NEW YORK DEPARTMENT OF STATE ANNOUNCES AVAILABILITY OF NEARLY $1.6 MILLION IN LOCAL GOVERNMENT EFFICIENCY FUNDS

 

Funding Availability Through the Local Government Efficiency Grant Program

Priority Will be Given to Focus on Cybersecurity, Emergency Services, Water Planning, and Climate Change Initiatives

Secretary Rodriguez: “One of the best ways for local government leaders to ensure long term viability and sustainability of New York’s counties and municipalities is to prepare for emerging threats.”

The New York Department of State (DOS) today announced the availability of nearly $1.6 million from its 2023-24 Local Government Efficiency Grant (LGEG) program to incentivize local governments to plan for and implement projects that reduce local government costs through shared services and municipal reorganization.

“One of the best ways for local government leaders to ensure long term viability and sustainability of New York’s counties and municipalities is to prepare for emerging threats,” said Secretary of State Robert J. Rodriguez. “We have set aside nearly $1.6 million in LGE funding to facilitate shared services and efficiencies that focus on addressing these issues.”

The  availability of LGEG program funds will focus on shared services projects in information technology, including cybersecurity; emergency services, including EMS; regional water and wastewater planning and design and intermunicipal actions that incorporate climate change mitigation. As with typical LGE scoring guidance, applications will be categorized as either Priority or Non-Priority. Priority applications will include projects in one of the four targeted functional categories, the implementation of a previous LGEG planning project, or the inclusion in a previously adopted or pending County-wide Shared Services Initiative (CWSSI) Plan.

Pursuant to the LGEG guidance, applications must include at least two eligible local government entities. In addition to priority designation, applications will be graded on various criteria, but not limited to:

• Return on investment to taxpayers.
• Project scale.
• Scope.
• Municipal readiness.
• Public engagement.
• Work plan; and
• Budget detail.

Applications for the LGEG funding will be due by 4:00PM on Friday, May 10 and submitted through New York’s Consolidated Funding Application (CFA) portal.

LGEG grant applications may fall into two categories – implementation grants or planning grants. Implementation grants may award municipalities with up to $200,000 for each involved municipality, with a maximum cumulative grant award of up to $1,000,000. For implementation grants, the local minimum match is 10%. For planning grants, awards may be granted up to $12,500 for each participating municipality with maximum project costs not exceeding $100,000. For these grants, the minimum required local match is $50,000 of project planning costs.

The LGEG grant program is just one of the grant programs administered by the Division of Local Government Services within the Department of State. The Division provides technical assistance and competitive grants to local governments. For more information on LGEG or any programs administered by the Division, please contact localgov@dos.ny.gov or call 518 473-3355.

MAYOR ADAMS ANNOUNCES NEW YORK CITY’S FIRST-EVER NONPROFIT ADVISORY COUNCIL

 

Announcement Builds on Adams Administration’s Continued Efforts to Support and Invest in City’s Nonprofit Sector

New York City Mayor Eric Adams today announced the city’s first-ever Nonprofit Advisory Council. Comprised of leaders and experts in the nonprofit sector, the advisory council will work with the New York City Mayor’s Office of Nonprofit Services to serve as a link between the Adams administration and the nonprofit organizations serving New Yorkers.

“When we came into office two years ago, we had a clear mission: protect public safety, rebuild our economy, and make this city more livable for everyday New Yorkers, and our nonprofits have a vital role in making all that happen,” said Mayor Adams. “We are fulfilling our mission and supporting nonprofits by investing $741 million in fairer wages for 80,000 human services employees working with the city, unlocking billions of dollars for nonprofits as we clear the contract backlog, and announcing the first-ever Nonprofit Advisory Council that will serve as a link between city government and nonprofit organizations. By convening this advisory council, we are making it easier to partner with nonprofits on everything from housing to health care to education. Nonprofit workers are our frontline workers, and we are going to make sure they have all the resources needed to thrive in our city.”

“The Adams administration is committed to strengthening the city government’s partnership with the nonprofit sector, which is central to providing services to millions of New Yorkers every day,” said Deputy Mayor for Strategic Initiatives Ana J. Almanzar. “The Nonprofit Advisory Council will help inform and guide our policymaking and programming to support the sector. The advisory council’s diverse membership reflects the vibrancy of nonprofits across all five boroughs, which will support our collective goal of creating a more resilient and equitable city for all.”

