Correctional Officer At Metropolitan Correctional Center Sentenced To 40 Months In Prison For Engaging In Abusive Sexual Contact With Inmates

 

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that COLIN AKPARANTA, formerly a correctional officer at the Metropolitan Correctional Center (“MCC”), which houses federal inmates in Manhattan, was sentenced in Manhattan federal court to 40 months in prison for engaging in abusive sexual contact with an inmate.  AKPARANTA previously pled guilty before United States Magistrate Judge Kevin Nathaniel Fox to one count of abusive sexual contact of an inmate, in violation of Title 18, United States Code, Section 2244(a)(4), and one count of deprivation of the constitutional rights of that inmate, in violation of Title 18, United States Code, Section 242.  In connection with the plea, AKPARANTA also admitted that he engaged in abusive sexual contact with six additional victims, and engaged in sexual acts with all seven of the victims.  U.S. District Judge Lorna G. Schofield, who accepted AKPARANTA’s guilty plea, imposed today’s sentence.

Acting U.S. Attorney Audrey Strauss said:  “Colin Akparanta repeatedly abused his position of authority as a correctional officer at the MCC by sexually abusing inmates whose safety and security he was duty-bound to protect.  Today’s sentence should send a strong message that correctional officers who abuse their authority and commit crimes will be held to account.  This Office will remain vigilant to ensure that all inmates are afforded the dignity and security they deserve.”

According to the Indictment, other filings in this case, and statements during court proceedings:

AKPARANTA was employed as a correctional officer at the MCC starting in 2004.  Between in or about late 2012 and in or about April 2018, AKPARANTA used his official position to engage in sexual acts and contact with at least seven female inmates at the MCC while they were under AKPARANTA’s custodial, supervisory, and disciplinary authority.  AKPARANTA digitally penetrated the victims’ vaginas and touched their breasts, buttocks, and/or genitalia.  AKPARANTA also had some of the victims touch his penis over his pants.  In addition, AKPARANTA smuggled contraband, including, but not limited to, personal hygiene items, makeup, and food into the MCC for some of the victims, and, with respect to at least one of the victims, explicitly conditioned his provision of contraband on the inmate’s continued performance of sexual acts with him.  AKPARANTA also asked the victims for their contact information in order to reach them after their release.      

In addition to the prison term, Judge Schofield sentenced AKPARANTA, 44, of Irvington, New Jersey, to two years of supervised release.

Ms. Strauss praised the investigative work of the Department of Justice Office of the Inspector General and the Special Agents of the United States Attorney’s Office.  

NYC DOC OFFICER INDICTED FOR SELLING PHONY DISABILITY PARKING PLACARDS, 3 OTHER OFFICERS CHARGED WITH POSSESSING THE PLACARDS

 

Joint Investigation by Bronx DA’s Office and NYC Department of Investigation

 Bronx District Attorney Darcel D. Clark and New York City Department of Investigation Commissioner Margaret Garnett today announced that five people—including four NYC Department of Correction Officers—have been indicted for using forged New York City disability parking placards. 

 District Attorney Clark said, “Members of our community with severe disabilities need these placards to enable them to park near their place of work, doctor’s office and other essential places so they can go about their lives more easily. The defendants—four of them Correction Officers—allegedly corrupted the placard program for their own convenience. Now they face felony charges.”

 Commissioner Garnett said, "The City Correction Officers charged in today's indictment allegedly sold or used fraudulent parking placards, abusing a program that is meant to aid New Yorkers with disabilities. Distributing or using fraudulent parking placards is corruption -- plain and simple -- and City employees who attempt to profit from this conduct, whether monetarily or through other benefits, will be held accountable. DOI thanks the Bronx District Attorney's Office for their partnership on this case."

 District Attorney Clark said the defendants, NYC DOC Officers Nakia Gales, 44, of Manhattan; Shyiera Daniels, 29, of Manhattan; Judy Guity, 46, of the Bronx, and Rasma Caines, 43, of the Bronx; as well as Craig Scott, 60, of the Bronx, have been indicted on second-degree and third-degree Criminal Possession of a Forged Instrument. Gales, Daniels, Guity and Caines were arraigned today before Bronx Supreme Court Justice Robert Neary. They were released on their own recognizance and they are due back in court on March 16, 2021.

