Former Disaster Relief Consultant And Retired NYPD Inspector Pleads Guilty To Conspiring To Commit Federal Program Fraud In Connection With New York City’s Hurricane Sandy Recovery Efforts

 

 Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn Strauber, Commissioner of the New York City Department of Investigation (“DOI”), announced that WALTER MELNICK, a retired Inspector of the New York City Police Department and a disaster relief consultant, pled guilty to conspiring to commit federal program fraud in connection with his work for an Illinois-based consulting firm (“Company-1”) that provided Hurricane Sandy-related recovery services to the City of New York.  MELNICK surrendered today and pled guilty before U.S. Magistrate Judge Valerie Figueredo in federal court in Manhattan.  The case has been assigned to U.S. District Judge Victor Marrero.

U.S. Attorney Damian Williams said:  “As New York City worked to recover from the devastation of Hurricane Sandy, Walter Melnick conspired to misuse funds that were allocated to heal the city in the wake of this disaster, instead attempting to use the funds for his own benefit.  I commend the Department of Investigation and this Office for holding to account those who conspire to defraud invaluable federal programs.”

DOI Commissioner Jocelyn Strauber said:  “This defendant was hired to help New York City with Hurricane Sandy relief efforts; instead, he conspired to defraud the City’s Office of Management and Budget of almost three hundred and ninety thousand dollars in federal disaster recovery funds.  Today, he plead guilty to that conduct, and agreed to pay back those funds to the City.  DOI thanks the Office of Management and Budget for its assistance.  We will continue to work with our local and federal law enforcement partners to hold accountable those who would seek to defraud the public and to ensure that public funds are used for their intended purpose.” 

According to the allegations in the Information, court filings, and statements made in court:[1]

Beginning in or about 2013, in the aftermath of Hurricane Sandy, the City of New York received billions of dollars in federal money to fund Hurricane Sandy-related recovery efforts.  The City used certain of these funds to hire Company-1 to assist with Hurricane Sandy relief (the “Sandy Project”).  Company-1 hired MELNICK as an independent contractor to work on the Sandy Project.

Between in or about 2013 and in or about 2019, while working on the Sandy Project for Company-1, MELNICK participated in two schemes to defraud the New York City Office of Management and Budget (“NYC-OMB”).  First, between in or about January 2013 and in or about October 2017, MELNICK conspired with at least one other individual (“CC-1”) and submitted fraudulent documentation to NYC-OMB via Company-1, falsely claiming that he was renting and living in an apartment in New York in order to obtain lodging and travel reimbursements.  Upon learning that this first fraudulent scheme was under investigation, MELNICK told CC-1 to lie to law enforcement.  Second, between in or about 2017 and in or about 2019, while working on the Sandy Project, MELNICK conspired with at least two individuals, including another employee of Company-1 (“CC-2”) and a family member (“CC-3”), to purchase a property that CC-2 used to submit fraudulent reimbursement requests to NYC-OMB via Company-1 for lodging expenses to which CC-2 was not entitled.  CC-2 transferred the proceeds from this fraudulent scheme to CC-3, who used part of the proceeds to pay the mortgage and maintenance for the property and retained the rest.  In or about March 2022, MELNICK made false statements to the Government in connection with this second fraudulent scheme.

WALTER MELNICK, 77, of Treasure Island, Florida, pled guilty to one count of conspiring to commit federal program fraud, which carries a maximum sentence of five years in prison.  Under the terms of his plea agreement, MELNICK agreed to forfeit $387,749 and to pay restitution to NYC-OMB in the amount of $387,749.

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 would be determined by a judge.  MELNICK is scheduled to be sentenced by Judge Marrero on January 20, 2023, at 10 a.m.

Mr. Williams praised the outstanding investigative work of DOI. 

[1] As the introductory phrase signifies, the entirety of the text of the Information constitutes only allegations, and every fact described herein should be treated as an allegation.

