Attorney General James Recovers $1.7 Million from Cryptocurrency Platform for Operating Illegally

 

CoinEx Required to Stop Operating in the U.S., Pay Penalties, and Refund New York Investors

New York Attorney General Letitia James today recovered more than $1.7 million from COINEX (CoinEx) for failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange. Today’s agreement resolves Attorney General James’ lawsuit against CoinEx and requires the company to refund thousands of New York investors more than $1.1 million and pay more than $600,000 in penalties to the state. As part of today’s consent order, CoinEx is banned from offering, selling, or purchasing securities and commodities in New York and is prohibited from making its platform available in the state. In response to Attorney General James’ lawsuit, CoinEx publicly announced that it would withdraw its platform and services from the United States. Attorney General James has worked to increase oversight and regulation of cryptocurrency companies to protect New York investors, and has recovered more than $500 million from the cryptocurrency industry.

“Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy,” said Attorney General James. “Today’s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York’s laws. My office will continue to crack down on crypto companies that brazenly disregard the law, mislead investors, and put New Yorkers at risk.”

CoinEx is a Hong Kong-based virtual currency trading platform that allows investors to buy and sell cryptocurrency through its website and mobile app. New York law requires securities and commodities brokers to register with the state, which CoinEx failed to do. An investigator from the Office of the Attorney General (OAG) was able to create an account with CoinEx using a computer with a New York-based IP address to buy and sell digital tokens although CoinEx was not registered with the state.

Today’s agreement requires CoinEx to provide full refunds totaling $1,172,971.50 to 4,691 New York investors. Investors can receive their refund in the form of cryptocurrency directly from CoinEx over the next 90 days. After 90 days, eligible investors can receive their refund as U.S. currency from OAG by emailing coinexrefund@ag.ny.gov. Each investor will be refunded the amount of cryptocurrency or the cash equivalent of the cryptocurrency they held in their accounts as of April 25, 2023.

In addition, CoinEx must implement geoblocking to prevent New York IP addresses from accessing their platform. CoinEx is also prohibited from creating any new accounts for U.S. customers and existing U.S. customers can only withdraw their crypto from the platform.

Today’s settlement continues Attorney General James’ efforts to enforce New York laws in the cryptocurrency industry. Last month, Attorney General James announced sweeping cryptocurrency legislation that will increase regulations of the cryptocurrency industry to protect New York investors. Also last month, Attorney General James secured $4.3 million from Coin Cafe for failing to register as a commodity broker-dealer and defrauding investors. In March, Attorney General James also brought a lawsuit against KuCoin for failing to register as a securities broker or dealer or commodities broker-dealer with the OAG. In January, Attorney General James and a multistate coalition recovered $24 million from the cryptocurrency platform Nexo for operating illegally. Attorney General James also sued the former CEO of Celsius for defrauding investors and concealing the company’s dire financial condition. In March 2022, Attorney General James issued a taxpayer notice to virtual currency investors and their tax advisors to accurately declare and pay taxes on their virtual investments.

In October 2021, Attorney General James directed unregistered crypto lending platforms to cease operations for not registering with the state. In September 2021, Attorney General James recovered $479.9 million from GTV Media for failing to register cryptocurrency sales. Also in September 2021, Attorney General James secured a $3 million court judgment against Coinseed. In February 2021, Attorney General James required Bitfinex and Tether to end all trading activity in New York and required iFinex and Tether and their related companies to pay $18.5 million in penalties.

Attorney General James urges New Yorkers who have been affected by deceptive conduct in virtual assets markets to report these issues to OAG. Attorney General James also encourages workers in the cryptocurrency industry who may have witnessed misconduct or fraud to file an online whistleblower complaint with her office, which can be done anonymously.

AG James Has Recovered More Than $500 Million from Crypto Industry for Violating New York Laws

MAYOR ADAMS, OLR COMMISSIONER CAMPION ANNOUNCE TENTATIVE CONTRACT AGREEMENT WITH UNIFORMED OFFICERS COALITION

 

Pattern Conforming Settlement With More Than 32,000 Uniformed Members Brings Total City Workforce Under Contract to 75 Percent

New York City Mayor Eric Adams and Office of Labor Relations (OLR) Commissioner Renee Campion today announced a five-year tentative contract agreement with the Uniformed Officers Coalition (UOC), a coalition of uniformed unions representing more than 32,000 city employees. With today’s settlement, 75 percent of the city workforce is now under contract. UOC represents 11 unions across all four uniformed city agencies: the Detectives Endowment Association (DEA), the Sergeants Benevolent Association (SBA), the Lieutenants Benevolent Association (LBA), the Captains Endowment Association (CEA), the Uniformed Firefighters Association (UFA), the Uniformed Fire Officers Association (UFOA), the Correction Officers Benevolent Association (COBA), the Correction Captains Association (CCA), the Assistant Deputy Wardens (ADW), the Sanitation Officers Association (SOA), and the Uniformed Sanitation Chiefs Association (USCA). 

