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.

 

---

[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. 

MAYOR DE BLASIO ANNOUNCE NEW AFFORDABLE HOMES FOR 16 PREVIOUSLY HOMELESS VETERANS JUST IN TIME FOR THE HOLIDAYS

  Mayor Bill de Blasio and Department of Veterans' Services Commissioner Loree Sutton today announced that 16 formerly homeless veterans have moved into 16 units of affordable housing just in time for the holidays. Members of the community lined the streets to greet the veterans holding welcome signs while also spreading some holiday cheer. The Mayor and members of the Administration helped the veterans settle into their new homes by providing home goods and moving some of their belongings in their apartments.

“Today, 16 formerly homeless veterans who have dedicated their lives to serving our nation have received a home just in time for the holidays,” said Mayor Bill de Blasio. “Our veterans who have made the ultimate sacrifice in life should not be living on the streets or in shelters, which is why we’ve made it our mission to do the proper outreach to ensure veterans get the services they deserve. I want to thank the Department of Veterans’ Services and the Department of Housing Preservation and Development for working closely to help end veteran homelessness.”

“With warm, safe, beautiful and affordable new homes, these veterans and their families can celebrate the holidays with the peace of mind that stability offers and plan for a truly prosperous new year,” said Deputy Mayor for Strategic Policy Initiatives Richard Buery, who oversees the Department of Veterans’ Services. “I commend the Department of Veterans’ Services and the Department of Housing Preservation and Development for providing this essential service and for making monumental progress in curbing veteran homelessness this year.”

Loree Sutton, Commissioner of the Department of Veterans’ Services, said, “We couldn’t be prouder of everyone involved in finding these veterans permanent, affordable housing. In the last year alone, over 1,600 homeless veterans have been housed, an incredible accomplishment that could not have happened with just one agency or one funding stream. Today is the perfect example of the interagency collaboration, resource allocation and the sheer determination by my hardworking staff and colleagues that has led us to this point of nearly ending veteran homelessness in the City.”

HPD Commissioner Vicki Been said, “No one who has sacrificed for our country should find themselves out of a home. That is why HPD has made housing our City’s veterans such a top priority. We appreciate the efforts of our partners at the City, State and Federal levels, as well as Omni, Samaritan Village and so many others who brought 655 Morris Avenue online and provided our veterans with housing and the support they deserve. We are pleased to welcome these 16 veterans home for the holidays.”

Steven Banks, Commissioner of the Department of Social Services, said, “The City’s success in ending chronic veterans’ homelessness and substantially reducing veterans homelessness overall shows how effective cooperation between the City and the federal government can be. The Human Resources Administration and the Department of Homeless Services are proud to be part of this continuing effort to provide homes for those who have served their country.”

This brand-new, 176-unit building, located at 655 Morris Avenue, was financed by HPD, HDC and Bank of America, but to make a project like this work it also needs subsidies. To that end, the veterans are coming in with a combination of City and Federal rent subsidies, household donations and furniture allowances from both the City and private donors. As with all homeless veterans in the City, each veteran moving in today had the support of a DVS Veteran Peer Coordinator or shelter case manager as well as countless people behind the scenes at DSS, NYCHA, HPD, VA, DVS and the shelter provider, Institute for Community Living.

The 16 apartments being provided to veterans represent two of Mayor Bill de Blasio’s top priorities: to preserve or develop 200,000 units of affordable housing for New Yorkers and to effectively end veteran homelessness in the City. The City has already ended chronic veteran homelessness, an effort recognized by President Barack Obama last December.

Since Mayor de Blasio’s 2015 State of the City commitment to effectively end veteran homelessness in the City, the Administration and its partners have housed 2,533 homeless veterans, a 64 percent reduction in veteran homelessness. In addition, the City had reduced veteran homelessness by nearly 90 percent in the past five years. The national average is 47 percent during this time period.

About the Veterans

Samuel Rosado is a 68 year old disabled veteran who served in the military for 30 years. Born and raised in Puerto Rico, Samuel joined the Army in 1968 when he was 19 years old, serving in the Army, National Guard and the Reserves in many roles, including paratrooper, infantryman, scout, mortarman, combat engineer and communications specialist. He was medically retired in 1998 and returned to his wife and daughters in Puerto Rico, remaining with them until his wife passed away after 33 years of marriage.

