MAYOR ADAMS, NYPD COMMISSIONER CABAN TO PILOT NEW TECHNOLOGY, ANNOUNCE ADDITIONAL CLINICIANS TO BE DEPLOYED IN SUBWAYS

 

New Technology to Detect Weapons to Be Piloted 90 Days After Publication of Impact and Use Policy as Required by Law 

 

City to Begin Hiring Clinicians to Support Expansion of SCOUT Pilot Program to Help Untreated Severe Mental Illness with $20 Million State Investment 

 

New York City Mayor Eric Adams and New York City Police Department (NYPD) Commissioner Edward A. Caban today announced efforts being taken to make the Metropolitan Transit Authority’s (MTA) subway system safer by investing in new technology to detect firearms, as well as invest in more clinicians that will help those suffering from severe mental illness in the nation’s largest subway system. The city is exploring, and will soon begin piloting, emerging technologies designed to detect weapons carried by travelers into the transit system. In accordance with the Public Oversight of Surveillance Technology (POST) Act, the NYPD also published online its Impact and Use Policy for electromagnetic weapons detection systems, starting a mandatory 90-day waiting period before new technology can be tested and used in New York City. Additionally, Mayor Adams announced that the city will begin hiring clinicians to support the expansion of the Subway Co-Response Outreach Teams (SCOUT), a pilot program launched in partnership with the state and the MTA to connect people with untreated severe mental illness in the subways to mental health treatment and care. 

 

“Keeping New Yorkers safe on the subway and maintaining confidence in the system is key to ensuring that New York remains the safest big city in America,” said Mayor Adams. “Today’s announcement is the next step in our ongoing efforts to keep dangerous weapons out of our transit system and to provide greater mental health services for New Yorkers in crisis. By kicking off a 90-day waiting period to test electromagnetic weapons detection systems here in New York City and hiring more clinicians for SCOUT, we are showing our administration’s dedication to keeping all New Yorkers safe.” 

 

“Since the start of my administration, Mayor Adams and I have worked together closely to keep the subways safe for all New Yorkers,” said New York Governor Kathy Hochul. “This month, I announced a five-point plan to improve safety in the subways, including dedicating $20 million to expand the SCOUT program, which will help more New Yorkers receive the treatment they need. The new technology announced today builds on our existing commitments to place cameras throughout the system and will help law enforcement keep dangerous weapons out of the system.”  

 

“People with untreated serious mental illness taking refuge in the subway system deserve safety, stability, and community,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “The journey to this destination takes time, but the first step is often the hardest: connecting a person with medical care that they may not recognize they need. This is the critical mission of our SCOUT teams. Through a co-response model, SCOUT empowers our caring clinicians to engage with New Yorkers in crisis, assess their needs, and respond accordingly. We are heartened by the results so far, excited for the possibilities with this expansion, and grateful to our MTA partners for their shared determination to get this right.” 

 

“The brave men and women of the NYPD are averaging more than 4,500 gun arrests a year since the start of this administration and have taken well over 15,000 illegal firearms off New York City streets so far,” said NYPD Commissioner Caban. “At the same time, overall crime in our transit system continues to trend downward as our officers actively engage lawbreakers each day and night. To make these achievements meaningful for all New Yorkers, however, we must make safety a reality in every community we serve, on every train line we protect. We are doing that by remaining laser-focused on the relatively small number of people who commit violent crimes, by deploying our resources effectively, by maximizing the utility of new technology, and by constantly evaluating our performance in a relentless effort to do even better.” 

 

“Riders have to feel safe when riding the subways and that requires innovation — new weapons detection technology, but also increased deployments of police, tougher handling of repeat offenders by the criminal justice system, and expanded resources for mental health,” said MTA Chair and CEO Janno Lieber. “Thankfully, Mayor Adams and Governor Hochul get it and continue to fight for the millions of people who rely on the transit system.” 

 

During the 90-day waiting period, the NYPD will be working to identify companies with proven expertise in weapons detection technology. At the end of the waiting period, a pilot program will be instituted in some subway stations where the NYPD will be able to further evaluate the equipment’s effectiveness. 

 

As of Sunday, March 24, 2024, NYPD officers have seized a total of 450 weapons — including 19 illegal guns — in the New York City transit system this year, compared to 261 weapons — including nine guns — during the same period last year. The NYPD also seized 1,515 weapons in the subway system in 2023, including 1,470 cutting instruments and 45 illegal firearms. That tally was a stark increase from the previous year, when 947 total weapons were seized, including 912 cutting instruments and 35 guns. 

