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Thursday, May 4, 2023
Former Founder And CEO Of Nanotechnology Company Sentenced To 48 Months In Prison
James Jeremy Barbera Defrauded Investors Out of More than $7 Million by Falsely Claiming His Company Developed a Breathalyzer Device to Detect Cancer
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JAMES JEREMY BARBERA, the founder and former chief executive officer (“CEO”) of a New York-based nanotechnology company, Nanobeak Biotech, Inc. (“Nanobeak”), was sentenced today to 48 months in prison by U.S. District Judge John G. Koeltl. BARBERA was previously convicted following a one-week trial of securities fraud, wire fraud, and conspiracy offenses.
According to the Indictment, evidence presented during trial, court documents, and statements made in open court:
From in or about 2013 and in or about 2019, BARBERA was the founder and CEO of Nanobeak, a privately held nanotechnology company that represented to investors that the company had developed a breathalyzer sensor technology that could detect cancer and narcotics in human breath.
From at least in or about 2013 through in or about 2020, BARBERA and others perpetrated a scheme to defraud dozens of investors out of at least approximately $7 million (i) by soliciting investments through false and misleading statements, (ii) by failing to use investors’ funds as promised, and (iii) by converting investors’ money for his own use. Specifically, BARBERA falsely represented that Nanobeak had developed a breathalyzer sensor that could detect narcotics and cancer in a person’s breath and that the company was expected to earn millions of dollars in sales revenue through distribution contracts. In truth and in fact, Nanobeak never developed the purported technology, and it was impossible for the company to generate revenue because there was no breathalyzer device to sell and, accordingly, no distribution contracts.
BARBERA also falsely represented that he had undergraduate and graduate degrees in physics from New York University, that he had a business degree from the Massachusetts Institute of Technology, and that Nanobeak would soon have an initial public offering (“IPO”), which would result in large profits to investors. In truth and in fact, the company was not close to an IPO, BARBERA was permanently barred from serving as the CEO of a public company as a result of a prior, unrelated proceeding brought by the U.S. Securities and Exchange Commission (“SEC”), and BARBERA never finished college and never attended MIT.
BARBERA converted for his own use approximately half of the investor funds raised in the form of cash withdrawals and to pay personal expenses, including private school and college tuition for his children, mortgage payments on his Central Park West apartment, and for other personal items, such as credit card bills, jewelry, automobiles, and daily living expenses.
In addition to his prison sentence, BARBERA, 67, of New York, New York, was ordered to pay more than $7 million in forfeiture.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the National Aeronautics and Space Administration’s Office of Inspector General, and he also thanked the SEC for its assistance.
Governor Hochul Announces $875 Million in Financing For 3,100 Affordable Homes Across New York State
Awards Will Increase Housing Supply, Provide Support Services that Allow Seniors, Veterans, Vulnerable Populations to Live Independently
Highly Energy-Efficient Buildings to Further State's Carbon Reduction Goals
Developments Will Offer Free Broadband to Help Close the Digital Divide
Governor Kathy Hochul today announced $875 million in financing has been awarded through bonds, tax credits, and subsidies to create or preserve 3,100 affordable, sustainable, and supportive homes in 27 developments across New York State. When coupled with additional private funding and resources, the 27 projects receiving funding are expected to create more than $1.5 billion in overall investment. The awards will increase housing supply in every region, assist local economic development efforts, fight homelessness with onsite services that keep vulnerable populations safely housed, include sustainable features that advance the State's climate goals, and offer free broadband to help close the digital divide.
"My administration is committed to ensuring that every New Yorker has access to housing that is affordable, sustainable, and offers critical services that improve lives," Governor Hochul said. "This funding will ultimately create more places for seniors and vulnerable residents to live independently, apartments that young people can afford, and revitalized communities where businesses can succeed and grow their workforce. These innovative developments are central to our strategic efforts to increase the supply of housing and create a more affordable, more livable New York for all."
The awards announced today are part of Governor Hochul's $25 billion comprehensive Housing Plan that will create or preserve 100,000 affordable homes across New York State, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes.
