NYC EMERGENCY MANAGEMENT ISSUES WEATHER ALERT FOR SATURDAY INTO SUNDAY

 

Agency Continues to Monitor Potential Winter Storm

The New York City Department of Emergency Management has issued a weather alert for Saturday, January 6 into Sunday, January 7, 2024. According to the National Weather Service, light snow and a wintry mix begin early Saturday afternoon, becoming increasingly likely by the evening. Rain continues to mix with snow overnight, particularly along the coast, with precipitation tapering off Sunday morning. Spotty snow showers may continue through the afternoon or early evening. Wind gusts of 30 to 35 mph overnight and minor coastal flooding on Sunday morning will also be possible.

 

The current forecast calls for snowfall amounts of 1 to 3 inches in the northern boroughs with less than half an inch along the coast. If conditions trend colder, reasonable worst-case amounts of 3 to 5 will be possible in the northern boroughs, with 1 to 2 inches elsewhere across the city. Snowfall is expected to be wet, so full accumulation is not expected. Slick roadways and minor travel impacts will be possible during periods of snow. Icy conditions are not expected at this time.

 

“With initial forecasts predicting a potentially significant storm hitting the tri-state area this weekend, our agencies are prepared to handle anything that’s thrown our way,” said New York City Mayor Eric Adams. “We’ll continue to keep New Yorkers updated about what to expect and our preparations for the storm. As always, the best way to stay safe is to stay informed – so sign up for Notify NYC to get the latest information directly from the city.”

 

“As the tri-state area anticipates a winter weather system this weekend that could bring substantial impact, New York City’s agencies are prepared and are actively coordinating with the National Weather Service and our utility partners to ensure a comprehensive response to mitigate and address any potential effects from this weather,” said NYC Emergency Management Commissioner Zach Iscol. “I encourage all New Yorkers to closely monitor the forecast and to subscribe to Notify NYC, the city’s free verified emergency alert system.”

 

“Thanks to historic investments in the Sanitation Department, we have the highest uniformed headcount in decades heading into this winter. We are ready for whatever Mother Nature throws our way,” said New York City Department of Sanitation Commissioner Jessica Tisch.

 

NYC Emergency Management has conducted coordination calls and briefings with the National Weather Service, partner city and state agencies, and infrastructure and utility companies. NYCEM has enhanced staffing at its Watch Command, which maintains 24/7 surveillance and response over weather developments and emergency situations, ensuring continuous monitoring, readiness, and interagency coordination. Additionally, it has bolstered its Response Unit to provide support to the city’s field operations and ensure the provision of emergency logistics and communications. Furthermore, NYCEM’s Emergency Operations Center, which is currently active for asylum seeker operations, remains fully operational as a hub of coordination and response, enabling the city to effectively manage multiple ongoing operations simultaneously.

 

NYC Emergency Management offered New Yorkers tips on staying safe before, during, and after winter storms: https://www.nyc.gov/site/em/ready/winter-weather-prep.page. 

 

Safety Tips

• Stay informed. Before and during an emergency, the city will send emergency alerts and updates to New Yorkers through various channels, including Notify NYC. Sign up for emergency notifications online or call 311. You can also follow @NotifyNYC on Twitter.
• Allow for extra travel time and expect delays with little to no notice. Use public transportation whenever possible.
• If you must drive, drive slowly. Use major streets or highways for travel whenever possible.
• If you live in a basement apartment, or in a low-lying, flood-prone, or poor drainage area, be prepared to move to higher ground or leave your apartment should conditions worsen.
• Turn around, don't drown. Do not drive into flooded streets or enter flooded subway stations.
• Check on friends, relatives, and neighbors, especially older adults and people with disabilities, access and functional needs, or health conditions. Help them to prepare if needed.
• Charge your phones and keep a flashlight and batteries handy. If you lose power and have a disability and/or use life-sustaining equipment and need immediate assistance, call 911.
• To report power outages, downed power lines or damaged electrical equipment, call your power provider immediately to report the outage. Con Edison’s 24-hour hotline is 800-75-CONED (752-6633) (TTY: 800-642-2308). You can also report an outage online on Con Edison's website. National Grid’s 24-hour hotline is 718-643-4050 (TTY: 718-237-2857). PSEG Long Island’s 24-hour hotline is 800-490-0025 (TTY: 631-755-6660)
• Prepare your property by bringing inside loose, lightweight, or unsecured objects such as holiday decorations, lawn furniture, potted plants, garbage cans, and garden tools.

