NEW DOC STAFFING DATA: NYC Comptroller Updates Monthly Dashboard on Department of Correction Operations

 

The New York City Comptroller’s Office released a monthly update to its Department of Correction (DOC) Dashboard, available here.  This month’s release includes four new charts to the dashboard regarding DOC staffing.

• Uniformed Headcount by Years of Service
  • As of November 2023, officers with six-to-10 years of service represent 45% of the uniformed correction officers, the largest proportion of the staff.
  • Officers with five years of service or less make up 11% of the workforce and officers with more than 21 years make up 2%. The majority of staff, 87%, have between six to 20 years of service.
• Monthly New Hires
  • DOC hired only 91 correction officers since the beginning of the fiscal year, a fraction of the hiring rate for years proceeding the onset of the pandemic in March 2020.
• Annual Departures from DOC
  • As of November 2023, 39% of total departures from the department were staff who resigned, a continuing pattern from 2022 and 2021.
  • 18% of DOC staff who left retired.
  • DOC dismissed 181 staff members–30% of the staff who left the department and DOC terminated 43 officers–3% of departures.
• Departures by Seniority
  • As of November 2023, most of the staff who left the department worked for DOC for six to 10 years.
  • In 2021, DOC staffers who worked three to five years left far more than any other groups.

“As we approach 2024, New York City has a lot of work to get done to close Rikers by 2027,” said Comptroller Brad Lander. “Rather than incarcerate all 6000 people awaiting trial, DOC needs to create a more sustainable and targeted approach further reduce the detained population to fit the 3,300 person capacity of the borough-based jails. Although DOC has fewer uniformed officers now due to resignations and retirements in recent years, DOC staffing levels must align proportionally to a significantly smaller jail population when the new borough-based jails are ready to replace Rikers.”

Key monthly DOC metrics show:

• As of December 1st, DOC jails detained 6,148 people, 14 fewer from the previous month
• 1,819 people entered jails in November, 28 more people entered in October. DOC discharged 1,825 people, 28 fewer people than last month.
• Judges assigned cash bail to over 1,000 people (1,200) in October for the eighteenth consecutive month in a row.
• In November, the average length of detention increased to 104 – a one day increase from the prior month.
• 20% of people held at Rikers had a serious mental illness in October, the last month data is available.
• Incarcerated persons missed medical appointments 13,610 times in September, the last month data is available.
• The average number of uniformed staff totals 6,336, 4 fewer officers between October and November.
• Two fewer officers were on sick leave in November. DOC has 412 officers on sick leave, continuing the Department’s downward trend.
• Violence indicators mostly decreased in November.
  • 6 fewer assaults on staff from October with 50 total assaults on staff in November.
  • Jails had 61 more fights, increased to 508 in November.
  • 15 fewer slashings and stabbings, a decrease to 23 incidents since October, representing a substantial decrease from the prior months.

Comptroller Lander was the first citywide elected official to call for a federal receiver of Rikers Island in October 2022.  The Comptroller’s dashboard, first published in August 2022, monitors pervasive issues in the City’s jails, including staff absenteeism, missed medical appointments, and incidents of violence among detained people and staff. It also tracks the jail population every month and length of stay. The Comptroller’s office publishes data to this dashboard monthly to provide increased transparency and accountability over the City’s jail system.

View the DOC Dashboard.

Attorney General James Sues SiriusXM Radio for Trapping Consumers in Unwanted Subscriptions

 

AG James’ Lawsuit Alleges SiriusXM Makes it Difficult for Consumers to Cancel Subscriptions Due to a Deliberately Lengthy and Burdensome Cancellation Process

New York Attorney General Letitia James today sued SiriusXM Radio, Inc. (SiriusXM) for trapping consumers in subscriptions and maintaining deliberately long and burdensome cancellation processes. An investigation by the Office of the Attorney General (OAG) found that SiriusXM forces its subscribers to call or chat online with an agent to cancel a subscription, then deliberately draws out those interactions as part of its strategy to prevent subscribers from canceling. The OAG also found that the company trains its agents to not take “no” for an answer when customers try to cancel, making it extremely difficult and frustrating for consumers to end their subscriptions. Through this lawsuit, Attorney General James seeks restitution, penalties, and disgorgement from SiriusXM for violating New York’s business laws.

