Thursday, April 23, 2020

Attorney General James Statement on Protecting Nursing Home Residents


  Attorney General Letitia James released the following statement in response to efforts to protect nursing home residents in New York amidst the coronavirus disease (COVID-19) crisis:

“We recognize that the most vulnerable New Yorkers are continuing to suffer through this crisis at nursing homes across the state. While our Medicaid Fraud Control Unit continues to investigate allegations of abuse and neglect in the system, we launched a hotline where residents, families, or members of the public can share complaints about nursing homes that have not provided required communications with families about COVID-19 diagnoses or fatalities. The hotline will also accept complaints about nursing home abuse and neglect, including failure to follow rules to keep residents safe. Every nursing home should be provided with adequate PPE and testing, and enhanced infection control protocols must be implemented to protect residents. I am grateful to the workers in our nursing homes who continue to serve and support our vulnerable residents. These workers deserve our respect and must also be tested and protected during this time. My office will continue to work hard to protect residents of nursing homes and make sure their rights are preserved during this crisis and beyond.”
Individuals can file confidential complaints about nursing homes to the OAG online or by calling 833-249-8499.

Statement from New York City Comptroller Scott M. Stringer on Budgetary Decisions Impacting Nonprofit Organizations


 “I am deeply dismayed by the City’s decision to not reimburse nonprofit providers for certain discretionary contract expenses after March 22. It is outrageous to squeeze minimal budgetary savings from nonprofits that are already struggling to keep their doors open and serve the needs of their communities. What’s worse, this misguided decision was only relayed to nonprofits yesterday — meaning that many nonprofits are now saddled with a month of expenses for services already rendered, but will not get the reimbursement they were promised. Moreover, the scopes of work deemed essential and therefore eligible for reimbursement have yet to be defined, leaving nonprofits further in the dark. While the City has to make tough budgetary decisions in this crisis, they have to be made in a responsible and clear way that does not jeopardize the ability of nonprofit organizations to continue to serve New Yorkers.  We cannot nickel and dime the very same nonprofits we will rely on to support the most vulnerable New Yorkers as we come out of this pandemic.”

Governor Cuomo and Mayor Mike Bloomberg Launch Nation-Leading COVID-19 Contact Tracing Program to Control Infection Rate


  Today is day 53. It's important to get a sense of bearings. Fifty-three days since we closed down New York. Fifty-three days since this nightmare happened. Such a disorienting period. Fifty-three days. Is it a long time or is it a short time? Well, if you look back compared to what other generations have gone through or other periods of crisis in this country, 53 days is nothing. We've dealt with really intense, terrible situations for a long time in the past. It feels very long and it's very stressful. That's across the board.

You have families that haven't had a paycheck come in in a couple of months, meanwhile the bills keep coming in. That's tremendous economic anxiety and insecurity. By the way, it's exactly right. When do I go back to work? When do I get another paycheck? That's a pressure that people feel in the household. Even the good part of it.

Relatively, we're in a relatively good place. In downstate New York, the curve is on the descent. The question is now how long is that descent. Is it a sudden drop off? Is it one week, two weeks, three weeks, six weeks? We don't know. Better to be going down than to be going up. Let's keep that in mind. We are going down. How fast, we'll find out, but we're in a better place.

Hospitalizations numbers are coming down. Intubations are coming down. Number of new people coming into the hospital every day is still troublingly high, but better than it was, still problematic. Number of lives lost is still breathtakingly painful and the worst news that I have to deliver everyday and the worst news that I've ever had to deal with as Governor of New York. At least it's not going up anymore and it seems to be on a gentle decline.

Make no mistake, this is a profound moment in history. Our actions are going to shape our future and you're not going to have to wait for a 10-year analysis, a retrospective, to find out how our actions affected our future. What we do today, you will see the results in three, four, or five days. You tell me what the people of this state and this country do today, you will see the results in the number of hospitalizations in just a few days. We get reckless today, there are a lot of contacts today, unprotected contacts today, you'll see that hospitalization go up three, four, five days from today. It is that simple. and it's that pressing, that every decision we make is going to affect how we come out of this, how fast we come out of this. So, in this moment, more than any other, truth, not what you would like to see, what you'd hope to see, not emotions, truth and facts, truth and facts. That's how we operate here in the State of New York. Truth and facts. Give me the truth and give me the facts. And that has to guide our actions. Period.
We had a productive meeting at the White House yesterday. Productive visit, everybody says productive visit.

The main issue was testing, which I'll talk more about in a second, but we also talked about state funding. All the governors are united, Democrat and Republican. National Governors Association, every governor is saying the same thing. We have to have state funding. The states have a role basically in a deficit situation, and we need funding from Washington. They've passed bills that help a lot of Americans, that's great. Help small businesses, that's great.

