THE PRICE OF JUVENILE JUSTICE: WHY RAISING THE AGE MAKES CENTS FOR NEW YORK

Independent Democratic Conference Releases Report on Economic Impact of Raising the Age of Criminal Responsibility in New York

Senators Jeff Klein, Diane Savino, Jesse Hamilton, Tony Avella, David Carlucci, Senator-elect Marisol Alcantara, advocates, and teen offenders, released a new report on the economic impact of New York’s age of criminal responsibility.

“The impact that the current age of criminal responsibility has on 16- and 17-year-olds affects them for the rest of their lives. Whether it’s increasing the chance to advance academically or secure employment, it is clear that raising the age of responsibility will have a great societal benefit. The report issued by the Independent Democratic Conference shows that in addition to this societal benefit the state will see a fiscal benefit as well. This legislative session we will work with advocates and stakeholders to find a legislative solution to this issue,” said Senator Klein.

“Rectifying the way we deal with crimes committed by 16- and 17-year olds in New York is an important step forward in improving our criminal justice system. We have seen the unfortunate consequences of housing these teens with adult inmates and the effects it has on their future. By raising the age of criminal responsibility we can give these youths a chance to become productive and contributing members of society rather than just giving up on them,” said Senator Diane Savino.

“For far too long New York has been one of only two states where the age of criminal responsibility is 16-years-old. I have seen first hand in my community the effects that this has had on teens now and for their futures.  I am confident that we will be able to implement these reforms and I look forward to working with the IDC to accomplish this goal,” said Senator Hamilton.

“New York is one of only two states in the country that treats 16- and 17-year-olds the same as fully developed adults in the criminal justice system. Unfortunately, this can have debilitating consequences for our state’s youth as they make non-violent mistakes that the juvenile system can easily address but isn’t because of the state’s archaic law. It is surprising that a state as progressive as ours, that is usually at the forefront of key social issues, has yet to understand this harsh reality. It is time for the Governor and State Legislature to address this and do right by our youth in raising the age,” said Senator Avella.

“In October of 2014, I hosted a hearing on New York State's Mental Health Supports and Services, titled, "Raising the Age." After hearing testimony from mental health professionals and families affected by mental illness, it was clear we need a new system that supports our youth, especially those with disabilities. New York needs to focus on rehabilitation for our youth, not incarceration. I proudly support raising the age and urge my colleagues in the State Legislature to work together on passing legislation that changes this unjust system of incarceration,” said Senator Carlucci.

“We cannot afford to give up on our teenagers who have made mistakes during their formative years. Holding 16- and 17-year-olds accountable for non-violent offenses the way we do adults makes little sense, and leaves no room for rehabilitation. This ruins their lives, their families lives and impacts our society. We must treat teens like teens and set them on a positive path, leading to them earning higher incomes in the future and becoming productive, contributing members of this state,” said Senator-elect Marisol Alcantara.

The Independent Democratic Conference’s report focused on the short and long term economic effects that raising the age of juvenile jurisdiction from 16 to 18 would have on New York.

A key finding was the savings to the state’s criminal justice system, due to the reduction in detention costs and the expenditure of resources such as transportation between correctional facilities and court hearings as well as probation and parole supervision post-release.  The report found that that when fully annualized the state could see savings of up to $117.11 million annually in criminal justice system costs.

The opportunity at a second chance for these 16- and 17-year-olds was also found to have a significant economic impact for New York through additional tax revenue and a reduction in welfare payments, social support programs, and health care costs. As these youths will see a rise in expected lifetime earnings that could keep them off social support programs the state will see an economic benefit. The report found that avoided costs for public welfare, social welfare and health care would save the state $3.46 million annually while additional tax revenue from increased income would total $0.6 million annually.

After a successful 2016 legislative session which saw an increase in minimum wage and the adoption of paid family leave championed by the IDC, accomplishing raise the age has become a priority of the for the 2017 legislative session. The IDC plans to work in a bipartisan fashion to hold public hearings and engage with stakeholders to develop a comprehensive proposal to be released in the coming weeks.

“We can do better than prosecuting and incarcerating 16- and 17-year olds charged with non-violent crimes in the same manner as adults,” said Manhattan District Attorney Cyrus R. Vance, Jr. “Young New Yorkers incarcerated in adult prisons are more likely to suffer abuse and assault, and more likely to reoffend when they get out. In the area of juvenile justice, it is long past time for New York to lead. I thank Senator Klein for his collaboration and commitment to establishing developmentally appropriate options to hold teen offenders accountable.”

SENATOR JEFF KLEIN - 22nd ANNUAL CHANUKAH CELEBRATION AT BRONX HOUSE

State Senator Jeff Klein and Assemblyman Mark Gjonaj hosted the 22nd annual Chanukah celebration at Bronx House on Wednesday evening. On hand was Bronx House Chief Executive Officer Howie Martin, children from the Bronx House programs, and Rabbi Israel Greenberg who helped light the Chanukah Menorah. There was hot chocolate, cookies and Chanukah Gelt given out to everyone in attendance.

