Klein & Moya urge Federal Trade Commission to take serious action against Herbalife International

   As probe of multi-level marketing company comes to an end, legislators write to FTC Chairwoman to protect consumers from financial harm

State Senator Jeff Klein and Assemblyman Francisco Moya on Wednesday wrote to Federal Trade Commission Chairwoman Edith Ramirez to urge that federal regulators probing Herbalife International consider injunctive relief that includes sweeping reforms to the multi-level marketing companies business models to shield consumers from financial harm and fraud.

The FTC has been investigating Herbalife International and is reportedly near to announcing a resolution in the probe. Hundreds of former Herbalife distributors have submitted complaints to  state and federal authorities, each after losing thousands of dollars to the company.

Senator Klein and Assemblyman Moya recommended that the FTC require Herbalife to document and disclose its retail sales to participants who are not in the distributor network,  and release the average income and commissions earned by independent distributors.

“Herbalife should also be required to disclose to the public where nutrition clubs are located and provide regulators proof that these businesses comply with state and federal labor laws. Additionally, rewards designed to incentivize recruitment (e.g. Production Bonus) and the product purchasing requirements that encourage so-called inventory loading should be removed immediately,” Klein and Moya wrote.

Klein introduced legislation to protect consumers against multi-level marketing companies like Herbalife and level penalties against such companies that employ deceptive practices. Assemblyman Moya recently introduced companion legislation.

In New York City, Herbalife nutrition clubs are located in predominantly Hispanic neighborhoods. Lured by the promise of a “great business opportunity” where the American Dream of entrepreneurship is glamorized through testimonials where sellers say they earn millions, live in mansions and take extravagant trips, many wind up losing their life-savings.

Through a series of undercover investigations and victim interviews, Senator Klein has exposed Herbalife as a pyramid scheme, where distributors desperately try to climb up a ladder as they continue to invest.

Klein and Moya’s legislation would increase transparency, educate consumers and impose penalties on companies that do not comply with the law.

STATEMENT FROM BOROUGH PRESIDENT DIAZ RE: Review Board Approval of MTA Capital Plan

   “I am delighted with today's announcement, which represents a great day for public transportation in The Bronx, across the city and throughout the region. The Capital Plan Review Board’s approval of the Metropolitan Transportation Authority’s capital budget is a tremendous step forward. A fully-funded MTA capital plan is critical to not only the continued maintenance of our transit system but to the development of new infrastructure improvements, as well. 

"Most importantly, for my borough, this capital plan funds the long awaited, much anticipated East Bronx Metro North expansion. The establishment of new commuter stations in Co-op City, Morris Park, Parkchester/Van Nest, and Hunts Point will not only offer residents of these communities a new transportation option, it will open the East Bronx corridor to new residential and commercial development potential as well as reverse commute employment opportunities, and is the most significant infrastructure improvement our borough has seen in decades.

“I want to thank Governor Cuomo, Assembly Speaker Carl Heastie, State Senate Coalition Co-Leader Jeff Klein and the board of the MTA, especially Bronxites Fernando Ferrer and Charles Moerdler; as well as the numerous community and elected leaders who showed their support for this expansion, for their continued advocacy on behalf of this long-awaited project,” said Bronx Borough President Ruben Diaz Jr.

​Assemblyman Sepúlveda Backs Espaillat for Congress

  Bronx State Assemblyman Luis Sepúlveda announced his support for Adriano Espaillat in the race for Congress in District 13.

“Adriano Espaillat is an energetic champion for working men and women across this city. Whether it’s standing up for a real minimum wage that treats workers with dignity or the rights of tenants so they can stay in their communities, Adriano has been there for us,” said Assemblyman Luis Sepúlveda. “As a member of Congress, I know he will be a progressive force who we can trust to do what’s right for the Bronx. I’m proud to endorse Adriano Espaillat for Congress.”

“I am thrilled to have the support of a true leader who has been a partner in so many tough fights in Albany. From raising the minimum wage to $15 an hour, to providing real opportunities to the neighborhoods that need them most, Assemblyman Sepúlveda and I have worked together to uplift our communities. I look forward to continuing our work to unleash the full potential of the Bronx.”

The endorsement from Assemblyman Sepúlveda comes on the heels of several endorsements from prominent Bronx lawmakers and local leaders, including State Senator Gustavo Rivera, State Assemblymember Victor Pichardo, City Councilman Ritchie Torres, and Yudelka Tapia, Democratic District Leader in Assembly District 86. Espaillat won the Bronx in 2014 when he challenged retiring 45-year incumbent Charles Rangel.

