Thursday, December 10, 2020

3 Defendants Arrested For Over $13 Million Fraud Scheme To Obtain Loans Intended To Help Small Businesses During COVID-19 Pandemic

 

Three Family Members Arrested for Misrepresenting Employee Payroll Figures to Receive COVID-19 Loan Funds for Chain of Family-Owned Nail Salons in New York Metropolitan Area and Other Businesses

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Amaleka McCall-Brathwaite, Eastern Region Special Agent-in-Charge of the Office of the Inspector General of the U.S. Small Business Administration (“SBA-OIG”), William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrests of NGOC MANH NGUYEN, a/k/a “Peter Nguyen,” VICTORIA DIEUY HO, a/k/a “Vicky Ho,” and DAT TAT HO for a fraudulent scheme to obtain over $13 million in Government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic.  In connection with loan applications for COVID-19 relief available from the Paycheck Protection Program (“PPP”) of the SBA, the defendants falsely and grossly overstated the number of employees and payroll at their nail salons and other businesses through fraudulent and doctored payroll and tax records in order to obtain larger loans.  The defendants were arrested this morning.  VICTORIA HO will be presented tomorrow in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.  NGUYEN and DAT HO will be presented in United States District Court for the Eastern District of New York in connection with these and other unrelated charges.    

Acting U.S. Attorney Audrey Strauss said:  “As alleged, these defendants conspired to rip off the SBA’s COVID-relief small business loan program and financial institutions by lying about how many people they employed in their family business and how much they paid those employees.  They allegedly exploited a program designed to provide vital funding for small businesses that are legitimately struggling in the midst of the pandemic.  Thanks to the combined efforts of the SBA, the FBI, and IRS-CI, the defendants face prosecution.”

SBA-OIG Special Agent-in-Charge Amaleka McCall-Brathwaite said:  “Falsifying documents to fraudulently gain access to SBA program funds is unconscionable.  OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”  

FBI Assistant Director William F. Sweeney Jr said:  “The benefits offered by the CARES Act for PPP loans were established to help small businesses survive during the pandemic. Unfortunately, the owners of Victoria Nails & Spa saw this program as their own personal piggy bank. Allegedly misrepresenting the number of employees on their payroll to obtain the funding, they deposited this money into accounts controlled solely by them. When the bank froze the funds, they froze as well, conducting Internet searches for topics related to PPP fraud. Today’s Internet search for ‘PPP Loan Fraud Arrests’ will certainly produce an unwanted result – one that includes the name of their company leading the headlines.”

IRS-CI Special Agent in Charge Jonathan D. Larsen said:  “In this difficult time when many Americans are struggling financially, it is repugnant that there are those who would fraudulently take advantage of relief efforts offered.  IRS-Criminal Investigation remains dedicated to working with our law enforcement partners to ensure that these types of fraud are investigated and the offenders are punished to the fullest extent of the law.”   

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

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP.  Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs.  Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application. 

NGUYEN, VICTORIA HO, and DAT HO are members of a family that owns a chain of over 15 nail salons called “Victoria Nails & Spa” and other companies (the “Victoria Companies”) in or around the New York metropolitan area, including the Bronx, Brooklyn, and Long Island.  From at least in or about April 2020 through at least in or about June 2020, NGUYEN, VICTORIA HO, and DAT HO engaged in a scheme to submit online applications to at least two financial institutions for a total of over $13 million in government-guaranteed loans for the Victoria Companies through the SBA’s PPP.  In connection with these loan applications, the defendants falsely and grossly overstated the number of employees at the Victoria Companies and wages paid to those employees in order to obtain larger loans.  In order to support the false representations in the loan applications about the number of employees at, and the wages paid by, the Victoria Companies, the defendants submitted fraudulent and doctored payroll and tax records.  In addition, the defendants falsely listed the same employees in applications for different nail salons to support the loan amounts applied for, and some purported employees were listed as employees of as many as seven different nail salons during the same time period.

Based on the fraudulent PPP loan applications submitted by NGUYEN, VICTORIA HO, and DAT HO, a total of more than $13 million in PPP loans were approved for the Victoria Companies and approximately $7.8 million in loan proceeds were disbursed into bank accounts controlled by NGUYEN, DAT HO, and other family members.  After the defendants learned that a hold was placed on bank accounts of the Victoria Companies that received PPP loans issued by one financial institution due to suspicion of fraudulent activity, one of the defendants conducted Internet searches for “PPP Fraud,” “PPP Loan Fraud Arrests,” and “How to get rid of a PPP Loan.”  The defendants thereafter withdrew the applications for and/or repaid the PPP loans for the Victoria Companies issued by that financial institution. 

NGUYEN, 44, and VICTORIA HO, 31, both of Hicksville, New York, and DAT HO, 33, of the Bronx, New York, are each charged with one count of conspiracy to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison; one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison; and one count of conspiracy to make false statements, which carries a maximum sentence of five years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Ms. Strauss praised the investigative work of the SBA-OIG, FBI, and IRS-CI, and noted that the investigation remains ongoing.  Ms. Strauss also thanked Homeland Security Investigations and the U.S. Attorney’s Office for the Eastern District of New York for their assistance with the investigation.