 

Governor Hochul Directs State Agencies to Prepare as Winter Storm is Forecast to Impact New York State

 

Current Projections Show Widespread 3-8 Inches of Heavy, Wet Snow Across Areas North of New York City; New York City Metro Area May See Wintry Mix of Rain and Snow

Forecast Specifics Still Have Potential to Change in Coming Days

New Yorkers Urged to Prepare for Potential Power Outages, Hazardous Travel and Other Severe Winter Weather Impacts

Governor Kathy Hochul today directed State agencies to prepare emergency response assets in advance of a large coastal weather system predicted to bring heavy, wet snow to much of the state beginning late Saturday and continuing into Sunday for some places. While there is still uncertainty regarding snow totals and exactly where snow will transition to rain, current forecasts project 3 to 8 inches of snow throughout parts of the Southern Tier, Mid-Hudson, Capital, Mohawk Valley, Central New York, and the Finger Lakes Regions, with a wintry mix of snow and rain in the New York City Metro Area. As these types of conditions can cause power outages and hazardous travel, Governor Hochul is urging New Yorkers to begin preparing their households as well, and to closely monitor their local forecasts in the coming days as forecast details become clearer.

“We are watching an impending coastal weather system moving in this weekend, and in preparation I've directed State agencies to mobilize emergency response assets,” Governor Hochul said. “We anticipate heavy, wet snowfall across various regions, potentially causing power outages and hazardous travel. I urge New Yorkers to be vigilant. Prepare your households, monitor local forecasts, and plan for the next couple of days as the forecast comes into clearer view. Together, we'll weather the storm.”

For a complete listing of weather alerts and forecasts, visit the National Weather Service website at https://alerts.weather.gov. New Yorkers are also encouraged to sign up for emergency alerts by subscribing to NY Alert at https://alert.ny.gov, a free service providing critical emergency information to your cell phone or computer.

Agency Activities

New York State Division of Homeland Security and Emergency Services

The Division is actively monitoring the weather forecast and coordinating the State's response to the weather event. Office of Emergency Management staff are in contact with local counterparts and are prepared to facilitate requests for assistance. The Division is prepared to deploy emergency response assets and shelter supplies from the State's stockpiles.

New York State Department of Transportation

The State Department of Transportation is monitoring weather conditions and prepared to respond with 3,692 supervisors and operators available statewide. All residency locations will remain staffed for 24/7 operation throughout the duration of the event and priority cleanup operations. All available snow and ice equipment is ready to deploy. Fleet mechanics in affected areas will be staffing all main residency locations 24/7 to perform repairs and keep trucks on the road.

Statewide equipment numbers are as follows:

• 1,617 large plow trucks
• 149 medium duty plows
• 52 tow plows
• 343 large loaders
• 36 snow blowers

For real-time travel information, motorists should call 511 or visit https://www.511ny.org or the mobile site at m.511ny.org, New York State's official traffic and travel information source.

Thruway Authority

Thruway Authority staff is closely monitoring the weather forecast and ready to respond with 700 operators and supervisors available. Statewide equipment numbers and resources are listed below:

• 368 large and medium duty plow trucks
• 11 tow plows
• 67 loaders
• More than 127,000 tons of salt on hand

Variable Message Signs and social media are utilized to alert motorists of winter weather conditions on the Thruway.

The Thruway Authority encourages motorists to download its mobile app which is available for free on iPhone and Android devices. The app provides motorists direct access to real-time traffic information, live traffic cameras, and navigation assistance while on the go. Motorists can also sign up for TRANSalert e-mails and follow @ThruwayTraffic on X for the latest traffic conditions along the Thruway.

