ARMY CORPS WILL EXPEDITE TIMELINE ON ‘ROCKAWAY & JAMAICA BAY REFORMULATION’

After Meeting With the Army Corps, Schumer & de Blasio Announce Feds Have Heeded Their Call By Moving Full Steam Ahead on Vital Rockaway Reformulation Project for Ocean and Bay Sides

Under New Agreement, Draft Report Will Be Issued For Public Comment in August & Final Report In November; Speedier Timeline Means Construction Can Begin Next Year Instead of 2020

Schumer, de Blasio: Army Corps Acceleration Means Sea Wall, Jetties & Groins Will Be Delivered to Rockaway On Greatly Accelerated Timeline

  Today, U.S. Senator Charles E. Schumer and Mayor Bill de Blasio announced that, after their push, and following Schumer-secured vital construction funds, a greatly expedited timeline on the Rockaway Reformulation Study has been secured. According to the Army Corps of Engineers, the draft report will now be issued in August, followed by a final report in November, allowing for construction in the Rockaways to start as early as next year on the Atlantic side and Jamaica Bay neighborhoods. After Sandy, Schumer pushed for and secured full federal funding for this much-needed resiliency project to better protect the whole Rockaway peninsula from storms and floods. In February, Mayor de Blasio met with the head of the U.S. Army Corps of Engineers in Washington D.C. and secured a commitment to expedite construction while Senator Schumer secured an additional $730 million to ensure the Army Corps had the funds available to deliver coastal resilience projects in the region, including the Rockaway Reformulation as well as projects on Staten Island and Long Island. This builds on the earlier work by Schumer and de Blasio to secure a commitment from the Army Corps to evaluate coastal storm protections for Southern Brooklyn.

“The residents of the Rockaways and Southern Brooklyn need better protections ASAP, and they are justifiably scared and tired of waiting. This agreement with the Army Corps, forged by Mayor de Blasio and I, will take the flood protection projects from the back burner to the front. In addition to the hundreds of millions we secured by reprogramming hundreds of millions in vital construction funds for this project, this agreement will mean that we can greatly accelerate the actual building of vital protections like a sea wall on the bay side, jetties and groins and more to protect every resident of the Rockaways from future storms and flooding,” said Senator Schumer. “For far too long, the Rockaways have been waiting for a solution. As a strong supporter of this project, I commend the Army Corps for heeding our call and moving full steam ahead on this vital project.”

“New York City’s shoreline is our first line of defense against climate change. We are grateful that the US Army Corps of Engineers has agreed to accelerate its work to protect our coastal neighborhoods. By working with communities and local leaders, we are continuing to deliver on our commitment to build a more sustainable, more resilient, and more equitable city,” said Mayor Bill de Blasio.

The Rockaway Reformulation Study, which Schumer and de Blasio have long supported, will ultimately determine the solution for long-term erosion control and coastal protection projects along the Atlantic Coast, between East Rockaway Inlet, Rockaway Inlet and Jamaica Bay. While the reformulation study dates back to a 2003 agreement with NYSDEC, it has been subjected to various delays in funding and implementation. However in the Sandy Supplemental Appropriation of 2013, Senator Schumer secured full federal funding to complete the Reformulation study and construction of the preferred alternative.  Initially, the Sandy relief bill that was signed into law required only that the feds pick up 65% of the project. Immediately after the bill’s passage, Schumer began working with the Army Corps and Office of Management and Budget to re-categorize the effort as “ongoing construction” and, therefore, eligible for full federal funding.  This jump started this vitally-needed yet long-stalled plan to better protect the whole Rockaway peninsula.

In February, Schumer announced that he secured $730 million in federal funding for the construction of Sandy-related Army Corps projects, including vital storm protection projects in Rockaway and Jamaica Bay. The $730 million in funding was previously trapped in limbo, unable to fund the construction of critical mitigation work throughout New York. Schumer successfully transferred these funds in the just-passed budget so that they can be used towards the construction of desperately needed coastline protection projects in New York. Schumer explained the additional $730 million will help to ensure critical pieces of the Rockaway and Jamaica Bay projects move forward including the dunes, groins, and beach fill along the Atlantic Shoreline and the high frequency flooding risk reduction measures in Jamaica Bay.

Earlier this month, Schumer met with Colonel Asbery, head of the U.S. Army Corps of Engineers, New York District. Prior, Mayor de Blasio met with the U.S. Army Corps of Engineer’s General Semonite. As a result of these personal meetings, the Army Corps has agreed to expediting the project’s timeline enabling the construction agreements for the Atlantic Shorefront and Jamaica Back Bay to start next year. Schumer and de Blasio explained that once the Army Corps releases the draft report in August, impacted residents and business owners will be able to review the plans and provide public comment.

