Sayfullo Saipov Indicted On Terrorism And Murder In Aid Of Racketeering Charges In Connection With Lower Manhattan Truck Attack

  Jeff Sessions, the Attorney General of the United States, Joon H. Kim, Acting United States Attorney for the Southern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that a grand jury in the Southern District of New York has returned a 22-count indictment (the “Indictment”) against SAYFULLO HABIBULLAEVIC SAIPOV in connection with SAIPOV’s alleged terrorist attack in lower Manhattan on October 31, 2017, which killed eight people and injured 12 more.  The Indictment charges SAIPOV with eight counts of murder in aid of racketeering, 12 counts of attempted murder in aid of racketeering, one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), and one count of violence and destruction of a motor vehicle.  The case has been assigned to U.S. District Judge Vernon S. Broderick.

SAIPOV was initially arrested on a Complaint and presented before the Honorable Barbara Moses on November 1, 2017.  He was ordered detained and has been in federal custody since his arrest.  

Attorney General Jeff Sessions said:  “As alleged in this indictment, Sayfullo Saipov murdered eight innocent people and injured many more in a calculated act of terrorism in the heart of one of our great cities.  People have a right to safety walking down a sidewalk or riding a bike, and we will not change our resolve to confront these threats both at home and abroad.  I am especially proud today of the law enforcement officers who acted quickly and courageously to respond and to protect people from further harm.  We continue to offer our assistance, our support and our prayers to the victims of this attack and to all the people of New York City.”

Acting U.S. Attorney Joon H. Kim said:  “Consumed by hate and a twisted ideology, Sayfullo Saipov allegedly barreled down a pedestrian walkway and bicycle path on a sunny afternoon on the West Side of Manhattan, killing eight innocent people and injuring at least a dozen others.  As the scores of videos and images on his cellphone showed, Saipov’s depraved use of a rental truck as a weapon of terror was allegedly in support of the terrorist organization ISIS.  As of today, Saipov stands indicted of material support of terrorism, as well as eight counts of murder and 12 counts of attempted murder in aid of racketeering.  Like many terrorists before him, Saipov will now face justice in an American court.  And like New York City’s response to his alleged attack, we expect that justice in this case will be swift, firm, and resolute.”

FBI Assistant Director William F. Sweeney Jr. said:  “When Sayfullo Saipov carried out his brutal attack last month, his intentions were to inflict significant damage, death and injury to innocent victims and terrorize this city. We announce today’s indictment with the understanding that nothing can ever reverse the unfortunate events of that day, or alleviate the pain and sorrow of the victims’ families.  Today’s indictment should be a signal though that the rule of law will always prevail and we are dedicated to holding this perpetrator and anyone else who threatens to disrupt our most basic freedoms accountable for their criminal actions.”

As alleged in the Indictment and the Complaint:[1]

Islamic State of Iraq and Al-Sham

ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide.  ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence.  ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts. 

ISIS, including its leadership, membership, and associates, constitutes an “enterprise,” as that term is defined in Title 18, United States Code, Section 1959(b)(2) – that is, a group of individuals associated in fact, although not a legal entity, which is engaged in, and the activities of which affect, interstate and foreign commerce.  ISIS members and associates make and have made public statements and issued public declarations, which, among other things: (i) proclaimed and acknowledged acts of violence had been committed by ISIS; (ii) threatened future acts of violence if ISIS’s demands were not met; and (iii) were intended to promote and foster the prestige and standing of ISIS.  ISIS has specifically distributed propaganda designed to encourage ISIS followers to commit acts of violence using vehicles as weapons.   

The October 31, 2017, Truck Attack

On October 31, 2017, at approximately 3:00 p.m., SAIPOV drove a rented flatbed truck (the “Truck”) from New Jersey over the George Washington Bridge into New York City.  After SAIPOV entered New York City, he proceeded in the Truck to the West Side Highway and began traveling southbound.  Once SAIPOV was in the vicinity of Houston Street in Manhattan, he drove the Truck onto the bike lane and pedestrian walkway of the West Side Highway.  SAIPOV then drove down the walkway for several blocks, striking numerous civilians.  SAIPOV eventually collided with a school bus, which was carrying occupants in the vicinity of West Street and Chambers Street, at which point the Truck came to a halt. 