 

Last month, Mayor Adams directed the NYPD to surge an additional 1,000 police officers into the subway system each day to keep help New Yorkers safe. Additionally, earlier this week, the NYPD announced “Operation Fare Play,” an initiative to ensure people pay their fare when entering the subway system by deploying 800 more police officers into the subway system to crack down on fare evasion. Through Sunday, overall crime in the transit system was down nearly 16 percent for the month of March, compared to the same month last year, adding to February’s 15.4 percent month-over-month decrease in crime in the subway system. Since the start of 2024, overall arrests in the subway system are up nearly 56 percent compared to last year, including a 78 percent increase in fare-evasion arrests and a 111 percent jump in gun arrests. 

 

Launched in October 2023, the SCOUT pilot program has operated with two teams in the subways focused on connecting those with untreated severe mental illness with mental health support and long-term care. SCOUT teams are comprised of a clinician and two MTA police officers, and, in the 90 days of operation, the two teams have moved 90 individuals out of the subway system and into care. Earlier this month, Governor Hochul announced a $20 million investment to scale this pilot and bring the total number of SCOUT teams to 10 by the end of 2025. With this investment from the state, the city will begin hiring additional clinicians to support the expansion of SCOUT and reach even more New Yorkers in need of care. 

 

Man Pleads Guilty to Selling $3.5M in Counterfeit and Deficient Electronics for Use in Military Systems

 

A California man pleaded guilty to a scheme to defraud the Department of Defense’s (DoD) Defense Logistics Agency (DLA) by selling over $3.5 million worth of fan assemblies to the DLA that were either counterfeit or misrepresented to be new.

“The defendant sold counterfeit and deficient fan assemblies for use in military systems to increase his profit,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Criminals who cheat the U.S. military by selling deficient or counterfeit goods put our national security at risk. This case demonstrates the Justice Department’s commitment to protecting the military supply chain and Americans’ security.”

“Through his company, Kim delivered counterfeit products to our armed services and tried to pass off non-conforming products with fake invoices,” said U.S. Attorney Ismail Ramsey for the Northern District of California. “Swindling our military is a sure way to find oneself in jail. This office is always on the lookout for fraudsters and will prosecute anyone caught cheating our military by providing products that endanger our service people or compromise our readiness.”

According to court documents, Steve H.S. Kim, 63, of Alameda County, controlled Company A, which sold fan assemblies to the DLA that were either counterfeit or were used or surplus fan assemblies that he claimed were new. To trick the DLA into accepting the fan assemblies, Kim created counterfeit labels — some of which used Company B’s registered trademarks — that he attached to the fan assemblies he sold to the DLA. When the DLA questioned Kim about the origin of the fan assemblies, Kim concealed his scheme by giving the DLA fake tracing documents that he created and often signed using a false identity. Some of these counterfeit fans were installed or intended to be installed with electrical components on a nuclear submarine, a laser system on an aircraft, and a surface-to-air missile system.

“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General, is fully committed to protecting the integrity of the DoD supply chain,” said Special Agent in Charge Bryan D. Denny of the DCIS Western Field Office. “Supplying counterfeit products to the DoD endangers the mission and betrays the public’s trust. This investigation demonstrates DCIS’ ongoing commitment to working with its law enforcement partners to hold individuals who defraud the DoD accountable.”

“The Naval Criminal Investigative Service (NCIS) and our law enforcement partners work diligently to thwart attempts to infiltrate the DoD supply chain with potentially damaging counterfeit product,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This case highlights the efforts of the investigative team to expeditiously shut down such a scheme and prevent possible grievous harm to our ability to conduct effective combat operations.”

“This case reflects Homeland Security Investigation’s (HSI) core mission set of investigating national security threats as well as protecting global trade and government supply chains,” said Special Agent in Charge Tatum King of HSI San Francisco. “In this case, the serious risks posed to mission readiness were especially alarming. HSI appreciates the joint efforts of NCIS, DCIS, and the Army Criminal Investigation Division (Army CID), together with the Justice Department, in bringing the violator to justice.”

“The result of this joint investigation underscores the importance of our federal law enforcement partnerships and shows that by working together we can identify, prosecute, and dismantle businesses that supply the U.S. military with fraudulent parts and services,” said Special Agent in Charge Keith K. Kelly of the Army CID Fraud Field Office. “Our Army communities and the public can rest assured that we are committed to pursuing anyone that would defraud the U.S. government for their own personal gain and put combat readiness at risk.”

