MAYOR ADAMS CONTINUES SUPPORT FOR BRONX FIRE VICTIMS

 

Meal Delivery Services to Continue for Families Displaced by Bronx Fire Staying at Shelter Hotels

 New York City Mayor Eric Adams and the Mayor’s Fund to Advance New York City today announced the continuation of meal delivery services to support those affected by the January 9^th apartment fire in the Bronx. The delivery of culturally sensitive meals will continue through a partnership ​between the Mayor’s Fund and the NYS Latino Restaurant, Bar & Lounge Association (NYSLRBLA). World Central Kitchen (WCK) generously provided food service in the immediate aftermath of the fire. After WCK shifted their focus to serving Ukrainian refugees in Europe, Bronx Borough President Vanessa Gibson arranged for temporary food delivery via The Hoodspitality Group until the partnership with the Mayor's Fund and NYSLRBLA was established. Meal deliveries coordinated by NYSLRBLA begin today. 

“The fire in the Bronx was an unspeakable tragedy, and I made a promise that New York City would be there to help our neighbors through it,” said Mayor Adams. “I’m grateful for the partnership that the Mayor’s Fund to Advance New York City and the NYS Latino Restaurant, Bar & Lounge Association made to provide three meals a day to those families displaced by this devastating fire. Knowing that you don’t have to worry about where your next meal is going to come from can make your entire day, and these New Yorkers can trust that their city has their backs. New York stands ready to give impacted families all the support they need. I also want to thank Bronx Borough President Gibson for her partnership in helping coordinate meals in the interim. Bronx residents are lucky to have a fighter like her on their side.”

 

“We thank World Central Kitchen for supporting those affected by the tragic Bronx Fire and are so grateful to the NYS Latino Restaurant, Bar & Lounge Association for stepping in so quickly to ensure continued services” said Deputy Mayor for Strategic Initiatives Sheena Wright, chair, Board of Directors, Mayor’s Fund to Advance New York City. “Our office is committed to working in partnership with communities to ensure our neighbors have their needs met as they continue to recover. I also want to acknowledge and thank Borough President Gibson for her tireless advocacy on behalf of her constituents.”

 

“It has been two months since the tragic five-alarm fire at Twin Parks North West Apartments, and our team, alongside our elected official partners and nonprofit organizations, has been working diligently to ensure the families continue to receive support,” said Bronx Borough President Vanessa L. Gibson. “After immediately learning about the gap in food services to impacted families, my office partnered with The Hoodspitality Group to provide temporary food assistance to families in need, and we are excited to hear that, through this partnership between the Mayor’s Fund to Advance New York City and the New York State Latino Restaurant Association, food services will continue for the families. I want to also, once again, thank our first responders, essential workers, community partners and elected officials for their commitment and partnerships. We will continue to work with the mayor’s office to ensure all of the impacted families are receiving resources and transparency throughout this process.”

 

“New Yorkers will not allow those affected by the January 9^th Bronx apartment building fire to go hungry,” said Daniele Baierlein and JL Paniagua Valle, co-executive directors, Mayor's Fund to Advance New York City. “The Mayor's Fund is proud to partner with the NYS Latino Restaurant, Bar & Lounge Association to ensure that culturally appropriate meals are delivered daily to the individuals and families who continue to rebuild and recover from the tragedy. We are also grateful for World Central Kitchen for serving meals immediately after the fire and for many weeks afterwards.”

 

“We are privileged to partner with Mayor Adams in his continual relief efforts to support the grieving families of the Bronx Fire,” said Arelia Taveras, president, NYS Latino Restaurant, Bar & Lounge Association. “Our Latino restaurant owners will continue to support New York City and our local communities in times of adversity. Thank you for the opportunity to serve this great city!”

 

Those impacted by the fire on January 9th face a variety of associated costs. The Mayor’s Fund proactively works ​with the City of New York to ensure relief services, such as meals, are provided to the families as they recover and rebuild. Locally based organizations, including the Gambian Youth Organization, are providing additional support to those in need.