Above - Howie Martin CEO of Bronx House thanks Senator Klein for the 22nd Annual Chanukah Menorah lighting at Bronx House.

Below - Assemblyman Mark Gjonaj speaks to the crowd as Senator Klein and Rabbi Greenberg listen to Assemblyman Gjonaj. 

Above - Rabbi Greenberg says a few words about Senator Klein and Assemblyman Gjonaj before calling both up to help light the Bronx House Menorah.

Below - After saying the Chanukah prayer, Rabbi Greenberg, Senator Klein, and Assemblyman Gjonaj light the Bronx House Menorah.

Above - Captain Thomas Alps of the 49th Precinct stands with Mr. Joe Thompson the 49th Precinct Council President as they watch the menorah lighting.

Below - Bronx House CEO Howie Martin, Senator Klein, Assemblyman Gjonaj, Rabbi Greenberg, and Brad Silver of the Bronx Jewish Community Council stand in front of the lit Chanukah Menorah.

DE BLASIO ADMINISTRATION ANNOUNCES COMPLETION OF TIMES SQUARE RECONSTRUCTION

In time for more than a million New Year’s Eve revelers, improvements include more permanent plazas with almost two acres of pedestrian space; New benches, kiosks and sidewalks are complemented by new southbound bike lane

Pedestrian flow zones and designated activity areas created during 2016 have proven a success in maintaining safe pedestrian flow at the “Crossroads of the World”

  Mayor Bill de Blasio’s Administration today announced that the reconstruction of Times Square had been completed in time for its world-famous New Year’s Eve festivities.  NYC Department of Transportation (DOT) Commissioner Polly Trottenberg, NYC Department of Design and Construction (DDC) Commissioner Feniosky Peña-Mora and NYPD Captain Robert O’Hare were joined at the dedication in the heart of Times Square by Times Square Alliance President Tim Tompkins, former DOT Commissioner Janette Sadik-Khan and elected officials, including Manhattan Borough President Gale Brewer.

“All the world knows that New Year’s Eve is an incomparable time to be in New York City -- and there will be no more iconic place to ring in 2017 than Times Square,” said Mayor Bill de Blasio.  “With the changes unveiled today, Times Square is now a safer and more welcoming place for the millions of residents, commuters and tourists who visit and pass through it every day.  I am so proud that our agencies could come together and finish their incredible work before the new year, ending the disruption that invariably comes with big and complex construction projects.”

“Being able to carve out two acres of new space for pedestrians in one of the world’s most popular plazas is a remarkable gift to the tens of millions of people who visit the ‘Crossroads of the World’ each year,” said DDC Commissioner Feniosky Peña-Mora. “Times Square is now equipped with more resilient sewer systems, wider sidewalks, ample seating, and an emphasis on pedestrian safety that will serve generations to come.”

“In the almost eight years since Broadway in Times Square was first closed to vehicular traffic, it has never looked better,” said DOT Commissioner Polly Trottenberg.  “These amazing changes, coupled with the sensible policies for pedestrian movement and solicitation that we instated this year, have made a magical public space even more wonderful and inviting.  We are also grateful to be joined today by so many of our partners whose collective vision was so instrumental in getting us to where we are today.”    

In February 2009, DOT announced that vehicular traffic would be replaced by pedestrian plazas along Broadway in Times Square between West 42^nd and West 47^th Streets.    The $55 million project to more permanently convert those plazas to pedestrian use began in 2013, managed by the Department of Design and Construction for the Department of Transportation.  The five reconstructed pedestrian plazas comprise 85,000-square-feet – or almost two full acres – in the space previously occupied by Broadway traffic.  The completed reconstruction includes wider sidewalks; user amenities like benches; rebuilt curbs, streets and sidewalks; modern street and traffic lighting; and a new southbound raised bike lane on 7^th Avenue.

Prior to the completion of the above-ground work, the area received new sewers and water mains and utility companies such as Con Edison and Verizon also completed about $25 million of underground utility upgrades. Also hidden from view are electrical lines and other cables and outlets that allow for street performances and events without the need to run wires above ground. Several lengths of old unused streetcar tracks were also removed.   With the ongoing and extensive work in Times Square now complete, the end of construction is expected to ease roadway congestion in the surrounding area.

Earlier this year, the City Council enacted a new law governing pedestrian plazas Citywide.  Under that law, DOT promulgated new regulations for Times Square, governing new pedestrian flow zones and designated activity zones.  Enforced by NYPD, the new zones have helped keep pedestrian traffic flowing and helped curb aggressive commercial behavior.

 "The completion of the construction in Times Square, and its transformation into pedestrian plazas with sound regulations, are a true testament and an example of what can be accomplished when city agencies and the community work together towards a goal," said Captain Robert W. O'Hare, Commanding Officer of the NYPD’s Times Square Unit. "The members of the NYPD and the Times Square Unit look forward to continuing to make "The Crossroads of the World" a safe place to visit."

