Attorney General James Sues Sotheby’s for Defrauding New York Taxpayers Out of Millions

 

Sotheby’s Helped Wealthy Clients Evade Taxes to Boost its Own Sales

  New York Attorney General Letitia James today filed a lawsuit against the international auction house Sotheby’s for defrauding the state of New York and its taxpayers out of millions of dollars in unpaid sales tax. The complaint alleges that Sotheby’s violated the New York False Claims Act by facilitating the creation and use of false tax exemption certificates — known as resale certificates — for an art collector and major client, even though it knew the art collector was not eligible to claim the exemption.

“Millionaires and billionaires cannot be allowed to evade taxes while every day Americans pay their fair share,” said Attorney General James. “Sotheby’s violated the law and fleeced New York taxpayers out of millions just to boost its own sales. This lawsuit should send a clear message that no matter how well-connected or wealthy you are, no one is above the law.” 

In 2018, the collector’s company, Porsal Equities, entered into a settlement agreement with the Office of the Attorney General (OAG) in which Porsal admitted it had improperly used resale certificates in violation of the New York False Claims Act. The OAG investigation found that Porsal Equities admitted that it and its owner certified that they were purchasing artwork for resale when, in reality, they were purchasing the artwork for personal purposes — namely, for display and enjoyment at the collector’s private residence. 

Today’s lawsuit — filed in New York County State Supreme Court — alleges that Sotheby’s knew that the collector and his company were not purchasing art for resale as art dealers in the normal course of business, but accepted their resale certificates anyway, and, in fact, facilitated the creation and use of these resale certificates. In 2010, Sotheby’s advised the collector he could use a resale certificate and helped complete the certificate, including adding the false declaration that he was an art dealer even though, in reality, the collector had not told Sotheby’s he was an art dealer and Sotheby’s knew he was actually in the shipping business. Sotheby’s not only accepted this resale certificate, but, by 2015, had accepted three more equally false certificates from Porsal Equities facilitated by Sotheby’s employees, despite overwhelming evidence that the collector and Porsal Equities were not art dealers and were only buying art for personal use.

MAYOR DE BLASIO DECLARES SPECIAL ELECTION DATE FOR THE 24TH COUNCIL DISTRICT IN QUEENS

 

 Mayor Bill de Blasio today made the following statement on the special election in the New York City Council’s 24th District:

 

“I am declaring Tuesday, February 2, 2021 as the date for the 24th City Council District special election to elect a Council Member to serve until December 31st, 2021. This date, within the window allowed by the City Charter, will facilitate maximum voter participation. I encourage all eligible Queens residents to vote early, in person, or by absentee ballot in the upcoming special election.”

Councilman Mark Gjonaj Information

 

Governor Cuomo Updates New Yorkers on State's Progress During COVID-19 Pandemic - NOVEMBER 5, 2020

 

Positive Testing Rate in All Focus Zone Areas is 3.04 Percent; New York State Positivity Outside All Focus Zone Areas is 1.70 Percent

Statewide Positivity Rate is 1.86 Percent

24 COVID-19 Deaths in New York State Yesterday

 Governor Andrew M. Cuomo today updated New Yorkers on the state's progress during the ongoing COVID-19 pandemic.

"Every expert told us come the fall cases would go up, and that's what's happening around the country and the globe," Governor Cuomo said. "We got ready here in New York: we have our micro-cluster strategy and we have our additional testing. That's why we have the third lowest positivity rate in the country. But COVID fatigue is creeping up and there are serious caution flags in Western New York, the Finger Lakes, and in other communities across the state, so it is more important than ever that we be vigilant. Wear masks, wash your hands, adhere to social distancing rules, and enforce the public health guidelines that are there to save lives."

The Governor noted that the positive testing rate in all focus areas under the state's Micro-Cluster strategy is 3.04 percent, and outside the focus zone areas is 1.70 percent. Within the focus areas, 19,814 test results were reported yesterday, yielding 602 positives. In the remainder of the state, not counting these focus areas, 141,205 test results were reported, yielding 2,395 positives.