Attorney General James Helps Secure New Federal Energy Standards for American Families

 

New Standards Will Save Billions of Dollars for Families Nationwide and Help Protect the Planet

New York Attorney General Letitia James today announced an agreement with the U.S. Department of Energy (DOE) committing DOE to a new timetable for updating energy efficiency standards for 20 categories of common consumer products and commercial equipment. The impacted products and equipment range from residential furnaces to laundry machines to electric motors. According to experts’ estimates, updated standards for these products could provide more than $600 billion in total utility bill savings to American families by 2050 and avoid more than 90 million metric tons of carbon dioxide emissions annually by 2040.

Attorney General James is leading a coalition of 17 states, the District of Columbia, and the City of New York in today’s agreement, which resolves a complaint the coalition filed against DOE in 2020. The complaint alleged DOE failed to comply with deadlines for updating energy efficiency standards for a range of product categories set by the Energy Policy and Conservation Act of 1975 (EPCA).

“Increasing energy efficiency is widely recognized as one of the best ways we can cut pollution, fight climate change, and cut costs for families,” said Attorney General James. “Given today’s increasing energy prices and the impacts of the climate crisis, we must prioritize common-sense actions that will help hardworking Americans save money and reduce harmful emissions. My office will always fight to protect the people and the planet.”

The DOE’s energy efficiency standards currently cover more than 60 product categories. Nationwide, these products together use about 90 percent of the total amount of energy used in homes, 60 percent of the total amount energy used in commercial buildings, and 30 percent of the total amount of energy used in industrial facilities.

The EPCA requires DOE to periodically review and revise these efficiency standards to ensure they are set at the maximum, technically feasible and cost-effective efficiency level in order to save energy and reduce consumer and business utility costs. In 2020, Attorney General James and the coalition filed a complaint in the U.S. District Court for the Southern District of New York claiming DOE had missed EPCA deadlines for review and revision of efficiency standards for multiple product categories. In the filing, Attorney General James and the coalition alleged that in failing to meet deadlines, DOE deprived American families of the benefits of lower energy bills, a more reliable electricity grid, and reduced emissions of dangerous air pollutants that contribute to climate change and harm public health.

Joining Attorney General James in today’s agreement are the attorneys general of California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Pennsylvania, Vermont, Washington, and the District of Columbia, as well as the City of New York.

“This settlement is a triumph for consumers and the environment,” said Joe Vukovich, energy efficiency advocate, Natural Resources Defense Council. “It will jumpstart DOE review of efficiency standards poised to save $650 billion in utility bills and avoid the release of, at least, nearly a billion metric tons of climate-warming carbon pollution by 2050.” 

“The technology exists to make consumer products and commercial equipment incredibly energy efficient, and it is the responsibility of DOE to hold manufacturers accountable to meeting the highest possible standards,” said Jessica Tritsch, building electrification campaign director, Sierra Club. “This settlement will help us meet climate goals but also help American families save money on their energy bills and create sustainable manufacturing jobs for the future. The strongest possible energy efficiency standards will also ensure Americans keep their lights on and their heat or air conditioning on when the weather turns extreme by not overtaxing our electrical system. After all, heat waves and strong storms are only getting more common in the face of climate change — a crisis we must do everything we can to address with all the tools we have at our disposal.” 

“This agreement is essential for catching up on missed deadlines as quickly as possible in order for the incredible consumer, economic, public health, and environmental benefits of updated standards to be realized,” said Richard Eckman, energy advocate, Consumer Federation of America. “Now more than ever, consumers can use the additional pocketbook savings that updated efficiency standards will provide in the billions annually thanks to the increased energy efficiency of common household appliances. The agreement is also crucial in order to prevent millions of metric tons of greenhouse gas emissions that contribute to climate change from being emitted. We’re looking forward to working with DOE in moving forward with updates to appliance efficiency standards.”

“This agreement will conserve energy and save consumers money when they use everyday appliances,” said Howard Crystal, legal director, Center for Biological Diversity’s Energy Justice Program. “Energy efficiency is critical to addressing the climate emergency and ensuring a livable planet, even if it doesn’t get as much attention as other efforts. We’re pleased the department will finally move forward with these commonsense standards.”

