Rep. Engel Statement on The President’s Nomination of Neil Gorsuch For The Supreme Court Rep. Engel Statement on The President’s Nomination of Neil Gorsuch For The Supreme Court

   Congressman Eliot L. Engel issued the following statement on the President’s nomination of Neil Gorsuch for Supreme Court Justice:

“Tonight, the President shocked no one by picking Neil Gorsuch, a Supreme Court nominee with a regressive record who could only appeal to the furthest reaches of the extreme right-wing.

“Conservative ideologues will laud this pick, as it represents everything they have come to stand for— an anti-women, anti-civil rights, pro-gun agenda that can only serve to turn back the clock on American progress. The addition of Gorsuch to our highest court could spell doom for a woman’s right to choose, worker’s rights, gun safety, environmental protections, voting rights, and a whole host of other safeguards that protect working Americans.

“The pick is even more troubling when you remember what happened to Merrick Garland, a highly qualified jurist who drew universal praise from across the political spectrum. Senate Republicans stonewalled his nomination for a year – not for any legitimate reason, but just to deny President Obama his right to appoint a Supreme Court Justice. Their conduct was disgusting, and the abdication of their Constitutional duty set a precedent that I believe should not soon be forgotten. Senate Democrats would be wise to remember the example their Republican colleagues set when it comes to the Supreme Court nominating process.”  

Manhattan U.S. Attorney Announces Arrival Of Four Defendants From Kenya Charged With Trafficking In Massive Quantities Of Heroin And Methamphetamine

   Preet Bharara, the United States Attorney for the Southern District of New York, and Raymond Donovan, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), today announced that four individuals charged with participating in a narcotics importation conspiracy arrived in New York from Kenya.

BAKTASH AKASHA ABDALLA, a/k/a “Baktash Akasha,” IBRAHIM AKASHA ABDALLA, a/k/a “Ibrahim Akasha,” GULAM HUSSEIN, a/k/a “Hussein Shabakhash,” a/k/a “Hadji Hussein,” a/k/a “Old Man,” and VIJAYGIRI ANANDGIRI GOSWAMI, a/k/a “Vijay Goswami,” a/k/a “Vicky Goswami,” were arrested in Mombasa, Kenya, on November 9, 2014, pursuant to a United States request, based on charges filed in the Southern District of New York arising out of their participation in a conspiracy to import kilogram quantities of heroin and methamphetamine into the United States. On November 10, 2014, a superseding Indictment was returned also charging the defendants with narcotics importation offenses based on their delivery of 99 kilograms of heroin and two kilograms of methamphetamine in Kenya, which they intended would be imported into the United States. The four defendants will be presented and arraigned in Magistrate Court later today.

Manhattan U.S. Attorney Preet Bharara said: “As alleged, the four defendants who arrived yesterday in New York ran a Kenyan drug trafficking organization with global ambitions. For their alleged distribution of literally tons of narcotics – heroin and methamphetamine – around the globe, including to America, they will now face justice in a New York federal court.”

DEA Special Operations Division Special Agent in Charge Raymond Donovan said: “DEA pursues the most dangerous global drug traffickers who pose a direct threat to safety and stability around the world. We are relentlessly pursuing these criminal groups and their facilitators at every level with our law enforcement partners and we value and appreciate the work of our Kenyan counterparts. It is critical that we attack these dangerous networks before they can do even more damage worldwide and threaten innocent lives.”

According to the allegations in the superseding Indictment[1]:

From in or about March 2014 through the date of their arrests, BAKTASH AKASHA, IBRAHIM AKASHA, HUSSEIN, and GOSWAMI conspired to import kilogram-quantities of heroin into the United States. During the same period, BAKTASH AKASHA, IBRAHIM AKASHA, and GOSWAMI conspired to import kilogram quantities of methamphetamine into the United States.

BAKTASH AKASHA is the leader of an organized crime family in Kenya (the “Akasha Organization”) responsible for the production and distribution of ton quantities of narcotics within Kenya and throughout Africa. Moreover, the Akasha Organization’s distribution network extends beyond the African continent to include the distribution of narcotics for importation into the United States. IBRAHIM AKASHA is the brother and deputy of BAKTASH AKASHA. GOSWAMI manages the Akasha Organization’s drug business, including the production and distribution of methamphetamine and the procurement and distribution of heroin. HUSSEIN – a resident of Pakistan and a long-time associate of GOSWAMI – heads a transportation network that distributes massive quantities of narcotics throughout the Middle East and Africa, and has acknowledged responsibility for transporting tons of kilograms of heroin by sea.

