Longtime Harlem Elected Official to Endorse Espaillat for Congress

   A long time Harlem elected official will announce his support for State Senator Adriano Espaillat’s campaign for Congress before the launch of Espaillat’s GOTV Caravan. Espaillat will be joined by other elected officials, endorsers, union members, community leaders and supporters from across the District to caravan from 135th St. and Broadway to the Bronx.

That is how it was billed, and one might have thought that the long time Harlem elected official to announce his support for Espaillat was Charlie Rangel. This however is just who that long time Harlem leader was.

Senator Bill Perkins announced his support for Senator Adriano Espaillat in the race for Congress in New York’s 13th District. Perkins’ endorsement marks a significant development in the race and his support now means each state senator whose district overlaps with New York-13 has endorsed Senator Espaillat’s campaign. Senator Perkins, who hails from East Harlem represents Harlem, parts of Washington Heights and the Upper West Side.

  In his endorsement announcement, Perkins praised Espaillat, as someone tenants can always trust no matter the political price.

  State Senator Bill Perkins was the first candidate to drop out of the 13th Congressional race, and has joined others in the State Senate to endorse candidate Espaillat. 

  

  Current Congressman Charlie Rangel has endorsed Assemblyman Keith Wright for the 13th Congressional seat in the primary election to be held on Tuesday June 28th.

Espaillat Calls on DOJ to Provide Federal Election Monitors to Oversee June 28th Primary

 

Letter Calls for Action Following Pattern of BOE Voter Disenfranchisement

State Senator Adriano Espaillat called on the U.S. Department of Justice to provide federal election monitors in the congressional primary on June 28.

The letter addressed to Attorney General Loretta Lynch follows a similar call made last week by Rep. Nydia M. Velázquez (D-NY) requesting the U.S. Department of Justice provide federal election monitors following the purge of tens of thousands of Brooklyn voters in New York’s April presidential primary.

In the letter today he notes “The New York City Board of Elections has repeatedly failed to execute its primary responsibility to ensure all duly qualified voters can fully participate in our democracy.” Read the full letter below.

 

Full letter:

 

June 24, 2016

The Honorable Loretta E. Lynch

Attorney General of the United States

U.S. Department of Justice

950 Pennsylvania Avenue, NW

Washington, DC 20530-0001

Dear Attorney General Lynch,  

I am writing following rampant voter irregularities in the April primary and request that you assign federal election monitors to oversee the congressional primary on Tuesday, June 28, in New York’s 13^th District, for which I am a candidate.  

For almost 50 years since the passage of the 1965 Voting Rights Act and its periodic renewals, the federal government has ensured equity at the ballot box throughout our nation. Until it was ruled unconstitutional by the Supreme Court in 2013, Section 4 of the voting rights act required review by the Justice Department before election procedures, polling sites, and district boundaries could be changed. These protections extended to several states and municipalities, including New York’s 13^th Congressional District in the Bronx and Manhattan.

As a resident of this District, my neighbors and I need the return of these protections.

Just ask the voters in the 79^th election district in northern Manhattan’s 71^st Assembly District, who have voted in four different poll sites in as many elections, or the 69^th ED in the 72^nd AD, where voters bounced around between two poll sites over several election cycles. Or ask the 120,000 overwhelmingly Latino voters purged from Brooklyn’s voter rolls—an egregious example of voter disenfranchisement. The New York City Board of Elections has repeatedly failed to execute its primary responsibility to ensure all duly qualified voters can fully participate in our democracy. With the BOE undertaking no significant reforms since the voter purge in April’s presidential primary, voters across the 13th District and beyond, deserve federal oversight.

I am not alone in my concern. Congresswoman Nydia Velasquez has already voiced similar concerns about voter disenfranchisement in New York’s 7^th District. As a candidate in a congressional district where 55% of residents are Latino, this disenfranchisement is especially worrisome. 

These pervasive challenges make it difficult to have confidence that voters will not face barriers at the ballot box on Election Day. The most basic tenet of democracy is the right to vote, and I believe it is essential for the Department of Justice to assign federal election monitors in the 13^th congressional district.

