ENGEL: TRUMP MUST RELIEVE FLYNN and Statement on Court of Appeals Ruling Against The President’s Muslim Ban

   Representative Eliot L. Engel, Ranking Member of the House Committee on Foreign Affairs, today made the following statement:

“It's clear that concerns about General Flynn's ties to Russia were well warranted. It's unacceptable that during the transition, General Flynn discussed lifting sanctions with Russia's ambassador. This action would be deeply troubling under any circumstances, but considering Russia’s effort to tip the election toward President Trump, the General's actions are disqualifying. And if General Flynn negotiated with Russia to change American policy, he may be in violation of the Logan Act, which bars such conduct.  The President must relieve General Flynn immediately.

“To make matters worse, the Administration has been misleading the public about this situation ever since. Either General Flynn lied to the Administration or the Administration lied to the American people. In any case, the Administration's sloppy handling of such a serious issue creates a threat smack in the middle of our national security apparatus.

“We need to sort this mess out. Congress must conduct a thorough, nonpartisan investigation into Russia's illegal interference in our election and take steps to punish those responsible.”

Engel Statement on Court of Appeals Ruling Against The President’s Muslim Ban

  

"The Court of Appeals did the right thing by keeping President Trump's dangerous and unconstitutional Muslim travel ban on ice. But this misguided policy remains a problem, even if enforcement has stopped. America's enemies continue to seize on this foolish order as a propaganda tool, stoking anti-American hatred and harming our country's standing in the world. President Trump should do the right thing and rescind this order completely.”

MAYOR DE BLASIO ROLLS OUT NEW AFFORDABLE HOUSING INITIATIVES FOR SENIORS, VETERANS AND FAMILIES MOST IN NEED

Mayor announces $1.9 billion for deeper affordability at 10,000 apartments; unveils new Elder Rent Assistance program to be funded by proposed ‘Mansion Tax’ to serve 25,000 seniors

   Mayor Bill de Blasio today announced as part of his upcoming State of the City address two major initiatives to help seniors, veterans and other low-income families afford rent in New York City. The first will increase by 10,000 the number of apartments in Housing New York serving households earning less than $40,000—5,000 of which will be dedicated to seniors and 500 for veterans. The second is a new Elder Rent Assistance program to be funded by the City’s proposed Mansion Tax, in Albany, that will serve more than 25,000 seniors with monthly rental assistance of up to $1,300.

“We are taking our record progress on affordable housing and driving it even deeper. This crisis is hitting seniors on fixed incomes, veterans and struggling families especially hard. We’re fighting for their right to live in this city,” Mayor Bill de Blasio said.

“The City's unaffordable housing crisis is felt by all but particularly by vulnerable seniors who may live on a fixed income. These new initiatives show progress for seniors and low-income New Yonkers, who are struggling to find stable affordable homes,” said Councilman Ritchie Torres of the Bronx. 

“Too many of today's seniors are living in poverty and too many of our Boomers and Gen Xers who are approaching retirement don't have sufficient savings to afford New York City's high cost of living, particularly for housing.  Today's announcement by Mayor de Blasio is great news for city seniors and all New Yorkers,” Chris Widelo, Associate State Director, AARP New York, said.

Allison Nickerson, Executive Director, LiveOn NY, said, “LiveOn NY's study reported 200,000 low income seniors on waiting lists citywide for affordable housing. We appreciate Mayor de Blasio's recognition of the dire need for affordable housing among older New Yorkers by increasing the number of senior apartments to be built by 50% - from 10,000 to 15,000. Older New Yorkers are anchors in their communities. Building affordable housing is a solution that will benefit both seniors and the whole community. LiveOn NY supports the Mayor's efforts to provide a housing safety net for older New Yorkers.”

Under the new benchmark, the number of apartments in the Mayor’s housing program dedicated to families earning between zero and $40,000 per year will rise from 40,000 to 50,000. Of the 10,000 units, half will serve seniors whose fixed incomes have left them struggling to keep up with rising rents and a further 500 will house veterans.

