Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - SEPTEMBER 1, 2022

 

Governor Encourages New Yorkers to Keep Using the Tools to Protect Against and Treat COVID-19: Vaccines, Boosters, Testing, and Treatment

16 Statewide Deaths Reported Yesterday

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19. 

"With the fall season rapidly approaching, I remind all New Yorkers to remain vigilant in order to keep themselves and their loved ones healthy," Governor Hochul said. "Take advantage of the vaccine and booster by staying up to date on doses. Test before gatherings or travel and if you test positive, talk to your doctor about potential treatment options."

This week, the Food and Drug Administration issued emergency use authorization for both the Moderna and Pfizer updated COVID-19 vaccine booster shots, designed to target Omicron subvariants and provide even more protection against COVID-19. The Centers for Disease Control and Prevention (CDC) could approve these new boosters as early as Friday.  

Today's data is summarized briefly below:   

• Cases Per 100k - 25.28
• 7-Day Average Cases Per 100k - 20.65
• Test Results Reported - 70,806
• Total Positive - 4,941
• Percent Positive - 6.70%**
• 7-Day Average Percent Positive - 5.83%**   
• Patient Hospitalization - 2,309 (-23)
• Patients Newly Admitted - 395
• Patients in ICU - 254 (+13)
• Patients in ICU with Intubation - 85 (-4)
• Total Discharges - 337,325 (+402)
• New deaths reported by healthcare facilities through HERDS - 16
• Total deaths reported by healthcare facilities through HERDS - 57,658

** Due to the test reporting policy change by the federal Department of Health and Human Services (HHS) and several other factors, the most reliable metric to measure virus impact on a community is the case per 100,000 data — not percent positivity.   

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.   

Important Note: Effective Monday, April 4, the federal Department of Health and Human Services (HHS) is no longer requiring testing facilities that use COVID-19 rapid antigen tests to report negative results. As a result, New York State's percent positive metric will be computed using only lab-reported PCR results. Positive antigen tests will still be reported to New York State and reporting of new daily cases and cases per 100k will continue to include both PCR and antigen tests. Due to this change and other factors, including changes in testing practices, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.   

• Total deaths reported to and compiled by the CDC - 73,689

** Due to the test reporting policy change by the federal Department of Health and Human Services (HHS) and several other factors, the most reliable metric to measure virus impact on a community is the case per 100,000 data — not percent positivity.   

Each New York City borough's 7-day average percentage of positive test results reported over the last three days is as follows **:   

Borough	Monday, Aug 29, 2022	Tuesday, Aug 30, 2022	Wednesday, Aug 31, 2022
Bronx	6.86%	6.74%	6.60%
Kings	3.85%	3.21%	3.15%
New York	4.98%	4.85%	4.84%
Queens	6.87%	6.70%	6.86%
Richmond	5.66%	5.67%	5.81%

Co-Founder And Chief Investment Officer Of London-Based Hedge Fund Charged With FX Market Manipulation And Fraud

 

 Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging NEIL PHILLIPS, the co-founder and chief investment officer of a hedge fund based in the United Kingdom, with conspiracy to commit commodities fraud, conspiracy to commit wire fraud, commodities fraud, and wire fraud in connection with a scheme to artificially manipulate the United States dollar (“USD”) / South African rand (“ZAR”) exchange rate to fraudulently trigger a $20 million payment under a barrier options contract.  PHILLIPS was arrested in Spain earlier this week at the request of the United States.

U.S. Attorney Damian Williams said:  “As alleged, Neil Phillips – the co-founder and chief investment officer of a prominent U.K. hedge fund – manipulated the FX market in order to unlawfully obtain millions of dollars in payments for his hedge fund under an options contract.  Market manipulation is pernicious in all of its forms and today’s charges are a reminder that the Southern District of New York will steadfastly investigate and prosecute such activity whether it occurs in the equity market, the FX market, or elsewhere in the financial system.”

FBI Assistant Director Michael J. Driscoll said:  “As alleged, Mr. Phillips maliciously manipulated global markets in order to defraud financial institutions for illicit profit.  The FBI is determined to root out these types of frauds so financial markets remain a level playing field.  As shown today, the FBI will find fraudulent actors no matter where in the world they are located and seek to bring them back to the United States to face the consequences of their actions in our federal criminal justice system.”

As alleged in the Indictment unsealed in Manhattan federal court:[1]

Background on Hedge Fund-1 and the FX Markets

At all relevant times, PHILLIPS was the co-founder and co-Chief Investment Officer of a hedge fund based in the United Kingdom (“Hedge Fund-1”), which was a global “macro” fund that focused on macroeconomic trends and emerging markets, foreign currency exchange (“FX”) markets, and currency and commodity products.  Hedge Fund-1 was at all relevant times a registered commodity pool operator with the Commodity Futures Trading Commission (the “CFTC”) and PHILLIPS was himself registered with the CFTC as well.

