Engel, House Dems Introduce Resolution to Censure President

  Congressman Eliot L. Engel issued the following statement after cosponsoring a resolution to censure President Trump for his response to the violence in Charlottesville, Virginia:

“President Trump’s response to the violence in Charlottesville was a disgrace to the office of the President. In equating the actions of counter protesters to those of white supremacists and Nazis, he displayed a callousness that cannot be ignored or trivialized. His defense of individuals who stood on the side of white nationalists, saying some of them were ‘very fine people,’ was outrageous. His words were an affront to our shared American values and deserve our condemnation, which is why my colleagues and I have taken this extraordinary step to introduce a resolution to censure. We must send a clear message to the President that this type of rhetoric is not acceptable from the Commander-in-Chief.”   

RESOLUTION

Censuring and condemning President Donald Trump.

Whereas on August 11, 2017 in Charlottesville, Virginia, a gathering of white supremacists, including neo-Nazis, Ku Klux Klan (KKK) members, and other white nationalist groups, marched through the streets with torches as part of a coordinated ‘Unite the Right’ rally spewing racism, anti-Semitism, bigotry and hatred;

Whereas on August 12, 2017 in Charlottesville, Virginia, a car driven by James Alex Fields, Jr. rammed into a crowd of counter-protestors, killing Heather Heyer and injuring 20 others;

Whereas President Donald Trump’s immediate public comments rebuked “many sides” for the violence in Charlottesville, Virginia, and failed to specifically condemn the ‘Unite the Right’ rally or cite the white supremacist, neo-Nazi gathering as responsible for actions of domestic terrorism;

Whereas on August 15, 2017 President Donald Trump held a press conference at Trump Tower where he re-asserted that “both sides” were to blame for the violence in Charlottesville, Virginia, and attempted to create a moral equivalency between white supremacist, KKK, neo-Nazi groups and those counter-protesting the ‘Unite the Right’ rally;

Whereas President Donald Trump has surrounded himself with, and cultivated the influence of, senior advisors and spokespeople who have long histories of promoting white nationalist, racist and anti-Semitic principles and policies within the country;

Whereas President Donald Trump has provided encouragement and little to no denunciation of white supremacist groups and individuals who promote their bigoted, nationalist ideology and policies;

Whereas President Donald Trump has failed to provide adequate condemnation and assure the American people of his resolve to opposing domestic terrorism: Now, therefore, be it

Resolved, That the House of Representatives—

(1)   does hereby censure and condemn President Donald Trump for his inadequate response to the violence in Charlottesville, Virginia on August 12, 2017, his failure to immediately and specifically name and condemn the white supremacist groups responsible for actions of domestic terrorism, for re-asserting that “both sides” were to blame and excusing the violent behavior of participants in the ‘Unite the Right’ rally, and for employing people with ties to white supremacist movements in the White House, such as Steve Bannon and Sebastian Gorka; and

(2)   does hereby urge President Donald Trump to fire any and all White House advisors who have urged him to cater to the white supremacist movement in the United States.