“Having to endure a lengthy and frustrating process to cancel a subscription is a stressful burden no one looks forward to, and when companies make it hard to cancel subscriptions, it’s illegal,” said Attorney General James. “Consumers should be able to cancel a subscription they no longer use or need without any issues, and companies have a legal duty to make their cancellation process easy. New Yorkers can trust that when companies like SiriusXM try to take advantage of them and violate the law, my office will step in to stop them.” 

SiriusXM is an audio entertainment company headquartered in New York City and has approximately 35 million subscribers, of which nearly 2 million are New Yorkers. The OAG opened an investigation into the company after hundreds of consumers reported to OAG and other agencies that they could not cancel their subscription. The OAG’s investigation found that the company trains its agents to keep customers on the phone or in the chat for a lengthy six-part conversation that includes asking a series of questions and then pitching the subscriber as many as five retention offers, all to delay cancellation. When customers decline the offers, agents are trained not to take “no” for an answer and to keep bombarding customers with questions or offers until they either relent or become frustrated.

According to SiriusXM’s own data, it takes subscribers an average of 11.5 minutes to cancel by phone, and 30 minutes to cancel online, although for many subscribers it takes far longer. Subscribers often spend substantial time waiting to be connected with an agent, with wait times that regularly reach more than 20 minutes for online chat agents. Despite these long wait times, OAG found that the company can cancel a customer's subscription with a simple click of a button, or even allow customers to do so themselves.

In affidavits submitted to OAG, consumers described how difficult it was to cancel subscriptions they no longer used or wished to pay for. In one case, a SiriusXM agent kept a subscriber in a chat for 40 minutes, despite the subscriber’s clear and repeated requests to cancel, according to a log of the chat. And after that, the company continued to charge the customer anyway. When the consumer then filed a complaint, SiriusXM said that it was not able to locate any cancellation request from him. Another complaint — handwritten by a consumer on behalf of her 92-year-old mother — described a maddening phone call with a SiriusXM agent that lasted nearly 40 minutes.

The OAG’s lawsuit charges that SiriusXM violated state and federal laws concerning subscriptions that renew automatically by failing to provide subscribers with a cancellation mechanism that is simple, timely, and easy to use. The OAG’s lawsuit also alleges that SiriusXM engaged in fraud and deception by misleading subscribers seeking to cancel. 

Through her lawsuit, Attorney General James seeks full restitution for all impacted subscribers nationwide, including compensation for the time SiriusXM wasted by putting its subscribers through a deliberately lengthy cancellation process. Attorney General James also seeks disgorgement, penalties, and costs, and to require SiriusXM to implement a simple and easy-to-use cancellation process.

Attorney General James asks any consumers who have been affected by SiriusXM’s cancellation practices, or the deceptive or fraudulent cancellation practices of any other automatic-renewal service, to file a consumer complaint online.

Governor Hochul Signs the Lead Pipe Right to Know Act

 

Nation-Leading Public Health Legislation Builds On And Surpasses Federal Standards for Lead Pipe Notification

Legislation S.5512/A.6115 Requires Public Water Systems to take Service Line Inventories and Make Information Available to the Public

Governor Kathy Hochul signed legislation S.5112/A.6115, also known as the Lead Pipe Right to Know Act, to protect New Yorkers from the extraordinary public health risk posed by lead pipes. The legislation requires making information easily accessible to the public about the number and location of lead pipes so that state and federal resources can be secured and efficiently targeted to support local efforts to remove all lead pipes impacting New York’s drinking water.

“Lead poisoning poses a clear and present danger to the health and well-being of all New Yorkers,” Governor Hochul said. “This nation-leading legislation will protect New Yorkers from lead pipes, which are proven to cause extraordinary harm. I am committed to doing everything in my power to protect the health and well-being of New Yorkers.

