Tuesday March 9 Webex Password bx0309.
Thursday March 11 Webex Password bx0311.
Friday, March 5, 2021
Senator Rivera on Legislature Stripping Governor Cuomo's Emergency Executive Powers
"As one of the few legislators who voted against granting Governor Cuomo emergency executive powers last March, I am pleased that today we are finally stripping them away. I firmly believe that the Executive has overstepped its boundaries and refused to work with the Legislature as a co-equal branch of government. We owe it to New Yorkers to address the public health crisis and our recovery process efficiently and transparently, which is what the governing structure in this new law will provide.
Furthermore, in light of recent events, it is abundantly clear that, at minimum, Governor Cuomo and his administration need increased oversight. They have demonstrated that they are more interested in selling books, taking victory laps and keeping the public in the dark about the impact of the pandemic rather than providing the Legislature with accurate information necessary to crafting policy on behalf of the New Yorkers that rely on us to do so."
John David McAfee And Executive Adviser Of His Cryptocurrency Team Indicted In Manhattan Federal Court For Fraud And Money Laundering Conspiracy Crimes
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JOHN DAVID MCAFEE, the founder of the McAfee antivirus software company, and JIMMY GALE WATSON JR., who served as an executive adviser of MCAFEE’s so-called cryptocurrency team (the “McAfee Team”), with conspiracy to commit commodities and securities fraud, conspiracy to commit securities and touting fraud, wire fraud conspiracy and substantive wire fraud, and money laundering conspiracy offenses stemming from two schemes relating to the fraudulent promotion to investors of cryptocurrencies qualifying under federal law as commodities or securities. WATSON, who was arrested last night in Texas, will be presented later today before a federal magistrate judge in the Northern District of Texas. MCAFEE is currently detained in Spain on separate criminal charges filed by the United States Department of Justice’s Tax Division.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, McAfee and Watson exploited a widely used social media platform and enthusiasm among investors in the emerging cryptocurrency market to make millions through lies and deception. The defendants allegedly used McAfee’s Twitter account to publish messages to hundreds of thousands of his Twitter followers touting various cryptocurrencies through false and misleading statements to conceal their true, self-interested motives. McAfee, Watson, and other members of McAfee’s cryptocurrency team allegedly raked in more than $13 million from investors they victimized with their fraudulent schemes. Investors should be wary of social media endorsements of investment opportunities.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, McAfee and Watson used social media to perpetrate an age-old pump-and-dump scheme that earned them nearly two million dollars. Additionally, they allegedly used the same social media platform to promote the sale of digital tokens on behalf of ICO issuers without disclosing to investors the compensation they were receiving to tout these securities on behalf of the ICO. When engaging in illegal activity, simply finding new ways to carry out old tricks won’t produce different results. Investment fraud and money laundering schemes carry a strict penalty under federal law.”
According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Indictment against JOHN DAVID MCAFEE and JIMMY GALE WATSON JR. and an earlier-filed criminal Complaint against MCAFEE:[1]
During the period from in or about December 2017 through in or about October 2018, JOHN DAVID MCAFEE and JIMMY GALE WATSON JR., and other members of the McAfee Team, perpetrated two fraudulent schemes relating to the promotion to investors of cryptocurrencies qualifying under federal law as commodities or securities.