The Mayor’s Housing New York program is on target to build or protect 200,000 affordable homes in 10 years, and has financed a record breaking 62,500 affordable homes in just three years. That was done on-budget and ahead of schedule. The programs that will see increased funding under the adjusted benchmark are the Extremely Low & Low-Income Affordability Program, ELLA, and the Senior Affordable Rental Apartments Program, SARA, among others, which were established in 2014. Now firmly in place and exceeding their targets, the City is committing an additional $1.9 billion to achieve this deepened affordability through the duration of the plan.

In addition, revenues under the Mayor’s Mansion Tax proposal would be lock-boxed specifically for senior affordable housing. The tax would institute a 2.5 percent marginal tax for incremental price over $2 million. According to recent sales data, the policy would affect the top 4,500 residential real estate transactions in the upcoming year and would generate approximately $336 million in Fiscal Year 2018. Those funds would be devoted to a new rental assistance program for 25,000 New Yorkers, 62 years and older who earn less than $50,000 per year.

The rental assistance would ensure a senior living on a Social Security check of $1,350 per month would spend no more than $450 per month on rent—helping them stay in their home and age with dignity.

Patricia Manning Retirement Party from Community Board 8

   The officers of Community Board 8 didn't just want to say thank you and good-bye to their District Manager Pat Manning after she retired on December 30th of 2016. They got together to have a Happy Retirement Party for their former District manager who had begun working at the Community Board 8 office in 1983. The attendees included current and former elected officials, many of the ten board chairs Ms. Manning worked for, current and former CB 8 members, local community leaders, and some of those who attended District Service Cabinet Meetings held by District Manager Manning.  

Above - (l - r) Current Cb 8 Chair Dan Padernacht, Assemblyman Jeffrey Dinowitz, Ms. Patricia Manning, Former CB8 chair Bill Stone, Deputy Bronx Borough President Aurelia Greene, Former CB 8 Chair Martin Wolpoff, and current Councilman (and former CB8 member) Andrew Cohen.

Below - Ms. Manning receives a proclamation from Deputy Bronx BP Greene.

Above - State Senator Jeff Klein reads a proclamation from the State Senate for Ms. Manning.

Below - Assemblyman Jeffrey Dinowitz also had a proclamation from the State Assembly for Ms. Manning. 

Above - Since Congressman Engel was busy in Washington, former staffer to the  congressman,and current CB 8 chair of the Public Safety Committee stood in for Congressman Engel in giving Ms. Manning a proclamation from Congress.

Below - Current CB8 Chair Dan Padernacht reads from the proclamation given to Ms. Manning from Mayor Bill de Blasio.

Above - Former Councilwoman and also former chair of CB8 June Eisland congratulates Ms. Manning on her service to the community.

Below - Current Councilman Andrew Cohen and former CB 8 member also congratulates Ms. Manning on her service to the community.

Above - The delicious cake said it all with 'Best Wishes Pat'.

Below - Mr. Randy and Patricia Manning who will now be able to spend much more time together.

Some Photos of Today's Snowfall

  Here are some photos of the  snowfall in the Riverdale area.

Above - While most of the city had 8 - 12 inches of snowfall, the Bronx was hit with 6 - 8 inches.

Below - What the Henry Hudson Parkway southbound looked like at noon from the  West 239th Street overpass.

Above and Below - Plows were out large ones from the Department of Sanitation, and small one from the Department of Transportation.

Above - There were even plows from the New York City Transit Authority.

Below - To help keep the buses rolling. Notice the chains on the rear tires of this bus which had to go up hills.

Above - Even the UPS truck was out making deliveries, but today there were no Traffic Enforcement Agents to write tickets for them. 

Below - One of my favorite eating places in Riverdale Yo Burger may have been closed, but it was quite a scene to see all the snow on the tables and seats outside.