MAYOR DE BLASIO ANNOUNCES PARTIAL RE-OPENING OF 56TH STREET TO CROSSTOWN TRAFFIC

NYPD to maintain enhanced security perimeter protecting the President-Elect, while allowing limited vehicle access

  Mayor Bill de Blasio today announced that 56th Street between 6th and 5th avenues will reopen to crosstown traffic, following several weeks of closure. In addition, the New York City Police Department will relocate their mobile command post from the southwest corner of 56th Street to the northwest corner of 56th Street. This will allow for the opening of the south side of 56th Street to one-lane thru traffic while still allowing the mobile command post to act as a traffic deterrent to keep vehicular threats at bay. These changes – implemented in coordination with the Department of Small Business Services, Department of Transportation, NYPD and Secret Service – will improve congestion and allow for easier access to deliveries for businesses within the security perimeter all while maintaining the safety and security of Trump Tower and the surrounding area. The changes take effect today, Wednesday, December 28.

“The safety of New Yorkers and of the President-Elect are our top concern. The changes we are implementing will maintain that security, while allowing for more movement in the area and addressing concerns raised by surrounding businesses. We will continue to examine and carefully confront the challenges presented by this unprecedented responsibility," said Mayor Bill de Blasio.

"Protecting the President-elect while minimizing the impact to nearby businesses has required constant dialogue from everyone involved," said Police Commissioner James P. O'Neill. "We welcome the re-opening of 56th street to increase pedestrian and vehicular movements in the area while still maintaining the security of the next President of the United States." 

"DOT is working closely with the NYPD, local businesses and building owners to continue to mitigate the impact of Midtown security measures on traffic, bus routes and pedestrians on our sidewalks," said DOT Commissioner Polly Trottenberg.

"Our department heard the concerns of small business owners near Trump Tower and we took swift action," said Gregg Bishop, Commissioner of the Department of Small Business Services. "By working with Mayor de Blasio, the NYPD and other colleagues in government, I am pleased that 56th Street will be reopened and that this big security challenge can be met without harming area small businesses." 

The Department of Small Business Services recently canvassed businesses around Trump Tower with the NYPD regarding challenges they faced, and SBS Commissioner Gregg Bishop, joined by Council Member Dan Garodnick, met with small business owners within the security perimeter. That outreach helped inform changes that will alleviate some constraints on customer traffic and deliveries.

In addition, a preliminary DOT study of travel times on West 57th Street between 7th and 5th avenues during November showed that eastbound traffic travel times on that street had increased by over 20 percent with the closure of West 56th Street.

The new changes – implemented in coordination with SBS, the NYPD and Secret Service – ensures that the safety and security of Trump Tower and the surrounding area remain intact while improving traffic flow. The City and Secret Service will continue working closely to keep the area secure and maintain steady traffic for surrounding businesses.

Manhattan U.S. Attorney Announces Arrest Of Macau Resident And Unsealing Of Charges Against Three Individuals For Insider Trading Based On Information Hacked From Prominent U.S. Law Firms

Iat Hong Arrested On December 25 In Hong Kong On U.S. Insider Trading And Hacking Charges; In Addition To Successful Cyber Intrusions Into Two Law Firms, Defendants Charged With Attempting To Hack Into Total Of Seven Law Firms

   Preet Bharara, 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 the arrest of IAT HONG and the unsealing today of a 13-count superseding indictment charging HONG, BO ZHENG, and CHIN HUNG (the “Defendants”).  The Defendants are charged with devising and carrying out a scheme to enrich themselves by obtaining and trading on material, nonpublic information (“Inside Information”), exfiltrated from the networks and servers of multiple prominent U.S.-based international law firms with offices in New York, New York (the “Victim Law Firms”), which provided advisory services to companies engaged in corporate mergers and acquisitions (“M&A transactions”).  The defendants targeted at least seven law firms as well as other entities in an effort to unlawfully obtain valuable confidential and proprietary information.  HONG, a resident of Macau, was arrested on these charges on December 25, 2016, in Hong Kong and is now pending extradition proceedings.  HONG was presented for an initial appearance on December 26, 2016, before a Judge in Hong Kong and is expected to have his next court appearance on January 16, 2017.

As alleged, from April 2014 through late 2015, the Defendants successfully obtained Inside Information from at least two of the Victim Law Firms (the “Infiltrated Law Firms”) by causing the networks and servers of these firms to be hacked.  Once the Defendants obtained access to the law firms’ networks, the Defendants targeted email accounts of law firm partners who worked on high-profile M&A transactions.  After obtaining emails containing Inside Information, the Defendants purchased stock in the target companies of certain transactions, which were expected to, and typically did, increase in value once the transactions were announced.  The Defendants purchased shares of at least five publicly-traded companies before public announcements that those companies would be acquired, and sold them after the acquisitions were publicly announced, resulting in profits of over $4 million.  In each case, one of the two Infiltrated Law Firms represented either the target or a contemplated or actual acquirer in the transaction.

