MAYOR DE BLASIO ANNOUNCES THE FIRST EVER HIRING OF A WOMEN-OWNED FINANCIAL FIRM TO MANAGE $100 MILLION OF THE CITY’S DEFERRED COMPENSATION PLAN

Announcement comes on the heels of new policies that seek to increase participation of minority and women-owned firms in the second largest public Deferred Compensation Plan in the country

  To mark the end of Women’s History Month, Mayor Bill de Blasio today announced that, for first time in City history, a women-owned financial firm has been hired to manage $100 million of the City’s Deferred Compensation Plan the voluntary retirement plan for over 180,000 City employees and retirees. The firm – Longfellow Investment Management Co., LLC – is a City-certified, women-owned firm and will be managing assets in the Plan’s Stable Income Fund. The Stable Income Fund is one of seven investment options offered by the Deferred Compensation Plan. Longfellow will be managing assets in the Stable Income Fund’s portfolio that primarily focuses on government fixed income securities.

“While the numbers of women in the workforce are growing every day, asset fund management is still an industry that lags behind. We’ve decided to do our part to help right this wrong,” said Mayor Bill de Blasio. “I always say that this City works best when everyone – regardless of race, gender or ethnicity – has a chance to participate in our economy. The time for women to get a seat at the table has been long overdue, and I look forward to the unique prospective Longfellow Investment Management Co. will bring to the table.”

“With the hiring of Longfellow Investment Management Co. and EARNEST Partners and the implementation of our new M/WBE policy, we are taking steps towards an inclusive and equitable economy,” said Deputy Mayor for Strategic Policy Initiatives J. Phillip Thompson. “We are setting new standards across agencies by having them take a hard look at the diverse and talented businesses that are ready to work with us at every level of City government. Our City knows that investing in our M/WBEs means investing in our communities across the five boroughs.”

“We are excited to partner with the City of New York in the management of assets for its Deferred Compensation Plan,” said Barbara McKenna, Managing Principal of Longfellow Investment Management Co., LLC. “More asset owners are seeking out firms like Longfellow because they recognize the value of diversity and realize that they are missing out on talent if they limit their manager roster to only the largest firms.”

This announcement comes on the heels of the recently enacted policy that seeks to increase the participation of minority and women-owned firms in the Deferred Compensation Plan. The Office of Labor Relations, which acts as the administrator of the Plan, will actively encourage minority and women-owned businesses, and firms that partner with them, to participate in the hiring process. The qualifications of any MWBE firms that make proposals are examined and analyzed in the same manner as is used in examining all other firms. Longfellow was selected because they provided the Plan with the best combination of investment performance and low-cost fees. Over time, $9 billion of funds across the entire plan will become available for management.

This policy also led to the hiring of EARNEST Partners, an African-American led financial firm that will manage assets in the Stable Income Fund. EARNEST Partners will manage $100 million of the same portfolio.

“For the past four years, this Administration has tackled and implemented every policy with an eye towards equity and equality,” said Jonnel Doris, Senior Advisor and Director of the Mayor’s Office of Minority and Women-owned Business Enterprises. “Today is no different. With the hiring of Longfellow Investment Management Co. and EARNEST Partners, we are reminding Cities across America that women and minorities have the talent and expertise to do this work. Not only that, but these businesses also offer diverse and unique perspectives to City programs and projects that impact the lives of countless New Yorkers.”

Recording Artist And Performer DMX Sentenced In Manhattan Federal Court To 1 Year In Prison For Tax Fraud

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EARL SIMMONS, an internationally known recording artist, performer, and actor known professionally as “DMX” and “X,” was sentenced today in Manhattan federal court to one year in prison for tax fraud in connection with evading the payment of income taxes in the period from 2010 through 2016.  In total, during that time period SIMMONS concealed millions of dollars of income from the IRS and avoided paying $1.7 million of tax liabilities.  SIMMONS pled guilty on November 30, 2017, before United States District Judge Jed S. Rakoff, who imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “Earl Simmons, the recording artist and performer known as DMX, stole from the American taxpayers when he earned millions of dollars but failed to pay any taxes on his income.  Today’s sentence shows that star power does not entitle people to a free pass.  Together with our partners at the IRS, we will vigorously enforce our tax laws to make sure that people pay their fair share.”

According to the Indictment and statements made in open court:

SIMMONS worked as a recording artist, performer, and actor.  Beginning in 1997, SIMMONS released a series of hip-hop albums that sold millions of records.  Many of his albums went platinum and occupied the top positions on musical charts.  During his career, SIMMONS has performed at venues across the United States and around the world, and has acted in motion pictures.