Former DEA Agent Sentenced For Making False Statements Regarding Employment At Adult Entertainment Establishment

   Preet Bharara, United States Attorney for the Southern District of New York, announced today that DAVID POLOS, formerly an Assistant Special Agent-in-Charge with the Drug Enforcement Administration (“DEA”), was sentenced to one year of probation, 250 hours of community service, and $5,300 in financial penalties for conspiracy and making false statements to the government regarding his and a DEA colleague’s employment at an adult entertainment establishment. POLOS, who was convicted at trial along with co-conspirator and former DEA colleague Glen Glover on June 9, 2016, was sentenced today by U.S. District Judge Paul G. Gardephe. In sentencing POLOS, Judge Gardephe said that POLOS’s behavior was “truly shocking” for a law enforcement official who held “a great deal of responsibility.”

Manhattan U.S. Attorney Bharara said: “David Polos, a former supervisory DEA agent, was sentenced today for lying on his national security forms. Even more so than others, federal agents, sworn to enforce the law, must first obey it themselves. Polos violated his oath and broke the law. He now stands a convicted felon.”

According to the evidence established at trial:

POLOS, who supervised the Organized Crime and Drug Enforcement Strike Force as an Assistant Special Agent-in-Charge, and Glover lied about his employment at, and ownership interests in, an adult entertainment establishment (the “Club”) in Northern New Jersey in connection with a background check that was specifically designed to determine their suitability as employees of a federal law enforcement agency with access to classified information. POLOS also failed to disclose, in response to a question about his relationships with foreign nationals, his intimate relationship with a Brazilian national who danced at the Club. The national security forms POLOS and Glover submitted in connection with the background check required disclosure of outside employment in part due to concerns attendant to certain types of employment, including proximity to crime and persons involved in crime and the risk of employee blackmail.

Glover and POLOS submitted national security forms in August and September 2011, respectively, that stated, among other things, that they did not have employment other than their DEA jobs within the previous seven years, and that POLOS had not had any close, continuing contact with foreign nationals during that same period of time. In fact, Glover was the part owner of, and POLOS had a convertible ownership interest in, the Club. POLOS had, at the time he submitted his form, begun an intimate relationship with a foreign national from Brazil who worked as a dancer at the Club. POLOS and Glover had been warned by others, including Club employees, that at times drug use, drug sales, and illicit sexual activity appeared to be taking place at and outside the Club, which also operated as an all-cash business and did not pay required taxes during its first year in operation.

POLOS and Glover both worked regular managerial shifts at the Club in the months prior to and following their submission of the national security forms. They also hired, fired, and paid bartenders, dancers, and bouncers; supervised the Club’s renovation, advertised the Club in local periodicals; manned a back office available only to employees; remotely monitored video camera feed from the Club when not present; and generally tended to various Club-related matters. POLOS and Glover at times attended to Club matters during DEA work hours.

Had POLOS and Glover truthfully disclosed their employment at the Club, their ownership and involvement in the affairs of the Club would have been investigated as part of their background checks, and the security clearances that they were required to maintain as federal law enforcement employees likely would have been denied.

POLOS, 51, of West Nyack, New York, and Glover, 45, of Lyndhurst, New Jersey, were convicted of one count of conspiracy to make false statements, and were each convicted of one count of making false statements, in connection with their work at the Club. POLOS was convicted of an additional count of false statements in connection with his failure to disclose his relationship with a foreign national. Glover is due to be sentenced on February 10, 2017.

Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. He also thanked the Internal Revenue Service-Criminal Investigation Division for its assistance.

