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Monday, June 19, 2017
Be Proud With SAGE!
CITY AWARDS COMMUNITY-BASED ORGANIZATIONS $500,000 TO IMPLEMENT TECH SOLUTIONS TO ENHANCE COMMERCIAL DISTRICTS ACROSS NYC
A Competition Partnered CBOs And Tech Companies To Develop Data-Driven Ideas To Boost Neighborhoods And Quality Of Life
Commissioner Gregg Bishop of the NYC Department of Small Business Services (SBS) today announced the winners of a pitch competition that partnered community-based organizations (CBOs) with local technology companies to develop creative tech solutions to enhance commercial districts. A total of 40 teams submitted proposals and 12 finalists were selected to pitch their ideas before a panel of judges at an event hosted by SBS at the Hub @ Grand Central Tech. The five winning community-based organizations will each receive awards of $100,000 from SBS’ Neighborhood Challenge program. Awardees will use funding to implement tailored, data-driven solutions that build the capacity of CBOs to address the challenges faced in their commercial districts.
“Great neighborhoods make a great city, and we are using technology to build vibrant neighborhoods across the five boroughs,” said Gregg Bishop, Commissioner of the NYC Department of Small Business Services. “These awards will empower community-based organizations to meet local needs – boosting small businesses and enhancing quality of life.”
“The Neighborhood Challenge initiative is inspiring because it connects the potential of cutting edge, urban or "smart city" technology to the heart of the City’s communities yielding a network of knowledge and opportunity for urban planners and citizens alike,” said Matthew Harrigan, CEO of Grand Central Tech. “Indeed, this initiative is directly tied to the Hub’s mission statement of bettering the lives of NYC residents while also providing opportunity for local urban tech entrepreneurs.”
Grantees will have one year to complete projects that address a significant commercial district challenge and have a measureable impact on the commercial district management organization’s operations. Beyond the year of implementation, Neighborhood Challenge projects are intended to serve as catalysts that have the potential for long-term sustainability and positive economic impact. Neighborhood Challenge receives funding from the New York City Economic Development Corporation.
More information on Neighborhood Challenge may be found by visiting: http://www.nyc.gov/ neighborhoodchallenge
Competition winners:
Chinatown Partnership
The Neighborhood Narrative App will help Chinatown businesses overcome the cultural barriers that lead to common misrepresentation on popular media platforms and the subsequent devaluing of products, services, and local events. Through community outreach, the bilingual app will appropriately represent Chinatown’s small businesses by providing much needed cultural background on their goods, services, and customs.
Downtown Brooklyn Partnership + DUMBO Improvement District
This Visitor Engagement Solution technology will utilize wayfinding technology to better connect neighborhood visitors and residents to local businesses, programming, events, and other community initiatives. Smartphone users can open their browser to a landing page that will populate to display local businesses, deals, events, and amenities.
Long Island City Partnership
With connectivity as one of the community’s biggest challenges, LIC needs a comprehensive signage and wayfinding system that will orient and inform visitors and alert them to opportunities for engaging with their community. LIC COMPASS will combine visual signage cues with branding that identifies the neighborhood.
Myrtle Avenue Brooklyn Partnership
Although Fort Greene, Clinton Hill, and Wallabout contain some of Brooklyn’s wealthiest blocks, 23% of residents surrounding Myrtle Avenue live below the poverty line and even more are considered ‘working poor’. As wealthier residents move to these neighborhoods, the retail environment evolves and it becomes increasingly difficult for households with low incomes to meet their needs locally. Together with Benefit Kitchen, the project team will develop a Myrtle Avenue-branded outreach app that will screen eligibility for 18 government benefits and local promotions.
Rockaway Business Alliance
The launch of the NYC Ferry to the Rockaways has created an opportunity for business to connect with an expanding customer base. This project will use technology expand connectivity throughout communities in the Rockaways for both down-for-the-day beachgoers and lifelong residents looking to expand their horizons.
