Owners Of Miami Export Business Sentenced For $100 Million Unlicensed Money Transmitting And International Money Laundering Scheme

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LUIS DIAZ JR. and LUIS JAVIER DIAZ were sentenced to eight months and four months in prison, respectively, for their roles in funneling more than $100 million through the U.S. financial system on behalf of various foreign businesses based predominantly in Venezuela.  They did so through their Miami-based import/export company, which, for nearly five years, the defendants also used to operate an unlicensed money transmitting business.  LUIS DIAZ JR. and LUIS JAVIER DIAZ were convicted of operating an unlicensed money transmitting business and international money laundering following a jury trial in November 2017 before U.S. District Judge William H. Pauley III, who also imposed today’s sentences.

U.S. Attorney Geoffrey S. Berman said:  “This father-and-son duo used their small for a large-scale illegal money transmission and money laundering operation.  By skirting the anti-money laundering safeguards required of licensed institutions, the defendants moved more than $100 million through U.S. financial institutions.  Today’s sentence is a sign of the seriousness of these crimes and our Office’s commitment to prosecute them.”

According to the Indictment, other filings in Manhattan federal court, and the evidence presented at trial:   

Between 2010 and 2016, LUIS DIAZ, JR., and LUIS JAVIER DIAZ used Miami Equipment and Export Company (the “Company”), a company they owned in Doral, Florida, to effect the transmission of at least $100 million on behalf of entities outside the United States, mostly located in Venezuela, to bank accounts in the United States and elsewhere, in exchange for a fee.  During this time, the Company was not registered with the State of Florida or the Financial Crimes Enforcement Network (FinCEN), a component of the United States Department of the Treasury, as required by both state and federal laws applicable to money transmitting businesses. 

Using unlicensed money transmitting businesses like the Company enables entities and individuals to move money into and through the U.S. financial system while avoiding licensed U.S. financial institutions that monitor for suspicious activity and report it to U.S. authorities, including through suspicious activity reports, or SARs.  Instead, by going through unlicensed entities like the Company, foreign businesses ensure that suspicious patterns of transmissions will not be detected and reported as potential money laundering activity or other financial crime.

Through their unlicensed money transmitting business, LUIS DIAZ JR. and LUIS JAVIER DIAZ enabled a number of foreign businesses to move money into and around the United States.  For instance, the defendants used the Company to transmit over $100 million into the United States on behalf of KCT, a large Venezuelan consortium of construction companies, and other entities located in Central and South America.  After they received these funds from KCT or other companies, the defendants received instructions concerning where to send the money as well as fake invoices and contracts purporting to set forth a valid business reason for these payments.  The fake invoices and contracts made the payments appear connected to legitimate business services being provided to the Company, such as consulting or engineering services.  In this manner, the defendants sent money on behalf of KCT and other companies to U.S. and foreign bank accounts of shell companies located around the world, Venezuelan government officials, KCT employees in Venezuela, and others who had no relationship with the defendants or the Company.  For all of these transmitting activities, the Company received over  $1 million in fees. 

In addition to the prison terms, LUIS DIAZ JR., 76, and LUIS JAVIER DIAZ, 51, both of Miami, Florida, were sentenced to two years of supervised release.  The amount of forfeiture will be determined at a later date.   

Mr. Berman praised the outstanding investigative work of HSI, DEA, the Englewood, New Jersey, Police Department, and the Border Enforcement Security Task Force.

A.G. Underwood Announces Settlement With Aldo Group Inc. To End Hiring Discrimination Based On Criminal RecordsA.G. Underwood Announces Settlement With Aldo Group Inc. To End Hiring Discrimination Based On Criminal Records

Settlement “Bans the Box” and Ensures Applicants with Criminal Histories Receive a Fair Chance in Hiring Process; Aldo Will Pay $120,000 to New York State

Aldo Settlement Marks Fifth Major Settlement with a National Retailer to Help Ensure Formerly Incarcerated Get Fair Treatment in Hiring Process

  Attorney General Barbara D. Underwood today announced a settlement with Aldo Group Inc., a global shoe and accessories retailer, to “Ban the Box” on initial employment applications in its New York City stores. The settlement will ensure that Aldo complies with the New York City law that prohibits employers from inquiring into criminal history on initial employment applications. Under the agreement, the company will also take steps to comply with New York State laws that prohibit discrimination against job applicants with criminal records.