The tentative agreement conforms to the economic pattern established under the Police Benevolent Association settlement in April, and follows agreements with District Council 37 in February and the United Federation of Teachers earlier this week. Today’s agreement includes wage increases ranging from 3.25 percent to 4.00 percent over the contract period.

 

“As a former union member and someone who retired at the rank of captain in the New York City Police Department, I am proud we have reached this significant agreement with the Uniformed Officers Coalition,” said Mayor Adams. “The men and women who work tirelessly to keep our city safe and clean deserve fair pay, and this agreement represents a concrete demonstration of our gratitude for their efforts.”

 

“This agreement underscores the mayor’s commitment to investing in our city’s most valuable resource: our people,” said OLR Commissioner Renee Campion. “I want to thank all the unions who came to the table and negotiated this agreement, which is fair to city workers and taxpayers.”

 

“It is our duty to care for the people who care for all of us,” said Deputy Mayor for Public Safety Philip Banks III. “That starts with fair compensation for the work they do. This investment into our workforce is an investment in the safety and prosperity of our city.”

 

“Thank you to Commissioner Campion and Commissioner Tisch for their work to reach a deal for our uniformed sanitation leaders,” said Deputy Mayor for Operations Meera Joshi. “The managers covered by this tentative deal are working on major quality of life initiatives for New Yorkers and keeping our streets clean. This deal acknowledges and gives thanks for their hard work.”

 

“This meaningful new agreement is welcome news for our uniform investigators, supervisors, and executives, who work night and day to ensure public safety in every New York City neighborhood,” said New York City Police Department (NYPD) Commissioner Keechant L. Sewell. “Their work has helped us achieve continuing crime reductions, both last year and this, including double-digit decreases in shootings, shooting victims, and homicides. The city is fortunate to have these truly dedicated public servants, and I’m proud that this agreement reflects a recognition of their continuing contributions to our common good. We thank each of the unions for their continued partnership in working towards the best interests of our officers, and by extension, this city.”

 

“The men and women of the FDNY run into danger when others run away from it, and keeping our city safe is not possible without them. A group of dedicated public servants, they consistently operate without hesitation and demonstrate bravery at every turn,” said Fire Department of the City of New York (FDNY) Commissioner Laura Kavanagh. “This agreement is a nod to that hard work and dedication, and we are appreciative of Mayor Adams for getting this done.”

 

“Public safety in our city and improving the safety and operations of our jails is not possible without the bold and dedicated men and women of the Department of Correction,” said New York City Department of Correction Commissioner Louis A. Molina. “I, too, was once a uniformed member of law enforcement, serving as a police officer in Manhattan, and I know firsthand how important this agreement is for those who serve and protect New Yorkers.”

 

“The Sanitation employees covered by this tentative agreement — supervisors, superintendents, and chiefs — are on the front lines of implementing Mayor Adams' cleanliness agenda,” said New York City Department of Sanitation Commissioner Jessica Tisch. “They are overseeing the city's graffiti removal operation, getting derelict vehicles off the streets, and enforcing the once-in-a-generation change to when trash goes out that is sending rats packing. They've delivered for our city, and today, Mayor Adams is delivering for them.”

 

“The era of defunding and dismantling our essential workforce is over. The COBA executive board and I extend our deepest gratitude to Mayor Adams and his administration for understanding the gravity of the crisis we have faced for the past several years and addressing our concerns with a significant wage increase that reflects the tremendous sacrifices we have made and continue to make in keeping New York City safe,” said Benny Boscio, president, COBA. “This economic package is a meaningful investment in both the future of our workforce and the future of our jails. I also want to thank OLR Commissioner Renee Campion for negotiating fairly and in good faith throughout negotiations and DOC Commissioner Louis Molina for his steadfast support. We look forward to continuing our productive conversations in our unit bargaining sessions and negotiating the best possible contract for New York City's Boldest.”