After SAIPOV collided with the school bus, he exited the driver’s door of the Truck with two objects in his hands that appeared to be firearms.  Moments after SAIPOV got out of the Truck, he yelled, in substance and in part, “Allahu Akbar,” which is an Arabic phrase that translates to “God is Great.”

SAIPOV was shot by a law enforcement officer and taken into custody.  Law enforcement officers subsequently recovered in the vicinity of the Truck, among other things, a paintball gun, a pellet gun, a stun gun, and three knives.  Law enforcement officers also recovered, approximately ten feet from the driver’s door of the Truck, a document that contained, among other things, the Arabic text for “No God but God and Muhammad is his Prophet” and “Islamic Supplication.  It will endure.”  “It will endure” is commonly used to refer to ISIS.  Cellphones recovered from the Truck contained, among other things, videos and images of ISIS propaganda, and internet searches for truck rentals and for Halloween in New York City.  

After SAIPOV was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights.  During that interview, SAIPOV stated, among other things, the following: 

• SAIPOV was inspired to carry out the Truck attack by ISIS videos he had watched on his cellular phone.  
   
• Approximately one year ago, SAIPOV began planning an attack in the United States.  Approximately two months ago, he decided to use a truck to inflict maximum damage against civilians.  On or about October 22, 2017, SAIPOV rented a truck so he could practice making turns in advance of his attack. 

• SAIPOV planned to use the Truck to strike pedestrians in the vicinity of the West Side Highway and then proceed to the Brooklyn Bridge to continue to strike pedestrians.  SAIPOV wanted to kill as many people as he could.  SAIPOV chose October 31, Halloween, for the attack because he believed there would be more civilians on the street for the holiday.  
   
• SAIPOV wanted to display ISIS flags in the front and back of the Truck during the attack, but decided against it because he did not want to draw attention to himself.  SAIPOV requested to display ISIS’s flag in his hospital room and stated that he felt good about what he had done.
   
  Eight individuals died from the injuries they sustained as a result of the Truck driving on the walkway and at least 12 additional individuals were injured. 

SAIPOV, 29, of Paterson, New Jersey, was initially arrested by the NYPD on October 31, 2017.  A chart containing the charges and maximum penalties against SAIPOV is set forth below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. 

Mr. Kim, Attorney General Sessions, and Mr. Boente praised the outstanding investigative efforts of the FBI, the NYPD, and the Department of Homeland Security, Homeland Security Investigations (“HSI”).  SAIPOV’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI, and other agencies – and the U.S. Department of Justice’s National Security Division.  Mr. Kim also thanked the U.S. Department of Justice’s Organized Crime and Gang Section, Office of Enforcement Operations, and Capital Case Section for their exceptional assistance. 

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint, and the descriptions of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

COUNT	CHARGES	MAXIMUM PENALTIES ON EACH COUNT
1-8	Murder in Aid of Racketeering	Life in prison or death
9-20	Attempted Murder in Aid of Racketeering	10 years in prison
21	Providing and Attempting to Provide Material Support to a Designated Foreign Terrorist Organization	Life in prison

Acting Manhattan U.S. Attorney Announces Charges Against Iranian National For Conducting Cyber Attack And $6 Million Extortion Scheme Against HBO

Defendant Leaked Confidential Information Regarding HBO Original Series, “Game of Thrones,” and other Popular HBO Original Programming

  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 Division of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging BEHZAD MESRI, a/k/a “Skote Vahshat,” for his involvement in a scheme to obtain unauthorized access to the computer systems of Home Box Office, Inc. (“HBO”), steal proprietary data from those systems, and obtain $6 million worth of Bitcoin from HBO through extortion by threatening to disseminate stolen content.  Subsequently, MESRI leaked the stolen content on the Internet, including but not limited to confidential information about upcoming episodes of the popular television series, “Game of Thrones,” and video files containing unreleased episodes of other television series created by HBO.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “Behzad Mesri, an Iranian national who had previously hacked computer systems for the Iranian military, allegedly infiltrated HBO’s systems, stole proprietary data, including scripts and plot summaries for unaired episodes of Game of Thrones, and then sought to extort HBO of $6 million in Bitcoins.  Mesri now stands charged with federal crimes, and although not arrested today, he will forever have to look over his shoulder until he is made to face justice.  American ingenuity and creativity is to be cultivated and celebrated -- not hacked, stolen, and held for ransom.  For hackers who test our resolve in protecting our intellectual property -- even those hiding behind keyboards in countries far away -- eventually, winter will come.”

