Attorney General James Delivers More Than 4,600 Cans of Baby Formula in New York City

 

AG James Secured Formula from Walgreens for Price Gouging During 2022 Shortage

Second Delivery of Baby Formula by AG James Following Agreement with Walgreens for Price Gouging

New York Attorney General Letitia James delivered 4,668 cans of baby formula to New Yorkers in New York City as a result of her investigation into Walgreens Co. (Walgreens) for illegally raising prices of baby formula during the 2022 shortage. The Office of the Attorney General (OAG) began an investigation into Walgreens’ price gouging of baby formula following reports and consumer complaints about unreasonably high costs of the product. Attorney General James secured over 9,500 cans of baby formula from Walgreens, of which 4,668 were already delivered to New Yorkers in Western New York. In addition, Walgreens will pay a $50,000 penalty to resolve the OAG investigation. The 4,668 cans of baby formula distributed today have a wholesale value of approximately $150,000 and will go to the Met Council, which will help distribute them throughout New York City. 

“Price gouging of baby formula when parents are desperate to feed their children amid a national baby food shortage is illegal and unconscionable,” said Attorney General James. “Parents should never have to worry about feeding their babies because companies are taking advantage of a national emergency to raise prices. Today, hundreds of families will be able to get free baby formula from an agreement my office reached with Walgreens for price gouging. I am proud to deliver this baby formula to the Met Council which works day in and day out to help those who need it most.”

AG James, Met Council CEO David Greenfield, and volunteers assemble baby supply care packages with baby formula for low-income parents.

Millions of infants throughout the country are reliant on formula as their primary or supplemental food source, and a 2022 shortage caused by a plant closure and recall created significant hardship for families across New York state. In May 2022, Attorney General James issued warnings to more than 30 retailers across the state to stop overcharging for baby formula after consumers reported unreasonably high prices. An OAG investigation triggered by consumer reports found that Walgreens engaged in price gouging on at least 20 infant formula products. Walgreens raised retail prices by over 10 percent on those products. For some products, Walgreens’ price increase was over 20 percent, and in one case, it was over 70 percent. The OAG’s investigation found that Walgreens made over 2,400 individual formula sales at these inflated prices, selling over 3,400 cans or bottles of formula and bringing in over $150,000 in revenue. 

Met Council is a cornerstone nonprofit in New York City, offering various services to uplift vulnerable New Yorkers. Beyond its network of over 200 food pantries, Met Council provides comprehensive housing support, domestic violence victims services, career development programs, and much more to hundreds of thousands in need. These services are designed not only to meet immediate needs, like the upcoming distribution of 4,668 cans of baby formula, but also to empower individuals and families for the long term.

“We are so grateful to Attorney General Letitia James for the opportunity to give out more than 4,600 containers of baby formula to the neediest New Yorkers,” Met Council CEO David G. Greenfield said. “Having a baby is wonderful, but it’s also incredibly expensive, and baby formula is one of the most expensive items that babies need. This event will go a long way towards helping babies and families who need it. At Met Council, our goal is to always assist those in need, no matter who they are or where they’ve come from. We are fortunate to have a friend and ally in Attorney General James, who is always fighting for justice.”

Attorney General James has been a leader in the fight to protect New York consumers and guard against price gouging. In May 2023, Attorney General James secured a $100,000 settlement with Quality King Distributors, Inc. due to unconscionable price increases for Lysol products during the early days of the COVID-19 pandemic. In March 2023, Attorney General James announced price gouging rules to protect consumers and small businesses from corporate profiteering. The rules would strengthen enforcement of New York’s price gouging law. In April 2021, Attorney General James delivered 1.2 million eggs to food pantries throughout the state which were secured as part of an agreement with the nation’s largest egg producers for price gouging in the early months of the pandemic. Throughout the pandemic, during major disruptions, and ahead of declared disasters, Attorney General James has issued consumer warnings against price gouging on essential supplies.

New Yorkers should report potential concerns about price gouging to the OAG by filing a complaint online or calling 800-771-7755.

NYC Comptroller Audit Exposes 47th St BID’s Fiscal Mismanagement; Calls for City to Withhold Funds to Compel Changes in Leadership & By-Laws

 

47th St BID spent $391K for NYPD security for the Board Chair’s out-of-district office, paid Executive Director $33K for time not worked, repeatedly flouted laws & policies.

In a blistering new audit, New York City Comptroller Brad Lander unveiled ongoing fiscal mismanagement by the 47th Street Business Improvement District (BID), the non-profit chartered by the City’s Department of Small Business Services (SBS) and provided with City property tax assessments to maintain, develop, and promote the commercial activities of the Diamond District (West 47th Street between 5th and 6th Avenues).  