He since moved to New York to be close to his young son. Yet without a stable job or savings, he found he was unable to afford rent and was shocked to find himself living in a shelter.

“I never lived in a shelter in my life. I’ve always worked. I was always the first person to volunteer for any job, no matter how crazy it seemed. But I had to be here in New York City to see my son – I want him to be raised to be a good man, put him in a good school. I want to raise him right,” said Samuel Rosado.

After living in a shelter, Samuel will move into permanent, affordable housing.

“I am happy to move into such a beautiful place, and I want to thank the city for my new home," said Samuel Rosado.

John Carothers is also moving in to 655 Morris Ave. He is a disabled Vietnam veteran, who served from 1964 to 1966 in the Army Medical Corps. Following his time in the Army, he spent a career in medical services, working primarily as a radiologist. He entered the shelter system after his home was foreclosed in 2015.

"I am so grateful to DVS for helping to steer me through this process. This is a beautiful apartment in a brand new building and in an ideal location. I am very much looking forward to moving in," said John Carothers.

Michael Scanlon is another one of the veterans moving in today. After a very difficult few years he couldn’t be happier about his new apartment.

“I was in the US Navy from 1981 to 1996 serving in many roles, from the Brooklyn Navy Yard to Maine working on submarines. I left the service as a single parent to three children and worked on tug boats and as a taxi driver. I was also forced to rely on odd jobs for work,” said Michael Scanlon. “Eventually, I couldn’t afford rent anymore and had to couch surf. I ended up sleeping in the garage I used to work at. It got to be too much, and I entered the shelter system and finally began taking advantage of some of the programs available to me as a veteran. I am so happy and grateful for the services and programs made available to me by the City, and especially thankful for the help putting a roof over my head.”

The individual apartments have a bedroom, full bathroom, living room with a kitchen and two to three closets. All units are equipped with a dishwasher, heater and air conditioning.

The units were made available through an affordable housing real estate development company, Omni New York LLC (Omni), co-founded by Maurice “Mo” Vaughn, a former Mets player. Vaughn co-founded Omni to revitalize and develop various neighborhoods in New York City, and it now owns and manages over 13,000 affordable housing units in 10 states. The veterans are the first group of tenants to move into this new 176-unit development at 655 Morris Avenue in the Bronx, which will be managed by Omni affiliate, Reliant Realty Services, LLC with social services provided by Samaritan Village.

Mo Vaughn, co-Founder of Omni New York, LLC, said, “This is our first new building in New York City, and we couldn’t be more excited to have a group of Veterans as our very first tenants. This is especially meaningful to our company, as Omni and its affiliated companies have a long history of employing Veterans and former NYC Police Officers. Reliant’s Managing Director, Mathew Holladay, is a West Point graduate and Army Veteran, and its CEO Fermin Garcia served in the Navy.”

“Samaritan Daytop Village is delighted to partner with the City and Omni Development to provide support services to the deserving veterans and their families who will be moving into new, high quality apartments today and in the coming weeks. We are grateful for Mayor de Blasio and his commitment to increasing affordable housing. We are also thankful for the sacrifices our veterans have made, and honored to do our part,” said Tino Hernandez, President and CEO of Samaritan Daytop Village.

For more information about NYC’s Department of Veterans Services, visit nyc.gov/vets, contactpress@veterans.nyc.gov, or call 212-416-5250.

If you are landlord or broker interested in providing a rental apartment, please call the Mayor’s Home Support Unit at 929-252-7244 to speak with a Home Support specialist.

MAYOR DE BLASIO FORGIVES OVER $100 MILLION IN PENALTIES AND INTEREST FOR HOME AND BUSINESS OWNERS

Forgiving Fines: The New York City Amnesty Program collects more debt in three months than the City collected in all of FY2014

   Mayor Bill de Blasio today announced the resolution of more than $150 million in debt from violations issued by city agencies – the result of a three-month Department of Finance amnesty program, run in conjunction with the New York City Council. As part of the program, 120,000 violations were processed, resulting in collection of $43 million of outstanding debt to the City – more than the city collected for all of Fiscal Year 2014 – and the waiving of more than $106 million in penalties and interest for home- and business-owners. This was the first amnesty program since 2009.

