Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19

 

Governor Encourages New Yorkers to Keep Using the Tools to Protect Against and Treat COVID-19: Vaccines, Boosters, Testing, and Treatment

13 Statewide Deaths Reported on September 23

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.     Each New York City borough's 7-day average percentage of positive test results reported over the last three days is as follows **:    

"As we celebrate the second night of Rosh Hashana today, I urge New Yorkers to remain vigilant, be sure to use the tools that are available to keep themselves, their loved ones, and their communities safe and healthy," Governor Hochul said. "Take advantage of the vaccine by staying up to date on doses. Test before gatherings or travel and if you test positive, talk to your doctor about potential treatment options."

Governor Hochul continues to urge New Yorkers to get their bivalent COVID-19 vaccine boosters from Pfizer-BioNTech for anyone age 12 or older and from Moderna for those 18 or older. To schedule an appointment for a booster, New Yorkers should contact their local pharmacy, county health department, or healthcare provider; visit vaccines.gov; text their ZIP code to 438829, or call 1-800-232-0233 to find nearby locations.

In addition, Governor Hochul is encouraging New Yorkers to get their annual flu vaccine as flu season approaches. The flu vaccine is recommended for almost everyone 6 months and older. The flu virus and the virus that causes COVID-19 may simultaneously spread this fall and winter, so getting vaccinated against both is the best way to stay healthy and to avoid added stress to the health care system. 

For information about flu vaccine clinics, contact the local health department or visit Vaccines.gov/find-vaccines.  

Today's data is summarized briefly below:    

• Cases Per 100k - 14.48
• 7-Day Average Cases Per 100k - 23.39
• Test Results Reported - 37,435
• Total Positive - 2,829   
• Percent Positive - 7.10%**    
• 7-Day Average Percent Positive - 6.71%**      
• Patient Hospitalization - 2,186 (-10) 
• Patients Newly Admitted - 366
• Patients in ICU - 218 (-5)
• Patients in ICU with Intubation - 75 (-1)
• Total Discharges - 344,097 (+349)
• New deaths reported by healthcare facilities through HERDS - 13  
• Total deaths reported by healthcare facilities through HERDS - 58,022

** Due to the test reporting policy change by the federal Department of Health and Human Services (HHS) and several other factors, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.       

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.      

Important Note: Effective Monday, April 4, the federal Department of Health and Human Services (HHS) is no longer requiring testing facilities that use COVID-19 rapid antigen tests to report negative results. As a result, New York State's percent positive metric will be computed using only lab-reported PCR results. Positive antigen tests will still be reported to New York State and reporting of new daily cases and cases per 100k will continue to include both PCR and antigen tests. Due to this change and other factors, including changes in testing practices, the most reliable metric to measure virus impact on a community is the case per 100,000 data -- not percent positivity.     

Each New York City borough's 7-day average percentage of positive test results reported over the last three days is as follows **:    

Borough	Friday,   September   23, 2022	Saturday,   September   24, 2022	Sunday,   September   25, 2022
Bronx	6.18%	6.19%	6.14%
Kings	3.50%	3.76%	3.78%
New York	5.18%	5.29%	5.42%
Queens	6.16%	6.13%	6.12%
Richmond	5.67%	5.71%	5.65%

Councilmember Rafael Salamanca - News, updates and more from NYC Council Member Rafael Salamanca, Jr.

FROM THE BRONX TO PUERTO RICO Council Member Salamanca joins Mayor Eric Adams as part of a New York City delegation to visit Puerto Rico and the Dominican Republic following Hurricane Fiona. Meeting with Miguel Romero, Mayor of San Juan and Secretary of State Omar J. Marrero Diaz to survey the response efforts being made through NYC Emergency Mangement personnel.  After San Juan, headed west to Cabo Rojo, we saw the heartbreaking devastation caused by Fiona. We distributed food and water with Mayor Jorge Morales Wiscovitch, and met with residents who lost everything. With NYC’s unwavering support, we will rebuild a resilient Cabo Rojo. The delegation will head out Sunday evening to the Dominican Republic to extend our support to those impacted in the Dominican Republic.  Stay tuned for future updates. HAPPY HISPANIC HERITAGE MONTH

Senator Biaggi's Week in Review: 9/19/22-9/23/22

 

Dear Community,

This week, Puerto Rico was hit by the first major hurricane of this Atlantic season. Five years after the destruction and neglect highlighted by the aftermath of Hurricane Maria, the entire island is facing a loss of power and running water due to Hurricane Fiona, a Category 4 tropical storm.