 According to the investigation, DOI learned that Gales sold forged placards, taking payments ranging from $200 to $280 per placard. The placards were viewed in the vehicles of the five defendants. The indictment charges Gales with the sale of three forged parking placards. 

 District Attorney Clark thanked DOI. The case was investigated by Assistant Inspector General Noah Mohney, Investigator John Bourke, and Investigator Matty Lupinacci, under the supervision of Deputy Inspector General Michael Antolini, First Deputy Inspector General Daniel Boylan, Inspector General Andrew Brunsden, Deputy Commissioner/Chief of Investigations Dominick Zarrella, and First Deputy Commissioner Daniel Cort.

 An indictment is an accusatory instrument and not proof of a defendant’s guilt. 

Congressional Hispanic Caucus Announces New Leadership

 

Today, December 8, 2020, the Congressional Hispanic Caucus (CHC) Chairman Joaquin Castro (TX-20) announced the CHC’s new leadership for the 117^th Congress: 

• CHC Chair — Rep. Raul Ruiz, M.D. 
• First Vice Chair — Rep. Nanette Diaz Barragán
• Second Vice Chair — Rep. Adriano Espaillat 
• Whip — Rep. Darren Soto 
• Freshman Representative — Rep.-Elect Teresa Leger Fernandez  

“I’m confident that Chair-Elect Ruiz and the new leadership team will take the Congressional Hispanic Caucus to the next level and make real progress on behalf of our communities, said Chairman Joaquin Castro (TX-20). It’s been an honor and privilege to serve as chair, and I look forward to continuing to work with my CHC colleagues in the next Congress.” 

 

“I am grateful and honored to have earned the vote and confidence of the Congressional Hispanic Caucus members to lead the Caucus through the 117th Congress. I am grateful to Chairman Castro who has done an incredible job leading us through the last two years, and I want to thank Representative Escobar for her valuable contributions to the Caucus,” said Chair-Elect Raul Ruiz, M.D. (CA-36). “Hispanics make up the largest minority population in the United States. For too long, they have experienced systemic inequalities and disparities in health, health care access, education, economic opportunity, housing, environmental justice, and more. The COVID-19 pandemic has magnified those disparities with Hispanics having one of the highest rates of infections and deaths from COVID-19. 

 

“We must come together as a nation to rectify these inequalities; safely, rapidly and equitably end the pandemic; and build back better. The Congressional Hispanic Caucus members are amongst the most talented and respected leaders in Congress, and my goal is to amplify their collective expertise and strengths to expand our influence and ensure the promise of America is accessible to the 60 million Hispanics living in this great nation today. I look forward to the work ahead to advance public policy that creates lasting change for Hispanic Americans across the country,” said Chair-Elect Ruiz. 

 

“It is an honor to be elected First Vice-Chair of the Congressional Hispanic Caucus,” said Congresswoman Nanette Diaz Barragán (CA-44). “Our community has been hard-hit by this pandemic, and our caucus stands ready to fight to get them the support they deserve. As First Vice-Chair, I remain committed to working on the issues that help better the lives and uplift the experiences of the wider Hispanic community. We must come together to improve access to health care, reform our broken immigration system, and fight for environmental justice.” 

 

“I look forward to continuing my work with my CHC colleagues as Second Vice Chair to help amplify our legislative priorities and accomplishments throughout the Democratic Caucus helping families around the nation,” said Rep. Adriano Espaillat (NY-13), the first Dominican-American and Latino of Afro descent to serve in the United States Congress. “Latino communities have been devastated by the ongoing coronavirus and much work lies ahead in our efforts to reverse the failed policies of the Trump administration and to help families most in need. We have each been touched somehow by this deadly virus, and I look forward to working on this and a number of our priorities to ensure Latino communities and our interests are fully integrated into the overall national response to build back better along the road to recovery.” 

