NEW YORK CITY CHARTER REVISION COMMISSION APPROVES PROPOSALS RELATING TO CAMPAIGN FINANCE, COMMUNITY BOARDS AND CIVIC ENGAGEMENT

Ballot Questions Will Be on the General Election Ballot in November

Vote Follows Extensive Public Outreach and Input Across all Five Boroughs That Included Hearings, Expert Issue Forums, a Twitter Town Hall and a Tele-Town-Hall

  Following extensive public discussion across the five boroughs, the New York City Charter Revision Commission voted to approve three ballot questions for the voters to consider in November.  Features of the proposals include:

1 - Campaign Finance: Reduce contribution limits for all candidates for City elected offices, and increase public matching funds for candidates who participate in the public financing program. Contribution limits for participating candidates would be cut by more than 60%, while the matching rate on the “small dollar” portion of contributions to such candidates would increase from 6:1 to 8:1.

2 - Civic Engagement: Establish a Civic Engagement Commission whose mission includes expanding language access at polling sites, developing a citywide participatory budgeting program and supporting and partnering with community organizations in their civic engagement efforts.

3 - Community Boards: Establish term limits on Community Board members and standardize the appointment process to make the Boards more representative of their communities. Boards would also receive additional resources, particularly in urban planning.

Chair Cesar Perales said: “This Commission set out to identify proposals designed to improve civic life in New York City and, through an extensive and thoughtful process, that is just what we have done. The proposals approved by the Commission today will provide the voters with an opportunity to weigh in on changes that would impact several important aspects of civic life. I’d like to thank the members of the public who came to testify; good government groups and others who provided critical input; and the members and staff of the Commission who put in the hard work needed to do the job.”

Commission’s Final Report Approved

The Commission also today approved a Final Report discussing the proposed ballot questions. The Final Report’s Executive Summary is excerpted below:

CAMPAIGN FINANCE

The Commission proposes to amend the City’s campaign finance system in order to address persistent perceptions of corruption associated with large campaign contributions, boost incentives for campaigns to reach out to small donors, and create more opportunities for candidates to run diverse types of campaigns without the need to rely on large donors.

If adopted by the voters, these amendments would:

Significantly lower contribution limits for City elected offices. The maximum total amount a participating candidate (i.e., a candidate who chooses to participate in the City’s public financing program) may accept from a contributor per election cycle would be reduced from $5,100 to $2,000, for candidates for Mayor, Public Advocate, or Comptroller; from $3,950 to $1,500, for candidates for Borough President; and from $2,850 to $1,000, for candidates for the City Council. The maximum total contribution to a non-participating candidate (that is, a candidate who does not participate in the City’s public financing program) would be reduced from $5,100 to $3,500, for candidates for Mayor, Public Advocate, or Comptroller; from $3,950 to $2,500, for candidates for Borough President; and from $2,850 to $1,500, for candidates for the City Council.

Strengthen small dollar public matching for candidates who participate in the City’s public financing program. Currently, participating candidates, who meet certain qualifying thresholds, are eligible to receive public matching funds at a rate of $6 in public funds for every $1 in matchable contributions, up to the first $175 per contributor. The proposed Charter amendment would increase the match to $8 in public funds for every $1 in matchable private contributions, up to the first $250 per contributor to candidates for Citywide office and up to the first $175 per contributor to candidates for Borough President or City Council. The amendment would also ease a requirement that candidates for Mayor, Comptroller, or Public Advocate must meet to qualify for matching funds.

Increase the total amount of public matching funds available to such candidates. The proposed amendment would increase the cap on the total amount of public matching funds that a participating candidate may receive, per election, from 55% to 75% of the expenditure limit for the office being sought.

Allow such candidates to access public matching funds earlier in the election year. Under current law, … the vast majority of public funds are not disbursed until … early August of the election year, about five to six weeks before the primary. The proposed amendment would allow qualifying candidates to receive public matching funds [earlier] in the election year … and would remove monetary limits on the pre-August distribution of funds. However, in order to receive any disbursement of public funds prior to August of the election year, qualifying candidates would have to attest to the need for the funds and demonstrate that they have a viable opponent, or that they are running against an identified opponent in an open election.

