News From Attorney General Eric T. Schneiderman

AG Schneiderman Task Force Takes Down Major NY Drug Ring

Attorney General Schneiderman, joined by partners in law enforcement, charged 27 people with operating two drug distribution rings as part of “Operation Uptown Red Alert.” The first drug ring allegedly transported heroin, cocaine, and illegal narcotic pills throughout New York State and surrounding states. The second allegedly sold cocaine throughout Albany. Led by the Attorney General’s Organized Crime Task Force, state investigators seized $500,000 worth of heroin, $50,000 worth of cocaine, more than 1,000 illegal prescription narcotic pills, and multiple firearms. The two separate indictments charge 27 individuals with 324 crimes.

Adequate Medical Services for Prisoners

Attorney General Schneiderman announced a lawsuit against Armor Correctional Health Medical Services, claiming that they failed to provide proper medical services to inmates as required by Nassau County Correctional Center. The lawsuit alleges that Armor, a prison health services company responsible for providing comprehensive medical services, either failed to perform or egregiously underperformed many of its obligations. Of the 12 inmate that have died since Armor was contracted by the county, five were found to have received inadequate medical care. 

Protecting the Unemployed from Predatory Scams

The Attorney General filed a lawsuit against New York City-based Delta Services, Inc., its predecessor Ultimate Security Force, Inc., and their owner Jeffreys Paulino, for allegedly using phony job listings and making false promises of employment to unemployed consumers struggling to find work.  The Attorney General alleges that Delta, Ultimate Security, and Mr. Paulino scammed hundreds, if not thousands, of consumers by tricking them into paying for expensive, and often unnecessary, training courses. 

Enforcing Child Labor Laws

The Attorney General announced the arrest of Homer farm owner Luke Park for multiple alleged child safety violations related to the death of 14-year-old Alex Smith. The boy died while allegedly operating a hydraulic lift with fork attachment – equipment that is explicitly prohibited by child labor laws. Mr. Park also allegedly employed other minors on his dairy farm, required them to work more hours per week than the maximum for children of that age, and paid them off-the-books. New York’s Child Labor Laws set forth strict guidelines regarding the employment of minors that includes limitations on operating dangerous equipment or performing hazardous work. 

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. 

9th Annual Allerton Avenue Festival & International Food Show

  It was the ninth Annual Allerton Avenue Festival and International Food Show, and while there was no rain the heat made many stay in the shade. The large supermarket once known as Dalessio's then Met Food and finally Super Food and the Palombo Bakery were closed, as were one or two other small stores. That however is the way the Bronx seems to be going. As new stores open some older less modern stores are going to close, unable to compete with the new much larger stores with several advantages. 

Above - The Dunk Tank, and Below - The Mark Gjonaj Wagon Ride were still main attractions.

Above - and Below - State Senator Jeff Klein was traveling between many events and stopped by to say a few words to crowd about his good friend Assemblyman Mark Gjonaj. 

Above - Assemblyman Gjonaj welcomed 36th State Senate candidate Jamaal Bailey to the event.

Below - Mr. Bailey is pointing to the north side of Allerton Avenue that he hopes to represent, while State Senator Jeff Klein represents the south side of the street.

Assemblyman Gjonaj stands with 36th State Senate candidate Jamaal Bailey and Jason Laidley candidate Bailey's campaign manager in the blue shirt. Both the candidate and his campaign manager are holding informational material about candidate Jamaal Bailey.

Guess What I Found on the Grand Concourse in a Bus Stop?

  If you guessed a road milling machine you are correct!

Above - East 205th Street off the Grand Concourse was milled on Friday (after construction was completed on part of the street), and where do you think the road milling machine wound up?

Below - The answer is in a bus stop just north of East 205th Street on the Grand Concourse. Yes, you are right the milling machine is also in the bike lane. 

Above - Yes, that is a plastic helmet that someone who operates the milling machine might wear, but also something that a bike rider would wear.

Below - You can see how easy it is for children to crawl under this road milling machine as it is left unattended and fully open.

A Tough Time Cleaning the Streets

   No this street sweeper is not on fire or not doing its job, it is just trying to clean a street that has been milled and is awaiting to be repaved. I spoke to the driver of this street sweeper who said that the residue left by the milling company is driving him crazy as he tries to clean the streets that have been milled. This street has been like this for over three weeks, and is expected to be repaved some time next week.

    This is happening all around the Bronx as it can take up to one month for the Department of Transportation to repave a street after it has been milled. 

