STATEMENT FROM BOROUGH PRESIDENT DIAZ RE: Mayor de Blasio's Plan to Replace NYCHA Boilers

"Mayor de Blasio's announcement today is cold comfort for the tenants of NYCHA, as it does nothing to accelerate the timeline of the procurement process. Even on the most optimistic schedule the city will have a different mayor when these new boiler installations are completed. 

"We cannot afford to wait any longer to make critical, long overdue repairs. NYCHA must issue an emergency declaration and take the necessary steps to cut through the red tape of the procurement process and replace broken boilers faster. This heat crisis is a dire health emergency, and it requires an immediate, permanent solution," said Bronx Borough President Ruben Diaz Jr.

EDITOR'S NOTE:

After questioning Mayor Bill de Blasio about the sad conditions at many NYCHA housing developments as to why residents have to wait over five years to have their broken refrigerators, and stoves replaced, we agree with Bronx Borough President Ruben Diaz Jr. that the city can not afford to push these repairs off any longer. 

However we go one step further in calling for something that has not be happening the past four years of the de Blasio administration, and that is accountability. If the mayor believes that the chair of NYCHA is doing her job well, then maybe she should stay and the mayor should resign.

 

BOROUGH PRESIDENT DIAZ CO-HOSTS 2018 HIP-HOP ELEMENT AWARDS

This year's honorees included Grammy award-winner Swizz Beatz, Big Daddy Kane, Doug E. Fresh, Kool DJ Red Alert, and "Street Soldiers" Lisa Evers

On Tuesday, January 30, 2018, Bronx Borough President Ruben Diaz Jr. and Windows of Hip Hop co-hosted the annual 2018 Hip-Hop Element Awards at Pier 132 in The Bronx.

 

The event honored those musical luminaries who have promoted the Bronx-born phenomenon known as hip-hop and advanced the culture forward by instilling civic mindedness and giving back to the community.

This year's honorees included Grammy Award-winner Swizz Beatz; hip-hop icons Big Daddy Kane and Doug E. Fresh; and “Street Soldiers” and FOX 5 news reporter and media personality Lisa Evers. Legendary New York City DJ and groundbreaking radio personality, Kool DJ Red Alert, received The Hip-Hop Element Award Lifetime Achievement Award; as well as a performance by Bad Boy Entertainment/Epic Records’ artists CYN.

“Whether you listen to Lil Uzi Vert or Migos; or you came up rocking to the sounds of Biggie Smalls and Fat Joe; or you grew up on Big Daddy Kane and Doug E. Fresh; this global phenomenon that is called hip-hop was birthed in our great borough,” said Bronx Borough President Ruben Diaz Jr. “The genre has grown to the point where it now influences mainstream pop culture. You see hip-hop’s influence everywhere, in all aspects of society; whether it’s Cardi B’s swagger making red-bottom Louboutin shoes highly popular, Kendrick Lamar’s powerful performance at the Grammys, Fat Joe using his resources to help us help Puerto Rico in their time of greatest need; or Jay-Z sitting down with CNN’s Van Jones to discuss the state of politics under the Trump presidency; you can see the impact this genre has left on pop culture. But make no mistake; there is no Migos, or Jay-Z, or Kendrick without pioneers like the ones we have honored tonight.”

Windows of Hip Hop (WoHH), who co-hosted the event with the borough president, is a non-profit, economic development project that promotes educational, communal, and historical perspective of hip-hop.

 

“This award, to me, is way beyond my Grammy Award,” said Swizz Beatz. “This award comes from the heart of hip-hop.”

 

“This is always a blessing to be recognized while you’re alive, a lot of us wait until someone passes away to recognize,” said Doug E. Fresh. “This is what life is all about, this is the celebration of life. These awards, people giving us things, people showing us appreciation, the times that you spend with your family, we’ll never forget these moments.”

 

“I’m not one of the originators of this, I came after them;” said Big Daddy Kane, “But I’m a student. To be on this stage, with them, it’s truly an honor.”

“I’m privileged and honored to accept this award,” said Kool DJ Red Alert. “We do what we love in life. We could have chosen anything else in life. But we stuck to what we love doing, and [hip-hop] took us around the world. In order for our elders to see around the world, they had to be in the service. Music took us around the world. Two turntables took me around the world.”