All of these amendments would apply to participating candidates who choose to have the amendments apply to their campaigns, beginning with the 2021 primary election. The amendments would then apply to all candidates beginning in 2022.

CIVIC ENGAGEMENT

The Commission proposes establishing the Civic Engagement Commission, a new Charter entity dedicated to enhancing civic participation and strengthening democracy in New York City. The Civic Engagement Commission would consist of 15 members: eight appointed by the Mayor, including at least one member from the largest political party and at least one member from the second largest political party; two appointed by the Speaker of the City Council; and one appointed by each Borough President. The Mayor would designate a Chair from among his or her appointees, who would also serve as the Executive Director and be charged with the organization and staffing of the office.

The Civic Engagement Commission would be authorized and directed to implement a Citywide participatory budgeting program established by the Mayor, no later than the City Fiscal Year beginning July 1, 2020; establish a program for providing language interpreters at poll sites in New York City, to be implemented for the general election in 2020; support and partner with community-based organizations, institutions, and civic leaders in the public and private sectors in their civic engagement efforts; consider the language access needs of limited English proficient New Yorkers in developing and implementing its programs and services; and partner with City agencies to increase awareness of and access to City services, assist them in promoting civic engagement initiatives, and develop strategies to centralize public information about opportunities for civic engagement.

The Mayor would be authorized to transfer to the Commission, by executive order, any directly related powers and duties currently being performed by the Mayor’s Office or any department whose head is appointed by the Mayor.

Finally, the Civic Engagement Commission would be required to annually report on participatory budgeting, poll site language assistance, and any other information it deems relevant.

COMMUNITY BOARDS

The Commission proposes the following amendments to the Charter, in order to help make community boards more reflective of the communities they represent and more effective in that representation:

Term limits.  The Commission proposes term limits for community board members, who currently serve for two-year terms without limit, to create opportunities for new voices and leaders on all community boards. Members appointed or reappointed on or after April 1, 2019, would be limited to serving four consecutive two-year terms. However, members appointed or reappointed for a term commencing on April 1, 2020, could be reappointed for up to five consecutive two-year terms, in order to prevent a heavy turnover of community board membership in 2027 and 2028. Appointments made for terms commencing after April 1, 2020, would be subject to four consecutive two-year term limits. These term limits would be prospective only; terms served before April 1, 2019, or April 1, 2020, would not count toward the term limits that start on those dates. Members who have served for the maximum number of consecutive terms would not be barred from re-appointment after one full term out of office.

Appointment process. The Commission proposes several changes intended to bring more uniformity and transparency to the process of appointing members to community boards and to encourage diversity in appointments. The proposed amendments would require Borough Presidents to seek out persons of diverse backgrounds for appointment to community boards and make applications available on their websites. The proposal would also add new application and reporting requirements related to these appointments, including an annual report disclosing information about membership and the recruitment and selection process.

More resources. The Commission proposes requiring the Civic Engagement Commission, if the voters approve creating such an entity, to provide additional resources to community boards, including access to urban planning professionals and language access resources, in order to enable the boards to more effectively meet their Charter responsibilities.

About the Charter Commission’s Public Engagement Efforts

The 2018 Charter Revision Commission worked hard to ensure all New Yorkers had opportunities to speak directly to the Commission. Through this outreach, more than 1,000 ideas to revise the City Charter were submitted to the Commission for consideration.

In August, the Commission held “Charter Week,” a series of public hearings and public engagement events across all five boroughs. “Charter Week” built on the Commission’s extensive public outreach campaign to ensure all of New York City’s communities have access to the Charter revision process. Throughout the process, New Yorkers have submitted hundreds of ideas for changes to the Charter. Issue forums provided the Commission with more in-depth information related to focus areas.

All events were open to the public and live streamed over the internet. Language translation services, American Sign Language interpreters, and L.O.O.P devices were provided. All events were held at accessible spaces. Public comments have also been submitted at tabling events and additional community forums focused on youth, immigrant New Yorkers, and veterans.

