NYS Comptroller DiNapoli Files Suit Against Wynn Resorts' Board of Directors

Derivative Lawsuit Alleges Board Failed to Protect Company, Employees Against Longstanding Pattern of Sexual Abuse and Harassment

  New York State Comptroller Thomas P. DiNapoli today announced that, as Trustee of the New York State Common Retirement Fund, he has filed a legal action against officers and directors of Wynn Resorts Ltd. The derivative action alleges that certain officers and directors were aware that former CEO Stephen Wynn repeatedly made unwanted sexual advances towards employees and pressured employees to perform sex acts, yet failed to investigate or hold him accountable. 

“These board directors and officers were duty-bound to protect employees and the company, yet they failed to confront allegations of predatory behavior,” DiNapoli said. “We are asking the court to hold accountable the company officers and directors who allowed this behavior to go unchecked. The deeply disturbing revelations underscore that this board was loyal to Mr. Wynn at the expense of the safety of the company's employees and the company’s shareholders.”

A derivative lawsuit allows shareholders to take legal action on behalf of a corporation when the company’s officers or directors have not met their obligations as fiduciaries of the company. Among its requests for relief, DiNapoli’s lawsuit seeks to have Wynn Resorts’ take “necessary actions to enhance the Company’s governance to comply with applicable laws and to protect Wynn Resorts, its employees, and its stockholders from repeating the harms described” in the complaint.

The lawsuit alleges that the Wynn Resorts board knew of serious allegations against Mr. Wynn by, at the latest, March 28, 2016, when those allegations surfaced in litigation involving the company and Elaine Wynn (former board member and Mr. Wynn’s ex-wife). According to the lawsuit, the board’s failure to act on this and other reports of Mr. Wynn’s pattern of sexual abuse and harassment of his employees was a breach of their fiduciary duties to the company. Moreover, because gambling is a heavily regulated industry that requires a showing of “suitability” to obtain and maintain a gaming license, the board’s concealment of allegations against Mr. Wynn puts the company’s gaming licenses in jeopardy.  

Mr. Wynn resigned in response to public pressure following a published report, based on interviews with more than 150 witnesses, which detailed his history of sexual abuse and harassment.  Wynn Resorts’ stock value plummeted in the wake of the revelations and the company faces mounting lawsuits, the possible loss of its gaming licenses, and other legal and regulatory sanctions.  

The full text of the complaint filed in District Court in Clark Co., Nevada can be read here http://osc.state.ny.us/press/docs/wynn-complaint.pdf

As of January 31, 2018 the Fund held 183,800 shares in Wynn Resorts with an estimated value of $30,435,442. The Fund will vote its shares against all incumbents and all insiders nominated to serve on Wynn Resorts’ board at the company’s annual meeting. 

About the New York State Common Retirement Fund 

The New York State Common Retirement Fund is the third largest public pension fund in the United States with estimated assets of $209.1 billion as of Dec. 31, 2017. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. The Fund has consistently been ranked as one of the best managed and best funded plans in the nation. The Fund's fiscal year ends March 31, 2018.

TESTIMONY OF BRONX BOROUGH PRESIDENT RUBEN DIAZ JR. ON INTROS. # 608, 609 AND 610.

  My office, in partnership with City Council Member Ritchie Torres and City Council Member Chaim Deutsch, has introduced a package of new legislation designed to prevent catastrophic fires in the wake of December’s tragic fire in the Belmont section of The Bronx, which saw 13 lives lost.

Today we have introduced three bills that would improve fire safety and education, and potentially save lives:

Intro 610 would require owners of buildings with three or more units to provide and properly install approved stove safety devices on all stoves in units where a child or children 10 years or younger reside;

Intro 609 would require the Fire Department, in coordination with the Education Department, to implement a comprehensive plan for educating children and parents about fire safety and prevention

Intro 608 would require landlords to post a notice indicating that those escaping a fire should close all doors behind them.

These bills will help prevent future tragedies, keep our first responders out of harm’s way, and save lives.

On Thursday, December 28, 2017, a fire broke out at 2363 Prospect Avenue in Belmont. It led to 13 deaths, making it the deadliest fire New York City had seen in the past 25 years--since an inferno at the Happy Land social club killed 87 people in 1990. The five-story Belmont building was destroyed.

Investigators found that the fire was started by a three-year-old child playing with the stove in his apartment, and quickly grew out of control.

Just as we require window guards in apartments with young children, we should also require that stoves be made safer through the installation of approved safety devices. This tragic fire could have been prevented, had this young child been unable to tamper with the knob of the stove in his apartment. The flames spread quickly, in part because, as the boy's mother fled the burning apartment she left the door open.