Bronx Borough President Ruben Diaz Jr. - Women’s History Month Celebration

Iranian National Arrested For Scheme To Evade U.S. Economic Sanctions By Illicitly Sending More Than $115 Million From Venezuela Through The U.S. Financial System

  Geoffrey S. Berman, United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, Cyrus Vance Jr., New York County District Attorney, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ALI SADR HASHEMI NEJAD (“SADR”) was arrested for his alleged involvement in a scheme to evade U.S. economic sanctions against Iran, to defraud the United States, and to commit money laundering and bank fraud.  SADR was charged with participating in a scheme in which more than $115 million in payments for a Venezuelan housing complex were illegally funneled through the U.S. financial system for the benefit of Iranian individuals and entities.  SADR was arrested yesterday on a six-count Indictment (the “Indictment”) and presented this afternoon in U.S. District Court for the Eastern District of Virginia.  SADR’s case has been assigned to U.S. District Judge Andrew L. Carter Jr. in the Southern District of New York.   

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Ali Sadr Hashemi Nejad created a network of front companies and foreign bank accounts to mask Iranian business dealings in Venezuela and evade U.S. sanctions.  For years, Sadr allegedly funneled more than $115 million of a nearly half-billion-dollar Venezuelan construction contract through the U.S. banking system, using entities in Switzerland, Turkey, and the British Virgin Islands to conceal Iran’s identity.  The arrest of Sadr shows that U.S. economic sanctions against Iran are for real, and violators will be exposed and prosecuted.”

Manhattan District Attorney Cyrus Vance Jr. said:  “This indictment is the result of an investigation launched by my Office in 2013 into this defendant and his illicit scheme to funnel millions from Venezuela to Iranian-controlled entities. The defendant’s conduct strikes at the very heart of what U.S. economic sanctions are designed to prohibit. The most important values in the international community – respect for human rights, peaceful coexistence, and a world free from terrorism – depend on the effective enforcement of these sanctions. We are proud to join with our federal partners to protect the security of our nation and the integrity of our financial system.”

Assistant Director-in-Charge William F. Sweeney Jr. said:  “Sadr’s arrest and the FBI’s investigation into his actions are further evidence of Iran’s never-ending attempts to circumvent U.S. sanctions.  It also illustrates the FBI New York’s relentless pursuit of actors representing the Iranian government, and our success at thwarting the use of the U.S. banking systems for Iran’s nefarious goals.”

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

Beginning in 1979, the President, pursuant to the International Emergency Economic Powers Act (the “IEEPA”), has repeatedly found that the actions and policies of the government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and declared a national emergency to deal with the threat.  In accordance with these presidential declarations, the United States has instituted a host of economic sanctions against Iran and Iranian entities.  This sanctions regime prohibits, among other things, financial transactions involving the United States or United States persons that were intended for the benefit of the Government of Iran or Iranian individuals or entities. 

In August 2004, the Governments of Iran and Venezuela entered into an agreement (the “Agreement”), whereby they agreed to cooperate in certain areas of common interest.  The following year, both governments supplemented the Agreement by entering into a Memorandum of Understanding regarding an infrastructure project in Venezuela (the “Project”), which was to involve the construction of thousands of housing units in Venezuela. 

The Project was led by Stratus Group, an Iranian conglomerate controlled by SADR and his family with international business operations in the construction, banking, and oil industries.  In December 2006, Stratus Group incorporated a company in Tehran, which was then known as the Iranian International Housing Corporation (“IIHC”).  IIHC was responsible for construction for the Project.  Thereafter, IIHC entered into a contract with a subsidiary of a Venezuelan state-owned energy company (the “VE Company”), which called for IIHC to build approximately 7,000 housing units in Venezuela in exchange for approximately $475,734,000.  Stratus Group created the Venezuela Project Executive Committee to oversee the execution of the Project.  SADR was a member of the committee and was responsible for managing the Project’s finances.

In connection with his role on the Project, SADR took steps to evade U.S. economic sanctions and to defraud U.S. banks by concealing the role of Iran and Iranian parties in U.S. dollar payments sent through the U.S. banking system.  For example, in 2010, SADR and a co-conspirator used St. Kitts and Nevis passports and a United Arab Emirates address to incorporate two entities outside Iran that would receive U.S. dollar payments related to the Project on behalf of IIHC.  The first entity, Clarity Trade and Finance (“Clarity”), was incorporated in Switzerland, and the second, Stratus International Contracting, J.S., a/k/a “Stratus Turkey,” a/k/a “Straturk,” was incorporated in Turkey.  Stratus Turkey and Clarity were both owned and controlled by SADR and his family members in Iran.  SADR then opened U.S. dollar bank accounts for Clarity and Stratus Turkey at a financial institution located in Switzerland. 

