A.G. Schneiderman Announces Settlement With Amazon Delivery Contractor That Underpaid More Than A Hundred Workers

  Cornucopia Logistics, LLC Deducted Money For Meal Periods That Workers Never Received

    Attorney General Eric T. Schneiderman today announced a settlement with Amazon delivery contractor Cornucopia Logistics, LLC (“Cornucopia”) that will require the company to pay $100,000 to workers whose wages were deducted for lunch breaks they never received because of back-to-back deliveries. An investigation by the AG’s office also found that Cornucopia routinely failed to compensate workers for “call-in pay,” which must be paid when employees report to work but are sent home or otherwise instructed not to complete their shift. Cornucopia also failed to keep required records documenting actual hours worked each week.

Cornucopia delivers Amazon.com packages and food from Amazon Fresh to residential and commercial addresses in New York City. More than a hundred current and former Cornucopia employees, including drivers, drivers’ helpers, and messengers, are eligible to receive restitution from the $100,000 settlement fund.

“I’m proud that this settlement will allow workers who were shortchanged to receive the restitution they deserve,” said Attorney General Schneiderman. “Delivery workers travel all hours of the day and night and through all kinds of weather to meet tight time frames. They deserve to have a proper lunch break, and when they don’t, they certainly must be properly compensated for all of their work.”

New York State's labor laws require employers to pay workers for all hours worked and to provide workers with certain specified meal periods – typically a half hour. The law also requires employers to maintain accurate payroll records, and to pay “call-in pay” of four hours (three for restaurant workers) when an employee reports to work on a given day. 

In addition to the payment of restitution funds, the settlement requires Cornucopia to comply with the law going forward, and bars Cornucopia from retaliating against employees for cooperating with the investigation.  Cornucopia will also designate an internal officer responsible for ensuring prospective labor law compliance, including furnishing the Attorney General’s Office with quarterly reports and payroll documents.

In the past year, A.G. Schneiderman’s office has recovered nearly $5.7 million in back wages for more than 3,300 workers, as outlined in a September 2016 report. Since taking office, A.G. Schneiderman has recovered almost $27 million in stolen wages for more than 20,000 workers. 

Anyone who is aware of a violation of workplace rights in New York State is encouraged to file a complaint with the Office of the Attorney General by filling out a complaint form or by calling the Labor Bureau at (212) 416-8700.

New York Supreme Court Orders ExxonMobil To Comply With A.G. Schneiderman’S Subpoena

   In an important decision concerning Attorney General Eric T. Schneiderman’s investigation of Exxon Mobil for potential state law violations, including under the Martin Act, today the Hon. Barry R. Ostrager ordered Exxon Mobil (“Exxon”) and its outside auditor, PricewaterhouseCoopers LLP (“PwC”), to comply with a subpoena issued by the Attorney General’s office in August 2016. The subpoena seeks documents related to PWC’s work for Exxon.

On October 14^th 2016, the Attorney General moved to compel production by PwC after Exxon asserted that it would not permit PwC to provide certain documents to the Attorney General’s Office. Exxon based its refusal to comply on a Texas statute that Exxon asserted creates an “accountant-client privilege.”

After noting that “[a]ll parties agree that this Court is the proper forum” to hear challenges to the AG’s subpoena, the New York Court ruled that Exxon’s interpretation of the Texas statute is “flawed,” and stated that the Texas statute in no way precludes PwC from producing the documents requested by the Attorney General’s office. The Court also stated that New York law, rather than Texas law, governed the dispute. The Court ordered PWC and Exxon to comply with the subpoena expeditiously.  

“We are pleased with the Court’s order and look forward to moving full-steam ahead with our fraud investigation of Exxon,” said Attorney General Eric T. Schneiderman. “Exxon had no legal basis to interfere with PwC’s production, and I hope that today’s order serves as a wake up call to Exxon that the best thing they can do is cooperate with, rather than resist, our investigation.”