My heart goes out to the millions of families impacted in Puerto Rico, as well as to the 660,000 members of the Puerto Rican diaspora in New York City. New York, along with the entire country, must support Puerto Rico during this crisis that has been intensified by the effects of climate change and federal negligence about Puerto Rico’s infrastructure needs.

The federal government must act––not just in providing emergency aid, but in reducing Puerto Rico’s vulnerability to climate disasters by constructing a more reliable, sustainable energy grid instead of rebuilding the fragile, fossil-fuel dependent one that has repeatedly failed in Hurricane Irma, Maria, and now Fiona. Without continued federal investment, the cycle of natural disasters crippling Puerto Rico’s infrastructure will continue.

There are ways to provide support right now for on-the-ground emergency response in Puerto Rico. Organizations like Hispanic Federation and Diaspora for Puerto Rico are all accepting monetary donations to provide essential supplies for families facing flooding, electricity loss, and lack of running water. Taller Salud is also accepting donations of nonperishable food, diapers, and water. Any help we can offer to Puerto Rico will go a long way in ensuring a speedier recovery for the island in the aftermath of this devastating hurricane.

Finally, this Sunday evening marks the start of Rosh Hashanah. I’d like to wish everyone observing a Happy Rosh Hashanah! 

With Gratitude,

State Senator Alessandra Biaggi

Mount Vernon Memorial Field Ribbon Cutting - Wednesday, September 21st, 2022

On Wednesday, I joined Westchester County Executive George Latimer and Mount Vernon Mayor Shawyn Patterson-Howard for a ribbon cutting for the official opening of Memorial Field in Mount Vernon.

Biogen Inc. Agrees to Pay $900 Million to Settle False Claims Act Allegations Related to Improper Physician Payments

 

  Pharmaceutical company Biogen Inc. (Biogen), based in Cambridge, Massachusetts, has agreed to pay $900 million to resolve allegations that it violated the False Claims Act by causing the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce them to prescribe Biogen drugs.

The settlement announced today resolves a lawsuit filed and litigated by former Biogen employee Michael Bawduniak against Biogen under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. The United States may intervene in the action or, as in this case, the relator may proceed with the lawsuit. 

In his lawsuit filed in the District of Massachusetts, Bawduniak alleged that Biogen paid kickbacks to physicians to induce them to prescribe the company’s multiple sclerosis drugs. According to the relator’s complaint, from Jan. 1, 2009, through March 18, 2014, Biogen held programs through which it offered and paid remuneration, including speaker honoraria, speaker training fees, consulting fees and meals, to health care professionals who spoke at or attended Biogen’s speaker programs, speaker training meetings or consultant programs to induce them to prescribe the drugs Avonex, Tysabri and Tecfidera in violation of the Anti-Kickback Statute.

“We thank Mr. Bawduniak for uncovering this behavior and bringing it to light,” said United States Attorney Rachael S. Rollins. “This matter is an important example of the vital role that whistleblowers and their attorneys can play in protecting our nation’s public healthcare programs.”

“Bawduniak doggedly pursued this matter on behalf of the United States for over seven years,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The settlement announced today underscores the critical role that whistleblowers and their attorneys play in utilizing the False Claims Act to combat fraud affecting federal healthcare programs.”

Under the terms of the settlement, Biogen will pay $843,805,187 to the United States and $56,194,813 to 15 states. The United States will pay Bawduniak a share of the federal recovery. 

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Three Men Charged with International Market Manipulation Scheme

 

 An indictment unsealed today charges three men with orchestrating a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Philip R. Sellinger announced.

James Patten, 63, of Winston-Salem, North Carolina; Peter Coker Sr., 80, of Chapel Hill, North Carolina; and Peter Coker Jr., 53, of Hong Kong, China, are each charged in a 12-count indictment with conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate securities prices. Patten is also charged with four counts of manipulation of securities, four counts of wire fraud, and one count of money laundering.

Patten and Coker Sr. were arrested today and are scheduled to appear before U.S. Magistrate Judge L. Patrick Auld in federal court in the Middle District of North Carolina. They will appear in court in the District of New Jersey at a date to be determined. Coker Jr. remains at large.