“Everyone deserves a fair chance when being considered for employment,” said Attorney General Underwood. “Ban the Box helps protect New Yorkers from discrimination and ensure that a job applicant’s qualifications are the focus during the hiring process. My office will continue to enforce the law as we work to ensure all New Yorkers get the fair shot they deserve.”

New York State law requires employers to individually assess an applicant’s criminal record and determine its relevance before rejecting the applicant. Several municipalities across the state, including New York City, have enacted “Ban the Box” legislation which prohibits employers from inquiring into an applicant’s criminal history on initial employment applications. The laws also encourage employers to consider the applicant’s qualifications first and make individualized inquiries into any relevant criminal convictions later in the hiring process. The New York City “Ban the Box” law allows employers to inquire about an applicant’s criminal history after extending a conditional offer of employment.

Aldo has 53 stores across New York State, including 30 stores in New York City. The Attorney General’s investigation found that Aldo distributed employment applications inquiring about the criminal history of prospective applicants in its New York City stores – a violation of the New York City Fair Chance Act. The company did not have consistent policies or procedures specifying whether and how managerial employees should evaluate the criminal records of applicants and employees. With no training provided on how to evaluate criminal records, store-level managerial employees believed they had wide discretion in how they considered the criminal records of applicants and were given little guidance on how to apply that discretion. The investigation also revealed that several managerial employees disseminated information about its hiring policies that indicated any applicant with a felony conviction would be barred from employment. 

Aldo has agreed to ensure that employment applications that inquire about applicants’ criminal history will not be made available at their stores. The company also agreed to create new policies and training to ensure that its stores across the state comply with New York State law by individually assessing applicants’ criminal histories; those policies and training must be reported to the Attorney General’s office. Aldo has also agreed to pay New York State $120,000 in penalties and costs.

Aldo’s commitment to “Ban the Box” on initial employment applications and compliance with state anti-discrimination laws builds off of the longstanding initiative in the Attorney General’s Civil Rights Bureau to enforce local, state, and federal laws ensuring that formerly incarcerated individuals receive fair treatment in the employment process. The Civil Rights Bureau has previously entered into agreements with Marshalls, Big Lots, Party City, and Bed Bath & Beyond to ensure that the companies individually consider the criminal records of prospective applicants.

“Everyone deserves a fair chance, and the justice system should not be misused to perpetually punish people for their previous mistakes,” said Council member Jumaane Williams. “I became a Council Member to try and break down systemic barriers and enact transformational change. When we passed the Fair Chance Act in New York City, we did so not only to protect applicants from being unfairly rejected, but to provide businesses with a broader range of qualified candidates to select from. I thank the Attorney General’s office for recognizing the importance of this issue and aggressively fighting to ensure that all New Yorkers have an equal opportunity to compete for jobs. I hope that this decisive action serves as a message to any other company that would try to deny that fundamental right to a fair chance.”  

The Civil Rights Bureau of the Attorney General’s Office is committed to promoting access to equal employment opportunities and combatting discrimination for all New Yorkers. To file a civil rights complaint, contact the office at 212-416-8250 or civil.rights@ag.ny.gov or visit ag.ny.gov. 

News From Congressman Eliot Engel

Engel Cosponsors Keep Families Together Act to End Family Separation at the Border

  Congressman Eliot Engel, who today called for the resignation of Department of Homeland Security Secretary Kirstjen Nielsen, is an original cosponsor of H.R. 6135, the Keep Families Together Act, legislation just introduced to prohibit the Trump Administration from separating families at the border.

The Keep Families Together Act would ban the Department of Homeland Security from separating children from their parents, restrict prosecution of asylum seekers, increase child welfare training for border agents, ensure transparency, and reunite separated families. The President could end this horrific policy of family separation at any time, but he refuses to do so and has instead falsely blamed Congress for the practice.