For a small investment of just a few dollars per stove, we can prevent children from easily tampering with a knob and accidentally causing a fire. We can also educate families to close the door behind them if they are escaping a fire, in order to prevent the fire from spreading and to protect their neighbors. Additionally, we can do more to educate children and families on fire safety and prevention.

This is critical legislation that will protect our families, our neighbors, and keep our fire department and other first responders safe in an emergency.

One of the 13 people who died in this fire was PFC. Emmanuel Mensah. PFC. Mensah lived in this building, and was found dead in an apartment that was not his own. He was trying to rescue his neighbors, and he succumbed to the blaze.

There are many ways we can honor his memory, and preventing future tragedies is one of them. I thank Council Members Torres and Deutsch for their partnership on this legislation and for introducing these bills at my behest, and I look forward to seeing these three laws, which directly address the causes of deadly disasters like this, passed.

BP Diaz & The Shadow League Co-Host Screening of "Black Panther" For Bronx Students & Their Families

  On Friday, February 16, 2018, Bronx Borough President Ruben Diaz Jr., along with The Shadow League, co-hosted a screening of Marvel Studios’ "Black Panther," for volunteers from the Bronx Youth Corps and Bronx Fathers Taking Action group.

 

"This is a grand gesture by TheShadowLeague.com and we appreciate their thoughtfulness and we are very appreciative they made this screening happen," saidBronx Borough President Ruben Diaz Jr. "It is not coincidence that 'Black Panther' came out during Black History Month. This movie shows Hollywood that they do not have to be handcuffed by recycled stereotypes, that there are positive stories that can be told about the African-Americans experience and the African diaspora. While Black Panther and Wakanda are fictional, the movie celebrates where we came from, acknowledging the struggles we face and the importance of working together to keep on pushing towards a better future."

 

"Black Panther" is based off of the comic book series created by the iconic Stan Lee and Jack Kirby, in 1966. The movie has far exceeded box office expectations, raking in $704 million worldwide, and is already the fifth-highest grossing Marvel Comic Universe (MCU) film ever. "Black Panther" debuted in over 4,020 North American locations, shattering the previous Presidents Day weekend record of $152 million, set in 2016 by "Deadpool." Globally, "Black Panther" also had a "cross-nation release" in Africa, a first for any Disney film.

 

Launched in 2012, by media veteran Keith Clinkscales, The Shadow League was the first multi-media company dedicated to sports and pop culture journalism fueled by a distinct cultural perspective.

 

"We were thrilled to work with the Bronx Borough President's Office to bring Wakanda to the Bronx," Yussuf Khan, GM/SVP of The Shadow League. "Having the opportunity to interact with members of the Bronx Fathers Initiative, Bronx Youth Corps and their families and see their reactions to 'Black Panther' was amazing and we are honored to have made the experience a reality."

‘The New Flint’: Scathing report on NYCHA compares crisis to Michigan’s failures, surveys NYCHA residents on lead problems

IDC proposes comprehensive package of legislation to address major crisis facing NYCHA tenants

The Independent Democratic Conference on Monday released a bombshell report, “The New Flint,” comparing the lead crisis facing tenants of the New York City Housing Authority with the lead crisis that captivated a nation in Flint, Michigan. Along with a new survey of NYCHA residents on lead paint, the senators also unveiled a comprehensive package of legislation to protect residents from the failures of the Authority.

NYCHA houses 396,581 authorized residents nearly four times as many people as the city of Flint, Michigan with a population of 98,900. Despite the size of its population, the Authority’s admission of its failure to follow the law, no real action has been taken to cure the problems facing NYCHA tenants.

Alarmingly, despite NYCHA Chairwoman Shola Olatoye’s admission that lead paint inspection certifications were falsified, residents reported through an IDC survey that problems persist:

79% of residents said NYCHA did nothing when lead paint was discovered in their apartments

80% had children whose children’s blood-lead levels have not been tested

54% called NYCHA for repairs, but are still waiting in excess of a month for repairs

63% indicate their apartment has peeling or chipped paint

Over 82% said NYCHA did nothing to educate them about lead paint

“NYCHA is the new Flint, and we need to step up and protect tenants from the negligence of the Authority. Residents are in serious danger, especially children, if we do not take action now. The Independent Democratic Conference today unveiled a legislative package to protect nearly 400,000 tenants from the consistent mismanagement they face,” said Senator Jeff Klein (D-Bronx/Westchester).