PUBLIC ADVOCATE RENEWS CALL FOR MUNICIPAL CONTROL OF CITY SCHOOLS

 

  Public Advocate Jumaane D. Williams continued his call for municipal control of New York City public schools today as the state considered the extension of mayoral control. In testimony submitted to the New York State Senate and Assembly Standing Committee on New York City Education for a joint hearing, the Public Advocate argued that municipal control would bring a new level of accountability, checks and balances to the city’s administration of the education system – including consent of the City Council for the hiring of a Department of Education Chancellor.

“I remain unwavering in my belief that New York City and local government should have jurisdiction over New York City schools through municipal control,” said Public Advocate Jumaane D. Williams in his testimony to the Standing Committee on New York City Education.“...We need to implement a system of checks and balances where the mayor and coordinating bodies are all held accountable. With municipal control, governmental bodies including the City Council would take on a greater role and work in tandem with the Mayor in assessing the needs and constraints of the New York City education system.” 

He highlighted that while the ongoing pandemic has transformed intergovernmental partnerships across city government, education has still been primarily managed under the mayor. “ Our children’s education should not be dependent on one person—the Mayor—especially during a time where we need heightened collaboration. It does not make sense to have one singular person at the helm of such an extensive education system when we can have a larger body share these responsibilities.” 

The Public Advocate's full testimony is below.

TESTIMONY OF PUBLIC ADVOCATE JUMAANE D. WILLIAMS AS SUBMITTED

TO THE NEW YORK STATE SENATE AND ASSEMBLY STANDING COMMITTEE ON NEW YORK CITY EDUCATION 

MARCH 4, 2021

Good morning. My name is Jumaane D. Williams and I am the Public Advocate for the City of New York. I would like to thank Senator Liu, Senator Mayer, and Assembly Member Benedetto for holding this hearing. Thank you for allowing me the opportunity to speak today. As someone whose entire educational background occurred within the New York City public school system, this is a very important and personal issue to me. 

In 2019, I provided testimony to the State Senate regarding the renewal of mayoral control. Of course, as you all know mayoral control was extended until June of this year. This time around, we have a renewed opportunity when it comes to mayoral control. I remain unwavering in my belief that New York City and local government should have jurisdiction over New York City schools through municipal control. Circumstances have drastically changed since 2019; we have since encountered various challenges within the New York City education system due to the COVID-19 pandemic. As a result, there are new considerations that need to be assessed. 

During the COVID-19 pandemic, many educators, parents, and students experienced uncertainty due to the lack of coordination and organization from the previous administration. As a result, students’ academic success and performance rate plummeted. I am aware that the administration had the best intentions and did the best they could based on these circumstances. However, our children’s education should not be dependent on one person—the Mayor—especially during a time where we need heightened collaboration. It does not make sense to have one singular person at the helm of such an extensive education system when we can have a larger body share these responsibilities. 

I would like to highlight that previous mayors, including our current mayor, are already familiar with working collaboratively in the education space. Mayor-elects establish a transition team for their administration which include education experts, elected officials, and government appointees. Why can’t this collaborative effort extend into the decisions made throughout their term and include other governmental bodies in the process? The Mayor of New York City is currently not held accountable for any of the decisions they make for the education system, and they should not remain unchecked.

We need to implement a system of checks and balances where the mayor and coordinating bodies are all held accountable via municipal control. With municipal control, governmental bodies including the City Council would take on a greater role and work in tandem with the Mayor in assessing the needs and constraints of the New York City education system. This role must include consent of the City Council for the hiring of a DOE Chancellor. Various advocacy groups and organizations already look to the City Council to create change but as the law stands, there are limitations to the say these bodies have in the education system. We must make room for other voices to weigh in on education issues. The City Council provides checks on other city agencies, yet they cannot do the same for the DOE. We have a chance to change this and provide a level of consistency across the board when it comes to agency accountability.