“Every day, in every borough, New Yorkers are interacting with nonprofit organizations, whether you are an older adult at a community center socializing with friends, a person with a disability receiving vocational training to help secure employment, or a family receiving navigation support to access various benefit programs,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “Nonprofits play a vital role in our network of support for individuals, children, and families and they must have a seat at the table. The Nonprofit Advisory Council is an important mechanism to ensure regular and open dialogue between government and the sector, and ultimately drive towards our shared goal — to support every individual, child, and family to thrive.”

“The nonprofit sector is the heartbeat of the city, representing every New Yorker, regardless of their race, culture, or economic status,” said Chief Procurement Officer and New York City Mayor’s Office of Contract Services (MOCS) Director Lisa Flores. “Through initiatives like clearing the backlog and the recent announcement of a cost-of-living-adjustment, this administration has shown that we've got the sector's back. We are very excited to keep the momentum going with the Nonprofit Advisory Council, a dedicated forum for the sector to share feedback and ideas on how we can better support them, and our office looks forward to partnering with the Mayor’s Office for Nonprofit Services as we turn those ideas into lasting change.”

“The establishment of the first-ever Nonprofit Advisory Council to the Mayor’s Office for Nonprofit Services marks a significant milestone in fostering collaboration and innovation and supports the city’s vital nonprofit sector,” said Mayor’s Office for Nonprofit Services Interim Executive Director Diane Mamet.

The advisory council will convene regularly to discuss emerging challenges and opportunities facing the nonprofit sector, develop innovative strategies for capacity-building and sustainability, and advocate for policies to help nonprofits thrive. In collaboration with the Mayor’s Office of Nonprofit Services, the advisory council will provide insights, guidance, and recommendations connected to policies, legislative agendas, and responses to programmatic issues within city government that impact nonprofit organizations.

The inaugural members of the advisory council represent a broad spectrum of nonprofit organizations, including those focused on social services, education, arts and culture, and advocacy. Their diverse backgrounds and perspectives will ensure that the advisory council effectively addresses the needs of the nonprofit sector. The Nonprofit Advisory Council will be co-chaired by Mayor’s Office of Nonprofit Services Interim Executive Director Diane Mamet, Union Settlement President and Chief Executive Officer Reverend Dr. Darlene Williams, and Urban Pathways Chief Executive Officer Frederick Shack. The advisory council will include the following nonprofits:

• Yaw Appiadu, executive director, Harlem Independent Living Center, Inc.
• Tatianna M. Arguello, executive director, Nonprofit Staten Island
• Courtney Bryan, executive director, Center for Justice Innovation
• Catherine Calvo, community engagement officer, Mother Cabrini Health Foundation
• Lisa David, president and chief executive officer, Public Health Solutions
• Beatriz Diaz Taveras, executive director, Catholic Charities Community Services
• Bibi Esahack, executive director, Bay Ridge Community Development Center, Inc.
• Janelle Farris, president and chief executive officer, Brooklyn Community Services
• Tara Gardner, executive director, Day Care Council of New York
• Wayne Ho, president and chief executive officer, Chinese American Planning Council
• Michelle Jackson, executive director, Human Services Council
• Chai Jindasurat-Yasui, vice president, policy, Nonprofit New York
• Wesner Joseph Pierre, chief executive officer, Partnership with Children
• Dr. Damyn Kelly, president and chief executive officer, Lutheran Social Services of New York
• Eichakeem McClay, executive vice president, United Way of New York City
• Jonathan McLean, chief executive officer, Center for Alternative Sentencing & Employment Services
• Annie Minguez, vice president, government and community relations, Good Shepherd Services
• Frankie Miranda, president and chief executive officer, Hispanic Federation, Inc.
• Peter Quinones, chief of government contracts and compliance, New York Edge, Inc.
• Dr. Jocelynne Rainey, president and chief executive officer, Brooklyn Organization
• Mohammad Razvi, chief executive officer and co-founder, Council of Peoples Organization
• Avra Rice, president and chief executive officer, New York Urban League
• Ronald E. Richter, chief executive officer, Jewish Child Care Association
• Raysa Rodriguez, chief program and policy director, Federation of Protestant Welfare Agencies
• Joseph Rosenberg, executive director, Catholic Community Relations Council of New York
• Ronnie Silverman Messerschmidt, chief program development officer, HELP USA
• Marlon Williams, vice president, collaboration and policy, Philanthropy New York
• Rachel Watts, executive director, ArtsConnection