 

“I want to thank all the hip-hop legends who are here,” said Lisa Evers. “I remember Swizz Beatz coming up to The Polo Grounds, supporting ‘Street Soldiers’ early on; and DJ Red Alert supporting me; and everyone who schooled me in the hip-hop community; and also supported all our of initiatives.”

The Bronx Chamber of Commerce invites you to a Valentine Networking Party

Mayor de Blasio Releases Preliminary Budget for Fiscal Year 2019

This Administration is focused on making New York the fairest big city in America. Every decision in this budget was weighed on whether it brought us closer to that goal. We have no illusions about the real threats we face from D.C. and Albany. That’s why we’re investing in our people while maintaining historic reserves and safeguarding our city’s financial future.

– Mayor Bill de Blasio

  Today, Mayor Bill de Blasio presented New York City’s Preliminary Budget for Fiscal Year 2019 (FY19).

The FY19 Preliminary Budget is balanced, totaling $88.67 billion. In particular, this budget:

·         Makes strategic investments that build upon continued efforts to make New York City the fairest big city in America.

·         Includes $900 million in savings – the result of the Partial Hiring Freeze, agency and debt service savings – that offset all new spending. Plus, a goal of at least $500 million more in the FY19 Executive Budget.

·         Demonstrates fiscal responsibility and caution during a time of uncertainty and threats from Washington, D.C. and Albany.

Click here to view the FY19 Preliminary Budget.

ON THE HORIZON

Last year, President Trump passed the most draconian tax law in recent history. While the City is still analyzing the budgetary impacts, the facts are clear: middle- and lower-class New Yorkers will pay. This budget continues to provide the services New Yorkers rely on, while preparing for potential hits to New York City.

New York City’s current total risk from Washington is up to $700 million – and that could easily go up when the president puts out his budget this month. If Congress does not reinstate the Disproportionate Share Hospital funding, NYC’s Health + Hospitals could be facing a loss of $400 million per year. As of January 1, the City lost its ability to refinance with tax-exempt bonds – an estimated cost of up to $100 million annually. Additionally, by taking actions that reduce investor interest in the Low Income Housing Tax Credit, the Trump’s tax law threatens another $200 million a year in capital funding.

The cuts in the state Executive Budget are no less alarming. New York City is facing $400 million in cuts and cost shifts that would directly impact our City’s most vulnerable and deeply threaten our ability to provide the services we’re solely responsible for.

RESPONSIBLE BUDGETING

In the face of uncertainty, the City is maintaining the reserves it’s built up in historic fashion. Specifically:

• The General Reserve is at $1 billion in FY19 and every year of the financial plan, compared to the traditional $300 million.
• The Capital Stabilization Reserve that was established under this Administration is at $250 million.
• The Retiree Health Benefits Trust Fund is at $4.25 billion, $3.5 billion the result of actions taken by this Administration.

As a result, independent monitors and rating agencies continue to affirm the City’s strong budgetary management.

The Administration is also managing out-year gaps and continuing to find savings across City government. As of the Preliminary Budget, agency, partial hiring freeze and debt savings will reduce expenses by $900 million in FY18-19. This is in addition to the nearly $500 million found in the FY18 November Plan and with more to come in the Executive Budget this spring.

TARGETED INVESTMENTS TO MAKE NYC THE FAIREST BIG CITY IN AMERICA

This budget makes targeted investments to make good on the Mayor’s promise to bring fairness to all New Yorkers. Mayor de Blasio’s prior budgets have invested in priorities that can be felt across the five boroughs, such as building and preserving more affordable housing units than any other administration; providing free high-quality, full-day Pre-K for All; and moving nearly 2,000 additional NYPD officers onto the street helping secure New York City’s record-low crime rate.

The FY 2019 Preliminary Budget builds on that foundation and touches the lives of all New Yorkers. Specifically, the budget:

·         Accelerates the rollout of body-worn cameras for all NYPD patrol officers a year ahead of schedule totaling $5.9 million in FY18 and $12 million in FY19.

·         Invests $200 million in capital and $13 million in expense funding to improve the quality of life for NYCHA residents by facilitating immediate and long-term heating needs.

·         Strengthens the Department of Buildings’ ability to protect tenants from construction harassment via $1.6 million in FY18 and $5.2 million in FY19.

·         $750 million in capital funding across the life of the plan to expand upon our commitment to build and preserve move affordable housing than ever before.

·         Extends NYC Safe service to seven days a week for an additional $6.38 million in FY19 and out.