Legislation S.5112/A.6115 requires water utilities across the state to publicly share how many lead service lines are present in their distribution system and where those lines are located so that individuals and policymakers can understand the full scale and extent of the lead service line issue.

State Senator Gustavo Rivera said, "I am grateful to Governor Kathy Hochul for signing my Lead Pipe Right to Know Act into law, and cementing New York's position as a leader in enacting progressive climate change legislation. This law will take stock of our state's water pipeline infrastructure and ensure access to clean water to New Yorkers across the State. We must combat environmental injustice and with this law, we will keep our communities healthy and safe.”

EDITOR'S NOTE:

This is good news, but what about the the pipes in the apartment buildings and private homes that may have lead in them. This legislation is only half done. 

MAYOR ADAMS, COMMUNITY PARTNERS BREAK GROUND ON WILLETS POINT TRANSFORMATION, LARGEST AFFORDABLE HOUSING PROJECT IN 40 YEARS

 

With Construction One Year Ahead of Schedule, Project Will Deliver First 880 Units of 2,500 Affordable Homes, One Acre of Open Space, Retail Space, and Much-Needed Infrastructure

 

Transformation at Willets Point Expected to Generate $6.1 Billion in Economic Impact Over 30 Years, Creating 1,550 Permanent and 14,200 Construction Jobs

New York City Mayor Eric Adams, New York City Department of Housing Preservation and Development (HPD) Commissioner Adolfo Carrión, Jr., New York City Housing Development Corporation (HDC) President Eric Enderlin, and New York City Economic Development Corporation (NYCEDC) President & CEO Andrew Kimball today were joined by elected officials and community leaders to break ground on 880 new affordable homes in Willets Point, Queens ― the first phase of the city’s largest 100 percent affordable housing development in 40 years. In partnership with the Queens Development Group (QDG), a joint venture formed by Related Companies and Sterling Equities, the groundbreaking marks the start of construction — more than one year ahead of schedule — for a project that will deliver the first of more than 2,500 affordable homes, roughly 35,000 square feet of new public open space, and significant infrastructure upgrades. The project is projected to generate $6.1 billion in economic impact over the next 30 years, creating 1,550 permanent jobs and 14,200 construction jobs.

 

“What we are seeing in Willets Point is the future of New York City — a future in which all New Yorkers can afford to live in a safe apartment that is close to a good school, good-paying jobs, outdoor space, and great public transportation,” said Mayor Adams. “Today, we are breaking ground on a once-in-a-generation project and building the largest 100 percent affordable housing development in our city in 40 years. This is all part of our administration’s commitment to tackling our city’s housing and affordability crisis to ensure no child should have to feel the way I did while growing up on the edge of homelessness. I want to thank Borough President Richards, Councilmember Moya, and Queens Community Board 7 for helping us break barriers and cut every extra inch of red tape to build more affordable housing for New Yorkers.”

 

“Over the decades, many plans for the transformation of Willets Point have been developed but the Adams administration is proud to celebrate what has, for too long, been elusive: rapidly turning those plans into actions that benefit New Yorkers,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “This groundbreaking delivers on our promise to accelerate the creation of affordable, new homes on the site as we move full-speed ahead in building a whole new neighborhood with acres of open space, thousands of job opportunities, new retail amenities, major infrastructure upgrades, and a state-of-the art soccer stadium. I want to thank NYCEDC, HPD, and HDC, as well as our partners at Queens Development Group for working tirelessly to finally turn this generations-long dream into reality.”

 

“With the groundbreaking of Willets Point, we celebrate many overlapping wins: the creation of affordable housing and retail, essentially the delivery of a brand-new neighborhood in New York with affordability at its center; the shoring up of an area in the crosshairs of climate change; and the collaboration of every level of government, along with the private sector, to make it all possible,” said Deputy Mayor for Operations Meera Joshi. “This is a model of economic development, urban planning, and infrastructural preparedness that we will be able to take lessons from for a long time.”