New York State Department of Public Service

Utility companies regulated by the Department of Public Service have approximately 5,500 workers available statewide to engage in repair and restoration efforts for the winter weather system. DPS staff will track utilities' work throughout the event and ensure utility companies shift appropriate staffing to regions that experience the greatest impact. If your service is interrupted, visit the DPS Utility Service Interruptions website for tips.

New York State Police

State Police are monitoring weather conditions and are prepared to deploy additional Troopers as needed. All State Police four-wheel drive and specialized vehicles, including snowmobiles and utility terrain vehicles, are staged and ready for immediate response, and all emergency power and communications equipment has been tested.

New York State Department of Environmental Conservation

DEC Emergency Management staff, Environmental Conservation Police Officers, Forest Rangers, and regional staff are on alert and monitoring the developing situation and weather forecasts. All available assets are positioned to assist with any emergency response.

DEC reminds those responsible for the large-scale removal and disposal of snow to follow best management practices to help prevent flooding and reduce the potential for pollutants like salt, sand, oils, trash, and other debris in snow from affecting water quality. Disposal of snow in local creeks and streams can create ice dams which may cause flooding in nearby areas. Public and private snow removal operators should be aware of these safety issues during and after winter storms. Additional information is available at https://www.dec.ny.gov/docs/water_pdf/togs5111new.pdf.

New York State Office of Parks, Recreation and Historic Preservation

New York State Park Police and park personnel are on alert and closely monitoring weather conditions and impacts. Response equipment is being fueled, tested, and prepared for storm response use. Park visitors should check https://parks.ny.gov/ or call their local park office for the latest updates regarding park hours, openings, and closings.

Metropolitan Transportation Authority

The MTA is closely monitoring weather conditions to ensure safe, reliable service. MTA employees will be poised to spread salt, clear platforms and stairs where ice exists, and keep signals, switches, and third rail operating, remove any downed trees that may fall across tracks, and attend to any weather-related challenges during the storm. MTA Bridges and Tunnels is advising motorists to use caution when driving on icy roadways and drive at reduced speeds.

Customers are encouraged to check https://new.mta.info for the latest service updates, and to use caution while navigating the system. Customers should also sign up for real-time service alerts via text or email. These alerts are also available via the MTA's apps: MYmta and TrainTime.

Port Authority

The Port Authority monitors weather conditions across all its facilities. In the event of severe weather conditions, the agency issues regular travel alerts and updates as needed. For the latest information about Port Authority facilities, please check social media, sign up for PA alerts or download one of the PA mobile apps, including RidePATH, which provides real-time updates and alerts for PATH service.

Safety Tips

Travel

Some of the most important tips for safe driving include:

• Do not drive unless necessary.
• If you must travel, make sure your car is stocked with survival gear like blankets, a shovel, flashlight and extra batteries, extra warm clothing, set of tire chains, battery booster cables, quick energy foods and brightly colored cloth to use as a distress flag.
• If you have a cell phone or other communications device such as a two-way radio available for your use, keep the battery charged and keep it with you whenever traveling. If you should become stranded, you will be able to call for help, advising rescuers of your location.
• The leading cause of death and injuries during winter storms is transportation accidents. Before getting behind the wheel, make sure that your vehicle is clear of ice and snow; good vision is key to good driving. Plan your stops and keep more distance between cars. Be extra alert and remember that snowdrifts can hide smaller children. Always match your speed to the road and weather conditions.
• It is important for motorists on all roads to note that snowplows travel at speeds up to 35 mph, which in many cases is lower than the posted speed limit, to ensure that salt being dispersed stays in the driving lanes and does not scatter off the roadways. Oftentimes on interstate highways, snowplows will operate side by side, as this is the most efficient and safe way to clear several lanes at one time.
• Motorists and pedestrians should also keep in mind that snowplow drivers have limited lines of sight, and the size and weight of snowplows can make it very difficult to maneuver and stop quickly. Snow blowing from behind the plow can severely reduce visibility or cause whiteout conditions. Motorists should not attempt to pass snowplows or follow too closely. The safest place for motorists to drive is well behind the snowplows where the roadway is clear and salted. Never attempt to pass a snowplow while its operating.