Statement From A.G. Schneiderman On Decision By D.c. Federal District Court Enjoining Merger Between Health Insurers Anthem And Cigna

  Attorney General Eric T. Schneiderman issued the following statement on the decision by the U.S. District Court for the District of Columbia to enjoin the anticompetitive merger between insurance giants Anthem and Cigna. On July 21, 2016, Attorney General Schneiderman filed a joint lawsuit with the Department of Justice, ten other states, and the District of Columbia, which sought a court order to halt the merger between the two companies:

“This decision is a significant victory for consumers in New York and across the country. The Anthem-Cigna merger had the potential to harm millions of consumers who are covered by health insurance plans—including hundreds of thousands of New Yorkers—in the form of higher premium costs, reduced accessibility, and lower quality of care.  I thank my federal and state partners for their remarkable work in the fight to stop this merger. Effective competition is essential in healthcare markets, and we will continue to vigorously enforce the antitrust laws to prevent mergers that may harm consumers.”

The complaint alleged, and the District Court agreed, that the merger would lessen competition  in the market for national plans sold to large employers covering employees within the fourteen states where Anthem operates as the Blue Cross Blue Shield licensee, including New York. The complaint also alleged that the merger would lessen competition for large employer plans in 35 local markets, including the New York City metropolitan area, and that the merger would drive down reimbursement rates for healthcare providers in a manner that might affect access to and quality of health care services in some areas of the country, including the New York City metropolitan area.  The District Court did not need to reach those issues because it enjoined the transaction based on the national plan allegations alone.

Anthem and Cigna are two of the top five largest national health insurance carriers in the United States and, collectively, provide commercial health insurance to approximately three million individuals in New York City.

The case is captioned United States et al. v. Anthem Inc. et al., and is docketed with the U.S. District Court for the District of Columbia under Civil Action No. 1:16-cv-01493 (Jackson, J.).

A.G. Schneiderman Announces $255,000 Settlement With General Contractor And Developer For Failure To Pay Workers Required Prevailing Wage

Settlement Is First Time Attorney General’s Office Has Enforced Prevailing Wage Laws Through The New York False Claims Act

Schneiderman:  We Will Not Allow Developers Or Contractors To Profit Off The Backs Of Hard-Working New Yorkers

   Attorney General Eric T. Schneiderman today announced a $255,000 settlement resolving whistleblower allegations that a New York City-based general contractor, a property developer, and their principals failed to enforce the prevailing wage requirements of their public works project.  The settlement was reached with A. Aleem Construction Inc., the general contractor (“Aleem”), its owner Mervyn Frank, and West 131st Street Development Corp., the developer (“West 131”), and West 131’s principals, Alan Levine and Ralph McKoy. As part of the settlement, Aleem and West 131 will pay a total of $255,000 in penalties and restitution.  The restitution will be used to fulfill unpaid wages and overtime for up to 28 carpenters and laborers cheated on Aleem and West 131’s project.  The Laborers’ Eastern Region Organizing Fund (“LEROF”), as the relator that alerted the Attorney General to this fraud, will receive a portion of the overall payments made by Aleem and West 131.

The settlement reached in this case marks the first time that the prevailing wage laws have been enforced through the New York False Claims Act.

“We will not allow developers or contractors to profit off the backs of hard-working New Yorkers,” said Attorney General Schneiderman. “The law is clear: government contractors must pay their workers the prevailing wage. We will continue to aggressively pursue those who rip off taxpayers and fail to compensate workers the wages they are owed.”

The New York False Claims Act, an important tool for fighting fraud against the government, allows whistleblowers who have knowledge of fraud (known as “relators”) against New York State or local governments to file a complaint and to receive a portion of the money recovered.  In this case, the construction contract required workers to be paid the prevailing wage.  Prevailing wage laws seek to ensure that government contractors pay wages and benefits comparable to the local norms for a given trade, typically well above minimum wage rates.

The Attorney General alleges that Aleem and its owner and West 131 and its principals violated the New York False Claims Act by making claims for payment while acting in reckless disregard of their contractual obligations to ensure compliance with the prevailing wage laws.  An investigation by the Attorney General’s Office found that, despite their legal and contractual obligations to do so, these entities and individuals failed to ensure that the workers on the project were paid the required prevailing wages and, in fact, that at least some of the workers on the project were not paid as required by law. 