Funding is provided through New York State Homes and Community Renewal's Low Income Housing Tax Credit Program and Tax-Exempt Bond financing. Seven projects were awarded $684 million subsidies and tax-exempt housing bonds in the Agency's March 2023 bond issuance. Twenty developments were awarded more than $191 million through HCR's Multifamily Finance RFP, a competitive process that awards Federal and State Low-Income Housing Tax Credits and subsidy financing for affordable and supportive multifamily housing developments.
All projects meet the new sustainability standards established by HCR in 2022 which promote healthier living environments and highly efficient buildings and support the goals set by the New York State Climate Leadership and Community Protection Act.
More than half of the awarded projects will use a total of $9 million from the New York State Energy Research and Development Authority's Clean Energy Initiative to achieve even higher levels of sustainability and carbon reduction.
In addition, the developments offer free broadband services to residents, building on the Governor's ConnectALL initiative, which has made historic investments to deliver highspeed internet in underserved communities and close the digital divide for lower-income New Yorkers.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "The $875 million in financing we announced today will deliver more than 3,100 quality, affordable, environmentally sustainable apartments to every region of New York, while expanding access to broadband and essential support services. True to the spirit of our $25 billion housing plan, these 27 projects will increase New York's housing supply and create vibrant, diverse, and economically stable communities where people of all income levels can afford to live. Congratulations and thank you to our talented development partners for their hard work on these life-changing developments."
The full description of awards can be found here.
Capital Region
- Mosaic Apartments in the City of Schenectady, $27 million new construction of two buildings by DePaul Properties, Inc.
- 35 Broadway Veterans Housing in the Village of Menands is a $25 million 67-unit new construction project by Beacon Community Services, LLC.
Central New York
- Creekside Landing in the City of Syracuse is a $31 million 52-unit, multi-site redevelopment and new construction project by Housing Visions Consultants, Inc.
Finger Lakes
- Pines of Perinton in the Village of Fairport is a $137 million project to acquire and rehabilitate a 508-apartment HUD Section 236 multifamily housing property with five historic two-story buildings by the Winn Companies.
- Alta Vista at St. Joseph's Park in the City of Rochester is a $36 million, 76-unit new mixed-income, mixed-use project and is a Rochester Downtown Revitalization Initiative priority project by the Ibero-American Development Corporation.
- St. Leo Senior Apartments in the Village of Hilton is a $15 million infill new construction project with 40 units of supportive and senior housing by Providence Housing Development Corporation and Episcopal Senior Life Communities.
Long Island
- Carman Place in the Village of Hempstead is a $155 million, transit-oriented and walkable 228-unit development by Conifer and Community Development Corporation of Long Island.
- Estella Housing in the Village of Hempstead is a nearly $72 million, energy-efficient, 96-unit affordable and supportive development by Concern for Independent Living.
- Alegria North in the Hamlet of Wyandanch is a $48 million 81-unit new construction project near the Long Island Railroad. The developer is D&F Development Group, LLC.
- The Grove in the Village of Patchogue is a $33 million 55-unit new construction supportive housing development by GGV Grove Apartments, LLC. and New Ground, Inc. is the services provider.
Mid-Hudson Region
- James Linburgh Senior Apartments in the City of Yonkers is a $47 million new construction project with 94 units for seniors close to a Metro North Station. The developer is Warburton Avenue Apartments, LLC is the developer.
- East End Lofts in the City of Newburgh is $23 million 66-unit mixed-use and mixed-income infill new construction project by The Kearney Realty & Development Group Inc.
- Silver Gardens in the Hamlet of Highland is a $20 million 57-unit new construction supportive housing development for low-income seniors by RUPCO, Inc.
Mohawk Valley
- Utica Renaissance in the City of Utica is a $101 million, 74-unit senior and supportive housing development by the Vecino Group and the Utica Housing Authority.
- Glove City Lofts in the City of Gloversville is a new $25 million, 75-unit mixed-income, mixed-use development by Parkview Development & Construction, LLC.