The public was alerted to the Commission’s hearings through advertising in community and ethnic papers and messages through organizations with large distribution lists. Notice was given to every Community Board— as well as City, State, and Federal elected officials. Media advisories were issued to a list of more than 3,000 people at least twice per public hearing. Public notices for each hearing were published in the City Record and on the Commission’s website, nyc.gov/Charter<http://www.nyc.gov/Charter>. Notices were translated into several languages: Arabic, Bengali, Chinese (Mandarin, Cantonese), French, Haitian Creole, Korean, Polish, Russian, Spanish, and Urdu.

MAYOR DE BLASIO SIGNS SPEED CAMERAS LEGISLATION

Collaborative effort by the Mayor, Speaker Johnson, City Council and Governor Cuomo comes on the heels of inaction by leaders in the State Senate that jeopardized the safety of NYC children

  A day before 1.1 million children return to school, Mayor Bill de Blasio held a public hearing for and signed Intro. 1089, which preserves and expands the use of speed cameras near schools where speeding is prevalent. The law will immediately be enforced at 140 schools where speed cameras previously existed. The City will be expanding the use of speed cameras to an additional 150 schools, bringing the total number of protected schools to 290.

In the 2018 legislative session, a similar bill was introduced in the State Legislature, which had originally enacted the speed cameras program five years earlier. The bill, A7798C/S6046C, passed the Assembly overwhelmingly. However, the bill was never brought to the floor for a vote in the State Senate even though a bipartisan majority of State Senators co-sponsored the legislation. As a result, the Mayor, Speaker Corey Johnson, the City Council and Governor Andrew M. Cuomo worked together to find a legislative solution that will continue to keep our children and other pedestrians safe.

“The clock has been ticking, and the State Senate has refused to provide speed cameras to protect the lives of our school children,” said Mayor Bill de Blasio. “We refuse to let their politics endanger our children, so the City is stepping up to provide these life-saving tools just in time for when 1.1 million children return to school. I would like to thank Governor Cuomo, Speaker Johnson and the rest of the City Council for working with us to get our speed camera program back on in the nick of time.”

“We know that speed cameras save lives, and yet the Senate Republicans let this critical program expire and put our children in jeopardy. We will not stand idly by as the Senate Republicans play politics with the lives of our children. With the school year upon us, I took emergency measures to reinstate the speed camera program, and I thank Mayor de Blasio and Speaker Johnson for working together with the State to keep our children safe. This is an extraordinary action for an extraordinary situation, and it is not a substitute for the State Senate acting responsibly and passing the life-saving speed camera legislation,” said Governor Andrew M. Cuomo.

“School starts this week. The time for playing politics is well past over. I promised that we would do everything in our power to make sure kids were safe on the first day of school, and I am proud that we were able to make this happen today. I would like to thank Mayor de Blasio and Governor Cuomo for working with us on this life-saving legislation, as well as the Transportation Committee Chair Ydanis Rodriguez for his tireless commitment. And I remain ever grateful to the advocates who have shown us the definition of determination and strength time and time again this summer. Together we have made our streets safer in the name of 1.1 million school children,” said Council Speaker Corey Johnson, Sponsor of Intro. 1089.

“As 1.1 million students return to school for the start of a new year, I'm relieved that this life-saving safety measure will be in place in more school zones than ever before,” said Schools Chancellor Richard A. Carranza. “Nothing is more important than the safety of students and staff – thank you to Mayor de Blasio, Governor Cuomo and Speaker Johnson for taking action to protect our students.”

“Thanks to the Mayor, the City Council, with Speaker Johnson’s Leadership, and the Governor, New York’s schoolchildren will return to school tomorrow protected again by speed cameras,” said Department of Transportation Commissioner Polly Trottenberg. “We know the cameras have saved lives over four years of Vision Zero, and DOT looks forward to expanding them to more schools that need them.”

"Speed cameras play a critical role in keeping students, school staff and families safe and losing them would have been devastating. As we welcome students back this week, it is a major accomplishment that speed cameras will continue to calm traffic and save lives," said NYPD Chief of Transportation Thomas M. Chan.