“Our country has long been known as a beacon of freedom and opportunity to those seeking a better life. The Trump Administration’s family separation policy is a betrayal of our American values,” Engel said. “It is unconscionable that President Trump is using the lives of vulnerable parents and children as a bargaining chip to demand his anti-immigrant policies and border wall. I refuse to stand by and allow young children to be torn from their parents’ arms and sent to detention centers and tent cities in the desert. I’m proud to support this critical legislation to end President Trump’s cruel and inhumane family separation policy.”

News From Congressman Joseph Crowley

Congressman Crowley, NYC Councilman Dromm, NYC Transit Authority President Andy Byford, MTA Announce Millions of Dollars in Long-Awaited Repairs to the 7-Line Train

  Congressman Joe Crowley, Chairman of the House Democratic Caucus, was joined by NYC Transit Authority President Andy Byford, and NYC Councilman Daniel Dromm  to announce a $45 million contract to begin the comprehensive repair and re-painting of the elevated 7-line train.

For years, Congressman Crowley, local officials, and Queens families have demanded much-needed repairs to the 101-year-old train line, particularly to remediate lead paint peeling from the tracks. Last month, Congressman Crowley secured a firm commitment from the MTA to comprehensively repair the 7-line on an expedited timeline. The project is expected to begin in July.

As part of his Better Deal for Queens and the Bronx plan, Congressman Crowley pledged to work with the MTA to address the lead paint associated with the 7-line and make any repairs necessary to ensure the train runs as efficiently as possible. Congressman Crowley was able to fulfill this goal in collaboration with New York City Councilmen Dromm and Francisco Moya (D-East Elmhurst, Elmhurst, Jackson Heights, and Corona), additional members of the New York City Council, New York State Assembly, and New York State Senate representing Queens, Queens Borough President Melinda Katz, Members of Community Boards 3 and 4, the District Council 9 International Union of Painters and Allied Trades, and families and community leaders residing in the borough.  

“This is an important moment for Queens residents, like myself, who have been dismayed by the quality of subway service in our borough,” said Congressman Crowley. “Throughout my life, I have relied on the 7-line to travel across the city, and today, we are embarking on an exciting new era for public transportation in Queens. I deeply appreciate President Byford taking the time to join us today and for working swiftly with his team to begin the process of repairing and re-painting the 7-line. This project will not only bring improved service to Queens, but will also remediate lead paint associated with the train line.”  

"Finally the #7 train is getting re-painted," said NYC Councilman Daniel Dromm. "This is welcome news for the thousands of people who live near the #7-line trestle and ride the train daily. For many years, I have worked diligently to hold the MTA accountable for the deteriorated condition of the #7-line trestle. I rallied with local residents and business owners last year to announce a lawsuit to force the MTA to repaint the trestle. Together we will carefully monitor the progress of this project and will make every effort to ensure that it stays on track. I am pleased to work alongside Congressman Crowley to move this important issue forward."

Congressman Crowley, NYC Councilman Van Bramer Announce $6.5 Million for Woodside Library

  Congressman Joe Crowley, Chairman of the House Democratic Caucus, joined NYC Councilman Jimmy Van Bramer (D-Sunnyside, Woodside, Long Island City, Astoria, Dutch Kills) and Queens Library President & CEO Dennis Walcott yesterday to announce millions of dollars in renovations to the Woodside Community Library.

“Our city’s libraries are vital to enriching our communities, but many of our branches do not receive the funding they need to help our children and students grow,” said Congressman Crowley. “The millions of dollars in funding we are announcing today will help ensure Queens library continue to instill compassion, wisdom, and open-mindedness in our children for years to come. This is one of most important investments we can make for our community.”

“Council Member Van Bramer and Congressman Crowley have made an excellent investment not only in this branch and our customers, but in the entire community, and we are grateful for their continued steadfast support,” said Queens Library President and CEO Dennis M. Walcott. “We look forward to working with our government partners to deliver an inspiring space where the public can learn, discover and grow.”

Chairman Crowley Statement on House Republican Budget

House Democratic Caucus Chairman Joe Crowley, released the following statement on the release of the House Republican budget:

“Six months after President Trump and Republicans gave lavish tax breaks to special interests and the wealthiest one percent, House Republicans have now released a budget that will inflict even more damage on middle-class families. From gutting Medicaid and Medicare and repealing the Affordable Care Act to eliminating protections for those with pre-existing health conditions and slashing anti-poverty programs, retirement security, and education, Republicans are once again making American families pay the price.