The first scheme involved a fraudulent practice called “scalping,” which is sometimes referred to as a “pump and dump” scheme. This scalping scheme generally consisted of the following. First, MCAFEE, WATSON, and other McAfee Team members bought large quantities of publicly traded cryptocurrency altcoins, which qualified as commodities or securities, at inexpensive market prices with advance knowledge that MCAFEE planned to publicly endorse them via his widely followed Twitter account (the “Official McAfee Twitter Account”). Second, after these purchases, MCAFEE published false and misleading endorsement tweets via his Official McAfee Twitter Account recommending those altcoins to members of the investing public for investment in order to artificially inflate (or “pump” up) their market prices without disclosing that MCAFEE owned large quantities of the promoted altcoins, even though MCAFEE had given false assurances that he would disclose such information in various tweets and public statements during the scalping scheme. Third, MCAFEE, WATSON, and other McAfee Team members then sold (or “dumped”) their respective investment positions in the promoted altcoins into the temporary but significant short-term market price increases that MCAFEE’s deceptive tweets typically generated, often for significant profits. From in or about December 2017 through in or about January 2018, MCAFEE, WATSON, and other McAfee Team members collectively earned more than $2 million in illicit profits from their altcoin scalping activities while the long-term value of the recommended altcoins purchased by investors declined substantially as of a year after the promotional tweets. From in or about December 2017 through in or about October 2018, MCAFEE, WATSON, and other McAfee Team members engaged in various efforts to liquidate the digital asset proceeds of their scalping activities into United States currency.
In the second scheme, MCAFEE, WATSON, and other McAfee Team members also used MCAFEE’s Official McAfee Twitter Account to publicly tout fundraising events called “initial coin offerings” (“ICOs”) in which startup businesses (“ICO issuers”) issued and sold digital tokens qualifying as securities to the investing public, without disclosing and, in fact, concealing that the ICO issuers were compensating MCAFEE and his team for his promotional tweets with a substantial portion of the funds raised from ICO investors. As the United States Securities and Exchange Commission had publicly warned, and as MCAFEE and WATSON well knew, the federal securities laws required them to disclose any compensation paid by ICO issuers for touting securities offerings styled as ICOs. From approximately on or about December 20, 2017 through on or about February 10, 2018, MCAFEE, WATSON, and other McAfee Team members collectively earned more than $11 million in undisclosed compensation that they took steps to affirmatively hide from ICO investors. In each instance, MCAFEE and WATSON failed to disclose to ICO investors that the ICO Issuers were paying the McAfee Team a substantial portion of the funds raised from ICO investors for their touting efforts, despite knowing that they were required to disclose such compensation under federal securities laws. Furthermore, in several instances during this ICO touting scheme, MCAFEE and WATSON took active steps to conceal their secret compensation arrangements with ICO issuers from ICO investors, and MCAFEE made false and misleading statements and omissions to hide such deals from ICO investors. From approximately in or about December 2017 through in or about October 2018, MCAFEE, WATSON, and other McAfee Team members engaged in various efforts to liquidate the digital asset proceeds of their ICO touting activities into United States dollars.
During the period from in or about December 2017 through in or about October 2018, MCAFEE and WATSON caused another McAfee Team member to engage in banking transactions to launder proceeds of the fraudulent ICO touting scheme.
In separate parallel enforcement actions, the United States Securities and Exchange Commission (the “SEC”) and Commodity Futures Trading Commission (“CFTC”) have filed civil charges against MCAFEE and WATSON.
MCAFEE, 75, and WATSON, 40, are United States citizens. Both of them are charged in a seven-count Indictment with one count of conspiracy to commit commodities and securities fraud, which carries a maximum potential sentence of five years in prison; one count of conspiracy to commit securities and touting fraud, which carries a maximum potential sentence of five years in prison; two counts of conspiracy to commit wire fraud and two counts of substantive wire fraud, each of which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum potential sentence of ten years in prison. In addition to potential prison sentences, each of these charges also carries potential financial penalties. The maximum potential prison sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences to be imposed on the defendants will be determined by the judge.
Ms. Strauss praised the work of the FBI on the investigation of this case and thanked the SEC and CFTC, both of which conducted separate parallel investigations, for their assistance.
This case is being handled by this Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samson Enzer and Elizabeth Hanft are in charge of the prosecution.