The 13th congressional district stretches from Harlem to Inwood in upper Manhattan and covers parts of the Bronx.

New Speed Camera in North Riverdale, But is it in the Right Place

Be careful now by PS 81 cause they will get you coming and going. 

  Here is the newest 'Speed Camera' that was put up on Riverdale Avenue at the south exit of the Skyview Shopping Center. The question however, is this speed camera placed facing south on Riverdale Avenue (and of course as the road slopes down so cars will gain speed) within the PS 81 School Zone as required by state law. Then there is as you will see in the next two photos if the street light arm is in the radar circumference.

Above and Below - the question is - does the arm of the street light (and possibly the wires, and soon tree limbs) interfere with a proper speed reading? 

Above - The original speed camera car which was placed before PS 81 (on October 3, 2015) facing northbound on Riverdale Avenue.

Below - The Speed Camera which was put up shortly after we exposed the speed camera car.

So why did Mayor Dollar Bill de Blasio put the speed cameras north and south on Riverdale Avenue by PS 81? It surely wasn't because of the NYCDOT survey of speeding cars on Riverdale Avenue, because that survey was done of the cars speeding on Fieldstone Road heading past the Riverdale Country School. Source - Former Mayor Mike Bloomberg and his DOT commissioner at the press conference when the state legislature passed the speed camera law (June 2013) while Bloomberg was still mayor. They were then installed under Mayor Dollar Bill de Blasio.

Be careful now by PS 81 cause they will get you coming and going. 

Below - Mayor Dollar Bill on September 2, 2014 by PS/MS 95 with one of the new speed camera cars.

Attorney General Eric T. Schneiderman - Attacking the Heroin Epidemic in "Operation Smackdown"

Attorney General Schneiderman, joined by the New York State Police and other law enforcement officials, announced indictments of 72 individuals charged with operating two drug distribution rings in western New York. One ring, codenamed “Flowers,” allegedly sent heroin from New York City to Syracuse and then distributed in and around Syracuse. Authorities seized 10,750 bags of heroin – which the dealers referred to as “cupcakes” – over the course of the eleven-month investigation. The second ring, codenamed “Over the River,” alleges that 35 individuals sold cocaine in the suburbs of Syracuse and adjacent Oswego County. In the past week, the Attorney General’s office has announced the indictments of nearly 100 alleged narcotics distributors in the region. 

Defending the AG's Right To Investigate Potential Fraud

In response to a letter sent by House Republicans seeking to interfere with AG Schneiderman's investigation into potential fraud at ExxonMobil, a spokesperson for the Attorney General pushed back, asserting the office's right to pursue consumer, investor, and business fraud investigations on behalf of all New Yorkers:

“Attorney General Schneiderman has opened a significant investigation into whether  Exxon  committed securities fraud, business fraud, and consumer fraud in New York and all across America.  It is remarkable that a do-nothing congress that has refused to take any action on climate change is now attempting to disrupt this important investigation into potential corporate malfeasance…"

Read more from The Hill here.

Expanding Hepatitis C Coverage for New Yorkers

The Attorney General’s office continues to investigate numerous health insurers for improperly restricting coverage of Hepatitis C treatments and misleading their members about the scope of their coverage. In the Attorney General’s latest settlement, CDPHP has agreed to expand its Hepatitis C treatment coverage for New Yorkers on the blood-borne virus. 

Enforcing Environmental Law To Protect Clean Water

The Attorney General announced separate settlements with Home Depot and Lowe’s for alleged violations of New York State’s “Nutrient Runoff Law” that is designed to reduce water pollution caused by excess phosphorus running off lawns into the State’s waters. The office’s 2014 investigation found that 90% of Home Depot stores and Lowe’s stores had one or more alleged violations of the law, either displaying phosphorus-containing lawn fertilizers without required signage or commingling with phosphorus-free fertilizers. The settlements require both companies to comply with the law and pay penalties; Home Depot to pay $78,000 and Lowe’s to pay $52,000. 

Have a question, comment, or complaint? Click here. You can also learn more about the various initiatives of the Attorney General's office by visiting our website at ag.ny.gov. You can also call our General Hotline: 800-771-7755. 