According to documents filed in this case and statements made in court:

From 2014 through September 2022, Patten, Coker Sr., and Coker Jr. conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities.

 As part of the securities fraud scheme, the defendants targeted two publicly traded companies – Hometown International Inc. and E-Waste Corp. – which were both traded on the OTC Link Alternative Trading System, also known as the OTC Marketplace. The OTC Marketplace is an alternative trading system that contains three tiers of markets, which are largely based on the quality and quantity of the listed companies’ information and disclosures.

Patten, Coker Sr., and Coker Jr. took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company. A successful reverse merger  would allow the defendants to sell shares of each entity at a significant profit.

In or around 2014, two New Jersey residents began the process of opening a local deli in Paulsboro, New Jersey. One of the individuals discussed his interest in opening the deli with Patten, a long-time friend, who suggested the creation of Hometown International, an umbrella corporation, under which the deli would operate as a wholly owned subsidiary. Unbeknownst to the deli owners, almost immediately after Hometown International was formed, Patten and his associates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them.

Around October 2019, Hometown International began selling shares on the OTC Marketplace. Shortly thereafter, Patten, Coker Sr., And Coker Jr. undertook a calculated scheme to gain control of Hometown International’s management and its shares from the deli owners. Patten, Coker Sr., and Coker Jr. took similar actions to gain control of E-Waste Corporation’s stock and management.

Once the defendants gained control of Hometown International and E-Waste’s shares, they arranged for the transfer of millions of shares of stock to a number of nominee entities, including entities controlled by Coker Jr., in an effort to mask their control of the shares.

In addition, the defendants transferred shares to family members, friends, and associates and gained control over their trading accounts by obtaining their log-in information in order to conceal the defendants’ involvement. The defendants then used those accounts to commit a number of coordinated trading events, often referred to as match and wash trades, to trade in Hometown International and E-Waste Corp.’s stock on both sides of the transaction.

These tactics artificially inflated the price of Hometown International and E-Waste’s stock by giving the false impression that there was a genuine market interest in the stock. Their scheme had the ultimate impact of artificially inflating Hometown International’s stock by approximately 939 percent and E-Waste’s stock by approximately 19,900 percent.

The securities fraud and manipulation of securities prices counts each carry a maximum penalty of 20 years in prison and a $5 million fine. The wire fraud and money laundering counts are punishable by a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The counts of conspiracy to commit securities fraud and conspiracy to manipulate securities prices both carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense whichever is greatest.

In a separate civil action, the Securities and Exchange Commission today filed a complaint in the District of New Jersey charging Patten, Coker Sr., and Coker Jr. based on the allegations underlying the market manipulation scheme.

U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Jacqueline Maguire, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation. He also thanked special agents from FBI Charlotte, FBI Los Angeles, FBI San Francisco, FBI Denver, and FBI Knoxville, for their assistance.

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

Attorney General James Sues Cryptocurrency Platform for Operating Illegally and Defrauding Investors

 

Nexo Failed to Register as Required by New York Law and Lied to Investors about Their Registration

New York Attorney General Letitia James today joined seven state securities regulators in suing cryptocurrency companies Nexo Inc. and Nexo Capital Inc. (Nexo), for failing to register with the state as securities and commodities brokers or dealers and for lying to investors about their registration status. Despite warnings from the Office of the Attorney General (OAG) to register as a securities and commodities broker or dealer, Nexo failed to register and misrepresented to investors that they are a licensed and registered platform. In New York, entities engaging in the offer, purchase, or sale of securities or commodities, including cryptocurrency platforms, must register with OAG if they are operating within the state or offering their products to New Yorkers. Through her lawsuit, Attorney General James seeks disgorgement of any revenues derived from Nexo’s unlawful conduct and restitution for investors.

“Cryptocurrency platforms are not exceptional; they must register to operate just like other investment platforms,” said Attorney General James. “Nexo violated the law and investors’ trust by falsely claiming that it is a licensed and registered platform. Nexo must stop its unlawful operations and take necessary action to protect its investors.”

Today’s lawsuit — filed in New York County State Supreme Court — alleges that Nexo promoted and sold securities in the form of an interest-bearing virtual currency account called the Earn Interest Product with promises of high returns for participating investors, while failing to register as a securities broker or dealer as required by state law. In addition, the lawsuit alleges that Nexo engaged in the unregistered purchase and sale of securities and commodities through its virtual currency trading platform called the Nexo Exchange, and misled investors by falsely representing that it was in compliance with applicable laws and regulations. Roughly 10,000 New Yorkers have accounts with Nexo.