 

“On behalf of the men and women I represent, I would like to thank Mayor Adams and OLR Commissioner Campion for negotiating this contract with us and the 10 other unions in our coalition,” said Patrick Ferraiuolo, president, CCA. “This is proof that, when we can sit down and discuss our needs and concerns and when the people on the other side of the table are logical and understanding, anything can be accomplished.  The members of the Correction Captains' Association work in what is one of the most challenging environments, and I view this agreement as confirmation from the mayor and commissioner that our hard work does not go unnoticed.”

 

“The Detectives’ Endowment Association has been at the bargaining table tirelessly on behalf of our members for months because we know how much these highly skilled men and women are worth,” said Paul DiGiacomo, president, DEA. “This salary increase proves that Mayor Adams and his administration realize how important NYPD detectives are to New York City. For that, the union is grateful.”                            

 

“On behalf of all of the members of the UFA, the UFA acknowledges and appreciates the impactful collaboration between the city and the coalition of 11 unions, with special thanks to Mayor Eric Adams and Commissioner Renee Campion, for resolving this important five-year economic contract package for a large number of our city’s uniformed employees,” said Andrew Ansbro, president, UFA.

 

“The UFOA is proud of the work our uniform coalition put in to reach this agreement,” said Jim McCarthy, president, UFOA. “The FDNY fire officers will have increases in their current wages and are assured raises in the next few years. We look forward to continuing with our unit bargaining and improving the benefits of our active and retired members.”

 

The total cost of the tentative agreement is approximately $4 billion through Fiscal Year 2027. It is fully covered by funding set aside in the Labor Reserve as of the Fiscal Year 2024 Executive Budget.

 

As in previous rounds of bargaining, each individual union within the coalition will have an opportunity to bargain on issues specific to their bargaining unit, within the same overall economic framework.

 

Members of the unions covered under this agreement will receive the following compounded and retroactive wage increases, with start and end dates varying based on when their contract from the last round of bargaining expired:

 

• 3.25% on first day of Year 1
• 3.25% on first day of Year 2
• 3.50% on first day of Year 3
• 3.50% on first day of Year 4
• 4.00% on first day of Year 5

 

Under the agreement, there is also funding available for unit bargaining to address recruitment and retention issues.

 

The agreement must be ratified by each union’s membership.

NYS Office of the Comptroller DiNapoli Audit Finds Hazardous Conditions Persist in Mitchell-Lama Developments

 

New York State’s affordable housing agency, Homes and Community Renewal (HCR), is falling short in its oversight of several Mitchell-Lama developments, according to an audit released today by State Comptroller Thomas P. DiNapoli. Auditors found unsafe conditions at facilities that went unaddressed, sometimes for years, and questionable spending.

“Our auditors found that tenants are subjected to unsanitary, unacceptable conditions and that water leaks, collapsing ceilings, mold and other problems were left unaddressed sometimes for years,” said DiNapoli. “Homes and Community Renewal needs to improve its oversight of conditions at Mitchell-Lama buildings and monitor spending more closely. Tenants deserve nothing less.” 

Auditors examined conditions and records at four Mitchell-Lama developments in New York City – 753 Classon Ave. Housing Co. (Classon), located in Brooklyn, Cathedral Parkway Towers (Cathedral), located in Manhattan, Findlay House (Findlay), located in the Bronx, and Jamie Towers, also located in the Bronx -- between 2019 and January 2023. They found poor conditions and disrepair at all of the developments. Auditors also found $1.5 million in total spending at the developments that was either unrelated to normal operations, lacked adequate support or for which there were no approvals, competitive analysis and bidding, as required.

The Mitchell-Lama Housing program provides affordable rental and cooperative housing to middle-income families. The program is supervised by HCR’s Division of Housing and Community Renewal (DHCR). Mitchell-Lama developments are owned by private companies which often enter into agreements with agents who manage their buildings. Owners are responsible for providing safe and habitable housing and maintaining the development’s physical and financial integrity, while managing agents manage the developments to ensure the owners’ responsibilities are met. Each Mitchell-Lama development is assigned a DHCR Housing Management Representative who is responsible for monitoring and evaluating the development’s management and providing recommendations for corrections.

Auditors made multiple visits to the four developments and compared their findings with Field and Office Visit Reports that management representatives are required to maintain.

Poor Physical Conditions: Highlights (Photos in Audit)

• Classon: Partially collapsed ceilings in the community room, an entrance out of compliance with the Americans with Disability Act standards and evidence of mold in the basement and community room.
• Jamie Towers: Stairwell doors and garbage chutes would not close on their own, posing a fire risk to tenants, cracked walkways and an out-of-service elevator.
• Findlay Houses: Self-closing door at the building’s main entrance failing to close properly, posing a safety risk to tenants.
• Cathedral: Missing concrete, calcium drips, a trip hazard, pools of water, cracks in the sidewalks, bricks jutting out around flower beds and retaining walls, an unsafe retaining wall and mold and fungus on the playground mat of the preschool.