“We need a budget that invests in America and the American people. A budget that rebuilds our crumbling infrastructure, makes college more affordable, ensures seniors have reliable health care and retirement security, and gives working families a real shot. This is the kind of budget Americans deserve and this is the kind of budget Democrats will fight for.”

2nd Annual Mott Haven H.E.ARTS Festival

MAIN STAGE: Hip Hop Legends: Grand Wizard Theodore  (Inventor of Scratching!), DJ Phase, T Ski Valley, Voice  of Harlem, Happy Original Pioneer | M.A.K.U.  Soundsystem | Mazarte Dance Company |  UpBeat NYC Latin Jazz Big Band RSVP The 2nd Annual Mott Haven H.E.ARTS Festival will bring  together a wide array of local South Bronx residents, artists,  musicians, grassroots organizations and businesses to  celebrate Mott Haven as a uniquely vibrant and diverse  community. The event's focus will be on the conversion  of the former Lincoln Detox Center into a center for health,  education and the arts that will serve as an anchor for our  families and local organizations who are fighting systemic  injustice and displacement (including the unveiling of our  recently completed feasibility report!) Participating Organizations: Birthing Project | Boogie Down  Books | Bronx Filmmakers Collective | BxArts Factory |  Community Connections for Youth | ID Studio Theater |  MLK SUNY ATTAIN | Mott Haven-Port Morris Community  Land Stewards | National Acupuncture Detoxification  Association | NY Dept of Youth and Community Development  | Radical Health | South Bronx Unite |Taller Experimental  del Arte | UpBeat NYC FOOD Traditional cuisine for sale from local families and vendors ARTS, FILMMAKERS, CRAFTS & APPAREL Local artisans, filmmakers and vendors will offer their  goods for sale ACTIVITIES FOR KIDS Arts projects, children's books, face painting and bouncy house  HEALTH & EDUCATION ACTIVITIES Meet and greet education and health professionals with  discussions/services related to community building,  alternatives to incarceration, acupuncture, pregnancy,  birthing and much more  FEASIBILITY REPORT UNVEILING H.E.ARTS Center design and feasibility report and model  unveiling, as well as information about our local community  land trust, the Mott Haven-Port Morris Community Land  Stewards More about the H.E.ARTS Community Center- Following multiple community envisioning sessions and  several large-scale events and festivals, the Mott Haven- Port Morris Community Land Stewards (community land  trust) aims to acquire and renovate the city-owned, vacant,  28,000 square foot former Lincoln Detox Center into a home  for more than a dozen health, education and arts  organizations in the Mott Haven-Port Morris community. Other Actions/Events Taking Place

Joshua Adam Schulte Charged With The Unauthorized Disclosure Of Classified Information And Other Offenses

Relating To The Theft Of Classified Material From The Central Intelligence Agency

  Geoffrey S. Berman, United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, 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 JOSHUA ADAM SCHULTE was charged in a 13-count Superseding Indictment (the “Indictment”) in connection with his alleged theft of classified national defense information from the Central Intelligence Agency (“CIA”) and the transmission of that material to an organization that purports to publicly disseminate classified, sensitive, and confidential information (“Organization-1”).  The Indictment also charges SCHULTE with the receipt, possession, and transportation of child pornography, as well as criminal copyright infringement.  SCHULTE, who is presently detained on the child pornography charges, will be arraigned by U.S. District Judge Paul A. Crotty.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Joshua Schulte, a former employee of the CIA, allegedly used his access at the agency to transmit classified material to an outside organization.  During the course of this investigation, federal agents also discovered alleged child pornography in Schulte’s New York City residence.  We and our law enforcement partners are committed to protecting national security information and ensuring that those trusted to handle it honor their important responsibilities.  Unlawful disclosure of classified intelligence can pose a grave threat to our national security, potentially endangering the safety of Americans.”

Assistant Attorney General John C. Demers said:  “The National Security Division, alongside our partners in the Intelligence Community, will not waver in our commitment to pursue and hold accountable these officials, and I commend all those at the Department of Justice and the FBI who have worked diligently to investigate this matter and bring these charges.”