The allegations contained in the charging documents in this case are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and Indictment and the description of those charging documents set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Attorney General James Delivers Funding for Low- to Moderate-Income Homebuyers in New York State
KeyBank Agrees to Pay $5 Million to Be Used for Down Payment Assistance and to Lend $145 Million to Low- to Moderate-Income New Yorkers
New York Attorney General Letitia James today announced an agreement with KeyBank that will deliver funding to assist low- to moderate-income New Yorkers buy homes. The agreement resolves an investigation into the bank’s deceptive advertising practices surrounding the “KeyBank Plus” program that was intended to help New Yorkers cash checks for low fees, but was not as readily available as KeyBank’s advertising claimed. As part of the agreement, the Ohio-based bank has agreed to pay $5 million to the State of New York Mortgage Agency (SONYMA) to be used for down payment assistance for low- to moderate-income New York homebuyers, as well as lend $145 million to low- to moderate-income New York homebuyers over the next five years.
“Owning a home is a cornerstone of the American Dream, and today we bring New Yorkers one step closer to that goal,” said Attorney General James. “When companies fall short on the commitments they make to our communities, we will always hold them accountable and ensure they are providing the services that were promised. As a result of this agreement, we’re delivering much needed resources to help New Yorkers with buying a home and starting their future.”
After previously being implemented in other regions across the nation, the KeyBank Plus program was introduced in the Buffalo-Niagara region in 2018. The program was advertised as offering New Yorkers without a bank account a method to cash government and payroll checks at a low cost.
The Office of the Attorney General (OAG) launched an investigation into the KeyBank Plus program in Albany, Buffalo, Plattsburgh, Rochester, Syracuse, and Watertown, as well as in areas of Westchester County, and found that the program was not being implemented as advertised. Specifically, OAG found that KeyBank’s false and deceptive advertisements regarding KeyBank Plus violated both Executive Law § 63(12) and General Business Law Article 22-A. The matter was initially referred to OAG in 2019 by the Buffalo Niagara Community Reinvestment Coalition (BNCRC) and the Western New York Law Center (WNYLC).
As of result of this agreement, KeyBank has agreed to pay $5 million to SONYMA to be used for down payment and home-closing cost assistance for low- to moderate-income New Yorkers, in addition to agreeing to apply to become a participating lender with SONYMA. KeyBank has also agreed to provide $145 million in mortgage loans to low- to moderate-income New Yorkers over the next five years, with 50 percent of those funds going to borrowers in Western New York. Finally, KeyBank has agreed to waive certain fees associated with the loans — limiting their ability to profit off originating the loans.
“The Western New York Law Center congratulates and thanks the Attorney General’s Office for its extraordinary achievement in protecting the rights of low- to moderate-income consumers in their relationships with KeyBank,” said Steve Halpern, attorney at the Western New York Law Center. “By working with the Law Center and the Buffalo Niagara Community Reinvestment Coalition to reach an agreement with KeyBank regarding the KeyBank Check Cashing Plus Program, the office has shown diligence, commitment, and dedication in protecting consumer rights. The agreement will benefit untold numbers of underserved home buyers in both Western New York and the entire state.”
“On behalf of the Buffalo Niagara Community Reinvestment Coalition (BNCRC), we express our sincerest gratitude to the New York State Attorney General's Office,” said Kathryn Franco, chair of the Buffalo Niagara Community Reinvestment Coalition. “Without the assistance of the Attorney General, this impactful outcome would not have been possible. BNCRC is an example of dynamic and diverse partnership amongst community organizations that represent the interests of our most vulnerable residents in our city. The Coalition is dedicated to racial and economic justice. Without the vigilance, expertise, and collaboration of partners around the table and the diligent work of our New York State Attorney General, banks are able to continue to extract from and deny access to capital in our communities without any accountability or consequence. It is the Coalition's hope that KeyBank shows their dedication to Buffalo-Niagara without the need for further intervention by regulators.”