 

“I am humbled that my colleagues have entrusted me with the position of CHC Whip, a post previously held by some of my personal heroes,” said Rep. Darren Soto (FL-09). “As we look ahead to the 117th Congress, we must prioritize the pressing issues affecting our Hispanic communities, such as combatting COVID-19, supporting workers and small businesses, environmental justice and immigration reform. We will work to keep our caucus united, coordinate with the incoming Biden Administration and reach across the aisle whenever possible. As CHC Whip, I am prepared to confront the many challenges that may arise with a fresh perspective and willingness to find common ground to deliver solutions for Hispanics across the country.” 

 

"The Congressional Hispanic Caucus has championed legislation to address the health, economic and environmental disparities facing our Latino communities and working families. They’ve taken on Trump and his inhumane policies separating children from their families. I’m honored to join the Caucus in their good fight on these issues as the newly elected Freshman Representative,” said Representative-Elect Teresa Leger Fernandez (NM-3). “Ahora es cuando! Now is the time to protect our families from the economic devastation the pandemic has disproportionately inflicted on our communities, pass comprehensive immigration reform, and make sure everyone has access to affordable, quality health care." 

 

Background: The CHC leadership election was conducted virtually using Webex Legislate and followed CDC public health guidance. 

The Congressional Hispanic Caucus (CHC), founded in December 1976, is organized as a Congressional Member organization, governed under the Rules of the U.S. House of Representatives. The CHC is dedicated to voicing and advancing, through the legislative process, issues affecting Hispanics in the United States, Puerto Rico and U.S. Territories. 

 

PUBLIC ADVOCATE CALLS FOR CLOSURE OF INDOOR DINING, NON-ESSENTIAL BUSINESSES AS GOVERNOR DELAYS

 

We received this from the Public Advocates office. In his letter to the governor he is calling for tougher measures to stop the spread of COVID-19, but there is no mention of postponing special election that have been called for December and January as well as those that will be called for March to the June primary, as was done in March of 2020.

Public Advocate Jumaane D. Williams called on Governor Andrew Cuomo to implement new restrictions aimed at slowing the spread of COVID-19 and protecting vulnerable communities, to avoid the mistakes and the loss of life seen in the spring. The Governor announced on Monday morning a framework for the gradual closure of indoor dining, as well as potential additional businesses, if COVID-19 cases and hospitalizations continue to rise as trends have indicated. 

In a letter Monday afternoon, the Public Advocate criticized this slow and hesitant approach as reminiscent of the mistakes on a city and state level in March that helped lead to New York City becoming the global epicenter of the pandemic. 

Public Advocate Williams will hold a virtual media availability on Tuesday afternoon with epidemiologists and progressive economic advocates to call on Governor Cuomo to stop delaying the implementation of critical public health measures to reduce the spread of COVID-19, and to provide economic aid to those affected by the restrictions. 

Dear Governor Cuomo:

Given your announcement today outlining processes for potential closures and restrictions, I write to express my grave concern at both the pace of the actions being taken and the absence of crucial steps which are necessary to save lives. New York City and State continue to experience a dangerous resurgence of COVID-19. There is no longer any doubt that New York City has fallen into a second wave of COVID-19 - what question remains is whether leadership can learn from the errors of the first to prevent even greater loss. What we as New Yorkers need from our leaders is a coordinated and cohesive messaging on what we should be doing. We should be encouraging all New Yorkers to stay home whenever possible.

In a letter to your office on November 13, I recommended taking a number of immediate steps to prevent a significant second wave from occurring. Unfortunately, the window for prevention has been allowed to pass. We must now implement strong and immediate measures to reduce further spread of the virus, and continue those restrictions through to the new year, or until scientific and public health measures indicate sufficient reduction in risk. We cannot afford hesitations and half-measures that needlessly allow lives to be lost and livelihoods to be disrupted.   

When COVID-19 first appeared in New York, many actions did not go far enough or were implemented too late. We have had far too much experience, far too much suffering since then to keep making the same mistakes over and over. The faster and more seriously we respond to this second wave, the more quickly we can control community spread and reopen our businesses. 