But you have to help state governments because state governments fund the people that the federal government can't fund. State and local governments, we're funding police, we're funding fire, we're funding teachers, we're funding schools. You can't just ignore them. And when you don't fund the states, then you're saying to the states well, you have to fund them, and the states have already said in one united choir, we can't. We can't. So we talked to the president about that.

The president gets it. The president says he's going to work very hard in the next piece of legislation. But, you know, I've been in Washington. I was there for eight years. The congress has to insist that this is in the legislation. And yes, they passed funding for small business and funding for testing, and that's good. That is a good thing, i's not a bad thing. But it's not enough either. And they don't come back every day, the Congress. It's hard to get them to come back. And this was not the time for baby steps. This is when you should be taking bold action. The action is proportionate to the issue. And you haven't had a problem that's any bigger than this that any of the senators or Congress people have ever dealt with. Well, then your action should be proportionate and responsive to the problem. And it wasn't.

The President also agreed, which is a big deal for New York, to waive what's called the state match for FEMA. Normally a state has to pay 25 percent of the FEMA cost. That would be a cruel irony for New York and adding insult to injury. New York had the highest number of coronavirus cases in the country, therefore our cost of FEMA was the highest cost in the nation. Therefore, New York should pay the highest amount. How ironically cruel would that be? You're going to penalize us for having the highest number of coronavirus cases in the country. And at the same time that Congress passed a piece of legislation not even funding the states. So, the President agreed to waive that. That's a very big deal. That's hundreds of millions of the dollars to the State of New York.

But the big issue was testing. We've been talking about testing, tracing, and then isolating. And that will be the key going forward. That's how you're educated and have some data points as you're working your way through this reopening calibration, right? How does it work? You test the person, if the person winds up positive, then you trace the person's contacts. Contact tracing. You have to start with a large number of tests, and we set as a goal yesterday to double the number of state tests, to go from 20,000 on average to 40,000. That is just about the maximum capacity of all the laboratory machines in the state.
We have private labs, about 300 of them that we regulate, they have purchased the machines over time. These are expensive machines. 

But once you do all those tests, every positive you have to go back and trace. And the tracing is a very big, big deal. Once you trace, and you find more positives, then you isolate the positives, they're under quarantine, they can't go out, they can't infect anybody else. This entire operation has never been done before. So, it's intimidating. You've never heard the words, "testing, tracing, isolate," before. No one has. We've just never done this. There are a few textbooks that spoke about it, but we've never done it. And we've never done anywhere near this scale. So, it is an intimidating exercise. But I say so what? Who cares that you've never done it. That's really irrelevant. It's what we have to do now. So, figure out how to do it! Well, we have to put together a tracing army. Okay. We've put together armies before. Never a tracing army. But we can put together people, we can organize, we can train, and we can do it. And yes, it's a big deal, but it's what we have to do and it's what we will do.

We want to operate on a tri-state basis. I've spoken to Governor Murphy in New Jersey who's doing a great job, and Governor Lamont in Connecticut is doing a great job. They've been very great neighbors to New York. It's best to do this tracing on a tri-state area. Why? Because that's how our society works. The virus doesn't stop at jurisdictional boundaries. "Oh, I'm at the town of Brookhaven, I stop here." No - the virus doesn't say that. The virus just spreads. And you look at the spread of the virus, it is in a metropolitan area. So, we'll work together. This will be a massive undertaking.

Good news is, Mayor Michael Bloomberg has volunteered to help us develop and implement the program. Mayor Bloomberg was Mayor of New York City, as you know - three terms. As governor, I worked with Mayor Bloomberg. He's developed an organization where he works with mayors across the world, literally, providing them guidance. He has tremendous insight both governmentally and private sector business perspective. Remember, his company, Bloomberg, went through the China close down, open up, they went through the European close down, open up. So, he's had quite a bit of experience in this area. It's a very big undertaking, and we thank him very much for taking it on, because it is going to require a lot of attention, a lot of insight, a lot of experience, and a lot of resources.

We're also going to be partnering with Johns Hopkins and Vital Strategies in putting together that tracing operation. It will be coordinated tri-state and downstate. Why downstate? Because, again, downstate operates as one area. About 25 percent, 30 percent of the work force that goes into New York City comes from outside of New York City. I have a house in Westchester. I work in New York City. Who's supposed to trace me? Westchester or New York City? If I turn up positive, yeah, my residence is in Westchester County, but I work in New York City and I would have contacted many more people in New York City than I would in Westchester.

Because if I work in New York City, that's where I'm contacting people. I live in Suffolk, but I work in New York City. I'm a police officer who has a house in Rockland, but I work in New York City. I'm a firefighter, who lives in Rockland or Orange, but I work in New York City. I live in New Jersey, but I work in the city. I live in the city, but I work in Connecticut. Right? So all those interconnections. If you're going to do these tracing operations, you can't do it within just your own county. Because you'll quickly run into people who are cross jurisdictional. So understand that going in. Blur the governmental jurisdictions because they don't really make sense. Put everybody together, work together. Harder done than said, but 100 percent right, there's no doubt about that.