Over the course of several months, during telephone calls and meetings in Nairobi and Mombasa, Kenya, the defendants agreed to supply, and in fact did supply, multi-kilogram quantities of heroin and methamphetamine to individuals they believed to be representatives of a South American drug-trafficking organization, but who were in fact confidential sources (the “CSes”) working at the direction and under the supervision of the DEA. BAKTASH AKASHA, IBRAHIM AKASHA, and GOSWAMI negotiated on behalf of the Akasha Organization to procure and distribute hundreds of kilograms of heroin from suppliers in the Afghanistan/Pakistan region and to produce and distribute hundreds of kilograms of methamphetamine, which they understood would ultimately be imported into the United States. At the same time, HUSSEIN agreed to transport heroin from the Akasha Organization’s supplier in the Afghanistan/Pakistan region to East Africa, so that it could be delivered to the CSes.

During a meeting in Mombasa, Kenya, in April 2014, BAKTASH AKASHA introduced a CS via Skype to one of his heroin suppliers in Pakistan, who said he could provide 420 kilograms of 100 percent pure heroin – which he called “diamond” quality – for distribution in the United States. Thereafter, in June 2014, GOSWAMI began discussing with the CSes his ability to procure methamphetamine precursor chemicals and to establish labs to produce methamphetamine for importation to the United States. In a meeting in Mombasa in September 2014, BAKTASH AKASHA introduced HUSSEIN as a narcotics transporter from Afghanistan who moves ton quantities of narcotics using ships. BAKTASH AKASHA and GOSWAMI described the supplier of heroin for their deal with the CSes, to whom they referred as “the Sultan,” as the top supplier of white heroin in the world.

In September and October 2014, IBRAHIM AKASHA personally delivered one-kilogram samples of methamphetamine and heroin to the CSes in Nairobi on behalf of the Akasha Organization. Thereafter, during a telephone call in October 2014 between BAKTASH AKASHA, GOSWAMI, and one of the CSes, GOSWAMI reported that 98 “chickens” had arrived, referring to 98 kilograms of heroin. GOSWAMI said that the South American drug organization would only need to pay for half of the 98 kilograms of heroin because the Akasha Organization would cover the cost of remaining kilograms. Then, in early November, IBRAHIM AKASHA personally delivered 98 kilograms of heroin to the CSes in Nairobi on behalf of the Akasha Organization. A few days later, IBRAHIM AKASHA also delivered another kilogram of methamphetamine.

In the course these negotiations, the Akasha Organization provided a total of 99 kilograms of heroin and two kilograms of methamphetamine to the confidential sources, and agreed to provide hundreds of kilograms more of each. The defendants were arrested on November 9, 2014, in Mombasa, Kenya, prior to another planned meeting with the CSes.

BAKTASH AKASHA, 40, is a Kenyan national and a resident of Kenya. IBRAHIM AKASHA, 28, is also a Kenyan national and a resident of Kenya. HUSSEIN, 61, is a Pakistani national and a resident of Pakistan. GOSWAMI, 55, is an Indian national and a resident of Kenya. The defendants are charged with conspiring to import heroin into the United States (Count One), conspiring to import methamphetamine into the United States (Count Two), distributing heroin for unlawful importation into the United States (Count Three), and distributing methamphetamine for unlawful importation in the United States (Count Four). Each count carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Bharara praised the outstanding efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit. The Department of Justice’s Office of International Affairs also provided assistance in bringing the defendants to the United States to face charges. Mr. Bharara also thanked the DEA’s Nairobi Country Office, the Government of the Republic of Kenya, the Kenyan National Police Services Anti-Narcotics Unit, and members of the Kenyan DEA Formal Vetted Unit.

This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard and Emil J. Bove III are in charge of the prosecution.

The charges 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 superseding Indictment, and the description of the superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Wall Street Investment Analyst Found Guilty In Manhattan Federal Court Of Insider Trading

   Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN AFRIYIE, a former analyst at the Manhattan-based private investment fund (the “Fund”) was found guilty this afternoon in Manhattan federal court of securities fraud and wire fraud for committing insider trading. AFRIYIE made approximately $1.5 million in profits in connection with stock options he purchased based on material nonpublic information he misappropriated from the Fund about an impending acquisition of ADT Corporation (“ADT”).

Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury found today, John Afriyie, an investment fund analyst, made $1.5 million in illegal profits by trading in ADT stock, using inside information about ADT that he had obtained from the fund’s servers. To cover up his insider trading scheme, Afriyie destroyed incriminating emails and even claimed his own voice on a recorded call to his broker was actually his mother’s. The jury saw through Afriyie’s deception, and he now stands convicted of federal crimes.”

According to the Indictment other filings in Manhattan federal court and the evidence presented at trial:

In January 2016, Apollo Investment Management LLC (“Apollo”) contacted the Fund to discuss whether the Fund would provide debt financing for Apollo’s potential acquisition of ADT. The Fund entered into a non-disclosure agreement with Apollo and was granted access to confidential documents related to the ADT transaction. As an investment analyst at the Fund, AFRIYIE had access to the Fund’s network server, which maintained, among other things, electronic shared directory file folders containing material nonpublic information, including information about Apollo’s acquisition of ADT.

In violation of the Fund’s policies and in breach of his duties to the Fund, AFRIYIE repeatedly accessed material nonpublic information about Apollo’s pending acquisition of ADT in an electronic shared drive folder on the Fund’s network server. In approximately 28 separate transactions between January 28, 2016, and February 12, 2016, AFRIYIE purchased approximately 2,279 ADT call options for a total of $24,254.02 before the public announcement of that transaction. AFRIYIE purchased the ADT call options through a brokerage account in the name of AFRIYIE’s mother, which AFRIYIE controlled. AFRIYIE did not reveal his trades or the existence of the brokerage account to the Fund. As cover for his criminal scheme, AFRIYIE repeatedly pretended to be his mother in recorded telephone calls with his broker.

The public announcement of Apollo’s acquisition of ADT in February 2016 caused ADT shares to increase in value from $29.20 per share on the day AFRIYIE began purchasing ADT options to $39.64 per share, resulting in a corresponding increase in the value of the call options AFRIYIE had purchased. Upon subsequently selling the ADT options, AFRIYIE generated over $1.5 million in illicit profits.

In connection with his arrest, AFRIYIE lied to agents of the Federal Bureau of Investigation (“FBI”) about his ADT options trades and falsely claimed that his own voice on a recorded call with his broker was really his mother’s voice. Following his arrest, AFRIYIE also attempted to delete the contents of an email account that he had used to communicate with his broker.

While the guilt phase of the trial has concluded, AFRIYIE has requested a jury determination as to whether certain assets are subject to forfeiture as proceeds of the offenses for which he was found guilty. That forfeiture proceeding remains ongoing and will resume tomorrow.

AFRIYIE, 29, of Freehold, New Jersey, was convicted of one count of securities fraud and one count of wire fraud, each of which carries a statutory maximum sentence of 20 years in prison. AFRIYIE was remanded on January 23, 2016, after he refused to appear in court for trial, and he remains in custody. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Bharara praised the investigative work of the FBI and the Office’s Criminal Investigators. He also thanked the Securities and Exchange Commission for its assistance.

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 visitwww.StopFraud.gov.

A.G. Schneiderman Joins Lawsuit Against President Trump's Immigration Executive Order

  Attorney General Eric T. Schneiderman released the following statement:

“As I've made clear: President Trump's executive action is unconstitutional, unlawful, and fundamentally un-American. 

“That is why my office will be filing to join the federal lawsuit against President Trump and his administration. I'm proud to partner with these organizations to fight to permanently strike down this dangerous and discriminatory order. 

“I will continue to do everything in my power to not just fight this executive order, but to protect the families caught in the chaos sown by President Trump's hasty and irresponsible implementation – including pressing DHS and CBP to provide a full list of those still detained and allow them access to legal service providers.”

The lawsuit was originally filed by the American Civil Liberties Union Foundation, the Jerome N. Frank Legal Services Organization at Yale University, the Urban Justice Center, and the National Immigration Law Center.

A.G. Schneiderman Announces Settlement With Western Union To Develop Stronger Anti-Fraud Programs

Western Union To Pay $586 Million To Compensate Fraud Victims Nationwide Through A Related Settlement With The Department Of Justice

   Attorney General Eric Schneiderman today announced a joint settlement with Colorado-based The Western Union Company, resolving a multistate investigation which focused on complaints of consumers who used Western Union’s wire transfer service to send money to third parties involved in schemes to defraud consumers. In addition to New York, all 49 states and the District of Columbia participated in this settlement. 