In response to this resurgence, my office makes the following urgent recommendations to prevent a larger second wave: 

1. Close all non-essential businesses, including in-person dining in restaurants, bars, hair and nail salons, gyms, and houses of worship. 
2. Immediate financial support for local businesses who are shut down.
3. Coordinate closures with New Jersey and Connecticut to protect New York residents who work in those states, and vice versa. 
4. Combat "COVID fatigue" by requiring that all residents wear a mask or covering when leaving their homes and/or when in contact with people who do not live in their household. 

In addition, we must be prepared for widespread school closures if COVID-19 continues to spread at these elevated levels - including through investment in full and expanded remote learning and the reopening and expansion of REC Centers for students in greatest need. 

We must also institute more stringent protections for communities we know are most vulnerable including long-term care facilities, nursing homes, psychiatric facilities, and homes for people with intellectual and developmental disabilities. Each of these measures is an effort to reduce harm through new strategies and systems, learning from past tragedy to prevent it in the future.

As we enter what health experts continue to warn will be a "dark winter", the potential for transmission of the virus will only grow. Time is quickly running out for us to take decisive action. The next step, if these measures don't work, we must be prepared for a full and immediate shutdown of New York City as the best way to save lives and allow a quick economic recovery for New Yorkers and their businesses.

I look forward to receiving your response within one week upon receiving this letter. For further discussion, please contact First Deputy Public Advocate for Policy Nick E. Smith at nsmith@advocate.nyc.gov and Deputy Public Advocate for Justice, Health Equity & Safety Rama Issa-Ibrahim at rissa-ibrahim@advocate.nyc.gov. 

Thank you very much for your time and consideration. 

Sincerely,

 

Jumaane D. Williams

Public Advocate for the City of New York

Bronx Man Charged With Harboring Fugitive And Making False Statements In Connection With Shooting Of Two Deputy United States Marshals

 

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Ralph Sozio, the United States Marshal for the Southern District of New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the filing of a Complaint in Manhattan federal court charging GRANT GRANDISON with making false statements to federal agents and harboring or concealing a person from arrest.  As alleged, GRANDISON allowed Andre K. Sterling, a fugitive wanted for the November 20, 2020, shooting of a state trooper in Massachusetts, to reside in his Bronx apartment.  GRANDISON further allegedly lied to the Marshals who were seeking to arrest Sterling by telling the Marshals that no one was in the apartment, before Sterling fired multiple rounds at the Marshals, striking and injuring two Marshals.  GRANDISON was arrested on December 4, 2020, and was presented this afternoon before United States Magistrate Judge Sarah Netburn.

Acting U.S. Attorney Audrey Strauss said:  “As alleged, Grant Grandison’s conduct led to the horrific shooting of two Deputy United States Marshals who were just doing their jobs in attempting to arrest Andre K. Sterling, a man wanted for a violent felony.  We are lucky that more law enforcement officers were not injured during the shooting, and it appears that both injured Marshals will recover.  Grandison is now charged in federal court for his serious crimes.  Our Office remains committed to defending our brave law enforcement partners, who risk their lives every day to keep New Yorkers safe.”

United States Marshal Ralph Sozio said:  “Unfortunately, and as alleged, the actions of Grandison dictated the events that led to the shooting of two Deputy United States Marshals on that morning in the Bronx.  The heroic actions of the Deputy United States Marshals and Task Force Members that day are a true testament to the dangers of entering an unknown location in search of a violent fugitive.  On behalf of the United States Marshals Service I want to extend my gratitude to the United States Attorney’s Office and the New York City Police Department for their tireless investigation and their pursuit of Federal charges.  Our thoughts and prayers are with our Deputies as they recover from their injuries.  The United States Marshals Service and the law enforcement community remain united in our continued pursuit of justice.”

NYPD Commissioner Dermot Shea said:  “By misleading federal agents, as alleged, the defendant led them into a violent attack.  The ensuing shooting not only injured two Deputy U.S. Marshals but is an assault on society.  I commend the U.S. Attorney’s Office for the Southern District of New York for answering it with these federal charges.”