We're going to take the initial tracers that people have now. The state has about 225 today. Rockland has 40, Westchester 50, Nassau 60, New York City 200. They are going to work together. Mayor Bloomberg is going to start with that core, but we have to build on that because we'll literally need thousands. SUNY and CUNY have 35,000 medical students that we're going to draw from, but we have to put together a significant operation because the numbers get very big very quickly here.

Last point, my phone is ringing, I'm talking to many local officials. They feel political pressure to open. I understand. I said yesterday that we're going to make decisions based on a regional basis, because just as the nation has different states and different positions, New York State has different regions and different positions. North country is one set of facts, facts. This is about truth and facts. North country has one set of facts, Western New York has a different set of facts, Capitol District has a different set of facts. Make decisions based on the facts, and the facts are different in down State New York in many areas. Also make them on the facts and realize the consequence of what you could do opening one region, but not other regions and how you could flood that one region and give them a host of problems they never anticipated. But make the decision on the facts. I get it, don't make the decision based on political pressure. I'm not going to do that. I'm not going to do that.

So, I've said to them look, if you look at any of the facts, the 1918 flu, they're talking about it now. There can be waves to this, right? You walk out into the ocean, you get hit with that first wave, oh great, I'm done. The wave hit me, I'm still standing. Beware, because there can be a second wave, or there could be a third wave. So, don't be cocky just because you got hit by a wave and it didn't knock you off your feet. There can be a second wave and if you're not ready for the second wave, that's the wave that's going to knock you down, because you're not ready for it. So, that's what I'm worried about.

Also, to the local officials and local politicians, I have no problem with them blaming me. It's a very simple answer. I say to everyone whenever they say I agree with you, it's the governor. Because, by the way, it is the governor. It is. These are state laws that are in effect, the local officials can't do anything about them anyway because they can't contradict a state law. It's true, so the local official can say, "It's the Governor. Blame him." 

The state laws govern. I get the local political pressure. Blame the Governor, it's the truth and the local laws can't counteract state laws anyway. To this political pressure. This is a quote that I think people should take to heart:
"When the freedom they wished for most was freedom from responsibility, then they ceased to be free."

Edith Hamilton originally, Edward Gibbon in the History of the Decline and Fall of the Roman Empire. "When the freedom they wished for most was freedom from responsibility, then they ceased to be free." We have a responsibility today to ourselves and to others. There is a codependency and a mutuality among people in society that is more clear and distinct than we have ever seen it. You sneeze, I get sick. You sneeze, I get sick. It is that close a connection.

You have a responsibility to act prudently vis-a-vie other people. Because you're not just putting your own life at risk. You're risking my life and my children's life and my parent's life and you don't have that right. You have to act responsibly and to advocate for total irresponsibility, let's all be irresponsible, no. Not here, not now.


Wednesday, April 22, 2020

TEST AND TRACE: MAYOR DE BLASIO OUTLINES PLAN TO DEFEAT COVID-19 IN NEW YORK CITY


Builds on City’s commitment to drastically expand testing capacity in hardest hit neighborhoods

  To contain and mitigate the spread of COVID-19, Mayor de Blasio today announced a comprehensive “Test and Trace” strategy to reduce COVID-19 infections citywide.

“To defeat this virus, we need to test and trace every last case,” said Mayor Bill de Blasio. “That’s why we are drastically expanding our testing capacity and exercising every last option to get the quantity of testing we need.”

Test and Trace

To test as many people as possible, the City will set up sites in communities across the five boroughs to collect specimens and test them for COVID-19. These sites will operate outside of traditional clinic and hospital settings to minimize the burden on the healthcare system.

As of Monday, April 20th, the City has opened five, walk-in community testing sites across the city through a partnership with NYC Health+ Hospitals. On Friday, the City will open three additional Health+ Hospital sites in the Fort Greene neighborhood of Brooklynthe Mott Haven neighborhood in the Bronx, and the Lower East Side of Manhattan.

To trace those who test positive for COVID-19, the City will work with each person who has COVID-19 to connect them immediately to care and help them safely isolate at home, a hotel, or a hospital. The City will also ensure their close contacts are rapidly traced, assessed, and quarantined at home or a hotel, as necessary. Additional contact tracers will be hired or contracted to substantially expand the City’s existing pool of 200 disease detectives and contact tracers.

The City will provide meals, clean clothes, and medical refills for anyone who is isolated and quarantined who may require assistance. Using tele-medicine, the City will perform remote medical checks on those in isolation and quarantined and evaluate individuals with symptoms to determine whether they should be tested or not.