Today's data is summarized briefly below:

• Patient Hospitalization - 1,277 (+24)
• Patients Newly Admitted - 164
• Hospital Counties - 46
• Number ICU - 268 (-16)
• Number ICU with Intubation - 128 (-1)
• Total Discharges - 80,225 (+116)
• Deaths - 24
• Total Deaths - 25,892

NYPD Announces Citywide Crime Statistics for October 2020

 

For the month of October 2020, the number of gun arrests increased by 102.4 % (502 v. 248). Year-to-date, the number of gun arrests have increased by 15% (3,308 vs. 2,876). For the month of October, gun arrests have increased in every borough.

Between October 1 and October 31, there was a 121% increase in the number of shooting incidents across the city (137 v. 62). The number of people murdered citywide decreased to 35 v. 36, (- 2.8%) for the month, while the number of burglaries increased to 1,363 v. 1,031 (+32.2%) and the number of auto thefts increased to 933 v. 522 (+78.7%) citywide.

From the COVID-19 outbreak through upticks in violent crime to the continuing work of facilitating peaceful protests throughout the city, the 2020 calendar year has confronted our officers and the city’s residents with unprecedented challenges. Through it all, our mutual resiliency has come through.

Today, our NYPD officers continue to display the best of the NYPD traditions, responding in real-time to crime spikes by gathering timely intelligence and analyzing crime trends. In addition, there is a new class of recruits who have entered the Police Academy and the NYPD’s work to keep all New Yorkers safe continues.

“Our tireless men and women officers are here to serve New Yorkers and keep everyone across all neighborhoods safe,” said Police Commissioner Dermot Shea. “We will continue to be relentless in our mission to ensure public safety by working hand-in-hand with those we are sworn to serve and to deliver fair and exceptional police services.”

Key highlights from this month's crime statistics:

• Murder is up +37.2% (387 v. 282) for the first ten months of 2020 when compared to the first ten months of 2019.
• There were 137 citywide shooting incidents in October 2020, compared to 62 shooting incidents in October 2019, a +121% increase. Year-to-date, through October 31, there is a +93.9% spike in citywide shooting incidents (1,299 v. 670).
• Burglary increased +32.2% (1,363 v. 1,031) in October and is up +41.6% (12,673 v. 8,951) year-to-date through October 31.
• For the month of October, rape decreased by -17.5% (127 v. 154). Rape continues to be underreported. If you have been a victim of sexual assault, please come forward. The NYPD Special Victims Division's 24-hour hotline is 212-267RAPE (7273).
• Year-to-date, through October 28, citywide hate crimes declined -34% (237 v. 359).

Team AOC - We re-elected Alexandria and cemented our movement’s vision

 

We did it!!! Our opponents raised over $13 million from Trump donors, corporations and billionaires, but we still re-elected Alexandria to Congress with a groundswell of support.

And that’s not all we did. Thanks to your help, we cemented our movement’s values and vision into a gigantic, growing force in the fight for working-class families across the nation. Specifically, because of your support, we:

• Delivered 80,000 meals
• Donated more than 100,000 masks
• Organized over 3,600 volunteers
• Fundraised $1.1 million to provide COVID-19 relief to excluded workers and families in-need
• Empowered our communities through workshops on childcare collectives, eviction defense, workplace safety and more
• Launched a virtual homework helper program to support students and families in our district
• Organized a $1 million census outreach program, which resulted in over $52.6 million returned to our district
• Recruited over 1,000 volunteers to help get out the vote in key swing states

We couldn’t have done that without you!

Progress doesn’t happen without your work. We appreciate you more than words can capture.

But listen. We can’t skip a beat. The work we have ahead of us is deep and transcends elections. It always has been. We are called to do it.

Donald Trump’s premature claims of victory are illegitimate, dangerous, and authoritarian. We need to organize like crazy to count the votes and respect the results.

And as long as working-class families are under siege from corrupt politicians and greedy corporations, we have an obligation to do everything we can to level the field.