·         Expedites the completion of exams given to criminal defendants that assess their mental competence to understand charges against them for an additional $430 thousand in FY18 and $1.54 million in FY19.

·         Unleashes capacity through the basement apartment program pilot in East New York for $2.4 million in FY19.

·         Improves services for incarcerated women and their families for $200 thousand in FY18 and $5.72 million in FY19.

·         Expands jail diversion health screenings for detainees for an additional $700 thousand in FY18 and $4 million in FY19.

·         Helps 4,000 seniors in five years via DFTA’s Home Sharing program for $1.4 million in FY19.

·         Accelerates and expands 3-K for All with the addition of 4 new districts, bringing the total to 12 by 2020 for $46.4 million in FY21,

·         Builds 4 additional Pre-K locations for $46 million in capital funding in FY18 and $26 million in capital funding in FY19.

·         Expands anti-bullying efforts in schools for an additional $1.9 million in FY18 and $8.2 million in FY19.

Two Defendants Charged With 1997 Double Murder For Hire In The Bronx

  Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a federal indictment charging ROBERT ACOSTA and JOSE DIAZ, a/k/a “Cano,” with the December 22, 1997, murders of Alex Ventura, 25, and Aneudis Almonte, 20.

U.S. Attorney Geoffrey S. Berman said:  “Today’s indictment alleges that more than two decades ago, Robert Acosta orchestrated, and Jose Diaz carried out, the murders of Alex Ventura and Aneudis Almonte.  Now, thanks to the outstanding work of the NYPD and FBI, the long arm of the law has reached back over two decades to charge Acosta and Diaz with those terrible crimes.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “This case proves why there is no time limit on holding someone responsible for murder; taking a human life is the worst crime a person can commit. Our agents and law enforcement partners work daily, pursuing suspects in crimes that seem unsolvable.  The time and dedication make it worth the effort.”

NYPD Commissioner James P. O’Neill said:  “After more than twenty years on-the-run, NYPD detectives and FBI agents have arrested two defendants for a double homicide in the Bronx. The focus and precision this case embodies is what has enabled this city to become the safest city in America. We will continue rooting out crime and violence wherever we find it, until every neighborhood and block of this city is safe.”

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

In late 1997, ACOSTA agreed with DIAZ and others to pay DIAZ and others to kill persons who had stolen drug money from ACOSTA.  As a result of this agreement, Alex Ventura and Aneudis Almonte were murdered by DIAZ and others on December 22, 1997, in the vicinity of 2769 University Avenue in the Bronx, New York. 

ACOSTA, 46, of Yonkers, New York, and DIAZ, 52, of the Bronx, New York, were arrested this morning by the NYPD and the FBI.  The defendants will be presented later today before United States Magistrate Judge Kevin Nathaniel Fox.  The case has been assigned to United States District Judge P. Kevin Castel.

The Indictment charges each of the defendants in six counts: murder while engaged in a conspiracy to distribute five and more kilograms of cocaine and aiding and abetting the same (Counts One and Two); murder-for-hire conspiracy (Count Three); murder-for-hire and aiding and abetting the same (Counts Four and Five); and use of a firearm to commit murder in furtherance of a drug trafficking crime and aiding and abetting the same (Count Six).  ACOSTA and DIAZ each face a maximum sentence of life in prison or death.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Laurie A. Korenbaum, Michael Kim Krouse, and Nicholas Chiuchiolo are in charge of the prosecution.

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

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

A.G. Schneiderman Sues Fentanyl Maker Insys Therapeutics, Inc. For Dangerous And Deceptive Promotion Of Prescription Opioid Subsys

Complaint Alleges that Insys Deceptively Promoted Subsys In New York For Unsafe Uses, Violated State Law By Downplaying Drug’s Addictive Risks

In Addition To Penalties, Suit Seeks To Disgorge Insys’ Illegally Earned Revenue—Up To $75 Million

Suit Marks Latest Action In AG Schneiderman’s Multi-Pronged Strategy To Tackle The Opioid Epidemic

  Attorney General Eric T. Schneiderman today announced that his office has filed a lawsuit against Insys Therapeutics, Inc., a company that sells a highly addictive fentanyl drug called Subsys. Although Subsys was approved by the Food and Drug Administration (FDA) to treat excruciating cancer-related breakthrough pain, the complaint alleges that Insys recklessly marketed the drug for much wider use, covering a much broader set of patients. Additionally, the company allegedly engaged in a pattern of deceptive and illegal conduct by downplaying the drug’s risks of addiction, bribing doctors to prescribe the drug, and lying to healthcare providers to skirt their authorization process. As a result, the Attorney General’s office is seeking penalties and disgorgement of all revenues accumulated during the period of misconduct—up to $75 million.