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

[1] As the introductory phrase signifies, the entirety 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.

Defendant Charged With Attempted Enticement Of 12-Year-Old And 9-Year-Old Girls

 

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced charges against STEVE ROSADO, a registered sex offender, for attempted enticement of two minor girls in New York, New York.  ROSADO was arrested yesterday evening and presented in Manhattan federal court today, before U.S. Magistrate Judge Sarah Netburn.

Acting U.S. Attorney Audrey Strauss stated:  “Steve Rosado allegedly attempted to harm society’s most vulnerable – trying to engage in sexual activity with two young children, whom he believed to be 12 and 9 years old – even after he had been convicted of sex offenses in the past and required to register as a sex offender.  I thank the FBI and the NYPD for their work in investigating and arresting Rosado before he could harm any more victims.”

FBI Assistant Director William F. Sweeney Jr. said:  “As alleged, Mr. Rosado knew exactly what he was doing when he arranged to have sex with two children, one of whom he believed was only 9 years old.  As a convicted sex offender, he knew the risk and allegedly took it anyway.  He is now in federal custody and facing prosecution.  It’s not easy to investigate sexual predators.  The agents, detectives, and analysts who constitute the FBI/NYPD Child Exploitation and Human Trafficking Task Force do this work each and every day hoping to stop the next offender from harming another child.”           

NYPD Commissioner Dermot Shea said:  “These charges, by the United States Attorney’s Office for the Southern District of New York reflect our continuing commitment to keep those would who prey on children from stalking our streets.  I praise our detectives and federal partners for their work in fighting on behalf of society’s most vulnerable individuals.”

According to the allegations in the Complaint charging ROSADO:[1]

On or about November 29, 2020, an undercover FBI agent (“UC-1”), posing as the mother of a 12-year-old girl and a 9-year-old girl, initiated a series of conversations on an instant messaging platform with an individual identified to be ROSADO.  Thereafter, UC-1 and ROSADO had numerous communications via the instant messaging platform, text message, and telephone call.

In these conversations, ROSADO repeatedly expressed, in graphic and unambiguous terms, his desire to engage in sexual activity with both children – including both oral and vaginal sex.  To help alleviate any concerns UC-1 might have regarding ROSADO having sexual relations with her young children, ROSADO provided UC-1 with his recent test results for COVID-19 and HIV, and he discussed what he and UC-1 could do if he were to impregnate one of the children.

  UC-1 and ROSADO arranged to meet at a bar in Manhattan on the evening of December 7, 2020, with the understanding that they would return to UC-1’s apartment afterward and ROSADO would then engage in sexual activity with the children.  On the evening in question, ROSADO met UC-1 at the agreed-upon location.  After the two of them left the bar and began walking toward UC-1’s purported apartment, law enforcement arrested ROSADO.  ROSADO was in possession of a backpack containing, among other things, a toothbrush, a change of clothes, and lubricant.

ROSADO is charged with one count of attempted enticement of a minor to engage in illegal sexual activity, in violation of Title 18, United States Code, Sections 2422(b) and 2, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and one count of committing the aforementioned offense while being required to register as a sex offender, in violation of Title 18, United States Code, Section 2260A, which carries a mandatory sentence of an additional 10 years in prison.

Ms. Strauss praised the outstanding investigative work of the FBI-NYPD Child Exploitation and Human Trafficking Task Force. 

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 [1] As the introductory phrase signifies, the entirety of the text 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.

Governor Cuomo Announces Launch of New York Forward Small Business Lease Assistance Partnership

 

Public-Private Partnership Between Empire State Development, Start Small Think Big and the New York State Bar Association

Will Provide Small Businesses and Landlords with Pro Bono Legal Assistance to Renegotiate Lease Terms in Wake of COVID-19

 Governor Andrew M. Cuomo today announced the launch of the New York Forward Small Business Lease Assistance Partnership. Recognizing the economic impact of COVID-19, this program will provide small businesses and their landlords with informational resources and pro bono assistance to help both parties reach mutually-beneficial lease workout agreements. This service is available to all New York State small businesses and landlords, and participation is voluntary. Over the next year, the partnership has the capacity to serve thousands of small businesses statewide.

"Small business are the backbone of any strong economy and it is critical that we work to find ways to support them during these difficult times," Governor Cuomo said. "The COVID-19 pandemic's impact on the economy has been nothing short of devastating, and through partnerships such as this, we can help to alleviate the burdens many business owners are facing. While a moratorium on commercial evictions is currently in place, this new public-private partnership will help provide an additional level of stability for small businesses and ensure they are able to play a role in helping build New York's economy back better than before."  