This agreement is just the latest in a long list of actions Attorney General James has taken to protect consumers in Western New York. In September 2020, Attorney General James obtained refunds for those who had purchased gift certificates from Simply Certificates only to find that their certificates expired before they were legally permitted to do so. Additionally, in April 2020, Attorney General James secured refunds for New Yorkers who had purchased season passes to local amusement park Fantasy Island, after the local attraction announced it would shut its doors before the season could start, but offered customers no refunds.
NYC GREEN RELIEF & RECOVERY FUND ANNOUNCES $845,000 IN GRANTS TO ADDRESS SYSTEMIC WEAKNESSES IN THE STEWARDSHIP OF THE CITY’S PARKS AND OPEN SPACE SYSTEM
Funding will support public awareness, green infrastructure program models, funding challenges, and more
The NYC Green Relief & Recovery Fund -- a growing alliance of foundations and corporations -- announced the selection of 8 new grant recipients through a competitive funding opportunity. The NYC-focused organizations will receive $845,000 in grants ranging from $50,000 to $200,000 to raise awareness of the critical importance of NYC’s parks and green spaces, while supporting needed systemic changes in the open space stewardship sector. The Fund is being administered by City Parks Foundation.
The COVID-19 pandemic has highlighted how essential open space is for the health and well-being of our communities, as well as stubborn inequities in their funding, accessibility, and maintenance. And with climate change intensifying, the City’s green spaces will become increasingly critical infrastructure, especially for the lower-income communities at greatest risk from heat waves, floods, and other extreme weather events. The nonprofits awarded grants will be addressing a range of systemic challenges and stubborn threats facing the open space system.
At the request of the NYC Green Fund, the Central Park Conservancy’s Institute for Urban Parks looked closely at the major challenges facing parks and open space in New York City [see literature review here]. This research and subsequent discussions with practitioners informed the review and selection process for this funding opportunity.
Projects supported:
- Gowanus Canal Conservancy: Awarded $100,000 to develop a collaborative approach to green infrastructure maintenance
- Municipal Art Society of New York: Awarded $70,000 to advocate for a unified approach by the government to managing and planning for open space in New York City
- Natural Areas Conservancy: Awarded $125,000 to identify alternative funding sources for natural area restoration and management
- New Yorkers for Parks: Awarded $100,000 to build a broad multi-sector coalition and educate the public and policy makers on existing acute park issues, showing how parks and park development go hand in hand with social and environmental justice, public health, climate resilience, affordable housing, and economic development and the public realm.
- North Brooklyn Parks Alliance: Awarded $50,000 to support North Brooklyn Open Space Coalition's district wide open space planning and platform creation in Brooklyn’s Community Board 1
- South Bronx Unite: Awarded $75,000 to spearhead the Mott Haven-Port Morris Waterfront Plan and promote environmental justice policies valuing green space
- The Trust for Public Land: Awarded $200,000 to conduct an economic benefits study of parks in NYC and initial analysis of funding options other than city tax dollars
- Waterfront Alliance: Awarded $125,000 to provide a pathway for NYC to open its waterfront lands to the communities that need them the most
Because the need is so great, we encourage those interested in supporting this work to donate now to The NYC Green Fund or contact NYCGreenFund@
OMH Issues $30 million RFP for Support Teams to Assist Vulnerable and Long-Term Homeless in NYC
The New York State Office of Mental Health (OMH) today issued a Request for Proposals (RFP) to develop eight treatment teams that will work with vulnerable New Yorkers living with mental illness, including people transitioning from inpatient care and long-term homeless people living on the streets and in the subway system.
The RFP will provide $30 million over five years to create eight teams utilizing an approach known as Critical Time Intervention (CTI). Six of the teams will work with individuals who are transitioning to the community after receiving inpatient care at a psychiatric facility. This is a critical time for a service recipient and many often don’t continue receiving the services they need.
The six Care Transition and Support Teams (CTSTs), made up of behavioral health professionals and peers, will promote continuity of care and ensure individuals remain connected to services. Two other teams, using the Critical Time Intervention model, will engage people with mental illness living on the street and in the subway system.