The Court’s Order is available here.

Bronx Taxi Summit

  The event took place at the Southeast Bronx Neighborhood Centers Inc. located at 955 Tinton Avenue where the mayor's Community Assistance Unit and the TLC along with several city agencies and vendors connected to the taxi industry came together to help the attendees on current problems they are facing as drivers. 

  While TLC Commissioner Meera Joshi and Elvin Garcia of the Mayors CAU unit jointly hosted the event it was the Southeast Bronx Neighborhood Center located at 955 Tinton Avenue that was the winner. I spoke to Mr. Calvin Kendrick for almost an hour as the family worker supervisor and I agreed on many issues as to what is happening in many areas of the Bronx, and why children and others need centers like the SEBNC one on Tinton Avenue.

Above - Mr. Elvin Garcia of the Mayors CAU unit introduces TLC Commissioner Meera Joshi.

Below - Commissioner Joshi explains some of today's problems facing TLC drivers, and how the city administration plans to help the drivers.

Mr. Damyn Kelly the Executive Director of SEBNC thanked all who came to the Taxi Summit, and those city agencies and vendors who also participated in the summit held at the SEBNC center on Tinton Avenue. He tells of some of the many programs that are offered at the Tinton Avenue center.

Assemblyman Luis Sepulveda & Senator Ruben Diaz Job Fair 2016

KRVC's Halloween Party

  It was all ghosts and friends at today's KRVC Halloween party held at the KRVC office located at 505 West 236th Street just off of Riverdale Avenue. The photos below will tell the rest of the story.

Above - Madam Sassi was out front of the KRVC office to tell your fortune before you entered.

Below Stilt Walker Adam Aushlander had to watch out for the low door ways before entering and exiting the KRVC office.

Above - Linda Manning and Tracy Shelton pose  in the picnic area behind the KRVC office where activities such as making a Halloween pumpkin were going on.

Below - A group photo just as Assemblyman Jeffrey Dinowitz stopped in to say hello.

WILLIAMS INTRODUCES NUISANCE ABATEMENT BILL

   Council Member Jumaane D. Williams, Deputy Leader, introduced legislation that amends the current Nuisance Abatement Law (NAL) regarding "nuisances" that involve violating the State's Alcoholic Beverage Control Law. The bill is a part of Speaker Melissa Mark-Viverito's Nuisance Abatement Fairness Act -- a package of 13 bills that will curb abuses and limit application of the current Nuisance Abatement Law.

Council Member Williams' bill would require 4 violations of the current "Nuisance Abatement Law" to constitute a "nuisance," and restrict these violations to only those in which a reasonable person in the position of the person violating the law would have been aware of such violation. 

"The application of the Nuisance Abatement Law has been abused and doesn't allow for fair due process because of the uneven enforcement of the law," said Council Member Williams. "It is time the City Council reforms this law to crackdown on the abuses that result from its unintended use, and protect New Yorkers from unnecessarily losing their homes and businesses." 

The law currently requires only 1 incident of an alcohol sale to a minor, even where such a sale was not intentional. This bill would restrict the application of the NAL to repeated, willful, and flagrant cases.

The bill would become effective 60 days after it becomes a law.

The Nuisance Abatement Fairness Act consists of the following 12 additional pieces of legislation which will:

• Eliminate ex parte orders: The law currently allows judges to order the closure of a home or business based solely on the allegations of the NYPD, without affording the defendant the opportunity to be heard. These orders are disproportionately harsh and unnecessary. The legislation will permit a business or residence to be closed pending the outcome of a case only after defendants are notified and may appear in court.

• Repeal the Padlock Law: The Padlock Law permits the NYPD to close a residence or business without any judicial order. The NYPD has not used this draconian remedy for more than 15 years, and this bill will permanently abolish it.

• Narrow drug cases to sale: The law currently defines a nuisance as either the possession or sale of drugs, including marijuana.This legislation will restrict the application of the NAL to only the sale and not the possession of drugs. The bill will also require 4 drug sales instead of 3 to establish a "nuisance.