This comes as the City is increasing access to free testing for NYCHA residents by opening six additional sites at or near NYCHA developments. All six sites will be run by NYC Health + Hospitals, and will offer free walk-in COVID-19 testing. NYCHA residents will be prioritized for testing at these sites. Sites at Cumberland Health Center, Belvis Health Center and Gouvernor Health Center will open this Friday. Sites at Jonathan Williams Houses, Woodside Houses and St. Nicholas Houses will open next week.

Five community testing sites from NYC Health + Hospitals are now operating in communities hardest hit by the pandemic. NYC Health + Hospitals/ Gotham Health East New York, Morrisania, Vanderbilt, as well as NYC Health + Hospitals/ Queens and NYC Health + Hospitals/ Sydenham in Manhattan are offering walk-in testing six days a week for those most vulnerable to COVID-19 related illness. Additional information on these sites can be located here.

The City has also partnered with One Medical, a national digital health and primary care provider, to offer COVID-19 testing and virtual care services to frontline 1199SEIU members, including adult care employees or those who work with people with disabilities, as well as other non-member healthcare professionals, essential workers, and NYC residents who are 65 and older with preexisting conditions. Additional information on these sites can be located here.

Update on Death Certificates

Due to COVID-19, funeral homes are experiencing higher than normal requests for burial arrangements. While families might be waiting longer to bury their loved ones during this pandemic, Funeral Directors and families do not have to wait to begin the death certificate process. 

The City is making clearer to Funeral Directors and the public that death certificates can still be processed and delivered to funeral homes or families even if final arrangements have not been made. Death Certificates are available once the death has been reported and the case has been registered. This means if a decedent is being held in a morgue for longer than usual without a set burial or cremation date, a death certificate can still be ordered. 

Today the City posted clear guidelines for the public, medical professionals, and Funeral Directors. This guidance is available on the Health Department's website. The City is also be providing DOHMH contact points for members of the public, medical community, or Funeral Director community who have questions about the death certificate process or concerns about delays. The public can call the Health Department at 347-396-7962, and funeral directors can contact the Burial Desk at 212-788-4545. Questions can also be answered via DOHMH chat or via email at nycdohvr@health.nyc.govCertificates can be ordered online


MAYOR DE BLASIO ANNOUNCES NEW PLAN TO COMBAT COVID-19 AT NYCHA


Deepening City’s current efforts to ensure residents are safe and supported during crisis

  Mayor de Blasio today announced a plan to deepen the City’s response to COVID-19 at NYCHA. This pandemic is exacerbating the challenges that working people face, especially for NYCHA’s 400,000 residents. This new plan will ensure that these hardworking New Yorkers are safe and supported during this crisis.  

“NYCHA residents are the backbone of New York City, but for decades they have not received the support they deserved from all levels of government,” said Mayor de Blasio. “We refuse to continue this pattern, and this new plan will provide residents with the support they need to protect themselves and their families during this crisis. My promise to the New Yorkers who call NYCHA home: we will have your back, no matter what.”

The new plan will provide the following services to residents:

Access to Free Testing: The City is increasing access to free testing for NYCHA residents by opening 6 additional sites at or near NYCHA developments. All six sites will be run by NYC Health + Hospitals, and will offer free walk-in COVID-19 testing. NYCHA residents will be prioritized for testing at these sites. While Cumberland Health Center, Belvis Health Center and Gouvernor Health Center are opening this Friday, the sites at Jonathan Williams, Woodside and St. Nicholas will open next week.

Personal Protective Equipment: To help residents protect themselves and their families during this crisis, the City will be distributing face coverings and gloves to all residents. The City will also distribute hand sanitizer to NYCHA senior buildings. These deliveries will start next week. The City has already provided NYCHA staff with 60,000 masks and 10,000 pair of gloves.

Food for Seniors: To fulfill the pledge to provide food to all New Yorkers in need, the City is enrolling all NYCHA senior buildings in the food delivery program over the coming weeks. This will make it easier for residents to get food delivered directly to their door. The City has already delivered 288,000 meals to 24,000 NYCHA households over the past month.

Wellness Checks: The City is expanding NYCHA’s wellness call program to all seniors and vulnerable residents. These live, telephone calls are made to check on resident’s health and well-being, and ensure they have all their basic necessities such as medicine and groceries.  Since the start of the outbreak, NYCHA has made 40,000 wellness calls.

Free Tablets and Internet Service for Seniors: The City is investing $5 million to provide free tablets and internet service for 10,000 senior residents to help them remain connected with their loved ones. In partnership with T-Mobile, the City will start rolling out this service next week for seniors in Brownsville followed by developments in Central Brooklyn, South Bronx, Eastern Queens and Upper Manhattan. The City will also provide training for seniors on how to use these devices.

Cleaning Schedule: NYCHA’s third party vendor is sanitizing common areas three-times a week at family developments and five-times a week at senior developments. These aggressive cleaning schedules will be posted on NYCHA website this week.