Sincerely, 

Adriano Espaillat

EDITOR'S NOTE:

This is a noble gesture by State Senator Espaillat, but why was it not done in part last week when Rep. VelazQuez sent in her request. 

This only appears to be a gimmick to try to get more votes.

New York City Pharmacy Owner Arrested For $8.5 Million Fraud As Part Of Largest National Medicare Fraud Takedown In History

  Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Scott J. Lampert, the Special Agent-in-Charge of the New York Office of the Department of Health and Human Services, announced today that SAJID JAVED was charged with participating in a health care fraud scheme that used nine pharmacies in Brooklyn and Queens, New York, through which JAVED submitted more than $8.5 million in fraudulent claims to Medicaid and Medicare.  JAVED’s arrest is part of an unprecedented nationwide sweep led by the Medicare Fraud Strike Force, resulting in criminal and civil charges against 301 individuals, including 61 doctors, nurses, or other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $900 million in false billings.  Twenty-three state Medicaid Fraud Control Units also participated in today’s arrests.  In addition, the HHS Centers for Medicare & Medicaid Services (“CMS”) also suspended a number of providers using its suspension authority provided in the Affordable Care Act.  This coordinated takedown is the largest in the history of the Medicare Fraud Strike Force, both in terms of the number of defendants charged and loss amount. 

JAVED was arrested earlier today and is expected to be presented in Manhattan federal court later this afternoon.

Manhattan U.S. Attorney Preet Bharara said: “As alleged, Sajid Javed induced others to forego their prescription medications for a kickback, and then fraudulently billed Medicare and Medicaid more than $8 million for the drugs that were never actually dispensed.  This alleged scheme not only put patients at risk, it also contributed to the multibillion-dollar pillaging of federally funded public health care subsidies.”

FBI Assistant Director-in-Charge Diego Rodriguez said: “These alleged criminals arrested around the country today and here in New York City are stealing money meant to help people seeking medical assistance.  It’s not a visible theft in public view, but the victims of the crime suffer greatly when they can’t get the assistance they need.  We are asking anyone who sees this sort of crime and fraud taking place to be vigilant, and report it to us at 1-800-CALL-FBI.”

HHS-OIG Special Agent in Charge Scott J. Lampert said: “Prescription drug scams, such as the one alleged in this case, work to undermine our nation's health care system.  Today’s arrests coordinated with our law enforcement partners serve as a stern warning to those who attempt to plunder government health programs meant to care for our most vulnerable citizens.”

As alleged in the Complaint and in other documents filed in Manhattan federal court[1]:

While owning and operating nine different pharmacies located in Brooklyn and Queens, SAJID JAVED conducted a multimillion-dollar scheme to defraud Medicare and Medicaid programs by seeking reimbursement for prescription drugs that were not distributed to customers.  Specifically, from January 2013 through December 2014, JAVED obtained more than $8.5 million in reimbursements from Medicare and Medicaid for prescription drugs that his pharmacies never actually dispensed.  JAVED defrauded Medicare and Medicaid into providing him with these reimbursements by obtaining prescriptions from other individuals, who were willing to forego delivery of the medications in exchange for a share of the reimbursed proceeds, in the form of kickbacks.  JAVED offered to pay, and did actually pay, kickbacks in furtherance of this scheme.

Including today’s enforcement actions, nearly 1,200 individuals have been charged in national takedown operations, which have involved more than $3.4 billion in fraudulent billings.  Today’s announcement marks the second time that districts outside Strike Force locations participated in a national takedown, and they accounted for 82 defendants charged in this takedown.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (“HEAT”), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations and since its inception in March 2007 has charged over 2,900 defendants who collectively have falsely billed the Medicare program for over $8.9 billion. 

JAVED, 45, of Fresh Meadows, Queens, is charged with one count of health care fraud, which carries a maximum sentence of 10 years in prison, and one count of illegal remuneration in connection with a federal health care program, which carries a maximum sentence of five years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Bharara praised the investigative work of the FBI and HHS-OIG.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys Christopher DiMase and Sarah Paul are in charge of the prosecution.