Today’s announcement builds on the Adams administration’s continued efforts to support, make significant investments in, and enact polices to support the nonprofit sector in New York City. Last month, the Adams administration announced a $741 million investment for an estimated 80,000 human services workers employed by non-profit organizations with a city contract as part of a new cost-of-living adjustment. The human services workforce — which is overwhelmingly female at 66 percent and 46 percent women of color — remains on the frontlines of the most pressing issues facing the city as they deliver vital services across housing, food access, health services, and asylum seeker services, among other areas. To date, the Adams administration has invested over $1.4 billion towards wage enhancements for the human services sector.

The Adams administration worked with MOCS on the Clear the Backlog initiative, which has already unlocked over $6 billion in funds that were long overdue, allowing nonprofits to get paid for their vital services. Together with New York City Comptroller Brad Lander, MOCS, and the Mayor’s Office of Nonprofit Services, Mayor Adams announced a new reform for discretionary contracts that will eliminate red tape and make it easier for nonprofits that contract with the city to get paid on time. The innovative reform eliminates a total of nine months of discretionary, contracting process time for nonprofits every year, beginning in the out-years for applicable contracts.

“I am truly honored to serve as an inaugural co-chair for the Nonprofit Advisory Council with the Mayor’s Office for Nonprofit Services,” said Dr. Darlene Williams, president and chief executive officer, Union Settlement. “As leaders dedicated to serving our community, the advisory council provides an invaluable opportunity to foster innovation, address the diverse needs of our city's residents, and the integral role of nonprofit organizations. It is a privilege to stand alongside such dedicated community partners and organizations, united in our shared mission to enhance the well-being of all New Yorkers.”

“For a decade, the nonprofit sector — which employs over 125,000 people — has advocated for a mayoral office empowered to work alongside us in partnership, enhancing communication and collaboration for the betterment of the communities we serve,” said Fredrick Shack, chief executive officer, Urban Pathways. “We applaud Mayor Adams and his team for establishing the Mayor’s Office for Nonprofit Services and creating this advisory council, comprised of nonprofit leaders from diverse service areas. This mandate to improve services to New Yorkers through our partnership is a significant step forward, and we look forward to the positive impact this collaboration will have on our city.”

“New York City’s incredible nonprofits are essential to building a stronger, more prosperous future for all of our neighbors and communities,” said Dr. Jocelynne Rainey, president and chief executive officer, Brooklyn Org. “To help nonprofits reach their full potential, we must do more to help connect them with the people, ideas, and resources they need to grow. I am so grateful for the opportunity to serve on this council and to help empower our city’s dynamic and creative nonprofits.”

“I am honored to be a part of this advisory council as it is a new avenue to contribute to the dialogue shaping the future of our city's vital nonprofit sector,” said Eichakeem McClary, executive vice president, United Way of New York City. “As we embark on this historic journey with the Mayor's Office for Nonprofit Services, we will continue to advocate for outcomes that enable community-based organizations to remove barriers and dismantle inequities for marginalized communities in New York.” 

Speaker Adams, and NYC Council Release FY 25 Preliminary Budget Response, Outlining Budget to Restore and Fulfill Key Investments in 3-K and Schools, Proven Solutions to Mental Health and Recidivism, and Housing

 

Council plan identifies $6.15 billion in newly available resources to reverse destabilizing budget decisions, address underbudgeted liabilities, protect against fiscal cliff, and boost reserves

New York City Council Speaker Adrienne Adams, Finance Committee Chair Justin Brannan, Deputy Speaker Diana Ayala, and Council Members unveiled the Council’s Fiscal Year 2025 Preliminary Budget Response that proposes a balanced and responsible budget to provide stability for the city. The response identifies $6.15 billion in newly available resources through Fiscal Year 2025 to help reverse recent budget decisions that have been destabilizing, address underbudgeting in the Mayor’s Preliminary Budget, account for expiring federal stimulus funds, and strengthen the city’s budget reserves and surplus.