All students deserve to have a reliable and consistent education system that puts them first. The way this will be possible is by expanding the level of responsibility-sharing among multiple bodies including the City Council, not just the Mayor. We need to set an example for our students and show them that collaboration is how work gets done successfully, and this can be done through municipal control. At the end of the day, this decision impacts our students the most and I am hopeful there will be significant changes at the state and city level regarding this issue. I also look forward to working together to ensure that every student is able to have a fair chance to succeed in the system and that decisions moving forward involve a collective effort. 

Thank you.

STATEMENT FROM BOROUGH PRESIDENT GIBSON ON UPDATES FOR TWIN PARKS NORTH WEST FAMILIES

 

“It has been two months since the tragic five-alarm fire at Twin Parks North West Apartments and our team alongside our elected official partners, and nonprofit organizations have been working diligently to ensure the families continue to receive support.

After learning about the gap in food services to impacted families, my office partnered with The Hoodspitality Group to provide temporary food assistance to families in need. Beginning March 6th, The Latino Restaurant Association will be providing culturally sensitive meals to families housed in area hotels three times per day. Families will receive breakfast, lunch and dinner at each hotel. The hotel stays have also been extended until April 7th, for additional time for families to transition to permanent housing.

BronxWorks has been engaged to coordinate long-term case management that will be available to all residents and households. BronxWorks has served the Bronx community since 1972 and is equipped to provide or connect residents to a full range of services and support.

CVR New York is the local entity charged with assisting families seeking relocation housing services. They are assisting all households, regardless of their status or if they are a non-voucher holder. CVR’s team of associates are experienced with household certification, placement, and relocation services.

I want to once again thank our first responders, essential workers, community partners and elected officials for their commitment and partnerships. We will continue to work to ensure all of the impacted families are receiving resources and transparency throughout this process.”

Bronx Borough President 

Vanessa L. Gibson

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - MARCH 4, 2022

 

Daily Statewide Positivity Under 2% for Past Eight Consecutive Days 

17 COVID-19 Deaths Statewide Yesterday

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

"We have made incredible progress in combatting the spread of COVID-19 and to help ensure we maintain this progress, we must utilize the tools we have at hand to keep ourselves safe and healthy," Governor Hochul said. "If you haven't already taken advantage of the protection the vaccine offers, you should do so immediately. Whether it's your first dose, your second, or your booster, the vaccine is widely available, free, and effective."

Today's data is summarized briefly below:    

• Test Results Reported - 137,734
• Total Positive - 1,985
• Percent Positive - 1.44%  
• 7-Day Average Percent Positive - 1.63%  
• Patient Hospitalization - 1,631 (-88)
• Patients Newly Admitted - 193
• Patients in ICU - 275 (-23)
• Patients in ICU with Intubation - 141 (-13) 
• Total Discharges - 286,629 (+235)
• New deaths reported by healthcare facilities through HERDS - 17
• Total deaths reported by healthcare facilities through HERDS - 54,803  

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.  

• Total deaths reported to and compiled by the CDC - 69,418   

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.    

• Total vaccine doses administered - 37,088,005
• Total vaccine doses administered over past 24 hours - 19,373  
• Total vaccine doses administered over past 7 days - 313,179
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 91.7%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 83.1%   
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 95.0%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 85.7%  
• Percent of New Yorkers ages 12-17 with at least one vaccine dose (CDC) - 81.8%
• Percent of New Yorkers ages 12-17 with completed vaccine series (CDC) - 71.7%
• Percent of all New Yorkers with at least one vaccine dose - 81.2%    
• Percent of all New Yorkers with completed vaccine series - 73.3%  
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 89.1%
• Percent of all New Yorkers with completed vaccine series (CDC) - 75.6% 

RIKERS ISLAND INMATE INDICTED FOR SCALDING NYC DOC OFFICER

 

Victim Sustained 1st Degree Burns 

 Bronx District Attorney Darcel D. Clark today announced that a Rikers Island inmate has been indicted on second-degree Assault and additional charges for throwing scalding water at a New York City Department of Correction Officer in the jail, burning her skin. 