Assistant Director-in-Charge William F. Sweeney, Jr. said:  “As alleged, Schulte utterly betrayed this nation and downright violated his victims. As an employee of the CIA, Schulte took an oath to protect this country, but he blatantly endangered it by the transmission of Classified Information. To further endanger those around him, Schulte allegedly received, possessed, and transmitted thousands of child pornographic photos and videos. In an effort to protect this nation against crimes such as these, the FBI's Counterintelligence Division in New York will continue to keep our mission at the forefront of our investigations in protecting the American public."

According to the Indictment, other court filings, and statements made during court proceedings:[1]

On March 7, 2017, Organization-1 released on the Internet classified national defense material belonging to the CIA (the “Classified Information”).  In 2016, SCHULTE, who was then employed by the CIA, stole the Classified Information from a computer network at the CIA and later transmitted it to Organization-1.  SCHULTE also intentionally caused damage without authorization to a CIA computer system by granting himself unauthorized access to the system, deleting records of his activities, and denying others access to the system.  SCHULTE subsequently made material false statements to FBI agents concerning his conduct at the CIA.         

SCHULTE was previously arrested on August 24, 2017, on charges relating to his receipt, possession, and transportation of approximately ten thousand images and videos of child pornography.  In March 2017, members of the FBI had searched SCHULTE’s residence in New York, New York, pursuant to a search warrant and recovered, among other things, multiple computers, servers, and other portable electronic storage devices, including Schulte’s personal desktop computer (the “Personal Computer”).  On the Personal Computer, FBI agents found an encrypted container (the “Encrypted Container”), which held over 10,000 images and videos of child pornography.  The Encrypted Container with the child pornography files was identified by FBI computer scientists beneath three layers of password protection on the Personal Computer.  Each layer, including the Encrypted Container, was unlocked using passwords previously used by SCHULTE on one of his cellphones.  Moreover, FBI agents identified Internet chat logs in which SCHULTE and others discussed their receipt and distribution of child pornography.  FBI agents also identified a series of Google searches conducted by SCHULTE in which he searched the Internet for child pornography.

SCHULTE, 29, of New York, New York, is charged with one count each of (i) illegal gathering of national defense information, (ii) illegal transmission of lawfully possessed national defense information, (iii) illegal transmission of unlawfully possessed national defense information, (iv) unauthorized access to a computer to obtain classified information, (v) theft of Government property, (vi) unauthorized access of a computer to obtain information from a Department or Agency of the United States, (vii) causing transmission of a harmful computer program, information, code, or command, (viii) making material false statements to representatives of the FBI, (ix) obstruction of justice, (x) receipt of child pornography, (xi) possession of child pornography, (xii) transportation of child pornography, and (xiii) copyright infringement.  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 praised the outstanding investigative efforts of the FBI. 

The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Sidhardha Kamaraju and Matthew Laroche are in charge of the prosecution, with assistance from Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section.

Count Number	Description	Maximum Penalty
One	Illegal Gathering of National Defense Information 18 U.S.C. §§ 793(b) and 2	10 years in prison
Two	Illegal Transmission of Lawfully Possessed National Defense Information 18 U.S.C. §§ 793(d) and 2	10 years in prison
Three	Illegal Transmission of Unlawfully Possessed National Defense Information 18 U.S.C. §§ 793(e) and 2	10 years in prison
Four	Unauthorized Access to a Computer To Obtain Classified Information 18 U.S.C. §§ 1030(a)(1) and 2	10 years in prison
Five	Theft of Government Property 18 U.S.C. §§ 641 and 2	10 years in prison
Six	Unauthorized Access of a Computer to Obtain Information from a Department or Agency of the United States 18 U.S.C. §§ 1030(a)(2) and 2	5 years in prison
Seven	Causing Transmission of a Harmful Computer Program, Information, Code, or Command 18 U.S.C. §§ 1030(a)(5) and 2	10 years in prison
Eight	Making False Statements 18 U.S.C. §§ 1001 and 2	5 years in prison
Nine	Obstruction of Justice 18 U.S.C. §§ 1503 and 2	10 years in prison
Ten	Receipt of Child Pornography 18 U.S.C. §§ 2252A(a)(2)(B), (b)(1), and 2	20 years in prison
Eleven	Possession of Child Pornography 18 U.S.C. §§ 2252A(a)(5)(B), (b)(2), and 2	10 years in prison
Twelve	Transportation of Child Pornography 18 U.S.C. § 2252A(a)(1)	20 years in prison
Thirteen	Criminal Copyright Infringement 17 U.S.C. § 506(a)(1)(A) and 18 U.S.C. § 2319(b)(1)	5 years in prison