New York City
- Clarkson Estates in Brooklyn is a $238 million new nine-story 328-unit affordable development by CAMBA Housing Ventures.
- Sutphin Senior Housing, in Queens is a $142 million 173-apartment,15-story senior housing development by Breaking Ground.
- Pitkin Avenue Residence in East New York, Brooklyn is a $22 million, 39-unit new construction development by Housing Works, Inc.
- Castle III in East Harlem, the Bronx is a $53 million, 82-unit new construction affordable and supportive project by the Fortune Society.
- Comunilife Tiebout in Fordham Heights, the Bronx is a $54 million 83-unit senior and supportive housing development by Comunilife, Inc.
North Country
- Oval Wood Dish Factory in the Village of Tupper Lake is a $39 million, 80-unit affordable complex with commercial space by Housing Visions Consultants, Inc.
Southern Tier
- Dana Lyon Apartments in the Village of Bath is a $21 million, 49-unit mixed-use development by Providence Housing Development Corporation.
- Stately Apartments in the City of Ithaca is a $30 million, 57-unit newly constructed infill, mixed-use development by Visum Development Group, LLC and Arbor Housing and Development.
Western New York
- ETC Towers in the City of Buffalo is a $72 million 281-unit preservation project by Beacon Communities and First Shiloh Baptist Church.
- Manhattan Village at BestSelf in the City of Buffalo is a $27 million, 66-unit new construction project by BestSelf Properties, Inc. and BestSelf Behavioral Health.
- 875 Lafayette in the City of Buffalo is a $34 million, 80-unit mixed-income development by Belmont Housing Resources for Western New York, Inc.
- Riley Brook Apartments in the Town of Hamburg is a $24 million 70-unit workforce housing development and community building by Grove Development and Southern Tier Environments for Living.
EDITOR'S NOTE:
Castle III in East Harlem, the Bronx is in Manhattan not the Bronx.
NYC PUBLIC ADVOCATE CALLS FOR CHARGES IN JORDAN NEELY'S KILLING
"Jordan Neely’s death was a homicide, and charges must be immediately brought against his killer. To say anything else is an equivocation that will only further a narrative that devalues the life of a Black, homeless man with mental health challenges and encourages an attitude of dehumanization of New Yorkers in greatest need.
"An environment has long been created by media and elected officials that encourages fear of and violence against people who are struggling, that paints them as a threat to public safety. But being homeless is not a capital crime. Struggling with mental health is not a capital crime. Being Black is not a capital crime.
"Justice must be done in this case, and more broadly, we must address the city’s homeless and mental health crises with an approach that centers compassion and support– treating people as people, not as problems. Otherwise, trauma will compound trauma, fear compound fear, and violence compound senseless, heart-wrenching violence."
Public Advocate Williams released a review last year which highlighted the city’s failure to adequately respond to New Yorkers experiencing acute mental health distress or implement systems that support them, a follow-up to his 2019 report on the same topic.
Read the review, and the Public Advocate’s recommendations, here.
NYS Office of the Comptroller - DiNapoli: NYC Health + Hospitals Struggles With Temporary Staffing Costs
A new report released today by State Comptroller Thomas P. DiNapoli found the COVID-19 pandemic exacerbated pre-existing staffing pressures, particularly a shortage of staff nurses, in NYC Health + Hospitals (H+H) facilities, leading to an increased reliance on temporary nurses and higher staffing costs.
Between February 2020 and September 2022, temporary staffing at H+H grew by 83% to offset the loss of staff nurses while managing demand for its services. It resulted in unexpected costs of $125 million in Fiscal Year (FY) 2023, which the State Comptroller’s office anticipates will remain elevated through at least FY 2024.
“For many NYC residents, NYC Health + Hospitals is a lifeline to quality health care, but it is a public health system struggling to get fully back on its feet after the stress of the pandemic,” DiNapoli said. “Hospitals and their staff were pushed to the brink during the pandemic. H+H lost hundreds of nurses, forcing them to hire temporary staff to manage demand due to the pandemic and its fallout, which increased salary costs and created training and other challenges.”