The Council’s budget outlines $1.63 billion for the restoration of funding for 3-K, public schools, and support for students, as well as cultural institutions, libraries (including 7-day service), parks, sanitation services, and other key services cut by the Administration. It targets investments of $1.32 billion in capital funding for affordable housing, over $225 million for mental health services, nearly $60 million for programs that reduce recidivism, and other programs that address major challenges in the city but have been insufficiently funded. At the same time, the Council budget sets aside nearly half ($3 billion) of the additional resources to protect against risks from underbudgeted costs in the mayor’s proposed budget and dedicates $500 million to the Rainy Day Fund reserves, while leaving an over $1 billion surplus to address other fiscal issues.

The full Fiscal Year 2025 Preliminary Budget Response is available here.

“The City has the resources to protect essential investments into New Yorkers while safeguarding our fiscal health, and prioritizing both goals is the path to a safer, healthier, and more stable city,” said Speaker Adrienne Adams. “The Council’s FY25 Preliminary Budget Response presents a balanced, thoughtful approach that responsibly prioritizes the greatest needs of our city and constituents. The Council’s proposed investments in housing, 3K, Pre-K, and our schools, proven mental health solutions, programs to reduce recidivism, cultural institutions, libraries, and other vital services are the pathway to improving our city’s stability. Throughout this year’s budget process and beyond, the Council will continue to champion the needs of all New Yorkers to chart a path towards stability, health, and success for our city.”

“Against all odds, New York City’s post-COVID economy has proven to be durable and resilient,” said Council Member Justin Brannan, Chair of the Committee on Finance. “We maintain that the Administration’s blunt cuts were never necessary in the first place, and we will be fighting for and expecting to see full restorations across the board from 3K to CUNY, our libraries, cultural organizations, and everything in between. Hardworking New Yorkers deserve nothing less. The priorities outlined in our budget response today were born from weeks of preliminary oversight hearings, hours upon hours of budget team meetings, and in consultation with all 51 members. Everything in this budget response is something the Council believes is worth fighting for.”

The balanced approach in the Council’s Preliminary Budget Response recognizes the risks to the budget from expiring federal stimulus dollars and the City remaining in the nascent stages of economic recovery. The $6.15 billion in available resources identified allows for both the reversal of the Administration’s most harmful cuts to key programs and services, while setting aside significant resources to offset impending risks. The source of these additional funds is the $3.35 billion in greater tax revenues estimated by the Council for Fiscal Years 2024 and 2025 than recognized by the Mayor’s Office of Management and Budget, combined with $2.25 billion in potential underspending and $550 million of in-year reserves.

The proposals in the Council’s budget response reflect the City’s needs and New Yorkers’ priorities. The response calls for investment in specific programs and priorities that will help ensure that the city continues to support all New Yorkers. These include:

• Laying A Strong Foundation of Housing for New Yorkers and Families – $1.32 Billion in Capital Funding and $56.7 Million in Expense Funding
• Prioritizing Continued Access to Education and Learning – $483.1 Million in Capital Funding and $860 Million in Expense Funding
• Advancing A Healthy and Safe City – $4.2 Million in Capital Funding and $125.8 Million in Expense Funding
• Enhancing Institutional Pillars of NYC – $200 Million in Capital Funding and $222.7 Million in Expense Funding
• Strengthening Opportunity and Services – $451.5 Million in Capital Funding and $361.7 Million in Expense Funding

Laying A Strong Foundation of Housing for New Yorkers and Families – Capital Funding: $1.32 Billion and Expense Funding: $56.7 Million

• Investing in Affordable Housing – The Council calls upon the Administration to increase capital spending on affordable housing by $3.66 billion over the next five years, including a $732 million annual increase in capital funding for affordable housing and homeownership.
• Prioritizing Maintenance Repairs for NYCHA – The Council also urges the Administration to increase capital commitments for NYCHA by $584 million in FY25 to address critical maintenance repairs.