Speed cameras installed in New York City school zones have reduced traffic injuries to pedestrians, motorists and cyclists by 17 percent, while reducing speeding by 63 percent on average. 81 percent of cars that received one speed camera violation do not receive a second.

Beginning immediately, vehicles caught exceeding the speed limit by more than 10 miles per hour by a camera in a school zone will be issued a $50 ticket.

Before this legislation passed the City Council, Governor Cuomo signed an Executive Order directing the New York State Department of Motor Vehicles to share car owner data with the City for enforcement purposes.

BP DIAZ PROVIDES NEARLY $10 MILLION TO BRONX SCHOOLS

  With the new school year set to begin, Bronx Borough President Ruben Diaz Jr. announced that his office has provided nearly $10 million in new capital funding to public schools in every corner of the borough.

“Our public schools are the lifeblood of our communities, and I am proud to support their growth through my capital budget each year,” said Bronx Borough President Ruben Diaz Jr. “As we work to provide our children with a quality education, we must provide them with the resources they need to have the best possible experience within their school buildings. This funding is critical to that mission.”

This year, Borough President Diaz provided $9,751,000 to 55 public school projects across The Bronx. This represents almost 42 percent of his entire capital budget allocation for FY2019, and is by far the highest amount given to any single group of projects.

Notable projects in this year’s allocation include $750,000 to upgrade the physical fitness facilities at the Lehman High School Educational Campus in Westchester Square, $200,000 to build an acoustic shell for the auditorium at the Harry S. Truman High School Campus in Co-op City, $100,000 to help build a “Family Welcome Center” for Community School District #11 and $75,000 to convert a classroom into a new “sensory library” at P.S. 17x in Mott Haven.

This year, Borough President Diaz also allocated funding to help upgrade technology offerings in dozens of Bronx schools. The complete list of Borough President Diaz’s budget allocation for public schools can be viewed at https://on.nyc.gov/2LK63o5.

“As we prepare our students for college and the workforce, it is incumbent on elected leaders to ensure they have the best opportunities possible within their school walls,” said Borough President Diaz. “This funding helps us do just that, and my office will continue to work with educators and parents to provide necessary resources for our borough’s children.”

Since taking office in 2009, Borough President Diaz has provided $69,997,000 in capital funding to 443 school projects, nearly a quarter of his office’s total capital allocations during the time period.

This year, Borough President Diaz’s office has provided $23,250,000 in total capital dollars across 81 projects. Since coming to office in 2009, Borough President Diaz has provided $271,896,000 in total capital funding to 806 projects.

NEWS FROM CONGRESSMAN ELIOT ENGEL

Engel Slams GOP Attempt to Destroy Protections for People with Pre-Existing Conditions

  As oral arguments begin in a federal District Court in Texas in the Republicans’ Texas v. United States lawsuit to strike down the Affordable Care Act’s protections for people with pre-existing conditions, Congressman Eliot L. Engel blasted Republicans’ assaults on people with pre-existing conditions in the Congress and the courts. 

The Republican lawsuit jeopardizes the health care of 130 million Americans, including 68 million women and girls, nationwide. In New York alone, the health care of 8,398,900 people, including 4,174,000 women and girls, could be dismantled if the lawsuit succeeds.

“First, Republicans voted to take away protections for pre-existing conditions; now they’re suing to destroy these protections in the courts,” Engel pointed out.

“Last year, New York families rose up to defeat the House Republican plan to end protections for Americans with pre-existing conditions like asthma, diabetes, cancer, mental illness or substance abuse and push tens of millions more off their affordable, quality coverage,” Engel said.  “But Republicans have chosen to ignore the will of the people once again, and are now pushing a lawsuit that would spell the end of basic protections that prevent insurers from denying coverage to Americans with pre-existing conditions or charging them more.  It is absolutely appalling that Republicans are working to make sure that innocent people, including babies and little children, could be deprived of affordable coverage for their entire lives.

“Americans’ health care will never be safe as long as Republicans control Washington. I am proud to stand with New York families to fight the vicious GOP attacks on families’ quality, affordable coverage, and to ensure that all have access to the health care that they need.”