As alleged in the Complaint[1] filed in Manhattan federal court:

On or about November 20, 2020, Andre K. Sterling allegedly shot a Massachusetts State Trooper during a traffic stop in Hyannis, Massachusetts.  Sterling fled from Massachusetts and was deemed a fugitive.  On or about November 24, 2020, a federal warrant was issued for Sterling’s arrest.

On the morning of December 4, 2020, several Deputy United States Marshals (the “Marshals”), along with officers from the NYPD and state troopers from the Massachusetts State Police, traveled to an apartment in the Bronx (the “Apartment”), where they believed Sterling was located, in order to arrest Sterling.  The Marshals announced themselves as “U.S. Marshals” and encountered GRANDISON at the door.  The Marshals asked GRANDISON, in sum and substance, if anyone else was in the Apartment, and GRANDISON replied, in sum and substance, that no one else was in the Apartment.  At the time of GRANDISON’s statements to the Marshals, he knew that Sterling was a fugitive.  The Marshals proceeded into the Apartment, at which point Sterling began firing at the Marshals, striking and injuring two Marshals.  The Marshals returned fire, and Sterling was killed in the exchange.  Law enforcement agents recovered a firearm from near Sterling.

Law enforcement agents later interviewed GRANDISON, who admitted, in sum and substance and among other things, that he had allowed Sterling to live with him.  GRANDISON further admitted that Sterling had told him, in sum and substance and among other things, that if anyone was looking for him, GRANDISON should tell them Sterling was not there. 

GRANDISON, 35, of the Bronx, New York, is charged with one count of making false statements to a federal agents and one count of harboring or concealing a person from arrest, each of which carries a maximum sentence of five years in prison.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Ms. Strauss praised the outstanding investigative work of the United States Marshals Service, the New York/New Jersey Regional Fugitive Task Force, the New York City Police Department’s 47th Precinct Detective Squad, the Massachusetts State Police, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorney Alexandra N. Rothman is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Attorney General James Helps Secure $86.3 Million in Multistate Agreement with Mortgage Servicer Nationstar

 

More Than 2,300 New Yorkers Will Receive More Than $4.5 Million in Restitution

 New York Attorney General Letitia James has joined 50 other attorneys general and other federal and state agencies to deliver an $86.3 million agreement — including $79.2 million in restitution for homeowners — with Nationstar Mortgage LLC for its multiple servicing errors since 2011. These errors have caused financial harm to tens of thousands of Americans and resulted in some being locked out of their homes, robbing them of their dignity. Nationstar — which does business as “Mr. Cooper” — is the country’s fourth-largest mortgage servicer. This agreement, inclusive of the new servicing standards Nationstar must follow, will protect hundreds of thousands of homeowners across the United States. 

The agreement provides $79.2 million in restitution to 55,814 borrowers for a variety of harms that were identified in the attorneys general’s six-year investigation. In particular, thousands of borrowers had problems when their loans were transferred to Nationstar, leading to foreclosure in some circumstances. In New York, 2,363 borrowers will receive more than $4.5 million, either as a credit to their account if Nationstar is still their servicer, or as a check. 

“Far too often, corporate greed has been a barrier to millions of families trying to attain the American Dream of homeownership,” said Attorney General James. “Our work on this case will directly help thousands of New York homeowners and hold Nationstar mortgages servicer accountable for putting profits over people.” 

The agreement also requires Nationstar to follow a detailed set of rules, or “servicing standards,” in how it handles certain mortgage loans. These servicing standards are more comprehensive than existing federal law and will be in place for three years starting on January 1, 2021. In particular, the agreement affords greater protection to borrowers with limited English proficiency, including using state and federal government Spanish language mortgage-related forms, capturing and tracking borrowers’ language preferences, and communicating with borrowers who are engaged in loss mitigation in the language of their loss mitigation application.  