• Require laboratory reports for all drug cases: This bill addresses documented issues of NAL cases based on substances that turn out not to be controlled substances, by requiring the NYPD to submit laboratory results in all drug NAL cases.

• Address drug sales: Many drug NAL cases rely on "confidential informants" who may not be reliable, and an NAL case could be filed after a search warrant was executed and revealed only evidence of possession and not the sale of drugs. The NAL was not designed to circumvent the warrant system in criminal court, and this bill would require any drug sale nuisance case to have at least one incident personally witnessed by a police officer, eliminating the ability to file NAL cases based solely on information from "confidential informants."

• Ensure the timeliness of NAL cases: There is no statute of limitations for many NAL cases, allowing residences and businesses to be shut down for incidents that occurred many months ago and have since been cured. This legislation will establish a 4 month statute of limitations for all NAL cases, and 90 days for drug cases. The legislation will also eliminate unused NAL provisions which are addressed through other enforcement mechanisms, including those that apply to obscenity, building code violations, air pollution, noise control, and zoning violations. The bill will also require NAL orders to be executed within 15 days of being signed by a judge.

• Prohibit sealed records and require personal service of legal papers: Media reports have indicated that records from sealed criminal cases have been used in NAL applications. This legislation would require the Law Department to check every NAL case to make sure no sealed records are being used. It would also require the personal service of legal papers to ensure defendants are properly notified.

• Require least restrictive remedy and awareness: Some NAL orders or dispositions are disproportionately harsh, requiring either closure or onerous conditions that are not necessary to solve the problem, and other NAL cases affect the property rights of those who had no knowledge or reason to know about any illicit activities. This legislation will restrict any NAL remedy to only the least restrictive remedy, meaning that a judge could evict a person or shutter a residence only if there were no other means of ceasing the nuisance. This bill would also prohibit the NAL from restricting the rights of any person who was not aware or had no reason to be aware of a nuisance.

• Prohibit permanent exclusions: Some NAL cases permanently restrict persons from certain property, eliminating any chance of rehabilitation and family reunification. This legislation will establish a time limit for the exclusion of any person from a residence to 1 year, or 3 years in special circumstances.

• Verify an on-going nuisance: Residences and businesses may be shut down for incidents that occurred many months ago and have since been cured, negating the reason behind the NAL in the first place. This legislation would require the NYPD to verify the ongoing nature of a nuisance before executing any order.

• Eliminate conflicting proceedings: NAL actions often duplicate similar proceedings in New York City Housing Authority (NYCHA), housing court, or pursuant to the Alcoholic Beverage Control laws. This is inefficient and can lead to double-punishment. This legislation would prohibit an NAL case where there is a duplicate NYCHA, Housing Court, Alcoholic Beverage Control, or other duplicate proceeding.

• Ensure comprehensive reporting: NAL data has historically not been collected. This legislation would require comprehensive reporting on the NYPD's use of the NAL, including the rate of the use of injunctive relief, the relationship between NAL actions and 311 or 911 calls, the rate of NAL actions by precinct, and the relationship between NAL actions and other legal proceedings. Also, because other agencies and governmental entities can request NAL actions be brought, the bill also requires the Law Department to report on the wider use of the NAL.

"Too often, many of the people who are the victims of the Nuisance Abatement Law are bodega store owners who unknowingly sell alcohol, like beer, to minors. There are instances where a minor may place the money on the counter, and leave quickly, without giving the clerk a chance to ask for identification," said Council Member Williams. "If that same minor is caught by police, law enforcement now has just cause to shut down the bodega." 

There has been uneven enforcement of the laws and some well-documented abuses, where New Yorkers have unjustly lost their homes or businesses. 

New York City's Nuisance Abatement Law was created in 1977, and was originally designed to address obscenity and prostitution in Times Square. Since then, the law has been used to target residences where alleged drug sales are taking places, and commercial establishments that reportedly sell alcohol to minors.  