“Every child growing up in NYCHA housing deserves to be free from lead poisoning. Every parent raising a family in NYCHA housing deserves to know that their apartment is not poisoning them. As someone who grew up in NYCHA housing myself, I know it is our duty to ensure NYCHA lives up to its responsibilities to every NYCHA resident. ‘The New Flint’ report we release today outlines the public health menace NYCHA created by its failures. Today, I stand with colleagues in advancing steps to combat these dangers – the serious danger a developmental neurotoxin poses to our community’s children. Today, I stand with colleagues to restore peace of mind to these families. And today, I stand with colleagues to ensure this type of crisis is never repeated,” said Senator Jesse Hamilton (D-Brooklyn).

“This survey indicates what we have been hearing around the City from the 400,000 NYCHA residents daily: action is desperately needed. No parent should live in fear that their young child has been exposed to lead paint in the home, especially if we are unable to grasp how widespread the severity of this failure on NYCHA's behalf,” said Senator Diane Savino (D-SI/Brooklyn).

“Considering the more than 400,000 people who live in NYCHA apartments and the falsification of lead inspection reports by NYCHA officials, it is entirely justified to compare the situation to that of Flint, Michigan. The inhabitants of NYCHA have a right to know when lead is found in their homes and the administration of NYCHA has a responsibility to comprehensively track and quickly deal with any lead problems. Lead poisoning is irreversible and lifelong, and we owe it to New York’s families to empower them to protect their children from the scourge of lead paint,” said Senator Marisol Alcantara (D-Manhattan).

“NYCHA residents should not be treated as second class citizens. I was alarmed when news reports surfaced indicating that the City had stopped inspecting lead-paint presence in their housing units, putting people’s lives in danger. In fact, according to published reports, NYCHA residents were exposed to lead paint. This is inconceivable. We must ensure NYCHA tenants are protected from lead paint exposure and other hazards,” said Senator Jose Peralta (D-Queens).

“It is shameful that the Mayor and the City of New York would put the health of so many people in danger but it is an absolute disgrace that the City would struggle to do the bare minimum to remedy any of the problems. When 79% of people respond to a survey saying that the City knew that lead paint was present in their home but did nothing about it, you have a very serious crisis on your hands. Our City cannot continue to put over 170,000 New York families living in NYCHA buildings in hazardous conditions and not answer to anybody. That is why I am proud to stand with my IDC colleagues to propose real solutions that will protect vulnerable children and give tenants across the City a voice,” said Senator Tony Avella (D-Queens)

“I know firsthand the deplorable conditions that far too many NYCHA residents face on a daily basis. Nobody has highlighted the lead-based paint, heating and mold issues that plague our developments more than Senator Klein and the IDC. I commend these common-sense proposals brought forth today that can affect real change and improve the quality of life for all NYCHA residents,” said Monique Johnson, President of Throggs Neck Resident Council.

"NYCHA needs both an infusion of money and oversight that ensures NYCHA residents that funds will be properly utilized to fix our homes so that these buildings are available to the next generation of New Yorkers. These bills start that process by allowing residents to access 311 to report repairs to HPD and oversight for money investments." said Maria Pacheco (UPACA 6 resident, member Community Voices Heard).

Over the years, the IDC issued numerous reports exposing NYCHA as the “city’s worst landlord,” showing problems with mold remediation, leaking roofs and peeling paint. The IDC lead the charge to invest $100 million, the first state funding in nearly a decade, to pay for serious repairs. But, the neglect continued without any transparency or oversight of the agency’s officials.

These problems will only be exacerbated by federal cuts to HUD and public housing authorities. In New York this could translate to a $466 million loss in operating funds for NYCHA and $346 million less from HUD’s budget.

The IDC laid out a package of legislation to clean-up NYCHA’s act and protect tenants:

Requiring 311 to accept NYCHA complaints - Currently NYHCA complaints are fielded directly by NYCHA and there is no public record or accountability. Requiring 311 to take and track complaints would provide transparency and allow residents to better track action.

An Independent NYCHA Monitor - Now more than ever, it is clear that NYCHA cannot be left to oversee its own operations. An independent NYCHA Monitor would be a watchdog who would ensure money invested in public housing in spent appropriately and report to the state.

City Council oversight - The New York City Council should be empowered to get the information they seek from NYCHA when their members request it.

The Repair Certificate Program - With buildings in dire need of repair, we need experienced developers to make quality, expedited fixes. In exchange experts would receive zoning bonuses for other projects.

Lead Based Paint Reports - This legislation would require NYCHA to submit lead based paint reports to the legislature, which would include valuable information on lead paint inspections by the authority.  