The Attorney General’s investigation relates to Aleem and West 131’s participation in the Neighborhood Entrepreneurs Program of the New York City Department of Housing Preservation and Development (HPD), in which private developers renovated and resold deteriorated City-owned buildings.  The project was funded in part with federal monies and, as a consequence, federal prevailing wage laws applied.

As part of the settlement agreement, the Attorney General secured commitments from Aleem and West 131 to submit to extensive compliance, remediation, and training requirements.  The Attorney General’s Labor Bureau will actively monitor their adherence to these requirements.

The settlement stems from a joint enforcement effort with the United States Department of Labor (“USDOL”) in which the two agencies worked collaboratively to protect the rights of workers in New York.  The USDOL previously obtained a settlement of $189,000 from Aleem and its owner based on prevailing wage underpayments, and this payment will be credited toward the amount owed under today’s settlement.

“Contractors commit to paying workers the required wages and fringe benefits when they bid on federally funded construction contracts with taxpayer funds,” said Regional Administrator Mark Watson, Jr., U.S. Department of Labor, Wage and Hour Division. “Failure to pay prevailing wages deprives workers the wages they have earned, and gives an unfair advantage over employers who obey the law.”

James W. Versocki of Archer, Byington, Glennon & Levine LLP represents the Laborers Eastern Region Organizing Fund of the Laborers International Union of North America (“LIUNA”), the relator in this matter.   The Attorney General thanks the Laborers Eastern Region Organizing Fund for alerting his office to these serious violations of the law and for assisting the OAG in its investigation. 

Robert Bonanza, Business Manager of the 17,000 Member Mason Tenders District Council Of Greater New York, LIUNA said, “With the announcement of this first ever prevailing wage case settlement under the New York False Claims Act, Attorney General Schneiderman has shown that wage theft can be combatted through partnerships with whistleblowers, such as the Laborers Eastern Region Organizing Fund. On a daily basis we see the effects of wage theft on workers and their families, and once again the Attorney General has shown his commitment to protecting working people.” 

LEROF will utilize its share of the proceeds from the case to continue its mission of worker advocacy and outreach.

The Attorney General thanks the New York City Department of Housing Preservation and Development and the New York City Law Department’s Affirmative Litigation Division for their assistance in this investigation.

The investigation leading to the settlements announced today was conducted by the Taxpayer Protection Bureau, which Attorney General Schneiderman established in 2011 to combat the fraud and abuse of taxpayer dollars, and by the Attorney General’s Labor Bureau.

A.G. Schneiderman And Consumer Financial Protection Bureau Announce Lawsuit Against RD Legal

Lawsuit Also Accuses Company Of Deceiving National Football League Concussion Victims

Schneiderman: The Alleged Actions By RD Legal—Scamming 9/11 Heroes And Former NFL Players Struggling With Severe Injuries—Is Simply Shameful

   Attorney General Eric T. Schneiderman and the  Consumer Financial Protection Bureau (CFPB) announced today a lawsuit against RD Legal Funding, LLC, two related entities, and Roni Dersovitz, the companies’ founder and owner, for allegedly scamming 9/11 heroes out of money intended to cover medical costs, lost income, and other critical needs. RD Legal also allegedly conned National Football League (NFL) concussion victims. The Attorney General’s office and the CFPB allege that the illegal scheme deceived 9/11 first responders with cancer and other illnesses and football players with brain injuries out of millions of dollars by luring them into costly advances on compensation fund and settlement payouts by lying about the terms of the deals. In the suit filed in federal court, the lawsuit seeks to put an end to the company’s illegal practices, obtain relief for the victims, and impose penalties.

“The alleged actions by RD Legal—scamming 9/11 heroes and former NFL players struggling with severe injuries—are simply shameful. RD Legal used deceptive tactics to charge unlawfully high interest rates for advances on settlement and compensation funds, allowing them to profit off the backs of these unsuspecting individuals,” said Attorney General Schneiderman. “My office will do all it can to end the fraudulent practices employed by RD Legal, recoup the illegal amounts charged by this company -- and make these victims whole again.”

