronx Gang Squad, the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Joint Firearms Task Force, the Drug Enforcement Administration, and Immigration and Customs Enforcement’s Homeland Security Investigations.

Former Attorney Sentenced To More Than 3 Years In Prison For Defrauding Investors Of More Than $1 Million

   Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that BRANDON LISI was sentenced today to 38 months in prison for his role in a scheme to defraud at least four individual investors in real estate transactions of more than $1 million.  LISI pled guilty to conspiracy to commit wire fraud on April 3, 2017, for his role in the fraud.  LISI entered the guilty plea before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence.

Acting U.S. Attorney Joon H. Kim said:  “As he previously admitted, Brandon Lisi, a former attorney, misled clients into investing over $1 million in real estate properties.  These investments yielded no profit for investors, because Lisi and his co-defendant simply pocketed the funds.  Now Brandon Lisi faces time in federal prison for his fraud.”  

FBI Assistant Director William F. Sweeney Jr. said:  “Financial crimes have the potential to turn lives upside down and inside out.  The victims in this case deserve to see justice served. As evidenced by today’s sentence, they will.  May this be a reminder to others that this type of behavior won’t go unpunished.”

According to documents filed in this case and statements made in related court proceedings:

LISI, a former attorney, and his co-conspirator, a practicing attorney, built relationships of trust with victim investors and then induced those investors to put money into fraudulent business deals.  Through the course of the scheme, LISI and his co-conspirator made false representations and failed to disclose material information to investors, all in an effort to induce them to hand their money over to invest in these purported deals.  LISI further caused another individual, acting at his direction, to make false statements in bankruptcy court in an effort to forestall foreclosure on one of the properties LISI had obtained.   Although LISI promised his victims large returns on their investments, he and his co‑conspirator used the invested funds for personal use, through substantial cash withdrawals, payments to relatives, and transfers to pay off personal debts.

Ultimately, the victims of this scheme lost nearly all of the money they had invested, which was more than $1 million in total. 

In addition to the prison term, LISI, 43, of Melville, New York, was sentenced to three years of supervised release, and ordered to forfeit $1,438,358 and to pay $1,438,358 in restitution.

Mr. Kim praised and thanked the Federal Bureau of Investigation for their outstanding investigative work. 

If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900.  For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.