Thereafter, SADR and others conducted a series of international financial transactions using Clarity and Stratus Turkey for the benefit of Iranian parties in a manner that concealed the Iranian nexus to the payments, in violation of U.S. economic sanctions.  Specifically, between April 2011 and November 2013, the VE Company, at the direction of SADR and others, made approximately 15 payments to IIHC through Stratus Turkey or Clarity, totaling approximately $115,000,000.  

SADR and others directed that payments be routed through banks in the United States to Stratus Turkey’s or Clarity’s bank accounts at the financial institution in Switzerland.  The majority of the funds were then transferred to another offshore entity located in the British Virgin Islands, which had been incorporated by SADR and others in 2009.  In addition, on February 1, 2012, Clarity wired more than $2,000,000 of proceeds from the Project directly into the United States.  Those proceeds were then used to purchase real property in California.

SADR, 38, of Iran, is charged with one count of conspiracy to defraud the United States, one count of conspiracy to violate the IEEPA, one count of bank fraud, one count of conspiracy to commit bank fraud, one count of money laundering, and one count of conspiracy to commit money laundering.  A chart containing the charges and maximum penalties is 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 the judge.

Mr. Berman and Mr. Demers praised the outstanding investigative efforts of the New York County District Attorney’s Office and the FBI.  Mr. Berman also thanked the New York County District Attorney’s Office for their ongoing assistance in this investigation. 

Count Number	Description	Maximum Penalty
One	Conspiracy to Defraud the United States 18 U.S.C. § 371	Five years in prison
Two	Conspiracy to Violate IEEPA 50 U.S.C. § 1705	20 years in prison
Three	Bank Fraud 18 U.S.C. § 1344	30 years in prison
Four	Conspiracy to Commit Bank Fraud 18 U.S.C. § 1349	30 years in prison
Five	Money Laundering 18 U.S.C. § 1956	20 years in prison
Six	Conspiracy to Commit Money Laundering 18 U.S.C. § 1956	20 years in prison

[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.

Two New York National Guard Soldiers Sentenced To Prison For Fraudulent Recruitment Bonus Scheme

  Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced today that EVETTE MERCED, a Staff Sergeant in the New York Army National Guard, was sentenced to 36 months in prison, and her husband, DARRYL HARRISON, a Sergeant First Class in the New York Army National Guard, was sentenced to 33 months in prison, for leading a scheme designed to fraudulently obtain recruiting bonuses intended to reward those who legitimately recruited soldiers to the Army National Guard.  MERCED and HARRISON pled guilty on June 16, 2017, before U.S. Magistrate Judge James C. Francis IV to conspiracy to commit theft of government funds and aggravated identity theft.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “While most join the military to serve their country, Evette Merced and Darryl Harrison enriched themselves by fraudulently obtaining recruiting bonuses.  Today, they were sentenced to prison for defrauding the military and American taxpayers.”

According to documents filed in this case and statements made in related court proceedings:

In September 2005, the Army National Guard established a recruiting bonus program, referred to as the Guard Recruiting Assistance Program (G-RAP), administered by a private company, Document and Packaging Broker, Inc. (Docupak).  The G-RAP was designed to offer referral bonus payments to Army National Guard soldiers not otherwise involved in Army National Guard recruitment efforts for civilians the soldiers successfully convinced to serve in the Army National Guard.  A participating soldier, also known as a Recruiting Assistant (“RA”), could receive up to $2,000 in bonus payments for referring another individual to join.  To participate in the program, a soldier was required to establish an online account in his or her name to record the referral and recruitment efforts.  The RA would input the personal identifying information of each recruit into the account.  Based on certain milestones achieved by the referred soldier, a participating soldier could then receive payment through direct deposit into the participating soldier’s designated bank account.  Soldiers who were themselves serving as paid recruiters for the Army National Guard as part of the National Guard’s standard recruitment program were not eligible to participate in the G-RAP or to receive a referral bonus payment, as the G-RAP was intended to be a supplement to the National Guard’s standard recruiting program.   

Beginning in 2007, MERCED and HARRISON abused their positions as members of the Army National Guard then serving as full-time salaried recruiters for the Army National Guard by providing the personal identifying information of potential soldiers to various RAs in exchange for thousands of dollars in kickbacks.  The RAs then used their respective online RA accounts to falsely claim that they were responsible for referring those soldiers to the New York Army National Guard.  After making those false claims, those RAs received referral bonus payments totaling more than $77,000 from the G-RAP, and kicked back a significant portion of those payments to MERCED and HARRISON. 