As a result of the income SIMMONS earned from sources including musical recordings and performances, from 2002 through 2005 he incurred federal income tax liabilities of approximately $1.7 million.  Those liabilities went unpaid, and in 2005, the IRS began efforts to collect SIMMONS’s unpaid tax liabilities. 

During the period from 2010 through 2015, SIMMONS earned more than $2.3 million, but SIMMONS did not file personal income tax returns during that time period.  Instead, he orchestrated a scheme to evade payment of his outstanding tax liabilities, largely by maintaining a cash lifestyle, avoiding the use of a personal bank account, and using the bank accounts of nominees, including his business managers, to pay personal expenses.  For example, SIMMONS received hundreds of thousands of dollars of royalty income from his music recordings.  SIMMONS caused that income to be deposited into the bank accounts of his managers, who then disbursed it to him in cash or used it to pay his personal expenses.  SIMMONS also participated in the “Celebrity Couples Therapy” television show in 2011 and 2012 and was paid $125,000 for his participation.  When taxes were withheld from the check for the first installment of that fee by the producer, SIMMONS refused to tape the remainder of the television show until the check was reissued without withholding taxes.

SIMMONS took other steps to conceal his income from the IRS and others, including by filing a false affidavit in U.S. Bankruptcy Court that listed his income as “unknown” for 2011 and 2012, and as $10,000 for 2013.  In fact, SIMMONS received hundreds of thousands of dollars of income in each of those years.

In addition to his prison sentence, SIMMONS, 47, of Yonkers, New York, was sentenced to three years of supervised release and ordered to pay $ 2,292,200 in restitution to the IRS.  

Mr. Berman praised the work of the Internal Revenue Service, Criminal Investigation.

Bronx Man And Staten Island Man Arrested For Stealing Over $900,000 In Produce And Services

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Bethanne M. Dinkins, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG”), and Daniel D. Brownell, the Commissioner of the New York City Business Integrity Commission (“BIC”), announced today the unsealing of a complaint charging ROBERT GUILIANO and RODIN DIAZ with wire fraud and conspiracy to commit wire fraud in connection with a scheme to steal more than $900,000 from produce growers, shipping services providers, and others.  GUILIANO and DIAZ were arrested this morning and were presented this afternoon before Magistrate Judge Barbara C. Moses in federal court in Manhattan.  

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Robert Guiliano and Rodin Diaz engaged in a long-term fraud, stealing nearly $1 million in sweet potatoes, peppers, and other goods and services from small farms and businesses located across the United States.  Thanks to the hard work of the BIC, NYPD, and USDA, their scheme has come to an end.”  

USDA-OIG Special Agent-in-Charge Dinkins said:  “The USDA strives to ensure integrity within the produce industry through its administration of the Perishable Agricultural Commodities Act, which protects businesses dealing in fruits and vegetables by establishing and enforcing a code of fair business practices and helping to resolve disputes.  When presented with evidence of extensive fraud being committed against hardworking produce growers by entities not licensed under PACA, we were glad to assist our investigative partners in identifying and holding accountable those responsible.”

Business Integrity Commission Commissioner Daniel D. Brownell said:  “The defendants’ alleged actions undermine the integrity of New York City’s wholesale markets.  The NYC Business Integrity Commission, along with our law enforcement partners, will continue to protect the markets and their participants from those who seek to prey on them through fraudulent schemes such as the one the defendants have been charged with today.”

According to the allegations in the Complaint unsealed today in Manhattan federal court:[[1]]

GUILIANO and DIAZ used multiple corporate entities and fictitious names in order to obtain produce and shipping services on credit, for which the defendants did not pay.  To further their scheme, GUILIANO and DIAZ represented that they were independent businessmen operating within the produce industry when, in fact, they were co-conspirators working together to defraud victims of goods and services worth over $900,000. 

GUILIANO, 40, of the Bronx, New York, and DIAZ, 53, of Staten Island, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

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

Mr. Berman praised the outstanding investigative work of the Business Integrity Commission, the New York City Police Department, and the United States Department of Agriculture. 

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

A.G. Schneiderman Announces Indictment In Bid-Rigging Scheme, Charging Two Defendants With Colluding To Fix Construction Prices For Luxury Brooklyn Building

Christopher Chierchio and Anthony Milohnic Charged with Felony Donnelly Act Violations

Chierchio – A Reputed Genovese Mafia “Soldier” – Also Charged with Criminal Tax Fraud for Attempting to Evade Over $94,000 in Personal Income Tax Liability

  Attorney General Eric T. Schneiderman today announced the arrest and indictment of Christopher Chierchio and Anthony Milohnic for their role in a bid-rigging scheme – a class E felony – in which they allegedly colluded to ensure a lack of competition for the plumbing, sprinkler, and HVAC bids for a new luxury residential building at 613 Baltic Street in Brooklyn. Chierchio is also charged with Criminal Tax Fraud – a class C felony – for his alleged evasion of $94,094 of personal income taxes owed since April 2016.