To improve physical conditions at the developments, auditors made several recommendations to increase DHCR’s monitoring, including conducting at least one annual site visit to each development, taking action against managing agents who are not compliant with regulations, ensuring immediate corrective action is taken to address unsafe conditions and developing a process to use publicly available violations and complaints data in the monitoring of developments.

Misspent Funds

In addition to poor oversight of physical conditions, auditors determined that DHCR officials’ oversight of financial conditions at these developments was weak. In a review of 280 transactions, totaling $1.9 million, auditors found that nearly half, 139, worth about $1.5 million, were either unrelated to normal operations, inadequately supported, or lacked documented proof of approval, competitive analysis, or bidding, as required.

Auditors looked at expenses at the four developments and found, in three – Cathedral, Jamie Towers, and Classon – instances where funds were not properly accounted for or were used for unusual purposes. Auditors determined that DHCR officials are also not ensuring that building management is being held accountable for maintaining healthy, safe standards of living for tenants and apartment owners.

Despite the negative financial findings, management at all four developments have recently applied for a maintenance or rent increase.

The audit included several recommendations to improve the monitoring and oversight of financial conditions, including that DHCR officials review the inappropriate or unusual expenditures identified by the auditors, implement policies and procedures for certain payments and procurements as well as internal controls, and mandate regular training for management.

DHCR disputed several of the audit findings and noted that the COVID-19 pandemic created many challenges, including limiting its ability to perform inspections. Officials did agree to consider many of the recommendations made. The agency’s response is included in the audit.

This is the first in a series of audits on the physical and financial conditions at Mitchell-Lama Developments statewide. 

Audit

Division of Housing and Community Renewal: Physical and Financial Conditions at Selected Mitchell-Lama Developments in New York City

Housing Lottery Launches For 1791 Marmion Avenue In Crotona Park East, The Bronx

 

The affordable housing lottery has launched for 1791 Marmion Avenue, a seven-story residential building in Crotona Park East, The Bronx. Designed by Dome Architecture Design and Engineering and developed by Elie Fourti, the structure yields 27 residences. Available on NYC Housing Connect are 26 units for residents at 130 percent of the area median income (AMI), ranging in eligible income from $97,749 to $187,330.

Amenities includes a garage, bike storage lockers, elevator, recreation room, rooftop terrace, and a virtual doorman. Residences include intercoms, air conditioning, smart controls for heating and cooling, cable or satellite TV, and name-brand kitchen appliances, countertops, and finishes. Tenants are responsible for electricity.

At 130 percent of the AMI, there are 11 studios with a monthly rent of $2,851 for incomes ranging from $97,749 to $138,840; nine one-bedrooms with a monthly rent of $3,013 for incomes ranging from $103,303 to $156,130; and six two-bedrooms with a monthly rent of $3,535 for incomes ranging from $121,200 to $187,330

Prospective renters must meet income and household size requirements to apply for these apartments. Applications must be postmarked or submitted online no later than July 25, 2023.

News, updates and more from NYC Council Member Rafael Salamanca, Jr.

 

Bronx Power 100 List!   Thank you City and State NY for this incredible honor -  recognizing me as #4 on the Bronx Power 100 list! As a Bronx native, I am proud of the positive change I have  been able to bring to my community and will continue to  do all I can to make the Bronx a better place for all. National Puerto Rican Day Parade!   Big shout out to the National Puerto Rican Day Parade  organizers for putting together this year’s amazing  National Puerto Rican Day Parade! It was incredible seeing how many people showed up  this year to celebrate and honor Puerto Rican culture  and heritage .

Nos Quedamos is HIRING: Youth Organizer (Start ASAP). Submission deadline: 6/16/23

Nos Quedamos is HIRING: Youth Organizer (Start ASAP) We Stay/Nos Quedamos is looking for a dynamic youth change agent—for the position of Youth Organizer—interested in becoming a community leader around environmental justice issues in the Melrose Commons section of the Bronx. Apply! Download Recruitment Flyer | Download notice

 

HEALING MINDS, BODY AND SOUL ONE ROOFTOP GARDEN AT A TIME 1. Practice relationship-building with our group of residents. 2. Facilitating meetings/ workshops with groups of residents and other youth. 3. Interest in organizing or interest to learn about organizing. Should be able to join in on organizing and Environmental Justice or Climate Justice-related webinars or other workshops

Role: Youth Organizer Pay: $15/hr Commitment: 15 hours a week Schedule: Tuesday and Thursdays from 10am-5pm and Fridays from 10am-5pm Requirement: You MUST be between the ages of 15 and 25 to apply for this position

Submission deadline: June 16, 2023 — by 5:00pm.