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

Engel On House Adjournment Following Democratic Sit-In

   Congressman Eliot Engel, a senior member of the House Energy and Commerce Committee, issued the following statement after the House adjourned till July:

"Standing alongside my colleagues earlier today, I said that Republicans had tossed out the old rules about how the House functions. We no longer debate legislation and vote on it on the House floor, because the Republican Majority has decided that they are too afraid. Too afraid to stop terrorists from buying guns, too afraid to allow background checks, too afraid of what research about gun violence will show. Let's face it, they are too afraid of the NRA. So instead of working to fix these problems by voting on a solution that 90 percent of Americans agree on, the Republican Majority has decided that the House won't do any more business this month. They have decided that they would rather abdicate their responsibilities and skip town than work to address the issue of gun violence, which is killing more and more Americans every day. Their behavior is shameful, but we will not be discouraged in the face of their cowardice.    

"Democrats will stay on the floor and continue to fight, even if Republicans walk away. Because this is too important for any more moments of silence.

"As we've said all day: no bill, no break."

NYC Public Advocate Letitia James Endorses Jamaal Bailey for New York State Senate

  Today, New York City Public Advocate Letitia “Tish” James endorsed Jamaal T. Bailey to represent the open Senate seat in the 36^th District.

“Jamaal Bailey has been working hard on behalf of his community, both as the Community Relations Director for Speaker Carl Heastie and as a District Leader of the 83^rd Assembly District. I am confident he will bring the same vigor and dedication to the people of the 36^th Senatorial District,” said Public Advocate James.

“I’m grateful for the support of Public Advocate James,” said Bailey. She has been a staunch activist for the people of New York City and I hope to do the same for the constituents of Mount Vernon and the Bronx when elected to the State Senate.”

Public Advocate Letitia James is the first citywide elected official to endorse Jamaal Bailey.

EDITOR'S NOTE:

The petitioning is still going on, and candidate Bailey must make it to the ballot first. 

49th Precinct Community Council Meeting Tuesday, June 28th 7:30 PM at 49th Precinct Community Center, 2121 Eastchester Road

COMPTROLLER STRINGER AUDITS FIND POOR OVERSIGHT, WEAK FINANCIAL MANAGEMENT AT TWO CITY CHARTER SCHOOLS

Construction and management contracts for millions were never put in writing, 

limiting ability to track how taxpayer dollars were spent

  Audits released today by New York City Comptroller Scott M. Stringer found poor financial oversight and weak management by the boards of trustees at two New York City charter schools, Bedford Stuyvesant New Beginnings Charter School and Merrick Academy Queens Public Charter School. Each school’s board of trustees oversees the institutions’ finances and management to ensure the resources are available for children to receive a quality education.

The two audits uncovered that both schools spent millions of taxpayer dollars on renovations and the purchase of services and supplies but didn’t keep proper or consistent financial records, including written contracts. The New Beginnings board spent nearly $1.7 million on renovations without written contracts, detailed project plans, or adequate evidence that the board of trustees even signed off on the spending. Merrick Academy substantially altered a $1.3 million contract for educational and administrative services without putting the changes in writing and incurred an additional $4.5 million in expenses to relocate and renovate a new school building without formal approval from the board.

“Ensuring that every dollar we spend on schools goes toward the education of the next generation must be our highest priority,” Comptroller Stringer said. “Verbal agreements and informal arrangements to spend hundreds of thousands of taxpayer dollars are neither good business practice nor the appropriate way to fund our children’s education. There must be accountability to protect these resources from waste, fraud and abuse.” 

The separate audits reviewed oversight of financial operations by the board of trustees at the Bedford Stuyvesant New Beginnings Charter School and Merrick Academy Queens Public Charter School from July 1, 2012 through June 30, 2014. New Beginnings is located in Bedford Stuyvesant, Brooklyn, and is authorized by the New York City Board of Education; in Fiscal Year 2013, it served K-5 and K-6 in Fiscal Year 2014. Merrick Academy is a SUNY-authorized charter school in Springfield Gardens, Queens, which served students in grades K-6 but now serves students in grades K-5.