 

“Breaking ground on the largest 100 percent affordable housing development in the past 40 years at Willets Point captures the spirit of our administration’s commitment to making the city more affordable and building new strong communities," said HPD Commissioner Carrión Jr. "This historic milestone goes beyond just construction; it represents our dedication to creating and supporting vibrant, sustainable neighborhoods — places that foster long-term economic opportunities and welcome families from all backgrounds for generations to come right here in ‘The World’s Borough.’"

 

“This development will be a game changer for the Willets Point community, with the creation of nearly 900 new affordable homes and retail space that will stimulate economic activity,” said HDC President Enderlin. “Thank you to all our colleagues involved in this transformative effort to deliver much-needed affordable housing and economic opportunity to the residents of Queens.”

 

“Today’s groundbreaking ceremony is a historic moment for Queens as we begin the construction of the Willets Point transformation and signal the end of the ‘Valley of Ashes,’” said NYCEDC President and CEO Kimball. “In the true spirit of Mayor Adams’ ‘Get Stuff Done,’ we are beginning the development of the largest affordable homes project in a generation one year ahead of schedule, which shows how committed this administration is to addressing affordable housing. We are grateful to all of our city and elected officials for their continuous support, and especially grateful to our development partners QDG for their tremendous work and dedication on this development.”

 

“Willets Point is a perfect example of just how transformative good planning can be,” said New York City Department of City Planning Director Dan Garodnick. “Starting with today’s groundbreaking, we’ll turn this corner of Queens into a truly dynamic neighborhood that will provide thousands of income-restricted homes, good-paying jobs, open space, and more for New Yorkers. That’s a big win that we can all be proud of.”

 

“A just transition must not leave anyone behind, and the people in these new, affordable homes will live in all-electric, energy-efficient buildings that help the city and state advance their world-leading climate goals,” said Mayor’s Office of Climate & Environmental Justice Executive Director Elijah Hutchinson. “The transformation of Willets Point will also create improved flooding infrastructure to help mitigate the impacts of climate change, and it will expand open space for Queens residents who need areas for community-building, connection, and play.”

 

“Today, we’re solidifying the mayor’s commitment to build 100 percent affordable homes on the first six acres of development at Willets Point for New Yorkers, and as part of the redevelopment, the SCA will build a state-of-the-art school with approximately 650 seats for the children who will call Willets Point and the surrounding communities home,” said New York City School Construction Authority (SCA) President and CEO Nina Kubota. “These 650 seats are part of the more than 24,000 seats we are adding to Queens as part of our current and upcoming capital plans.”

 

Today’s groundbreaking marks a historic milestone in the transformation of Willets Point — a neighborhood that will be anchored by a total of 2,500 new affordable homes, a 650-seat standalone public school, New York City’s first-ever soccer-specific stadium, over 100,000 square feet of public open space, a 250-room hotel, and neighborhood-serving ground-floor retail space that will create good-paying jobs for community residents. The first phase of Willets Point features two mid-rise buildings that will include 880 units of 100 percent affordable homes, with 40 percent of the units at or below 60 percent of area median income, including 15 percent of the units set aside for households for those formerly experiencing homelessness. Amenities will include a landscaped inner courtyard, in-building laundry, tenant lounge space with access to outdoor terraces, bicycle storage, ground floor retail shops, and other community facilities. Additionally, the buildings will be all-electric, achieve LEED Gold certification, and comply with Local Law 97 through high-performance glazing, high-efficiency HVAC systems, an electric hot water plant, an insulated envelope, energy star appliances, and low-emission mobility options for residents, such as bike storage and electric vehicle charging.

 

Construction on the first 880 units is expected to be completed by the end of 2026, and 220 additional affordable homes set aside for low-income seniors are expected to break ground next in the Willets Point transformation. The city and its development partner, QDG, have undertaken significant environmental remediation of the formerly contaminated soil, which has been completed across a majority of the project site as of July 2023. Wells Fargo’s Community Lending and Investment arranged a total of $360 million in financing for phase one of the project with a $236.5 million construction loan and $123.5 million Low-Income Housing Tax Credit investment.