In addition to their prison terms, MERCED, 47, and HARRISON, 53, both of Charlotte, North Carolina, were each sentenced to two years of supervised release.  MERCED was also ordered to pay forfeiture in the amount of $28,000 and restitution in the amount of $77,000.  HARRISON was ordered to pay forfeiture in the amount of $10,250 and restitution in the amount of $77,000. 

Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the Army Criminal Investigation Command. 

Statement From A.G. Schneiderman On Facebook/Cambridge Analytica

  “Consumers have a right to know how their information is used – and companies like Facebook have a fundamental responsibility to protect their users’ personal information.

“Today, along with Massachusetts Attorney General Healey, we sent a demand letter to Facebook – the first step in our joint investigation to get to the bottom of what happened.

“New Yorkers deserve answers, and if any company or individual violated the law, we will hold them accountable.” 

A.G. Schneiderman Announces Settlement With Adore Me Lingerie Company For Deceptive Advertising

AG’s Agreement Follows Separate $1.4 Million Settlement With FTC, Including $125,000 For New Yorkers 

Retailer Will Pay Additional $300,000 in Penalties, Fees, and Costs, As Well As Up To $63,000 More in Restitution for NY Consumers 

Settlement Requires Company To Reform Its Marketing Practices

  Attorney General Eric T. Schneiderman today announced a settlement with lingerie retailer Adore Me, Inc. (“Adore Me”), following an investigation into the company’s business and advertising practices for its VIP Membership Program. The settlement resolves allegations that Adore Me deceptively marketed its VIP Membership Program to consumers for a $39.95 monthly fee—often by failing to adequately disclose the recurring monthly charges to consumers and leading them to believe that they could still use their accumulated store credit when they cancelled the program. In a separate settlement with the Federal Trade Commission (“FTC”), Adore Me agreed to pay $1.4 million in consumer restitution, of which New Yorkers will receive approximately $125,000. The Attorney General’s settlement requires the retailer to pay $300,000 in penalties, fees, and costs, as well as up to $63,000 in restitution to consumers.

“Adore Me misled customers – and we’re holding them to account” said Attorney General Schneiderman. “My office will continue to investigate companies that cheat New Yorkers out of their hard earned money through misleading advertisements.”

Adore Me offers consumers two methods to buy its merchandise: a pay-as-you-go option that does not require any further commitment, and a VIP Membership Program that enrolls consumer in a monthly fee-based program. While Adore Me’s VIP Membership Program offers consumers a discount on their initial purchase of merchandise, as well as discounted prices on future purchases each month, Adore Me charges consumers enrolled in the VIP Membership Program $39.95, unless, within the first five days of the month, the consumer “shops” and purchases merchandise or affirmatively clicks a button to “skip” buying merchandise that month. For those consumers who do not “shop” or “skip” during the required five-day period, Adore Me charges their credit or debit cards $39.95, which is then reflected as a store credit in the consumers’ Adore Me account. 

Adore Me marketed its VIP Membership Program to consumers without clearly and conspicuously disclosing the material terms and conditions. In addition, Adore Me told consumers that their store credits could be used at any time. However, until June 2016, Adore Me actually kept all credits of consumers who canceled their VIP Membership and still had store credit remaining in their online accounts at the time they cancelled. In addition, consumers often incurred monthly fees for several months without realizing that they had been enrolled in Adore Me’s VIP Membership Program. Even after consumers noticed these charges on their credit or debit card statements, many consumers experienced difficulties cancelling this fee-based membership program when they contacted Adore Me.

Adore Me recently reached a separate settlement with the Federal Trade Commission (“FTC”) for almost $1.4 million in consumer restitution. Under that settlement, consumers who forfeited store credit between May 1, 2015 and May 19, 2016 will receive a full refund. Under Adore Me’s settlement with the FTC, New York consumers will receive approximately $125,000 in restitution. 

In addition to those consumers who will receive restitution pursuant to the FTC’s settlement with Adore Me, the following categories of consumers are eligible to receive restitution under the Attorney General’s settlement:

• New York consumers who currently have store credit in an amount greater than twelve (12) months of VIP Membership Program charges;

• New York consumers who had store credit with Adore Me that they forfeited when they cancelled their VIP Memberships before May 1, 2015 or after May 19, 2016;

• New York consumers who cancelled their VIP Membership Program prior to June 2016 and satisfied certain criteria evidencing that they only spent store credit to avoid forfeiture of those store credits; and

• Any consumers who filed a complaint with the Attorney General’s office between January 1, 2012 and December 31, 2017 stating that they were not aware or did not knowingly consent to being enrolled in the VIP Membership Program.