“This RFP will fund treatment techniques that are proven to be effective,” said OMH Commissioner Dr. Ann Sullivan. “The Care Transition and Support Teams concept helps people who are leaving inpatient care by connecting them to services in their own communities. This model has been shown to reduce ER visits and readmissions and improve health outcomes. Another vulnerable group, long-term homeless people with mental illness who are living on the streets and in the subway system, present additional challenges. But the teams created through this RFP will reach out to these individuals directly and bring the services they need to them.”
The CTI approach has been successfully used in the past to help veterans, people with mental illness, people who are homeless or involved with the criminal justice system and other groups.
Care Transition and Support Teams must partner with and be very knowledgeable about the continuum of behavioral health treatment services, housing options, benefits, and support services available. CTSTs must use data to help support recipients such as the use of PSYCKES when determining the best treatment services and supports necessary to promote the recipient’s community tenure and recovery.
The Request for Proposals can be found on the OMH Website A total of $30 million over five years will be available. Proposals are due by March 12, 2021 and the tentative award date is April 7, 2021. For more information, contact OMH Contract Management Specialist Carol Swiderski at carol.swiderski@omh.ny.gov.
Thursday, March 4, 2021
A RECOVERY FOR ALL OF US: CITY ANNOUNCES PUBLIC-PRIVATE PARTNERSHIP HAS DELIVERED WI-FI AND BROADBAND UPGRADES AT CORNERSTONE AND LEARNING LABS PROGRAMS IN 50 NYCHA COMMUNITY CENTERS
In partnership with The Information Technology Disaster Resource Center (ITDRC), The Rockefeller Foundation, Zoom, Cielo Scholarship Foundation, and EducationSuperHighway, the City enhanced access to remote learning for thousands of young people in NYCHA communities with hi-speed Wi-Fi and broadband at existing Cornerstones
Mayor Bill de Blasio, the New York City Mayor’s Office of the Chief Technology Officer (MOCTO), the New York City Department of Education (DOE), the New York City Department of Youth & Community Development (DYCD), and the COVID-19 Public-Private Partnership Czar today announced a public-private partnership with The Information Technology Disaster Resource Center (ITDRC), The Rockefeller Foundation, Zoom, Cielo Scholarship Foundation, and EducationSuperHighway has delivered Wi-Fi and broadband upgrades to ensure that students learning remotely in the Learning Labs K-8 component of Learning Bridges at DYCD-funded Cornerstone Community Centers have access to free high-speed connectivity.
More than 12,000 young people and adults will benefit from the enhancements during active programming at the centers, in addition to thousands of community members who can access the free Wi-Fi hotspots provided by ITDRC as a result of this partnership.
“Supporting our students as they navigate distance learning is critical, and connectivity is key,” said Mayor Bill de Blasio. “These community centers will be hubs for Internet access, and I am grateful for our partners for working with us to get this done.”
The sites with the greatest need were prioritized to receive the in-kind upgrades valued at more than a half million dollars following a survey of 143 programs that included Cornerstones, Learning Labs based in Cornerstones, and COMPASS Learning Labs in non-DOE buildings across the five boroughs. Of the 50 unique Cornerstones identified, twenty had both Wi-Fi and broadband installed, twenty received broadband, and ten were outfitted with Wi-Fi. In addition to supporting students in Learning Labs programs at Cornerstones, the enhancements will benefit young people and adults for years to come at Cornerstone afterschool, evening and weekend programs, and through community-accessible hot spots provided by ITDRC at 30 of the sites.
The City will continue efforts to address the digital divide in underserved communities through the Universal Solicitation for Broadband RFP, announced this week.