As part of this program, Empire State Development is partnering with the New York State Bar Association and Start Small Think Big, a New York-based non-profit organization dedicated to supporting small, under-resourced entrepreneurs with high-quality professional services. For this partnership, Start Small will be offering pro bono legal services from its network of more than 1,000 attorneys, to commercial tenants and landlords seeking lease amendments to cope with the impacts of COVID-19. The New York State Bar Association has served as the voice of the state's legal profession for more than 140 years and will support the recruitment and training of additional volunteer attorneys.

The Small Business Lease Assistance Partnership website includes information on the lease renegotiation process and details the different types of lease workouts available to help small businesses cope with the financial impacts of COVID-19. Those interested in pro bono assistance to initiate a lease renegotiation are encouraged to review and complete the partnership's intake form. After completing the form, each small business will receive an email detailing an estimated timeline for placement with a volunteer attorney. Once matched, the volunteer attorney will email the applicant to schedule an appointment. 

Empire State Development Acting Commissioner and President & CEO-designate Eric Gertler said, "The COVID-19 pandemic has unfortunately created new and unforeseen economic challenges for small business owners and landlords across the state. Working together with Start Small Think Big and the New York State Bar Association to establish this partnership, our goal is to help commercial tenants and landlords reach mutually-beneficial agreements by engaging in productive discussions and taking advantage of the free legal assistance provided through this program."

New York State Bar Association President Scott M. Karson said, "While businesses want to stay current on their rent, the terms of leases that were established pre-COVID may make it financially impossible for them to do so as the pandemic drags on. The New York State Bar Association has enlisted the services of volunteer attorneys, who are ready to help willing businesses and landlords renegotiate and reach a solution that works for everyone. We are providing these services free of charge because a strong economy is in everyone's best interest and helping New Yorkers in need is the highest calling of our profession."

This partnership furthers the state's ongoing efforts to mitigate pandemic-related commercial evictions. On October 20, Governor Cuomo signed an Executive Order extending the state's moratorium on COVID-related commercial evictions and foreclosures through January 1. This extends protections already in place for commercial tenants and mortgagors in recognition of the pandemic's financial toll on business owners. The extension of this protection gives commercial tenants and mortgagors additional time to catch up on outstanding rent or mortgage bills, or to renegotiate their lease terms to avoid foreclosure moving forward.  

The partnership is also the latest resource that furthers New York State's commitment to supporting small businesses struggling in the wake of COVID-19. In October, Governor Cuomo launched Empire State Digital, a new initiative accelerating New York State-based small businesses' ability to grow their online presence through a first-in-the-nation program with leading global e-commerce enablers, offering specialized solutions unique to the needs of the state's small businesses. Additionally, the New York Forward Loan Fund continues to provide working capital loans of up to $100,000 to help small businesses and non-profit organizations reopen.

Prominent Leaders Voice Strong Support for AG James's Lawsuit Against Facebook’s Illegal Monopoly

 

Federal, State, and Community Leaders, and Scholars Across New York and Nation Praise Fight Against Anticompetitive Conduct

 After New York Attorney General Letitia James filed a lawsuit yesterday against Facebook for illegally stifling competition to protect its monopoly power, elected and community leaders across New York and the United States came out and expressed their support for the lawsuit.

Federal Leaders

“Numerous reports have brought Facebook’s long history of anti-competitive behavior to light,” said U.S. Senator Amy Klobuchar (MN). “The company’s acquisitions of Instagram and WhatsApp have made the social media landscape less competitive and worse for users. Big technology companies like Facebook should not have free reign to impose their will on the market, and they must be held accountable when they attempt to do so. I’m glad the FTC and state enforcers are taking action to stop Facebook’s anti-competitive behavior.”

“Facebook’s reign of unaccountable, abusive practices against consumers, competitors and innovation must end today,” said U.S. Senator Richard Blumenthal (CT). “For too long, Facebook has avoided real competition through anticompetitive acquisitions, unchecked power over consumers, and the failure of federal antitrust enforcers to take action. The Federal Trade Commission and the state attorneys general’s cases against Facebook should set a new standard for how we fight back against entrenched corporate power. The case against Facebook is clear and compelling — competition has been stifled, innovation has suffered, and consumers have been harmed.”

“For nearly two years now, I’ve been calling to break up Big Tech — including Facebook,” said U.S. Senator Elizabeth Warren (MA). “I’d said before that the purchases of WhatsApp and Instagram should never have been approved and need to be reversed. Today, the FTC and 48 states agreed. Facebook is doing pretty well right now. They've acquired potential competitors WhatsApp and Instagram. More than 85 percent of all social networking traffic goes through sites owned or operated by Facebook. They've got a lot of power — and face little competition or accountability. And they’ve wielded that power over everything — over our economy, our society, and our democracy. They’ve bulldozed competition, used our private information for profit, and tilted the playing field. And in the process, they have hurt small businesses and stifled innovation. I want a government that makes sure everybody — even the biggest and most powerful companies in America — plays by the rules. And I want to make sure that the next generation of great American tech companies can flourish. More competition means more options for consumers and content creators, and more pressure on companies like Facebook to address the glaring problems with their businesses. Healthy competition can solve a lot of problems and it’s how we can protect the future of the Internet.”