 District Attorney Clark said, “The defendant allegedly filled a cup with scalding water and threw it at a DOC Officer. The 31-year-old victim’s skin was burned, and she had to be transported to a local hospital for treatment. The defendant has been indicted on Assault charges for this awful, unprovoked attack.” 

 District Attorney Clark said the defendant, Darrell Woods, 36, an inmate in Rikers Island, was arraigned on March 3, 2022 on two counts of second-degree Assault, third-degree Assault, second-degree Menacing, fourth-degree Criminal Possession of a Weapon and second-degree Obstructing Governmental Administration before Bronx Supreme Court Justice Steven Barrett. Bail was set at $25,000 cash/$75,000 bond/$75,000 partially secured bond at 10 percent. The defendant is due back in court on May 4, 2022. 

 According to the investigation, on January 31, 2022, at approximately 12:38 p.m., the defendant was in the common recreation area in the Anna M. Kross Center with other inmates as the DOC Officer was on duty outside the gate door. Woods allegedly filled an institutional cup with approximately 190-degree water from an electric hot pot and threw it at the Officer’s torso area. The victim was taken to Mount Sinai Hospital where she was treated for first-degree burns.

 District Attorney Clark thanked DOC Correction Intelligence Bureau Investigators Daniel Monaco and Walter Holmes for their assistance in the investigation. 

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

News from BP Gibson: Resources and Updates

 

Dear Neighbors,   As the fight against COVID-19 continues, New Yorkers have made significant progress. Effective on March 7, 2022, if you are patronizing restaurants, bars and other indoor venues, you will no longer have to show proof of vaccination at the door to get in. Additionally, the mask mandate inside public schools has been lifted. Below you can find additional details and updates from Mayor Adams.   As a reminder, today is the final day to apply to join your local community board. We are encouraging everyone ages 16 and up to apply. You can click HERE for more information on how to apply in English or in Spanish.    If you have any questions, please do not hesitate to contact our office at 718-590-3500 or by emailing webmail@bronxbp.nyc.gov.   In partnership, Bronx Borough President Vanessa L. Gibson