Members have signed on as cosponsors:  Joe Crowley (D-NY), Sheila Jackson-Lee (D-TX), Grace Napolitano (D-CA), Nydia Velazquez (D-NY), Bill Foster (D-IL), Diana DeGette (D-CO), Adriano Espaillat (D-NY), Scott Peters (D-CA), Donald Payne, Jr. (D-NJ), Marcia Fudge (D-OH), Carolyn Maloney (D-NY), Paul Tonko (D-NY), Al Lawson (D-FL), Rick Larsen (D-WA), Frank Pallone (D-NJ), Raul Grijalva (D-AZ), Greg Meeks (D-NY), Steve Cohen (D-TN), Tim Walz (D-MN), Yvette Clarke (D-NY), Stephen Lynch (D-MA), Julia Brownley (D-CA), Eliot Engel (D-NY), David Loebsack (D-IA), Jan Schakowsky (D-IL), Debbie Dingell (D-MI), Barbara Lee (D-CA), Anthony Brown (D-MD), David Cicilline (D-RI), Jared Huffman (D-CA), Hank Johnson (D-GA), Jose Serrano (D-NY), Jamie Raskin (D-MD), Bennie Thompson (D-MS), Al Green (D-TX), Mark Takano (D-CA), Grace Meng (D-NY), Mark Pocan (D-WI), Maxine Waters (D-CA), Luis Gutierrez (D-IL), Brenda Lawrence (D-MI), Don Beyer (D-VA), Carol Shea-Porter (D-NH), Ted Lieu (D-CA), Karen Bass (D-CA), Adam Smith (D-WA), William Lacy Clay (D-MO), Brad Schneider (D-IL), Gerald E. Connolly (D-VA), Hakeem Jeffries (D-NY), Chellie Pingree (D-ME), Norma Torres (D-CA), Dwight Evans (D-PA), Albio Sires (D-NJ), Mike Quigley (D-IL), Donald McEachin (D-VA), Earl Blumenauer (D-OR), Brian Higgins (D-NY), Bill Pascrell, Jr. (D-NJ), Ben Ray Lujan (D-NM), James Langevin (D-RI), Dan Lipinski (D-IL), Jacky Rosen (D-NV), Brad Sherman (D-CA), Nita Lowey (D-NY), Mark DeSaulnier (D-CA), Ruben Kihuen (D-NV), Louise Slaughter (D-NY), Suzanne Bonamici (D-OR), Michelle Lujan Grisham (D-NM), Alan Lowenthal (D-CA), Alma Adams (D-NC), Robin Kelly (D-IL), Jimmy Gomez (D-CA), Jim McGovern (D-MA), Michael Capuano (D-MA).

Salamanca Secures $300,000 for Leon Senior Center to Update Gardens

  Council Member Salamanca surprised senior citizens from the community at the Douglas Leon Senior Center today to announce that he has secured $300,000 to utilize for a complete upgrade of their outdoor patio and garden. The outdoor space has fallen into disrepair in recent years, and was badly in need of an upgrade. 

For years, seniors have advocated for funding and improvements to be made, but with funding scarce, work has been long overdue. Now, with the $300,000 secured through the City Council, work will be able to be completed. 

"I cannot think of a better way to utilize city capital funding than this, in a way that will allow for the seniors in our community to socialize with friends, garden and just enjoy themselves," said Council Member Salamanca. "This funding was long overdue, and I look forward to continuing to assist our seniors as best I can." 

Along with the Leon Senior Center, located on 152nd Street and Concord Ave in Melrose, Salamanca has has invested over $3.1 million to support our seniors, with funding going to South Bronx senior centers, new senior affordable housing, senior center improvements, and meal programs.

13th City Council Democratic Primary - UPDATE

  Former 13th City Council candidate Victor Ortiz (pictured above in the white shirt and gold tie) was knocked off the ballot when his petition was challenged, and after the Board of Elections had ruled in favor of his challenger Ms. Rebecca Chant. The Specifications of the objection had taken the approx. 1,500 signatures handed in by candidate Ortiz to below the needed 450 valid signatures. The only way to get back on the ballot was for Mr. Ortiz to go to court to Validate his petition which would possibly change enough of The Board of Elections rulings to make Mr. Ortiz, candidate Victor Ortiz again. 

  After getting a Petition to Validate, and some very hard work by Mr. Victor Ortiz he had proven to the court that he had found more than enough signatures that were ruled invalid by the Board of Elections to be valid signatures. This is not uncommon as this is the way used to get back on the ballot by candidates who feel they did meet the minimum required number of signatures.

There is also a process called Petition to Invalidate when a challenger believes that there may have been signatures ruled valid, but that the Board of Elections does not rule on certain items which can be similar hand writing, and varying degrees of fraud. That was not the case here as there was no Petition to Invalidate against Mr. Ortiz's petition. 

Congratulations to Mr. Victor Ortiz for being reinstated to the ballot for the September 12th Democratic primary. There are still several questions to be answered such as why Ms. Chant challenged Mr. Ortiz's petition, and if the other candidate Alex Gomez that was knocked off by Ms. Chant is to be also returned to the ballot or not. 