Other program finalists included:
East Village Independent Merchants Association
This local business database will provide a snapshot of the average East Village small business in regards to finances, sales, foot traffic, vendor costs, rents, and wage rates. A comprehensive understanding of broader revenue trends and cost benchmarks allow business owners to remain competitive and leverage their knowledge with vendors and landlords.
Madison Avenue Business Improvement District
1-TouchNYC is a tool for informing and engaging communities, and promoting local shopping from a smartphone. The bluetooth technology will allow local shops to engage users passing their storefronts of in-store happenings and promotions. Users will also receive notifications regarding neighborhood happenings and alerts as well as weather and transit updates.
Grand Street BID
With the pending 2019 L train shutdown, there are real concerns about the state of small businesses in the affected commercial corridors. Our project will leverage technology and local knowledge to enable data-driven decision making by assessing potential risks and implementing counter measures. This project will give us the data needed to plan for the L-train shutdown, advocate for mobility measures that will measurably benefit our district, and re-vitalize our retail base.
Manhattan Chamber of Commerce
To preserve the vital character of Harlem and Chinatown commercial corridors, we need to help our small businesses and community adapt to new competitors and shifting trends. The Neighborhood Health Project will focus on improving our commercial corridors and the economic health of the community through vacancy tracking. A low barrier, easy access communications management system will simplify business outreach efforts to save time and optimize data collection.
Northwest Bronx Community & Clergy Coalition
Our Kingsbridge/Jerome Commercial Corridor faces significant challenges including landlord harassment, rising rents, loss of long-term leases, access to resources, and knowledge of existing protections. DataHub is a custom, open-source system that will improve and expand our business surveying capacity while linking to an online powerful Bronx business vendor platform where businesses can network and promote their services.
Soho Strut
SoHo Strut is partnering with Haystack to leverage the best aspects of e-commerce to help brick-and-mortar retail thrive again. This project will drive traffic back into brick and mortar stores through the creation of a seamless search and pick-up/delivery marketplace. The future for physical retail is one where shoppers can search nearby store shelves as easily as they can browse Amazon.
Staten Island Economic Development Corporation
Staten Island’s economic development future relies on effective distribution of information, data management and innovative platforms for showcasing the rapidly growing borough. Our project will create a multi-lingual mapping and marketing project which will identify valuable points of interest for residents and potential investors alike.
About The Urban Tech Hub @ Grand Central Tech
The Urban Tech Hub @ Grand Central Tech is part of the New York City Economic Development Corporation (NYCEDC) UrbanTech NYC program to help entrepreneurs and innovators address the city’s urban challenges in sectors such as energy, waste, transportation, agriculture and water. The urban tech initiative works to provide tech innovation for the community and provide opportunities for NYC-based startups. The Hub is home to almost 40 companies in the urban tech space and was built to support and advance the prospects of entrepreneurs and companies seeking to address NYC challenges.
About NYC Department of Small Business Services (SBS)
SBS helps unlock economic potential and create economic security for all New Yorkers by connecting New Yorkers to good jobs, creating stronger businesses, and building vibrant neighborhoods across the five boroughs. For more information on all SBS services, go to nyc.gov/sbs or call 311.
Governor Andrew Cuomo is Ignoring the Hispanic Community
WHAT YOU SHOULD KNOW
By Senator Rev. Rubén DÃaz
District 32 Bronx County, New York
You should know that Governor Andrew Cuomo is ignoring the Hispanic Community when it comes to nominating appointees for key positions in New York State.
It is important for you to know that out of the 108 nominations Governor Andrew Cuomo has sent to the Senate for approval, only five (5!) are Hispanic.
What is even more disturbing is that out of those five, two people, Fernando Ferrer and Lorraine Cortés-Vázquez, are re-appointments. In other words, since those two have already been placed in positions for years, the Senate is being asked to approve only three new Hispanics nominees out of 108.