“Rather than competing with Instagram and WhatsApp, it appears Facebook simply bought these firms to expand its dominance,” said House Judiciary Committee Chairman Jerrold Nadler (NY-10). “As a result, Facebook has illegally maintained its monopoly, allowing it to engage in other abusive conduct. This should never have happened in the first place, and accountability is long overdue. I applaud New York Attorney General Letitia James and the Federal Trade Commission for their efforts to promote competition by filing today’s complaints.”

“By breaking the rules to push out competition and dominate user data, Facebook has gamed the system to consolidate their own empire at the expense of consumers, small businesses, and our democracy,” said U.S. Representative Nydia Velazquez (NY-07). “I salute Attorney General James for leading this lawsuit and harnessing the power of our judicial system to hold Facebook accountable and restore the heathy competition that our economy needs to promote equal opportunities.”

“Facebook is a monopoly. Its abuse of its dominance harms competition, innovation, and other businesses. In the absence of competition and accountability, Facebook has harmed people's privacy and allowed disinformation to flourish on its platform, threatening our democracy,” said House Antitrust Subcommittee Chairman David N. Cicilline (RI-01). “Facebook has broken the law. It must be broken up. I applaud the FTC and state attorneys general who are leading this effort. This marks a major step in our ongoing work to bring the tech industry's monopoly moment to an end.”

“Facebook is absolutely an out-of-control monopoly — one that has abused its market power to squash competition, manipulate democracies, and crush journalism,” said U.S. Representative Alexandria Ocasio-Cortez (NY-14). “Thank you to New York Attorney General Letitia James for leading the way.”

Community Leaders

“Yesterday, the state attorneys general filed an antitrust case against Facebook that couldn’t have come at a more crucial time in our nation’s history,” said Sally Hubbard, director of enforcement strategy, Open Markets Institute. “Facebook’s role as a gatekeeper of speech has had a devastating impact on the marketplace of ideas, the public sphere of debate, and our elections. Facebook has maintained its monopoly power not by outperforming competitive threats, but rather by muscling them out of the competition altogether or by buying them. The evidence that Facebook has violated Section 2 of the Sherman Act and Section 7 of the Clayton Act is overwhelming.”

“We are very pleased to see an overwhelming bipartisan group of states, led by New York Attorney General Letitia James, bring a long-awaited case against Facebook for its blatant efforts to squash competition, both by buying out nascent competitors and by abusing its access to data about consumers,” said Jason Kint, CEO, Digital Content. “Beyond the obvious harm to the news, entertainment, and advertising industries, Facebook’s anticompetitive behavior has had a subversive effect on democracy and public discourse around the world.”

“Attorney General Letitia James has built a watertight case and an historic bipartisan coalition of state and territorial enforcers to send a much-needed message: Facebook is not above the law,” said Sarah Miller, executive director, American Economic Liberties Project. “As the complaint makes clear, Facebook's dominance was not built through innovation, but through illegal acquisitions and brazenly anti-competitive conduct. This suit is an affirmation that leaders like Attorney General James are ready and willing to protect the public by enforcing the law against the world's most powerful corporations, including by pursuing structural remedies, and reinforces the critical role of antitrust in securing fair competition, promoting innovation, and protecting democracy from monopoly power.”

“The American Antitrust Institute applauds New York and the broad coalition of states for their unified, bipartisan support for strong antitrust enforcement against Facebook,” said Diana Moss, president, American Antitrust Institute. “This action highlights the essential role of state enforcement, delivering the message that the attorneys general will stand up for competition and consumers to protect our markets and the U.S. economy.”

Scholars

“This is an important lawsuit that raises significant concerns about the WhatsApp and Instagram acquisitions, the abuse of tools that apps needed to connect with Facebook, and harm to consumers,” said Michael A. Carrier, distinguished professor, Rutgers Law School.

“The state and FTC antitrust complaints against Facebook are excellent and crisply state the relevant antitrust issues. This is going to be a fascinating, landmark case,” said Einer R. Elhauge, Carroll and Milton Petrie professor of law, Harvard University.”

“Facebook's anti-competitive behavior has resulted in a skyrocketing of non-economic costs for parents, citizens, and entrepreneurs,” said Scott Galloway, professor of marketing, New York University Stern School of Business. “There are few firms that have done this much damage, at this scale, this fast. Attorney General James’ lawsuit is a powerful step to restoring a healthier media ecosystem, and national dialogue.”

“Facebook’s idea that 'it is better to buy than compete' is totally contrary to the letter and spirit of antitrust laws,” said Scott Hemphill, Moses H. Grossman professor of law, New York University. “Dominant firms have to compete on the merits with innovative startups that are emerging rivals, not buy them up. This litigation is important to restore competition and protect innovation in social networking and beyond.”