Major findings at New Beginnings:

The New Beginnings Board of Trustees did not responsibly manage the school’s finances 

• New Beginnings officials told auditors that they did not solicit competitive proposals for nearly $1.7 million of construction costs, which means the school might have overpaid for the work. Though the board expressly told auditors that there had not been competitive bidding for the construction, after school officials saw the audit’s preliminary findings, they claimed to have received documents from the former executive director that they said showed a competitive bidding process had taken place.
• Auditors also uncovered that there were no written contracts or project plans for $1.5 million of the nearly $1.7 million spent on construction work during the audit period. Because there were no contracts or plans, there is no way to determine if taxpayer dollars were spent, appropriately.

• Auditors found a lack of financial controls over New Beginnings’ handling of tens of thousands of dollars in cash received from families for school lunches, afterschool programs, and general fundraising. The audit found that $8,200 in cash collected during FY 2014 was not deposited into the school’s bank accounts and there was no evidence this money was then spent appropriately.

• New Beginnings was required to have $70,000 in an escrow account to pay for legal and audit expenses in case the school was forced to dissolve. At the end of FY 2013, however, the school only had $2,529 in the account and for nearly three quarters of that year, the account balance fell below the required $70,000 minimum.

School administration made payment requests in multiple small increments in an apparent attempt to skirt oversight requirements

To ensure that spending on large purchases is appropriate, New Beginning’s policies require checks for $5,000 or more to be signed by two school officials. Because of this requirement, auditors examined checks for amounts just below and above $5,000 to see if school officials complied with this financial control.

Auditors identified nearly $60,000 worth of checks – for amounts ranging from $4999.00 to $4,999.99 – which were made out to Antares, LLC, a firm used to pay the school’s former executive director. These twelve checks were signed only by the Vice Chair of the Board, who still holds that position. When questioned by auditors, the Vice Chair admitted the payments should not have been handled this way, but claimed it never occurred to her that the checks were intentionally designed to bypass greater oversight.

Auditors also reviewed a sample of 77 payments of more than $5,000 – which must be approved by two school officials. Of these payments, auditors identified $215,771 in spending – 13% of the sample total – which only had one signature, in direct violation of the school’s rules.

When auditors looked at a larger sample of 192 payments worth $2.2 million – including the 77 for more than $5,000 and 115 for less than that amount – they identified eight transactions, which constituted 12% of the total sample spending, that lacked supporting documentation. 

The Board of Trustees did not submit financial disclosure forms or remove board members who violated policies 

Despite clear language in the school’s charter stating that failure to submit financial disclosure forms is grounds for removal, 6 of 8 board members did not submit the required Financial Disclosure Reports by the deadline for FY 2013 and 3 of 8 were missing for FY 2014. Although the school’s charter states that a Board member should be removed if they fail to submit a disclosure report, no actions were taken – putting the school at risk of having its Charter revoked or terminated.

Auditors recommended that New Beginnings’ Board: 

• Ensure all contracts are approved, signed and dated by the Head of School. Further, all such contracts should be approved by the Board and evidence of such approval should be maintained;

• Make certain that it has proper estimates, plans and costs for any alterations done on premises;

• Implement adequate cash controls and financial management for school-related activities; and

• Maintain the minimum required balance of no less than $70,000 in its escrow account in accordance with its charter agreement.

Major findings at Merrick Academy include: 

Merrick Academy substantially altered the terms of a million-dollar contract for management and educational services without putting those changes in writing or documenting what services the payments they did make were for.  As a result, it is impossible to determine if funds paid went toward work that was actually performed.

In 2010, Merrick Academy entered into a five-year contract with Victory Schools, Inc. to provide management and educational services, create student assessments, and manage administrative and financial operations. Originally, Victory was supposed to be paid $1.3 million per year, but was paid only $600,000 in FY2013 and $624,000 in FY 2014, based on a “verbal agreement,” which both the school and contractor claimed reduced the scope of Victory’s involvement.

The changes to the original contract were neither documented by Victory nor approved by the SUNY Institute, as required by the school’s charter agreement. As a result, there is no way for auditors or the public to know what services Victory was paid millions of taxpayer dollars to perform, or if they were received.