Ladies and gentlemen, some people might think that this could be racial and ethnic discrimination against a group that has always been very supportive of the Governor.
I am Senator Reverend Rubén DÃaz, and this is what you should know.
EDITOR'S NOTE:
We totally agree with State Senator Ruben Diaz Sr. on the issue, but he fails to investigate further by looking at the team Governor Cuomo has advising him. Perhaps State Senator Ruben Diaz Sr. should have a position of advisor to Governor Cuomo?
That is what you should know.
Saturday, June 17, 2017
Daryl Campbell, A/K/A “Taxstone,” Pleads Guilty To Illegally Possessing A Semiautomatic Handgun At Irving Plaza
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that DARYL CAMPBELL, a/k/a “Taxstone,” pled guilty yesterday to two federal weapons charges in connection with his possession of a semiautomatic handgun at Irving Plaza on May 25, 2016, the night a man was shot and killed there and three others were wounded.
Acting U.S. Attorney Joon H. Kim said: “As he has now admitted, Daryl Campbell illegally carried a semiautomatic handgun into the Irving Plaza music venue. That night Ronald McPhatter was shot and killed there, and three others were wounded. We will continue to work with the NYPD, the FBI, and all our partners in law enforcement to protect New Yorkers from gun violence.”
According to the Indictment, Complaint, other documents filed in the case, and statements made during the plea proceedings:
Sometime between October 2015 and May 25, 2016, CAMPBELL unlawfully received a Keltec 9mm semiautomatic handgun from outside the State of New York. Although his prior felony conviction made it a federal crime for CAMPBELL to possess firearms, CAMPBELL nonetheless carried that gun to the Irving Plaza music venue on May 25, 2016. At Irving Plaza, CAMPBELL confronted a rap music artist with whom CAMPBELL had been engaged in a long-running feud. After that confrontation, the rap artist’s bodyguard and friend, Ronald McPhatter, was shot and killed, and the rap artist and two innocent bystanders were wounded.
CAMPBELL, 31, of Brooklyn, New York, was arrested on January 17, 2017, in Brooklyn, and has been in federal custody since. CAMPBELL pled guilty today to both counts of the Indictment, which charged him with receiving a firearm in interstate commerce with the intent to commit another felony, and possessing a firearm after having previously been convicted of a felony. The maximum sentence for each count is 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by the court.
Mr. Kim praised the outstanding work of the NYPD’s Manhattan South Homicide Squad and the 13thPrecinct Detective Squad, and the Federal Bureau of Investigation.
Acting Manhattan U.S. Attorney Settles Race Discrimination Lawsuit Against New York City
City Agrees to Pay Over $1.3 Million to Individual Employees to Resolve Lawsuit Alleging a Pattern or Practice of Racial Discrimination at the New York City Department of Transportation
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States settled a federal civil rights lawsuit alleging that the CITY OF NEW YORK (the “City”), and specifically the NEW YORK CITY DEPARTMENT OF TRANSPORTATION (“NYCDOT”), violated Title VII of the Civil Rights Act of 1964 (“Title VII”) by engaging in a pattern or practice of racial discrimination and retaliation in its Fleet Services unit (“Fleet Services”). The consent decree was approved yesterday by U.S. District Judge John G. Koeltl.
Acting U.S. Attorney Joon H. Kim said: “For almost a decade, in clear violation of federal law, supervisors in New York City’s Department of Transportation engaged in a pattern and practice of discrimination against racial minorities. They tolerated the use of racial epithets, systematically excluded racial minorities from preferred assignments, and discriminated against minority candidates for promotions. When the discrimination was brought to the attention of the Department of Transportation’s management, they inexcusably failed to take proper corrective action, and retaliated against those brave enough to speak out. This type of workplace discrimination is unacceptable, plain and simple, not now, not ever. This settlement reflects the Office’s continued commitment to vigorously enforcing our nation’s civil rights laws.”