“We have zero tolerance for crooks who try to game the system to line their pockets,” said Attorney General Schneiderman. “We'll continue to work with our partners in law enforcement to crack down on bid-rigging, tax fraud, and all other forms of corruption.”

These arrests are the result of an investigation conducted by Attorney General Schneiderman’s Organized Crime Task Force (OCTF), in collaboration with the New York City Police Department’s Criminal Enterprise Investigations Section (NYPD-CEIS), the New York City Department of Investigations (DOI), the United States Department of Labor - Office of Labor Racketeering and Fraud Investigations, and the New York State Department of Taxation and Finance. That investigation included the scrutiny of intercepted communications from court-authorized wiretaps, the execution of search warrants, and the review of financial records. These indictments are an offshoot of a previous joint OCTF/NYPD investigation, “Operation Shark Bait,” which resulted in the indictment and arrest of 13 defendants for Enterprise Corruption in Brooklyn.

DOI Commissioner Mark Peters said, “Bid-rigging undercuts fairness and equality in the contracting process. DOI will continue to work with our law enforcement partners to expose and stop this type of pernicious corruption.”

According to the indictments, which were unsealed today in New York County Supreme Court, Christopher Chierchio, 49, of Staten Island, is charged with Agreement, Arrangement, or Combination in Restraint of Trade or Competition, in violation of the New York State Donnelly Act, as well as Criminal Tax Fraud in the Second Degree. If convicted of both counts, he faces up to 19 years in prison.Chierchio is a reputed “soldier” in the Genovese organized crime family of La Cosa Nostra. Anthony Milohnic, 43, of North Merrick, was also charged with the Donnelly Act violation.  

The tax indictment against Chierchio is a result of a joint investigation by OCTF and the New York State Department of Taxation and Finance’s Criminal Investigations Division. 

The Attorney General would like to thank New York County District Attorney Cyrus Vance, Jr. for his cooperation in this matter, and Kip Brailey, Tansey Brent, and John Yaros of the United States Department of Treasury’s Financial Crimes and Enforcement Network (FinCEN) for their assistance throughout this investigation.

The charges against the defendants are merely accusations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

Manhattan U.S. Attorney Announces $10 Million Settlement Of Civil Fraud Lawsuit Against Centerlight Healthcare

CenterLight Healthcare Admits That 186 Adult Home Residents Did Not Receive Required Services During Certain Months and That It Failed to Timely Dis-enroll Residents From Its Managed Long-Term Care Plan

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge for the New York Office of Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), announced today a settlement of a civil fraud lawsuit against CenterLight Healthcare, Inc. (“CENTERLIGHT”), for collecting monthly Medicaid payments for 186 adult home residents who frequently did not receive required services while enrolled in CENTERLIGHT’s managed long-term care plan. 

The settlement resolves allegations that CENTERLIGHT submitted false claims to Medicaid to receive these payments.  Under the terms of the settlement approved yesterday by U.S. District Judge Lewis A. Kaplan, CENTERLIGHT must pay a total sum of $10 million, with $4 million going to the United States and the remaining amount going to the State of New York.  In the settlement, CENTERLIGHT admits that the 186 adult home residents did not receive community-based long-term care services during certain months that they were enrolled in CENTERLIGHT’s managed long-term care plan.  “CENTERLIGHT also admits that it failed to timely dis-enroll these adult home residents from its plan and that, as a result, CENTERLIGHT collected Medicaid payments to which it was not entitled.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “CenterLight Healthcare collected millions of dollars in Medicaid payments to provide long-term care services to adult home residents in its managed care plan, but frequently failed to deliver these services.  This Office is committed to holding recipients of government health care funds accountable when they fail to provide the care and services the government pays them to provide.” 

HHS-OIG Special Agent in Charge Scott J. Lampert said:  “CenterLight’s conduct compromised the integrity of the Medicaid program and failed to ensure that quality health care services were provided to those that needed them most.  HHS-OIG is committed to holding providers accountable for their practices.”