Manhattan U.S. Attorney Announces Conviction Of Rikers Island Correction Officer In Connection With Cover-Up Of Inmate Assault

Officer Rodiny Calypso Convicted of Filing a False Report

  Joon H. Kim, Acting United States Attorney for the Southern District of New York, announced today that RODINY CALYPSO, a New York City Correction Officer, was convicted yesterday of filing a false report in connection with the assault of a handcuffed inmate at Rikers Island.  The jury acquitted the defendant on one count of violating the inmate’s civil rights and one count of obstruction of justice.  The jury returned the verdict after a one-week trial before the Honorable Valerie E. Caproni.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “Prisoners at Rikers Island have the same constitutional rights we all enjoy, and corrections officers do not have the right to abuse inmates in their custody and care.  Rodiny Calypso’s lies about his use of force undermined the investigation into his brutal beating of a handcuffed, defenseless inmate.  We will continue to aggressively protect the rights of prisoners and the integrity of investigations into uses of force to ensure that justice reaches everywhere, including isolated corners of Rikers Island.”

According to the Complaint, Indictment, and evidence presented at trial:

Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction.  At the time of his assault, the inmate (“Inmate-1”) was a pretrial detainee in the Otis Bantum Correctional Center (“OBCC”), a facility that houses, among other inmates, inmates in need of maximum security.  Inmate-1 was housed in 5 North, a dormitory area within the OBCC in which inmates were generally kept in solitary confinement in individual cells for 23 hours per day.  The shower facilities within 5 North were individual stalls, to be occupied by one inmate at a time, and to which inmates were brought handcuffed, then uncuffed through a port in the shower stall door, and then handcuffed again through the port before being brought out of the stalls by correction officers.

The Assault and Cover-Up

Shortly before noon on February 27, 2014, CALYPSO relieved another correction officer at 5 North while Inmate-1 was in the shower.  Inmate-1 and CALYPSO had an extended and heated verbal exchange, during which CALYPSO picked up some personal items Inmate-1 had dropped outside the door through the port.  At one point, CALYPSO stepped away from the door and spoke to a fellow correction officer one level down within the dorm area.  That person left the dorm area and returned with another officer (“Officer-1”).

CALYPSO rear-cuffed Inmate-1 for removal, and then opened the door to the shower stall.  Within seconds, CALYPSO punched Inmate-1 several times in the face.  He followed Inmate-1 into the shower area, where he put Inmate-1 into a headlock and punched him several more times in the head.  CALYPSO began to lose his footing at this point, and clung to Inmate-1’s side.  Officer-1 then arrived outside the stall.  As Officer-1 restrained Inmate-1, CALYPSO regained his footing and elbowed Inmate-1 repeatedly – approximately five times – in the head.  As a result of the assault, Inmate-1 suffered lacerations to his face and the back of his head.  The entire assault was captured on surveillance video and witnessed by multiple inmates whose cells were positioned across from the shower area.

The New York City Department of Correction issues directives governing the circumstances under which the use of force against inmates is appropriate.  Under these directives, when a restrained inmate is still dangerous to himself and others, force is to be used as a last resort.  The directives also dictate that any use of force must be reported – on a “Use of Force” report that is filled out truthfully and promptly.

A full day after the assault, in violation of the directives, CALYPSO filled out a “Use of Force” report on which he was supposed to report truthfully the circumstances of that assault.  In this report, CALYPSO attempted to justify his conduct by lying about how he and Inmate-1 had acted.  He mischaracterized and misstated portions of the assault, omitting the close-fisted punches he delivered to Inmate-1 while holding him in a headlock and claiming that he had hit  Inmate-1 only in the “upper torso” area.           

RODINY CALYPSO, 38, of Springfield Gardens, New York, was convicted of one count of filing a false form.   CALYPSO faces a maximum sentence of 20 years in prison.  The maximum potential sentence in this case is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.  CALYPSO is scheduled to be sentenced on November 30, 2017.

Mr. Kim praised the investigative work of the Federal Bureau of Investigation.  Mr. Kim also thanked the New York City Department of Investigation, the New York City Department of Correction, Investigative Division, and the Bronx District Attorney’s Office for their assistance in the investigation, which remains ongoing.