FBI Assistant Director William F. Sweeney Jr. said:  “In the simplest of terms, he lurked in the alleyways of the Internet, identified the vulnerabilities of his victim, and pickpocketed their information from thousands of miles away. After he had successfully identified their proprietary secrets, he held their future for ransom.  Today’s charges show that international cybercriminals are never beyond the reach of U.S. laws.  This indictment unsealed today is the product of the countless hours put in by investigators in the FBI’s Cyber Division working alongside our prosecutors at the Southern District of New York U.S. Attorney’s office.”

According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:

Background on Behzad Mesri

MESRI is an Iran-based computer hacker who had previously worked on behalf of the Iranian military to conduct computer network attacks that targeted military systems, nuclear software systems, and Israeli infrastructure.  At certain times, MESRI has been a member of an Iran-based hacking group called the Turk Black Hat security team and, as a member of that group, conducted hundreds of website defacements using the online hacker pseudonym “Skote Vahshat” against websites in the United States and elsewhere.

Online Reconnaissance and Hack of HBO

Starting in approximately May 2017, MESRI conducted online reconnaissance of HBO’s computer networks and employees.  Among other things, MESRI searched for access points to the network where employees and other authorized users could remotely access HBO’s computer systems. 

From approximately May 2017 to July 2017, MESRI successfully compromised multiple user accounts belonging to HBO employees and other authorized users, and used those accounts to repeatedly obtain unauthorized access to HBO’s computer servers.  Over the course of several months, MESRI used that unauthorized access to steal confidential and proprietary information belonging to HBO, which he then exfiltrated to servers under his control.  Through the course of the intrusions into HBO’s systems, MESRI was responsible for stealing confidential and proprietary data belonging to HBO, including, but not limited to: (a) confidential video files containing unaired episodes of original HBO television programs, including episodes of “Barry,” “Ballers,” “Curb Your Enthusiasm,” “Room 104,” and “The Deuce;” (b) scripts and plot summaries for unaired programming, including but not limited to episodes of “Game of Thrones;”(c) confidential cast and crew contact lists; (d) emails belonging to at least one HBO employee; (e) financial documents; and (f) online credentials for HBO social media accounts (collectively, the “Stolen Data”).

Commencement of Extortion Scheme

Between approximately July 23, 2017, and July 29, 2017, MESRI engaged in a scheme to extort HBO by transmitting, or aiding and abetting the transmission of, the following email messages, each of which was sent to multiple HBO executives and employees: 

*An email on July 23, 2017, that provided evidence of the hack and claimed, in substance and in part, that the sender had hacked into HBO’s computer systems and had stolen approximately 1.5 terabytes of HBO’s data.

*A second email on July 23, 2017, that claimed, in substance and in part,  that the stolen data included full scripts and cast lists for the seventh season of the television series, “Game of Thrones,” and “precious data” for other shows, including shows that were as of that time unaired.  The email further stated, in substance and in part, that HBO was a “difficult target” and that infiltration was accomplished through “a complex cyber operation[.]”  The email included a threat to release the data publicly unless HBO paid a ransom of $5.5 million worth of Bitcoin.  The email concluded with a custom image depicting the “Night King,” an undead character from “Game of Thrones,” and bearing the message, “Good luck to HBO.”

*An email on July 26, 2017, that stated, in substance and in part, that the ransom demand had been increased to $6 million worth of Bitcoin, and included additional threats to destroy data on HBO computer servers.