 

While the first phase of housing construction is underway, the city and QDG have already commenced the city’s Uniform Land Use Review Procedure (ULURP) certification process for the second phase of neighborhood transformation, which will bring an additional 1,400 units of affordable housing, the new hotel, and the soccer stadium that will be 100-percent privately financed and seat up to 25,000 spectators.

 

The neighborhood will additionally feature infrastructure investments, including new streets, signage, sidewalks, curbs, trees, lights, draining, stormwater management, water main/hydrants, sewers, utilities, and will elevate the site out of the flood plains. Once complete, the Willets Point transformation will bring significant long-term economic opportunity to a community that has long been underserved.

 

“Wells Fargo is proud to partner with The Related Companies, Sterling Equities, and the City of New York, to help develop one of the largest affordable housing projects in New York City in the past 40 years,” said Alan Wiener, vice chairman of commercial real estate, Wells Fargo. “By leveraging our debt and equity platforms, we are honored to be part of a project that has the power to change lives, and one that will be a game-changer for thousands of families in Queens for generations to come.

 

“Breaking ground on the first affordable housing units at Willets Point is a milestone that will both define and secure our city’s future. We are grateful to our partners, led by Mayor Adams, EDC, HPD, and the entire administration. Together, we are transforming this neighborhood into a community that thousands of families will call home for generations to come,” said Jeff Blau, CEO, Related Companies, and Gregory Katz, partner, Sterling Equities, on behalf of Queens Development Group. “Willets Point is the ultimate example of what happens when public-private partnerships buckle down, work hard, and come up with solutions to solve the critical issues facing our city.”

 

“Today’s groundbreaking for phase one of the larger Willets Point project is an important step in fortifying this community's future,” said Brad Sims, CEO, New York City Football Club. “We’re proud to be part of a development that will bring much-needed affordable housing to Queens, create a vibrant Willets Point community, and serve the needs of thousands of New Yorkers.”

 

“The transformation of Willets Point represents an incredible opportunity for Queens and our entire city,” said Tom Grech, president and CEO, Queens Chamber of Commerce. “We are proud to be here alongside Mayor Adams and his team to break ground on a historic investment in much-needed affordable housing and are thrilled that the project is one year ahead of schedule! We look forward to continuing to work with the Adams administration, NYCEDC, HPD, HDC, and others to further support this important project that will create jobs and catalyze economic activity that lifts up local businesses.”

 

Permits Filed For 2303 Prospect Avenue In Belmont, The Bronx

 

Permits have been filed for a seven-story mixed-use building at 2303 Prospect Avenue in Belmont, The Bronx. Located between East 183rd Street and East 187th Street, the lot is near the East 180th Street subway station, serviced by the 2 and 5 trains. Gil Broitman of Brooklyn Grid is listed as the owner behind the applications.

The proposed 64-foot-tall development will yield 23,086 square feet, with 19,811 square feet designated for residential space and 3,275 square feet for commercial space. The building will have 28 residences, most likely rentals based on the average unit scope of 707 square feet. The concrete-based structure will also have a cellar and eight open parking spaces.

Gerald Caliendo Architects is listed as the architect of record.

Demolition permits have not been filed yet. An estimated completion date has not been announced.

U.S. Attorney Announces Charges Relating To Firearms Trafficking And Distribution Of Counterfeit Pharmaceutical Pills Containing Fentanyl

 

Damian Williams, the United States Attorney for the Southern District of New York, Erin Keegan, the Acting Special Agent in Charge of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced that a grand jury returned a five-count Indictment charging JYSHUN TROWER with transporting and selling over 40 firearms in New York and TROWER and STIVEN ARTURO MARTINEZ NIN with conspiracy to distribute large quantities of counterfeit pharmaceutical pills containing fentanyl.  TROWER and MARTINEZ NIN were arrested on Thursday, December 14, 2023, and presented in Manhattan federal court before U.S. Magistrate Judge Ona T. Wang on Friday, December 15, 2023.  The case is assigned to the Honorable Denise L. Cote. 