Under the terms of the settlement, Adore Me is required to notify consumers in writing that they are entitled to a refund. The company will issue refunds to the credit card, debit card, or bank account that consumers used to make their purchases from Adore Me. If, for any reason, the refund does not go through, Adore Me will mail consumers a refund check.

In addition to paying $300,000 in penalties, fees, and costs and up to an additional $63,000 in consumer restitution, Adore Me has agreed to several important reforms of its current business practices. These include:

• Reforming its online marketing practices to ensure consumers understand that they are enrolling in Adore Me’s fee-based VIP Membership Program;

• Obtaining the consumer’s express informed consent prior to billing any consumer for Adore Me’s VIP Membership Program;

• Providing consumers with a simple online mechanism to cancel their VIP Membership and promptly stop billing and collecting monthly payments; and

• Ceasing to charge consumers enrolled in its VIP Membership Program who have accumulated twelve (12) months of store credit.

MAYOR DE BLASIO CLOSES SCHOOLS FOR WEDNESDAY MARCH 21st

  In an announcement just in time for the 6 PM local news television shows NYC Mayor Bill de Blasio has announced that due to predictions of up to TEN INCHES or more of snow for Wednesday that all NYC Public Schools will be closed. 

 The mayor added that while you may not see the snow during arrival time, it is expected to fall throughout the day thus leaving a very hazardous dismissal time. For the safety of the NYC Public School children, all Public Schools will therefore be closed on Wednesday March 21st. 

MAYOR DE BLASIO AND NYC & COMPANY ANNOUNCE NEW YORK CITY WELCOMED RECORD 62.8 MILLION VISITORS IN 2017

 2017 saw an increase of 2.3 million visitors over 2016, marking the eighth consecutive year of tourism growth

  Today, Mayor Bill de Blasio and NYC & Company—New York City’s official destination marketing organization— announced that 2017 was the eighth consecutive year for record-breaking tourism, with the City welcoming an estimated 62.8 million visitors last year, an increase of 2.3 million visitors over 2016.  Visitation for 2017 was comprised of 49.7 million domestic and 13.1 million international visitors, both all-time highs.

“We’re keeping our door to the world open,” said Mayor de Blasio. “Even with all the headwinds from the White House, we attracted a record number of visitors to our city. That’s a testament to the strength of our tourism sector and the values of our city.”

“Despite geopolitical challenges and a travel ban that made our task of promoting tourism more challenging than ever, we are pleased to see that we overcame these hurdles to realize a consecutive eighth year of tourism growth in New York City, welcoming an all-time high of 62.8 million visitors last year. The strength from our Asia and South American markets helped offset drops in our traditional European core markets. At the same time, the City continued its constant trend of reinvention, always offering countless reasons to visit and discover all that our five boroughs only can offer, both iconic and new. And campaigns to counter the negative rhetoric such as New York City – Welcoming the World, reaffirmed our commitment to being an open and welcoming global capital,” saidNYC & Company President and CEO Fred Dixon.

In 2017, NYC & Company launched two campaigns, “New York City – Welcoming the World” and “True York City”, which helped position NYC as a must-visit destination despite challenges in the geopolitical climate and changes in travel policies. Overall, tourism last year grew 3.8 percent compared to 2016, when NYC welcomed 60.5 million visitors. Domestic visitation grew 3.9 percent, from 47.8 million visitors in 2016 to 49.7 million in 2017. International travel increased by 3.4 percent, from 12.7 million visitors in 2016 to 13.1 million in 2017.

"The world clearly loves New York, and we love our tourists - for the economic boost that comes with their visits as well as the excitement and energy that they bring to our streets. Our world-renowned attractions include the Theater District, Times Square and the High Line - and that's just in my Council district alone. I thank everyone for coming here and everyone who works to make those visitors feel at home in the Big Apple," said City Council Speaker Corey Johnson.

“Tourism continues to be a centerpiece of New York City’s economy, and we’re fortunate to continue to welcome record visitors year after year,” said NYC & Company Chairman Emily K Rafferty. “Despite headwinds we faced last year, the City’s unparalleled vibrancy and energy endured, drawing record visitors once again. I want to thank NYC & Company’s board and the organization’s 2,000 private member businesses for continuing to power City’s travel and tourism industry and for catapulting us to an eight straight year of growth.”