Property tax abatements for lead removal - This legislation incentivizes the removal of lead paint from buildings by providing owners with a tax abatement to keep their tenants safe.

Mandatory lead screening for children - This legislation would require children to be screened for lead when they enter kindergarten, second or fourth grade.

Follow-ups for children who test for elevated blood levels - Primary care physicians would be required to conduct follow-up tests to monitor blood lead levels if a child tests for elevated lead levels. In addition, the state must ensure there is a full environmental review of the child’s home if elevated blood lead levels are found.

The Occupant Protection Plan - Buildings inspected between 2012 and 2018 would have to be re-inspected for lead paint. All buildings constructing in 1978 or earlier would have to develop plans to protect occupants from the hazards of lead paint.

Senator Jeff Klein's Black History Month Celebration

Senator Jeff Klein's Black History Month Celebration

Four-hundred people were in attendance at State Senator Jeff Klein's Black History Celebration held at Villa Barone. After a hearty breakfast the program began with Senator Klein and Dwayne Gathers (President of the Bronx Veterans Mentors) reciting the Pledge of Allegiance. The National Anthems were sung by Evangelist Michelle Lindsay, followed by the Invocation by Pastor Jay Goodings of the Fellowship Tabernacle Church of God and Christ.

Above Left - Senator Klein greets some guests.
Above Right - Senator Klein and Mr. Dwayne Gathers during the Pledge of Allegiance.
Below Left - Senator Klein with Pastor Goodings during the Invocation.
Below Right - Councilman Mark Gjonaj was in attendance with the Democratic candidate to replace him in the 80th A.D. special election Ms. Nathalia Fernandez. Also seated at the table next to Councilman Gjonaj is current Assemblyman Luis Sepulveda who is the Democratic candidate ffor the 32nd Senate District special election to replace former State Senator Ruben Diaz Sr. who was elected to the City Council.

Senator Klein then introduced Councilman Mark Gjonaj from the 13^th City Council District. Senator Klein also called up current Assemblyman Luis Sepulveda who is the Democratic candidate in the upcoming April 24^th special election to fill the vacant 32^nd State Senate seat left by now Councilman Ruben Diaz Sr. Senator Klein also called up Ms. Nathalia Fernandez the Democratic candidate for the vacant 80^th A.D. seat left by now Councilman Mark Gjonaj.

As the program continued Senator Klein called up his Keynote speaker Ms. Bertha Lewis the founder of ACORN. Ms. Lewis said that there are still twenty-five active chapters of ACORN in twenty-five states. The outspoken Ms. Lewis continued by saying 'Your going to enslave my people, and only give us one month for Black History”?

Ms. Lewis went on to say that through 'Power Rising' there is organizing in the Atlanta area. She mentioned the Democratic Party in a way that seemed to sound as though she wanted a third party, adding that black people will soon be the majority in this country. It was a very powerful speech which received a standing ovation when she finished.

Above Left - Ms. Bertha Lewis of President and Founder of the Black Institute was the Keynote speaker.
Above Right - Ms. Lewis poses with Senator Klein, and puts up the famous Bronx X of Bronx Borough President Ruben Diaz Jr.
Below Left - Councilwoman Vanessa Gibson also spoke at the event.
Below Right - Could State Senator Luis Sepulveda (if he is elected) become the ninth member of Senator Klein's Independent Democratic Conference?

The seven honorees were, Mr. Michael Barnes, Founder of C.A.L.F. Industries (Courageous Athletic Leaders Forever). Deputy Inspector Benjamin Gurley, Commanding Officer of the 43^rd Precinct. Ms. Stephanie Hill Commnity Organizer and Activist. Dr. Kenneth R. Hamilton, Superintendent of the Mount Vernon City School District. Ms. Katherine Hamm Principal of P.S. 107. Mr/ Larry Robinson, Chair Bronx Community Board #2's Youth Services Committee. Ms. Madge Leanna Holsey Shaw, Community Activist and Educational Advocate.

Team Diaz African-American Abrazo

  It was a nasty rainy Friday night which may have kept some people hime, but that did not stop Team Diaz from having their annual African-American Abroza at Maestros Caterers. The room was filled with over 400 people who enjoyed the delicious Maestros food, and some who had their photo taken with the elected officials on hand.

Above and Below - Some of the people who had their photos taken with Councilman Ruben Diaz Sr., Assembly members Luis Sepulveda and Victor Pichardo.