“It is unconscionable that RD Legal scammed 9/11 heroes and NFL concussion victims out of millions of dollars,” said CFPB Director Richard Cordray. “We allege that this company and its owner lined their pockets with funds intended to cover medical care and other critical expenses for people who are sick and sidelined. Our lawsuit seeks to end this illegal scheme and get money back to those entitled to receive it.”

RD Legal, based in Cresskill, N.J., is a company that offers advances to consumers entitled to payouts from victim compensation funds or lawsuit settlements. The company targeted fund awardees including police, firefighters, paramedics, and others who were first responders to the World Trade Center attack on September 11, 2001. Many of these first responders suffer from cancers and other respiratory illnesses related to their exposure to dust and debris at the attack site, post‐traumatic stress disorder, depression, and memory loss. They were awarded money from the Zadroga Fund, established by Congress to assist with needs including mounting medical costs and lost income because of their inability to work. The company also targeted former NFL players who have been diagnosed with neurodegenerative diseases such as Alzheimer’s and Parkinson’s disease and were entitled to payments from the settlement in a class action lawsuit.

The CFPB and the New York Attorney General allege that RD Legal contacted these consumers after they were awarded their money but before they received most of it. RD Legal then swooped in with a “deal,” offering the victims an upfront payment of some of the money they had not yet received which would be paid back when they received the balance of the payout. Through confusing contracts, RD Legal misrepresented to consumers their obligation to repay these expensive transactions, often collecting from the consumer more than twice what RD Legal had advanced only months earlier. Today’s lawsuit alleges that RD Legal’s illegal actions cost victims, many of whom suffered long‐term physical or cognitive harm, millions of dollars.

The CFPB and the New York Attorney General allege that the defendants violated several laws, including the Dodd‐Frank Wall Street Reform and Consumer Protection Act’s prohibition on deceptive and abusive acts and practices. Specifically, the CFPB and New York Attorney General allege that RD Legal:

• Lured consumers into costly payouts by lying about the terms of the deal: Through convoluted contracts, RD Legal misrepresented to consumers what they were being offered. These misrepresentations deceived consumers, interfered with their understanding of the terms, costs, and conditions of the transactions, and prevented them from meaningfully evaluating what was being offered. The products were expensive. For example, one consumer was awarded $65,000 from the Zadroga Fund. While she waited for her full payment from the fund, RD advanced her $18,000. When her award payment from the fund arrived six months later, she had to repay $33,000 to RD Legal – so she paid $15,000 to RD above and beyond the money RD Legal advanced to her.

• Lied about speeding up the processing of consumers’ claims: RD Legal lied to consumers by claiming that it could “cut through red tape” to obtain their anticipated payments from claims administrators faster than would otherwise be possible. In fact, RD Legal had no authority or ability to change when victim compensation or settlement payouts occurred.

• Deceived consumers about when they would receive the money from RD Legal: RD Legal misrepresented to consumers when they would receive money from the company. On its website, the company promised that consumers would receive the money within several days of entering into the contract, but some consumers did not receive money until months after it was promised.

• Illegally collected money from consumers: When consumers received their payouts from their actual settlement funds, RD Legal attempted to recover its money from the victims. But the complaint alleges that the costly transactions are not valid and enforceable or they are void under New York law because they violated the state interest rate cap. As a result, no payment is due and RD Legal had no right to collect.

The Attorney General's Office also alleges additional violations of New York state law in the complaint, including that these transactions are in fact loans under New York law with usurious interest rates.  On many of these loans, RD Legal collected effective interest rates ranging from 18% to over 250%.  These interest rates exceed New York’s 16% civil usury cap and its 25% criminal usury cap.  Under New York law, contracts that charge more than the maximum usury rate are void.  RD Legal also engaged in false advertising and deceptive, fraudulent and illegal practices under New York law.  

The CFPB and New York Attorney General complaint can be found here.