New York City Mayor Eric Adams has announced several changes to COVID-19 pandemic restrictions including the suspension of the Key to NYC program and the removal of indoor mask mandates in city public schools for K-12 students.    Beginning Monday, March 7th:   Key to NYC rules will be suspended. Indoor venues, including restaurants, fitness facilities, and entertainment spaces will no longer be required to check for proof of vaccination before customers enter. Businesses previously covered by Key to NYC rules will still have the flexibility to require proof of vaccination or masking indoors if they choose.    Masks will no longer be required on public school grounds for kindergarten to 12th grade students. While these public school children will be able to remove their masks, if they so choose, schools will continue to maintain strict COVID-19 protocols, including increased ventilation, a daily screener to ensure those with symptoms do not come to school, and test kit distribution. Masks will continue to be required for all settings with children under 5 years of age (where none of the population is yet eligible for the vaccine), including programs contracted by the New York City Department of Education with 3- and 4-year-old children as well as 3k and 4K classrooms in district schools.     Mayor Adams today also announced that all other COVID-19 mandates will remain in effect. Under the rules, employees will still be required to be vaccinated unless they have received a reasonable accommodation from their employer.   Additionally, Mayor Adams released a new color-coded system that tracks COVID-19 alerts and keeps New York City residents apprised of the risks they face in New York City. This new system will better help New Yorkers understand the current level of COVID-19 risk and how they can best protect themselves and others based on the current risk. The system consists of four alert levels that outline precautions and recommended actions for individuals and government based on the Center for Disease Control and Prevention’s (CDC) Community Burden Indicator.   COVID-19 Alert Levels:   Alert Level: Low      There is low COVID-19 community spread. Precautions: Stay up to date - get vaccinated and boosted against COVID-19; consider wearing a face mask in public indoor settings where vaccine status is not known; and get tested if you have symptoms or are at high risk for poor health outcomes. Basic public health precautions, like good hand hygiene and staying home if sick, should be followed. Recommended Government Actions: Maintain current employer and school vaccine mandates; require face masks in settings with vulnerable individuals and where vaccine status is not verified, such as health care facilities, congregate settings, and public transportation; consider mandating up-to-date vaccination status in certain settings if there is a sustained increase in cases or a new concerning variant.   Alert Level: Medium There is medium COVID-19 community spread. Precautions: Stay up to date – get vaccinated or boosted against COVID-19; wear a mask in public indoor settings where vaccine status is not known; get tested if you have symptoms or were exposed, recently traveled, or attended large gatherings; stay home if sick; keep hands clean. Take additional precautions — such as avoiding crowded indoor and outdoor settings — if at-high risk due to age, underlying health condition, or being unvaccinated, or if interacting with high-risk individuals. Recommended Government Actions: Continue action from Low Alert Level. Consider requiring face masks in additional high-risk settings where it is crowded and distance cannot be maintained, such as schools. Consider reinstituting Key to NYC requirements if there is a sustained increase in cases or a new, concerning variant.   Alert Level: High There is high COVID-19 community spread. Pressure on the health care system in New York City is substantial. Precautions: Stay up to date – get vaccinated or boosted against COVID-19; wear a mask in all public indoor settings and crowded outdoor spaces; get tested if you have symptoms or were exposed, recently traveled or attended large gatherings; stay home if sick/exposed; and keep hands clean. Consider avoiding higher-risk activities, such as crowded, indoor gatherings. Recommended Government Actions: Continue action from Medium Alert Level. Increase testing and vaccination capacity; ensure adequate vaccination, testing and isolation capacity in congregate settings; require face masks in all public indoor settings.    Alert Level: Very High There is very high COVID-19 community spread. Health care services are overwhelmed by COVID-19 cases. Precautions: Stay up to date – get vaccinated or boosted against COVID-19; wear a mask in public indoor settings and crowded outdoor spaces; get tested; stay home as much as possible, especially if sick/exposed; and keep hands clean. Avoid nonessential activities and crowded spaces. Maximize physical distancing in all public settings, including in workplaces. Recommended Government Actions: Continue action from High Alert Level. Ensure congregate settings are less crowded; consider implementing restrictions on nonessential activities, offering telework and sheltering in place to keep essential functions (such as health care and schools) operating.

Rye Ophthalmologist Sentenced To 96 Months In Prison For Prolific Seven-Year Healthcare Fraud Scheme And Covid-19 Loan Fraud

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that AMEET GOYAL, M.D., (“GOYAL”) an ophthalmologist in Rye, New York, was sentenced to 96 months in prison for orchestrating a seven-year healthcare fraud scheme by falsely billing for millions of dollars of upcoded procedures, and also for fraudulently obtaining two Government-guaranteed loans intended to help small businesses during the COVID-19 pandemic while he was facing charges on pretrial release for the healthcare fraud scheme.  In imposing the sentence today, U.S. District Judge Cathy Seibel noted, “Fraud doesn’t fully capture how blatant this was and how unjustified this was… This was not about need, it was about greed.”  GOYAL previously pled guilty to all charges in a six-count superseding Indictment before Judge Seibel on September 13, 2021.

In addition to the prison term, GOYAL was sentenced today to five years of supervised release, and ordered to pay forfeiture of $3.6 million and restitution of $3.6 million.  GOYAL has already paid approximately $1.79 million toward these obligations.