CENTERLIGHT administered a managed long-term care plan for Medicaid beneficiaries pursuant to a contract with the New York State Department of Health (the “Contract”).  To be eligible for enrollment into a managed long-term care plan, a Medicaid beneficiary must, among other things, be assessed as needing community-based long-term care services for more than 120 days from the effective date of enrollment.  These services include nursing services in the home, therapies in the home, home health aide services, personal care services in the home, and adult day health care.  In exchange for arranging and providing these services, CENTERLIGHT received monthly payments of approximately $3,600 - $3,800 for each member.  CENTERLIGHT contracted with licensed home care services agencies that were supposed to provide skilled nursing and home health aide services to the hundreds of adult home residents enrolled in CENTERLIGHT’s managed long-term care plan.  

As alleged in the United States’ Complaint filed in Manhattan federal court, CENTERLIGHT did not ensure that these agencies consistently provided required services to adult home residents, and failed to ensure that these vulnerable members’ medical needs were met.  Despite being aware that some of the agencies it hired provided a substandard level of care and did not maintain proper documentation reflecting the services provided, CENTERLIGHT failed to promptly take necessary steps to address these issues.  With respect to the 186 adult home residents who are the subject of the settlement (the “186 Members”), CENTERLIGHT submitted or caused to be submitted claims to Medicaid for payments for months during which no community-based long-term care services were provided to the member.  Indeed, many of the 186 Members did not receive any community-based long-term care services for most of the months during which they were enrolled in CENTERLIGHT’s managed care plan.

As part of the settlement, CenterLight Healthcare admits, acknowledges, and accepts responsibility for the following conduct:

• The 186 Members did not receive required community-based long-term care services during certain months that they were enrolled in CENTERLIGHT’s managed long-term care plan. 

• CENTERLIGHT failed to timely dis-enroll the 186 Members even though they were no longer eligible for its managed long-term care plan and, as a result, CENTERLIGHT received capitation payments to which it was not entitled.

• CENTERLIGHT failed to adequately oversee and monitor the care provided by the home care services agencies to the 186 Members to ensure that these members received the services required by the Contract.

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.  The Government previously intervened in this whistleblower lawsuit and, in January 2016, entered into a $46.7 million settlement with CENTERLIGHT to resolve allegations relating to the use of social adult day care centers to enroll ineligible members in CENTERLIGHT’s managed long-term care plan.  CENTERLIGHT sold its managed long-term care plan in early 2017.

Mr. Berman thanked the Office of the Inspector General for HHS for its assistance.  Mr. Berman also thanked the Medicaid Fraud Control Unit of the New York State Attorney General’s Office for its investigative efforts and work on the case.    

A.G. Schneiderman Announces $10.3 Million Joint State-Federal Settlement With CenterLight Over False Medicaid Billing

CenterLight Knowingly Submitted Billing for Managed Long-Term Care Program Services That Were Never Provided, Then Failed to Repay Medicaid for Falsely-Obtained Payments

New York’s Medicaid Program to Recover $6.36 Million in Restitution and Penalties

  Attorney General Eric T. Schneiderman announced a joint state-federal settlement with CenterLight Health System, Inc. and CenterLight Healthcare, Inc. (together, “CenterLight”) over false Medicaid billing. CenterLight will pay $10.36 million to settle state and federal allegations that its former managed long-term care plan (“CenterLight MLTCP”) submitted fraudulent requests to New York’s Medicaid program for monthly premiums and failed to repay Medicaid for falsely-obtained payments, violating New York and federal False Claims Acts. New York’s Medicaid program will receive $6.36 million in restitution and penalties from the total settlement payment.

“When a care provider submits phony bills to Medicaid, they rip off New Yorkers and undermine the integrity of our Medicaid system,” said Attorney General Schneiderman. “Today’s settlement should serve as another reminder that we will hold accountable those who seek to game the system for their own benefit.”

The settlement agreement resolves New York State and federal allegations thatCenterLight Healthcare:

(a) submitted false claims for monthly capitation payments for 186 CenterLight MLTCP members who lived in adult homes and who, for at least some portion of their enrollment in the CenterLight MLTCP, did not receive community-based long-term care services as required by contract and therefore should have been dis-enrolled; and

(b) knowingly failed to repay Medicaid for monthly capitation payments that CenterLight Healthcare received for many of the 186 Adult Home MLTCP Members after it became aware that the members should have been dis-enrolled earlier, meaning that CenterLight Healthcare was not entitled to those payments.

Click here to view a copy of the settlement agreement.