The Complaint, which was filed in Manhattan federal court on January 18, 2017, alleges that from at least October 2007 through May 2016, Fleet Services management engaged in a pattern or practice of racial discrimination in violation of Title VII. Fleet Services is a unit within NYCDOT that employs approximately 200 individuals in a range of trades, such as machinists, auto mechanics, electricians, blacksmiths, and engineers. Specifically, the Complaint alleges that:
As of October 2007, all personnel within Fleet Services reported to an individual (“Executive Director I”) who routinely and openly used racial epithets, such as “monkey,” “nigger,” and “gorilla” to describe African American employees. In addition to overseeing all of Fleet Services operations, Executive Director I also served as the Equal Employment Opportunity (“EEO”) counselor to whom complaints of discrimination were directed. One illustrative example of Executive Director I’s conduct involved an incident where, in response to an African American employee’s request for a cell phone, Executive Director I stated, “that nigger gets nothing.”
In October 2009, NYCDOT’s EEO Office (“NYCDOT EEO”) received a complaint alleging that Executive Director I had engaged in race discrimination. In the course of investigating the complaint, NYCDOT EEO interviewed numerous current NYCDOT employees who stated that Executive Director I had routinely used racial epithets to describe African Americans. Following its investigation, NYCDOT EEO recommended that Executive Director I be demoted, suspended, and removed from his responsibilities as a NYCDOT EEO counselor. In response, Executive Director I chose to voluntarily retire. However, the Deputy Commissioner overseeing Fleet Services then promoted the individual who had been Executive Director I’s second-in-command (“Executive Director II”), who was complicit in the discrimination, to serve as the Executive Director of Fleet Services.
Beginning in 2010, and throughout his tenure, Executive Director II routinely and systematically excluded minorities from preferred assignments and special projects. Executive Director II instead exclusively chose white candidates for the assignments that would provide the best opportunity for further advancement within Fleet Services. Furthermore, at some point in 2010, and then again in 2013, NYCDOT took steps to promote auto mechanics to supervisory positions. In spite of a large number of minority applicants, including minority applicants who were already serving in a supervisory capacity within NYCDOT, only one minority candidate was ever selected for promotion. Rather, NYCDOT management actively took steps that discriminated against minority applicants and promoted the candidacy of white applicants. These steps included imposing new pretextual requirements for promotion and removing from decision-making those supervisors who advocated for minority candidates.
Throughout all time periods relevant to the Complaint, individuals who spoke out against the discriminatory practices at Fleet Services were subjected to retaliatory conduct by Executive Director II. Such retaliatory conduct included Executive Director II threatening to take an African American Fleet Services employee outside to “kick” his “fucking ass” when the employee complained about the discrimination in the promotion selection process. Several other members of Fleet Services’ executive leadership witnessed that threat and yet failed to take any action to discipline Executive Director II.
Under the consent decree approved by the Court, the City has agreed to offer monetary compensation to 14 individuals who the City agrees are entitled to relief. These individuals are entitled to back pay and compensatory damages awards ranging from $60,000 to in excess of $168,000. In addition, the City has agreed to pay the complainant who brought this case to the attention of the Equal Employment Opportunity Commission (the “Complainant”) a total of $150,000 in compensatory damages and attorney’s fees. The City will also offer the Complainant and two other minority candidates, all of whom were promoted by the City after the U.S. Attorney’s Office informed the City of its investigation, retroactive seniority benefits commensurate with having been promoted during the time period relevant to the Complaint. The consent decree also requires the City to take steps to ensure that it complies with Title VII in its future promotional selection processes.
As part of the consent decree, the City also stipulates to admissions of fact relating to the allegations in the Complaint. These admissions include that:
- During a 2009 investigation into allegations of racial discrimination, employees reported to the City that Executive Director I had used racial epithets to describe African American employees and had taken personnel actions that were motivated by racial animus.
- At the time of his retirement, Executive Director I had never been subject to any formal disciplinary sanctions imposed by the City.