Prioritizing Continued Access to Education and Learning – Capital Funding: $483.1 Million and Expense Funding: $860 Million

• Replacing Expiring Federal Stimulus Funds – The Council calls for approximately $550 million in city funding to replace expiring federal COVID stimulus funds that have supported vital school and student support programs, like community schools, pre-school special education, restorative justice, mental health services, and support for students living in temporary housing.
• Supporting Early Childhood Education – The Council calls for $361 million for early childhood education, including $170 million to restore cuts to 3-K, $96 million to replace expiring federal stimulus funds for preschool special education, $60 million to provide additional extended day, extended year seats, $25 million for Promise NYC, and $10 million in new funding for 3-K marketing and outreach.
• Restoring School Food Programs– The Council calls for an additional $60 million for the school food program, including $17 million to restore cafeteria staff headcounts to pre-pandemic levels and at least $3 million to fund nutrition committees in schools.
• Placing a Certified Arts Teacher in Every School – The Council calls on the Administration to enhance and baseline the budget for arts education by $38 million, which would allow for a certified arts teacher to be placed in every remaining school that currently does not have one.
• Supporting Learning to Work – The Council calls for $33 million in funding to support the Learning to Work program and continue reengaging older youth in completing their high school education and matching them with workforce opportunities. 
• Restoring CUNY Funding – The Council calls on the Administration to restore $40 million in cuts to CUNY’s budget that were initiated in the Mayor’s November and Preliminary Plans. The Council also calls for over $25 million in restorations and enhancements to several CUNY related programs, like CUNY Reconnect, ACE and ASAP.

Advancing a Healthy and Safe City – Capital Funding: $4.2 Million and Expense Funding: $125.8 Million

• Restoring and Enhancing Recidivism Reduction Programs – The Council calls on the Administration to reverse cuts to the Mayor’s Office of Criminal Justice (MOCJ) by restoring $27.8 million in Fiscal 2025 for Alternatives to Incarceration ($6.7M), supervised release ($13M) and re-entry ($8M) programming that is essential to public safety and reducing recidivism. Additionally, the Council calls on the Administration to provide nearly $9M in additional funding for mental health courts and diversion programs for District Attorneys, along with an additional $7 million to increase the Forensic Assertive Community Treatment (FACT) team budget by nearly 50 percent.
• Investing in Housing for Justice Involved Individuals – The Council calls on the Administration to allocate an additional $6.4 million for Justice Involved Supportive Housing to fulfill the City’s previous commitment to provide 500 supportive housing units for individuals leaving Rikers.
• Expanding Victim Services – The Council calls for a baselined $7.2 million to triple the current funding for trauma recovery centers that support underserved victims of crime and help stop cycles of violence. The Council also urges the Administration to increase baseline funding for housing stability microgrants for domestic violence impacted individuals with an additional $4.8 million, bringing the baseline funding up to $6 million starting in Fiscal 2025.
• Investing in Postpartum Care Services – The Council calls on the Administration to allocate $5 million to each H+H hospital for a maternal health-focused psychologist, an additional $5 million in the Nurse Family Partnership program, and $500,000 in the Fiscal 2025 Budget to enhance the Maternal and Child Health Services initiative and increase the scope of services.

Enhancing Institutional Pillars of NYC – Capital Funding: $200 Million and Expense Funding: $222.7 Million

• Restoring and Baselining Cultural Funding – The Council calls $55.5 million to restore and baseline the $40 million allocated in FY24 for the Department of Cultural Affairs and restore the $15.5M that was cut in the November and January PEGs. 
• Restoring Funding and Baselining Library Funding – The Council proposes to restore 7-day service at the city’s library systems by allocating an additional $58.3 million which would cover the $22.1 million November cut to their budgets, FY24’s one-time funding of $20.5 million and the Council’s discretionary funding subsidy of $15.7 million.  
• Restoring the Parks Dept. Headcount and Services – As part of the November and Preliminary Plan PEGs, several critical Parks Department neighborhood services were reduced alongside their budgeted headcount. The Council calls for $59.7 million to fully restore these cuts and provide additional programming to advance the health and safety of New Yorkers, such as access to swim lessons and programs.
• Restoring Sanitation and Community Composting Cuts – The Council calls on the Administration to provide baseline funding of $22 million annually to maintain the same level of litter basket service in each district throughout the five boroughs. Additionally, the Council urges the Administration to support community composting by fully restoring and baselining $7.1 million for these programs and extending GrowNYC’s contract.