*An email on July 29, 2017, that included, among other things, information regarding Bitcoin addresses to which HBO should direct ransom payments, and provided a firm deadline of later that same day for HBO to begin making ransom payments if it wanted to prevent the public leak of the Stolen Data.

Release of Stolen Data

Starting on approximately July 30, 2017, and continuing through August 2017, MESRI caused portions of the Stolen Data to be publicly leaked over the Internet on websites that he controlled.  Certain of the video materials that MESRI caused to be leaked included a graphic depicting the “Night King” that was superimposed at the bottom of the video.  In addition, MESRI undertook efforts to promote the leaks of the Stolen Data on the Internet, including by, among other things, causing emails to be sent to members of the media regarding the leaks, and causing the creation of a Twitter profile to announce the leaks and provide evidence of the hack of HBO’s computer network.

MESRI, 29, a citizen and resident of Iran, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of computer hacking, which carries a maximum sentence of five years in prison; three counts of threatening to impair the confidentiality of information, each of which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; and one count of interstate transmission of an extortionate communication, which carries a maximum sentence of two years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.

Mr. Kim praised the outstanding investigative work of the FBI.    

The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.      

 

[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

A.G. Schneiderman Announces Indictment Of Brooklyn Resident For Deed Theft Of Two Residential Properites

Marilyn Sanchez Allegedly Illegally Transferred Ownership Of Two Brooklyn Homes By Forging Signatures Of Lawful Owners

A.G. Schneiderman Offers Tips And Free Services For New Yorkers To Avoid Foreclosure Scams

  Attorney General Eric T. Schneiderman announced the indictment of Marilyn Sanchez, 49, of Brooklyn, for allegedly filing two fraudulent deeds and supporting documents with the New York City Register’s Office in order to fraudulently acquire ownership of two separate residential homes in Brooklyn, New York.  

“It’s unconscionable that scammers would prey on vulnerable New Yorkers in an attempt to steal their homes – but as property values continue to increase, these sorts of scams are on the rise,” said Attorney General Schneiderman. “My office won’t hesitate to prosecute those who take advantage of New York homeowners. I encourage all New Yorkers to follow our tips and make use of our free programs in order to protect themselves.”

“We remain vigilant in our investigations and arrests of those responsible for deed fraud,” said New York City Sheriff Joseph Fucito. “Our partnership with the Attorney General has been an integral part of our strategy to help New Yorkers preserve their homes. I personally want to thank our Sheriff’s Detectives Francesca Rosa and Nene Kodjoe for a very thorough investigation.”

According to the indictment and statements made at Sanchez’s arraignment in Kings County Supreme Court today, in January 2016 Marilyn Sanchez allegedly illegally transferred ownership of 477 Christopher Avenue in Brownsville from the lawful owners to herself by recording a deed and five supporting documents containing forged signatures with the New York City Register’s Office.  

Additionally, in November 2016, Sanchez allegedly illegally transferred ownership of 271 East 32^nd Street in East Flatbush by recording a deed and five supporting documents containing the forged signatures of the lawful owners with the New York City Register’s Office.

In both instances, the owners never signed the deed nor the supporting documents and they never gave Sanchez, or anyone else, permission to sign on their behalf. 

Sanchez is charged with two counts of Grand Larceny in the Second Degree, a class C felony, and twelve counts of Offering a False Instrument for Filing in the First Degree, a class E felony.

Marilyn Sanchez was arraigned before the Honorable Judge Miller in Kings County Supreme Court, and entered a plea of not guilty. Bail was set at $7,500 bond or $3,000 cash. If convicted, Marilyn Sanchez faces up to 3 to 15 years in state prison.

These charges are merely accusations and the defendant is presumed innocent unless and until proven guilty.

In December 2016, Attorney General Schneiderman launched the Foreclosure Rescue Scam Prevention Initiative – a grant program focused on enhancing outreach, education, and referral services for homeowners at risk of fraudulent foreclosure rescue schemes. The Foreclosure Rescue Scam Prevention Initiative is part of the Attorney General’s broader efforts to direct resources to at-risk homeowners, including investing $130 million in the Homeowner Protection Program (HOPP); since 2012, HOPP has provided free, high-quality assistance to over 80,000 families to help avoid foreclosure of their homes.