The FX market is a global market in which participants trade currencies in pairs.  In a currency pair, each currency is valued relative to the other, and the ratio that expresses the value of one currency against the other is referred to as the “exchange rate” or the “rate.”  FX “spot” trades involve one party agreeing to receive a particular currency in exchange for delivering a different currency, at an agreed-upon price and quantity. 

The $20 Million One Touch Option

In late October 2017, Hedge Fund-1 purchased a “one touch” digital option for the USD/ZAR currency pair that was set to expire on January 2, 2018.  The option had a notional value of $20 million and a barrier rate of 12.50 ZAR to USD (the “$20 Million One Touch Option”).  Under the terms of the $20 Million One Touch Option, if the USD/ZAR exchange rate went below the rate of 12.50 at any point prior to January 2, 2018, Hedge Fund-1 would be entitled to a $20 million payment.  Hedge Fund-1 subsequently allocated a portion of the $20 million notional value to a client (“Client Fund-1”), thereby entitling Client Fund-1 to receive $4,340,000 in the event that the $20 Million One Touch Option was triggered.

Other financial institutions were party to the transaction:  Hedge Fund-1 purchased the $20 Million One Touch Option through a financial services firm (“Intermediary Firm-1”) that facilitates trades on behalf of underlying clients; a subsidiary of a bank headquartered in Manhattan, New York (“Bank-1”) was obligated to pay the $20 million in the event the $20 Million One Touch Option was triggered; and a bank headquartered in Manhattan, New York (“Bank-2”) acted as Hedge Fund-1’s prime broker in connection with the $20 Million One Touch Option.

Hedge Fund-1 and Bank-2 entered into a letter agreement that set forth the terms and conditions of the transaction.  This letter agreement provided that Hedge Fund-1 would be “acting in good faith and in a commercially reasonable manner” as the “Calculation Agent” in connection with the $20 Million One Touch Option and that Hedge Fund-1 would determine whether a barrier event occurred in good faith and in a commercially reasonable manner.

PHILLIPS Intentionally Manipulates the USD/ZAR Rate on Boxing Day 2017

With the $20 Million One Touch Option set to expire in a matter of days without having been triggered, on December 26, 2017 (Boxing Day), PHILLIPS engaged in a scheme to intentionally and artificially manipulate the USD/ZAR rate to drive the rate below 12.50 and trigger payment under the $20 Million One Touch Option.  PHILLIPS caused and sought to cause the USD/ZAR exchange rate to fall below 12.50 by engaging in FX spot trades in which he caused hundreds of millions of USD to be exchanged for ZAR.  PHILLIPS engaged in this USD/ZAR FX spot trading for the express purpose of artificially driving the USD/ZAR rate below 12.50.  On December 26, 2017, in the hours that followed the completion of the USD/ZAR FX spot trading directed by PHILLIPS, the USD/ZAR rate once again increased and returned to levels above the 12.50 barrier and did not go below that rate for the remainder of the day.

In particular, during the span of less than an hour between shortly before midnight London time on December 25, 2017 (Christmas day), and approximately 12:45 a.m. London time on December 26, 2017 (Boxing Day), PHILLIPS personally directed a Singapore-based employee (“CC-1”) of a bank (“Bank-3”) to sell, on behalf of Hedge Fund-1, a total of approximately $725 million USD in exchange for approximately 9,070,902,750 ZAR.  During the course of that approximately one-hour period, PHILLIPS, through his trading, caused the USD/ZAR rate to fall substantially until the rate went just below 12.50.  As soon as PHILLIPS had achieved his objective and the USD/ZAR rate fell below 12.50 due to PHILLIPS’ manipulative spot trading activity, PHILLIPS immediately directed that CC-1 cease trading.  PHILLIPS provided trading instructions to CC-1 through Bloomberg chat messages while PHILLIPS was located in South Africa and while CC-1 was located in Singapore.  In these Bloomberg chat messages, PHILLIPS explicitly directed CC-1 to continue selling until the USD/ZAR rate fell below 12.50 and PHILLIPS expressly stated that PHILLIPS’ purpose in directing these trades was to drive the USD/ZAR rate below 12.50 stating, among other things, “my aim is to trade thru 50,” “[n]eed it to trade thru 50. 4990 is fine,” and “[g]et it thru.”  Once PHILLIPS was informed by CC-1 that the USD/ZAR had traded at below 12.50, PHILLIPS immediately instructed CC-1 to “stop” trading and asked for proof “of the print.”