U.S. Attorney Damian Williams said: “A prominent ophthalmologist and oculoplastic surgeon who has now surrendered his medical license, AMEET GOYAL was blinded by greed.  Over a seven-year period, he preyed on the trust placed in him and cheated patients and insurance companies of $3.6 million in false charges.  To cover his tracks, he created fictitious operative reports, seeded across hundreds of patient files, violating the integrity of patients’ medical records and making it more difficult for subsequent doctors to evaluate their care.  He sent patients who could not pay the upcoded bills to a collection agency, decimating their credit.  He pressured other doctors to join the scheme and threatened to retaliate against their livelihood and careers. Even after being arrested for this scheme, GOYAL committed a breathtaking new fraud and stole $637,200 from the Paycheck Protection Program in the early days of a devastating pandemic.  For his crimes, GOYAL will serve a substantial sentence in prison.”

According to the allegations contained in the Indictment, court filings, and statements made during court proceedings:

At all relevant times, GOYAL owned and operated the ophthalmology practice Ameet Goyal M.D. P.C., doing business as Rye Eye Associates, with offices in Rye, Mt. Kisco, and Wappingers Falls, New York, and Greenwich, Connecticut (the “Practice”).  Between 2010 and 2017, GOYAL engaged in widespread healthcare fraud by consistently “upcoding” simpler, lower-paying surgical procedures and examinations as complex, higher-paying major operations in fraudulent billings submitted to Medicare, private insurance companies, and patients.  As a result, GOYAL fraudulently obtained at least $3.6 million in payments for procedures he did not perform.  GOYAL failed to obtain proper and, at times, any consent for the upcoded procedures he falsely claimed to have performed.  As part of the scheme, GOYAL routinely falsified patient medical records, authoring fictitious templated operative reports that matched the complex operation he billed rather than the different minor procedure he actually performed.  GOYAL also pressured other employees in his Practice to engage in the scheme, and threatened the livelihood of employees who refused to comply.  GOYAL caused patients to pay thousands of dollars out of pocket for fraudulently billed charges, and initiated debt collection proceedings against patients who did not pay the full amounts of those false charges.  As a result of his fraudulent billings, GOYAL was the highest-billing doctor in the tri-state area for several of his fraudulently billed codes, one of which he billed seven times more frequently than all doctors in the tri-state area combined.  GOYAL was indicted for the healthcare fraud charges in November 2019 and was released on bail.        

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s Paycheck Protection Program (“PPP”).  Applicants with pending criminal charges are ineligible for PPP loans.  The PPP also limits each eligible borrower to one loan, and a maximum loan amount calculated based on a business’s average monthly payroll expenses. 

In or about April 2020, GOYAL applied to the SBA and Bank-1, a federally insured institution, for over $630,000 in Government-guaranteed loans through the PPP.  Specifically, on or about April 21, 2020, GOYAL applied for a loan in the amount of $358,700 for the business “Ameet Goyal,” with his own social security number and e-mail address. On or about April 29, 2020, GOYAL applied for a second loan in the amount of $278,500, with a business name “Rye eye associates,” using the Employer Identification Number for Ameet Goyal, M.D. P.C and a different email address controlled by GOYAL.  To substantiate each loan, however, GOYAL submitted the exact same underlying payroll expense report, showing the same employees and payroll costs. 

On both applications, GOYAL falsely answered that he was not facing any pending criminal charges, and electronically placed his initials “AG” directly under his “No” response.  GOYAL also falsely certified, among other things, that his business would not receive another PPP loan until the end of the year.  After obtaining approval from Bank-1 and the SBA through his fraudulent misrepresentations, GOYAL executed loan notes for two loans.  On May 4, 2020, GOYAL received the first loan of $358,700, and on May 11, 2021, GOYAL received the second loan of $278,500.  GOYAL used the business checking account into which these funds were deposited to pay business and personal expenses, including by making a payment to a country club in Westchester, New York within days of receiving the first loan, as well as payments to a California vineyard and golf merchandise website.          

GOYAL, 58, of Rye, New York, pled guilty to all six counts in the Superseding Indictment.  The first count charged healthcare fraud; the second count charged wire fraud; and the third count charged making false statements relating to health care matters.  Counts four, five, and six charged that while on pretrial release, the defendant committed the following offenses, respectively: bank fraud, making false statements on a loan application, and making false statements in a matter within the jurisdiction of the executive branch of the Government of the United States.