Manhattan U.S. Attorney Preet Bharara said:  “As alleged, the defendants – including Iat Hong, who was arrested in Hong Kong on Christmas Day – targeted several major New York law firms, specifically looking for inside information about pending mergers and acquisitions.  They allegedly hacked into two prominent law firms, stole the emails of their M&A partners, and made over $4 million in illegal profits.  This case of cyber meets securities fraud should serve as a wake-up call for law firms around the world: you are and will be targets of cyber hacking, because you have information valuable to would-be criminals.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “The subjects charged in this case allegedly stole nonpublic information through unauthorized access to law firms’ computers, and used the information for their own personal gain.  The FBI works around the clock to keep these types of alleged securities fraudsters and cyber criminals from trading on stolen information, potentially manipulating the market at the cost of legitimate investors, and harm to corporations.”

According to the allegations contained in the superseding indictment (the “Indictment”)[1]:

The Law Firm-1 Hack and Insider Trading

At all times relevant to the Indictment, Law Firm-1 was a U.S.-based international law firm with offices in New York, New York, which, among other services, provided advisory services to companies engaged in M&A transactions. 

The Contemplated Intermune Transaction

In June 2014, Law Firm-1 was retained by a company not named in the Indictment (the “Company”) in connection with a contemplated acquisition of Intermune, a publicly traded U.S.-based drug maker (the “Contemplated Intermune Transaction”).  A partner in the M&A group at Law Firm-1 (“Partner-1”) was an attorney working on the Contemplated Intermune Transaction.

Beginning on July 21, 2014, the Defendants began exchanging emails concerning, among other things, particular M&A partners at Law Firm-1.  In addition, on or about July 29, 2014, HONG emailed HUNG a list of eleven partners at Law Firm-1, including Partner-1. 

Also beginning about July 2014, the Defendants, without authorization, caused one of Law Firm-1’s web servers (the “Law Firm-1 Web Server”) to be accessed by using the unlawfully obtained credentials of a Law Firm-1 employee.  The Defendants then caused malware to be installed on the Law Firm-1 Web Server.  The access to the Law Firm-1 Web Server allowed unauthorized access to at least one of Law Firm-1’s email servers (the “Law Firm-1 Email Server”), which contained the emails of Law Firm-1 employees, including Partner-1.  

Between about August 1 and August 15, 2014, Partner-1 was privy to Inside Information about the Contemplated Intermune Transaction.  For example, on more than one occasion between August 7 and August 15, 2014, Partner-1 obtained information, including via email, about details of the proposed transaction, including the price per share the Company was considering offering to acquire Intermune.

Between about August 1 and August 9, 2014, the Defendants caused more than 40 gigabytes of confidential data to be exfiltrated from the Law Firm-1 Email Server over the course of at least eight days.

On August 13, 2014, during the time Law Firm-1 was advising the Company on the Contemplated Intermune Transaction and after the Defendants had obtained access to confidential email data maintained at Law Firm-1, HONG used the Inside Information to purchase 7,500 shares of Intermune stock for certain trading accounts (the “Trading Accounts”).  Prior to that date, none of the Trading Accounts had purchased any shares of Intermune.  Later that day, HONG purchased an additional 1,000 shares of Intermune stock in the Trading Accounts.

On  August 16 and 17, 2014, the Defendants exploited their continued unauthorized access to email data belonging to Law Firm-1 by exfiltrating approximately 10 gigabytes of confidential data from the Law Firm-1 Email Server.  Between about August 18 and August 21, 2014, HONG and ZHENG used the Inside Information to purchase additional Intermune shares in the Trading Accounts on at least five occasions, totaling an additional 9,500 shares of Intermune stock.

The Contemplated Intermune Transaction was never consummated.  Instead, before the market opened on Monday, August 25, 2014, Intermune announced that it had reached an agreement to be acquired by Roche AG, a German company.  On that day, Intermune’s share price increased by approximately $19 per share, or approximately 40 percent from the closing price on Friday, August 22, 2014, the last prior trading day.  That same day, August 25, 2014, the Defendants sold the 18,000 shares that they had begun acquiring twelve days earlier for profits of approximately $380,000. 

The Intel-Altera Transaction

In January 2015, Law Firm-1 was retained by Intel Corporation (“Intel”), a publicly traded multinational technology company, in connection with a contemplated acquisition of Altera Corporation (“Altera”), a publicly traded integrated circuit manufacturer (the “Intel-Altera Transaction”).  As with the Contemplated Intermune Transaction, Partner-1 was an attorney working on the Intel-Altera Transaction.

Between January and about March 27, 2015, Partner-1 was privy to Inside Information about the Intel-Altera Transaction.  On several occasions during this time period, Partner-1 obtained confidential information about the contemplated transaction via email.  For example, on January 29, 2015, Partner-1 received an email with deal terms, including the proposed price per share to purchase Altera.

Between January 13, 2015, in the same month that Law Firm-1 was retained by Intel to advise on the Intel-Altera Transaction, and about February 10, 2015, the Defendants caused approximately 2.8 gigabytes of confidential data to be exfiltrated from the Law Firm-1 Email Server.

Beginning February 17, 2015, during the time Law Firm-1 was advising Intel and after the Defendants had obtained access to confidential email data maintained at Law Firm-1, the Defendants used the Inside Information to purchase shares of Altera stock in the Trading Accounts.  Prior to that date, none of the Trading Accounts had purchased any shares of Altera.