To protect yourself from becoming a victim of a foreclosure rescue scam, the Attorney General offered the following tips:

• Be skeptical of online ads or telephone callers that promise they can get you a mortgage modification or save your home from foreclosure. Only your bank or loan servicer can approve a loan modification.

• Visit www.AGScamHelp.com to determine if a company is legitimate.
• Do not give your personal financial information, such as your bank account number, social security number, or the name of your loan servicer, to a caller offering to help save you from foreclosure. Your bank will already have this information.
• Never pay an up-front fee for mortgage-related services. It is a violation of New York law to charge upfront fees for such services, and violations should be reported to the Attorney General’s hotline at 1-855-HOME-456.
• If you believe you have been scammed by a foreclosure rescue operator or a debt relief organization, submit a complaint to the New York State Attorney General’s Office: ag.ny.gov/consumer-frauds/Filing-a-Consumer-Complaint

The Attorney General thanks the New York City Sheriff’s Office for its assistance on this matter.

A.G. Schneiderman Issues Consumer Alert For Black Friday And Cyber Monday

A.G. Encourages New Yorkers To Follow Tips To Protect Themselves Against Fraud And Scams

As New Yorkers prepare for the holiday shopping season, Attorney General Eric T. Schneiderman issued tips for consumers to protect themselves on Black Friday and Cyber Monday.

  “As New Yorkers begin making holiday purchases for family and friends, they should know that some deals are too good to be true,” said Attorney General Schneiderman. “We encourage consumers to follow our tips to protect against fraudsters and ensure they spend their money wisely and safely this holiday season.”

Attorney General Schneiderman issued the following tips for consumers shopping on Black Friday and Cyber Monday: 

• Beware of misleading bargains and added fees. The “sale” price may have been marked up before it was marked down – nullifying the impact of the sale. Often, the touted “sale” price may, in fact, be significantly higher than the price for that same item later in the season. Additionally, delivery charges and/or other added costs such as assembly fees are often not reflected in the “sale price.” In many cases, hidden costs like these may negate the value of the sale.  

• Compare warranty terms. Not all warranties are the same. Make sure you read the terms of any warranty to learn what protections you get and the duration of those protections. This could significantly affect that cost of an item over the long-run.   

• Know the terms of a layaway plan. The law requires merchants to give a detailed description of the merchandise to be purchased on layaway plans, the total cost of the items including all charges, the duration of the plan, the required payment schedule, the consequences of missing payments, the refund policy, and the location (if other than the place of purchase) where the merchandise is being stored.

• Check return and refund policies. The law requires all merchants to post their refund policies. A store that fails to do so must give consumers 30 days to get a refund in the manner that the purchase was made. Be especially vigilant of “final sales” or “cash-only – final sale” notices, as you will have little or no recourse if the merchandise proves to be defective. Some stores will require the original packaging and charge a hefty restocking fee for returned items.  

• Beware of restricted gift cards. Be sure to read the terms and conditions of gift cards before purchasing. It is illegal to deduct any fees for non-use within 25 months of purchase or to have an expiration date of less than five years from issuance. Use your gift card as soon as possible. If it later appears that your card has expired, or that fees have been deducted, contact the company that issued the card. It may still honor the card or withdraw the fees. 

• Shop only on secure Internet connections. Do not conduct any transaction that involves personal, financial, or credit card information while using an open and unsecured Wi-Fi connection. Be careful not to shop, conduct business, or send sensitive or personal information out on these networks because identity thieves often stake out open networks seeking victims. When entering payment information online, you should verify that HTTPS is in your address bar to protect yourself from identity thieves and cyber criminals. URLs that begin with https:// instead of the standard http:// are secured by SSL – an internet security protocol.

• Do not be tricked by confusingly similar website and domain names. Pay particular attention to your retailer’s URL when shopping online. Scammers use variants of a known company’s Internet address to try and lure users into visiting fake websites. They often target users through email or social media. Avoid clicking on links from email or social media sites. Watch out for websites with URLs that differ slightly from those of legitimate online retailers, and links that appear genuine but direct your browser to a completely different URL. To ensure safe shopping online, type the URL of your desired retailer directly into your web browser — and watch for typos.    