Bronx Borough President Caribbean Heritage Month Celebration June 23rd

CANADIAN-IRANIAN CITIZEN SENTENCED IN MANHATTAN FEDERAL COURT TO THREE YEARS IN PRISON FOR CONSPIRING TO VIOLATE IRAN SANCTIONS

  Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that ALI REZA PARSA, a Canadian-Iranian dual citizen and resident of Canada, was sentenced on Friday, May 20, 2016, to three years in prison for his participation in a conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”) and the Iranian Transactions and Sanctions Regulations (“ITSR”).  PARSA was arrested in October 2014 following an investigation by the Federal Bureau of Investigation (“FBI”) and United States Department of Commerce, Bureau of Industry and Security (“BIS”).  PARSA pled guilty on January 20, 2016, before U.S. District Judge Ronnie Abrams, who imposed Friday’s sentence. 

Manhattan U.S. Attorney Preet Bharara said: “As he admitted in court, Ali Reza Parsa conspired to purchase high-tech electronic components – some used in the production of rockets and missiles – from American companies for eventual delivery to Iran through Canada.  He has now been sentenced to three years in prison for his violation of federal law.”

Assistant Attorney General John P. Carlin said: “Over the course of six years, Parsa repeatedly violated export control laws and aided Iranian entities in procuring high-tech electronic components that have both commercial and military uses.  With this sentence, he will be held accountable for circumventing important U.S. laws designed to protect our national security interests.  One of our top national security priorities remains safeguarding our national assets from those who may wish to do us harm.”

According to the Indictment filed against PARSA and other court documents publicly filed in this case and statements made in court proceedings, including Friday’s sentencing:

Between approximately 2009 and 2015, PARSA conspired to obtain high-tech electronic components from American companies for transshipment to Iran and other countries for clients of PARSA’s procurement company in Iran, Tavan Payesh Mad, in violation of U.S. economic sanctions.  To accomplish this, PARSA used his Canadian company, Metal PM, to place orders with U.S. suppliers and typically had the parts shipped to him in Canada or to a freight forwarder located in the United Arab Emirates, and then transshipped from these locations to Iran or to the location of his Iranian company’s client.  PARSA provided the U.S. companies with false destination and end-user information about the components in order to conceal the illegality of these transactions. 

PARSA’s criminal scheme targeted numerous American technology companies.  The components that PARSA attempted to procure included cryogenic accelerometers, which are sensitive components that measure acceleration at very low temperatures.  Cryogenic accelerators have both commercial and military uses, including in applications related to ballistic missile propellants and in aerospace components such as liquid-fuel rocket engines.

In addition, following his arrest and while incarcerated at the Metropolitan Detention Center, PARSA continued to violate the IEEPA and the ITSR  by conducting business for Metal PM and Tavan Payesh Mad, including by ordering parts from German and Brazilian companies for Iranian customers.  PARSA subsequently directed a relative to delete email evidence of his ongoing business transactions while in jail, emphasizing the need for secrecy in their dealings.

Neither PARSA nor any other individual or entity involved in transactions that gave rise to his conviction applied for or obtained a license from the U.S. Department of the Treasury’s Office of Foreign Assets Control for the transactions. 

Senator Klein Celebrates Jewish American Heritage Month in Riverdale

  Jewish American Community Leaders and Hundreds of Bronxites Gather to Celebrate Jewish Heritage Month at Riverdale YM-YWHA

State Senator Jeff Klein hosted his 2nd  Annual Jewish Heritage Celebration on Sunday at The Riverdale YM-YWHA, honoring local community leaders and honoring the over 350-year history of Jewish contributions to American society and culture.

“Each year, I am proud to celebrate Jewish American Heritage Month and recognize the valuable contributions that Jewish Americans have made to our communities. Our nation was built by hardworking individuals whose perseverance and dedication to seeing a brighter future for all will never be forgotten. Thank you for joining me today to salute those who have made a positive difference in our communities and improving the quality of life for their fellow citizens,” said Senator  Klein.

Joined by hundreds of community members, Senator Klein highlighted the contributions of outstanding Jewish Americans including: Sylvia Lask, community leader; Richard Romanoff, founder, president, and CEO of Nebraskaland; Robert Rubenstein, Esq., board member of Riverdale Senior Services; and Andy Wolf, publisher and editor.

Rabbi Ari Hart Weiss of Hebrew Institute of Riverdale performed the invocation, and guests enjoyed a complimentary lunch and Jewish cultural music.

Above and Below - State Senator Jeff Klein personally went to each table to hear what the seniors in attendance to hear from them. Below he holds the Riverdale Report which the senator prints for his constituents in Riverdale.

Above - Assemblyman Jeffrey Dinowitz was in attendance.

Below - Congressman Eliot Engel congratulates Honoree Sylvia Lask.

A delicious cake was served for desert after the luncheon.