Strengthening Opportunity and Services – Capital Funding: $451.5 Million and Expense Funding: $361.7 Million

• Restoring Funding for Shelter and Services for Homeless Youth – The Council calls for the Administration to fully restore and baseline $36.2 million to reinstate homeless shelter providers’ contract levels from cuts in the Fiscal Year 2024 budget. Additionally, the City should invest in restoring and enhancing services for runaway and homeless youth with an investment of more than $14 million for housing and peer navigators, as well as shelter beds.
• Supporting Older Adult Services – The Council calls on the Administration to restore the nearly $16 million in PEGs for older adult centers. Additionally, the Council’s Response invests in increasing the baseline funding by $12.7 million annually for home delivered meals.
• Restoring and Investing in IDNYC and Language Access Services – The Council calls on the City to restore the PEG savings for the IDNYC program that were included in the Fiscal 2023 Executive Plan for the IDNYC program, which totaled $3.4 million in Fiscal 2025 and $5.1 million in Fiscal 2026 and in the outyears. Additionally, the Council urges the Administration to restore and baseline $8.7 million for language services, starting in Fiscal 2025, and expanding these services. And the Council calls on the Administration to restore funding and allocate an additional $50 million for immigration legal services to enhance the program to meet the growing needs for these services.
• Investing in Services for Low-Income New Yorkers – The Council calls for an additional $54.2 million to expand eligibility for Fair Fares to City residents with incomes up to 200 percent of FPL to provide affordable transit for more low-income individuals. Additionally, the Council urges the Administration to provide $5 million in new funding to support anti-poverty guaranteed income programs, and an additional $10 million to restore and baseline DYCD-funded adult literacy programs in Fiscal 2025.

Two Individuals Indicted for Distributing Heroin and Fentanyl that Caused the Death of Transgender Activist

 

Cecilia Gentili Died on February 6 After Using Lethal Drugs Sold by the Defendants

At the federal courthouse in Brooklyn, a four-count indictment was unsealed charging Michael Kuilan and Antonio Venti with distributing the heroin and fentanyl that caused the death of New York transgender activist, Cecilia Gentili.  Kuilan is also charged with unlawful gun possession.  Kuilan and Venti are in custody and are scheduled to be arraigned before United States Magistrate Judge Lois Bloom.

Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration (DEA) and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the charges.

“Cecilia Gentili, a prominent activist and leader of the New York transgender community was tragically poisoned in her Brooklyn home from fentanyl-laced heroin.  Today, the alleged perpetrators who sold the deadly dose of drugs to Gentili have been arrested,” stated United States Attorney Peace.  “Fentanyl is a public health crisis.  Our Office will spare no effort in the pursuit of justice for the many New Yorkers who have lost loved ones due to this lethal drug.”

“This indictment delivers a strong message to anyone who profits from poisoning our communities with illicit drugs: There are dedicated investigators, across multiple agencies, working tirelessly to disrupt your shameful industry by pinpointing the source of these unlawful substances,” stated NYPD Commissioner Caban. “It is imperative that we continue to hold distributors accountable for their callous actions. I commend the NYPD’s partners at the DEA and the office of the U.S. Attorney for the Eastern District of New York for their ongoing commitment to this critical mission.”

“These arrests result in the charges brought against the defendants for causing the death of transgender rights activist Cecilia Gentile. Drug poisonings take too many lives too soon from communities nationwide and DEA is committed to bringing to justice those responsible.  Fentanyl is a deadly drug that dealers mix into their product and has accounted for 70% of drug related deaths nationwide.  The more people that know about the dangers of today’s drug landscape, the more lives can be saved” stated Special Agent in Charge Frank Tarentino of the Drug Enforcement Administration - New York Division “The death of Ms. Gentile is a reminder of the dangers that illicit drugs have on all communities, including the LGBTQ+ community.  I applaud the hard work by the DEA New York Division, NYPD Brooklyn South Narcotics and the U.S. Attorney’s Office Eastern District of New York.”

According to the indictment and court documents, on February 6, 2024, following a 911 call by Gentili’s partner, NYPD officers reported to Gentili’s home in Brooklyn, New York and found Gentili dead in her bedroom.  Gentili died due to the combined effect of fentanyl, heroin, xylazine, and cocaine.  Text messages, cell site data, and other evidence revealed that Venti sold the fentanyl and heroin mixture to Gentili on February 5, 2024, and Kuilan supplied Venti with those lethal narcotics.

In addition, law enforcement searched an apartment in Williamsburg, Brooklyn belonging to Kuilan and found hundreds of baggies of fentanyl, a handgun, and ammunition.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If found guilty, they face up to life in prison.