• Protect yourself by using credit or debit cards. With the advent of point-of-sale malware and rampant data breaches, identity thieves are now more sophisticated and dangerous than ever. If you are going to make purchases online, you can best protect yourself from the risks of identity theft and fraud by using credit or debit cards. Determine which is best for you and your purchase needs.
  • Credit: Credit cards generally offer better purchase protection and fraud dispute resolution than other methods of payment. When you use a credit card, you are accessing a line of credit from the issuer. Note that each purchase is essentially a loan you must repay later, often with high interest.
  • Debit: Debit cards are tied directly to your checking account so they’re best used to help avoid credit traps. There is little risk getting into debt with debit cards, but be careful of overdraft charges. Further, if your debit card is lost or stolen, you must report it within two business days to limit your loss to $50.

• Be wary of too-good-to-be-true contests and prize promotions. Consumers should be suspicious of any email, messages, or posts on social networks promoting giveaways or contests that seem too good to be true, g., free high-value gift cards, tablets, and smartphones. These “contests” are often scams designed to bilk consumers out of money and/or to collect consumers’ personal information for resale. Genuine sweepstakes and contests are commonplace on the Internet; however, you should avoid any contest or promotion that requires you to pay money or to perform any sort of financial transaction. Also, think twice before participating in promotions that require entrants to register with multiple third-party websites; often these are ploys to build marketing lists. Promotions that require users to provide more than simple contact information may even be phony or run by scammers who resell consumer information to collect referral fees.

• Read the fine print. Broadly worded promotional offers and advertisements often mislead consumers into paying full price for items they believed were on sale. Consumers should carefully examine Internet deals by reading any and all fine print in the promotional materials and identifying the exact brand and model number on sale. Consumers should also avoid bait-and-switch advertisements or promotions that lure consumers with basement prices that are not guaranteed to be in stock. Fine print stating that quantities are limited is a tell-tale sign of this bait-and-switch tactic. 

New York City Comptroller Stringer Releases Fiscal Year 2017 Popular Annual Financial Report

  New York City Comptroller Scott M. Stringer released the Popular Annual Financial Report (PAFR) for Fiscal Year 2017. For the third year in a row, the report presents information on the City’s revenues, expenses, budget, and capital projects in 27 easy-to-understand pages and includes dozens of graphs, charts, and plain-language explanations to help everyday New Yorkers understand the budget.

“In a world of ‘alternative facts’, it’s more critical than ever to deliver digestible information directly to New Yorkers. Our City’s finances are complex — last year, we spent $86.2 billion – and sunlight matters. New Yorkers deserve to know where that money comes from and where it’s going. This report breaks down important data in an accessible way and I encourage every New Yorker to take a look,” New York City Comptroller Scott M. Stringer said.

The two previous reports have received the Government Finance Officers Association’s Award for Outstanding Achievement in Popular Annual Financial Reporting. The Fiscal Year 2017 PAFR has been submitted for the same award this year.

The majority of the data in the PAFR comes from the Comptroller’s Comprehensive Annual Financial Report, which is released every year on October 31st. This year’s PAFR highlights information including:

New York City Saw its 7th Consecutive Year of Job Gains

• The City added 69,600 private-sector jobs in FY 2017, a gain of 1.9 percent;
• Approximately 45% of the new private-sector jobs were in mid- to high-wage sectors;
• All five boroughs had their lowest unemployment rates since FY 2008 – 4.2 percent in Manhattan, 4.2 percent in Queens, 4.8 percent in Staten Island, 4.9 percent in Brooklyn, and 6.5 percent in the Bronx;

Taxes and Revenue

• Overall, the City brought in more than $85 billion in revenues in Fiscal Year 2017, split between program revenues – such as grants – and general revenues, like taxes.
• In FY17, New York City received nearly $29 billion in grants – primarily in the form of state and federal aid, and program revenues such as charges for services – $3 billion above the previous year. The largest associated revenues were from grants received for education programs, which received over $12 billion, and social services grants, which brought in more than $5 billion. General government grants were the third highest category at $3 billion, an increase of over $1 billion compared to last year.
• Another $56.3 billion came in from general revenues, an increase of $1.7 billion from the previous year. Sources included $24.5 billion in real estate taxes, $11.3 billion in personal income taxes, and $8.3 billion in sales and use taxes.
• In the last year, 45 percent of tax revenues came from real estate taxes, compared to 20 percent from personal income tax, 15 percent from sales and use tax, and 20 percent from other taxes.