U.S. Attorney Damian Williams said: “Jyshun Trower and Stiven Arturo Martinez Nin are charged with having allegedly peddled two of the deadliest threats to New Yorkers—illegal firearms and fentanyl.  The firearms recovered by law enforcement included military-style assault weapons, and the drugs seized included more than a kilogram of counterfeit pharmaceutical pills containing deadly fentanyl and fentanyl analogue.  I want to thank the law enforcement agents who investigated this case for their tireless work resulting in today’s charges and reiterate this Office’s commitment to ensuring that those who flood the streets with deadly guns and drugs will be brought to justice.”   

HSI Acting Special Agent in Charge Erin Keegan said: “The defendants are accused of crimes that threaten not only the lives of those purchasing these counterfeit drugs, but also potential victims of gun violence in New York City.  HSI New York is proud to work closely with our law enforcement partners, including the members of the Organized Crime Drug Enforcement Task Force, every day in preventing deadly narcotics and weapons from reaching the streets and the community.”

NYPD Commissioner Edward A. Caban said: “This indictment shows that the dangerous work conducted by the NYPD and our law enforcement partners is effective, and that the proliferation of illegal guns and drugs on our streets continues.  I thank all the members of the OCDETF and the office of the U.S. Attorney’s Office for the Southern District of New York for their tireless dedication to our shared public safety mission.”        

According to the allegations in the Indictment and Complaint:[1]

From on or about June 5, 2023, through on or about December 14, 2023, JYSHUN TROWER illegally transported and sold firearms in Manhattan and the New York City area.  In almost a dozen transactions, TROWER illegally sold approximately 43 firearms to an undercover law enforcement agent and others.  The firearms included multiple semiautomatic pistols, semiautomatic rifles, assault style rifles and pistols, ammunition, high-capacity magazines, a ghost gun, and components used to convert a semiautomatic pistol into a fully automatic pistol, also known as a machine gun.  Images of several of the firearms that TROWER sold are below. 

Firearms TROWER sold in Manhattan on July 31, 2023.

Firearms TROWER sold in Manhattan on August 17, 2023.

Firearms TROWER sold in Manhattan on August 25, 2023.

Firearms TROWER sold in Manhattan on September 29, 2023.

In addition, TROWER and MARTINEZ NIN conspired to sell 10,000 fentanyl pills to an undercover law enforcement agent.  TROWER had also arranged with the undercover agent to include several firearms in the transaction.  On or about December 14, 2023, TROWER and MARTINEZ NIN arrived at the sale location. Law enforcement apprehended TROWER.  MARTINEZ NIN attempted to flee on foot and discard a bag containing over one kilogram of pills and their packaging. 

JYSHUN TROWER, 27, of Virginia Beach, Virginia, is charged with one count of illegally dealing firearms, which carries a maximum sentence of five years in prison, one count of illegally transporting and distributing firearms, which carries a maximum sentence of five years in prison, one count of conspiring to distribute fentanyl, which carries a maximum sentence of life in prison, one count of using and carrying firearms while engaging in the narcotics conspiracy, which carries a maximum sentence of life in prison, and one count of attempted transfer of a firearm for use in a drug trafficking crime, which carries a maximum sentence of 15 years in prison.

STIVEN ARTURO MARTINEZ NIN, 24, of Carlisle, Pennsylvania, is charged with one count of conspiring to distribute fentanyl, which carries a maximum sentence of life in prison.

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

Mr. Williams praised the outstanding investigative work of the NYPD and the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force.   

The OCDETF New York Strike Force provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.  The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organization, reduce the illegal drug supply in the United States, and bring criminals to justice.  The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA; NYPD; New York State Police; Homeland Security Investigations; U.S. Internal Revenue Service, Criminal Investigation; U.S. Customs and Border Protection; New York National Guard; U.S. Coast Guard; New York State Department of Corrections and Community Supervision; Bergen County Prosecutor’s Office; Fort Lee Police Department; Palisades Interstate Parkway Police; Teaneck Police Department; Hillsdale Police Department; Closter Police Department; Northvale Police Department; River Vale Police Department; Englewood Police Department; Saddle River Police Department; Bergen County Sheriff’s Department; Hawthorne Police Department; and Hackensack Police Department. 