To further effectuate their insider trading scheme, between February 17 and March 27, 2015, one or more of the Defendants used the Inside Information to purchase additional shares of Altera stock in the Trading Accounts on at least 26 occasions, ultimately purchasing more than 210,000 shares.

On March 27, 2015, a financial newspaper published an article reporting on confidential merger discussions between Intel and Altera (the “March 27 Newspaper Article”).  Following the publication of the article, on March 27, 2015, Altera’s share price increased $9 per share, or approximately 26 percent, from Altera’s share price on March 27, 2015, just prior to the March 27 Newspaper Article.  On April 10 and April 13, 2015, the Defendants sold all of their shares of Altera stock for a profit of approximately $1.4 million. 

The Law Firm-2 Hack and Insider Trading

At all times relevant to this Indictment, Law Firm-2 was a U.S.-based international law firm with offices in New York, New York, which, among other services, provided advisory services to companies engaged in M&A transactions.

The Pitney Bowes-Borderfree Transaction

In December 2014, Law Firm-2 was retained by Pitney Bowes Inc., a publicly traded international business services company, in connection with a contemplated acquisition of Borderfree, Inc., a publicly traded e-commerce company headquartered in New York, New York (the “Pitney Bowes-Borderfree Transaction”).  A partner in the M&A group at Law Firm-2 (“Partner-2”) was an attorney who worked on the Pitney Bowes-Borderfree Transaction. 

Beginning about April 7, 2015, after Law Firm-2 had been retained to advise Pitney Bowes, the Defendants, without authorization, caused one of Law Firm-2’s web servers (the “Law Firm-2 Web Server”), located in New York, New York, to be accessed by using the unlawfully obtained credentials of a Law Firm-2 employee.  The Defendants then caused malware to be installed on the Law Firm-2 Web Server.  The malware on the Law Firm-2 Web Server allowed unauthorized access to at least one of Law Firm-2’s email servers, also located in New York, New York (the “Law Firm-2 Email Server”), which contained the emails of Law Firm-2 attorneys, including Partner-2.

Between about April 8 and July 31, 2015, the Defendants then caused approximately seven gigabytes of confidential data to be exfiltrated from the Law Firm-2 Email Server over the course of at least six days. 

Beginning April 29, 2015, hours after the Defendants had caused data from the Law Firm-2 Email Server to be exfiltrated, HONG and HUNG used the Inside Information to purchase shares of Borderfree stock for the Trading Accounts.  Prior to that date, none of the Trading Accounts had purchased any shares of Borderfree stock.  To further effectuate their insider trading scheme, between April 29 and May 5, 2015, HONG and HUNG used the Inside Information to purchase additional shares of Borderfree in the Trading Accounts on at least five occasions.  In total, HONG and HUNG used the Inside Information to purchase 113,000 shares of Borderfree.

On May 6, 2015, the Pitney Bowes-Borderfree Transaction became public.  On that day, Borderfree’s stock price increased by approximately $7 per share, or 105 percent, from the previous day’s closing price.  On May 18, 2015, HONG and HUNG sold their Borderfree shares, earning a profit of approximately $841,000.

Additional Insider Trading and Attempted Insider Trading Based on Inside Information Hacked from the Infiltrated Law Firms

In addition to trading on Inside Information in connection with the Contemplated Intermune Transaction, the Intel-Altera Transaction, and the Pitney Bowes-Borderfree Transaction, detailed above, the Defendants carried out their scheme to enrich themselves by obtaining and trading on the basis of Inside Information exfiltrated from the networks and servers of the Infiltrated Law Firms concerning at least 10 additional M&A transactions, including certain M&A transactions that were contemplated but never consummated.  Several of these M&A transactions involved Partner-1 or Partner-2.  In total, as a result of trading on Inside Information, the Defendants enriched themselves by at least $4 million.

Attempts to Hack Other  Victim Law Firms

In addition to obtaining and trading on Inside Information concerning M&A transactions exfiltrated from the networks and servers of the Infiltrated Law Firms, the Defendants repeatedly attempted to cause unauthorized access to the networks and servers of five other Victim Law Firms using means and methods similar to those used to successfully access the Infiltrated Law Firms.  For example, between March and September 2015, the Defendants attempted to cause unauthorized access to the networks and servers of these law firms on more than 100,000 occasions.

The Robotics Company Intrusions

At certain relevant times, the Defendants were also involved in a start-up robotics company (the “Robotics Company”), started by ZHENG, the defendant, which was engaged in the business of developing robot controller chips and providing control system solutions.  HONG and HUNG were also involved in running the Robotics Company. 

Between April 2014 and late 2015, in addition to their efforts to hack the Victim Law Firms’ networks and servers during this period, the Defendants also caused confidential information to be exfiltrated from the networks and servers of two robotics companies (the “Robotics Company Victims”) using substantially similar means and methods of exfiltration as were used to access and attempt to access and exfiltrate information from the Victim Law Firms.  Specifically, certain of the same servers that were used to carry out the hacks and attempted hacks of the Victim Law Firms were used to carry out hacks of the Robotics Company Victims.  Among other confidential information, the Defendants obtained confidential and proprietary information concerning the technology and design of consumer robotic products, including detailed and confidential proprietary design schematics.  Following these exfiltrations from the Robotics Company Victims, the Defendants exchanged emails containing certain of the confidential information they had caused to be exfiltrated from the Robotics Company Victims, including the proprietary schematics.       