MAYOR DE BLASIO SIGNS PACKAGE OF GREEN BUILDINGS LEGISLATION TO SPUR RETROFITS TO HELP BUILDINGS BECOME MORE ENERGY EFFICIENT

  Green buildings legislation helps reach City’s OneNYC goal to reduce greenhouse gas emissions 80 percent by 2050; also signs legislation creating a stand-alone form with an increased number of demographic related questions for those seeking social services, and two bills increasing Police Department transparency and reporting on hate crimes.

  Mayor Bill de Blasio today held public hearings for, and signed, ten pieces of legislation into law, including a package of three green buildings bills – Intros. 1163-A, 1160 and 1165, in relation to energy and water benchmarking, lighting retrofitting and sub-metering requirements for mid-size buildings. Together these bills are expected to reduce greenhouse gas emissions by nearly 250,000 metric tons, and spur retrofits in 16,000 buildings, while creating approximately $85 million of construction activity leading to the creation of 100 jobs. This package of legislation also offers additional support for the City to reduce greenhouse gas emissions 80 percent from 2005 levels by 2050, an aspect of the City’s OneNYC goal which aims to create a more equitable, resilient and sustainable city.

The Mayor also signed Intros. 251-A, 551-A and 552-A, requiring the creation of an additional City form to include voluntary and anonymous questions around gender, sexuality, language spoken, ancestry and ethnic origin; Intro. 1011-A, in relation to mandating that whenever a food service worker is displaced due to a change in ownership or a transfer of contract, the new owner or contractor must retain the worker for 90 days; Intros. 728-B and 959-B, in relation to reporting on the NYPD Patrol Guide and hate crime statistics; and Intro. 1282, in relation to authorizing an increase in the amount to be expended annually in eight business improvement districts and two special assessment districts. 

“This Administration has dedicated itself to building a foundation and a future for the next generation of New Yorkers,” said Mayor Bill de Blasio. “In order to do that, we must work together as a city to fight one of our biggest threats, climate change. With these three bills, we are taking another step towards reaching our OneNYC goals and protecting the greatest city in the world.

“I would like to thank the Council speaker, Melissa Mark-Viverito, for her continued support of these initiatives and goals,” said Mayor de Blasio. “I would also like to thank Council Member Costa Constantinides, sponsor of Intro. 1160; Council Member Daniel Garodnick, sponsor of Intro. 1163-A; and Council Member Donovan Richards, sponsor of Intro. 1165.”

"The legislation being signed into law today reflects our shared commitment to a New York that strives to best serve New Yorkers,” said Council Speaker Melissa Mark-Viverito. “From enhancing green building standards to protecting the cafeteria workers who make so many of our food service spaces run, we have worked to build a New York that will be there for its residents both today and in the future. Importantly – increasing the demographic information collected through our city agencies will help target services more effectively going forward, as publishing the NYPD patrol guide will act as a major step in improving transparency and police-community relations in the neighborhoods being aided by those services. I thank the Administration of Mayor de Blasio, Council Members Dan Garodnick and Mark Levine, and Chair of the Committee on Public Safety Vanessa Gibson for their leadership on this important issue.”

The first bill, Intro. 1163-A, requires mid-size building owners to report benchmarking data on their whole building energy and water usage to the City. This information is already gathered from large buildings and is critical for helping building owners understand their energy and water usage and for catalyzing green retrofit projects that increase energy and water efficiency, save money and create jobs. Benchmarking has been shown to lead to a better understanding of energy and water consumption, resulting in the reduction of carbon emissions and energy consumption over time. Between 2010 and 2013, emissions from 3,000 consistently benchmarked properties already subject to the requirement, dropped by 8 percent, while energy use decreased by 6 percent.