Kim pleaded guilty to one count of wire fraud and one count of trafficking in counterfeit goods. He is scheduled to be sentenced on July 17 and faces a maximum penalty of 20 years in prison on the wire fraud count and 10 years in prison on the trafficking in counterfeit goods count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

DCIS, NCIS, HSI, and Army CID are investigating the case.

Swiss Commodities Trading Company Pleads Guilty to Foreign Bribery Scheme

 

Trafigura Beheer B.V. (Trafigura), an international commodities trading company with its primary operations in Switzerland, pleaded guilty today and will pay over $126 million to resolve an investigation by the U.S. Justice Department into violations of the Foreign Corrupt Practices Act (FCPA), stemming from the company’s corrupt scheme to pay bribes to Brazilian government officials to secure business with Brazil’s state-owned and state-controlled oil company, Petróleo Brasileiro S.A. – Petrobras (Petrobras). 

Trafigura pleaded guilty to conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to the plea agreement, Trafigura will pay a criminal fine of $80,488,040 and forfeiture of $46,510,257. The department will credit up to $26,829,346 of the criminal fine against amounts Trafigura pays to resolve an investigation by law enforcement authorities in Brazil for related conduct.

“For more than a decade, Trafigura bribed Brazilian officials to illegally obtain business and reap over $61 million in profits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s guilty plea underscores that when companies pay bribes and undermine the rule of law, they will face significant penalties. The department remains determined to combat foreign bribery and hold accountable those who violate the law.”  

“Our office will continue to target anyone who uses the Southern District of Florida to further foreign corrupt practices and bribery schemes,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will continue to work with our Criminal Division colleagues to identify and prosecute those responsible, including both individuals and corporations.” 

According to court documents, between approximately 2003 and 2014, Trafigura and its co-conspirators paid bribes to Petrobras officials in order to obtain and retain business with Petrobras. Beginning in 2009, Trafigura and its co-conspirators, who met in Miami to discuss the bribery scheme, agreed to make bribe payments of up to 20 cents per barrel of oil products bought from or sold to Petrobras by Trafigura and to conceal the bribe payments through the use of shell companies, and by funneling payments through intermediaries who used offshore bank accounts to deliver cash to officials in Brazil. Trafigura profited approximately $61 million from the corrupt scheme.

“Trafigura’s corrupt practices violated the FCPA, and today’s resolution demonstrates that there are steep penalties for any company that tries to bribe government officials,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division.

The department reached this resolution with Trafigura based on a number of factors, including, among others, the nature and seriousness of the offense. Trafigura received credit for its cooperation with the department’s investigation and affirmative acceptance of responsibility, which included (i) providing timely updates on facts learned during its internal investigation; (ii) making factual presentations to the department; (iii) facilitating the interviews of employees and agents, including an employee located outside the United States, and arranging for counsel for employees where appropriate; (iv) producing relevant non-privileged documents and data to the department, including documents located outside the United States in ways that navigated foreign data privacy laws, accompanied by translations of certain documents; and (v) providing all relevant facts known to it, including information about individuals involved in the conduct. However, and particularly during the early phase of the department’s investigation, Trafigura failed to preserve and produce certain documents and evidence in a timely manner and, at times, took positions that were inconsistent with full cooperation.

Trafigura also engaged in remedial measures, including: (i) developing and implementing enhanced, risk-based policies and procedures relating to, among other things, anti-corruption, use of intermediaries and consultants, third party payments, and joint venture and equity investment risk assessment; (ii) enhancing processes and controls around high-risk transactions; (iii) investment of additional resources in employee training and compliance testing; (iv) enhancing ongoing compliance monitoring and controls testing processes; and (v) proactively discontinuing the use of third-party agents for business origination. However, Trafigura was slow to exercise disciplinary and remedial measures for certain employees whose conduct violated company policy.

In addition, Trafigura’s prior misconduct, though not recent, includes a 2006 guilty plea by Trafigura AG for entry of goods by means of false statements; as well as Trafigura’s 2010 conviction of violating Netherlands export and environmental laws in connection with the discharge of petroleum waste in Côte d’Ivoire. While Trafigura ultimately accepted responsibility for its criminal conduct in this investigation, its early posture in resolution negotiations also caused significant delays and required the department to expend substantial efforts and resources to develop additional admissible evidence before Trafigura constructively reengaged in agreeing to a negotiated resolution.  Accordingly, the department determined that the appropriate resolution in this case was for Trafigura to plead guilty to one count of conspiracy to violate the FCPA. The criminal fine calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the fifth percentile of the applicable guidelines fine range, which accounts for Trafigura’s cooperation and remediation, as well as its prior history.