New Paltz Man Sentenced To More Than 18 Years In Prison For Sex Trafficking Of Minors

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MARK CASTAGNETTA was sentenced to 218 months in prison and a lifetime term of supervised release for child sex trafficking.  CASTAGNETTA pled guilty on November 21, 2016, before U.S. District Judge Cathy Seibel, who imposed today’s sentence.  In imposing sentence, Judge Seibel characterized the defendant’s misconduct as some of the most serious conduct she had encountered during her time on the bench.

Acting U.S. Attorney Joon H. Kim said:  “This defendant callously robbed two children of their innocence, inducing them to travel to his home in New Paltz, New York, where he not only sexually abused them, but forced them to have sex with other men in exchange for drugs and money.  Today, for his reprehensible crimes, he has been sentenced to over 18 years in federal prison.”

From 2014 through July 2016, CASTAGNETTA engaged in trafficking of minors by contacting two minor victims through an adult fetish website and enticing them to travel to his residence to engage in a sexual relationship in which he played the role of “slave master” and the victim played the role of “slave.”  Once there, the defendant engaged in abusive sexual conduct with the victims, supplied the victims with illegal drugs, and induced them to engage in sexual conduct with other individuals in exchange for drugs and money.  The defendant also produced an image containing child pornography of one of the victims. 

CASTAGNETTA, age 52, pled guilty to one count of sex trafficking of children.

Mr. Kim praised the investigative work of the FBI’s Westchester County Safe Streets Task Force and the FBI’s Violent Crimes Against Children Squad and thanked the New York City Police Department, the Manhattan District Attorney’s Office, the Town of New Paltz Police Department, the Westchester County Human Trafficking Task Force, and the Westchester Department of Social Services for their valuable cooperation in this matter.     

31 Members And Associates Of Two Rival Poughkeepsie Street Gangs

Charged In Federal Court With Murders, Attempted Murders, Racketeering, Narcotics, And Firearms Offenses

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), William V. Grady, Dutchess County District Attorney, Thomas Pape, Chief of Police for the City of Poughkeepsie, Adrian Anderson, Dutchess County Sheriff, and George P. Beach, the Superintendent of the New York State Police (“NYSP”), announced today the unsealing of two indictments charging 31 members and associates of two rival street gangs operating in Poughkeepsie, New York: Uptown and Downtown.  The gangs are charged in two separate Indictments – United States v. Douglas Owens et al., 17 Cr. 506 (NSR) (the “Uptown Indictment”), and United States v. Ronald Johnson et al., 17 Cr. 505 (the “Downtown Indictment”) – with murders, attempted murders, racketeering conspiracy, narcotics conspiracy, and firearms offenses.

Acting U.S. Attorney Joon H. Kim said:  “As alleged in the indictments unsealed today, two violent Poughkeepsie street gangs have been at war with each other for the last several years.  Their war has left in its wake a bloody trail of tragedy – alleged murders, attempted murders, shootings, and rampant drug dealing.  One of the innocent victims of this alleged gang war was Caval Haylett, an 18-year-old basketball star whose bright future and promise was extinguished on March 9, 2016, in a hail of senseless gunfire.  With today’s charges and arrests, we seek to dismantle these gangs from the top down, and together with our federal and local law enforcement partners, we seek to stem the tide of gun violence and drug dealing in Poughkeepsie.  When gangs flourish, neighborhoods suffer, parents grieve, and children die; it is as simple as that.  And we will not sit by and let that happen.”    

FBI Assistant Director William F. Sweeney Jr. said:  “Two young lives were lost in the alleged ongoing criminal activity of these street gangs. We will not sit idly in the midst of violence, as shown by the diligent and dedicated work of our FBI Hudson Valley Safe Streets Task Force and our law enforcement partners. As gang rivalry continues to stir strife in our community, we won't stop or slow down in our pursuit to take these members off the streets and keep our residents safe.”

District Attorney William V. Grady said:  “There is no question that gang activity in our community has resulted in drug dealing, shootings, violent crimes and homicides, and this cannot be tolerated.  All possible efforts must and are being made to insure that our community is a safe place to live and work.  These indictments today send a clear message that law enforcement agencies at all levels will join forces to insure that these violent offenders are held accountable and removed from our streets.”