“Any time we can help New Yorkers save, while simultaneously collecting owed debt, we are doing right by the city,” said Mayor Bill de Blasio. “This year’s amnesty program, the first under this administration, saved New Yorkers over $150 million – money that we hope will provide a little comfort this holiday season.”

“The New York City Amnesty Program has had a significant impact on many communities across our City,” said Council Speaker Melissa Mark-Viverito. “This important initiative has helped save New Yorkers their hard-earned money, while at the same time also improving efficiency by clearing up hundreds of violations. The New York City Council is proud to have worked with the Mayor’s administration and other City agencies to make this happen.”

Forgiving Fines: The New York City Amnesty Program ran from September 12 through December 12 and covered unpaid violations that were in judgment. For those who failed to attend a hearing for their violation, the Amnesty Program waived 100 percent of the default penalty, as well as the interest on their judgment. Those who attended hearings, were required to pay only 75 percent of the base fine and had 100 percent of their interest forgiven.

New Yorkers with compliance violations (typically issued by the Department of Buildings or the FDNY) have six months to fix the underlying conditions and pay the base fee.

The amnesty program did not cover parking tickets. Some of the most common violations the city collected debt on include improper disposal of trash or recyclables; working without a permit; failure to conduct required building inspections and tests; failure to clear snow, ice or dirt from the sidewalk; and illegal posting of handbill or notice.

Menorah Lighting on Riverdale Avenue

Above - Before the largest menorah in the Bronx is lit for Chanukah it must be erected.

Below - The giant menorah is ready to be lit as it stands tall and proud.

Above - for the first night of Chanukah Rabbi Levi Shemtov and his son Yosef lit the first light well after the Sabbath sundown.

Below - The next evening it was dancing in the street for the menorah lighting.

Above and Below - Hundreds of people came out to the menorah lighting. There was balloons, potato pancakes, donuts, dreidels, and small menorahs given out. 

Above - Improving police and community relations, 50th Precinct Officer Israel Sirota joins the dancing.

Below - Deputy Inspector Terrence O'Toole gets thanks from Rabbi Shemtov for his great job as the 50th Precinct commanding officer. 

Above - Before he can suit up to go on the lift platform to light the menorah Councilman Andrew Cohen signs a waiver form for Con Edison.

Below - All suited up with a safety harness he is ready to climb onto the truck platform to be lifted up with Rabbi Shemtov to the giant menorah.

Above - Rabbi Shemtov and Councilman Cohen are ready to be lifted up.

Below as the platform gets close to the giant menorah, Rabbi Shemtov tells the story of Chanukah.

With help from Rabbi Shemtov Councilman Cohen lights the two side lanterns for the second night of Chanukah.

Water Main Break on Riverdale Avenue

  It took more than twenty-four hours for the Environmental Protection Agency of New York City to fix this water main break between West 239th and West 238th Streets - as it was described by one worker. The photos below will explain further. 

Above - An NYCEPA worker is on site as the sun sets, but does not know where the water is coming from.

Below - the street is cordoned off where the leak is awaiting NYCEPA workers to fix it.

Above - Heavy equipment and other workers show up.

Below - Night work on Christmas Eve begins to fix the water break.

Above and Below - You can see how the water goes onto the sidewalk where the  broken parts of the curb from the roadway milling back in March of 2016 still has not been repaired. The curb repair work is scheduled for March of 2017 according to the DOT.

Above - The repair work goes overnight.

Below - Workers are finishing up work, but the Northbound lanes of Riverdale Avenue are closed leading to a dangerous situation as the traffic must go into the southbound lanes near a blind curve.

The water main work on  Riverdale Avenue is finished, and this is how the street is repaired. By the way this street was fully milled and repaved in March of 2016, and is a protected street according to the DOT. The NYCEPA must not care about that by the condition thestreet has been left in.