Merrick’s Board of Trustees failed to oversee financial decisions or approve $4.5 million in costs associated with the school’s move to a new location, neglecting its duty to manage the school’s finances

• There was no evidence that the Merrick board formally considered and approved relocation and renovation plans that moved the school from its previous location in Queens Village to a new site in Springfield Gardens, Queens. This means that there is no public document explaining why the school chose to spend millions of taxpayer dollars on the move.

• Despite spending over $431,000 in renovation expenses at the new location, $534,000 in costs to break the old location’s lease, $81,000 in moving expenses and incurring $3.5 million in additional rental expenses at the new site, board minutes show almost no discussion of the financial implications of moving and no evidence a vote was ever taken to approve the move. 

School officials consistently failed to follow operating procedures, increasing the possibility the school overpaid for goods and services 

• Auditors found no evidence of contracts, purchase orders, or work orders for 16 of the 54 vendors that received $10,000 or more in payments from the school.

• These 16 vendors received $907,198, or 38% of the total $2.4 million paid to the vendors.

• One contractor, Everlast Solutions Corp., was paid $302,000 to work on renovations at the school’s new location, but auditors were unable obtain a copy of the contract from the school.

• Of 119 payments totaling $1,437,541 which auditors reviewed, 13 payments worth $311,338 – 22% of the sample total – weren’t authorized by the appropriate staff member, increasing the risk that inappropriate payments were made.

Merrick Academy could not show that it consistently performed required criminal background checks for all employees, increasing the risk that inappropriate individuals could have had contact with school children

• Auditors examined a sample of 29 employees and determined that Merrick did not have evidence that background checks took place prior to their start date for 23 (79%) of them.

• Five of those employees worked for the school without proper clearance for between six months and four and a half years.

Auditors recommended that Merrick’s board:

• Ensure that any changes to its agreement to provide management and educational services are formalized in writing and approved by the SUNY Institute;

• Take steps to ensure that all contracts, purchase orders, or work orders are approved and documented;

• Review, consider, and vote on all significant financial matters and keep proper minutes; and

• Ensure that criminal background checks are obtained for employees before allowing them to work at the school.

“If you’re going to spend taxpayer dollars, you better be able to show what you paid for. When public money is spent without accountability, it raises serious questions about whether our children are getting the services they need to succeed. We can’t compromise on the education of our kids. These boards need to make immediate changes and ensure not another penny is spent without oversight and accountability,” Stringer said.

To read the full audit of the Bedford Stuyvesant New Beginnings Charter School, please click here.

To read the full audit of Merrick Academy Queens Public Charter School, please click here.

BRONX UNEMPLOYMENT DROPS TO 6.1%

  The Bronx’s unemployment rate has fallen to one of its lowest numbers ever, according to newly released statistics from the New York State Department of Labor.

The unemployment rate in The Bronx dropped to 6.1 percent in May 2016, down from 6.6 percent in April 2016 and 7.8 percent in May 2015. This is the lowest unemployment rate the borough has seen since Bronx Borough President Ruben Diaz Jr. first took office in May 2009, topping last month’s previous all-time low.

The total number of Bronxites employed also remains high, 567,500, with nearly 100,000 more Bronx residents employed today than when Borough President Diaz took office seven years ago. In addition, just 37,000 Bronx residents are currently unemployed, the lowest number of Borough President Diaz’s tenure.

“We are always looking to continue to build on the results that have helped decrease unemployment in our borough to record lows,” said Bronx Borough President Ruben Diaz Jr. “We will refuse to stay complacent as we seek to lower the unemployment rate even further, create new jobs, strengthen our existing businesses and grow our local economy. I want to thank all of our elected officials, community boards, business community, non-profits, neighborhood leaders and our more than 1.4 million residents. Everyone can be proud of these efforts.”

The Department of Labor’s statistics can be found at http://labor.ny.gov/stats/pressreleases/prlaus.shtm.

Since Borough President Diaz took office in 2009, The Bronx has seen more than $9.4 billion in total development, which has led to the creation of thousands of new jobs. In addition, a partnership announced by Governor Andrew Cuomo announced in August 2014 between the New York State Department of Labor and the Bronx Overall Economic Development Corporation, as part of the “NY Works,” program is placing Bronx residents in these jobs, helping to ensure that new development here benefits everyone, especially Bronxites.