This report is an update to the DiNapoli’s 2021 report, NYC Health + Hospitals Check-Up: The Impact of COVID-19. DiNapoli’s office routinely exams the finances and issues impacting the fiscal health of H+H.
The number of registered nurses (RNs) and licensed practical nurses at H+H facilities declined by 6% and 31% respectively from February 2020 to September 2022. As the pandemic persisted, RN staffing levels in H+H facilities declined at a greater rate than they did in the city overall and statewide. RN employment also declined in New York City and the rest of the state between 2019 and 2022 by 1.1% and 5.3% respectively. Currently, H+H’s vacancy rate for nurses is 15%.
Hiring temporary staff to deal with the pandemic and its fallout on hospital staff is driving up hospital costs across New York City, including at H+H. It is estimated that in New York, contract labor costs across health care systems and hospitals have increased by more than 110% of pre-pandemic levels, with average temporary nurse salaries increasing from about $1,800 per week pre-pandemic to about $3,300 per week in March 2022.
New York City has historically provided financial support to H+H. It funds the non-federal share of supplemental Medicaid payments, among other costs, since H+H provides care to a large share of the city’s uninsured and Medicaid patients.
The city recently announced a new collective bargaining agreement with District Council 37 (DC 37) that it assumes will set a wage pattern for other unions, including for employees at H+H. A review of the city’s recently released budget update suggests collective bargaining costs at H+H are assumed to be fully annualized at $680 million, with nurses to make up about 29% of the total.
Related Reports
Permits Filed For 2754 Creston Avenue In Fordham, The Bronx
Permits have been filed for a six-story residential building at 2754 Creston Avenue in Fordham, The Bronx. Located between East 196th Street and East 197th Street, the lot is near the Kingsbridge Road subway station, serviced by the B and D trains. Alfred Mitaj of First Structure LLC is listed as the owner behind the applications.
The proposed 60-foot-tall development will yield 9,190 square feet designated for residential space. The building will have 22 residences, most likely rentals based on the average unit scope of 417 square feet. The steel-based structure will also have a 30-foot-long rear yard.
Rise Architecture is listed as the architect of record.
Demolition permits were filed in January 2022 for the three-story residential structure on the site. An estimated completion date has not been announced.
CONSUMER ALERT: Attorney General James Distributes $141 Million Settlement to Millions of Low-Income Americans Deceived by TurboTax Owner Intuit
Consumers to Receive Checks in the Mail from Multistate Settlement Without Needing to File a Claim
New York Attorney General Letitia James today announced that consumers who were tricked by TurboTax’s owner Intuit into paying for free tax services will begin receiving checks from the $141 million settlement. Approximately 4.4 million consumers nationwide will receive checks in the mail from the multistate settlement led by Attorney General James. New York will receive more than $5.4 million for more than 176,000 New Yorkers who were tricked into paying to file their federal tax return. Eligible consumers will be contacted by email about the settlement. Checks will be mailed throughout May 2023.
“TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” said Attorney General James. “Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes. I thank my fellow attorneys general for their partnership in this effort to stand up for ordinary Americans and hold companies who cheat consumers accountable.”
In 2022, Attorney General James announced a $141 million multistate agreement with Intuit for deceiving millions of low-income Americans into paying for tax services that should have been free. All 50 states and the District of Columbia have signed on to the agreement.
Eligible consumers include those who paid to file their federal tax returns through TurboTax for tax years 2016, 2017, and 2018, but were eligible to file for free through the IRS Free File Program. Consumers who are eligible for a payment will be notified by email by the settlement fund administrator, Rust Consulting. These consumers will receive a check in the mail automatically, without filing a claim. Checks are expected to be mailed out starting next week.
The amount each consumer receives will be based on the number of tax years for which they qualify. Most consumers are expected to receive between $29 and $30. Individuals who filed for three consecutive years could get up to $85. For more information about who is covered by the settlement, and information about the settlement fund, please visit www.AGTurboTaxSettlement.com.