Tuesday, April 21, 2020

Following Meeting With President Trump, Governor Cuomo Announces Partnership With Federal Government to Double Testing Capacity in New York State


  We had a meeting at the White House this afternoon and it was very productive and it was positive and we got a lot done.

I've been talking for a number of days as have most governors about testing as the next phase that we have to enter into. We're starting to talk about reopening and planning reopening.

Everyone is obviously concerned about how you reopen and if you reopen in a way that is too rushed and you're not prepared you could actually see the infection rate go up which is the last thing that anybody wants. Testing is the best way to inform and educate yourself as you go through the reopening process so you can watch not just hospitalizations - which we'll have that data - but also testing so you can look at the infection rate across the state and see how the infection rate is increasing.

Also, testing for employees who want to go back, employers who want to know whether or not the employees are actually negative of the virus. Testing has been a very big task to undertake. There's also been a lot of back and forth between the states, my state included, and the federal government about who does what on testing and who is  responsible.

I said this morning that I think in many ways people are just talking past each other because the federal government is helping on testing and states are responsible for testing but testing is a very complicated issue with a lot of levels. To have a real progress you have to sit down and go through the various steps of testing and actually decide who does what and that's what we did this afternoon.

We agreed that the state government should be responsible for managing the actual tests in their own laboratories. We have about 300 laboratories in the State of New York. We regulate those laboratories. It's up to a state to determine how many tests, where those tests should be done, New York City versus Buffalo versus Long Island, et cetera, the staff to do those tests, how often you do the tests - those should all be state decisions and state responsibilities.

The antibody test, which is one of the tests, how do you use those, when - that should all be up to the states.

The tracing function - that is the function after testing that actually traces people who are positive, who did they come in contact with, to isolate them - that's all the state's responsibility.

The problem with testing and bringing testing up to scale has been the national manufacturers of the equipment who make the testing kits that they have to send to the state labs so the state labs can actually perform them. Those are done by national manufacturers. The national manufacturers have said they have a problem with the supply chain to quickly ramp up those tests. They need swabs, they need vials and they need chemicals, quote, unquote reagents.

That is where the federal government can help. States cannot do international supply chains. I guess they could, but not in this time frame and it's not what we do. You shouldn't have 50 states competing to do international supply chains. One of my colleagues, Governor Hogan the Chairman of the National Governor's Association who is the Governor of Maryland - Republican, good man - he was bringing tests in from South Korea. Very creative and proactive on his part, but that's not what state's normally do. Let the federal government take responsibility for that federal supply chain for the national manufacturers. That's what we agreed in this meeting.

That is an intelligent division of labor, in my opinion. Let each level of government do what it does best and it ends this back and forth, what do the states do, what does Washington do, who's responsible, et cetera.

To quantify that situation in the State of New York, we now do, on average, about 20,000 tests per day. Our goal, which is very aggressive and ambitious but set it high and then try, our goal is to double the 20,000 to get to 40,000 tests per day. We need several weeks to ramp up to that, but it is a very aggressive goal. That is our current system at maximum. Our current laboratory system, 7-days-a-week, 24-hours-a-day. The maximum our system, as it exists, can do is that number. That's our goal and it was a very productive conversation. Again, that is the biggest single task we have to do that is identifiable from today. It ends the whole back and forth and the finger pointing in a very fair and smart way. It's a smart resolution so I feel very good about that. If we could double our tests that would be a home run. That is a really, really big deal.

We also talked about funding to the states. The legislation that the Congress passed did not have funding for the states. It passed additional money for small business and that's great and we need that and that's a positive, but it did not fund state governments, which to me is just a mistake, frankly. Fund small businesses, fund airlines, but you don't fund police, you don't fund fire, you don't fund healthcare workers, you don't fund teachers, you don't fund schools, you cut the aid to schools in this state. You know the state governments are broke, to use a very blunt term. You know the state governments are now responsible for the reopening and the governors are going to do the reopening, and they have no funds to do it. So, we talked about that, the President said he understood the issue and that he would work very hard to get funding for the states in the next piece of legislation that passes. And we hope there is another piece of legislation.

I also told the President, from my parochial point of view, we had a conversation with Secretary Mnuchin and the President, that there is a match. What's called a local match for FEMA funding. When the FEMA does something, the local government should match that funding by twenty five percent. I said to the President there is no way New York can pay that match because we don't have the funding period and it is disproportionate to New York, because we've had such a much larger number of cases than any other state in the United States. That it falls disproportionately on New York, which disproportionately is dealing with this crisis in the first place. We get all the hardship and then we get a bill because we had the hardship. Makes absolutely no sense and as a practical matter we couldn't pay it anyway. The President said he understood and that he would work to waive the local match. Secretary Mnuchin said he understood. Secretary Mnuchin was very supportive and I thank him for his support and the President said that he understood and that he would take care of it and I believe that he will, because he did understand it and that's a big deal for the state of New York.