In 2012, Nationstar began purchasing mortgage servicing portfolios from competitors and grew quickly into the nation’s largest non-bank servicer. As loan data was transferred to Nationstar, borrowers who had sought assistance with payments and loan modifications sometimes fell through the cracks, the lawsuit alleged. Borrowers in this category will receive a guaranteed minimum payment of $840 as part of the agreement.

The lawsuit alleged that other borrowers suffered damages when Nationstar failed to oversee third-party vendors hired to inspect and maintain properties owned by delinquent borrowers and improperly changed locks on their homes. These borrowers will receive a guaranteed minimum payment of $250.

A settlement administrator will send a claim form to eligible borrowers in 2021. Nationstar has already provided some of the relief outlined in the agreement.

The agreement also requires Nationstar to conduct audits and provide audit results to a committee of states to ensure compliance with the settlement.

 The lawsuit alleged other unlawful acts and practices by Nationstar, including: 

• Failing to properly oversee and implement the transfer of mortgage loans;
• Failing to appropriately identify loans with pending loan modification applications when a loan was being transferred to Nationstar for servicing;
• Failing to timely and accurately apply payments made by certain borrowers;
• Threatening foreclosure and conveying conflicting messages to certain borrowers engaged in loss mitigation;
• Failing to properly process borrowers’ applications for loan modifications;
• Failing to properly review and respond to borrower complaints;
• Failing to make timely escrow disbursements, including the failure to timely remit property tax payments;
• Failing to timely terminate borrowers’ private mortgage insurance; and
• Collecting monthly modified payment amounts on certain loans where the amounts charged for principal and interest exceed the principal and interest amount contained in the trial plan agreement.

The settlement was signed by attorneys general from all 50 states and the District of Columbia and covers conduct by Nationstar occurring from January 1, 2011 to December 31, 2017. The state attorneys general negotiated the settlement with the state mortgage regulators and the federal Consumer Financial Protection Bureau, which filed separate settlement documents. 

The coalition also collaborated with the U.S. Trustee Program (USTP), a component within the U.S. Department of Justice that seeks to promote the efficiency and protect the integrity of the bankruptcy system. The USTP is finalizing a separate agreement with Nationstar to address historical servicing issues impacting borrowers in bankruptcy.

Governor Cuomo Directs State Department of Health to Begin Implementing 'Surge & Flex' Hospital Protocol

 

Hospitals Mandated to Expand Capacity by 25% 

Regions to Be Designated as Red Zones if Hospital Capacity Is Projected to Become Critical 

NY Asking Retired Doctors and Nurses to Return to Service; Registration to be Automatically Renewed, Fees Waived 

Indoor Dining to be Closed in NYC & Reduced to 25% in Rest of State if a Region's Hospitalizations Do Not Stabilize in Next 5 Days 

4,602 Patient Hospitalizations Statewide 

872 Patients in the ICU; 477 Intubated 

Statewide Positivity Rate is 4.79% 

80 COVID-19 Deaths in NY State Yesterday 

 Governor Andrew M. Cuomo today directed the New York State Department of Health to begin implementing the state's "surge and flex" protocol and mandate all hospitals begin expanding their bed capacity by 25 percent to further prepare hospitals for a future COVID-19 surge. Hospitals had previously been preparing plans for this action as part of New York's Winter COVID Plan. Additionally, the Governor issued a call to all retired doctors and nurses urging them to return to service if they are able to do so. A registration will be renewed at no cost for an individual who completes the questionnaire through the volunteer portal, set up by the state Department of Health.

The Governor also announced that regions that reach critical hospital capacity will be designated as a Red Zone under New York's micro-cluster strategy. Specifically, following the implementation of the state's "surge and flex" program, if a region's 7-day average hospitalization growth rate shows that the region will reach 90 percent within the next three weeks, the region will become a Red Zone.

Finally, following updated guidance from the CDC, the Governor announced that if a region's hospitalization rate does not stabilize in the next five days, additional restrictions will be applied to indoor dining. If the hospitalization rate does not stabilize in New York City in the next five days, indoor dining will be suspended; if the rate does not stabilize in regions outside New York City, capacity restrictions will be reduced to 25 percent.