Chief of Police Thomas Pape said:  “On December 23, 2012, a senseless act of violence took the life of a young resident of Poughkeepsie.  This act was the beginning of many more shootings and homicides that plagued our City and took the lives of too many young men. Today, through the cooperation of federal, state and local law enforcement, the persons responsible have been taken into custody and will have to answer for their actions.  I want to personally thank the United States Attorney, Mr. Kim, his office, and all of the law enforcement agencies that through a collaborative effort, removed these violent individuals from our community.”

Dutchess County Sheriff Adrian Anderson said:  “Today was an enormous victory for law enforcement by the taking of these individuals off of our streets. These charges are evidence of the strong commitment that we share with other law enforcement agencies, both local and federal, and should serve as a great example of what can be achieved when everyone works together. I commend all of those involved for their outstanding efforts to remove dangerous individuals from our communities and prosecute them to the fullest extent.” 

NYSP Superintendent George P. Beach said:  “This investigation is another example of our law enforcement partners working collaboratively to put an end to the dangerous gang activity that brings violence and crime into our neighborhoods.  I commend all of our law enforcement partners for their hard work in dismantling these rival gangs and for their commitment to making our neighborhoods safer.  We have no tolerance for those who bring drugs and the threat of violence to our communities.”

According to the Indictments[1] unsealed today in White Plains and Manhattan federal court and other documents in the public record:

The Indictments arise from a joint investigation by the FBI’s Hudson Valley Safe Streets Task Force, the City of Poughkeepsie Police Department, the Dutchess County District Attorney’s Office, and the Dutchess County Sheriff’s Office into the gang war between Uptown and Downtown, which has led to multiple fatal and non-fatal shootings between 2012 and the present in the City of Poughkeepsie.

Uptown is a criminal organization whose members referred to themselves by, and were known by, several different names.  Those names include the “Spready Gang,” the “400 Savages,” the “Boogotti Boys,” and the “Mob Stars.”  Uptown gang members referred to themselves by different combinations of these names, all of which referred to the same criminal enterprise: the Uptown street gang.  Uptown is based within the eastern portion of Poughkeepsie, from east of Hamilton Street to the city line and, more specifically, within the Hudson Gardens housing development (commonly referred to as the “Bricks”).  Uptown gang members and associates control the narcotics trade within the Bricks, distributing primarily heroin, crack cocaine, and marijuana.  Uptown gang members stored shared guns in various locations known to gang members to protect the narcotics business, to protect each other from rival gangs, and to strike against rival gangs.  The case of United States v. Douglas Owens et al. charges 12 members and associates of Uptown, including its leaders: DOUGLAS OWENS, a/k/a “Born Truth,” and JIHAD WILLIAMS, a/k/a “Goodie.”

Downtown, like Uptown, is the name of a large-scale criminal organization that went by many different names.  Those names include the “420 Boys,” “L-Block,” “Most Hated,” “Hamo Gang,” the “C-Eazy Gang,” and the “Bully Hard Hunna” faction of the Bloods street gang.  Despite the existence of several different names, each one referred to the same criminal enterprise: the Downtown street gang.  Downtown’s base of operations was located in the western portion of Poughkeepsie, from west of Hamilton Street to the Hudson River and, particularly, within the Martin Luther King and Rip Van Winkle housing developments (commonly referred to as the “Ville” and “Rip,” respectively).  Downtown gang members and associates controlled the narcotics trade within the Ville, Rip, and the surrounding area, also distributing primarily resale amounts of heroin, crack cocaine, and marijuana.  Downtown gang members also stored their shared firearms in different locations known to members and associates.  This allowed Downtown gang members to arm themselves quickly when confronted by rivals and to protect each other and their narcotics business.  The case of United States v. Ronald Johnson et al. charges 19 members and associates of Downtown, including its leader: RONALD JOHNSON, a/k/a “Top Gun.”

In addition to countless non-fatal acts of violence against rival gang members and innocent victims, the rivalry between Uptown and Downtown has led to the following two murders:

• The murder of Downtown gang member Daquell LeBlanc, a/k/a “Hamo,” who was killed by a single gunshot wound to the chest at the age of 16 in the vicinity of Main Street, between Academy and North Hamilton Streets, on or about December 23, 2012.