- During the time he served as the Executive Director of Fleet Services, Executive Director II instructed the Complainant’s direct supervisor to reassign Complainant’s supervisory duties to a non-minority auto mechanic who had fewer years of experience as an auto mechanic than Complainant. Executive Director II gave this instruction over the expressed preference of Complainant’s direct supervisor.
- During Executive Director II’s tenure, non-minority applicants were selected for promotion over minority applicants, even when the minority applicants had more years of automotive experience and had been serving in a supervisory capacity without commensurate compensation or title.
- When management employees challenged Executive Director II’s promotional decisions, they were removed from the promotional decision-making process. Moreover, when a non-management employee accused Executive Director II of discriminating against racial minorities within Fleet Services, Executive Director II verbally threatened the employee, including a threat of physical violence. This verbal threat of physical violence was made in the presence of several other supervisory personnel within Fleet Services.
- Up until June 2, 2016, the date on which the City was informed that the U.S. Attorney’s Office had conducted an investigation regarding the allegations in the Complaint, Executive Director II continued to serve as the Executive Director of Fleet Services.Mr. Kim thanked the Equal Employment Opportunity Commission for its initial investigation of the Complaint.
Twelve Alleged Gang Members Variously Charged With Conspiracy and Attempted Murder in Bushwick Turf War
Defendants Shot at Rivals on Busy Streets, Sometimes in Broad Daylight;
Innocent Bystanders Struck, Others Narrowly Escaped Harm in 10 Shooting Incident
Acting Brooklyn District Attorney Eric Gonzalez, together with New York City Police Commissioner James P. O’Neill, today announced that 12 alleged members of the Bushwick- based street gang True Bosses Only have been variously charged in a 59-count indictment with conspiracy to commit murder, attempted murder, weapons possession and other charges in connection with 10 separate shootings that left seven people injured.
Acting District Attorney Gonzalez said, “This indictment describes a terrifying mix of deadly force and mindless obsessions with turf, leading to serious consequences for innocent bystanders. We will never stop fighting against gun violence and this kind of senseless disregard for the safety of our children and neighbors.
The Acting District Attorney further said, “Many of these territorial disputes, in this and other cases, revolve around New York City Housing Authority developments. To that end, I have recently launched a Public Housing Crime Suppression Unit that will work to reduce crime in housing developments using data-driven intelligence focusing on the drivers of crime. The Unit will work closely with resident associations, community members, NYCHA and the NYPD to proactively suppress crime and violence, maintain safety and develop trust.”
Commissioner O’Neill said, “Today’s charges allege a series of shootings in Bushwick, among other things, that left several injured. Today’s arrests and indictment will continue helping reduce violence that have helped make our City the safest big city in America.”
The Acting District Attorney said that nine of the defendants were arraigned last week and this week before Brooklyn Supreme Court Justice William Miller and Brooklyn Supreme Court Justice Guy Mangano and variously held on bail. Three of the defendants are awaiting arraignment. All of the defendants are charged with second- and fourth-degree conspiracy. They are variously charged with second-degree attempted murder, first-degree criminal use of a firearm, first- and second-degree attempted assault, second-degree criminal possession of a weapon, second-degree assault, and first-degree reckless endangerment. The defendants face up to 25 years in prison on the top conspiracy count. (See defendant addendum).
The Acting District Attorney said that, according to the indictment, the defendants, who now range in age from 17 to 26, are alleged to be members of True Bosses Only (“TBO”). TBO is alleged to be a violent street gang operating within the confines of the 83rd Precinct, bordering the 73rd and 81st Precincts. TBO’s purported territory extends north and south approximately between Broadway and Wyckoff Avenue, and east and west approximately between Cooper Street and Madison Street.
Between July 2015 and the present, the indictment alleges, members of TBO have been feuding with three other violent street gangs: Elm Street Piru, which operates within the 83rdPrecinct just west of TBO territory, approximately between Palmetto Street and DeKalb Avenue; Loot Gang, which operates out of the New York City Housing Authority Ocean Hill Houses, to the south of TBO territory within the confines of the 73rd Precinct; and 900 Gang, which operates largely out of the NYCHA Sumner Houses within the confines of the 79thPrecinct.
During the course of the conspiracy the defendants allegedly agreed to commit crimes, including murder and assault, in order to maintain their dominance over their claimed geographic area. Gang members are accused of using social media to direct their acts of violence toward rival gang members, as well as take credit after crimes occurred. At other times the defendants taunted their rivals by taking photos and videos of themselves in rival territory and posting them on Facebook and YouTube. They allegedly made use of so-called “community guns,” which were made available to various TBO members for the purpose of shooting at rivals.
Furthermore, according to the indictment, in addition to the struggle for geographical control, much of TBO’s violent activity was driven by the desire to retaliate for prior shootings targeting TBO members, particularly the September 27, 2013 shooting death of TBO member Bashiek Reddick, a.k.a., Bless.
Among the acts of violence charged in the conspiracy are the following:
- - On July 8, 2015, at approximately 9 p.m., Hector Lleras and other TBO members were in front of the Hi-Mango Market at 341 Knickerbocker Avenue, in Elm Street Piru territory, when Lleras allegedly fired shots across the street, missing his target. The bullet went through window of a car parked in the vicinity, narrowly missing a man sitting in the front seat.
- - On October 30, 2015, defendant Gilbert Arciliares was in front of 180 Wyckoff Avenue, in Elm Street Piru territory, at approximately 2:40 p.m., when he allegedly fired three shots. One of the shots struck an MTA bus, shattering a window and narrowly missing a passenger, who suffered cuts to her forehead from the broken glass.
- - On September 11, 2016, at approximately 9:30 p.m., in the vicinity of 290 Central Avenue, Gilbert Arciliares, who was with another TBO member, allegedly fired a .380 caliber pistol multiple times at rival Elm Street Piru members, striking instead two innocent women who were walking in the area.
- - On March 1, 2017, at approximately 4:20 p.m., at the intersection of Myrtle Avenue and Harman Street, defendant Gilbert Arciliares allegedly fired shots down Myrtle Avenue at two Piru gang members on bicycles. Arciliares missed his targets, but struck an innocent bystander in the torso and sent passersby, including children, running to escape the gunfire.
Additionally, three alleged rival gang members were shot and injured during the course of the conspiracy.
The investigation was conducted by New York City Police Department Detectives Shane Maynard and Robert Nelson, of the Gun Violence Suppression Division, under the supervision of Sergeant Andrew Dunton and the overall supervision of Assistant Chief James Essig.
The case is being prosecuted by Assistant District Attorneys Owen Sucoff and James Slattery, of the District Attorney’s Violent Criminal Enterprises Bureau, under the supervision of Assistant District Attorney Jonathan R. Sennett, Deputy Chief of VCE and Assistant District Attorney Nicole Chavis, Chief, and the overall supervision of Patricia McNeill, Deputy Chief of the District Attorney’s Investigations Division.
An indictment is merely an accusation and not proof of a defendant’s guilt.
DEFENDANT ADDENDUM:
- - Carlos Lucas, a.k.a., Skrap, 22, of Ocean Hill, Brooklyn.
- - Hector Lleras, a.k.a., Kash, 26, of Fort Greene, Brooklyn.
- - Gilbert Arciliares, a.k.a., Gilly, 22, of Bedford-Stuyvesant, Brooklyn.
- - Patrick Tucker, a.k.a., Holly, 25, of Canarsie, Brooklyn.
- - Tyrece Findlay, a.k.a., Preme, 20, of West Farms, Bronx.
- - Malik Cherry, a.k.a., Euros, 20, of Gravesend, Brooklyn.
- - Anthony Gooding, a.k.a., Gunna, 21, of Bushwick, Brooklyn.
- - Yasin Shearin, a.k.a., Ya-Ya, 19, of Graniteville, Staten Island.
- - Jamar Lovander, a.k.a., Headache, 26, of Arverne, Queens
Statements by City Council Housing and NYCHA Chairs on TRUMP PICK TO HEAD LOCAL FEDERAL HOUSING PROGRAMS
STATEMENT BY COUNCIL MEMBER WILLIAMS
"This is yet another sorry, and potentially dangerous, appointment coming out of the Trump Administration.
"As chair of the Council's Committee on Housing and Buildings, it is extremely concerning that a person without zero experience in housing or government sectors is being charged with overseeing how billions of tax payer dollars are spent for federal housing programs, including the struggling New York City Housing Authority (NYCHA). How these dollars are spent, or not spent, has an impact on millions of families across New York and New Jersey. People are relying more and more on government to help fill the gap between what they come home with and what they're able to afford for housing expenses. Housing to this Administration is clearly more of a play thing, than a serious resource that so many communities are being starved of.
"This appointment is just the latest example of why the job of local legislators and leaders is especially important now. We cannot trust that the people placed to lead critical offices, such as HUD, will be effective or competent in addressing the needs of the people. It's time we step up.
"It is not lost on me that this is yet another example of the insulting belief that the housing agency is more of a place to store Trump's melanin rich allies, than a place to seriously contemplate and address issues of critical concern."
A.G. Schneiderman Announces $350,000 Settlement With Sham Breast Cancer Charity
“Breast Cancer Survivors Foundation” Fundraisers Pocketed 92 Cents Of Every Dollar Donated For Themselves – While Misleading Donors With Fictional Medical Services For Breast Cancer Patients
AG’s “Operation Bottomfeeder” Targets Shell Charities That Exploit Popular Causes To Line Professional Fundraisers’ Pockets
Settlement Shuts Down Charity; $350,000 Will Be Directed To Legitimate Breast Cancer Organizations
Attorney General Eric T. Schneiderman today announced a settlement with the Breast Cancer Survivors Foundation, Inc., (“BCSF”), and its President and Founder Dr. Yulius Poplyansky. For years, BCSF and its fundraisers painted the picture of an organization that was providing medical services to breast cancer patients and those at risk of breast cancer. Instead, as the Attorney General’s investigation found, BCSF was a shell charity created and run by its primary outside fundraiser, Mark Gelvan, in order to line the pockets of Gelvan, his companies, and his business associates – who pocketed 92 cents of every dollar donated to BCSF.
As part of the settlement, BCSF will shut down its operations nationwide and pay nearly $350,000, which will be directed to legitimate breast cancer organizations.
“There are few things more galling than pretending to help cancer patients, when you’re really just lining your own pockets. But that’s exactly what those behind the Breast Cancer Survivors Foundation did – siphoning millions in profits for themselves and sending less than four cents of every dollar raised to medical clinics,” said Attorney General Schneiderman. “As our Operation Bottomfeeder has shown, too often these shell charities exploit popular causes to enrich professional fundraisers. I’m committed to using the full power of my office to stop those who take advantage of people’s generosity to make a quick buck.”
Today’s settlement is part of the Attorney General’s Charities Bureau’s “Operation Bottomfeeder,” which targets a pervasive business model of shell charities that exploit popular causes, the professional fundraisers who take the lion’s share of donations and make misrepresentations, and other entities that facilitate the abuses. In August 2016, the Charities Bureau shut down the American Foundation for Disabled Children (AFDC), a shell charity that claimed to provide “resources to schools, shelters and other agencies providing long and short term care to special children,” but in fact served mainly as a source of money for its fundraisers. In November 2016, the Attorney General announced a settlement with the National Vietnam Veteran’s Foundation and its founder and president, John T. Burch, which also resulted in that charity’s shuttering, the payment of damages, and the issuance by Burch of a public apology. Also as a result of the Attorney General’s exposure of Burch’s actions at the charity, Burch was recently indicted by the Department of Justice for wire fraud.
BCSF was founded in 2010 and began soliciting in New York shortly thereafter. By 2014, BCSF was raising on average $3 million a year nationwide from its telemarketing and direct mail campaigns.
The Attorney General’s investigation found that Dr. Poplyansky started BCSF at the encouragement of Mark Gelvan, a professional fundraiser and longtime family friend whose relationship with Poplyansky’s family dated back to the 1970s. Dr. Poplyansky had no training or experience in managing or leading any type of charitable enterprise. He and the other board members of BCSF allowed Mark Gelvan to run BCSF and turn it into a cash cow for Gelvan and his businesses. Mark Gelvan has been barred from the professional fundraising industry in New York since 2004, following litigation brought by the Attorney General.
As set forth in the findings in the settlement document, which Dr. Poplyansky admits are true, Mr. Gelvan suggested that Dr. Poplyansky start a breast cancer charity because it is a proven charitable moneymaker. Mr. Gelvan even provided Dr. Poplyansky with seed money to start the charity. Mr. Gelvan then used BCSF to fuel his own economic interests by ensuring that his fundraising companies and business associates were hired to provide services for BCSF.
Mr. Gelvan also controlled BCSF’s operations by inserting himself into nearly every aspect of the charity’s operations, despite having no official role in the charity. Gelvan oversaw financial reporting, attended board meetings and prepared board minutes, responded to media inquiries, and even organized and prepared the response to the Attorney General’s investigative subpoenas. Mr. Gelvan went so far as to tell BCSF’s outside accountants that Dr. Poplyansky “speaks very little English”- a completely false statement - so they would deal directly with him.
The investigation also found that Mr. Gelvan was instrumental in developing and authorizing BCFS’s charitable solicitations, which contained false and misleading statements about BCSF’s program activities. These solicitations contained fictional accounts of doctor and patient interactions, descriptions of non-existent forums for breast cancer survivors, and international pharmaceutical programs – and left the donor with the distinct impression that BCSF was a medical facility providing medical services. In reality, BCSF had no medical staff, performed no medical services, had no real office, and provided no direct value to breast cancer patients or those at risk of developing breast cancer. BCSF made only a few modest grants to clinics; those grants were, on average, only 3.5% of the funds it raised in the last four years that BCSF reported to the Attorney General.
Dr. Poplyansky was not compensated for his role at BCSF. Nonetheless, he had legal responsibilities to BCSF, which he repeatedly failed to honor. Dr. Poplyansky has admitted to his wrongdoing and will cooperate with the Attorney General’s ongoing investigations into BCSF’s fundraisers and associated legal and accounting professionals. BCSF and Dr. Poplyansky have also agreed to dissolve BCSF under the Attorney General’ s direction so that the charity can no longer be used as a shell company to direct monies to its fundraisers. Dr. Poplyansky will also be subject to a permanent nationwide bar on access to charitable assets or decision-making. On behalf of BCFS and himself, Dr. Poplyansky issued an apology to the donors of the Foundation and to the individuals and families that have been impacted by breast cancer.
BCSF and Dr. Poplyansky also admitted that BCSF had made false filings with the Charities Bureau, including failing to disclose the identity of the fundraisers that operated on its behalf in New York, and all fees associated with its fundraising activities.
The full text of the admissions of BCSF and Dr. Poplyansky, and Dr. Poplyansky’s apology, are available here.
This investigation into BCSF highlights the importance of the Attorney General’s Charities Bureau’s annual Pennies for Charities report, which reveals that charitable donations obtained by many professional fundraisers are largely spent on fundraising and administrative expenses, with only a small fraction left for charitable work. The latest Pennies for Charities report may be accessed here.
The AG’s Tips for Charitable Giving are available here.
More information about the Attorney General’s Charities Bureau and organizations regulated by the Bureau may be found at www.charitiesnys.com.