Despite a 2019 audit by the Comptroller’s office documenting extensive weaknesses in its finances and operations and detailing correction action, the BID failed to correct its practices. Comptroller Lander’s newly-released follow-up audit revealed that the BID spent nearly $400,000 improperly providing security for the offices of the Board Chair, which are outside of the district, paid its Executive Director over $30,000 for time not worked, and repeatedly flouted laws and policies in order to keep control in the hands of its leadership. Meanwhile, fewer than 3% of the businesses within the Diamond District participate as members in the BID’s work.  

Given the BID’s repeated non-compliance, the Comptroller recommends that the City place the 47th Street BID’s tax assessment funding in escrow until the BID makes changes in its leadership, by-laws, and policies to address ongoing mismanagement.    

“The leadership of the 47th Street BID is misusing City property tax assessment for its own benefit, and repeatedly violating laws and policies to improperly maintain its control. Meanwhile, fewer than 3% of the businesses in the district are participating members,” said Comptroller Brad Lander. “Given the board’s repeated refusal to address ongoing fiscal mismanagement of City funds, the Department of Small Business Services must take the serious step of withholding the BID’s assessments until there are changes in leadership, by-laws, and practices.” 

The Comptroller Office’s prior audit from 2019 had found that the BID: 

1. Spent $210,835 on security services for the Board Chair’s office outside of the district; 
2. Did not get board approval for budget modifications;  
3. Paid its executive director $25,242 to $38,664 more than other BID directors in FY2017;
4. Did not monitor payroll transactions or have employees submit timesheets; 
5. Did not follow rules around competitive contracting and purchasing, including disclosures for conflict of interest. 

Comptroller Lander’s new audit found that the 47th Street BID did not clean up its act and instead: 

1. Continued to pay for security services for the Board Chair’s office outside of the district— $390,968 in FY2022 alone; 
2. Paid its executive director $32,846 for time not worked on unauthorized leave, and additional gave him an unauthorized raise of $4,000; 
3. Continued to fail to monitor payroll or have submitted timesheets; 
4. Did not obtain board approvals before making payments to vendors nor have the bookkeeper review vendor contract pricing and terms. The BID did not competitively procure 5-out-of-6 procurements exceeding $20,000 (total procurement of $438,962) for maintenance, lobbying, and insurance. In addition, the BID did not maintain written agreements for 7 out of its 9 smaller vendors, totaling $151,293; 
5. Repeatedly violated state law by only having a small handful of directors vote on executive, nominating, and audit committee appointments. The Board Chair appointed all of his own audit and website committee members and a non-ex-officio finance committee member, but the board did not approve these appointments. In addition, the BID improperly allowed people who do not own property or a business in the district to vote to elect officers and conduct business; 
6. Charged Netflix at least $104,536 for the filming the TV series Kaleidoscope without approval by the City Council, Mayor’s Office of Media and Entertainment, and SBS; 
7. Failed to submit contractor background checks to SBS, potentially violating conflict of interest rules; 
8. Meanwhile, the audit found that only 2.9% of the 3,000 businesses within the Diamond District are members of the BID. 

BIDs are chartered by the City to deliver services to commercial districts to help keep them vibrant, clean, and safe, through street cleaning and sanitation, security, beautification, marketing and events, and other services. Each BID is run by a not-for-profit organization with a Board of Directors elected by its members.  

The NYC Department of Finance (DOF) levies a special assessment, billed to property owners, to fund BID services, which are then voted on by property owners in the area. The City of New York collects the special assessment and then turns it over to the BID. 

The Comptroller, who holds a Class D position on each of NYC’s 76 BID boards of directors (along with SBS, the borough president, and the local councilmember), analyzed all 76 BIDs in 2023, which showed that the vast majority of BIDs follow applicable governance and fiscal guidelines.   

For the first time, the Comptroller has recommended that SBS instruct DOF to place the BID’s special assessment collections in escrow until the BID changes its by-laws, re-elects or appoints leadership, and agrees to implement the audit’s recommendations.  

Lander continued, “The 47th Street BID’s funds are collected by the City and delivered to the BID to enhance safety, security, and vibrancy for the 3,000 businesses, workers, and customers of the district – not for the benefit of its Board Chair and Executive Director. The City should withhold future funds until fundamental changes are made.” 