• The murder of Caval Haylett, 18, an innocent bystander and local high school basketball star, who was killed by a single gunshot wound to the head while attending a barbeque in the vicinity of Winnikee Avenue and Harrison Street, on or about March 9, 2016.

In a coordinated operation, 11 defendants were arrested in and around Dutchess County yesterday and early this morning, one defendant was arrested in North Carolina, and one defendant was arrested in Florida.  The Uptown defendants will be presented later this afternoon in Manhattan federal court, while the Downtown defendants will be presented later this afternoon in White Plains federal court.  Eighteen defendants were in custody on state charges and will be transferred to federal custody in the next day.  Charts identifying each defendant, the charges, and the maximum penalties are below.

Mr. Kim praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force, the City of Poughkeepsie Police Department, the Dutchess County Sheriff’s Office, the Dutchess County Drug Task Force, as well as the United States Marshals’ Service, the New York State Police, and the New York State Department of Corrections and Community Supervision for their assistance in today’s arrests.  Mr. Kim also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance in the investigation.

The prosecution is being handled by the Office’s White Plains Division.  Assistant United States Attorneys Christopher J. Clore and Maurene Comey are in charge of the prosecution.

The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

A.G. Schneiderman Announces $465 Million Joint State-Federal Settlement With Mylan, Maker Of Epipens

New York Leads Coalition Of States In Settlement Of Allegations That Mylan Knowingly Underpaid Medicaid, Costing Taxpayers Millions

Settlement Will Return $38.5 Million To New York

Schneiderman: Efforts To Shortchange Medicaid Will Not Be Tolerated

  Attorney General Eric T. Schneiderman today announced that New York has agreed in principle to join a state-federal $465 million settlement with Mylan Inc. and its wholly owned subsidiary, Mylan Specialty L.P.—collectively known as “Mylan.” New York led a coalition of states in the investigation that resolved allegations that Mylan knowingly underpaid rebates owed to Medicaid for the drugs EpiPen® and EpiPen Jr.® (“EpiPen”) that were dispensed to Medicaid beneficiaries. Under the settlement, New York will receive $38.5 million.

“For nearly seven years, Mylan prioritized its bottom line – and shortchanged the Medicaid program and taxpayers. By misclassifying EpiPen, Mylan attempted to sidestep their obligations, leaving taxpayers to foot the bill,” said Attorney General Schneiderman. “Pharmaceutical companies should be warned: efforts to shortchange Medicaid will not be tolerated, and we’ll ensure that these companies are held accountable.”

Following a joint federal and state investigation, the settlement resolves allegations that Mylan submitted false statements to the Centers for Medicare and Medicaid Services (CMS) and several states reliant on EpiPen rebates, and knowingly underpaid its obligations for Medicaid drug rebates to the State Medicaid Program for EpiPen.

Under the Medicaid Drug Rebate Statute, participating pharmaceutical manufacturers or New Drug Code (NDC) holders, such as Mylan, must sign a Rebate Agreement with the Secretary of the United States Department of Health and Human Services as a precondition for obtaining Medicaid coverage for their drugs and pay quarterly rebates to state Medicaid programs for drugs dispensed to Medicaid beneficiaries. Additionally, NDC holders are required to advise CMS regarding the classification of a covered drug as an “innovator” or “noninnovator” drug, as the amount of rebates owed varies depending on the drug’s classification. The amount of the rebate also depends on pricing information provided by the manufacturer. For drugs classified as “innovator” drugs, NDC holders must report their “Best Price,” or the lowest price for which it sold a covered drug in a particular quarter. 

The settlement resolves allegations that, between July 29, 2010 and March 31, 2017, Mylan allegedly submitted false statements to CMS that incorrectly classified EpiPen as a “noninnovator multiple source” drug, as opposed to a “single source” or “innovator multiple source” drug, and failed to report a Best Price to CMS for EpiPen, which is required for all “single source” and “innovator multiple source” drugs. As a result, Mylan submitted false statements to CMS and several states reliant on EpiPen rebates, and knowingly underpaid its obligation for Medicaid drug rebates to the State Medicaid Program for EpiPen.