Interested individuals, submit a resume and cover letter to our Resiliency Organizer, Imani Cenac at: icenac@nosquedamos.org

Nos Quedamos is a firm supporter of Equal Employment Opportunity laws and practices. Read our EEO Policy.

NYC PUBLIC ADVOCATE'S STATEMENT ON THE INDICTMENT OF DANIEL PENNY

 

"This indictment is an important step, and shows this case is being treated with the gravity it demands. The legal process will play out, and in our system Daniel Neely gets the presumption of innocence. 

"That’s a luxury not afforded to Jordan Neely before he was killed on camera — homeless, hungry, Black and in mental crisis all at the same time. No matter the charges or the outcome in this case, we have to reckon with and upend the systems that left Jordan angry and hopeless, and the structures that mean Daniel Penny has received more resources in the last month than Jordan did in his entire life, marked by trauma and cut tragically short."              

U.S. Army Soldier Pleads Guilty To Terrorism Charges For Attempting To Assist ISIS To Conduct Deadly Ambush On U.S. Troops

 

U.S. Army Private First Class Cole Bridges Provided Tactical Guidance in Attempt to Help ISIS Attack and Murder U.S. Service Members in the Middle East

Damian Williams, the United States Attorney for the Southern District of New York, announced today that COLE BRIDGES, a/k/a “Cole Gonzales,” pled guilty to attempting to provide material support to a designated foreign terrorist organization and attempting to murder U.S. military service members based on BRIDGES’s efforts to assist the Islamic State of Iraq and al-Sham (“ISIS”) to attack and kill U.S. soldiers in the Middle East.  BRIDGES pled guilty today before U.S. District Judge Lewis J. Liman.

According to the Complaint, the Indictment to which BRIDGES pled guilty, and other documents in the public record, as well as statements made in public court proceedings:

BRIDGES joined the U.S. Army in approximately September 2019 and was assigned as a cavalry scout in the Third Infantry Division based in Fort Stewart, Georgia.  Beginning in at least 2019, BRIDGES began researching and consuming online propaganda promoting jihadists and their violent ideology.  BRIDGES also expressed his support for ISIS and jihad on social media.  In or about October 2020, BRIDGES began communicating with a Federal Bureau of Investigation (“FBI”) online covert employee (the “OCE”), who was posing as an ISIS supporter in contact with ISIS fighters in the Middle East.  During these communications, BRIDGES expressed his frustration with the U.S. military and his desire to aid ISIS.  BRIDGES then provided training and guidance to purported ISIS fighters who were planning attacks, including advice about potential targets in New York City.  BRIDGES also provided the OCE with portions of a U.S. Army training manual and guidance about military combat tactics, for use by ISIS.

In or about December 2020, BRIDGES began to supply the OCE with instructions for the purported ISIS fighters on how to attack U.S. forces in the Middle East.  Among other things, BRIDGES diagrammed specific military maneuvers intended to help ISIS fighters maximize the lethality of attacks on U.S. troops.  BRIDGES further provided advice about the best way to fortify an ISIS encampment to repel an attack by U.S. Special Forces, including by wiring certain buildings with explosives to kill the U.S. troops.  Then, in January 2021, BRIDGES provided the OCE with a video of himself in his U.S. Army body armor standing in front of a flag often used by ISIS fighters and making a gesture symbolic of support for ISIS.  Approximately a week later, BRIDGES sent a second video in which BRIDGES, using a voice manipulator, narrated a propaganda speech in support of the anticipated ambush by ISIS on U.S. troops.

BRIDGES, 22, of Stow, Ohio, pled guilty to attempting to provide material support to ISIS, which carries a maximum sentence of 20 years in prison, and attempting to murder U.S. military service members, which carries a maximum sentence of 20 years in prison.  BRIDGES is scheduled to be sentenced by Judge Liman on November 2, 2023, at 2:00 p.m.

The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which primarily consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies.  Mr. Williams also thanked U.S. Army Counterintelligence, the FBI Washington Field Office, the FBI Atlanta Field Office and its Savannah Resident Agency, the FBI Cleveland Field Office, the FBI’s Counterterrorism Division, the U.S. Attorney’s Office for the Southern District of Georgia, the Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, the U.S. Army Third Infantry Division, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance.