Tuesday, May 30, 2017

NEW YORK CITY IS THE LARGEST CITY TO END ABUSIVE SCHEDULING PRACTICES IN THE FAST FOOD AND RETAIL INDUSTRIES


Predictable schedules and predictable paychecks are now a right, not a privilege, in these low-wage industries

Today, Mayor de Blasio, City Council members, advocates, and workers held a rally at City Hall to mark the “Fair Workweek” package of bills becoming law. This package will ensure that predictable schedules and predictable paychecks for fast food and retail workers in New York City will be soon be rights, not privileges.

The Mayor’s package, which includes bills that deliver on his promise to end unfair and inconsistent scheduling practices in the fast food industry, will hold fast food and retail corporations operating in New York City accountable for their scheduling practices, which have left workers with little sense of when they will work and how much they will earn. Such practices have made it too difficult for hundreds of thousands of low-wage earners in New York City to obtain additional employment, plan for child or elder care, or further their education. The Mayor will sign the bills as part of a bill signing ceremony later this afternoon and they will go into effect in 180 days.

“Last fall, we promised to make the lives of some of our city’s hardest working just a little bit easier by bringing fair, predictable scheduling to their jobs. These bills deliver on that promise,” said Mayor Bill de Blasio. “Predictable schedules and predictable paychecks should be a right, not a privilege. With this legislation, we are continuing to build a fairer and more equitable city for all New Yorkers.” 

“The City Council is proud to have passed the Fair Work Week legislative package – the most comprehensive and progressive package of its kind nationwide – by a nearly unanimous vote,” said Speaker Melissa Mark-Viverito. “These measures represent significant steps forward in protecting local fast food and retail employees from unfair, unsustainable and unpredictable workplace practices and environments. I applaud my colleagues for their work on this essential issue, and I thank Mayor de Blasio for signing it into law today.”

The fast food scheduling-related bills, which were announced in part by Mayor de Blasio last fall, would require fast food employers to give written notice of schedules to their employees no less than two weeks in advance, written “good faith” estimates of weekly hours to new employees, regulate the practice of “clopenings,” or consecutive closing, then opening, shifts, and would also require fast food employers to offer any new shifts to current employees before they hire anyone else. If a fast food employer makes changes to an employee’s schedule with less than 14 days’ notice, the employer must pay the employee a premium.

An additional fast food industry-related bill requires fast food employers to deduct and remit voluntary contributions to nonprofits when their employees make such a request in writing, if the recipient nonprofits meet certain requirements.
Lastly, a bill applicable to those retailers with 20 or more employees in New York City prohibits such retailers from scheduling their employees for “on call” shifts, which force employees to check in with their employers on little to no notice about whether or not they will be working on any given day.

This package’s new scheduling-related requirements will ensure that hundreds of thousands of hardworking New Yorkers who are trying to make ends meet no longer face entrenched obstacles imposed by profit-driven corporations when they are simply trying to plan for how and when their families will be cared for and how much will be in their paychecks at the end of the week.

Across the country, nearly one in five Americans has an unstable work schedule and about 40 percent of early career workers, defined as workers aged 26 - 32, have less than one week advance notice of their schedules. This is particularly an issue with workers in industries such as fast food and retail, in which nationally the average worker age is 29 and in which an average of 25 percent of workers are raising children.

Enforcement of these Fair Workweek laws will fall under the jurisdiction of the City’s Office of Labor Policy and Standards (OLPS), which is housed within the Department of Consumer Affairs (DCA). OLPS is NYC’s central resource for workers and serves as a dedicated voice in City government for workers in NYC. The Office enforces key municipal workplace laws, conducts original research, and develops policies that are responsive to an evolving economy and issues affecting workers in New York City, particularly people of color, women, and immigrants.

The de Blasio administration continues to raise the bar nationally when it comes to ensuring low-wage, immigrant, or other vulnerable workers, including women and people of color, are protected from exploitation. To date, DCA-OLPS has secured more than $5 million in fines and restitution on behalf of 16,000 workers in New York City who have been denied their right to paid sick leave, and the Office is also now implementing the first-of-its-kind “Freelance Isn’t Free Law,” which guarantees nearly all freelancers the right to a written contract and timely payment. In addition to enforcing many such municipal workplace laws, OLPS also houses the first-of-its-kind Paid Care Division, which is focused on researching and advocating on behalf of paid care workers – those who provide child care, elder care, or performing other domestic work – thereby constituting a critical part of the nation’s social and economic infrastructure.

Laws enforced by other agencies, such as the City Commission on Human Rights, ensure that workers are protected from discrimination in the hiring process and while at work based on a variety of factors, including, but not limited to, credit history, criminal history, actual or perceived race, gender, age, sexual orientation, disability, immigration status and country of origin, among other protected categories. New York City also recently became the largest city in the nation to ban employers from asking about salary history during the recruitment process, an important change that will help close the persistent wage gap between men and women. To ensure that all New Yorkers are protected, the city has ensured that all municipal workplace laws apply to workers regardless of their immigration status.

Bronx Council for Environmental Quality - Thurs 6/1 Boro Pres Hearing PIER 5 Parkland at 11 AM


  
  This Thursday June 1st at 11:00am at 851 Grand Concourse on the 9th floor of the Bronx County Court House, Bronx Borough President Ruben Diaz's office will be holding their required hearing on the EDC proposal to build Housing on Pier 5, property that had been considered Parkland by the community since the building of the Gateway Mall and the New Yankee Stadium.
 
It will be important that as many people as possible come to testify or send testimony in to the Borough President's Office.  You should be passionate about this cause as this is the only existing piers we have on the Harlem River.  Just like in Manhattan, all this land should be used for recreation and waterfront access for all.  Please reply to me directly if you are able to attend and please talk to your neighbors and friends about testifying or sending in testimony.
 
This is the first project to be proposed to be built directly on the Harlem River Waterfront and can set the precedence for construction along the entire length of our waterfront, probably beginning with the Lower Concourse Development (LCD).  EDC is also suggesting that the Pier 5 Project, which they have named as Lower Concourse North (although it is not apart of this original rezoning of the Harlem River Waterfront) will be able to utilize part of the $200 Million dollars set aside for LCD to set up utilities that will be shared among to the two locations, thereby cutting down on the funding available for the previous project.
 
Thursday June 1st 
11:00 am 
851 Grand Concourse
Room 915 on the 9th floor 
Bronx County Court House

MAYOR DE BLASIO NAMES EAST 42ND STREET BETWEEN 2ND AND 3RD AVENUES “JIMMY BRESLIN WAY”


For the next week, street in front of the Daily News Building, where legendary columnist colorfully captured New York City, will be temporarily renamed in his honor

  Mayor Bill de Blasio announced that the block of 42nd Street between Second and Third Avenues in midtown Manhattan will be temporarily renamed after legendary newspaper columnist and author Jimmy Breslin, who died in March at the age of 88. The sign is on the block of the former home of the Daily News, the newspaper where Breslin worked the longest. 

“Jimmy Breslin told stories with a vivid eye for detail and in the inimitable voice of a true New Yorker,” said Mayor Bill de Blasio. “For decades, from the Kennedy assassination to the Son of Sam and beyond, his writing provided must-read accounts that helped to define seminal news events in our collective memory.  His gritty and real columns underscored a serious and deep concern for the most downtrodden amongst us, helping to define modern journalism.  Now, the block that was once home to the Daily News will officially be named for him – a fitting tribute to one of New York’s greats.”

Jimmy Breslin was born in Jamaica, Queens and began his career as a copy boy for the Long Island Press in the 1940s.  His writing first gained national attention when after the Kennedy assassination, he interviewed the diggers of President John F. Kennedy’s grave at Arlington National Cemetery. Over his career, Breslin served as a columnist for the New York Herald Tribune, the New York Journal American, and Newsday.  His two separate tenures at the New York Daily News spanned 18 years, wherein he won both the George Polk award (1985) and the Pulitzer Prize for Commentary (1986). Over a career of sixty years, Breslin also authored more than 20 books, including Can’t Anybody Here Play this Game? and The Gang That Couldn’t Shoot Straight.

No other city in world would have a tough writer from Richmond Hill, Queens up on a lamppost next to the names Nelson Mandela and Yitzhak Rabin,” said Kevin Breslin, son of Jimmy Breslin. “May his spirit inspire many generations of journalists to come.”

The Mayor has the power to temporarily rename a street for a matter of days. A permanent name change process for a street is handled through the legislative process following the introduction of a co-naming by a City Council Member, Council approval, and, ultimately, a mayoral signature. The Administration will continue to work with the Council, the community, and Breslin’s family, friends and colleagues on a permanent way to honor his legacy.


“We are proud to honor Jimmy Breslin along 42nd Street. a great New York City street where over sixty years of reporting, he helped establish the hard-edged, gumshoe reporting that defined an era of journalism,” said DOT Commissioner Polly Trottenberg. “Along with Ronnie Eldridge, his incredible wife of the last 34 years, Jimmy hardly slowed in his so-called “golden years.”  Instead, he bravely showed us until his final days all that New Yorkers can do much to make change all around this great City.  I offer my condolences to his entire family on their recent loss, and I am so gratified we could honor him in this way.”

Bronx Queer Pride Cultural Fest - June 8 - 24


BAAD! - The Bronx Academy of Arts and Dance presents
The 17th Annual
 OUT LIKE THAT! FESTIVAL PROUDLY CELEBRATING GAY PRIDE IN THE BRONX
 WITH A ZESTY FESTIVAL OF DANCE, FILM, THEATER & PERFORMANCE
 With Susana CookCharles Rice-GonzálezRichard Rivera/Physual, the famed Bohemia Night’s first Bronx presentation and a Queer Desi Event!
Plus next installment of Courageous Conversations with Kiara St. James and Jamal T. Lewis 
FESTIVAL RUNS JUNE 8-24, 2017
  For the past 17 years, The Bronx Academy of Arts and Dance (BAAD!) has marked LGBTQ pride month by presenting the Bronx’s only consistent gay pride celebration - The OUT LIKE THAT! Festival.  The events takes place at BAAD!’s home at 2474 Westchester Avenue from Thursday, June 8 through Saturday, June 24, 2017 with a fierce line-up of dance, theatre, film and wonderful performances featuring queer artists from the Bronx and beyond.  For information and directions call (718) 918-2110 or visit www.BAADBronx.org.
The OUT LIKE THAT 2017 festival performance schedule is as follows:
Thursday, June 8 at 8pm/$10 
Bohemian Night: Off Off Broadway 
Yoseli Castillo brings La Noche Bohemia / Bohemian Night to the Bronx! This bilingual LGBTQ open mic has been around since 2005 in Washington Heights. The medium this time is theater and the featured artists are actors Andres "Chulisi" RodriguezMariposa Fernandez and Marcus Potts. The open mic is open to other artistic disciplines. As usual, Cany de La Vega DJs. 

Friday, June 9 at 8pm / $20, $15 
OUT DANCE! 
Through the beauty, daring and grace of dance, this shared bill of choreographers express their strength and pride with contemporary dance, House moves and even Indian dance by Anooj Bhandari, ColemanCollective, Filip A. CondeescuLinda LaBeijaJames LaTeekJordan Martin, Nikolai McKenzie and Kiran Rajagopalan.


Friday & Saturday, June 16 & 17 at 8pm / $20, $15 
RICHARD RIVERA/PHYSUAL presents BACH 2 THE RED ZONE 
Bach 2 the Red Zone revisits moments of personal growth, acceptance and self-realization. Invoking a space that liberated the body and provided pulses that stirred the spirit to dance, the journey of Bach 2 the Red Zone finds inspiration in the classical moves of an elaborate club culture, circa late 80’s early 90’s. With Alethea Pace, Alexx Shilling, Jule Jo Ramirez, Aya Saotome, Ari Garcia, Ricardo McKenzie, Wesley McIntyre and Jaime Dyre.


Sunday, June 18 at 2pm Open Gallery | 4pm Performance / $10 
#Queer #SouthAsian #Diaspora 
#NOTENSION2017 
#NoTension2017 is a celebratory showcase of queer South Asian diaspora creatives: artists whose background is from and whose work is situated in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka, Tibet and the large diaspora. The first iteration of #NoTension will host the #BRWNISGLD participatory art space, original art vendors, community organizations, local diaspora chefs, and a multimedia performance showcase hosted by Desi drag queen LaWhore Vagistan. #NoTension is a collaboration between Daya Arts and BAAD! Bronx Academy of Art and Dance. Co-curated by Kiran Rajagopalan and Anuva Kalawar.


Monday, June 19 at 7pm / Free 
Courageous Conversations: Strategies for Living and Loving in America 
with Kiara St. James and Jamal T. Lewis 
Kiara St. James, the dynamic director of New York Trans Advocacy Group, and Jamal T. Lewis, the fearless cultural worker, artist and director of the upcoming documentary, No Fats, No Fems, lead this installment of Courageous Conversations. BAAD!’s new series of free topical talks and resilience workshops is led by leading thinkers and doers from the arts, media and politics is followed by a facilitated/open community forum for queer people on how to navigate and thrive in the current political climate.


Thursday and Friday, June 22 & 23 at 8pm/$15, $10 
I JUST LOVE ANDY GIBB 
Written and Directed by Charles Rice-González 
In “I Just Love Andy Gibb” two characters have a conversation across time – the late 1970s and today. Roy is a dark-skinned teenager in 1978 who is obsessed with teen pop idol Andy Gibb and Carlos is a 40+ Papi living in current times who feels “woke” to the oppression he has navigated as a Black, Latino gay man in the Bronx. Through a hiccup in time brought on by a shared fascination with youth, men and pop culture, they traverse through a maze of race and desire. Cast: Johnathan CedanoCarlos RosarioWilliam Jimenez and Maria Lagranje.


Saturday, June 24 at 8pm/$15, $10 
SUSANA COOK 
NON-CONSENSUAL RELATIONSHIPS WITH GHOSTS 
Originally presented at La MaMa, Susana Cook’s new work reveals that the ghosts of totalitarian past and present haunt our stories. The narrative that got us here no longer serves us. Thus, immigrants and refugees respond with urgency to resist and survive, creating a theatrical language of dissent and pleasure. Susana Cook redefines presence, the energy of the people who inhabit our life, and the ghosts of our past following us everywhere. Political satire and Resistance Theater at its best. Written and directed by Susana Cook, featuring: Mattie McMasterMichael BurkeDrae CampbellHector CanongeDorrell ClarkMistah Coles, Susana Cook, Moira CutlerMichael FreemanKathie HorejsiMarie Christine KatzAnnie LanzillottoHjørdis Linn-BlanfordMargherita Peluso,Jennifer Rodriguez, and Simba Yangala.

Crowned “a funky and welcoming performance space” by The New York Times, BAAD! is a performance and workshop space that presents cutting-edge works in dance and all creative disciplines empowering to women, Latinos and people of color and the LGBTQ (lesbian, gay, bisexual, transgender and queer) community. BAAD! is home to Arthur Avilés Typical Theatre (AATT) and the Bronx Dance Coalition which produces The Bronx Dance Magazine and was founded by Arthur Avilés and Charles Rice-González in 1998 in Hunts Point. BAAD! moved to Westchester Square in October 2013 to a gothic revivalist building on the grounds of St. Peter’s Church.

BAAD!/AATT receive support from The NYC Department of Cultural Affairs, The SHS Foundation, The Mertz Gilmore Foundation, The New York Community Trust, The Liberty Fund of the New York Community Trust, The Howard Gilman Foundation, The Lambent Fund of the Tides Foundation, The New York State Council on the Arts, Councilmember Jimmy Vacca, The Jerome Foundation and private donations.

Attorney General Eric Schneiderman Created the Problem, and then Left his Friends Hanging Out to Dry


What You Should Know 
By Senator Rev. Rubén Díaz 
32nd Senatorial District 


  You should know that when I was growing up in La Cuchilla Hato Tejas in Bayamon, Puerto Rico, my father, Mr. Isaac Diaz Amezquita, from a place called El Volcan always used to say: “My friends are my friends with their virtues and their faults.”

Plain and simple, what my Old Man wanted to say was that no matter what situations or problems his friends faced, he would never abandon them, no matter the cost because they were his friends. For my Old Man, friendship was a sacred thing, not an opportunity.

It is important for you to know that it seems that this is not one of the ethical principles or virtues that some of our elected officials show to their friends in their time of need.

Some of these elected officials, as Jesus' disciples did, will abandon their friends, their beliefs, and their convictions when under pressure.

On previous occasions in my column, I have explained how Mr. Eric Schneiderman, back in February 2014, used the power, influences and resources of the Office of the Attorney General to remove all the Members of the National Puerto Rican Day Parade's Board of Directors.

According to rumors, Mr. Schneiderman placed the National Puerto Rican Day Parade (NPRDP) in the hands of his friends from the MirRam Group and New York City Council Speaker Melissa Mark-Viverito, so they could pick a new Board of Directors and Ms. Lorraine Cortés-Vázquez as the new President.

Now that Mr. Eric Scheiderman's friends have caused a chaotic situation not only for the 2017 National Puerto Rican Day Parade, but also within our community here and in Puerto Rico, Mr. Schneiderman has run for cover.

Back in 2014, when the Attorney General made that decision, I was, if not the only one, one of the few people who publicly criticized and opposed Mr. Schneiderman's actions. Time has proven me right.

Now, I am one of those opposing the actions of the current National Puerto Rican Day Parade Board of Directors, and believe that for the good of the Parade, they should be removed and new Members who really respond to our community's interests should be appointed.

On the other hand, I also believe that Mr. Schneiderman should stand beside his friends. After all, he was the one who appointed them. His responsibility is to own his actions, publicly admit that he made a mistake, and fix it.

The National Puerto Rican Day Parade is the pride of us Puerto Ricans, but this year’s Parade has been abandoned, one by one, by businesses, community groups, social agencies, political leaders and many, many sponsors.

Starting with Goya Foods, Jet Blue, the New York Yankees, Corona Beer, Univision, Telemundo, the Daily News, NBC, the New York Post, the New York Police Benevolent Association, the New York Fire Department, New York City Police Commissioner James O’Neill, New York State Comptroller Tom DiNapoli, New York State Governor Andrew Cuomo, and many others have abandoned the National Puerto Rican Day Parade, and its Board of Directors who were placed there by Eric Schneiderman.

But surprise, surprise, as the old saying goes: Life is full of surprises.

Ladies and gentlemen, my beloved readers, you should know that New York State Attorney General Eric Schneiderman has also joined those who have abandoned the Parade and its Board of Directors.
It seems that Mr. Schneiderman has run for cover leaving his friends hanging out to dry.

Don’t forget that it was Eric Schneiderman who put in place the Members of the Board of Directors. It was Eric Schneiderman who said that he was replacing the Board of Directors for the good of the Parade and the good of the community.

In his official press release from February 13, 2014, Mr. Scheiderman stated: "With the reforms we are announcing, the new board can now take responsibility for putting the NPRDP on firm footing, so that the parade can be a success both this year and well into the future."

Hahahaha!

By abandoning his friends, Mr. Eric Schneiderman has sent a message that he is also against the title of “National Freedom Hero” given to Mr. Oscar López Rivera by the Board of the National Puerto Rican Day Parade.

Maybe Mr. Schneiderman and other elected officials in New York State should also learn from my Old Man and stick with their friends no matter what, or learn from Mayor Bill de Blasio who is sticking his neck out for his friend, Melissa Mark-Viverito.

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

Monday, May 29, 2017

Rudy Macina Peace Plaza Memorial Day Observance



  As it is every year on Memorial day a remembrance of those who gave their lives in the many wars fought overseas were honored today on Memorial Day. Mr. Silvio Mazzella is now the driving force behind this ceremony along with the remaining veterans from the Morris Park area of the Bronx. 

  As you will see in the photos below there are Headstones to remember the fallen hero's of World War One, World War Two, The Korean War, The Vietnam War, and the Persian Gulf War. A reef was laid upon the tombstones, and several shots were fired in honor of those who did not come back from the wars, those who came back with wounds, and the families of all the soldiers. 

  Mr. Silvio Mazzella read the names of those who have been a part of this ceremony, but have now joined their fellow soldiers who are no longer with us. Ms. Gillian Cannati sang The national Anthem in the beginning, and God Bless America at the end of the ceremony beautifully. State Senator Jeff Klein, Assemblyman Mark Gjonaj, Assemblyman Michael Benedetto, and a few others spoke during the ceremony. A wreath was laid on the Tombstones, and then there were three shots by Joseph Ronda of the Star of the Sea, Sea Cadets. 

  Mr. Mazzella thanked everyone who came, and it seemed that on this dark, gloomy, and rainy day there were over 100 people who came to remember the fallen soldiers this Memorial Day at the Rudy Macina Peace Plaza.


Above - Mr. Silvio Mazzella thanks the over 100 people who came to the Rudy Macina Peace Plaza to remember those who have lost their lives while fighting so this ceremony could take place.
Below - Ms. Gillian Cannati sings the National Anthem.




Above - Mr. Mazzella talks a little about Memorial Day and then introduces the elected officials in attendance to say a few words.
Below - State Senator Jeff Klein tells what makes this day special to him.




Above - Assemblyman Michael Benedetto, 
Below - Assemblyman Mark Gjonaj speak of the importance of Memorial Day.




Above - The Memorial Headstones for those who fought in World War One, World War Two, and The Persian Gulf War. The first footstone next to them is in honor of Rudy Macina.
Below - The Memorial Headstones for those who fought in the Korean War, and the Vietnam War.




Above - A reef is being placed on the flagpole above the five headstones.
Below - The ceremonial Twenty-One Gun Salute by Mr. Ronda is given. 


Acting U.S. Attorney Reaches Agreement With Architecture Firm Over Failure To Ensure Accessibility In Manhattan Apartment Complex


  Joon H. Kim, Acting United States Attorney for the Southern District of New York, announced that the United States has settled a federal civil rights lawsuit against SLCE ARCHITECTS, LLP (“SLCE”), by consent decree.  The suit alleges that SLCE violated the federal Fair Housing Act (“FHA”) by failing to design the Verdesian Apartments (“The Verdesian”), a Manhattan residential apartment complex, with the features required by the FHA to ensure accessibility for persons with disabilities.  

Under the settlement, SLCE agrees to establish procedures, including the appointment of a Coordinator for Accessibility Education, to ensure that its ongoing and future development projects will comply with the accessibility requirements of the federal Fair Housing Act (“FHA”).  Further, as part of the consent decree, SLCE has agreed to provide up to $15,000 to compensate aggrieved persons and to pay a civil penalty of $30,000.  The consent decree was entered on May 24, 2017, by U.S. District Judge Jed S. Rakoff.
The developer of The Verdesian, Albanese Organization, Inc., and three of its affiliates, North End Associates, LLC, River Terrace Associates, LLC, and Chelsea Associates, LLC (together, the “Developer Defendants”), were also named as defendants in the suit, and Judge Rakoff approved a consent decree between the Government and the Developer Defendants on February 12, 2017, under which the Developer Defendants, among other remedial measures, agreed to make retrofits to The Verdesian.      
Acting U.S. Attorney Joon H. Kim said:  “Through this lawsuit, the Office continues its efforts to require not only developers, but also architects, to comply with the law by creating rental properties that are accessible to New Yorkers with disabilities. This settlement ensures that future projects designed by SLCE will comply with the FHA and can be fully enjoyed by individuals with disabilities.”
The FHA’s accessible design and construction provisions require new multifamily housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities.  According to the allegations in the Complaint, The Verdesian, a rental complex located at 211 North End with 253 rental units, was designed and constructed with numerous inaccessible features, including excessively high thresholds interfering with accessible routes in the public and common areas as well as into and within individual units, and insufficient widths, clearance, and clear floor space in bedrooms, bathrooms, closets, and kitchens for maneuvering by people who use wheelchairs.    
To ensure future FHA compliance, the settlement requires SLCE to certify its plans, drawings, and blueprints as adhering to the requirements of the FHA and to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements.
Finally, the settlement requires SLCE to pay a civil penalty of $30,000 and to provide up to $15,000 to compensate aggrieved persons.   
Aggrieved individuals may be entitled to monetary compensation from the fund created through the settlement.  Aggrieved individuals may include those who:
  • Were discouraged from living at The Verdesian because of the lack of accessible features;
  • Have been hurt in any way by the lack of accessible features at The Verdesian;
  • Paid to have an apartment at The Verdesian made more accessible to persons with disabilities; or
  • Otherwise were discriminated against on the basis of disability at The Verdesian as a result of the inaccessible design and construction of the properties.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840, using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or by sending a written claim to:
                        U.S. Attorney’s Office, Southern District 
                        of New York
                        86 Chambers Street, 3rd Floor
                        New York, New York  10007
                        Attention:  Chief, Civil Rights Unit

Chairman Of Purported Hedge Fund Pleads Guilty In Manhattan Federal Court To Conspiring To Commit Securities And Wire Fraud


  Joon H Kim, the Acting United States Attorney for the Southern District of New York, announced that NICHOLAS MITSAKOS pled guilty in Manhattan federal court today to conspiring to commit securities and wire fraud.  MITSAKOS’s plea stems from his participation in a scheme to defraud investors through his operation of a purported hedge fund called Matrix Capital.  MITSAKOS solicited investments in his fund by overstating its past performance and its assets under management, when, in fact, Matrix Capital had never actually purchased or held any securities during the vast majority of its existence.  Moreover, once he actually received investments based on these false statements, MITSAKOS misappropriated significant amounts of the money to pay his own personal expenses. 
MITSAKOS was arrested on August 11, 2016, and pled guilty today before the Honorable Denny Chin, who was sitting by designation as a United States District Judge. 
Acting U.S. Attorney Joon H. Kim said:  “As he admitted in pleading guilty today, Nicholas Mitsakos purported to operate a successful hedge fund, but in reality, it was a sham from the outset. He touted his track record when in fact he had no trading history whatsoever. In the course of his fraud, he took hundreds of thousands of dollars from a single investor, and spent it on personal expenses. Mitsakos now stands a convicted felon and awaits sentencing for his crime.”
According to the Complaint, the Indictment, and other statements made in open court:
In or about October 2013, MITSAKOS created a purported hedge fund called Matrix Capital (“Matrix”).  Matrix purported to be a “long-short” fund that invested in undervalued securities and sold overvalued securities short with a long track record of success.  In order to raise money for his fund, MITSAKOS and others sent marketing materials and newsletters to numerous potential investors.  Certain of these materials claimed that Matrix had achieved returns exceeding major indices like the S&P 500, including, in one newsletter, purported gains of approximately 25% in 2012, 66% in 2013, 20% in 2014, and 49% between January and October of 2015.  MITSAKOS also led potential investors to believe that these returns were based on actual securities trades by Matrix, and that Matrix had millions in assets under management (“AUM”). 
MITSAKOS’s representations regarding Matrix’s performance and AUM were false.  In fact, Matrix had no track record in actually purchasing and selling securities, and, indeed, had no meaningful assets until receiving funds from a victim in September 2015.  Instead, the purported performance results provided to potential investors were premised on how a hypothetical portfolio would have performed had Matrix actually acquired certain securities.  No such trading actually took place and Matrix never actually owned any of the securities in the hypothetical portfolio that MITSAKOS maintained.  Even in regard to Matrix’s hypothetical investment portfolio, MITSAKOS retroactively manipulated the investments in that portfolio from time to time in order to improve dramatically its hypothetical performance. 
Based in part on MITSAKOS’s misrepresentations, Matrix received approximately $2 million from an investor in September 2015.  MITSAKOS, however, used only a portion of that amount – about $1.2 million – to actually buy and sell securities.  Of the remaining amount, MITSAKOS spent hundreds of thousands of dollars on business expenses and personal expenses like car payments, credit cards, and rent.  MITSAKOS’s trading of the $1.2 million that he did invest, moreover, resulted in significant losses.
MITSAKOS, 57, pled guilty to one count of conspiring to commit securities and wire fraud. This charge carries a maximum term of five years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the exceptional work of the Office’s criminal investigators, and thanked the Securities and Exchange Commission for its assistance.