Power Outages

• Check with your utility to determine area repair schedules.
• Turn off or unplug lights and appliances to prevent a circuit overload when service is restored; leave one light on to indicate when power has been restored.
• If heat goes out during a winter storm, keep warm by closing off rooms you do not need.

To Report an Electric Outage, Call:

• Central Hudson: 800-527-2714
• Con Edison: 800-752-6633
• National Grid: 800-867-5222
• NYSEG: 800-572-1131
• O&R: 877-434-4100
• PSEG-LI: 800-490-0075
• RG&E: 800-743-1701

Heating Safety

• Use only safe sources of alternative heat such as a fireplace, small well-vented wood or coal stove or portable space heaters.
• When using alternative heat sources such as a fireplace, woodstove, etc. always make sure you have proper ventilation. Always follow manufacturer's instructions.
• Keep curtains, towels, and potholders away from hot surfaces.
• Have a fire extinguisher and smoke detectors and make sure they work.
• If you use kerosene heaters to supplement your regular heating fuel, or as an emergency source of heat, follow these safety tips:
• Follow the manufacturers' instructions.
• Use only the correct fuel for your unit.
• Refuel outdoors only and only when the unit is cool.
• Keep the heater at least three feet away from furniture and other flammable objects.
• When using the heater, use fire safeguards and ventilate properly.

For more winter safety tips, visit https://dhses.ny.gov/safety. For all non-emergency service needs in New York State before, during or after a storm, call 211 or visit 211nys.org.

About the Division of Homeland Security and Emergency Services

The Division of Homeland Security and Emergency Services (DHSES) provides leadership, coordination, and support to prevent, protect against, prepare for, respond to, recover from, and mitigate disasters and other emergencies. For more information, follow @NYSDHSES on Facebook, Instagram, and X (formerly known as Twitter) or visit dhses.ny.gov.

MAYOR ADAMS ANNOUNCES SUIT AGAINST TEXAS CHARTER BUS COMPANIES SEEKING $708 MILLION TO COVER COSTS OF CARING FOR MIGRANTS TRANSPORTED TO NYC

 

Under New York Social Services Law, Companies That Intentionally Transport People in Need of Shelter and Services to NYC as Part of Bad Faith Plan Must Pay Those Costs

 

Suit Seeks Payment of Costs Associated With Caring for at Least 33,600 New Arrivals Who Have Already Been Transported to NYC, According to Texas, and New Arrivals Transported in Future

New York City Mayor Eric Adams and New York City Corporation Counsel Sylvia O. Hinds-Radix today announced a lawsuit against 17 charter bus and transportation companies that seeks to recoup all costs New York City has incurred providing emergency shelter and services to migrants transported by the charter bus companies — totaling at least approximately $708 million in the last 20 months. Since the spring of 2022, Texas Governor Greg Abbott has admitted to facilitating the transport of more than 33,600 migrants to New York City without having the companies transporting those migrants pay for the cost of continued care in violation of New York’s Social Services Law. Today’s suit seeks to recoup the hundreds of millions of dollars incurred to care for all these individuals, costs moving forward for any of those migrants still in New York City’s care, and costs for all those who are transported to New York City from Texas in the future as part of Governor Abbott’s plan.

 

“New York City has and will always do our part to manage this humanitarian crisis, but we cannot bear the costs of reckless political ploys from the state of Texas alone,” said Mayor Adams. “Today, we are taking legal action against 17 companies that have taken part in Texas Governor Abbott’s scheme to transport tens of thousands of migrants to New York City in an attempt to overwhelm our social services system. These companies have violated state law by not paying the cost of caring for these migrants, and that’s why we are suing to recoup approximately $700 million already spent to care for migrants sent here in the last two years by Texas. Governor Abbott’s continued use of migrants as political pawns is not only chaotic and inhumane but makes clear he puts politics over people. Today’s lawsuit should serve as a warning to all those who break the law in this way.”