Again, the incongruity the state that had the most pain and death should get a bill because they endured pain and death. I mean it makes no sense. So, that was a lot and it was complicated, but vitally important and the resolution was good across the board.

We met not just with the President, but with members of his team because a lot of this is granular and detailed and if you don't work out the details there is no conceptual agreement, right? It has to be on the details, so people actually know what we're agreeing to and it was on that level. So, I thank all the people on the President's team who made themselves available and work this through with us in detail and it's a really positive, positive resolution.

No. 202.22: Continuing Temporary Suspension and Modification of Laws Relating to the Disaster Emergency


No. 202.22

E X E C U T I V E  O R D E R

Continuing Temporary Suspension and Modification of Laws Relating to the Disaster Emergency

WHEREAS, on March 7, 2020, I issued Executive Order Number 202, declaring a State disaster emergency for the entire State of New York; and
WHEREAS, both travel-related cases and community contact transmission of COVID-19 have been documented in New York State and are expected to be continue;

NOW, THEREFORE, I, Andrew M. Cuomo, Governor of the State of New York, by virtue of the authority vested in me by Section 29-a of Article 2-B of the Executive Law to temporarily suspend or modify any statute, local law, ordinance, order, rule, or regulation, or parts thereof, of any agency during a State disaster emergency, if compliance with such statute, local law, ordinance, order, rule, or regulation would prevent, hinder, or delay action necessary to cope with the disaster emergency or if necessary to assist or aid in coping with such disaster, I hereby temporarily suspend or modify, for the period from the date of this Executive Order through May 20, 2020 the following:

  • Article 5 of the Real Property Tax Law, and analogous provisions of any other general or special laws that require a tentative assessment roll to be filed on or before June 1, 2020, to allow the tentative and final assessment rolls to be filed, at local option, up to 30 days later than otherwise allowable, to allow an assessing unit to set a date for hearing assessment complaints that is at least 21 days after the filing of the tentative roll, to allow notice of the filing of the tentative roll to be published solely online so long as the date for hearing complaints is prominently displayed, to suspend in-person inspection of the tentative roll, and to allow local Boards of Assessment Review to hear complaints remotely by conference call or similar service, provided that complainants can present their complaints through such service and the public has the ability to view or listen to such proceeding;
  • Section 1212 of the Real Property Tax Law, to the extent necessary to allow the commissioner of taxation and finance to certify final state equalization rate, class ratios, and class equalization rates, if required, no later than ten days prior to the last date set by law for levy of taxes of any municipal corporation to which such equalization rate, class ratios, and class equalization rates are applicable;
  • Section 1512(1) of the Real Property Tax Law and Sections 283.291 and  283.221 of the Laws of Westchester County, are suspended to allow the County Executive to negotiate with any town supervisor or mayor of any city, to accept a lesser percentage of taxes, special ad valorem levies or special assessments which are otherwise due on May 25, provided that in no event shall any town or city be required to pay more than sixty percent. The County Executive is empowered to determine whether or not penalties for late payment or interest are able to be waived dependent on whether or not such town or city applies the County Executive’s criteria for determining hardship due to COVID-19;
  • Section 283.221 of the Laws of Westchester County is further suspended to the extent necessary to require the supervisor of a town, to waive payment of penalties for late payment of county and county district taxes under section 283.221 up to July 15, 2020, and waive payment of penalties for late payment of town and town district taxes and assessments in the same manner, provided such town applies the County Executive’s criteria for the determination of hardship due to COVID-19;
  • Section 1512(1) of the Real Property Tax Law and any penalty provision of the tax code of a city within Westchester County is further suspended to the extent necessary to allow the mayor of that City to waive the payment of penalties for late payment of county and county district taxes and to further waive payment of penalties for late payment of city and city district taxes and assessments in the same manner, provided such city applies the County Executive’s criteria for the determination of hardship due to COVID-19;
  • Section 5-18.0(2) of the Nassau County Administrative Code, to the extent necessary to allow the Nassau County Executive to extend until June 1, 2020, the deadline to pay without interest or penalty the final one-half of school taxes upon real estate in such county.

G I V E N   under my hand and the Privy Seal of the State in the City of Albany this twentieth day of April in the year two thousand twenty.