Today’s settlement also resolves allegations that Mylan Specialty overcharged certain entities (known as the “340B Covered Entities”) that participated in the 340B Drug Pricing Program, 42 U.S.C. § 256b.

The investigation stemmed from two whistleblower, or “qui tam,” actions pending in the United States District Court for the District of Massachusetts, which allege claims under the federal False Claims Act and various state false claims statutes that Mylan underpaid its rebate obligations to states. 

New York’s claims in the case were handled by the Attorney General’s Medicaid Fraud Control Unit (MFCU), which worked closely with the United States Attorney’s Office for the District of Massachusetts, the United States Department of Justice, and a multi-state team that included representatives from the Offices of the Attorneys General for California, North Carolina, South Carolina, Washington, and the Commonwealths of Massachusetts and Virginia. New York was also assisted by representatives of the New York State Department of Health’s Office of Health Insurance Programs, headed by Deputy Commissioner Jason A. Helgerson.

New York MFCU’s Chief of the Civil Enforcement Division Carolyn T. Ellis led the multi-state team that negotiated the settlement with Mylan for the states. Senior Auditor-Investigator Matthew Tandle was a member of the state team, assisted by Auditor Investigator Emily Brissette, under the supervision of Stacey Millis, Regional Chief Auditor of the Civil Enforcement Division. 

A.G. Schneiderman Announces Indictment Of State Detention Center's Private Medical Provider Staff For Alleged Theft From State

Staff At Brooklyn Juvenile Detention Center Each Allegedly Stole Over $50,000 By Falsifying Timesheets

  ttorney General Eric T. Schneiderman and New York State Inspector General Catherine Leahy Scott and announced today the indictments and arrest of two staff members of a State juvenile detention center’s private medical services provider for allegedly stealing and assisting in the theft of more than $50,000 each.

Roy Hammonds, 64, of Nyack, and Patricia Armstrong, 67, of Brooklyn, were indicted by a Brooklyn Grand Jury and subsequently arrested and arraigned today for Grand Larceny in the Second Degree, a felony. Armstrong was additionally indicted on eight counts of Falsifying Business Records in the First Degree, also a felony.

Hammonds, a physician’s assistant, and Armstrong, a nursing supervisor, were accused of taking more than $50,000 each. Both are employees of Correctional Medical Care (“CMC”), a company that provides medical staff to New York State correctional facilities, including the Ella McQueen Reception Center in Brooklyn. The Ella McQueen Center is a juvenile detention center reception facility run by the New York State Office of Children and Family Services (“OCFS”). An investigation by Inspector General Leahy Scott found that between January 2011 and December 2015, Armstrong completed her own and Hammonds’ time records and submitted them to CMC’s headquarters for payment. The indictment against Armstrong alleges that she submitted employee timesheets containing false information to CMC. Under contract with the State, CMC directly pays its employees and is reimbursed by the State subsequent to the submission of invoices.

“As we allege, the defendants not only defrauded the state, they stole medical resources that are meant to serve vulnerable youth facing urgent medical needs” said Attorney General Schneiderman. “We’ll continue to work with our partners to uncover and eliminate these types of fraudulent schemes.”

“Instead of treating vulnerable youth, these defendants were treating themselves to a no-show job,” said Catherine Leahy Scott, New York State Inspector General. “These two long-term colleagues took advantage of their supervisory roles in a State facility and violated the public trust. I will continue using all the resources of my office and working with my law enforcement partners to pursue anyone who defrauds taxpayers and steals public funds.”

Hammonds and Armstrong were arraigned before Supreme Court Justice Danny Chun in New York State Supreme Court in Brooklyn. Both defendants were released on their own recognizance. Hammonds is due back in court October 18. Armstrong is due back in court on October 25.

The charges against the defendants are merely accusations and they are presumed innocent until and unless proven guilty in a court of law. If convicted, the defendants face up to fifteen years in prison. 

The Attorney General thanked the Office of the New York State Inspector General for valuable assistance in this investigation. 

The investigation was conducted by Investigator Steven Broomer, Supervising Investgator Michael Leahy, and Deputy Chief John McManus of the OAG Investigations Bureau.  The Investigations Bureau is led by Chief Dominick Zarrella.