Governor Hochul Launches Efforts to Help New York Students Access Financial Aid

Governor Hochul Issues a Proclamation Designating April as Financial Aid Awareness Month to Highlight Financial Aid Opportunities for New York Students and the Importance of Completing the FAFSA

Announces Petrie Foundation Has Awarded CUNY $1 Million to Launch New CUNY Financial Aid Support Team to Help 100,000 New York City Students Access Available Aid

Launches 2024 New York State STEM Incentive Program to Support SUNY or CUNY Students Pursuing a STEM Degree; Application Opens April 3

Initiatives Follow Governor Hochul’s 2024 State of the State Announcement to Make FAFSA Completion Universal in New York 

Governor Kathy Hochul issued a proclamation declaring April 2024 as Financial Aid Awareness Month in New York State to help inform students and families of the importance of completing the Free Application for Federal Student Aid and the many financial aid options available to them. Governor Hochul also announced that the Petrie Foundation has awarded the City University of New York $1 million to launch CUNY Financial Aid Support Team (FAST) to help 100,000 students complete the FAFSA. The program will run through September 2024. Additionally, Governor Hochul is launching the 2024 New York STEM incentive program on April 3, which will offer tuition awards to New York State students at State University of New York or City University of New York campuses pursuing a degree in an approved Science, Technology, Engineering, and Mathematics field of study. Applicants must also agree to live and work in New York State for five years after graduation.

"For New Yorkers who want to pursue higher education, financial aid is a critical tool that can help transform their dreams into a reality," Governor Hochul said. "Far too often, students and families miss out on the full scope of financial aid opportunities available to them, causing many to miss out on this critical support. We’re bridging the information gap and providing students with the resources they need to complete their FAFSA application and unlock financial aid opportunities that can support their higher education journey.”

To kick off Financial Aid Awareness Month, Governor Hochul is announcing several initiatives in New York State to help students pursue a higher education degree. The Governor’s efforts include:

• Encouraging New York State high school seniors to complete their FAFSA application and take full advantage of financial aid programs by sending letters to students across the state highlighting the resources available to them.
• Announcing the Petrie Foundation has awarded CUNY $1 million to launch FAST, a new FAFSA completion program in partnership with New York City Public Schools and other institutional partners to target 100,000 at-risk students through September 2024.
• Launching the 2024 New York State STEM Incentive Program application on April 3 to support New York State students pursuing a STEM degree at any SUNY or CUNY campus. Applicants must also agree to live and work in New York State for five years after graduation.
• Highlighting events across New York State to help students and families navigate the financial aid process. Full list of events available here.

Since taking office, Governor Hochul has remained committed to expanded access to financial aid, including announcing a 2024 State of the State initiative to make FAFSA completion universal in New York State. Recent data from the National College Attainment Network revealing that over $225 million in Federal Pell Grant funding went unclaimed in New York State in 2023. The FAFSA is the first step in obtaining federal aid, including the federal Pell Grant, work-study, and low-cost loan programs, as well as institutional-based aid awarded by many colleges and universities. Students, parents and counselors can access more information on the FAFSA, as well as a number of other resources at FAFSA Ready.

During the month of April, Governor Hochul announced that the New York State Higher Education Services Corporation (HESC), SUNY, CUNY and academic and community organizations in New York will host multiple events to help students and their families navigate the financial aid processes and complete the FAFSA and TAP applications. Events include information sessions on common errors students make when filling out financial aid applications, virtual drop in opportunities to connect with HESC experts, and discussions about scholarship opportunities for students. A full schedule of events can be found here.

In October 2023, SUNY launched the FAFSA Completion Corps to help prospective students complete the new federal application for college financial aid. SUNY received a nearly $300,000 grant from AmeriCorps to launch the initiative, which began with 48 students across six SUNY campuses. The positions are funded through federal work-study or other financial resources. Additionally, at the end of the AmeriCorps service term, students will receive a Segal AmeriCorps Education Award, which may be used to repay qualified loans and to pay current educational expenses at eligible institutions of higher education and training programs.

The FAFSA links directly to the New York State Tuition Assistance Program (TAP) application, so both can be completed at the same time. Students who do not qualify to complete the FAFSA are encouraged to complete the New York State Dream Act application to determine eligibility to apply for NYS financial aid.

NYCHCC and Ponce Bank Present GETTING YOUR FINANCIAL HOUSE IN ORDER: Protecting Your Legacy

 

Rep. Alexandria Ocasio-Cortez - REMINDER: IRS Direct File Pilot Webinar This Thursday

 

IRS Direct File Demo Webinar 

Thursday, April 4th at 6:00 PM

The Office of Congresswoman Ocasio-Cortez is hosting a webinar this Thursday, April 4th at 6:00 PM to demonstrate the IRS's new Direct File tool– a pilot program that allows people with simple tax needs to electronically file federal tax returns for free, directly through the IRS. 

Register for the webinar

 

The webinar will be followed by a short Q&A section. To submit questions ahead of time, you may send them to aoc.townhall@mail.house.gov, or call our office at 718-662-5970.  

The office also has a resource page related to all things regarding tax responsibilities, which can be found here: https://ocasio-cortez.house.gov/services/tax-resources.

Questions related to casework will not be answered on the webinar. If you have any casework related inquiries, please visit our website at https://ocasio-cortez.house.gov, or call our office at 718-662-5970 if you are a constituent.