The FBI Los Angeles Field Office is investigating the case, with assistance from the FBI’s International Corruption Unit.

Trial Attorneys Natalie Kanerva and Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Eli S. Rubin and Joshua Paster for the Southern District of Florida are prosecuting the case.

The Justice Department’s Office of International Affairs and authorities in Brazil, Switzerland, and Uruguay provided assistance in the matter.

Housing Lottery Launches For 3745 Riverdale Avenue In Riverdale, The Bronx

 

The affordable housing lottery has launched for 3745 Riverdale Avenue, an 18-story mixed-use building in Riverdale, The Bronx. Designed by Newman Design Group and developed by Stagg Group, the structure yields 89 residences. Available on NYC Housing Connect are 27 units for residents at 130 percent of the area median income (AMI), ranging in eligible income from $92,572 to $198,250.

Amenities include pet-friendly policies, assigned parking spaces, gym, elevator, concierge, and outdoor terrace. Residences come with washers and dryers, air conditioning, intercoms, name-brand countertops and finishes, energy-efficient appliances, and dishwashers. Tenants are responsible for electricity. 

At 130 percent of the AMI, there are six studios with a monthly rent of $2,700 for incomes ranging from $92,572 to $146,900; seven one-bedrooms with a monthly rent of $2,900 for incomes ranging from $99,429 to $165,230; and 14 two-bedrooms with a monthly rent of $3,600 for incomes ranging from $123,429 to $198,250.

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than May 27, 2024.

Attorney General James Secures Over $1.9 Million from Nissan Dealers that Cheated New Yorkers

 

Five Dealers in New York City and on Long Island Required to Refund More Than 1,100 Consumers Over $1.6 Million, Pay $340,000 Penalty, and Reform Their Business Practices

New York Attorney General Letitia James today announced settlements worth more than $1.9 million with five Nissan car dealerships in New York City and on Long Island for overcharging over a thousand New Yorkers who wanted to purchase their leased vehicles at the end of their lease term. An investigation by the Office of the Attorney General (OAG) found that the dealerships added junk fees or falsified the price of vehicles between 2020 and 2023. The agreements require the dealerships to pay more than $1.6 million in restitution to more than 1,100 consumers and a civil penalty of $340,000.

“Ignoring agreements and adding bogus fees harms New York consumers, and that is something my office won’t allow to go unchallenged,” said Attorney General James. “These car dealerships lined their pockets at the expense of hardworking New Yorkers who were trying to have a reliable car to get to work, take their children to school, run errands, and live their daily lives. Our investigation and settlement put money back into New Yorkers’ pockets and send a clear message that lying to New Yorkers and manipulating costs with shady tactics will not be tolerated.” 

The OAG opened an investigation into five Nissan dealerships—Baron Nissan on Long Island, Nissan of Westbury on Long Island, Nissan of Kings in Brooklyn, Nissan of Queens, and Nissan of Staten Island—after consumers reported they were being overcharged and given inaccurate receipts. The investigation found that each of these consumers leased their Nissan cars under an agreement that gave them the option to purchase the vehicle for a set amount after the lease term ended. But when the consumers returned to the dealerships when their leases were up to buy their car, the dealerships substantially overcharged them. The dealers either added miscellaneous “dealership fees” or “administrative fees,” or inflated the vehicle’s price on the invoice given to the consumer. In some instances, customers were overcharged as much as $7,000 on an $18,000 vehicle. 

The OAG investigation also revealed that the dealerships provided customers with deceptive invoices. These included misrepresenting illegal upcharges as government fees, such as a $37 state inspection fee that dealers charged as $300, and a $50 title fee dealers charged as $500. New York law guarantees every consumer the right to a complete and accurate receipt for every car sale, yet thousands of examined invoices failed that basic test.

Under the agreements announced today: 

• Baron Nissan will pay $204,656.89 to 186 overcharged consumers and a $51,190 penalty. 
• Nissan of Kings will pay $437,560.86 to 420 overcharged consumers and a $147,000 penalty. 
• Nissan of Queens will pay $608,347.83 to 276 overcharged consumers and a $69,757 penalty. 
• Nissan of Staten Island will pay $282,255.61 to 184 overcharged consumers and a $55,200 penalty.
• Nissan of Westbury will pay $102,636.07 to 72 overcharged consumers and a $19,440 penalty. 