52nd Pct. National Night Out Thur Aug. 2nd Poe Park 5 - 8 PM

New York Comic Con Presents

October 6 - 9, 2016 | Javits Center BUY NOW GUESTS     EVENTS     THE FLOOR     ABOUT     EXHIBITORS

Manhattan U.S. Attorney Announces $9.5 Million Settlement With Columbia University For Improperly Seeking Excessive Cost Recoveries In Connection With Federal Research Grants

   Columbia Admits to Seeking and Receiving Cost Recoveries at the Higher “On-Campus” Rate for 423 Research Grants Even Though the Research Was Primarily Performed in Space Not Owned or Operated by Columbia

Preet Bharara, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the New York Region of the Office of Inspector General for the U.S. Department of Health and Human Services (“HHS-OIG”), announced today a settlement of a civil fraud lawsuit against THE TRUSTEES OF COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK (“COLUMBIA”) for improperly seeking and receiving excessive cost recoveries in connection with research grants funded by the National Institutes of Health (“NIH”).  The United States’ Complaint-In-Intervention (the “Complaint”) alleges that from July 1, 2003, through June 30, 2015, COLUMBIA impermissibly applied its “on-campus” indirect cost rate – instead of the much lower “off-campus” indirect cost rate – when seeking federal reimbursement for 423 NIH grants where the research was primarily performed at off-campus facilities owned and operated by the State of New York and New York City.  The Complaint further alleges that COLUMBIA failed to disclose to NIH that it did not own or operate these facilities and that COLUMBIA did not pay for use of the space for most of the relevant period. 

Yesterday, U.S. District Court Judge Paul A. Engelmayer approved a settlement stipulation to resolve the Government’s claims against COLUMBIA.  Under the settlement, COLUMBIA is required to pay $9.5 million to the United States.  In addition, COLUMBIA has admitted that it applied the on-campus indirect cost rate to the 423 NIH grants even though the research was primarily performed in space not owned or operated by Columbia, and that it submitted to NIH certified reports that used the on-campus indirect cost rate to calculate the indirect cost amounts claimed by the university.

Manhattan U.S. Attorney Preet Bharara said:  “All institutions that receive federal grant money must abide by applicable rules and regulations governing the use of the funds and the extent to which costs incurred by the institution are reimbursable.  For years and for over 400 research grants, Columbia improperly sought and recovered inflated cost recoveries.  For seeking and receiving improperly inflated cost recoveries from limited federal research funds, Columbia has made admissions and will pay $9.5 million.”

HHS-OIG Special Agent in Charge Scott J. Lampert said: “It is disturbing that Columbia University, a prestigious institution, would improperly seek excessive cost reimbursements from NIH, as alleged in the settlement.  Money gained by such behavior deprives other research programs of funds that could yield life-altering new treatments.  We will continue to work with our law enforcement partners to ensure institutions who engage in wrongful activity are held accountable.”

As alleged in the Complaint filed in Manhattan federal court:

Educational institutions are generally entitled to seek and receive federal reimbursement only for actual costs incurred by the institution in support of federally sponsored grants.  This is true regardless of whether the costs are direct costs (i.e., costs that can be identified specifically with a particular research project, such as the cost of the materials for the project) or indirect costs (i.e., costs that are incurred for common or joint objectives and, therefore, cannot be identified with work performed on a particular research project, such as operation and maintenance expenses).    

A university recovers its indirect costs for a particular research project by applying the relevant facilities and administrative rate (the “F&A Rate”) for the project to a subset of the direct costs it incurred in connection with the project.  HHS and educational institutions negotiate one F&A Rate for research primarily performed on-campus (“On-Campus F&A Rate”), and a separate F&A Rate for research primarily performed off-campus (“Off-Campus F&A Rate”).  The On-Campus F&A Rate is typically more than double the Off-Campus F&A Rate to account for the fact that when conducting research off-campus educational institutions do not incur the indirect facilities-related costs that they would otherwise incur if the activities were performed on-campus. 

From July 1, 2003, through June 30, 2015, COLUMBIA’s On-Campus F&A Rate was approximately 61 percent, its Off-Campus F&A Rate was 26 percent, and its Modified Off-Campus F&A Rate was 29.4 percent.  The Modified Off-Campus F&A Rate was to be applied to research conducted off-campus but within a certain proximity of the COLUMBIA campus.

COLUMBIA has a collaborative relationship with the New York State Psychiatric Institute (“NYSPI”), a clinical research facility administered by the New York State Office of Mental Health.  COLUMBIA faculty perform research in two off-campus buildings owned by the State of New York and operated by NYSPI (the “NYSPI Buildings”).  COLUMBIA faculty also perform research in another off-campus building owned and operated by the City of New York (the “City Building”).

For most of the relevant period, COLUMBIA did not pay the State of New York for use of the NYSPI Buildings, and therefore did not incur indirect “facilities-related” costs with respect to the medical research performed in these buildings.  Similarly, COLUMBIA did not pay the City of New York for use of the City Building.