 

“Governor Abott continues to use human beings as political pawns, and it’s about time that the companies facilitating his actions take responsibility for their role in this ongoing crisis,” said New York Governor Kathy Hochul. “If they are getting paid to break the law by transporting people in need of public assistance into our state, they should be on the hook for the cost of sheltering those individuals — not just passing that expense along to hard-working New Yorkers. I’m proud to support the mayor’s lawsuit.”

 

The 17 defendants named in today’s lawsuit knowingly implemented Governor Abbott’s publicly articulated plan without any regard for the individuals they were transporting or an effort to help manage this humanitarian crisis. Rather, it has been “bad faith” conduct — from which the bus and transportation companies are profiting — to execute Texas’s plan to sow chaos and shift the traditional cost of migration at the southern border to New York City and other cities across the country.

 

New York Social Services Law § 149, however, requires that “[a]ny person who knowingly brings, or causes to be brought, a needy person from out of state into this state for the purpose of making him a public charge…shall be obligated to convey such person out of state or support him at his own expense.” That statute expressly authorizes the commissioner of the New York City Department of Social Services (DSS) to sue to recover those costs. Today’s lawsuit seeks repayment of all costs — including shelter, food, health care, and more — totaling at least approximately $708 million for all of the more than 33,600 migrants already transported from Texas to New York City, as well as all costs for migrants who continue to be sent to New York City in the future.

 

Together with the New York City Department of Law, Paul, Weiss, Rifkind, Wharton & Garrison LLP is representing the DSS commissioner in the lawsuit, led by firm chair Brad S. Karp, partner Michele Hirshman, and special counsel and former DSS Commissioner Steven Banks.

 

“For too long, Governor Greg Abbott has chosen to play politics with people’s lives, putting migrants through unimaginable conditions and circumstances. Now, the bus and transportation companies contracted by the State of Texas must be held accountable for their participation in furthering his reckless actions,” said First Deputy Mayor Sheena Wright. “Today’s lawsuit represents part of a larger series of proactive actions our administration is taking to continue to successfully manage this humanitarian crisis largely on our own.”

 

“The bus companies participating in Governor Abbott’s diabolical scheme to break New York City’s already-strained social services system by abandoning tens of thousands of migrants in our city, in our care, and at our cost. They are acting inhumanely, and they’re breaking our laws,” said Chief Advisor Chaplain Ingrid P. Lewis-Martin. “With this lawsuit, we aim to recoup the approximately $708 million in costs we’ve already incurred to provide emergency shelter and care to the migrants, who these 17 bus companies have transported to New York City. These companies, that have decided to partner with Governor Abbott, should bear the costs associated with the care of the migrants.”

 

 “Since April 2022, New York City has allocated billions of dollars to provide food, shelter, and more to more than 164,000 asylum seekers. These efforts have had an impact on every service our city provides,” said Chief of Staff Camille Joseph Varlack. “Tens of thousands of those asylum seekers have come to our city through charter bus companies that saw this as a lucrative opportunity to earn Texas government contracts. They wrongly assumed that their obligations to these asylum seekers stopped after they got off the buses. We’re suing these bus companies so they fulfill their legal responsibility to continue to support the asylum seekers they dropped off, and so, in the future, these bus companies should think twice before supporting Governor Abbott’s reckless scheme to induce chaos in New York City.”

 

“New York’s social service law prohibits exactly what these bus companies are doing,” said City Hall Chief Counsel Lisa Zornberg. “They’re participating in a ‘bad faith’ plan orchestrated by the state of Texas to shift the costs of care for needy individuals to New Yorkers and overwhelm our social services system. The law is clear: By participating in this reckless scheme, these bus companies take on responsibility for those costs.”

 

“This case is part of New York City’s effort to deal with a growing national humanitarian crisis,” said Corporation Counsel Hinds-Radix. “This lawsuit seeks to enjoin these companies from participating in an unlawful scheme and hold them fully accountable.”  