“Facebook beat its early competitors by loudly promising to protect users’ privacy and personal information,” said Matthew Hindman, associate professor of media and public affairs, George Washington University. “This filing, by a broad bipartisan coalition, is an important first step toward reversing Facebook’s illegal bait-and-switch.”

“The lawsuit filed by 48 AGs is a landmark effort to ensure that antitrust laws are enforced in the digital age,” said Lina Khan, associate professor of law, Columbia University School of Law. “The states collected reams of evidence showing that Facebook engaged in a series of illegal acquisitions and business practices, designed to maintain its monopoly in violation of antitrust laws. Their work evinces a sophisticated understanding of digital markets and the harm that Facebook's monopolization has produced.”

“It is time — some might say past time — to address the undisputed power and alleged anticompetitive behavior of the tech giants,” said John B. Kirkwood, professor of law, Seattle University School of Law. “In October, the Justice Department and eleven states sued Google. Now, the FTC and forty-eight states have sued Facebook. Everyone knows that Facebook has enormous power. This action asserts that that power is monopoly power and that Facebook gained it, in part, through illegal tactics, including acquiring start-ups that would have challenged Facebook’s dominance. If these charges are true, Facebook has harmed users and advertisers, and some form of break-up has to be considered. These actions are important for consumers and competition.”

“Just two years ago, we wondered how our antitrust laws might hold our tech titans to account. In just a short span of time, we bridged that gap,” said Dina Srinivasan, author and fellow, Thurman Arnold Project at Yale University. “I am glad to see New York take a lead on Facebook. Its social network is still free, but Facebook has harmed people in other ways, including when it comes to their privacy.”

“Absolutely groundbreaking lawsuit led by Attorney General Letitia James, 48 states suing to break up Facebook for ‘buying and burying,’ illegally acquiring competitors in a predatory manner and cutting services to smaller competitive threats,” said Zephyr Teachout, author and professor, Fordham University’s School of Law. “What a great day for the future of the internet.”

“Attorney General James’ Facebook lawsuit is centered on the core gospel of the antitrust law: that acquiring or neutralizing your competitors is not a legal business model,” said Timothy Wu, Julius Silver professor of law, Columbia University School of Law. “The many, highly damning documents quoted make it clear that Facebook saw a path forward that depended on eliminating competitive threats, one way or another. As such, the complaint brings to life the legal phrase 'unlawful monopoly maintenance.'”

Mayor de Blasio Morning Informational COVID-19 Session

 

Mayor Bill de Blasio: Good morning, everybody. Well, it is a season, a very special season and a time for us all to support each other, believe in each other. And today we prepare for Hanukkah and I want to wish a very Happy Hanukkah to all. This is a time to think about what the holiday tells us. And it talks all about light and hope and faith and perseverance. And it's a time when people support each other and show their love for each other. Obviously, this year, the gatherings have to be different. People have to watch out for each other. That's another way of celebrating the holiday and all the holidays this season. Watch out for each other, make sure you do your celebrations in a way that really is all about the health and the safety of everyone you love. But it's a special time, it's a time to celebrate. And what a perfect symmetry that Hanukkah comes just at the time when we expect the first shipments of a vaccine to give us hope, to shed light, to remind us that our persistence will be rewarded here in the city, and we will be turning the page in the months ahead.    

   

And speaking of turning the page, kids are back in classrooms, turning the pages of their textbooks today. Another step forward for our schools. This week we have seen our younger kids come back to school, pre-K, 3-K, K-through-five. Today, our special education kids in District 75 come back to school. The Chancellor and I were in the South Bronx earlier in the week to see kids coming back, to see parents bringing them to school with such joy. Our educators also feeling such joy to see kids again. We continue to bring our kids back in a safe and smart way and, look, for our special education kids, it's so important for them to be back in the classroom with educators who love them, who care for them. So, this is another good day. And I want to say to all the families of kids in District 75, we have heard you. You said how important it is to have the support, to have the help of these caring professionals, and I’m very happy that kids in District 75 schools will be back in the classroom today.    

   

Now, today, we want to talk about our classrooms, our kids, our families, our parents, our teachers, and what lies ahead because we have a lot more work to do in this school year, for sure. In fact, most of the school year still lies ahead of us. And we'll be talking about that constantly in the days and weeks ahead, but it's also time to start looking to the future. It's time to start thinking about what our city is going to be like as the vaccine is distributed more and more, what our schools are going to be like in the future, how we can address the needs of our kids and families. And it's time to really reckon with a challenge that we're seeing very, very clearly, which is a way that COVID has stood in the way of our kids' education. The fact that there has been learning loss and there will still be learning loss ahead that we have to compensate for and then overcome. In fact, clearly there will be a COVID achievement gap, and we have to close that COVID achievement gap. Today, we're going to outline a plan that will take us forward into the next school year and give us the tools to close that COVID achievement gap. It is absolutely essential.    