“At a time when the opioid epidemic was ravaging New York, Insys Therapeutics allegedly marketed a drug illegally by blatantly disregarding the grave risks of addiction and death that opioids pose,” said Attorney General Schneiderman. “As we allege, Insys showed a wanton disregard for the law and the lives of New Yorkers and we will hold them accountable. My office will continue to fight the opioid crisis at every level and hold corporations that prioritize profits above New Yorkers’ health and wellbeing to account.”

Read the full lawsuit here.

In late 2012, the FDA approved Subsys for the specific, limited treatment of breakthrough cancer pain in opioid-tolerant patients. Its purpose was to provide relief to cancer patients who were suffering from excruciating pain. Beginning in 2012, Insys allegedly ignored this limited approval and instead broadly targeted many types of providers and patients, and represented that the drug was appropriate for flares of mild pain. Insys also downplayed Subsys’ risk of addictiveness. The company further directed its sales representatives to urge providers to prescribe Subsys in high doses, which were more expensive than lower doses. A 30-unit prescription of the lowest strength medicine costs approximately $700, while a prescription for the highest strength costs over $3500.

Additionally, the complaint alleges that Insys sales representatives called on medical offices that employed providers who had been arrested for illegal opioid distribution.

In furtherance of their deceptive and illegal scheme, Insys allegedly formed a business unit devoted solely to securing prior authorization from health plans for as many patients as possible. Insys trained its prior authorization staff to imply that patients had cancer pain, even when they did not. Additionally, Insys allegedly bribed prescribers to write prescriptions for Subsys. The company paid certain providers between $3000 and $5000 to act as “speakers,” at sham promotional events and implored its sales staff to obtain a “return on investment” on those payments by increasing prescription numbers.

The lawsuit announced today is the most recent action the Attorney General’s office has taken to combat the opioid crisis. Attorney General Schneiderman’s multi-levered strategy to tackle New York’s evolving opioid epidemic includes:

• Obtaining settlements with major national and global health insurers including Cigna and Anthem, which insure over 4 million New Yorkers, to remove barriers to life-saving treatment for opioid use disorder. The agreements put an end to the insurers’ policy of requiring prior authorization for medication-assisted treatment (“MAT”), which can lead to significant delays for patients seeking relief from addiction.
• Creating the Internet System for Tracking Over-Prescribing Act (“I-STOP),a series of enhancements to New York’s prescription drug monitoring program that provide doctors with patient’s up-to-date controlled substance prescription history and established a safe disposal program providing a place for New Yorkers to get rid of expired and unneeded drugs—thus reducing the likelihood of stolen and forged prescriptions being used to obtain controlled substances from pharmacies. I-STOP reduced “doctor shopping,” a practice in which an individual attempts to obtain the same or similar prescriptions from multiple physicians, by 90% since 2014.
• Launching the Community Overdose Prevention (“COP”) program, a life-saving initiative that enabled state and local law-enforcement officers in the state of New York to carry naloxone, the extremely effective heroin antidote that can immediately reverse the effects of an opioid overdose. Since the program’s implementation in April 2014, more than 100 overdoses were reversed using kits provided by the COP program, which distributed over 27,000 kits across the state.
• Obtaining an agreement with Amphastar Pharmaceuticals, Inc. to cut and cap the price of naloxone for all agencies in New York State, reducing the price of naloxone by nearly 20 percent.
• Enforcing Mental Health Parity Laws to reach agreements with six health insurance companies, requiring them to implement sweeping reforms in their administration of behavioral health benefits, in particular relating to medical management practices, coverage of residential treatment for substance abuse, and co-pays for outpatient treatment, and to submit regular compliance reports. The agreements ultimately provided millions of dollars in penalties and over $2 million in restitution for members whose claims for were improperly denied.
• Successfully prosecuting more than ten licensed prescribers including operators of “pill mills” and other unlawful practices for crimes related to improper opioid prescriptions.
• Cracking down on drug trafficking networks that traffic opioids into communities around the state. The Attorney General’s Organized Crime Task Force (OCTF) has now taken down 25 large drug trafficking gangs, made more than 580 felony narcotics arrests, and seized more than $1.5 million and more than 2,000 pounds of illegal drugs since 2011. In the past several months alone, Attorney General Schneiderman’s SURGE (Suburban and Upstate Response to the Growing Epidemic) Initiative has resulted in 260 alleged traffickers and dealers taken off the streets.
• Urging health insurance companiesto review their coverage and payment policies that contribute to the opioid epidemic, as well as sending letters to the country’s three largest pharmacy benefit managers requesting documents, data, and other information regarding how they are addressing the opioid crisis.