"Here in New York, we have followed the data and the science. We do more testing than any state in the United States by far, have more data points by far, and we rely on the data. It's not anecdotal, it's not political, it's not an opinion. Right now, the data is showing us that the highest percent of hospitalization is actually upstate - Finger Lakes, that's Monroe, Rochester area. Buffalo, Western New York, Central New York. You come down to New York City, Long Island, we actually have a lower rate hospitalized than upstate, which is an exact flip of where we were in the spring. In the spring, we had a largely downstate situation and upstate the situation was much better," Governor Cuomo said. "We've done a couple of things that are different than other states. In New York, the state sets all the policies and keeps numbers that are determinative of the policies. Now, we close down if you hit critical hospital capacity. We're implementing the surge and flex. We're going to add 25 percent additional hospital beds. We'll renew the registration for nurses and doctors to get us a backup staff pool, continue to caution on the small spread and at the same time, we are gearing up to have the most efficient, most effective, most fair vaccination program in the country, reaching out to the black community, Latinos, undocumented, to make sure that it's fair. The good news is New York still has one of the lowest positivity rates in the nation. Only Maine, Vermont, Hawaii are lower than we are and Maine, Vermont, Hawaii — beautiful states — but different than New York. They don't have the cities, they don't have the density, so, for us to be down that low, is really good news."

Today's data is summarized briefly below:

• Patient Hospitalization - 4,602 (+160)
• Patients Newly Admitted - 530
• Hospital Counties - 55
• Number ICU - 872 (+22)
• Number ICU with Intubation - 477 (+13)
• Total Discharges - 88,263 (+314)
• Deaths - 80
• Total Deaths - 27,232

Attorney General James Secures $4.7 Million After Supermarket Chain Engaged in Three Schemes to Evade Taxes

 

NYC Supermarket Chain and Owner Evaded Employee

Withholding Tax, Income Tax, and Sales Tax

 New York Attorney General Letitia James today announced that her office has secured $4.7 million from a chain of supermarkets operating throughout New York City after they were caught committing three schemes to evade paying taxes. Today's agreement resolves claims that the chain — Food World — and its owner — Hi Jong “Howard” Lee — engaged in a series of fraudulent tax avoidance schemes by underreporting cash sales and paying workers off the books.

“My office has no tolerance for tax cheats who evade paying their fair share and leave others to foot the bill,” said Attorney General James. “Food World and its owner engaged in flagrant, multimillion-dollar schemes to defraud taxpayers and the state. This case should serve as a clear warning to all tax fraudsters that their attempts to cheat fellow citizens will be brought to light and will not go unpunished.”

The investigation commenced when a whistleblower filed a lawsuit under the qui tam provisions of the New York False Claims Act, which allows individuals to file civil actions on behalf of the government and receive a percentage of any recovery.

The investigation found that, from 2012 until 2018, Food World entities — including Pine Tree Meat & Produce Inc., Food Jungle, Inc., Sonamoo, Inc., and CNI Meat & Produce, Inc. — engaged in three separate schemes to underreport sales and income taxes and evade employee withholding tax obligations — all at the direction of Food World’s owner.

The first scheme involved the use of standalone cash registers attached to New York state lottery machines to record cash sales of non-lottery supermarket items. These lottery cash registers were used to conduct cash sales of groceries and other taxable goods without being recorded in the stores’ online sales system, and without being declared for income tax or sales tax purposes.

The second scheme involved underreporting sales by issuing fake merchandise returns. The owner, Lee, forced store managers at two Food World locations to generate fake return receipts, purportedly documenting the return of multiple items that were never actually returned. Food World employees then provided the withdrawn cash for the allegedly returned items to Lee, along with the fake return receipts.

The third scheme involved paying the majority of Food World employees in cash and off the books, in an effort to avoid thousands of dollars in withholding tax deductions every week. Food World and Lee paid less than half of their employees by payroll check — which would have included appropriate withholdings. Instead, Food World and Lee paid the majority of their employees in cash and off the books — allowing Food World to underreport thousands of dollars in wages each pay period and evade employer withholding taxes.