   

Today, we will present a 2021 Student Achievement Plan. We want all New Yorkers to understand where we're going with our schools and the foundation, we’ll be laying through this school year to get ready for a very different school year that begins in September. In September, there will be a new normal. Let's be clear. Our approach will be based on everything we have learned through this very challenging time. But like with every crisis, we also in a crisis learn how to do new things and sometimes better things. We learn ways to serve our kids that are different and can reach them in a more individual manner. Our kids are going to need that individual help because they're overcoming so much. So, our 2021 Student Achievement Plan will lay out the ideas, the foundations of how we continue to improve the education of all children and build from there. But look, kids have gone through a lot. They have gone through a lot in terms of their education and the disruption to their education. They've gone through a lot emotionally, everything that's happened to them, to their families, to their community. And it's important to think about what has happened to our children. The Chancellor and I have talked about this a lot, the weight our kids are carrying that we must address. Again, that's both on the academic side and on the emotional side.    

   

Let me give you an example. Think about a child in our schools. I'm just going to paint you a picture. Let's call him Robbie. He's a third-grade child. Last year, he's going to third grade, February, things are going great, and then the coronavirus hits. So, his school year gets cut short. He's dealing with a disruption that no child could ever expect, or even could easily comprehend. Doesn't get all that he would have gotten had school been continuing as normal last school year. He starts to fall behind. He starts to experience some of that learning loss. He's struggling a little bit more. And then Robbie, like so many other kids, may have had losses in his family. He may have seen loved ones, get sick, or even lose a loved one. He may have seen families around him lose a loved one. The disruption, the confusion, think of what this does to a young mind. And we're encouraging our kids all the time to be all they can be and reach their potential. But imagine a child who has experienced disruption after disruption, and the traumatic realities that this virus has wreaked on this city and on so many families. Robbie needs more than to just come back to school next year, with the same old approach. That's not going to cut it. Robbie needs a lot more support and help than he would have if there had not been the coronavirus. So, how do we go about that? We provide the tools. We need to make sure that the way we assess where Robbie is, academically is better than ever. And that we understand exactly what he needs. We need to make sure that our teachers have new tools, new training, have the ability to use digital approaches in new ways. And teachers are constantly experiencing that this year and they're doing amazing things.    

   

And I want to just express my admiration for our educators who have had to innovate and innovate and innovate throughout this year. And they keep doing it and they learn new and better ways. Kids like Robbie are going to need that. They're going to need a very individualized approach. We know in a New York City public school classroom, 20, 24 kids, teachers do their best to reach each one, but they're going to need to do even more in this new normal and use the power of digital education to really individualize, tailor-make a plan for Robbie and for all other kids, to help them get the support they need and reach the heights they're capable of. All of these things have to happen. And our parents will need support too, because they'll need to understand how they can help their kids the best. And this is an area where there's long been a gap as well, the ability of our schools to fully engage our parents as academic partners. We're going to do that. We're doing it right now. We're going to build upon it with our Parent University, training parents how to be the best colleagues to teachers in the education of their child, how to help their child blossom.    

   

And finally, we have to think about the mental health needs of our children and address the trauma they've gone through and bring new tools to bear as we go into the new school year. So, again, our mission is clear, for the child I've presented to you today, Robbie, and for every child, we have to be there for them in brand new ways. We have to close that COVID achievement gap, and we have to have a clear plan going into next school year to maximize achievement. Our schools are going to come back stronger than ever. I don't doubt it. Our 2021 Student Achievement Plan will give us the foundation to make sure that that approach reaches every single child. Here to give you the outline of where we'll be going in 2021 and the years ahead, our Chancellor, Richard Carranza.   

   

Schools Chancellor Richard Carranza: Thank you, Mr. Mayor. When you put it in terms of Robbie, it brings it home to all of us. We're talking about our children. And while this past several months have been a whirlwind for all of us with constantly evolving public health guidance and a completely transformed school system. It's time that we think about recovery, literally looking up from the here and now and looking forward, where are we going? Every single educator and every single staff member supporting our schools and students has had their heads focused singularly on the work for months on end. With the first doses of the vaccine arriving next week, it's clearer than ever that we will return to a normalcy that is unlike the normal pre-COVID-19. Today, we want to look slightly further ahead and out of the immediate moment and into the path forward. We know that it will require a recovery period. And that's the vision and framework that we're sharing with you today. We have a lot of work to do alongside our brilliant educators and leaders across the Department of Education to build this out to completion. But today we begin by sharing how we'll get started.    

   

We will improve teaching and learning and continue to bring back our students by number one, getting a baseline of what ground we lost with low stakes diagnostic assessment citywide and interim assessments throughout the school year to monitor progress and tailor learning. You can't know where to focus unless you know what to focus on. And that's the whole point of these formative assessments. Number two, increasing access to high-quality digital curriculum at every single school in our school system. Three, launching a one-stop digital learning hub. This will be a new learning management system phased in and developed and customized for New York City schools that houses lessons and tools, and that can be shared across the city to help students, their teachers, and families better understand how a student is progressing. Our teachers have done remarkable work during this pandemic, and we're going to capture that work that's been developed here in New York City and make it available for everyone. Number four, we're deepening our professional development for our teachers, so our educators have the training and tools to close the gaps. We're expanding our Parent University to continue supporting parents with the tools they need to support and deepen learning at home in their language. And number six, we're confronting the trauma and medical health crisis faced by our students through a citywide approach. This vision is rooted in healing and in learning because our students need both. We'll have more to share in the weeks and months to come, but we're clear-eyed about where we need to go. And we're looking forward to building this out.    