DOI INVESTIGATION RESULTS IN ARRESTS OF 17 CERTIFIED ASBESTOS INVESTIGATORS FOR FRAUDULENT INSPECTIONS

 Investigative Report Issued Today Recommends Reforms, Many Already Being Implemented, to Strengthen Asbestos Investigations in NYC

  Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”); Cyrus R. Vance, Jr., Manhattan District Attorney; Richard A. Brown, Queens District Attorney; Michael E. McMahon, Richmond County District Attorney, and Vincent Sapienza, Commissioner of the New York City Department of Environmental Protection (“DEP”), jointly announced the arrest of 17 Certified Asbestos Investigators (“CAIs”) on charges of falsely filing documents certifying that planned construction at dozens of properties in Manhattan and Staten Island would not disturb asbestos. The arrests were announced at a press conference today and stem from concerns brought to DOI by DEP asbestos enforcement staff. A subsequent investigation found an array of charged illegal conduct that occurred from 2016 through 2017, including asbestos investigators misrepresenting the content of lab reports regarding the presence of asbestos on inspected premises and asbestos investigators falsely representing to DEP that a location was free of asbestos when the investigator had not personally inspected the premises as required by law. These false reports potentially exposed unassuming workers to life threatening asbestos. DOI also issued a Report documenting this investigation, the vulnerabilities found, and the reforms necessary to protect and strengthen the integrity of asbestos investigations. This investigation is ongoing. 

DOI Commissioner Mark G. Peters said, “This criminal investigation and today’s arrests again show the widespread dangers of construction fraud. Working with our law enforcement partners and DEP, DOI exposed professional asbestos investigators who were certifying that sites were asbestos free without ever checking to see if the sites were actually safe, according to the charges. Instead, the defendants pocketed a fee, walked away, and potentially exposed multiple unsuspecting workers to serious health risks. DEP worked hand-in-hand with this team and has taken seriously the reforms DOI has recommended to strengthen and improve the integrity of asbestos inspections. We thank our partners in the Manhattan, Queens and Staten Island DA’s offices for their hard work and commitment to fighting fraud in all its forms and making New York City a safer place.” 

Before a construction permit is issued by the City Department of Buildings (“DOB”), the property owner must retain a Certified Asbestos Investigator, a professional licensed by DEP and the New York State Department of Labor, to inspect a property for the presence of asbestos. As part of an inspection, a CAI will conduct a visual examination of the location to determine if any asbestos-containing material may be present. If the CAI determines that there may be asbestos-containing material, the CAI will take samples of that material from the site and send the samples to a lab for testing. Once the CAI receives the lab results, they are submitted to DEP as an asbestos assessment report. If the lab results indicate there is no asbestos-containing material; there is asbestos-containing material that will not be disturbed during the work; or there are minor amounts of asbestos-containing material that will be abated prior to the work commencing, the CAI files a form known as an ACP-5. On this form, the CAI documents the location, date, and time of the inspection; signs and affixes his or her CAI seal; and then signs the document verifying that “the information provided herein is true and complete.” Once filed with DEP, the ACP-5 is assigned a control number. The property owner then submits that ACP-5 as one part of a package submitted to DOB to obtain a construction permit.

DEP brought DOI concerns regarding the assessments of certain CAIs, worked with and trained investigators, provided asbestos inspection records, and is implementing the reforms DOI recommended. In addition, DEP has already suspended and begun the process of revoking the CAI licenses of each of the defendants.

In 2017, DEP nearly doubled the number of inspectors auditing asbestos assessments. DEP has also been more aggressively suspending and revoking the certifications of CAIs who have submitted reports that were found to contain factual errors.