Defendants and Charges

HONG, 26, and HUNG, 50, are residents of Macau.  ZHENG, 30, is a resident of Changsha, China.  HONG was arrested on December 25, 2016, in Hong Kong and is now pending extradition proceedings.  The defendants are charged with the following offenses, which carry the maximum prison terms listed below.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.

Count	Defendants	Charge	Maximum Prison Term
One	HONG, ZHENG, HUNG	Conspiracy to Commit Securities Fraud: Insider Trading	5 years
Two	HONG	Securities Fraud: Insider Trading – Intermune	20 years
Three	ZHENG	Securities Fraud: Insider Trading – Intermune	20 years
Four	HONG	Securities Fraud: Insider Trading – Altera	20 years
Five	HUNG	Securities Fraud: Insider Trading – Altera	20 years
Six	ZHENG	Securities Fraud: Insider Trading - Altera	20 years
Seven	HONG	Securities Fraud: Insider Trading - Borderfree	20 years
Eight	HUNG	Securities Fraud: Insider Trading - Borderfree	20 years
Nine	HONG, ZHENG, HUNG	Conspiracy to Commit Wire Fraud	20 years
Ten	HONG, ZHENG, HUNG	Wire Fraud	20 years
Eleven	HONG, ZHENG, HUNG	Conspiracy to Commit Computer Intrusion	5 years
Twelve	HONG, ZHENG, HUNG	Computer Intrusion – Unlawful Access – Law Firm-2	10 years
Thirteen	HONG, ZHENG, HUNG	Computer Intrusion – Intentional Damage – Law Firm-2	10 years

Mr. Bharara praised the investigative work of the FBI, and thanked the Securities and Exchange Commission for their assistance.  Mr. Bharara also thanked the Office of International Affairs and Hong Kong law enforcement for their assistance in the arrest and apprehension of HONG.  He added that the investigation is continuing.

The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.       

This case is being handled by the Office’s Securities and Commodities Fraud Task Force and the Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Andrea M. Griswold, Daniel B. Tehrani, and Kristy J. Greenberg are in charge of the prosecution.  

The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

 

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[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.

WHAT YOU SHOULD KNOW - By Senator Rev. Rubén Díaz

My wishes and petitions for the New Year

You should know that traditionally, the night of December 31st, we all get together with our families and close friends and when the clock strikes midnight, we thank God for the privilege of allowing us to see the New Year.

You should also know that while millions celebrate the coming of the New Year in fiestas, dancing and attending banquets, many others gather at Times Square, despite the weather, to wait until midnight to watch the Ball Drop.

It is also important to know that contrary to all of that, in our Church congregation, we gather to wait for the New Year, on our knees praying and thanking God and presenting Him with our wishes and petitions for the New Year.

During that time, we remember and pray for our families, friends, foes, elected officials, the leaders of our Nation, and our future.

Like every other year, I for one will be on my knees on December 31st at 12 midnight, presenting God with my laundry list of my petitions and wishes. Among these wishes are the following:

(1) For Governor Andrew Cuomo:  I wish that during the New Year, his “friends and brothers” Joe Percoco and his other former staffer, will not throw him under the bus because it will be an embarrassment to all of us in the State of New York to see our Governor being paraded in handcuffs in front of the cameras.

(2) For New York City Mayor Bill de Blasio: I wish that the two Grand Jury investigations by US Attorney Preet Bharara, and Manhattan District Attorney Cyrus Vance, Jr. conclude with no indictments because it will also be embarrassing for all of the residents of the City of New York to see their Mayor going through this nightmare.

(3) For Senator Andrea Stewart-Cousins: I wish that our Democratic Governor stops playing the political games that he has been playing for the past 5 years with Senator Jeff Klein and the Republican leadership. They have been preventing her from becoming the first African-American Woman to serve as the Leader of the New York State Senate. I wish 2017 will be the year these games will stop.

(4) For Senator John Flanagan, Leader of the Senate and Assemblyman Carl Heastie, Speaker of the Assembly: I wish they could get the salary increase for their Members without appearing to have sold out to the Governor like beggars on the corner.

(5) For Assembly Member Marcos Crespo, Chairman of the Bronx Democratic Committee: I wish that he could come out smelling like roses from the apparent double-crossing he is facing, that according to some, is being done to him and the Democratic County Committee by some of his Bronx colleagues.

(6) For my friend Adriano Espaillat: I wish that his new position as the first Dominican Congressperson in the United States of America will serve as an example for many others throughout our nation. We all feel very proud of Adriano Espaillat.

(7) For Congressman Charlie Rangel: I wish that God will grant him solace, peace and recompense for all of his many years of service and dedication to our community and our nation.