Attorney General James specifically charges Nexo with violating New York’s Martin Act and New York Executive Law § 63(12). Attorney General James seeks restitution for thousands of defrauded investors, disgorgement of revenues derived from Nexo’s unlawful conduct, and permanent injunctions against the defendants’ violations of state law.  

This matter arises from an investigation conducted in coordination with a working group of state securities regulators. Today, state securities regulators of California, Kentucky, Maryland, Oklahoma, South Carolina, Washington, and Vermont all filed their own administrative actions against Nexo.

Today’s filing continues Attorney General James’ efforts to regulate the cryptocurrency industry and protect New York investors. In August, Attorney General James urged New Yorkers affected by turmoil in cryptocurrency markets — including frozen accounts and deceptive conduct — to report these issues to OAG. In June, Attorney General James warned New Yorkers of the dangerous risks of investing in cryptocurrencies after the market reached record lows. Also in June, Attorney General James reached a nearly $1 million settlement with crypto platform BlockFi Lending LLC for offering unregistered securities. Earlier this year, Attorney General James issued a taxpayer notice to virtual currency investors and their tax advisors to accurately declare and pay taxes on their virtual investments. In October 2021, Attorney General James directed unregistered crypto lending platforms (including Nexo) to cease operations for not fulfilling their legal obligations. In March 2021, Attorney General James warned New Yorkers of the risks of cryptocurrency investments and reminded investment platforms of their legal obligations.

Attorney General James continues to urge New Yorkers who have been affected by deceptive conduct in the virtual assets market to report these issues to OAG. Attorney General James also encourages workers in the cryptocurrency industry who may have witnessed misconduct or fraud to file a whistleblower complaint with her office, which can be done anonymously.

Governor Hochul Announces Crackdown on Unemployment Insurance Fraud

 New York State Department of Labor Identifies More Than $11 Million in Fraudulent Unemployment Insurance Payments in August; On Track to Find More Than $110 Million in Stolen Benefits This Year

DOL to Seek Repayment and Refer Nonpayment to Law Enforcement As Needed

New Fraud Detection Technology Part of DOL's Four-Year Modernization Effort

 Governor Kathy Hochul today announced actions to crack down on unemployment insurance fraud after a New York State Department of Labor investigation found that insurance fraud accounted for more than $11 million in benefits payments in August. These benefits were paid almost exclusively to those working while also collecting unemployment insurance payments during the pandemic. Following the Department of Labor's investigation, Governor Hochul announced that the State would seek repayment for fraudulent benefits payments and refer nonpayment to state law enforcement. Based on this investigation, the Department of Labor Office of Special Investigations is on pace to uncover $110 million in fraudulently attained benefits this year.

"At the height of the pandemic, when our state experienced an unprecedented unemployment crisis, these fraudulent unemployment insurance claims took resources away from New Yorkers who needed them most," Governor Hochul said. "My administration is taking action to step up our investigations of unemployment insurance fraud, hold those who take advantage of the system accountable, and protect this crucial benefit for New Yorkers in need."

The fraudulent payments were identified by DOL using an upgraded fraud detection system. The system allows investigators to more efficiently review cases and streamlines records requests to employers in order to confirm dates of employment. If the system detects a fraudulent payment, the claimant has an opportunity to explain the discrepancy.

Following the review, if the claimant is found to have worked while collecting benefits, DOL will take steps to ensure that ill-gotten payments are returned. This includes establishing repayment plans, garnishing state and federal tax returns and referring matters of nonpayment to state and/or federal law enforcement, as needed.

New York State Department of Labor Commissioner Roberta Reardon said, "When someone files a fraudulent unemployment insurance claim, they are stealing from New Yorkers. The Department remains vigilant and will continue to ensure that these criminals are held accountable. We thank businesses and employers for working with us to uncover fraud."

This new system is part of NYSDOL's modernization efforts which include a 4-year plan to enhance customer experience and reduce fraud. In June, Governor Hochul announced that NYSDOL is halfway through this plan.

NYSDOL is committed to ensuring fraudulent UI claims are prevented and corrected. To report UI fraud and learn more visit the Report Fraud page on the NYSDOL website.