Joint investigation with the Manhattan District Attorney’s Office

Two years ago, DOI and the Manhattan District Attorney’s Office’s Financial Frauds Bureau began looking at fraud involving asbestos investigations, analyzing an array of records, including asbestos inspection records provided by DEP, and examining that list with other data, such as travel and cell phone records of the defendants, and audit results from labs where the CAIs brought building samples for asbestos testing. As a result of this investigation, nine defendants have been arrested and charged by indictment today. The charged crimes include:

 CAIs who falsely certified that construction at the property would not disturb asbestos even though the samples the CAI had submitted to the lab tested positive for asbestos; 

 CAIs who claimed to have conducted inspections when travel or other records show that the investigator was out of the country or out of the state. 

The nine defendants charged by indictments obtained by the Manhattan District Attorney’s Office are being unsealed today in Manhattan Supreme Court as each defendant is arraigned.

Joint Investigation with the Queens District Attorney’s Office 

DOI and the Queens District Attorney’s Office conducted sting operations that led to the arrests of seven CAIs today on charges of submitting an ACP-5 between June and July 2017, stating they conducted inspections when, in fact, they did not. The City requires that for an ACP-5 to be certified, a CAI must physically visit the location to survey for asbestos hazards. In each of these arrests, a certified ACP-5 form was purchased from a CAI stating there was no asbestos-containing material without that CAI physically conducting an on-site inspection, as required, and the CAI subsequently filed that ACP-5 with the DEP in Queens. Investigators conducted surveillance and monitored phone calls of the defendants in each case and found that the CAI never went to inspect the site. In one case, a CAI indicated he wrote about 50 ACP-5 forms for sites he never visited.

Joint Investigation with the Richmond County District Attorney’s Office

DOI and the Richmond County District Attorney’s Office found that in January 2017, FRANCIS OWOH filed an ACP-5 with DEP certifying that he performed an asbestos inspection at 102 Prall Ave. in Staten Island on December 28, 2016. Investigators reviewed records maintained by the United States Department of Homeland Security that showed the defendant exited the United States on December 12, 2016 and re-entered the United States on January 14, 2017. The investigation found that the defendant was in Nigeria when he said he had conducted an asbestos investigation at the site on Prall Ave. OWOH was arrested on Monday, January 29, 2018, released on his own recognizance, and is expected to return to Richmond County Criminal Court on April 13, 2018.

DOI’s Recommendations: 

DOI has made five recommendations to DEP to strengthen DEP’s regulatory oversight over CAIs. DEP has agreed to all recommendations and several have already been implemented, including:]

 DEP will conduct more thorough background checks of all new and renewing CAIs. DEP will also refer to DOI any new applicants where fraud and other misconduct is suspected. 

 DEP has drafted new rules that will now require that all CAI applicants have experience in building surveys for asbestos. This investigation revealed a lack of competence in asbestos investigations by certain CAI applicants, specifically registered design professionals, certified safety professionals and industrial hygienists, who under current rules are exempt from experience requirements. 

 DEP will prohibit CAIs from submitting bulk samples of suspect materials they collected in their investigations to laboratories that CAIs are affiliated with to avoid a potential conflict. Current state regulations do not prohibit CAIs from associations or ownership interests in a testing laboratory to which they send samples. 

 DEP will institute a more frequent and robust audit regimen to include a thorough review of the accuracy and authenticity of records associated with CAIs’ asbestos investigations and refer to DOI any suspect findings. This investigation revealed that even though CAIs are required to maintain business records associated with their investigations for a period of 30 years that these records were not properly maintained by many of the defendants. 

Indictments and criminal complaints are accusations. Defendants are presumed innocent until proven guilty.

LAW ENFORCEMENT PARTNERS ANNOUNCE CHARGES IN CITYWIDE ASBESTOS INSPECTION FRAUD CASES

Inspectors Accused of Failing to Conduct Proper Inspections, Falsely Claiming Inspection Sites Were Asbestos-Free

  Manhattan District Attorney Cyrus R. Vance, Jr., New York City Department of Investigation (“DOI”) Commissioner Mark G. Peters, New York City Department of Environmental Protection (“DEP”) Commissioner Vincent Sapienza, Queens District Attorney Richard A. Brown, and Staten Island District Attorney Michael E. McMahon today announced the arrest of 18 defendants for submitting false paperwork corresponding to fraudulent asbestos inspections occurring at approximately 40 sites across the city, including Manhattan. Nine of the defendants are charged in New York State Supreme Court indictments with Offering a False Instrument for Filing in the First Degree.^[1]

“When it comes to development, safety must come first—this rule applies to our construction sites, businesses, and homes,” said District Attorney Vance. “Whether a building is going up, being renovated, or coming down, it’s crucial to abide by the safeguards that exist to protect New Yorkers from harm. To do otherwise is a dangerous—and sometimes criminal—practice. In this case, the defendants are charged with falsifying paperwork about citywide asbestos inspections, potentially threatening the health of all those who live and work near these properties, and highlighting the need for more oversight in this area. I thank our partners for their commitment to this issue and encourage the implementation of additional measures to ensure the integrity of future inspections such as those recommendations noted in DOI’s report. I would also like to recommend that investigators be required to append lab results to their reports—something that is not currently mandated—in order to combat fraud and decrease the risk of exposing others to serious health hazards.”