“Criminal scam artists are adept at creating all kinds of schemes to convince consumers to wire them money,” said Attorney General Schneiderman. “I encourage New Yorkers be extra vigilant when responding to advertisements, solicitations, and phone calls, which are too often peddled by fraudsters looking to scam unsuspecting individuals out of their hard-earned money. I am pleased that today’s settlement with Western Union will institute extra protections to combat fraud moving forward.” 

The settlement requires Western Union to develop and put into action a comprehensive anti-fraud program designed to help detect and prevent incidents where consumers who have been the victims of fraud use Western Union to wire money to scam artists.

That anti-fraud program, which Western Union has agreed to continuously evaluate and update as warranted, includes the following elements:

• Consumer anti-fraud warnings on the front page of money transfer forms;
• Mandatory training and education for Western Union’s agents about fraud-induced wire transfers;
• Increased scrutiny of agent locations whose fraud complaints exceed certain thresholds;
• Background checks on prospective Western Union agents who process money transfers;
• Monitoring of Western Union agent activity to prevent fraud-induced money transfers;
• Prompt and appropriate disciplinary action against Western Union agents who fail to follow required protocols concerning anti-fraud measures.

Western Union also has agreed to pay a total of $5 million to the states for the states’ costs and fees. In addition to this settlement with the states, Western Union also settled claims related to fraud-induced transfers with the Federal Trade Commission and U.S. Department of Justice, as announced on January 19, 2017.  As part of those related settlements, Western Union has agreed to pay $586M to a fund that the Department of Justice will administer to provide refunds to victims of fraud induced wire transfers nationwide, including New York victims.  In February 2016, New York, along with 48 other states and the District of Columbia, entered into a similar settlement with MoneyGram. 

Consumers should be aware of common scams, including:

• Lottery and contest scams in which consumers are told they have won a large sum of money, but must first wire money to pay required taxes or fees before receiving their winnings;
• Grandparent scams in which a consumer is led to believe his or her loved one is in immediate danger and needs money right away;
• Romance scams in which someone poses as a love interest and then soon begins asking consumers to send money for various reasons, such as medical emergencies, car accidents, muggings, or emergency travel;
• Tax scams, including when the caller poses as an official from a government agency, such as the Internal Revenue Service, often times using an official looking phone number. The scammer will claim that a past due tax balance is owed, and tell the victim that unless the debt is paid immediately, a team of officers will come to the victim’s home that day to arrest the victim. New Yorkers should remember the IRS and legitimate government agencies never demand payment by phone;
• Telemarketing scams involving solicitations such as advance fee loans, work-at-home opportunities, magazine sales, credit card offers, business opportunities or travel deals.

Consumers who receive these types of solicitations from strangers should toss those letters in the trash, delete the e-mail, or hang up the phone. And consumers who meet someone online should be cautious about wiring money, particularly if a meeting in person has never taken place. 

More information about this settlement is available here: https://www.justice.gov/criminal-mlars/remission.  

If you think you have been the victim of a scam, report it to our Consumer Frauds Bureau here.

In addition to New York,  the following participated in the settlement: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.

A.G. Schneiderman Obtains Settlement With Devry University Providing $2.25 Million In Restitution For New York Graduates Who Were Misled About Employment And Salary Prospects After Graduation

In Addition To Restitution, A.G. Settlement Requires Devry To Reform Advertising Practices And Pay $500,000 In Penalties, Fees, And Costs 

   Attorney General Eric T. Schneiderman today announced a settlement with for-profit education company DeVry Education Group, Inc. and its subsidiaries DeVry University, Inc. and DeVry/New York, Inc. (collectively, “DeVry”).  The settlement resolves an investigation that revealed that DeVry lured students with ads that exaggerated graduates’ success in finding employment at graduation and contained inadequately substantiated claims about graduates’ salary success.  Pursuant to the agreement, DeVry will pay $2.25 million in consumer restitution and $500,000 in penalties, fees and costs.

“DeVry used misleading claims to lure in students who were simply seeking a college degree, greatly exaggerating job and salary prospects for graduates” said Attorney General Schneiderman. “I’m pleased that this settlement provides much-deserved restitution to students who were misled, and requires DeVry to stop its false advertising.” 

DeVry is headquartered in Illinois and operates fifty-five campuses throughout the country, including three in New York City.  DeVry also offers online college programs.

Many of DeVry’s advertisements centered on a claim that 90% of DeVry graduates who are actively seeking employment obtain employment in their field of study within six months of graduation.  The Attorney General’s investigation revealed that the 90% claim was misleading because a substantial number of the graduates included in the 90% figure were graduates who were already employed prior to graduating from DeVry.  In fact, many of the graduates included in the 90% were employed before they even enrolled at DeVry. 