Governor Hochul Announces Support Following Devastating Flooding Caused by Hurricane Fiona

 

100 New York State Troopers Will Be Sent to Puerto Rico To Support Relief Efforts

State Agencies, New York's Building Trades, Private Sector Businesses and Community-Based Organizations Ready to Assist as Puerto Rico Experiences Tropical Storm Conditions and One Million Residents are Without Power

Potential for Life-Threatening and Catastrophic Flooding Continues in Southern and Eastern Parts of the Island in Worst Storm To Impact Puerto Rico since Hurricane Maria in 2017

Governor Hochul Remains in Contact with Puerto Rico Governor, Dominican Republic President, and Offers Full Support of State Agencies with Emergency Response Assets

 Governor Kathy Hochul today announced New York State actions to support Puerto Rico in the wake of devastating flooding and winds caused by Hurricane Fiona, the worst storm to hit the island since Hurricane Maria in 2017. Following a call with Puerto Rico Governor Pedro Pierluisi, Governor Hochul directed the New York State Police to send 50 Troopers to assist with keeping residents safe, and 50 additional Troopers will be deployed in the coming weeks. The Governor also announced that the state has been working with Delta, JetBlue, Coca-Cola, New York State's Building Trades, the Greater New York Hospital Association, and SOMOS Community Care, who have all pledged their support for response and recovery efforts. Additionally, teams from the New York Power Authority are ready to deploy and assist in restoring power to the island.

"New York knows full well the devastating impact that Mother Nature can bring, and that is why we stand ready to help the people of Puerto Rico recover and rebuild from this terrible storm," Governor Hochul said. "Our brothers and sisters in Puerto Rico are incredibly resilient but, in times like this, New York will be there to help in any way we can, including sending personnel and resources to help the island and its residents recover."

The Dominican Republic is also being impacted by Hurricane Fiona, and Governor Hochul remains in contact with the President of the Dominican Republic, Luis Abinader, to support the country's relief efforts. Governor Hochul reiterated that the storm is not yet over, as its general motion northwest is expected to continue through this evening, before making a turn to the northeast later this week.

On Sunday, President Biden declared Hurricane Fiona an emergency, authorizing FEMA to coordinate disaster relief efforts. New York will work to support any requests coordinated by FEMA in the coming days to assist the residents of Puerto Rico. Delta and JetBlue will both donate cargo space and transport emergency personnel; the Greater New York Hospital Association will provide medical supplies; and Coca-Cola has committed water and additional supplies. Habitat for Humanity of New York City and Westchester County and the State's Building Trades also have committed their support as needs are identified.

Puerto Rico has seen rainfall from the storm totaling 12 to 20 inches, and up to 30 inches in some localized areas. These rainfall amounts are capable of producing life-threatening and catastrophic flooding. More than one million Puerto Ricans are currently without power as critical infrastructure systems have been damaged, and tropical storm conditions continue to impact the island.

MAYOR ADAMS’ STATEMENT ON HURRICANE FIONA DESTRUCTION IN PUERTO RICO

 

New York City Mayor Eric Adams today released the following statement after Hurricane Fiona ripped through Puerto Rico:

 

“We call Puerto Rico our sixth borough, and as Hurricane Fiona leaves behind a path of destruction, our administration stands ready to provide all of the support and aid our brothers and sisters need. An initial team of New York City emergency management specialists is being deployed today to assess the damage and determine how we can best help. Based on initial reports, we are also looking at possibly readying a larger multi-agency team to deploy in the coming days. We are in constant contact with those on the ground and are determining how we can be most helpful in the days and weeks ahead.”

NYGOP Chairman Langworthy Calls on Kickback Kathy to Donate Dirty Campaign Cash

NYGOP CHAIRMAN NICK LANGWORTHY CALLS ON "KICKBACK KATHY" TO DONATE $300,000 IN DIRTY CAMPAIGN CASH 

“It’s the very least she owes taxpayers to give this ill-gotten campaign cash to a charity instead of using it to run her nasty, dishonest attack ads.” 

New York Republican Chairman Nick Langworthy today called on “Kickback Kathy” Hochul to donate the $300,000 in campaign donations she received as a result of a massive pay-to-play scheme that cost taxpayers $637 million for a no-bid contract to a top donor. 