Mr. Williams praised the work of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the Office of the Inspector General of the SBA.

Attorney General James Launches Rulemaking Process to Combat Illegal Price Gouging and Corporate Greed

 

OAG Starts First Price Gouging Rulemaking Process as Major Corporations Continue to Raise Consumer Prices

AG James Seeks Public Comments to Inform New Price Gouging Rules

 New York Attorney General Letitia James today launched a rulemaking process to look into whether major corporations are using the pandemic and inflation as an excuse to unfairly raise the price of basic goods. The first-ever price gouging rulemaking process by the Office of the Attorney General (OAG) will examine and address new evidence that some of the recent price hikes by big corporations were driven by profit not increased costs. Through this process, Attorney General James aims to implement new price gouging rules that will crack down on pandemic profiteering and corporate greed.

“The rising costs of essentials and basic household items has had a real impact on working families,” said Attorney General James. “Throughout the pandemic, hardworking New Yorkers have been struggling to make ends meet, but big corporations have been celebrating record breaking profits. It doesn’t add up. My office is prepared to use every tool in our toolbox to crack down on price gouging and pandemic profiteering.”

New York’s price gouging law bans companies from taking advantage of a crisis to charge excessive prices for vital and necessary goods and services. The rulemaking process will explore growing evidence that big corporations appear to have used the pandemic as an excuse to charge more for necessary goods, such as gas and oil, food, and cars. As evidenced by the recent spike in corporate profits, many companies are not sharing in the burden of the pandemic, nor are they neutral. Evidence indicates that some companies are profiting by increasing costs for the people hit hardest by the pandemic.

Since the start of the pandemic, public reporting has highlighted instances of major corporations steadily increasing costs of goods onto consumers, despite experiencing record high revenue. Some examples of those reports include:

• Beef prices rose 30 percent, while meatpackers have been celebrating an average of 120 percent increase in profits.
• The cost of Proctor and Gamble diapers, toothpaste, detergent, and tampons has risen throughout the pandemic while Proctor and Gamble has boasted record-breaking profits.
• Chipotle prices are up 10 percent from January 2021 to January 2022, which the company blames on labor shortages, but their operating income rose 181 percent.
• While the cost of a basic cup of coffee at Starbucks has shot up 20 percent, the company profits are up 30 percent.
• Shipping prices are way up, while shipping company profit margins are breaking records.
• Chevron and Shell posted record profitability while energy costs soared.

While not all of these may be illegal, some of them may fit the definition of price gouging under New York law.

New York’s law bans “unconscionably excessive” prices, which include both “unconscionably extreme” prices and prices set through “unfair leverage or unconscionable means.” New York’s statute is also unique in the wide scope of covered goods and services, and the fact that it covers all actors in the supply chain for those goods and services, including manufacturers, retailers, distributors, shipping firms, and online platforms. The law also prohibits price gouging not just of consumers but also small businesses and state and local governments.

The Advance Notice of Proposed Rulemaking (ANPR) outlines the evidence that some of the price increases for vital and necessary goods may violate New York law and lays out the incentive structures that can lead to price gouging. The ANPR also discusses the unique harms caused by price gouging and the economic justification for prohibiting this form of profiteering. The ANPR has been submitted to the State Register for publication and will be officially available on or about March 9. 

The OAG is seeking comment from the public on a wide range of questions about price gouging, including questions about industry tools that may obscure price gouging.  

Public comments in response to the ANPR may be submitted immediately and until April 22, 2022 at stopillegalprofiteering@ag.ny.gov.

Requesting public comments is part of the three-step process. Once public comments are submitted OAG will review them then propose new rules. Afterwards, the public will have 60 days to submit comments on the proposed rules. Following the 60 days, OAG will promulgate new price gouging rules.

This is the first rulemaking initiated under the 2020 amendments to New York’s General Business Law 396-r, which expanded the scope of the price gouging statute, and granted the Attorney General rulemaking authority.