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

Stringer Report Finds Students Too Often Have No Place to Turn Amid Rising Bullying in Schools

In 2017, 82 percent of students surveyed in grades 6-12 said there was bullying in their schools, an all-time high, up from 65 percent in 2012

Only one guidance counselor per 375 students and one social worker per 612 students in public schools

In 2016-17 school year, 725 schools serving students across all grades – 45 percent of all schools – had no social worker at all

  New York City Comptroller Scott M. Stringer released a new report outlining the stark state of mental health and social services in our public schools, and data that illustrates a rise in bullying among City students. Comptroller Stringer’s new report, “Safe and Supportive Schools: A Plan to Improve School Climate and Safety in NYC,” presents a review of current data related to school safety – including a jump in bullying, and an alarming level of arrests and handcuffing of students – and from that data draws a series of holistic recommendations on how to make City schools healthier and more secure. Separately, a new audit revealed operational failures in how the City reports violent incidents in schools to the State and evidence of underreporting of these incidents in our audit sample. Based on the findings of the report and the audit, Comptroller Stringer is calling for increased social supports in City schools, an expansion of social-emotional learning advisories to all schools, and universal school-based mental health services.

“This report makes clear that our kids are facing greater social challenges than ever at school, and the City must properly identify the magnitude of the problem and provide additional resources to bring down the conflict and bullying that’s become pervasive. Our young people are yearning for mental health support – we heard it straight from them, and it’s time we address the problem head on,” said New York City Comptroller Scott M. Stringer. “Schools should be sanctuaries where every child feels safe and supported, but all too often, when students need help, they don’t receive the care they need. We need to improve our school climates with a significant, system-wide investment in order to unleash the potential of every child in this city. That’s why I’m calling for the City to prioritize supporting all students through small group advisories, a proven way to ensure each student has a trusted adult in school they can turn to. The City should also expand universal school-based mental health services. If we’re going to give every child the care and support they deserve, we have to do it right.”

Increased and expanded social services are critical to address the growing prevalence of violence, bullying and punitive action uncovered by the policy report:

• In 2017, 82 percent of students reported that their peers harass, bully, or intimidate others in their schools, up from 65 percent in 2012, based on student responses to the most recent NYC School Survey.
• Similarly, roughly one in five students say they personally do not feel safe in or around their school.
• During the 2016-17 school year, students were handcuffed in over 1,800 incidents – including 120 cases involving children age 12 and under. While recently released data from the first quarter indicates improvement, Black and Latino students continue to be disproportionately impacted.
• In the first half of the 2017-18 school year, school suspensions increased by 20 percent following several years of decline.
• Meanwhile, a separate audit by the Comptroller’s Office found DOE failed to record some 21 percent of the sampled “violent or disruptive” incidents in school year 2015-2016 in its incident database, based on a sample of 10 middle and high schools. As a result, these incidents were not considered for inclusion in mandatory reports to the State.
• The separate audit also found that DOE did not consistently track the necessary disciplinary and referral action information needed to properly assess whether certain incidents should be reported to the State.

Research shows that punitive actions like suspensions have severe impacts on students’ academic outcomes and significantly increase the likelihood that a student will not complete high school or will become involved in the criminal justice system. The City’s ThriveNYC program provides a laudible baseline of mental health support for schools, however there remains an acute need for more mental health professionals in schools to help resolve conflicts and support students. As it is, city schools are vastly under-resourced. Our report found:

• There is only one guidance counselor per 375 students and only one social worker per 612 students in our public school system.
• In the 2016-17 school year, 725 schools serving students across all grades – 45 percent of all schools – had no social worker at all.
• According to student surveys, 17 percent of students feel there is no adult in their school in whom they can confide.