Hochul has been under fire for a kickback scheme whereby the governor abused her emergency powers to give a $637 million dollar no-bid contract to a company that charged the state double the value of covid tests. In exchange, Hochul received $300,000 from the family members of the company. Just recently it was revealed that California paid 45% less for the same tests. Langworthy has called for criminal investigations into the matter. This is just one of several examples of Hochul engaging in pay-to-play, following in the footsteps of her mentor, Andrew Cuomo. 

When the first expose on the deal was published, Chairman Langworthy submitted Freedom of Information Law requests to obtain all communications between the Hochul Administration and the company, Digital Gadgets. The Administration stonewalled and denied the request and the Party’s subsequent appeal is being ignored. 

“This crooked deal stunk on its face, but the more we learn about it, the more we see just how seriously corrupt it was,” said NYGOP Chairman Nick Langworthy. “This was a brazenly illegal kickback scheme that defrauded taxpayers to the tune of hundreds of millions of dollars. It needs to be criminally investigated, but the very least she must do is to give away this ill-gotten campaign cash. It should be donated to a charity to help the taxpayers who footed the bill for this corrupt deal, instead of using it to fund her nasty, dishonest attack ads.” 

 

NEW JERSEY MAN CONVICTED OF SCHEME TO DEFRAUD NYC DURING PANDEMIC SENTENCED TO FIVE YEARS PROBATION, 600 HOURS OF COMMUNITY SERVICE AND AN $8,000 FINE

 

 Jocelyn E. Strauber, Commissioner of the New York City Department of Investigation (“DOI”), issued the following statement on today’s sentencing of RONALD ROMANO, 60, to five years of probation, 600 hours of community service, and an $8,000 fine. ROMANO pleaded guilty in May 2022 to conspiring to violate the Defense Production Act, a misdemeanor, in connection with a scheme to supply Personal Protective Equipment (“PPE”) to New York City that he did not possess or have authority to sell, at a substantial markup. ROMANO, a used car dealer from Manalapan, N.J., engaged in this illegal conduct during the height of the COVID-19 pandemic, at a time when the City of New York was urgently seeking this essential equipment to protect its frontline workers. Today’s sentencing took place in the United States District Court for the Southern District of New York before U.S. District Judge Andrew L. Carter, Jr. DOI investigated this matter in partnership with the office of Damian Williams, United States Attorney for the Southern District of New York.

 DOI Commissioner Jocelyn E. Strauber said, “Mr. Romano exploited this City’s need for PPE during a worldwide health crisis to turn a personal profit at public expense. But sharp-eyed City procurement specialists, DOI, and federal prosecutors thwarted his criminal scheme and, as a result, Mr. Romano has a federal conviction and other significant penalties as a result of his effort to defraud New York City. DOI and the United States Attorney’s Office for the Southern District of New York are committed to pursuing schemes that jeopardize the health and safety of New Yorkers and taxpayer funds.”

 According to the indictment, between February 2020 and April 2020, ROMANO participated in a scheme to price gouge the City of New York in the early months of the pandemic by making false and fraudulent statements to induce the City to pay more than $45 million for what ROMANO represented to be 3M-brand N95 respirators, an amount more than 400% above the list price for such respirators. As of March 25, 2020, certain PPE, including those N95 respirators, were designated as scarce materials under the Defense Production Act. At the time of the scheme, the City of New York was in critical need of lifesaving PPE. The false statements included ROMANO’s submission of a document to the City that identified a fictitious PPE deal with the Florida Division of Emergency Management in which ROMANO claimed to be involved.

 ROMANO was charged in May 2020 and you can read that release here: https://www1.nyc.gov/assets/doi/press-releases/2022/May/13RomanoGP05_31_2022.pdf. ROMANO pleaded guilty in May 2022; and that release can be read here https://www1.nyc.gov/assets/doi/pressreleases/2020/May/RonaldRomano_arrest_PR_final.pdf.