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

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

Iranian National Charged with Unlawfully Procuring Microelectronics Used in Unmanned Aerial Vehicles on Behalf of the Iranian Government

 

Justice Department Seizes More Than $800,000 from Companies Tied to Network

The Justice Department unsealed an indictment charging Iranian national Hossein Hatefi Ardakani and co-defendant Gary Lam, who worked for a Chinese company, with crimes related to the procurement of U.S.-manufactured dual-use microelectronics for the Islamic Revolutionary Guard Corps (IRGC) Aerospace Force Self Sufficiency Jihad Organization’s (ASF SSJO) one-way attack unmanned aerial vehicle (UAV) program.

Concurrent with this unsealing, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Ardakani, as well as multiple other individuals and entities involved in the procurement network used by Ardakani in support of Iran’s production of UAVs. Ardakani’s codefendant, Lam, whom OFAC identified as Lin Jinghe, was designated by OFAC in October. 

“This coordinated action with the Treasury Department demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.”

“This announcements show that we remain focused on disrupting the efforts of Iran and its agents to circumvent U.S. sanctions in support of Iran’s weapons programs, including its drone program, which have been used to support and supply terrorist organizations and other foreign adversaries – such as Russia – around the globe,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “This whole-of-government approach is one more step in stopping the acquisition of drones for nefarious purposes such as attacks on innocent civilians and civilian infrastructure.”

“U.S. technology has zero place in Iranian UAVs,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce. “As these allegations demonstrate, those who procure dual-use microelectronics for the Islamic Revolutionary Guard Corps will be held accountable.”

“Ardakani and his co-conspirators crafted a sophisticated web of front companies to obscure the illicit acquisition of U.S. and foreign technology to procure components for deadly UAVs,” said Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI) New England. “These very components have been found in use by Iran’s allies in current conflicts, including in Ukraine. The disruption of these criminal networks by Homeland Security Investigations means that hundreds of thousands of critical UAV components will never again be used for malign purposes.”

According to the indictment, between at least in or around September 2014 and September 2015, Ardakani and Lam, who was based in China and Hong Kong, as well as other associates, conspired to illegally purchase and export from the United States to Iran dual-use microelectronics that are commonly used in UAV production, including high electron mobility transistors (HEMTs), monolithic microwave integrated circuit (MMIC) power amplifiers, and analog-to-digital converters. Each of these components are subject to U.S. export controls for anti-terrorism, national security and regional stability reasons.

The indictment further alleges that on four separate occasions Ardakani and his co-conspirators used a web of foreign companies to accomplish their obfuscation and evasion efforts. For example, between June and September 2015, Ardakani and Lam caused an unwitting French company to purchase from a U.S. company several pieces of analog-to-digital converters with applications in wireless and broadband communications, radar and satellite subsystems, multicarrier, multimodal cellular receivers, antenna array positioning and infrared imaging. Lam then caused a division of the French company to ship the analog-to-digital converters to Hong Kong, where they were reexported to Iran. A variation of this tactic – involving witting and unwitting companies in Canada, Hong Kong, and China – was used on the other three occasions.

In addition to the indictment, separate, related seizure actions targeting Nava Hobbies SDN BHD (Nava Hobbies) and Arta Wave (Arta Wave) SBN BHD and their property were unsealed today. Nava Hobbies and Arta Wave are two of the entities designated by OFAC in its action announced today. The funds are subject to seizure based on violations of U.S. law, including U.S. economic sanctions targeting Iran and money laundering violations. The seizures, totaling more than $800,000, aim to further degrade this network’s ability to procure UAV components. Proceedings involving this property remain ongoing.

Ardakani and Lam are charged with conspiracy to export U.S. goods to Iran and to defraud the United States, which carries a maximum penalty of five years in prison; unlawfully exporting and attempting to export goods to Iran, which carries a maximum penalty of 20 years in prison; and conspiracy to engage in international money laundering, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Ardakani and Lam remain at large and are believed to reside abroad.