The penalties paid by each dealership vary based on the number of consumers overcharged and the pervasiveness and severity of the overcharging. The dealers have also agreed to audit all deals between the start of the investigation and the present, and will provide additional refunds to overcharged consumers identified in that audit.

Consumers entitled to restitution do not need to take any action to receive the payment and the dealerships have already begun paying restitution through mailed checks in the full amount of the overcharge. The dealerships have also agreed to reform their invoicing practices to ensure all lease buyout customers are neither overcharged nor provided with inaccurate receipts.

Attorney General James asks any consumers who may have been affected by deceptive or fraudulent lease buyout practices to file a consumer complaint online.

Statement From Governor Kathy Hochul on Ongoing Budget Negotiations

 

"For weeks, I have been negotiating with the Legislature to craft a budget that makes record investments for New Yorkers while putting the State on a fiscally stable path into the future. While I believe a final agreement is within reach, I recognize many New Yorkers would like to spend the holiday weekend with family and loved ones. For that reason, I will be delivering a bill to the Legislature to temporarily extend the budget deadline until April 4th. Working together, I am confident we can deliver a budget that increases the housing supply, invests in schools and health care, and makes New York safer for all."

ADAMS ADMINISTRATION UNVEILS INITIATIVE TO CREATE TENS OF THOUSANDS OF AFFORDABLE HOMES IN HIGH-DEMAND AREAS, CONTINUES URGENT CALL FOR ACTION TO ADDRESS HOUSING CRISIS

 

New Initiative Part of “City of Yes for Housing Opportunity”

 

City Releases Rezoning Lookback Reports to Show Costs of Zoning Restrictions in Low-Density Neighborhoods

New York City Mayor Eric Adams today unveiled a new initiative as part of his administration’s historic “City of Yes for Housing Opportunity” proposal that will create tens of thousands of affordable homes in areas of the city that many working-class New Yorkers are unable to afford. An outdated restriction on new residential construction — also known as the floor-to-area-ratio (FAR) cap — currently limits the number of new homes that can be built in certain high-demand areas of the city, such as Midtown Manhattan. As state lawmakers consider lifting the FAR cap, the Adams administration is proposing a new zoning tool to allow for even more density of residential buildings while simultaneously mandating the creation of permanently affordable housing across the city.

 

“New Yorkers need relief from the housing and affordability crisis, and they need it now,” said Mayor Adams. “As someone who grew up on the edge of homelessness, I know firsthand that safe, secure, and affordable housing is critical to the prosperity of any working-class New Yorker. As we announce new, bold initiatives, I am urging lawmakers at every level of government to join us in our efforts to meet this moment and deliver homes that New Yorkers need and deserve.”  

 

“Our housing crisis has been so long in the making, and the severity of our crisis is now so dire, that to change the trajectory of this problem, we need to do everything, everywhere, all at once,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “By proposing brand new residential districts that require permanently affordable homes, we are demonstrating, yet again, that New York City will continue to take bold action to meet the moment and we call on our partners across all levels of government to do the same.” 

 

“The outdated FAR cap prevents affordable housing from being built where it’s needed most, particularly in central areas of Manhattan with great access to transit, jobs, and amenities. By creating new high-density, residential zoning districts with Mandatory Inclusionary Housing, New York City will be ready to act as soon as Albany lifts this cap,” said New York City Department of City Planning (DCP) Director and City Planning Commission (CPC) Chair Dan Garodnick. “Additionally, our new rezoning lookback reports are a timely reminder that we must tackle our housing crisis with an equitable, city-wide approach, and that’s exactly what these new zoning districts will help us do.”

 

“A citywide housing crisis requires a citywide approach, and the ‘City of Yes for Housing Opportunity’s’ commonsense solutions will address the root causes of rising housing costs by adding permanently affordable housing opportunities through zoning,” said New York City Department of Housing Preservation and Development Commissioner Adolfo Carrión Jr. “With a record low vacancy rate, now is the time for the bold action we need to address the historically uneven approach to housing production and create housing in every neighborhood across the city.”

 

“Addressing the affordability challenges our city is faced with requires action from every level of government and the ability to build more housing in every neighborhood of the five boroughs” said Executive Director for Housing Leila Bozorg. “Ensuring we are ready to move on pending state action to lift the FAR cap, along with other bold ideas in our ‘City of Yes for a Housing Opportunity’ proposal, means we’ll be a step closer to delivering permanently affordable homes in neighborhoods that have historically been inaccessible for many New Yorkers.”