 

“Each week, thousands of individuals and families newly arriving to the city come through our system seeking a path to the American Dream, often without coordination, forewarning from their prior entry point in the United States, and lacking the basic necessities of food and access to medical care,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “The Texas state government has, to this point, intentionally sent people seeking asylum to New York City and has done so without coordination with city officials. Today’s lawsuit seeks to hold parties involved in that action accountable for participating in that effort and to recoup associated costs incurred by the city. We will continue to act to meet our obligations, but we will also seek opportunities to hold those accountable at every step of the process.”

 

“For nearly two years now, our incredible city workers have stepped up every day to deliver one of the nation’s most impressive and effective responses to this ongoing humanitarian crisis,” said DSS Commissioner Molly Wasow Park. “Even as our shelter census has more than doubled with the influx of asylum seekers, and we have nearly exhausted every city resource, we continue to find ways to provide vital supports for thousands of migrants who continue to arrive from border states every week. While we couldn’t be prouder of how this administration has defended against Governor Greg Abbott’s dangerous attempts to disrupt the delivery of critical services for vulnerable New Yorkers while playing with the lives of recently-arrived asylum seekers, we must use every legal tool at our disposal to hold all bad actors accountable and put a stop to this vile and willful disregard for the lives of vulnerable human beings.”

 

“Executive orders and lawsuits by states and municipalities have become regular, stopgap measures to address immigration issues that the executive and legislative branches of the federal government have been derelict in remedying for years,” said Monsignor Kevin Sullivan, executive director, Catholic Charities of the Archdiocese of New York. “New York City should rightly be lauded for the extraordinary response made to meet the humanitarian needs of asylum seekers arriving in our city. Our nation desperately needs to ensure fair and humane immigration laws and policies. These must include humanitarian assistance, safety from persecution, preservation of family unity, labor and alternative pathways, generous and orderly entry, secure borders, fair and timely adjudication of claims, and work authorization. Our nation and its institutions — government, business, civic, nonprofit, and religious organizations, and others — urgently need to work together to establish an effective immigration system.” 

 

Today’s lawsuit also builds on Executive Order 538, issued by Mayor Adams last week, that requires improved coordination from charter bus companies transporting new migrant arrivals into New York City, ensuring the safety and well-being of both migrants and city staff receiving them. Indeed, many of the bus companies sued today are the same companies that are now evading compliance with the executive order by busing migrants to New Jersey train stations and then having the migrants take a train to New York City.

 

Between April 2022 and December 2023, the city has already spent an estimated $3.5 billion on shelter and services for the over 164,500 individuals who have come through the city’s intake center. As the Adams administration continues to prioritize helping migrants live independently, without significant or timely state and federal assistance, the city plans to pursue a 20 percent reduction in city-funded spending on the migrant crisis in the Fiscal Year 2024 Preliminary Budget, which will be released later this month.

 

Since this humanitarian crisis began, the city has taken fast and urgent action, opening more than 210 emergency sites, including 18 large-scale humanitarian relief centers, to provide shelter to migrants; standing up navigation centers with support from community-based organizations to connect new arrivals with critical resources; enrolling thousands of children in public schools through Project Open Arms; opening application help centers that have helped submit over 25,000 asylum, Temporary Protected Status, and work authorization applications; and more. Last spring, the city released “The Road Forward: A Blueprint to Address New York City’s Response to the Asylum Seeker Crisis,” detailing how the city will continue to manage the influx of asylum seekers and advocate for support from federal and state partners.

 

Statement on Assemblywoman Latoya Joyner's Resignation from the 77th Assembly District Seat

 

After almost a decade of service to the people of the 77th Assembly District, Assemblywoman Latoya Joyner has announced her resignation. We would like to thank Assemblywoman Joyner for her unwavering commitment and tireless efforts in representing the Bronx’s 77th Assembly District. 

Assemblywoman Joyner has made a lasting impact on both Albany and the local community. Her advocacy spanned critical issues such as affordable housing, education, and domestic violence. Importantly, she also chaired the labor committee and secured important wins for working people.