BY THE GOVERNOR         

Secretary to the Governor

Manhattan U.S. Attorney Announces Criminal Charges Against Industrial Bank Of Korea For Violations Of The Bank Secrecy Act


Charges to Be Deferred For Two Years Under an Agreement in which Industrial Bank of Korea Admitted Its Conduct and Agreed to Pay $51 Million

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jeffrey E. Peterson, the Special Agent-in-Charge of the Anchorage, Alaska, Field Office of the Federal Bureau of Investigation (“FBI”), announced criminal charges against Industrial Bank of Korea (“IBK” or the “Bank”) consisting of a one-count felony information charging IBK with violating the Bank Secrecy Act (the “BSA”) by willfully failing to establish, implement, and maintain an adequate anti-money laundering (“AML”) program at IBK’s New York branch (“IBKNY”), a failure that permitted the processing of more than $1 billion in transactions in violation of the International Emergency Economic Powers Act (“IEEPA”).  The case is assigned to United States District Judge Denise L. Cote. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As they have admitted today, the Industrial Bank of Korea and its New York branch enabled years-long access to and exploitation of the U.S. banking system for prohibited transactions.  As detailed in an extensive Statement of Facts, IBK failed to institute the effective anti-money laundering program repeatedly requested by its own New York-based compliance officer.  As a result, IBKNY failed to detect and report $10 million in illegal U.S. dollar payments from Korean entities to Iranian ones.  Nor did IBK report the balance of the $1 billion of such sanctioned transactions between those parties.  Banks conducting business in the U.S. have a responsibility to ensure that they establish safeguards against the exploitation of the banking system by sanctioned entities that foster, promote, or engage in terrorism.  This Office remains committed to enforcing the law against banks that willfully fail to do so.”
FBI Anchorage Special Agent-in-Charge Jeffrey E. Peterson said:  “Today’s forfeiture is another important step in the FBI’s investigation of the Industrial Bank of Korea’s illegal movement of millions of dollars through the U.S. financial system on behalf of sanctioned Iranian entities. The FBI remains committed to protecting and upholding the integrity of the American financial system and ensuring global banking institutions adhere to U.S. laws, including sanctions against potentially hostile countries.”
Mr. Berman also announced an agreement (the “Agreement”) under which IBK agreed to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statement of Facts, pay penalties totaling $86 million to prosecutors and regulators, refrain from all future criminal conduct, and implement remedial measures as required by its regulators.  Assuming IBK’s continued compliance with the Agreement, the Government has agreed to defer prosecution for a period of two years, after which time the Government will seek to dismiss the charges. 
The federal penalty shall be collected through IBK’s forfeiture to the United States of $51 million in a civil forfeiture action also filed today.  Of that amount, one half shall be transferred to the United States Victims of State Sponsored Terrorism Fund, pursuant to the Justice for United States Victims of State Sponsored Terrorism Act.  In addition, IBK has reached a separate agreement with the New York State Department of Financial Services (“DFS”) covering various regulatory violations, under which it shall pay an additional $35 million penalty.
The Government entered into this resolution due, in part, to IBK’s acceptance and acknowledgement of responsibility under the laws of the United States for its conduct, as exhibited by its undertaking of a thorough internal investigation and transactional analysis, providing frequent and regular updates to the U.S. Attorney’s Office, collecting and producing evidence located in other countries to the full extent permitted under applicable laws and regulations, and making employees located in other countries available for interviews in the United States.  These factors and IBK’s willingness to enter into the commitments set forth in the Agreement, along with all other relevant factors and considerations, collectively weighed in favor of deferral of prosecution, and outweighed in this particular case IBK’s failure to self-report the full extent of its involvement in processing transactions that violated United States sanctions laws, failure to preserve certain electronic evidence relevant to those transactions, and failure to remediate fully and promptly the deficiencies in its compliance programs, as described below.
According to the documents filed today in Manhattan federal court:
IBK and IBKNY’s Failure to Maintain an Adequate AML Program
From at least in or about 2011, and continuing until at least in or about 2014, IBK and IBKNY violated United States law by willfully failing to establish, implement, and maintain an adequate AML program at IBKNY.  Among other things, despite requests and admonitions from regulators and IBKNY’s own compliance officer (the “Compliance Officer”), IBK and IBKNY failed to provide the resources, staffing, and training necessary to maintain an adequate AML program by declining to take steps to implement an automated transaction review program or to provide the Compliance Officer with any support staff or assistance.  This failure permitted, among other things, the processing through IBKNY and other U.S. financial institutions of approximately $1 billion in transactions on behalf of one or more IBK customers that violated IEEPA.
From at least 2006 until approximately January 2013, IBKNY used a manual process for reviewing transactions processed by the branch.  By at least early 2010, both outside regulators and the Compliance Officer had come to view the manual review as insufficient and flagged the need to enhance the branch’s transaction monitoring system with additional resources.  In 2010 and 2011, the Compliance Officer made repeated requests, including to IBKNY’s branch manager and to IBK’s Compliance Committee for an automated transaction review system, at one point noting that the “current [manual review] process is manually intensive, excessively time consuming to complete and prone to error, thereby exposing IBKNY to significant Bank Regulatory Sanctions.” 