The second bill, Intro. 1160, requires mid-size building owners to install sub-meters in non-residential tenant spaces and report energy usage to the tenant. This is already required in large buildings. The bill also decreases the square footage of tenant spaces in which sub-meters must be installed in all such buildings to 5,000 square feet. Sub-meter energy information will help building owners and non-residential tenants understand their buildings energy usage as well as help find ways to improve energy efficiency and save money.

The third bill, Intro. 1165, requires owners of midsize buildings to retrofit the lighting systems in non-residential spaces to comply with the New York City Energy Code by 2025. This is already required for larger buildings.

“Buildings account for more than two-thirds of the city’s greenhouse gas emissions, which we have pledged to reduce 80 percent by 2050,” said Daniel Zarrilli, Senior Director of Climate Policy and Programs and Chief Resilience Officer for the Office of the Mayor. “Today’s local law updates to expand benchmarking, install sub-meters and upgrade lighting systems help to provide the key information that is required for building managers to understand and reduce their energy use. This is part of a continuing effort to upgrade buildings across the city, consistent with the recent enactment by the Department of Buildings of the 2016 Energy Code, as we work to build a more sustainable, resilient and equitable city.”

"These sustainability enhancements will help make a big dent in the City's carbon footprint – reducing emissions as well as energy and water bills for homeowners and businesses. The changes will encourage both energy and water conservation and the construction of green buildings, steps that bring us one step closer to achieving Mayor de Blasio's vision of reducing our carbon emissions 80 percent by 2050," said Buildings Commissioner Rick D. Chandler, PE.

The fifth bill, Intro. 551-A, requires that the new survey form contain an option for multiracial ancestry or ethnic origin. In his remarks, the Mayor thanked the bill’s sponsor, Council Member Margaret S. Chin.

The sixth bill, Intro. 552-A, requires the demographic information survey contain questions regarding sexual orientation and gender identity. Additionally, the office of operations will review all existing demographic forms to see where more inclusive language and questions could be used. This will be a multi-agency endeavor involving all of the City’s social service agencies and the Department of Education. In his remarks, the Mayor thanked the bill’s sponsor, Council Member Daniel Dromm.

The seventh bill, Intro. 1011-A, mandates that whenever a food service worker is displaced due to a change in ownership or a transfer of contract, the new owner or contractor must retain the worker for 90 days. After the first 90 days, the new owner is required to evaluate the work of the employee and offer continued employment if their work is deemed satisfactory. In addition, the incumbent owner must post a notice to inform employees of the change in ownership or a transfer of contract. In his remarks, the Mayor thanked the bill’s sponsor, Council Member Ydanis A. Rodriguez. 

The eighth bill, Intro. 728-B, requires that the NYPD publish the Patrol Guide on its website. The NYPD would not be required to publish confidential information or material that, if published, could compromise public safety, the safety of police officers, or law enforcement operations. In his remarks, the Mayor thanked the bill’s sponsor, Council Member Daniel Garodnick.

The ninth bill, Intro. 959-B, requires the NYPD to report on hate crime statistics. This report will have complaints and arrests made regarding hate crimes on ethnicity, religion, gender identity, sexual orientation or disability, amongst other categories. Additionally, this bill stipulates that if complaints and arrests based on ethnicity, religion or disability reach a threshold of nine incidents within the previous year, these categories will be broken down further to more accurately identify the targeted group. In his remarks, the Mayor thanked the bill’s sponsor, Council Member Mark Levine.

The tenth bill, Intro. 1282, authorizes an increase in the amount to be expended annually in eight business improvement districts and two special assessment districts. These districts are spread throughout the city, and include 165th Street Mall, Atlantic Avenue, Bayside Village, Court-Livingston-Schermerhorn, Fashion Center, Fifth Avenue, Jamaica Center Mall, Madison Avenue, Metrotech, and Woodhaven. This bill will enable these BIDs to enhance the services they provide. In his remarks, the Mayor thanked the bill’s sponsor, Council Member Julissa Ferreras-Copeland.