HSI, the Department of Commerce’s Bureau of Industry and Security, and the Defense Criminal Investigative Service are investigating the case.

Assistant U.S. Attorney Jolie Zimmerman for the District of Columbia is prosecuting the case, with valuable assistance from Assistant U.S. Attorney Sean Heiden for the District of Columbia and Trial Attorneys Heather Schmidt and Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Attorney General James and Multistate Coalition Secure $700 Million from Google for Harming Consumers

 

Google Will Refund Millions of Consumers for Overcharging for Apps and In-App Purchases

Multistate Agreement Requires Google to Stop Anticompetitive Behavior and Allow App Developers to Use Other Billing Systems

New York Attorney General Letitia James and a bipartisan coalition of 53 attorneys general announced a $700 million agreement with Google LLC (Google) for monopolistic conduct in its app store that increased costs for consumers and app developers. Today’s agreement resolves a lawsuit filed by a coalition of attorneys general co-led by Attorney General James that alleged Google unlawfully maintained its monopoly over mobile app distribution and in-app payment processing for Android devices, and used its monopoly power to charge consumers as much as 30 percent for purchasing apps and making in-app purchases. The agreement requires Google to pay restitution to consumers and make changes to how it allows app developers to sell products on Android devices. 

“No company, no matter how large or powerful, is allowed to corner a market and use its influence to overcharge consumers and smother competition,” said Attorney General James. “For too long, Google abused its market share to unfairly raise prices and block developers from selling products in other app stores. Under this agreement, New Yorkers and millions of consumers nationwide will get money back after being overcharged for Google’s app store services. I thank my fellow attorneys general for their partnership on this case to deliver real change for millions of consumers nationwide.”

As a result of this agreement, Google will pay $630 million in restitution, minus costs and fees, to consumers who made purchases on the Google Play Store between August 2016 and September 2023 and were harmed by Google’s anticompetitive practices. Google will also pay the states $70 million for their sovereign claims. Eligible consumers will be notified of the settlement and will receive automatic payments through PayPal or Venmo, or they can elect to receive a check or ACH transfer. In addition, Google must make changes to stop its anticompetitive practices that harm consumers and app developers. Under the agreement, Google is required to: 

• Give all developers the ability to allow users to pay through in-app billing systems other than Google Play Billing for at least five years. 
• Allow developers to offer cheaper prices for their apps and in-app products for consumers who use alternative, non-Google billing systems for at least five years.
• Permit developers to steer consumers toward alternative, non-Google billing systems by advertising cheaper prices within their apps themselves for at least five years.
• Not enter into contracts or enforce provisions that require the Play Store to be the exclusive, pre-loaded app store on a device or home screen for at least five years.
• Allow the installation of third-party apps on Android phones from outside the Google Play Store for at least seven years. 
• Revise and reduce the warnings that appear on an Android device if a user attempts to download a third-party app from outside the Google Play Store for at least five years.
• Maintain Android system support for third-party app stores, including allowing automatic updates, for four years. 
• Not require developers to launch their app catalogs on the Play Store at the same time as they launch on other app stores for at least four years. 
• Submit compliance reports to an independent monitor who will ensure that Google is not continuing its anticompetitive conduct for at least five years.

For much of this case, the attorneys general litigated alongside Epic Games and Match, two major app developers. Match announced a separate settlement earlier this year, while Epic Games took its case to trial. A jury unanimously found that Google’s anticompetitive conduct violated the federal antitrust laws early last week.

This agreement requires Google to stop this anticompetitive behavior.

Attorney General James is also co-leading a bipartisan coalition of 38 attorneys general in a case against Google for its illegal, anticompetitive conduct that has sought to maintain the company's monopoly power in the general search services and search advertising markets. The coalition of attorneys general and the U.S. Department of Justice took the case to trial in the U.S. District Court for the District of Columbia. New York is also a plaintiff in a third case against Google alleging that the company monopolized the components of the “adtech stack” used to buy and sell digital display ads.