In 2010 and 2011, the Compliance Officer was the only compliance employee at IBKNY.  During the same time period when the Compliance Officer was documenting the deficiencies in the IBKNY transaction review program, the Compliance Officer also made “a formal request for one additional IBKNY professional compliance staff” member.  In response, IBKNY senior leadership, including IBKNY’s branch manager, first proposed assigning bank interns to assist the Compliance Officer, and ultimately assigned one of IBKNY’s IT employees to assist the Compliance Officer on a part-time basis while still maintaining responsibility for IT work.  That employee, who had limited English language ability, had no experience in compliance and was of limited use to the Compliance Officer.
In March 2011, the Compliance Officer wrote another memo, in which he highlighted the significant problems caused by the continued need to engage in manual review of all transactions, adding that he had fallen so far behind at that point that “it would take approximately six months to get caught up enough to meet regulatory expectations.”  The Compliance Officer thus wrote that “it is imperative that IBKNY immediately recruit additional experienced AML/BSA resources” and recommended that, given the delay in starting the automated review of transactions, IBKNY hire additional experienced BSA/AML staff.  No meaningful action was taken on the Compliance Officer’s request for additional personnel.  Rather, the Branch Manager agreed to authorize overtime for the Compliance Officer and the IT employee assisting him so that they could devote extra hours to the manual review process. 
Due to the lack of an automated screening program and the lack of sufficient, adequately trained compliance staff to engage in the manual review process, the Compliance Officer fell months behind in his review of transactions being processed on behalf of IBK through IBKNY.  As a result, IBKNY did not detect or flag significant suspicious transactions that were processed through the branch until months after those transactions had been completed. 
IEEPA-Violating Transactions by Kenneth Zong and His Co-Conspirators
In particular, IBKNY and IBK failed to promptly identify a series of transactions that violated the United States’ economic sanctions against Iran (the “Zong Transactions”):  From January 2011 until July 2011, Kenneth Zong,[1] an American citizen, and various primarily Iranian co-conspirators exploited bank accounts that had been established at IBK and at another bank to permit certain forms of trade between Korea-based entities and Iran (the “CBI Won Accounts”), to transfer U.S. Dollars (“USD”) unlawfully to Iranian-controlled entities.  In order to evade U.S. sanctions, Zong and his co-conspirators set up shell companies in Korea, Iran, and elsewhere, which engaged in sham trade transactions and submitted fictitious documentation to Korean banks, including IBK, in order to facilitate the transfer of Iranian funds from the CBI Won Accounts to Korean entities’ accounts, the conversion of the funds into USD, and the subsequent transfer of USD from those entities through U.S. financial institutions to other accounts controlled by Zong and his co-conspirators and/or for the benefit of Zong and his co-conspirators.
IBKNY did not review and identify the Zong Transactions as unlawful until more than five months after they began to be processed through IBK, after IBK had already processed more than $1 billion worth of such transactions.
IBK and IBKNY’s Continued Failure to Implement an Adequate AML Program  
Shortly after the Compliance Officer flagged the Zong Transactions, he again alerted IBK’s management to the dire state of IBKNY’s AML program, noting in a memo to senior leadership at IBK’s Head Office that:
[C]urrently the branch AML monitoring program is behind 8 monthly BSA reviews due to insufficient resources.  Branch management has refused to accept my repeated recommendation to increase resources. . . .  Regulation H of the Federal Reserve mandates a branch have a BSA program that includes an effective BSA review process with sufficient resources to be able to detect and report suspicious activity within a reasonable time frame.  Under these requirements, the branch is deficient in both areas.
Nevertheless, IBKNY did not take immediate steps to remedy these deficiencies.  While IBK initiated a process to select a vendor to install an automated system in August 2011, the system did not become operational for another 18 months.  Moreover, while the system commenced operation in January 2013, it was not validated by IBKNY’s external auditor until 2014.  Nor did IBKNY hire even a second full-time compliance employee until October 2014. 
Even after these fundamental improvements were made, IBK did not fully remediate IBKNY’s broader BSA/AML deficiencies for years, even after entering into a Written Agreement with their primary regulators to correct such deficiencies in February 2016.
IBK’s Failure to Disclose Its Wrongdoing in a Timely Manner
While IBKNY filed a suspicious activity report regarding the subset of Zong’s transactions that had been processed through IBKNY (approximately $10 million worth of transactions) and made a disclosure regarding those transactions to the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) in August 2011, IBK never self-reported to OFAC its involvement in the remaining $990 million worth of Zong’s illegal transactions.  Similarly, IBK did not self-disclose its willful violations of the Bank Secrecy Act prior to the Government’s investigation.
Mr. Berman praised the outstanding investigative work of the Anchorage Field Office of the FBI.  He also thanked the United States Attorney’s Office for the District of Alaska, the Federal Reserve Bank of New York, and the New York State Department of Financial Services for their assistance with this matter.  The Office of the New York State Attorney General also conducted its own investigation alongside the United States Attorney’s Office for the Southern District of New York on this investigation.
[1] On or about December 14, 2016, Zong was indicted in the District of Alaska and charged with violations of IEEPA and money laundering offenses.  The entirety of the text of that indictment and the description of the indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.