 

The Adams administration’s ambitious proposal needs state lawmakers to lift the FAR cap in order to be enacted. Once the cap is lifted, pending City Council approval of the City of Yes for Housing Opportunity plan, new residential projects undergoing a rezoning could benefit from this new tool — which would enable residential projects to build up to 15 or 18 times their lot size — and build significantly more housing on their site. Under the administration’s proposal, new housing projects will be required to build permanently affordable housing through Mandatory Inclusionary Housing. Mandatory Inclusionary Housing requires that 20 percent to 30 percent of the housing in a development is affordable to New Yorkers earning an average of 40 percent to 80 percent of the area median income.

 

Underscoring the urgent need for new tools to spur the creation of new housing, DCP today also released a set of “rezoning lookback” reports, examining 15 neighborhood rezonings that were enacted in 2009 and how zoning changes impacted local housing production. The reports show that when policymakers enacted more restrictive zoning in low-density neighborhoods, housing production, effectively, stopped, and that new housing productions was concentrated in select areas of the city. The reports shed new light on the need to build more affordable housing across the five boroughs.

 

In addition to calling for the state to lift the FAR cap, the administration has continued to call for lawmakers in Albany to create new tools this legislative session to help the city build more affordable housing, including passing a new affordable housing tax incentive, a tax incentive to turn empty office buildings into affordable homes, and a pathway to make basement and cellar apartments safe and legal.

 

City of Yes for Housing Opportunity is the most pro-housing set of zoning changes in New York’s history. These changes includes lifting arbitrary and costly parking mandates for new residential construction; the Universal Affordability Preference, a bonus allowing roughly 20 percent more housing in developments, so long as the additional homes are affordable; transit-oriented development and Town Center zoning, which would allow three-to-five story apartment buildings to be built near transit and along commercial corridors; and allowing homeowners to add accessory homes like backyard cottages.

 

DCP is currently undertaking environmental review on the proposal and will refer it for public review by community boards and borough presidents later this spring. It is anticipated to come before the CPC and the New York City Council for a vote before the end of the year.

 

To accelerate housing production and deliver relief to New Yorkers, the Adams administration has advanced a number of creative solutions, including laying out an office conversion accelerator to advance conversions more quickly; unveiling new proposed rules to streamline approvals for sustainable housing; and debuting several pilot programs to help fund the creation of accessory dwelling units, help move New Yorkers out of shelters and into renovated apartments, and help fuel mixed-income developments in neighborhoods across the city; among other innovative efforts.

 

City of Yes for Housing Opportunity is the third of the Adams administration’s three “City of Yes” initiatives to update New York City’s zoning laws for a more sustainable, prosperous, and affordable city. The first — “City of Yes for Carbon Neutrality”— was adopted by the City Council in December. The second — “City of Yes for Economic Opportunity” was approved by the CPC on March 6 and is being considered by the City Council.

 

Man Sentenced for $87M Healthcare Fraud Kickback Conspiracy

 

An owner of a durable medical equipment (DME) company was sentenced to three and a half years in prison and ordered to forfeit $1.8 million for his participation in a healthcare fraud kickback conspiracy.  

According to court documents and evidence presented at trial, Mark Sorensen, 53, of Chicago, owned Symed Inc. (Symed), a Chicago DME pharmacy that paid illegal kickbacks to obtain patients to bill to Medicare, TRICARE, and the Department of Labor’s Office of Workers’ Compensation Programs. Between 2015 and 2018, Sorensen illegally bought patient leads from Bernie Perconti, who in turn obtained the leads from others, including Craig O’Neil and Christine Anderson. Sorensen and his co-conspirators also tricked patients into agreeing to receive braces. Many times, patients received braces that they did not need or want, and sometimes received four, five, or six braces. The co-conspirators also repeatedly called and faxed doctors to get them to sign the prescriptions authorizing the braces. In total, Sorensen and his co-conspirators, through Symed, fraudulently billed Medicare $87 million and received $23.6 million.

Perconti, O’Neil, and Anderson each pleaded guilty to conspiracy to pay and receive kickbacks in October 2019, July 2020, and January 2021, respectively. Perconti and O’Neil are scheduled to be sentenced at a later date. Anderson was sentenced in April 2022.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Robert W. Wheeler Jr. of the FBI Chicago Field Office; Special Agent in Charge Mario Pinto for the Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Irene Lindow for the Department of Labor Office of Inspector General (DOL-OIG); and Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Southeast Field Office made the announcement.

The FBI, HHS-OIG, DOL-OIG, and DCIS are investigating the cases.