Owner Of Real Estate Investment Firm Sentenced In Manhattan Federal Court To 10 Years In Prison For $17 Million Securities Fraud

   Preet Bharara, the United States Attorney for the Southern District of New York, announced that CARLTON P. CABOT, the former owner and chief executive officer of Cabot Investment Properties LLC (“CIP”), was sentenced today in Manhattan federal court to 10 years in prison for defrauding hundreds of elderly investors in numerous CIP-sponsored real estate investments.  As part of the fraud, CABOT and his co-defendant misappropriated approximately $17 million of investor funds to pay for personal and business expenses, and concealed the fraud from the investors with manipulated financial statements.  CABOT pled guilty to one count of securities fraud on May 31, 2016, before U.S. District Judge Jesse M. Furman who imposed today’s sentence.

U.S. Attorney Preet Bharara said:  “Carlton Cabot took $17 million from vulnerable investors and spent it lavishly on himself, and then lied to cover it up.  The victims, many of whom were in their 70s and 80s, were simply looking for a steady income stream to sustain them in their retirement.  Now, instead of economic safety and security, they are faced with financial ruin.  Cabot has rightfully been held to account for his selfish and criminal acts.”

According to the allegations contained in the criminal complaint against CABOT, the indictment to which CABOT pled guilty and Cabot’s admissions during his plea allocution, and the statements made by the victims of CABOT’s fraud:

From 2003 through 2012, CIP – which was controlled by CABOT – sponsored and oversaw approximately 18 so-called tenants-in-common (“TIC”) securities offerings to investors located all over the United States (collectively, the “TIC Investments” and the “TIC Investors”). A TIC investment is a real estate investment in which investors collectively own a piece of commercial real estate and are entitled to receive a portion of the rental income from the property.

From 2008 through 2012, CABOT engaged in a scheme to defraud the TIC Investors by misappropriating funds belonging to the TIC Investments and concealing his misappropriations by knowingly providing false and misleading financial reports and other information to the TIC Investors.

According to the representations in the offering prospectuses for the TIC Investments, CIP was allowed to collect only “excess” rental income from the TIC Investments – i.e., any additional money left over after the TIC Investments had paid the operating expenses for the properties and the disbursements due to the TIC Investors.  Despite these representations, CABOT repeatedly transferred money out of bank accounts belonging to the TIC Investments and into CIP bank accounts that he controlled (the “CIP Operating Accounts”) before these funds could be used to pay for operating expenses and disbursements to the TIC Investors.   

CABOT then used these funds to pay for unauthorized purposes without the knowledge or authorization of the TIC Investors, including: (1) to cover the operating expenses and investor distributions of other TIC Investments that had no available funds; (2) to pay for millions of dollars of personal expenses, including expensive cars, rental apartments, and private school tuition; and (3) to pay for CIP business expenses, including an approximately $1,125,651 civil settlement to certain TIC Investors who had sued CABOT and others.

To conceal the misappropriation of TIC Investment funds from the TIC Investors, CABOT and his co-defendant, Timothy J. Kroll, CIP’s chief operating officer, provided false and misleading financial reports to the TIC Investors that intentionally hid the fact that CIP owed large sums of money to the TIC Investments. 

By the end of 2012, when CIP ceased its day-to-day operations, CIP and its principals, CABOT and Kroll, owed approximately $17 million to the TIC Investments, which has never been repaid.

In addition to his prison sentence, CABOT, 54, of Stamford, Connecticut, was sentenced to three years of supervised release and ordered to pay $17 million in restitution and forfeiture. 

On October 7, 2015, Kroll pled guilty before Judge Furman for his role in the scheme.

Mr. Bharara praised the outstanding efforts of the U.S. Postal Inspection Service and Internal Revenue Service’s Criminal Investigation Division.  He also thanked the Office of the Secretary, William F. Galvin, Massachusetts Securities Division, for its assistance with the investigation of this case.