During her tenure, Assemblywoman Joyner was a staunch supporter of rent regulation and tenant protection and previously advocated for a freeze on the 33,000 rent-regulated apartments in her district. Assemblymember Joyner also championed increased funding for the Bronx Children’s Museum and secured security upgrades for NYCHA developments. 

Assemblywoman Joyner's impact on education is evident through her support for Educational Opportunity Programs (EOP) and the reinstatement of the New York Legal Educational Opportunity Program (LEO). She also utilized her legal expertise to help unrepresented individuals reach settlements on various issues. 

A product of New York's public educational system, Assemblywoman Joyner earned her law degree from the University at Buffalo Law School. She served as a community liaison in the district office of Assemblywoman Aurelia Greene and contributed to Community Board 4 and the Neighborhood Advisory Board. 

The Governor will have 10 days to announce the special election date in the 77th Assembly District. We look forward to the continuation of Assemblywoman Joyner's legacy through the selection of a nominee via the county committee. 

Assemblywoman Latoya Joyner has been a dedicated public servant, and we wish her the very best in her future endeavors. 

Two California Men Sentenced For Insider Trading Using Information Stolen From Lumentum

 

Srinivasa Kakkera was Sentenced to 18 Months in Prison, and Abbas Saeedi was Sentenced to 5 Months in Prison, for Trading on Material, Non-public Information About Impending Corporate Transactions by Lumentum

Damian Williams, the United States Attorney for the Southern District of New York, announced that SRINIVASA KAKKERA and ABBAS SAEEDI were sentenced by U.S. District Judge Gregory H. Woods to 18 months and five months, respectively, for their participation in a scheme to commit insider trading based on material, non-public information (“MNPI”) that a third co-defendant, Amit Bhardwaj, misappropriated from Bhardwaj’s employer, Lumentum Holdings Inc. (“Lumentum”).  Judge Woods previously sentenced Bhardwaj to 24 months in prison and a fine of $975,000.

U.S. Attorney Damian Williams said: “Srinivasa Kakkera and Abbas Saeedi traded on valuable material, non-public information about Lumentum’s planned acquisitions, knowing that their friend had stolen this information from his employer, Lumentum.  Kakkera and Saeedi used their informational advantage to make millions in combined illegal gains in the stock market.  But insider trading is not easy money: if you try to illegally profit from material, non-public information, there’s a price to be paid.”

cquisition.  Bhardwaj provided this information to KAKKERA, SAEEDI, and Ramesh Chitor, and these individuals all traded in Neophotonics securities.  KAKKERA also caused other friends and family to purchase Neophotonics securities.  When Neophotonics’ stock price increased substantially following the announcement of the Lumentum acquisition in November 2021, KAKKERA, SAEEDI, and Chitor closed their positions in Neophotonics securities and made collectively approximately $4.3 million in realized and unrealized profits.  In particular, KAKKERA made $2,453,687.99 and SAEEDI made $691,104.73.

After they were interviewed by the Federal Bureau of Investigation (“FBI”) and served with federal grand jury subpoenas on approximately March 29, 2022, Bhardwaj, KAKEKRA, and SAEEDI took steps to obstruct the federal investigation of their conduct.  They met in person on multiple occasions and discussed, among other things, potential false stories that would conceal their insider trading scheme as well as creating false documents to buttress lies regarding payments that were, in reality, related to the insider trading scheme.

In addition to the prison sentence, KAKKERA, 48, of Pleasanton, California, was ordered to forfeit $2,453,687.99.  SAEEDI, 48, of Fremont, California, was ordered to forfeit $691,104.73. 

Mr. Williams praised the outstanding work of the FBI.  He also acknowledged the assistance of the Securities and Exchange Commission, which separately initiated civil proceedings against KAKKERA and SAEEDI. 