DOI Commissioner Mark G. Peters said: “This criminal investigation and today’s arrests again show the widespread dangers of construction fraud. Working with our law enforcement partners and DEP, DOI exposed professional asbestos investigators who were certifying that sites were asbestos free without ever checking to see if the sites were actually safe, according to the charges. Instead, the defendants pocketed a fee, walked away, and potentially exposed multiple unsuspecting workers to serious health risks. DEP worked hand-in-hand with this team and has taken seriously the reforms DOI has recommended to strengthen and improve the integrity of asbestos inspections. We thank our partners in the Manhattan, Queens and Staten Island DA’s offices for their hard work and commitment to fighting fraud in all its forms and making New York City a safer place.”

The indictments are the result of long-term, joint investigation by the Manhattan District Attorney’s Office, DOI, DEP, Queens District Attorney’s Office, and Staten Island District Attorney’s Office into asbestos inspection fraud. 

In New York City, the Department of Buildings (“DOB”) requires property owners to retain a Certified Asbestos Investigator (“CAI”) to perform an inspection prior to obtaining a construction permit. CAIs, who are licensed by DEP, must prove that asbestos is not present at a property through a process of collecting bulk samples on site, submitting the samples to a laboratory, and reviewing the test results. CAIs are then required to submit an asbestos assessment report to DEP that documents the location, date, and time of the inspection. 

According to the indictments and documents filed in court, between 2016 and 2017, nine CAIs, including JOHN ANUFORO, 69, PAOLA CANO, 41, DAVID CHANG, 49, DOMINICK CICCARELLI, 37, JULIO CORPORAN, 50, ANTONIO JARAMILLO, 37, LONG RIGG, 36, KENG LEE SO, 36, and ERIC TELEMAQUE, 55, falsely filed documents certifying that asbestos inspections were performed at approximately 40 locations in Manhattan and that construction would not disturb asbestos at those sites. In fact, in some cases, the CAIs who claimed to have conducted the inspections were absent from the collection sample site, and instead, were out of the city, state, and sometimes even country at the time of the inspection. In other cases, CAIs falsely certified that certain properties were free of asbestos, in spite of possessing lab reports containing positive asbestos tests and evidence to the contrary. 

In order to improve industry-wide accountability and integrity, DOI also issued a detailed report documenting the vulnerabilities discovered through the investigation, as well as important recommendations for reform in this area. 

^[1] The charges contained in the indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.
Defendant Information:

JOHN ANUFORO, D.O.B. 6/15/1948
Elmsford, NY

Charged:

•    Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts

PAOLA CANO, D.O.B. 1/21/1977
Passaic, NJ

Charged:
•    Offering a False Instrument for Filing in the First Degree, a class E felony, 4 counts

DAVID CHANG, D.O.B. 6/8/1968
New York, NY

Charged:
•    Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count

DOMINICK CICCARELLI, D.O.B. 3/27/1980
Staten Island, NY

Charged:
•    Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count

JULIO CORPORAN, D.O.B. 8/17/1967
Bronx, NY

Charged:
•    Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts

ANTONIO JARAMILLO, D.O.B. 10/28/1980
Queens, NY

Charged:
•    Offering a False Instrument for Filing in the First Degree, a class E felony, 3 counts

LONG RIGG, D.O.B. 11/28/1960
Mt. Vernon, NY

Charged:
•    Offering a False Instrument for Filing in the First Degree, a class E felony, 13 counts

KENG LEE SO, D.O.B. 10/2/1981
Brooklyn, NY

Charged:
•    Offering a False Instrument for Filing in the First Degree, a class E felony, 10 counts

ERIC TELEMAQUE, D.O.B. 7/2/1962
Setauket, NY

Charged:
•    Offering a False Instrument for Filing in the First Degree, a class E felony, 6 counts