Medicaid is a jointly-funded state and federal program that provides health care to needy individuals. Managed Long Term Care plans (“MLTCs”) receive monthly capitation payments from Medicaid – similar to insurance premiums – for each member enrolled in the MLTC plan, in exchange for arranging and providing certain community-based long-term care services (“CBLTC”), such as skilled nursing services in the home, therapies in the home, home health aide services, personal care services in the home, and adult day health care. To be eligible for enrollment into an MLTC plan, a Medicaid beneficiary must, among other things, be assessed as needing CBLTC services for more than 120 days from the date of enrollment. CenterLight Healthcare contracted with licensed home care services agencies to provide skilled nursing and home health aide services to CenterLight MLTCP members who resided in adult homes, including the 186 Adult Home MLTCP members at issue in the case. 

In the settlement, CenterLight admitted that from April 2012 to September 2015, the 186 Adult Home MLTCP members did not receive the required CBLTC services for certain enrollment periods, and that for a number of individuals there was no record that they received CBLTC services for most of their period of enrollment. CenterLight Healthcare also admitted that it failed to timely disenroll the 186 Adult Home MLTCP members, even though they were no longer eligible for MLTCP services. CenterLight Healthcare failed to repay Medicaid for the monthly payments that it knew it had improperly received for those members. During that time, the payments that CenterLight Healthcare received from Medicaid for providing services to MLTC members were generally $3,800 to $4,200 per member per month.

This is the second settlement reached with CenterLight regarding operation of the CenterLight MLTCP. In January 2016, the court unsealed settlement agreements by the New York Attorney General and the U.S. Attorney’s Office with CenterLight for nearly $47 million to settle allegations relating to the use of social adult day care centers to enroll members in the CenterLight MLTC Plan. A year later, on or about January 31, 2017, CenterLight sold the CenterLight MLTC Plan to another provider.

This investigation was initiated after a whistleblower filed a lawsuit under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive a portion of the settlement proceeds after full payment by CenterLight. The investigation and settlement were coordinated between the U.S. Attorney’s Office for the Southern District of New York and the New York State Attorney General’s Office.  

Bronx Chamber of Commerce - Bronx Business Awards Gala April 18, 2018

   

he Bronx Version of the Academy Awards

RSVP today for discounts to attend

Bronx Business Awards 2018 Annual Gala 

Wednesday, April 18, 2018, 5:30-10:30 pm
Marina del Rey Caterers, Bronx NY

Honoring

The Perez Family, Mastermind, Ltd.; Developer of the Year

Gino's Pastry Shop; Made in the Bronx Award of the Year

Bronx Community College; Institutional Member of the Year

Third Avenue BID; Non-Profit of the Year

D & J Ambulette Services, Inc.; Health Provider of the Year

E.A.T. w/ Culinary Professionals, Inc.; 

M/WBE Company of the Year

Portion of the 2018 Gala Proceeds to benefit

Special Olympics New York

Key Note Speaker

Rob Walsh, Former Commissioner of  NYC Dept. Small Business Services

Mistress Of Ceremonies

Jacqueline Catona Wayans 

TV Host & Producer, "Don't Give Up and Win"

To make reservations, advertise in the Gala Journal, and/or be a Sponsor to the 2018 Gala Celebration. Call Phil Cardone 718-828-3900 or e-mail Phil@BronxChamber.org

Click for Reservations, Journal Advertising & Sponsorships

I look forward to seeing you at the excellent networking event!

Nunzio Del Greco
President and CEO
Bronx Chamber of Commerce

"Network For Business Success"
1200 Waters Place, Suite 106
Bronx, NY 10461
718-828-3900
Nunzio@bronxchamber.org

 

"You never know where your next big deal is going to come from"!

 

Engel Announces $10,149,029 to Montefiore Medical Center for Upgrades to Weiler Campus

  Congressman Eliot L. Engel, a top member of the House Energy and Commerce Committee, today announced the U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) has awarded $10,149,029 in Federal funding to Montefiore Medical Center for upgrades to the Center’s Weiler Campus in the Bronx. The grant will fund the electrical service upgrade project at Weiler Hospital including the design of a new underground electric service to replace the existing overhead service for the facility.

“This upgrade is vital to maintaining Montefiore Medical Center’s ability to serve the community,” Engel said. “Montefiore is the premier health care provider in the borough and as such we must continually look for new ways to help ensure it can provide that care, no matter the situation. By running the electrical service underground, the risk of disruption from animals and extreme weather is totally mitigated, so I am pleased these FEMA funds have been allocated for such an important project.”

“We are grateful to Congressman Engel for his unwavering support,”  said Steven M. Safyer, MD, President and CEO, Montefiore Medicine. “His tenacity in fighting for Montefiore and the millions of New Yorkers who rely on us, is greatly appreciated.”