In response, Comptroller Stringer’s report calls for expanding small group advisories, increasing in-school social workers and other critical staff as well as mental health services to accommodate students’ needs.

The Comptroller’s Office simultaneously released an audit of the Department of Education. Under state law, the DOE is required to report certain “violent and disruptive incidents” in schools to the state’s Violent and Disruptive Incident Report (VADIR) system, including minor altercations, episodes of intimidation or harassment, as well as assault, weapons possession and sexual offenses. The system is intended to capture data on the initial disruptive or violent incidents, and the school’s follow-up procedure, which may include suspension, removal, or referral to guidance counselors, among other actions taken.

The audit found clear breakdowns in communication in the reporting and tracking of incidents and actions taken. Specifically, the audit found that across all City public schools, 1,553 schools reported a total of 41,559 incidents – ranging from 1 to 271 incidents per school. 44 schools reported no incidents. The audit also includes a deeper analysis based on a sample of 10 schools – key findings reveal a lack of reporting and conflicting records from School Safety Records, the City’s tracking system and the state’s VADIR tracking system. Significantly, DOE had no records of corrective action in 83 percent of required student behavioral incidents, including nearly 400 incidents that were classified as serious infractions.

Comptroller Stringer’s report lays out a series of comprehensive recommendations for improving school safety and climate and reducing the high economic and social cost to the City of current disciplinary practices. Recommendations include:

• Expand small social-emotional learning advisories in all schools, which are known to be a highly effective way to support students’ social-emotional learning and to ensure that each student has at least one adult in school they can turn to in times of need. Students who have a trusted group of peers and at least one adult to confide in have greater academic outcomes as well as more positive social attitudes and behaviors.
• Expand the ranks of in-school social workers and other mental health professionals, who are best equipped to respond to emotional or behavioral crises.
• Clarify the role of School Safety Agents and update the Memorandum of Understanding that governs DOE’s relationship with NYPD to clearly outline appropriate interventions for specific scenarios involving student misconduct.
• Fund a Comprehensive Mental Health support continuum to provide direct service and targeted interventions for the highest need students and schools including hospital-based mental health partnerships, mobile response teams, and school-based mental health care.
• Establish and oversee system-wide trauma-informed schools to tackle problems consistent with the chronic stresses of poverty. As trauma can severely disrupt a student’s academic potential, the DOE should support educators in taking a trauma-informed approach to students, to recognize signs of trauma and understand how to positively respond in a non-violent and respectful way to students. Results from the Positive Learning Collaborative pilot indicate measurable school climate improvements in schools that provide intensive training and support to school staff to prevent and de-escalate crisis situations.
• Expand and baseline funding to implement restorative practices system-wide, which requires investment for embedded school-based capacity-building and implementation.

MAYOR DE BLASIO, COMMISSIONER O’NEILL UNVEIL NEW POLICY TO REDUCE UNNECESSARY MARIJUANA ARRESTS

By September 1^st, the majority of New Yorkers found smoking in public to receive criminal summonses which will help reduce marijuana arrests by about 10,000 per year

  Mayor Bill de Blasio and Police Commissioner James P. O’Neill today announced a new policy to reduce unnecessary marijuana arrests. By September 1^st, 2018, the majority of New Yorkers found smoking marijuana in public will face criminal summonses instead of arrest– continuing a significant shift in overall marijuana enforcement to better balance fairness with public safety and quality of life concerns. The change is the result of the final report and recommendations produced by the 30-Day Working Group on Marijuana Enforcement that convened in May, and according to NYPD projections, will likely reduce overall marijuana arrests in New York City by about 10,000 per year based on 2017 arrest records and patterns. 

New Yorkers will still be subject to arrest if they are on probation or parole, if they have existing criminal warrants, don’t have identification, have a recent documented history of violence, or their smoking poses an immediate public safety risk—such as while driving a car. The new policy builds on previous efforts by Mayor de Blasio and the NYPD to strike a balance on marijuana enforcement between fairness and safety. In 2017, the NYPD made 64 percent fewer arrests for possession from 2010, going from 53,000 to 19,000 arrests. Of these arrests, 50,000 were for smoking in public in 2010 compared to less than 17,000 in 2017.