Expenses Grew

• In FY17, the City spent $77 billion from its general fund – an increase of roughly $3.3 billion from FY16.
• The largest share of resources was dedicated to education, at $23.3 billion.

Capital Project Commitments Rose

• Capital commitments totaled $10.86 billion, about $2.4 billion — or 28% — more than in FY16.
• The surge in capital commitments was led by the Department of Environmental Protection, which saw an increase of $901 million, and the Department of Education, which had an increase of $632 million.
• Nearly one-third of the FY 2017 capital budget – $3.1 billion – was dedicated to the Department of Education. The Department of Environmental Protection was next with $2.5 billion, or 23 percent, followed by the Department of Transportation at $1.6 billion, or 15 percent.

Peer-City Comparisons

• In 2016 – the most recent comparison available – New York City had 60.3 million tourists, outpacing Chicago, which had 54.1 million, and Philadelphia, which welcomed 42 million.
• New York City boasts more than 39,800 acres of parkland, compared to roughly 12,900 in Chicago and 10,800 in Philadelphia.
• Each City provides different types and levels of service for its residents. In FY 2016, New York City spent over $10,800 per resident, while Philadelphia spent about $4,100 and Chicago spent $2,700.

HAPPY THANKSGIVING

MEMBERS OF CONEY ISLAND STREET GANG INDICTED FOR MURDER, RACKETEERING CONSPIRACY AND UNLAWFUL USE OF FIREARMS

Three Defendants Responsible for Fatal Shooting Outside Mermaid Houses in Brooklyn 

  Four members and one associate of the West End Enterprise, a street gang based in three apartment complexes in Coney Island, New York, will be arraigned this afternoon in federal court in Brooklyn on an indictment charging them with crimes including murder in aid of racketeering, racketeering conspiracy, unlawful use of firearms, witness tampering and robbery. The 12-count superseding indictment relates to the defendants’ alleged criminal activities between 2011 and 2017. The defendants, Tysheen Cooper, also known as “Billz,” Maurice Washington, also known as “Moe” and “Flaco,” Sharod Liburd, also known as “Pop,” and Gabriale Herbert are scheduled to be arraigned this afternoon before United States Magistrate Judge Lois Bloom. The defendant Michael Liburd, also known as “Mike Mike” and “Mitty,” is scheduled to be arraigned Tuesday, November 21, 2017, before Magistrate Judge Bloom.

 Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.

 As detailed in the superseding indictment and other filings, Cooper, Michael Liburd, Sharod Liburd and Washington were members of the West End Enterprise, a street gang composed of individuals residing in and around the Sea Rise Apartments, the Gravesend Houses and Surfside Gardens, also known as the “Mermaid Houses,” located in the western end of Coney Island. During that time, Cooper, Michael Liburd, Washington and other coconspirators allegedly engaged in narcotics distribution, witness intimidation and acts of violence, including retaliatory shootings against members of a rival gang, known as “Sex Money Murder,” and the January 17, 2016 murder of Antwon Flowers. Flowers was shot to death as he left an apartment building in the Mermaid Houses development in retaliation for the murder of a West End Enterprise leader, who had been killed in the East New York section of Brooklyn less than a day earlier. Herbert, Cooper and Sharod Liburd are also charged with a gun-point Hobbs Act robbery.

 “As alleged, the defendants and other members of their street gang have subjected the residents of Coney Island to violent conduct, including murder, over a period of years,” stated Acting United States Attorney Rohde. “The indictment sends a clear message that this Office, together with our federal and local law enforcement partners, will use every available resource to rid our communities of gangs, and the crimes they commit, by prosecuting gang members to the fullest extent of the law.” Ms. Rohde extended her thanks to the Drug Enforcement Administration for its assistance in the investigation.