End of Continuous Medicaid Enrollment Requirement Poses Risks to State Financial Plan

 

Failure to Meet Projected Medicaid Enrollment Levels Could Add $1.5 Billion to Current Year State Budget   With federal legislation ending continuous Medicaid coverage in March 2023, New York state began the process of redetermining eligibility for every enrolled individual. An analysis by State Comptroller Thomas P. DiNapoli found this “unwinding” may not meet projections in the Division of the Budget’s (DOB) Mid-Year Update to the Enacted Budget Financial Plan, adding costs to the state budget. “Increased enrollment in Medicaid is one of the key reasons New York has one of the lowest rates of uninsured individuals in the nation,” DiNapoli said. “Now that the federal continuous coverage requirements have ended, the state should account for those who are removed from Medicaid coverage and make every effort to help people renew their coverage in public and private plans. The state should also publicly account for any additional spending required to support elevated enrollment levels.” Prior to the pandemic, states were required to renew coverage for people with Medicaid at least once a year and to disenroll individuals who no longer qualified for coverage. Since early 2020, enrollees in New York Medicaid – as well as in the Child Health Plus and Essential Plan public health insurance programs – have not had to renew their coverage due to COVID-19 public health emergency continuous coverage requirements enacted by federal legislation. These requirements prevented states from terminating a person’s coverage, even if they no longer qualified. As a result, New York Medicaid enrollment rose from 6.1 million in January 2020 to just over 8 million in June 2023, an increase of 31.5%. Federal legislation ended the continuous coverage requirements as of March 31, 2023, and required states to begin the process of redetermining eligibility for every individual enrolled in Medicaid, referred to by the federal government as the “unwinding,” over a 14-month period. The state began sending renewal notices in the early spring to Medicaid enrollees with June 30, 2023 coverage end dates, and is sending renewal notices monthly to groups of enrollees, based on their enrollment end dates, through May 31, 2024. Renewal notices include the deadline for enrollees to take action to renew their insurance or risk having a gap in coverage. Since the Department of Health (DOH) began redetermining eligibility in the Medicaid program, enrollment has decreased by approximately 190,000 individuals (2.4%) – from a peak of 8 million in June 2023 to 7.8 million in August 2023. According to the DOH, approximately 82% of Medicaid enrollees are re-enrolling in Medicaid. Financial Plan Impact Enrollment projections included in DOB’s Mid-Year Update to the Enacted Budget Financial Plan for State Fiscal Year (SFY) 2023-24 reflect the anticipated impact of the unwinding process. This is projected to reduce the number of Medicaid enrollees to 6.9 million by April 2024 – a decrease of almost 888,000 enrollees within the SFY – and to 6.6 million by April 2025 and beyond. Monthly Medicaid enrollment figures and re-enrollment rates to date suggest that the state may not meet current Financial Plan projections. DiNapoli estimates that the state could face nearly $1.5 billion in additional state share Medicaid costs in SFY 2023-24 as a result of higher-than-anticipated enrollment levels. This estimate is based on two risks. First, assuming enrollment continues to decline at its current pace, it would reach 7,176,165 enrollees at the close of SFY 2023-24, 274,755 enrollees higher than DOB’s projection for the year. At a state share cost of $4,020 per enrollee, this would increase state share Medicaid spending by about $1.1 billion in SFY 2023-24. The second risk relates to individuals who fail to renew their Medicaid coverage – referred to as “renewals outstanding” in DOH’s monthly Public Health Emergency unwinding reports - but ultimately re-establish Medicaid eligibility at a later date. Through September, DOH’s monthly data indicate that 4.6% of each monthly cohort, on average, renews late. DiNapoli estimates that unanticipated state share Medicaid costs could grow by an additional $186.1 million, to nearly $1.3 billion in SFY 2023-24 if 5%, or 46,291 individuals, identified as renewals outstanding renew their Medicaid coverage at a later date. Unanticipated costs would increase by an additional $372.2 million to nearly $1.5 billion, if 10%, or about 92,592 of such individuals, eventually renew their coverage. Analysis "Unwinding" Continuous Enrollment in Medicaid Presents Coverage and Financial Risks Related Reports Health Insurance Coverage in New York State Medicaid: Enrollment Growth, COVID-19 and the Future