   

And Mr. Mayor, if I could just add to Robbie's story, I want to tell you the story of Aashi. Aashi literally disappeared from the Department of Education when we transitioned to remote learning in March. We couldn't find her. We didn't know where she was. On the very first day of school on September 21st, she showed up at school and it turns out that her parents had both lost her jobs. They were evicted. She didn't have a device, they literally couch surfed, but she had heard that school was back in session and she showed up. And the principal that shared this story with me was so incredibly moved because she is not the only student that has undergone that kind of trauma. So, when we talk about trauma, that's the trauma we're talking about. Robbie and this Bengali student named Aashi, that's who we're fighting for. And thank you for leading us in that.   

   

Mayor: Thank you so much to answer. And you could hear the heart in the Chancellor's voice when he told that story. This is exactly right. We understand our kids have been through so much. We talk, I talk to parents, I talk to educators, I hear what it's like for kids this year, everything they've been through. We have to be there for them, but I also have immense faith in the ability of our educators to reach our kids and in the strength and resiliency of our kids and their ability to reach their potential. If we're there for them every step along the way, we can figure out what each child needs to succeed and how to support them, that's what this is all about.    

   

Now, look, this is all going to take a lot of hard work. I don't think anyone imagines anything different and New Yorkers are never afraid of hard work. Our educators have done amazing things in the course of this year, unprecedented things, but we're calling upon everyone who serves us to do that. And one of the other groups that has been absolutely outstanding in this crisis is our Test and Trace Corps. They have worked so hard. And remember, this was a brand-new organization, brand new approach had to be put together from scratch. Test and Trace Corps has done amazing work, reaching out deeply into the city to protect people and has helped us avoid thousands upon thousands of coronavirus infections. Well, here's an update – and you heard from Dr. Ted Long about a record that was set just earlier in the week, 95,000 – 95,000 New Yorkers got the coronavirus test on one day. We've never seen a number like that before. That's a really good sign, both of the reach of the Test and Trace Corps., encouraging people, the fact that so much testing has been made available successfully over the city, but the fact also that New Yorkers are hearing the message get tested. And particularly on Get Tested Tuesdays, people have been out there. 95,000 people on one day – well, that's extraordinary. Also, the week before Thanksgiving, half a million tests were given in a single week. These are the kind of numbers we dreamed of long ago that would really allow us to understand exactly what was happening and to protect the most people. Half a million New Yorkers in a single week got tested. We want to keep seeing that going forward. And I'm proud to tell you that now, based on a lot of innovations, including our extraordinary pandemic response lab – another thing that we started from scratch here in New York City, in the midst of this crisis, we now have a greater capacity to test New Yorkers than we've ever had before – 120,000 New Yorkers can now be tested in a single day. This is, again, a goal that seemed far away not that long ago, but we're here now – 120,000 people can be tested a single day.   

  

Now, New Yorkers, the tests are out there – so many people ready to serve you. We can get you a quick turnaround time on those results. It's fast, it's easy. Get on out there and get tested. It will help this city to move forward, but, more importantly, it will protect you and your family and everyone you love.   

  

Okay. Let's go over today's indicators. Number one, current hospital admissions – daily number of people admitted to New York City hospitals for suspected COVID-19. Today's report, 185 patients. So, we're below that threshold of 200, but it's still a high number. We’re going to keep working to get that down. And on the hospitalization rate, today's number, 2.41 per 100,000 New Yorkers. We want to get that number under two, so more work to do there. Next, current new cases – again, this combines probable cases with confirmed cases. Daily number of new cases on a seven-day average, today is 2,614 – very high, very much surpassing the target where we want to be – 550. It's going to take us a while to get back there, but we will. And the daily update on the seven-day rolling average, percentage of New York City residents testing positive – today's report, 5.32 percent. Again, we want to be under five. We're dealing with a challenge right now. What's the answer? Get tested, wear a mask, practice social distancing, do not travel, avoid indoor gatherings. If we keep doing all of that, we are going to get this number back down, especially with the vaccine arriving in a matter of days.   

  

CONSUMER ALERT: NYS DIVISION OF CONSUMER PROTECTION ALERTS CONSUMERS TO PRIVACY PRECAUTIONS WITH TECHNOLOGY TOYS

 

Technology Toys are Popular Gifts that are also Vulnerable to Hacking

Parents Should Take Precautions to Ensure Toys Properly Operate and Shutdown

 As part of its seven-part consumer alert holiday series, the New York State Division of Consumer Protection (DCP) is today alerting parents and families that Bluetooth and technology-enabled toys may be fun for families to interact with this holiday season, but these toys are also easy for hackers to access and manipulate for nefarious means. When children’s products, such as smartwatches, smart toys and gaming devices, are tested for vulnerabilities, results show exposures with microphone and camera access in sleep mode, Bluetooth connections without authentication, access to location information and conversation eavesdropping. 