Statement from Speaker Adrienne Adams and Deputy Speaker Diana Ayala, Chair of the General Welfare Committee, on Death of Woman in a New York City Shelter

 

“We are saddened and concerned by the report of a death of a new resident of our city’s shelter system yesterday. The health and safety of all people within our city systems is paramount, and the loss of one of our most recent residents who likely endured great challenges before arriving here is heartbreaking. The City has a responsibility to ensure the effective coordination of services and overall support for all residents in our shelter system. The complexities with meeting the needs of those seeking asylum without family connections here requires additional efforts that we must undertake with the support of our partners at every level of government and the non-profit sector. The Council will constructively work with all stakeholders to ensure the City fulfills its obligation to all of our residents. It is reprehensible that elected officials from other states are transporting individuals and families with children for political gain. They must be accountable for the detrimental impact they are having on the health and overall well-being of these vulnerable individuals.” 

Governor Hochul Announces Completion of $8.6 Million Expansion of Pharmaceutical Plant in Tonawanda

 Economic Development Incentives Allow Pine Pharmaceuticals To Double Full-Time Employment

Demonstrates New York's Commitment To Fostering the Growth of Innovative Businesses and Supporting State's Future in Tech Manufacturing

 Governor Kathy Hochul today announced the completion of the $8.6 million expansion of Pine Pharmaceuticals LLC's manufacturing plant in the Town of Tonawanda. The drug outsourcing company tripled the size of its facility at Riverview Solar Technology Park following the company's tremendous growth in the past three years. The expansion has allowed Pine to add almost 90 new, full-time permanent employees, doubling its initial projections and overall full-time permanent workforce. Empire State Development has agreed to support this project with up to $650,000 in performance-based Excelsior Jobs Program tax credits.

"Manufacturing is part of New York's legacy, and our state is home to some of the best engineers, developers, and scientists in the world," Governor Hochul said. "Pine Pharmaceuticals investment in Western New York will help fill a critical need for U.S. manufactured drugs, retain and create much-needed jobs and continue to boost our state's economic growth."

Pine Pharmaceuticals is a family-owned business that has experienced exponential growth and success in Western New York. The company provides pharmaceutical compounding, including specialized sterile formulations serving ophthalmologists, retinal specialists, hospitals, ambulatory surgery centers, medical practices and clinics. The company uses cutting-edge technology and industry-leading quality assurance practices and addresses drug shortages by working with hospitals, clinics, medical practices and physician offices to provide sterile compounded pharmaceuticals.

Pine Pharmaceuticals invested $8.6 million for the 50,000-square-foot addition to the existing state-of-the-art facility. The firm also benefits from low-cost power awards from the New York Power Authority: a 400-kilowatt (kW) Niagara hydropower allocation and a 136-kW ReCharge NY power allocation as part of its commitment to create and retain jobs and invest capital. ReCharge NY, launched by New York State 2011, offers up to seven-year power contracts. Half of the power — 455 megawatts — is from NYPA's Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric power plants, which provide some of the greenest, cleanest and lowest-cost electricity in the state. The remaining 455 megawatts is lower-cost power bought by NYPA on the wholesale market.

Empire State Development President, CEO and Commissioner Hope Knight said, "The health care industry is a growing sector in the Western New York economy, and with support from Governor Hochul, businesses like Pine Pharmaceuticals are creating more high-quality jobs for local workers. The company's move to triple the size of its facility, while adding 40 full-time jobs, reminds us that our recovery from Covid-19 is well underway."

Alfonse Muto, Owner of Pine Pharmaceuticals said, "We are so grateful for the support New York State has shown us during our expansion process. We are proud to be leading the charge right here in Western New York by creating dozens of new jobs and providing essential pharmaceuticals that will dramatically improve patient care across the country."

The new single-story addition to the sterile compounding facility include warehousing, quality, and manufacturing space. Other significant investment includes ISO-certified cleanrooms and manufacturing equipment. The company will use the additional space to produce IV bags and other complex products, as well as for inspection, packaging, labeling and storage. The entire building was designed from the ground up to comply with the FDA's Current Good Manufacturing Practice (CGMP).