PHILLIPS Causes the Fraudulent Triggering of the $20 Million One Touch Option

Minutes after PHILLIPS artificially caused the USD/ZAR exchange rate to fall below 12.50 through his manipulative trading, PHILLIPS instructed another employee of Hedge Fund-1 (“CC-2”) to notify Intermediary Firm-1 that the $20 Million One Touch Option had been triggered.  Consistent with PHILLIPS’ directive, CC-2 contacted an employee of Intermediary Firm-1 to confirm that the $20 Million One Touch Option had been triggered and, in so doing, omitted the fact that the triggering event – the USD/ZAR rate falling below 12.50 – had occurred as a result of the manipulation of the USD/ZAR exchange rate by PHILLIPS.  Furthermore, Bank-2, which was serving as Hedge Fund-1’s prime broker in connection with the $20 Million One Touch Option and with whom Hedge Fund-1 had executed the relevant letter agreement governing the transaction, required confirmation from both the executing broker and from Hedge Fund-1 that the $20 Million One Touch Option had, in fact, been triggered.  In this regard, on or about December 27, 2017, an employee of Hedge Fund-1 notified Bank-2, that “[t]he below option level of 12.50 was hit yesterday” and sought to process payment in connection with the triggering of the $20 Million One Touch Option.  This representation by Hedge Fund-1 to Bank-2 that the $20 Million One Touch Option had been triggered likewise omitted the fact that the triggering event – the USD/ZAR exchange rate falling below 12.50 – had occurred as a result of the manipulation of the USD/ZAR exchange rate by PHILLIPS.

As a result of the fraudulent triggering of the $20 Million One Touch Option by PHILLIPS, Hedge Fund-1 ultimately received a wire transfer of $15,660,000 and Client Fund-1 received a wire transfer of $4,340,000. 

PHILLIPS, 52, of the United Kingdom, is charged with one count of conspiracy to commit commodities fraud, which carries a maximum sentence of five years in prison; one count of commodities fraud, in violation of Title 7, United States Code, Sections 9(1) and 13(a)(5), which carries a maximum sentence of 10 years in prison; and one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carry a maximum sentence of 20 years in prison. 

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

Mr. Williams praised the investigative work of the FBI.  He also thanked the Justice Department’s Office of International Affairs, as well as authorities in Spain.  Mr. Williams further thanked the Commodity Futures Trading Commission for their cooperation and assistance in this investigation.

The allegations in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

NYC PUBLIC ADVOCATE'S STATEMENT ON THE ANNIVERSARY OF HURRICANE IDA'S LANDFALL IN QUEENS

 

 "One year after Hurricane Ida struck, families are still grieving, communities still rebuilding from the flooding that destroyed homes and took the lives of thirteen of our neighbors. It is maddening to know that one year later, if Ida were to strike our shores today, its impact would be much the same.

"The city, state, and federal government have not taken the necessary steps, with necessary urgency, to protect New Yorkers from climate catastrophes that are no longer once in a century, but regular occurrences. In addition to providing all possible aid to people still reeling from the devastation of last year, the government must take immediate steps to develop the infrastructure needed for when, not if, the next storm hits. Some of the efforts announced by the city today are promising, but must be accelerated. We must codify, not condemn, units created out of desperation in a housing crisis, and protect them from the climate crisis. And I ask the Council to pass our emergency alert and flood prevention legislation. 

"We cannot wait another year, for another catastrophic event, before we summon the courage and conviction to pursue long-term solutions."

NYS Office of the Comptroller DiNapoli: NYSLRS Announces Employers' Retirement System Contribution Rates for 2023-2024

 