As children interact with technology-enabled and connected toys, usage and personal information (like location) is continuously uploaded to company servers. Once a toy is vulnerable to a hack, that information can be easily accessed and collected. Additionally, when toys allow children to search and access the web, the toy can effortlessly misdirect children away from age appropriate sites. 

“Toymakers are in the business of making toys, not technology,” said Secretary of State Rossana Rosado, who oversees the New York State Division of Consumer Protection. “Making toys fun and easy to use often means technology and security take a back seat. New York families need to take extra precautions, especially when children are 35 times more likely to fall victim to identity theft.”

Steps to make technology-enabled toys safer:

  • Research complaints. Parent blogs, social media, and security company websites often sound the alarm well before news stories hit. Check for known security issues before considering a purchase.
  • Turn it off. When a child is done playing with a toy or leaves it, make sure the toy is first disconnected from the internet and then turned off. When toys remain connected to the internet in sleep mode, your personal privacy and information can still be accessed.
  • When children are playing with technology-enabled toys, watch their interactions closely to understand how the toys work and quickly identify when something is not right with a toy.
  • Secure WiFi. Never use technology-enabled toys on public WiFi. Hackers gain easy access to the toy and can use it to capture other protected information in the home.
  • Strengthen passwords. Make sure your passwords are unique and updated regularly. Try using a passphrase instead of a password and include special characters and numbers. If it’s difficult to remember so many passwords, try a password manager with multi-step authentication to manage your passwords.
  • Use parental controls. Many toy companies claim they want to protect your child’s information. See which companies offer the option to delete your child’s information and select that option. Also, understand what settings are defaulted when you use the toy and what additional settings you can adjust to further protect your child.
  • Read the policies. Companies are beginning to specify what information they store and share. Read the long policy documents to see what information is stored and what is used only for sign-up and then deleted. If this information is not clear, consider choosing another product.
  • Follow your data. Interactive toys may store data locally or in the cloud. Toys that do not connect regularly to the internet are less connected and less likely to be hacked. Either way, check whether toys can have data deleted or better still, reset to factory settings, before passing it on to another household.
  • Enter an alias. If setup requires additional information, provide a different name or nickname, birthdate and other important information. If the toy is hacked, this decreases the chance of child identity theft.
  • Technology is here to stay. Toys can provide an opportunity to talk with kids about staying safe online. For ideas, check out Common Sense Media: https://www.commonsensemedia.org/privacy-and-internet-safety.
  • Stay offline. Old-fashioned games, books and puzzles are making a comeback. Consider a family game night – without gaming consoles!

If you believe your child’s toy was hacked, report it to the Internet Crime Complaint Center.

For more information on Child Identity Theft, visit the Division of Consumer Protection website.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotectionTo view consumer alerts, consumers can visit https://www.dos.ny.gov/about/newsroom.html. The Division can also be reached via Twitter at @NYSConsumer or Facebook at www.facebook.com/nysconsumer.


Pelham Parkway Menorah and Christmas Tree Lighting

 

Due to the construction at White Plains Road and Pelham Parkway the traditional Menorah and Christmas Tree have been relocated this year to the corner of Pelham Parkway and Williamsbridge Road at the Peace Plaza.

On hand for the Menorah and Christmas Tree were a small select group of people which included Councilman Mark Gjonaj, Assemblywoman Nathalia Fernandez, Rabbi Saabia Pewzner, Bronx Jewish Community Council Executive Board member Steve Glosser, members of the 49th Precinct and a few others including technicians who were live streaming the event on Facebook. Due to the Pandemic members of the public were asked not to attend, but view the event on Facebook as it was happening.



Above - Councilman Mark Gjonaj, Assemblywoman Nathalia Fernandez, Rabbi Saabia Pewzner, and Steve Glosser.

Below - Rabbi Pewzner explains the miracle of Chanukah.





Above - The Menorah is Lit.

Below - The Christmas Tree is lit.


WHITE PLAINS ROAD BID HOLIDAY LIGHTS

 

Wednesday night the White Plains Road Business Improvement District lit the holiday lights that spread over White Plains Road from Lydig Avenue north to Pelham Parkway. 

Holiday lights were also put on Lydig Avenue from Holland Avenue east to White Plains Road. The Christmas Bicycle also made an appearance. 


Above - At the corner of Lydig Avenue looking north up White Plains Road. Councilman Mark Gjonaj, White Plains Road BID former Executive Director Felipe, Pelham Parkway Neighborhood Association Vice-President Steve Gkosser.

Below - On Lydig Avenue looking east to White Plains Road.




The Christmas Bicycle with Kevin Daolia.