(8) For Gerson Borrero and Curtis Sliwa: I wish that God will continue laying His hands on them, healing and blessing them so they can continue criticizing me on their radio and tv programs.

(9) For Senator Liz Kruger: I wish that this new year will bring her enough self-awareness to stop speaking for hours and hours about what is wrong with a piece of legislation, and then vote in favor of the bill.

(10) For Senator Gustavo Rivera: I wish that he would stop being so vulgar and that he would refrain from using the "f" word in Conference and elsewhere, especially when he is in the presence of ladies, children, and people who have self-respect.

(11) For Senator Jose Marcos Serrano: That God will continue to look upon him and bless him so he will keep being the patient, decent and respectful gentleman that he is.

(12) To all of the constituents in my 32nd Senatorial District: I wish that God will bless them for all of their confidence, trust and support they gave me during this past election when I broke all of the records in Bronx County.

(13) And finally, for me: That my Lord and Savior Jesus Christ will approve of my wishes and plans for my 2017 political life.

And ladies and gentlemen, for now, these are just a few of my wishes for the next year.

I am Senator Rev. Rubén Díaz and this is what you should know.

EDITOR'S NOTE:

We also hope that Senator Reverend Diaz Sr. prays that he may continue to stay out of jail unlike the Amigo friends of his that have not.

That all members of the State Senate throw former State Senator Reverend Diaz Sr. a going away party be they Democrats, Republicans, or IDC members before his next election.

That my good friends on Inside City Hall to be renamed The Road to City Hall next week wish him well where ever the Reverend goes, and that Curtis Sliwa has his soap on the rope gift wrapped. 

Saving the best for last I say the following. Are you sure that Marcos Crespo is the one who is being double crossed, or is it you Senator Reverend Diaz Sr. who will be double crossed. Or is the proper wording stabbed in the back. 

That is what you should know.

MAYOR BILL DE BLASIO SIGNS LEGISLATION TO CREATE A NEIGHBORHOOD COMMITMENT TRACKER

Also signs package of legislation to reform campaign finance

   Mayor Bill de Blasio today held public hearings for and signed 29 pieces of legislation into law – Intros. 1132-A and 1182-A, in relation to creating a public list of City planning commitments and creating a process for the modification or removal of certain deed restrictions; Intros. 980-A, 985-A, 986-A, 987-A, 988-A, 990-A, 1001-A, 1002-A, 1349-A, 1350-A, 1351-A, 1352-A, 1353-A, 1354-A, 1355-A, 1356, 1358, 1361, 1362-A, 1363-A, and 1364-A, in relation to legislation that reforms the City of New York’s campaign finance system; Intro. 1345-A, in relation to a bill that regulates contributions to organizations affiliated with elected officials; Intros. 1260-A, 1261-A and 1262-A, in relation to the Department of Correction’s practices around transporting inmates, waiving cash bail fees and provision of non-uniforms for inmate court appearances; and Intros. 1099-A and 1193-A, in relation to reporting by the Department of Education on career programs and computer science education in New York schools, respectively.

“With this tracker, we are using technology to be more transparent about progress on our commitments,” said Mayor Bill de Blasio. “Delivering on promised public investments to support projects like affordable housing is good policy and shows New Yorkers that they can count on the City’s word. 

“This package of reforms to the New York City campaign finance system is the product of months of discussions with stakeholders,” said Council Speaker Melissa Mark-Viverito. “It addresses issues both large and small, from improving voter guides to reducing the influence of money from persons doing business with the City. These reforms close loopholes and level the playing field to ensure a transparent campaign finance process for all New Yorkers. I commend Mayor de Blasio for signing this package into law, and thank my colleagues at the City Council for their diligent work in developing this essential legislation.”

The first bill, Intro. 1132-A, creates a neighborhood commitment tracker. A year ago, the City committed to approaching capital planning in a more robust and integrated way for neighborhoods that are being rezoned. The City also committed to increasing transparency and accountability around the commitments made to neighborhoods. With Intro. 1132-A, the public will have an accessible and searchable online list of land-use commitments.

The second bill, Intro. 1182-A, relates to the modification and removal of certain deed restrictions. This bill sets forth a process for the removal or modification of a deed restriction by the Department of Citywide Administrative Services. The process includes obtaining appraisals, seeking public input and conducting an extensive review prior to approving any change. Under the new process, requests will also be reviewed by a committee as well as the Mayor or the Mayor’s designee for a final determination as to whether the modification or removal is appropriate and furthers the best interests of the City. 

The third bill, Intro. 980-A, sets limits on contribution amounts for transition and inauguration entities for local office at the same level as the campaign contribution limits for that office. This bill will help clarify what a candidate can raise and spend during the transition period. In his remarks, the Mayor thanked the bill’s sponsor, Council Member Fernando Cabrera.

The fourth bill, Intro. 985-A, eliminates the matching of public funds for contributions that are bundled by people who are doing business with the City. This bill will ensure that lobbyists and those doing business with the City will not be able to match any public funds for any contributions to a candidate.