In addition, DeVry’s employment outcome statistics inaccurately classified a significant number of graduates as employed in their field of study, when in reality the graduates were not working in their field.  For example, DeVry counted graduates of DeVry’s Technical Management program as “employed in field” where the graduates were employed as retail salespersons, receptionists, bank tellers, and data entry workers.  In some cases, graduates were counted as employed in their field of study despite holding positions that did not require a college degree.

DeVry also mischaracterized certain unsuccessful job-seekers as “inactive,” despite evidence that the graduates had in fact carried out an active, though unsuccessful, job search.  Furthermore, DeVry’s 90% claim did not accurately reflect outcomes at all programs offered by DeVry.  Certain programs had employment outcomes that were significantly lower than 90% over consecutive years. 

DeVry also made inadequately substantiated claims in its advertisements concerning DeVry graduates’ salary outcomes.  For example, some DeVry ads touted that DeVry bachelor’s degree graduates earned 15% more one year after graduation than all graduates with bachelor’s degrees from all other colleges and universities.  This claim, which was based on commissioned studies carried out by a third-party entity, was inconsistent with other data DeVry had concerning graduates’ salaries. 

The settlement requires DeVry to pay $2.25 million in restitution.  The restitution will be used to compensate eligible graduates of associates and bachelor’s degree programs at DeVry’s New York campuses and New York residents that graduated from DeVry’s online associates and bachelor’s degree programs.  The settlement also requires DeVry to pay $500,000 in penalties, fees, and costs and to reform its practices concerning representations of graduates’ employment and salary outcomes.

DeVry recently reached a separate settlement with the Federal Trade Commission (“FTC”) concerning its advertising practices.  New York DeVry graduates may be eligible to receive restitution under both settlements.  Restitution obtained pursuant to the Attorney General’s settlement will be distributed pursuant to a claims process.  Graduates eligible to participate in the claims process will receive a claim form by mail.   

DeVry graduates eligible to participate in the claims process include:  (1) graduates of associates and bachelor’s degree programs at DeVry campuses in New York who began their program between July 2008 and September 2015; and (2) New York residents that graduated from DeVry online associates or bachelor’s programs and who began their program between July 2008 and September 2015.  Such graduates will be eligible to receive restitution under the Attorney General’s settlement where the graduate timely submits a claim form that indicates that the graduate was not employed in her field of study within six months of graduation, despite seeking in-field employment.  

MAYOR DE BLASIO AND PATROLMEN’S BENEVOLENT ASSOCIATION REACH FIVE-YEAR AGREEMENT, BRINGING ENTIRE UNIFORMED UNION WORKFORCE UNDER CONTRACT

Deal advance important policing reforms, including the outfitting of all patrol officers with body cameras by the end of 2019

   Mayor Bill de Blasio and Patrolmen’s Benevolent Association (PBA) President Patrick Lynch today announced a tentative contract agreement covering 23,810 NYPD employees. With this settlement, the City has secured deals with each of its uniformed unions through the 2010-2017 round of bargaining. This is only the second voluntary settlement reached between the City and the PBA since 1994. 

“This agreement is the result of many hours spent negotiating between the City and the PBA, once again demonstrating the power of collective bargaining,” said Mayor de Blasio. “It doesn’t matter how far apart the parties start; it matters where they end up. This agreement provides the compensation and benefits the world’s finest police department deserves, while outfitting the entire force with body cameras and delivering the transparency and policing reforms at the center of effective and trusted law enforcement.”

"With this contract settled, the country's finest police department can keep doing the great work the NYPD has long been known for - devoting all of our energy to fight crime, keeping this city safe, and continuing to build trust with the community," said Police Commissioner James P. O'Neill.

PBA President Patrick J. Lynch said, “New York City police officers are no better than anyone else, but we are different. We perform the most difficult police job anywhere in the world, and the challenges and dangers we face each day continue to grow. The agreement that we announce here today recognizes those challenges and continues to move New York City police officers towards a package of compensation and benefits that is equal to our status as the finest police officers in the nation. It has been a long and arduous process, but we are grateful that Mayor de Blasio and his team sat down with us and negotiated in good faith to achieve this agreement.”

“I am proud we were able to come together and negotiate the second voluntary agreement in 23 years,” said Office of Labor Relations Commissioner Robert Linn. “The settlement is fiscally responsible for the city and fair for officers.”