Marketers and Physicians in Five States Agree to Pay Over $1.5 Million to Settle Laboratory Kickback Allegations

 

Two laboratory marketers, George Carralejo of Yorba Linda, California, and Michael Jeresaty of Daniel Island, South Carolina and their marketing companies, as well as five physicians, Dr. Paul Bierig of Plano, Texas, Dr. Mohd Azfar Malik of St. Louis, Missouri, Dr. Robert Ain of Wichita, Kansas and Drs. Barry Feinberg and Rachel Feinberg also of St. Louis, and certain affiliated entities have agreed to pay a total of $1,501,162 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Justice Department’s investigations of other participants in the alleged schemes.

“Kickbacks can harm taxpayer-funded healthcare programs, distort the market for healthcare services and improperly influence healthcare providers’ medical decisions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those involved in illegal kickback schemes, including marketers, doctors and medical practices.”

The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded healthcare programs. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act.

The Marketer Settlements

George Carralejo and his marketing company, OC Genetic Consultants Inc. agreed to pay $400,000 to resolve allegations that they entered into two illegal schemes to pay kickbacks to doctors for their laboratory referrals. First, from August 2020 to September 2021, Carralejo and his company allegedly conspired with a South Carolina marketer, Ralston Health Group Inc. (Ralston), to pay kickbacks disguised as consulting and medical director fees to a doctor in Houston to induce him to order laboratory testing from RDx Bioscience Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey, and NEXT Bio-Research Services LLC, doing business as NEXT Molecular Analytics (Next Molecular), a clinical laboratory in Chester, Virginia. Carralejo’s company and Ralston allegedly profited from the kickback scheme in the form of commissions from RDx and Next Molecular based on the Houston doctor’s referrals.

Second, from October 2021 to October 2022, Carralejo and his company allegedly conspired with a Texas marketer, BeauMed Consultants LLC, to pay kickbacks disguised as consulting fees to a doctor in Little Rock, Arkansas, to induce her to order laboratory tests from RDx. Carralejo allegedly provided commission numbers to the Arkansas physician or her staff, to allow for the preparation of false consulting invoices disguising that the Texas marketer’s payments were designed to reimburse for referrals rather than consulting work and were calculated based on the amount generated by those referrals. Carralejo allegedly tried to hide his role in the fraud scheme by deleting related text messages on the day he and the Texas marketer received subpoenas from the Justice Department.

In addition, Michael Jeresaty and his company, Ralston, agreed to pay $320,000 for allegedly paying kickbacks to the Houston physician referenced above and to a South Carolina doctor who previously settled related allegations involving referrals to RDx. The Justice Department previously settled with RDx allegations relating to Carralejo’s and Jeresaty’s kickback schemes.

The Physician Settlements

The settlements announced today also resolve allegations that five physicians and related entities received kickbacks in violation of the Anti-Kickback Statute from laboratory marketers’ purported management service organizations (MSOs) in return for making referrals to RDx and other laboratories.

• Paul Bierig: Dr. Bierig agreed to pay $120,634 to resolve allegations that from October 2016 to June 2022, he and his medical practice, Paul C. Bierig M.D., P.A., received thousands of dollars in payments from Avior Group LLC and other purported MSOs, including Infinity One Health Group MSO LLC and Infinity Three Health Group MSO LLC, in return for ordering laboratory tests from RDx and InHealth Diagnostic LLC doing business as RealLab (InHealth), a clinical laboratory in Dallas, Texas.
• Mohd Azfar Malik: Dr. Malik agreed to pay $217,430 to resolve allegations that from January 2019 to March 2020, he caused his medical practice, Psych Care Consultants LLC (PCC), to receive thousands of dollars in payments from Alari Group LLC (Alari) in return for ordering laboratory tests from Genesis Reference Laboratories LLC (Genesis), a clinical laboratory in Orlando, Florida, and InHealth. Genesis and InHealth allegedly paid commissions to an independent contractor recruiter, Corum Group LLC (Corum), which used Alari to pay kickbacks to Dr. Malik and other healthcare providers in return for their referrals. The Justice Department previously settled related allegations with Genesis and PCC.
• Robert Ain and Comprehensive Pain Treatment LLC: Dr. Ain and his pain management practice agreed to pay $100,632 to resolve allegations that from May 2017 to February 2019, they received thousands of dollars in payments from a purported MSO named Ruthenium Management LLC in return for ordering laboratory tests from Landmark Diagnostics LLC (Landmark), a clinical laboratory in Houston.
• Barry Feinberg, Dr. Rachel Feinberg and BIF Family Trust: Drs. Feinberg and Feinberg and a family trust agreed to pay $342,466 to resolve allegations that from January 2016 to December 2018, they received thousands of dollars in payments from purported MSOs named ESA Toxicology LLC and Beachwood Services LLC in return for ordering laboratory tests from Landmark.