The fifth bill, Intro. 986-A, allows for the disbursement of limited amounts of public matching money to qualifying candidates at an earlier stage in the elections. This bill moves this date closer to the completion of the qualifying process.

The sixth bill, Intro. 987-A, modifies the standard for contributions raised and spent by candidates who participate in the City’s public funding program to determine their eligibility to participate in the first debate. The new modifications require candidates to have spent 2.5 percent of their expenditure limit for such office. 

The seventh bill, Intro. 988-A, allows voters to opt-out of receiving a printed copy of CFB’s Voter Guide. This bill also requires the CFB to produce a Voter Guide for state and federal election races. 

The eighth bill, Intro. 990-A, extends prohibitions for contributions from non-registered political committees to candidates who are not participating in the City’s public matching program. In his remarks, the Mayor thanked the bill’s sponsor, Council Member Andy King.

The ninth bill, Intro. 1001-A, requires disclosure of entities that own entities that do business with the City. 

The tenth bill, Intro. 1002-A, requires the COIB to keep records of compliance with the annual conflict of interest law for those candidates who participate in the public matching campaign program. These records would be provided to the CFB upon any request. 

The eleventh bill, Intro. 1349-A, strengthens the requirements that the CFB’s software be compatible with the State Board of Election software. This bill also requires that the CFB be fully compatible with state laws. 

The twelfth bill, Intro. 1350-A, gives the candidates the right to select a hearing before a tribunal of OATH for alleged violations and proposed penalties. This would allow both the CFB and the candidate to bring forward cases to the CFB. 

The thirteenth bill, Intro. 1351-A, extends the time that contributions can be deposited, from 10 to 20 business days. However, cash contributions would have to be delivered within 10 business days of receipt.

The fourteenth bill, Intro. 1352, repeals the requirement that inquiries be made of each contributor whether they do business with the City. Additionally, this bill requires that only candidates or campaigns have a form that sets forth the doing business limits. 

The fifteenth bill, Intro. 1353, allows candidates to return certain campaign contributions at any point in order to protect a reputational interest. 

The sixteenth bill, Intro. 1354-A, requires the CFB to provide a review of all disclosure statements 30 days after report is due. This will allow campaigns to make corrections as needed. 

The seventeenth bill, Intro. 1355-A, specifies what documentation is necessary for making contributions. This bill additionally allows campaigns to fill out a required contribution card as long as the donor signs the card completed card. 

The eighteenth bill, Intro. 1356, treats participating and non-participating candidates the same in permitting transfers of contributions from any authorized committee filing disclosure statements with the CFB to the candidate’s principal committee.

The nineteenth bill, Intro. 1358, permits the use of campaign funds for activities related to holding office, such as purchasing food for a meeting. This bill also stipulates that funding from public funding cannot be used for this purpose. 

The twentieth bill, Intro. 1361, requires that the “doing business database” provide the dates the person on the list is considered “doing business.” This bill also states that those who have been removed from this list over the last five years must be posted in the city’s website. 

The twenty-first bill, Intro. 1362-A, requires that contributions in a special election be counted the same as contributions in the primary or general election. 

The twenty-second bill, Intro. 1363-A, allows candidates to rescind their written certification of participation in the matching funds programs. This bill gives candidates until the ninth Monday preceding the primary election or until they have received public funding, whichever comes first, to rescind their written certification. 

The twenty-third bill, Intro. 1364-A, prohibits CFB staff from attending executive sessions of the Board. This bill will only allow an independent counsel hired for the specific purpose to attend these executive sessions.

The twenty-fourth bill, Intro. 1345-A, sets forth certain reporting requirements for non-profits that are affiliated with an elected official or their agent, with limited exceptions for specified entities. This information would be available on the website of the Conflicts of Interest Board, which would be responsible for administering the law. For affiliated non-profits that spend or expect to spend 10 percent or more of their expenditures on public-facing communications involving the elected official, this bill would prohibit donations above $400 per year from anyone other than a natural person, or from any person doing business with the City as defined in the bill. 

The twenty-fifth bill, Intro. 1260-A, requires that the Department of Custody to determine whether an inmate has pending court appearances for any case and ensure that the inmate is transported to those additional appearances. 

The twenty-sixth bill, Intro. 1261-A, authorizes the Department of Finance to waive fees from the collection of cash bails. This bill would mean fees of up to three percent, which are currently collected under cash bail, would be waived.

The twenty-seventh bill, Intro. 1262-A, regulates the use of uniforms by the Department of Correction for court appearances. This bill allows inmates who are appearing before trial or grand jury to access their clothing prior to being brought to their court appearance. 

The twenty-eighth bill, Intro. 1099-A, requires the Department of Education to report information on Career and Technical Education programs in New York city schools. This report must be submitted annually and will include the number of CTE schools and programs available to students; graduation rates from CTE-designated high schools; and the number of students who applied to and enrolled in a CTE-designated high school. 

The twenty-ninth bill, Intro. 1193-A, requires the DOE to report information on computer science education in New York City schools. This report must include the number of Computer Science programs being offered in each school, the number of students who are enrolled in these programs and the number of STEM certified teachers in each school.