“Nobody’s destiny should hinge on a minor non-violent offense,” said Mayor Bill de Blasio. “Neighborhood policing has helped to bring officers and community together, but we still have more work to do to right the wrongs in the criminal justice system. This new policy will help reduce unnecessary arrests, while making our City fairer and safer.”

“We know that it is not productive to arrest people who have no prior criminal history,” said Police Commissioner James O’Neill. “In fact, it hampers our efforts to build trust and strengthen relationships with the people we serve, and it does nothing to further the NYPD’s mission of ridding our streets of those responsible for violence and disorder. Issuing summonses for marijuana offenses that do not directly affect public safety will allow our officers to do their jobs effectively and safely, and in a way that always promotes public safety and quality of life for all New Yorkers.”

Elizabeth Glazer, Director of the Mayor’s Office of Criminal Justice, said. “Today is a significant step forward in our work to make New York the fairest city in the country. We have record low crime rates at the same time we have the lowest incarceration rate of any large city in the country. And while it is extremely rare for people to go to jail for possessing marijuana, any touch from the criminal justice system should be proportionate to the activity involved and the shared goal of public safety. This new policy will lighten the touch and continue our work with New Yorkers to keep this the safest and fairest city.”

The policy change was the product of the 30-Day Marijuana Working Group, initiated by Mayor de Blasio and conducted by the NYPD.  The overarching objectives of the Working Group were to identify why differences in arrest rates exist; ensure that NYPD enforcement practices are consistent with the values of trust and community engagement at the foundation of Neighborhood Policing; determine ways to reduce arrests for marijuana offenses if and when those arrests do not impact public safety or reduce quality of life; and review overall marijuana enforcement to ensure it is implemented fairly while also promoting public safety and quality of life for all New Yorkers.

The Working Group gathered insight, analysis and input from the five district attorneys, public defenders, the speaker of the City Council, community groups, scholars, drug policy advocates, tenant organizations, faith leaders, Business Improvement Districts, national organizations, community councils, police unions, and young adults impacted by these policies. 

The Working Group found that most New Yorkers believe public smoking of marijuana was a public nuisance that should be curtailed; however, the consensus favored summonses in lieu of arrest if public safety and quality of life were unaffected. Currently, about 40 percent of people arrested for smoking marijuana had no prior arrest history. The change in policy has the potential to help thousands of younger New Yorkers with no record avoid the burden of an arrest.

In 2017, New York City received nearly 52,000 complaints from the public about the public smoking of marijuana, and addressing these complaints is important in order to protect the livability of City neighborhoods.  Even in those states and jurisdictions where recreational use is now legal it remains illegal to smoke marijuana in public. While New York State law makes possession and smoking of small amounts of marijuana a misdemeanor, New York City police officers have discretion on how to exercise their enforcement powers.

Patrol Officers will receive guidance on how to implement this new policy thorough the summer. In the future, if unusually high arrest rates occur, the Police Department should conduct additional analysis to ensure that the enforcement levels are appropriate. Tracking arrest trends is an important aspect of these recommendations. The City will also issue quarterly reports on arrests and criminal summonses for marijuana possession by race and borough.

Beyond the enforcement policy announced today, New York City is also convening a separate Mayoral Task Force to determine the appropriate regulatory framework and identify the public safety, health and financial consequences should the State move forward with legalization. A report is expected by 2019. The work will be coordinated by the Mayor’s Office of Criminal Justice and composition will include the Department of Health and Mental Hygiene, the NYPD, the Law Department, Department of Education and others.

Brooklyn District Attorney Eric Gonzalez said, "I applaud the Mayor and the Police Commissioner for adopting a policy to stop making arrests in the vast majority of marijuana cases, which is the approach I have been calling for and a step in the right direction. As we take this important step, we cannot forget those who have convictions on their record based on this conduct that we no longer prosecute, and so my Office will be vacating and sealing past marijuana convictions for thousands of people in Brooklyn. We must bring a sense of fairness to the past at the same time that we implement these new enforcement policies in the present. "