This struggle will continue to be a challenging one. But right now, we are showing that we have the grit and determination to overcome the odds. A better world is not only possible – she is in our hands.

So yes, we should take a moment to celebrate what we have worked so hard to achieve – and then get right back to work.

With infinite gratitude,

Team AOC

MAYOR DE BLASIO DELIVERS REMARKS AT BRYANT PARK’S WINTER VILLAGE MARKET

 

Mayor Bill de Blasio: What a beautiful, powerful story, reminding us of the strength of this place, reminding us of what we love about New York City – the power of New Yorkers, the resiliency of New Yorkers, the faith that New Yorkers bring to everything we do and why after everything – and Elizabeth, what you said – remember, everyone, when she said – after hurricanes, after storms, the green markets come back. No matter what happens, people come back and they gathered together to bring our city back. Even after 9/11 – what a poignant thought that after 9/11, there you were, bringing things to help people, bringing food to help people. This is a reminder of who we are.  

 

So, we're gathered here in the middle of a crisis, but it's a crisis we will overcome. That's what we do as New Yorkers. You look around you today and you see people who are ready to move forward. It's not a ghost town, is it? It's a place filled with joy and hope and people making something happen. So, this Holiday Market is more evidence of the strength of the city. You know, some people might say, well, let's not have it – but, we're New Yorkers. In fact, we said, yes, let's have the Holiday Market. Let's celebrate together. Let's help our small businesses. Let's do it in a way that's safe, right? We could do it and we could do it in a way that's safe, and that's what we have done here.  

 

Now, everybody, here’s the most important message. You need to spend your money here. Okay? Let's make it really clear. New Yorkers like straight talk. You need to spend your money here. It's nice to buy things online, but it's a lot nicer to buy things from the person who's actually created them. It's a lot nicer to help a small business and help your fellow New Yorker, help someone who built a small business from scratch, help the people that live here in our own community, help them to have jobs. So, this holiday season, we know a lot families are hurting. We know there won't be as much to spend, but what you do choose to spend, buy local, buy from a small business, buy from a real human being. Come here to the Holiday Market, and every single purchase you make will help the city you love and help your fellow New Yorkers.  

 

So, everyone, with that, look, this Winter Village, it's not only a great thing itself, it helped inspire something we're doing now our Open Storefronts initiative, where we're going to allow businesses to use the sidewalks in front of their stores, so people can purchase things outdoors, where they're going to feel safe, give small businesses a chance to come back. This market and others like it helped inspire that vision. So, all the good here and all the good that will come from this, and now I just want to take a moment, I want to turn to a man who had a lot of partners, but he was the genius behind this – saw what could happen here in Bryant Park years ago and made it one of the truly magical places in this city. Mr. Dan Biederman. 

 

MAYOR DE BLASIO ANNOUNCES CITY HAS REACHED $680 MILLION IN LABOR SAVINGS

 

New agreement with Council of School Supervisors and Administrators will save $45 million in FY21  

Mayor Bill de Blasio today announced that the City has reached $680 million in labor savings in fiscal year 2021, following an agreement with the Council of School Supervisors and Administrators that saves $45 million in fiscal year 2021. Today’s agreement follows agreements with District Council 37, the United Federation of Teachers, the Uniformed Fire Officers Association, Doctors Council and Glaziers. The City still needs a minimum of $5 billion in federal or state relief in order to avoid drastic action such as layoffs for fiscal year 2022.   

“As the prospect of a stimulus next year continues to improve, we’ve been hard at work with our labor partners to find savings this year,” said Mayor Bill de Blasio. “I thank Mark Cannizzaro and all of our educators for doing their part to get New York City out of this fiscal crisis.”   

The agreement with CSA includes:  

Deferred payment: Payment of $45 million is deferred to Fiscal Year 2022.    

Commitment on layoffs: No layoffs of CSA members through June 30, 2021. If the City receives State and Federal assistance of $5 billion or more, the no-layoff pledge is extended to June 30, 2022.