As part of today’s deal, the PBA has agreed to drop its body camera litigation against the City and the NYPD can expand the use of body cameras to the entire workforce – a huge step forward in increasing police accountability and transparency. All patrol officers will be outfitted with cameras by the end of 2019. Additionally, the PBA has agreed to withdraw and refrain from pursuing litigation related to the administration of naloxone – a lifesaving drug used by first responders as an emergency overdose treatment – and have agreed that such duties are a term and condition of employment.

The Administration recognizes that our widespread efforts to implement neighborhood community policing create a fundamental change in the work our officers do and as such, deserves compensation. As part of this settlement, effective March 15, 2017, all officers shall be entitled to a neighborhood policing differential in the amount of 2.25 percent of base salary. These increases are funded by a reduction in the salary schedule for newly hired employees – detailed further below:

First 1.5 years - $42,500

After 1.5 years - $45,000

After 2.5 years - $46,000

After 3.5 years - $47,000

After 4.5 years - $51,000

After 5.5 years - $85,292

With this this settlement, the PBA joins other uniformed unions in reaching a deal on accidental disability. The City and the PBA have agreed to jointly support State legislation that would provide three-quarter of salary in the event of disability. The pension benefit is expected to be consistent with the other uniformed unions and includes a 1 percent employee contribution. Savings from the labor agreement were used to lower the required employee contributions.

As part of the agreement, the PBA has agreed to withdraw all litigation related to the 2014 and

2016 letter agreements regarding health savings and welfare fund contributions between the City and the Municipal Labor Committee. This means that the members of the PBA are now full participants in the joint goal of attaining the $3.4 billion in health care savings that the City and the MLC agreed upon in May 2014. Savings found from their participation will help fund pay increases included in this settlement.  

Fair Wages

The tentative contract agreement is consistent with the established city pattern. Wage increases will constitute 11 percent over seven years when combined with the previous two-year arbitration award reached in 2015:

August 1, 2012 – 1.0%

August 1, 2013 – 1.0%

August 1, 2014 – 1.5%

August 1, 2015 – 2.5%

August 1, 2016 – 3.0%

Affordable Costs

The cost of today’s tentative agreement over the contract period is consistent with that established with the other uniformed unions. The vast majority of these costs are covered in the labor reserve. Any incremental costs are in savings will be reflected in the labor agreement.

Gross Cost: $530.4 million

Health Savings and Stabilization Fund: ($193.7 million)

Net Cost: $336.7 million

SENATOR KLEIN PENS LETTER TO DOT REQUESTING INCREASED PEDESTRIAN SAFETY MEASURES OUTSIDE LEHMAN HIGH SCHOOL FOLLOWING LAST WEEK'S ACCIDENT

State Senator Jeff Klein penned a letter to acting Bronx Borough Commissioner of the Department of Transportation Nivardo Lopez calling for increased pedestrian safety measures outside of Lehman High School following a recent accident where an NYPD School Safety Agent was struck and critically injured by several cars outside of the Bronx campus. The 59-year-old victim was crossing Little League Place at East Tremont Avenue about 6 a.m. on January 24 when he was hit by a car, and then run over by two other vehicles. The accident left the city worker with severe head trauma and multiple broken bones. He was initially listed in critical condition, but has since stabilized.

“Adequate pedestrian safety measures surrounding city schools is a no-brainer. Students, staff and NYPD School Safety Agents shouldn’t have to risk their lives while walking to and from school. My thoughts and prayers are with the victim and his family of last week’s accident, and I hope for his speedy recovery. More could be done to protect the well-being of pedestrians at, and near, the accident site. I’m hopeful the DOT will consider my request and examine all possible solutions to reduce the likelihood of another tragedy like this from occurring,” said Senator Klein.

Senator Klein has asked that the DOT explore all possible options to boost pedestrian safety at that intersection, as well as the nearby stretch of East Tremont Avenue in front of Lehman High School. In the letter, Senator Klein suggests the installation of more School Zone signs and crosswalks on East Tremont Avenue. At the accident site intersection, there is only a crosswalk on Little League Place, not across East Tremont Avenue. In fact, there’s long stretch without a crosswalk on East Tremont Avenue from the school’s main entrance to Westchester Avenue.

The stretch of East Tremont Avenue in front of Lehman High School has been problematic in the past. Workers at nearby businesses recalled a recent multi-car accident where a sedan overturned in front of the campus, temporarily trapping its occupants. In addition to more signs and crosswalks, Senator Klein recommends a speed camera be placed near the school to act as an additional deterrent to reckless drivers.