 “People usually think of Coney Island as a fun place to ride the rides, and have a hot dog on the beach. The men charged in this case created a dirty underbelly in a family oriented place, accused of murder, violence and criminal behavior,” stated FBI Assistant Director-in-Charge Sweeney. “Not only did they allegedly commit these crimes, they did their best to make sure no one would testify against them. These dangerous gangs don’t have a place on Coney Island, or in any community, and the FBI won’t relent in pursuing cases targeting their leadership.”

 “Ridding drugs, gangs and violence from New York City public housing is essential and this joint investigation resulted in just that,” stated DOI Commissioner Peters. “Public housing tenants deserve what all New Yorkers want: a safe home for themselves and their children. DOI is proud to work with our federal and city law enforcement partners to expose and stop these crimes.”

 The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a sentence of life imprisonment.

 The superseding indictment is the fifth indictment in the government’s ongoing investigation into gang violence in Brooklyn’s Coney Island neighborhood.

The Defendants:

TYSHEEN COOPER (“Billz”) Age: 26 Residence: Brooklyn, New York

GABRIALE HERBERT Age: 20 Residence: Brooklyn, New York

MICHAEL LIBURD (“Mike Mike” and “Mitty”) Age: 27 Residence: Brooklyn, New York

SHAROD LIBURD (“Pop”) Age: 20 Residence: Brooklyn, New York

MAURICE WASHINGTON (“Moe” and “Flaco”) Age: 28 Residence: Brooklyn, New York

DOI INVESTIGATION LEADS TO ARREST OF CITY SANITATION SUPERVISOR AND LIFEGUARD ON CHARGES OF SEXUAL MISCONDUCT

  Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest of a Department of Sanitation (“DSNY”) Supervisor and Department of Parks and Recreation (“DPR”) Lieutenant Lifeguard on charges that he inappropriately touched his subordinate on two occasions while working at a pool in Manhattan. The investigation began after an employee at DPR alerted DOI to the alleged conduct. The Office of New York County District Attorney Cyrus R. Vance, Jr., is prosecuting the case. 

  Commissioner Mark G. Peters said, “This alleged conduct serves as yet another disturbing reminder that unwanted sexual advances can happen anywhere and to anyone. DOI encourages people who feel that they’ve been victimized by a City employee, or have potentially witnessed such inappropriate conduct, to come forward and report these incidents. Forcible sexual behavior has no place in government, and no place in New York City.”

 FRANCISCO LORENZO, 44, of the Bronx, N.Y., was arrested today and charged with Forcible Touching, a class A misdemeanor, Sexual Abuse in the Third Degree, a class B misdemeanor, and Harassment in the Second Degree, a violation. Upon conviction, a class A misdemeanor is punishable by up to one year’s incarceration, a class B misdemeanor is punishable by up to three months’ incarceration, and a violation is punishable by up to fifteen days’ incarceration. 

 LORENZO began working at DSNY in October 1999 and receives an annual base salary of $98,370. LORENZO has also worked as a Lieutenant Lifeguard seasonally since 1990, making $23.16 per hour, and received an annual salary of $18, 492 in 2017. LORENZO was suspended by DPR on September 2, 2017 after the alleged incidents occurred. DOI has notified DSNY of LORENZO’s arrest.

 According to the criminal complaint, on September 1, 2017 and September 2, 2017, while working at the Asser Levy Pool on East 23rd Street in Manhattan, LORENZO allegedly inappropriately touched a 24-year old lifeguard without his consent. 

 Commissioner Peters thanked New York County District Attorney Cyrus R. Vance, Jr., and his staff for their partnership on this investigation. Commissioner Peters also thanked DPR Commissioner Mitchell J. Silver and DSNY Commissioner Kathryn Garcia, and their staffs, for their cooperation and assistance in this investigation.

A criminal complaint is an accusation. A defendant is presumed innocent until proven guilty.