New York State Comptroller Thomas P. DiNapoli today announced employer contribution rates for the New York State and Local Retirement System (NYSLRS). Employers’ average contribution rates for the State Fiscal Year 2023-24 will increase from 11.6% to 13.1% of payroll for the Employees’ Retirement System (ERS) and from 27.0% to 27.8% of payroll for the Police and Fire Retirement System (PFRS). NYSLRS is made up of these two systems, which pay retirement and disability benefits to public employees and death benefits to their survivors. “The state pension fund’s performance in the fiscal year that ended March 31 was strong, but recent domestic and global economic volatility demands caution,” DiNapoli said. “As we move forward with our prudent investment strategy, we remain focused on long-term stable returns for New York’s public employers and workforce. Uncertainty may be a constant in financial markets, but the rates announced today will help ensure that New York’s pension fund will continue to be one of the nation’s strongest and best funded, ready to provide retirement security for generations to come.” Employer rates for NYSLRS are determined based on investment performance and actuarial assumptions recommended by NYSLRS’s actuary, who is required to complete an annual report. The recommendations are reviewed by the independent Actuarial Advisory Committee and approved by DiNapoli. In addition to investment performance, other factors that impacted rates included inflation and the increased COLA for retirees, higher salary base and benefit changes enacted this year by the Legislature and Governor. The assumed rate of return will remain at the same rate as the prior year at 5.9%. According to the National Association of State Retirement Administrators (NASRA), the only other state pension fund with an assumed rate of return lower than New York’s state pension is the Kentucky Employees Retirement System. New York manages considerably more assets than all of the 11 other systems under 6.5% combined, a testament to how well the state pension fund is managed. DiNapoli has acted conservatively and lowered the assumed rate of return of the state pension fund four times since being State Comptroller as economic and demographic conditions changes. DiNapoli also announced that NYSLRS had a funded ratio of 102.9% at the end of fiscal year 2022. NYSLRS is consistently ranked among the nation’s best funded, best managed retirement systems in the nation. A strong funding ratio means NYSLRS has the funds available to pay out retirement benefits to its more than one million active state and local government employees, retirees and their beneficiaries. In 2012, DiNapoli began providing employers with access to a two-year projection of their annual pension bill. Employers can use this projection in the preparation of their budgets. Projections of required contributions vary by employer depending on factors such as the types of retirement plans they adopt, salaries and the distribution of their employees among the six retirement tiers. There are more than 3,000 participating employers in ERS and PFRS, and more than 300 different retirement plan combinations. Last fiscal year, $14.7 billion were paid out in benefits. Report Annual Report to the Comptroller on Actuarial Assumptions Related Reports First Quarter Investment Returns for 2022-23 Fiscal Year End Investment Returns for 2021-22 About the New York State Common Retirement Fund  The New York State Common Retirement Fund is one of the largest public pension funds in the United States. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. It has consistently been ranked as one of the best managed and best funded plans in the nation.

Attorney General James’ Office of Special Investigation Releases Report on Death of David Wandell

 

 New York Attorney General Letitia James’ Office of Special Investigation (OSI) today released its report on the death of David Wandell in Elmira, Chemung County. Following a thorough and comprehensive investigation, including interviews with police officers and civilian witnesses, and close review of radio transmissions, ballistics testing, crime scene evidence, photographs, and body-worn camera (BWC) footage, OSI concluded that a prosecutor would not be able to disprove beyond a reasonable doubt at trial that the officers who shot Mr. Wandell were justified.

On August 21, 2021, Mr. Wandell was the subject of an officer safety alert sent to members of all law enforcement agencies in Chemung County, which advised officers he was wanted for a parole violation and to use caution if they encountered him because of his documented history of violence. On August 27, 2021, a New York State Police (NYSP) investigator saw Mr. Wandell walking in the Eldridge Park area of Elmira and radioed for assistance. An Elmira Police Department (EPD) officer who had heard the request for help over the radio passed Mr. Wandell in her cruiser and got out, intending to take him into custody. Mr. Wandell pointed what appeared to be a gun at her. The EPD officer fired shots at Mr. Wandell and then stumbled backward as Mr. Wandell fled the area. Though it does not appear that the EPD officer’s bullets hit Mr. Wandell, other responding officers saw Mr. Wandell point a gun at the officer, heard gunfire, and saw the officer fall. Presuming the EPD officer had been shot, another nearby officer reported over the radio that Mr. Wandell had shot an officer. In response, the dispatcher then transmitted a call to all county units for assistance because of “shots fired at officers.”

Officers from multiple county agencies followed Mr. Wandell and converged on him in Woodlawn Cemetery, shouting at him to drop his weapon and show his hands. Mr. Wandell, taking cover behind a tree, raised the gun toward the officers, and five officers — an NYSP trooper, an EPD investigator, a sergeant and a deputy from the Chemung County Sheriff’s Office, and a parole officer with New York State Department of Correction and Community Supervision — fired at Mr. Wandell.

A medical examiner’s analysis found Mr. Wandell was struck five times, and two of the shots were fatal. The recovered bullet fragments were not able to be matched with specific officers’ guns. When the officers approached, they found an airsoft pistol on the ground next to Mr. Wandell’s body. The requisite orange paint on the tip that would have distinguished it from a normal firearm had been removed.

Under New York’s justification law, a person may use deadly physical force to defend against the imminent use of deadly physical force by another. When the defense of justification is raised at trial, the prosecutor must disprove it beyond a reasonable doubt. In this case, the officers who fired at Mr. Wandell saw him raise what appeared to be a regular gun at them, had heard over the radio that he had fired at an officer in Eldridge Park minutes earlier, and had been warned days before that he had a history of violence. Based on the law and the evidence, OSI determined that criminal charges could not be pursued against the officers.

“In each and every case we review, my office remains committed to conducting thorough, fair, and transparent investigations,” said Attorney General James. “After an extensive review of the facts of this case, OSI determined that a prosecutor would not be able to disprove beyond a reasonable doubt that these officers’ actions were justified.”