“The kickbacks resulted in the submission of fraudulent laboratory testing claims to Medicare,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Clinical laboratories, marketing companies and health care practitioners are on notice that kickback arrangements in any form are not acceptable. No matter how they are named – as a ‘consulting fee,’ ‘commission’ or otherwise – or whether they are paid through intermediaries, kickbacks undermine the integrity of medical decision making and have no place in our healthcare system. Today’s agreement is yet another example of my office’s commitment to enforcing the False Claims Act and the Anti-Kickback Statute and protecting Medicare from shelling out taxpayer money for reimbursements tainted by improper kickbacks.”

“Violations of the Anti-Kickback Statute can induce medically unnecessary testing and inappropriately steer medical tests to providers who may not return timely or quality results,” said Special Agent in Charge Naomi D. Gruchacz of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to seek resolutions and effect change to preserve the integrity of the federal health care system.”

The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG. Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey handled the settlements. The United States has recovered over $47 million relating to conduct involving MSO kickbacks to healthcare providers, including False Claims Act settlements with 46 physicians.

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).

The claims resolved by the settlements are allegations only. There has been no determination of liability.

New Audit Reveals Comptroller Lander’s Wardrobe Choices Need “Serious Reform”

 

Comptroller Staff Proposes Significant Recommendations & Style Tips to Improve Boss’ Look

“Our audit finds we will likely require emergency procurement to revamp the Comptroller’s fit,” an anonymous source in the Comptroller’s office said. “This is an all-hands-on-deck moment.”

The audit included a review of Comptroller Lander’s extensive fedora collection and found serious room for felt tightening.

“Hats off to the auditors getting a head start on this investigation,” said Comptroller Brad Lander. “Much like my dad jokes, they’ll find my hats collection on top of the latest trends, no cap.”

Van Cortlandt Park Alliance - Lots happening in Van Cortlandt Park

 

Kids Programs - RSVP NOW! 

Garden Crew Afterschool Program for 6th to 12th graders, starting Wednesday, May 1. FREE!

Super Seedlings a drop-in gardening program for kids ages 3 to 7 and their caregivers starting Saturday, May 4. FREE!

Growing Gardeners is a 6-week drop-off program for 2nd to 5th graders, starting Saturday, May 4. Low-cost!

  

Mark Your Calendar!

Saturday, May 4 - Noon to 4pm

It’s Pinkster time! Our second annual Pinkster Festival is a celebration of African culture that dates back to the 1700s. The Pinkster Players perform throughout the day to share the unique history of this important but little-known holiday. 

Live Music • African Food Vendor • Crafts • Storytelling

Presented in partnership with Van Cortlandt House Museum. 

Van Cortlandt House Museum Grounds 

Support Our Work in Van Cortlandt Park

Springtime Shindig!

Thursday, May 16, 2024, 6 to 9pm

Van Cortlandt Golf House Terrace

We hope you can join us for our annual spring fundraiser, benefiting the park and making it possible to offer FREE programs throughout the year!

Cocktails • Lite Bites • Dessert •  Music • Picturesque Setting • Raffle

Tickets, Journal Ads and Sponsorships Available!

Make a Donation

The park is really big. Our staff is really small. Only with your help can we grow our capacity, hire more staff, and take on projects to improve Van Cortlandt Park… for YOU!  Please consider a gift to Van Cortlandt Park Alliance today.

Donate!

VCPA Merch Shop!

Show your love for Van Cortlandt Park while supporting the Alliance!

Shop Now!

 

Become a Member

Members get VCPA merch and invitations to member only hikes while supporting their favorite park!

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Our Contact Information
Van Cortlandt Park Alliance
80 Van Cortlandt Park South, Ste. E1
Bronx, NY 10463
718-601-1460
http://vancortlandt.org