“This impressive cross-sector partnership will bring crucial support to young New Yorkers whose schooling has been moved online due to the pandemic,” said Deputy Mayor for Operations Laura Anglin. “The City of New York thanks The Information Technology Disaster Resource Center, The Rockefeller Foundation, Zoom, Cielo Scholarship Foundation, and EducationSuperHighway for their donations, and continued commitment to New York City students’ equitable access to education and technology.”
The public-private initiative was made possible due to the partnership between the City and the following organizations:
The Information Technology Disaster Resource Center (ITDRC) is a volunteer-driven non-profit that provides communities with the technical resources necessary to continue operations and recover after catastrophic events. As part of its projectConnect initiative, ITDRC provided and managed the installation of Wi-Fi and network equipment upgrades at the designated Learning Labs sites and is overseeing the transition to the new broadband system.
The Rockefeller Foundation, which works to bring together and support innovative initiatives to create meaningful change and drive development, is providing funds to support high-speed internet connectivity for students at the Learning Labs sites.
Zoom, the communications technology company that provides video, telephone and online chat services through a cloud-based peer-to-peer software platform, is providing funds to ensure quality, high-speed internet connectivity at each of the Learning Labs sites.
EducationSuperHighway, which works to create equitable digital learning opportunities for public school students by facilitating access to high-speed internet, played an integral role in creating this partnership. The national non-profit identified and brought together partners for this project, providing recommendations and expertise on broadband network architecture for the City.
Cielo Scholarship Foundation provided funding for broadband upgrades.
The following sites received upgrades (* denotes centers with community-accessible hot spots provided by ITDRC):
BRONX LOCATIONS
Cornerstone | Provider Name | Address |
Melrose* | BronxWorks | 286 East 156 Street |
Butler* | Directions For Our Youth (DFOY) | 1368 Webster Avenue |
Edenwald | Mosholu Montefiore Community Center (MCCC) | 1150 East 229 Street |
Marble Hill | Mosholu Montefiore Community Center (MMCC) | 5365 Broadway |
Boston Secor* | Mosholu Montefiore Community Center (MMCC) | 3540 Bivona Street |
Davidson* | SoBro | 1221 Prospect Avenue |
Fort Independence* | Mosholu Montefiore Community Center (MMCC) | 3350 Bailey Avenue |
“Accelerating broadband access for NYCHA families and young people is essential to ensuring that our residents are able to keep pace in a learning environment drastically altered by the COVID-19 pandemic,” said NYCHA EVP for Community Engagement and Partnerships Sideya Sherman. “We are excited to be a part of an initiative that will create additional hubs for expanding access to the technological resources public housing communities need and deserve during this unprecedented time.”
“We’re proud to participate in such an important initiative to expand connectivity at community centers throughout the city,” said Joe Hillis, Operations Director of ITDRC. “These enhancements will enable more students to connect for distance learning and improve the overall learning experience.”
“New York City has been home to The Rockefeller Foundation for over 100 years, and we’re proud to work with the city to support equitable access to technology that students need to continue their educations now and in the future,” said Zia Khan, Senior Vice President for Innovation, The Rockefeller Foundation.
“Zoom is honored to partner with New York City to make sure every young person has access to learning and to connecting to their teachers and classmates. This pandemic has called us together across public, private, and social sectors to ensure excellence, care and equity for this generation of students,” said Janine Pelosi, Chief Marketing Officer, Zoom.
“In order to alleviate future debt, The Cielo Scholarship Foundation is committed to funding underprivileged individuals’ education in trade and technology to ensure stable future employment. We understand that when students do not have access to technology, this can limit their ability to further their education. Cielo is committed to helping close this gap at all ages,” said the Cielo Scholarship Foundation.
“Since the earliest days of the pandemic, collaborations between the public and private sectors have created new opportunities to ensure every student has equal access to educational opportunity,” said Evan Marwell, Founder and CEO at EducationSuperHighway. “We are proud to be part of this partnership, ensuring New York City students have the connectivity they need to continue learning and fulfill their potential.”