During the relevant period, COLUMBIA received NIH funding for 423 grants where the research primarily took place in the off-campus NYSPI Buildings or the off-campus City Building (“NIH Grants”).  COLUMBIA improperly applied the On-Campus F&A Rate when seeking indirect cost reimbursements from NIH for these grants.  To obtain the indirect cost reimbursements, Columbia periodically submitted to NIH certified Federal Financial Reports (“FFRs”).  At the time that COLUMBIA submitted the FFRs for the NIH Grants, the university knew that it did not own or operate the NYSPI Buildings or the City Building where the research was primarily being performed and that it did not incur any costs relating to those spaces for most of the relevant period, but nevertheless sought reimbursement based on the On-Campus F&A Rate.

COLUMBIA did not state on the applications for the NIH Grants that the research would be primarily performed off-campus, as required.  Instead, Columbia frequently included the main address for the College of Physicians & Surgeons in the section of the application that was supposed to list the primary performance location.  Even where the NYSPI Buildings or the City Building were listed in that section of the grant application, or mentioned elsewhere in the application, COLUMBIA failed to disclose that these buildings were not owned and operated by the university. 

Starting in fiscal year 2009, in lieu of paying rent for use of one of the NYSPI Buildings, the Department of Neuroscience paid NYSPI a portion of the inflated indirect cost recoveries it received from NIH for research projects performed in that building.

In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.

Hector Ramirez fo

  HECTOR RAMIREZ ANNOUNCES CANDIDACY

FOR STATE ASSEMBLY

Passionate community activist seeks to bring real and honest representation to the beleaguered 86th District of the New York State Assembly

Calling the people of University Heights, Tremont, Morris Heights, and Fordham to stand up for their right to elect their own representatives and send the real and strong representation they need in Albany, Democrat Hector Ramirez announced his candidacy to the 86th Assembly District. After a strong grass root movement campaign, involving a diverse coalition of volunteers that walked the district for the past few weeks petitioning signatures of district voters, Ramirez submitted more than three times the amount of signatures required to qualify for the candidacy- to the Bronx Board of Elections.

“A district that, confronts exponential problems of inequality, women's health issues, unemployment, high levels of crime, and lack of opportunities in general, we cannot sit idle, while the beneficiaries of the status quo don’t even want to recognize our right to elect our own representatives”, said Hector Ramirez. "I am running because I want to be part of a strong, progressive coalition of democrats that will go to Albany to bring a real voice from our community and fight for the resources needed to tackle the abandonment that this district has suffered for years”

As a result of his own experience and community involvement, Hector Ramirez has been an inspiration to the minority communities he serves. Ramirez has demonstrated his commitment to fighting for immigrant, civil and economic rights. He has been actively involved in fighting street crime and gang violence in cooperation with community leaders and grass roots organizations.

Through his work in the community, Hector Ramirez has seen firsthand the crucial needs that surround the neighborhoods of University Heights, Tremont, Morris Heights,

and Fordham. He understands that we need honest, responsible and effective leadership to give these impoverished sections of the Bronx strong representation in Albany. He will bring back the respect and meaningful change that the district deserves to move forward and get the necessary resources.

In announcing his candidacy, Ramirez highlighted the need to fight for affordable housing, economic development, and educational opportunities for the youth and adult population, including the fight for the state DREAM Act, more resources to improve the lives for our senior citizens and more resources, community engagement and leadership to combat crime.

"But the first step in having our voice and concerns heard in Albany is allowing the people of the district to exercise their constitutional right of electing whomever they want fighting for them in Albany, not a poppet imposed by politicians", Ramirez added.

Over the past two decades, Ramirez has expanded his political involvement in the Bronx to reflect his passion for community service, working in partnership with grassroots organizations to demand more living wage jobs, health care, education and affordable housing to one of the poorest areas in the nation.

A passionate community activist, Ramirez started his public service at a young age in the Dominican Republic, as part of the student movement, in charitable organizations and later as a professional accountant, heading the Ethics Committee for the National Dominican Accountants Association.

In 2002, Ramirez was elected to the 86th Assembly as District Leader where he was re-elected four times. As District Leader, Ramirez has served a densely populated area encompassing University Heights, Tremont, and the Morris Heights section of the Bronx, as a non-paid liaison for the community to government agencies, elected and Democratic Party officials and community organizations. His hard work earned Ramirez a reputation as an honest and responsible leader. Hector Ramirez was one of the community leaders that fought for the creation of the AD86.

The Democratic Primary will be held on September 13, 2016.

EDITOR'S NOTE: 

When asked about a primary challenger current 86th A.D. Assemblyman Victor Pichardo said that he was ready to defend his record against anyone. At the time it was said that former Assemblyman Nelson Castro might run against him. I would have to ask the question again of Assemblyman Pichardo, but I think the answer would be the same for candidate Hector Ramirez.