The five honorees were – Bronx Borough President Ruben Diaz Jr, - Ms. Norma Saunders. Assemblyman Marcos Crespo – Ms. Annie Johnson. Assemblyman Luis Sepulveda - Ms. Constance Walker Hendricks. Councilman Rafael Salamanca – Mr. Daniel Barber. A posthumous honor was bestowed upon Ms. Charlotte Terrel Sapp to her family by Assemblyman Victor Pichardo. 79^th A.D. Male District Leader John Tucker stood in for Assemblyman Marcos Crespo who was visiting Israel.

Above - The American and Negro National anthems were sung by Ms. Sherry Williams. 

Below - Bronx Borough President Ruben Diaz Jr. during his speech blasted the New York City Housing Authority for its poor maintenance and lack of heat in many of the NYCHA houses. He said it took the state less time to build a bridge (the new Mario Cuomo Bridge) than it takes NYCHA to change a boiler at the Patterson Houses. 

Above - Honoree Ms. Norma Saunders thanks Bronx Borough President Ruben Diaz Jr. for his recognition of her.

Below - Honoree Mr. Daniel M. Barber thanks Councilman Rafael Salamanca for his recognition of him.

Bronx Chamber of Commerce Black History Celebration

  The Bronx Chamber of Commerce held their Annual Black History Luncheon which recognized six distinguished individuals for their outstanding vision, dedication and commitment to excellence, and for their contributions to the Bronx.

The six honorees were Retired Judge Hon. Eugene Oliver, Mr. Michael Nixon of the Bronx Overall Economic Development Corporation, Ms. Nicole McNulty VP Apple Bank Coop-City branch, Ms. Carolyn Harrison Bronx Regional Director for Young Life, Ms. Jacquie Wayans Television host and producer, and Mr. Bouna Coundoul former NYC Soccer Player of the Year.

The event was held at Tosca Marquee, and 13th City Councilman Mark Gjonaj stopped by to congratulate the six honorees and the members of the Bronx Chamber of Commerce.

Above - The Bronx Chamber of Commerce table with President CEO Nunzio Del Greco (seated left), Chair Joseph Kelleher, and BCC Events Director Phil Cardone are standing.

Below  - Former Assemblyman now Councilman Mark Gjonaj dropped in to say hello.He brought the Democratic candidate Ms. Nathalia Fernandez, his choice for the now vacant 80th assembly seat. 

Above - BCC Chair Joseph Kelleher congratulates  BCC President Nunzio Del Greco for announcing that 238 new members joined the Bronx Chamber of Commerce in 2017.

Below - L/R back row - Bronx Chamber of Commerce Chairman Joseph Kelleher, BCC President & CEO Nunzio Del Greco, Honorees Bouna Coundoul, Michael Nixon, and Hon. Eugene Oliver.

Front row - Honorees Jacquie Wayans, Nicole McNulty, and Carolyn Harrison, with Thomas Messina of Congressman Joe Crowley's office.

Bronx Man Sentenced To 75 Years In Prison For Murder In Front Of Bronx Daycare Center

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that RUBEN PIZZARO, a/k/a “Chulo,” was sentenced to 75 years in prison for murder, participating in a narcotics conspiracy, and firearms charges. PIZZARO was convicted on June 13, 2017, following a one-week jury trial before U.S. District Judge Gregory H. Woods, who also imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “In November of 2015, Ruben Pizzaro murdered a rival drug dealer in broad daylight close to a nearby daycare center. Pizzaro’s actions are another example of the wanton violence that often accompanies the sale of drugs. Ruben Pizzaro will now serve 75 years in federal prison for his brazen crimes.” 

According to the Complaint, the Indictment, other filings in Manhattan federal court, evidence at trial, and statements made in court proceedings:

Between August 2015 and January 2016, PIZZARO was a member of a street gang that sold cocaine and crack cocaine in the vicinity of 180th Street and Arthur Avenue in the Bronx, New York.  PIZZARO and his crew of drug dealers were in competition with a neighboring drug crew on Hughes Avenue in the Bronx.  That competition played out in several violent shootings in late 2015.  For example, on at least three occasions in October and November 2015, PIZZARO and his drug crew fired at members of the Hughes Avenue drug crew.  Individuals were shot during two of those three incidents, and the third occurred in the vicinity of a Bronx middle school. 

On November 24, 2015, PIZZARO shot and killed rival drug dealer David Rivera in broad daylight in front of a daycare center in the vicinity of 175th Street and Crotona Avenue in the Bronx.

In addition to the prison term, PIZZARO, 26, was sentenced to 4 years of supervised release.

Mr. Berman thanked the Federal Bureau of Investigation and the New York City Police Department for their work on the investigation.