Engel Questions Twitter CEO Dorsey Over Foreign Interference in Elections at Committee Hearing

  Congressman Eliot Engel, a top member on the House Energy and Commerce Committee, questioned Twitter CEO Jack Dorsey at a committee hearing today over the steps he and his company are taking to protect our democratic institutions from foreign interference.

House Republicans held the hearing as a political stunt to claim unfounded bias against Conservative voices on Twitter. But Engel used the opportunity to discuss real issues pressing the American public, specifically foreign meddling in U.S. elections.

 Engel focused his questions to Dorsey on Twitter’s recent efforts to take down a number of Russian and Iranian linked accounts, in addition to what the company was doing to prevent interference by foreign adversaries using bots or other fake accounts on the popular social media platform.

“Our country is facing a direct threat to our Democratic institutions,” Engel said. “We need to find ways to stop foreign adversaries like Russia and Iran from using American technology against us.”

“Can you commit to us,” Engel asked, “with any level of certainty the 2018 midterm elections in the United States will not be subject to interference by foreign adversaries using bots or other fake accounts on your platform?”

“We are committing to making our number one priority to help protect the integrity of the 2018 midterms, and especially the conversation around it,” Dorsey replied.

Video of the exchange can be found here. The full transcript of Congressman Engel’s exchange with Mr. Dorsey can be found below:

Congressman Engel: Thank you Mr. Chairman and Mr. Dorsey welcome. Our country is facing a direct threat to our democratic institutions, and we need to find ways to stop foreign adversaries, like Russia and Iran, from using American technology against us. Earlier this year Special Counsel Robert Mueller filed and indictment against the Russian Internet Research Agency, charging they created fake social media accounts, sometimes using American stolen identities, to sow discord and interfere with our 2016 election. I have a copy of that indictment with me here, and Mr. Chairman I would like to introduce it to the record.

Chairman Walden: Without objection.

Congressman Engel: Mr. Dorsey, Twitter recently took down a number of Russian and Iranian-linked accounts after they were tipped off by a cyber security firm. I am glad to see Twitter is taking action to protect us, but do you think we should be concerned that an outside cyber security firm detected fraudulent activity before you did?

Mr. Dorsey: I think it is really important that we have outsiders, and we have an open channel to them because they are always going to approach the data and work in a way that we may not see. We are going to do our best to capture everything we can, and be as proactive as we can, but we want to leave room for others to bring a different perspective that might look at what is happening on the platform than we do.

Congressman Engel: So how confident are you that Twitter can identify and remove all of the fake, and automated accounts linked to a foreign adversary on your platform?

Mr. Dorsey: We are getting more and more confident. I do want to state that this is not something has an end point, that reaches perfection. We are always going to stay ten steps ahead of the newest ways of attacking and newer vectors. We are getting more agile and better at identifying those, and that is showing in some of our results, which I talked about earlier. In terms of being able to identify 8 to 10 million suspicious accounts every single week, and then challenging them to see if they are humans or bots, or some sort of malicious automation.

Congressman Engel: I understand that Twitter is now requiring some suspicious accounts to respond to reCaptcha, to prove they are human accounts, and not bots. I was surprised to learn that you are not requiring users to do the same thing when they first sign up for Twitter. New accounts are authenticated using only an email address. Can you tell me why that is?

Mr. Dorsey: We actually do send accounts through a variety of authentication including sometimes reCaptcha. It really depends on the context and the information we have. We have thwarted over half a million accounts from even logging in in the first place because of that.

Congressman Engel: I understand that dealing with foreign adversaries can be difficult. Twitter may respond to one practice, only to find new tactics are being used to sow discord. Can you commit to us with any level of certainty the 2018 midterm elections in the United States will not be subject to interference by foreign adversaries using bots or other fake accounts on your platform?

Mr. Dorsey: We are committing to making our number one priority to help protect the integrity of the 2018 midterms, and especially the conversation around it.

Congressman Engel: Let me ask you this finally, are you aware of foreign adversaries using any different tactics on your platform to interfere with our 2018 midterm elections?

Mr. Dorsey: None that we have not communicated to the Senate Intelligence Committee, and any that we do find, we will be communicating and sharing with them.

Congressman Engel: Thank you very much. Thank you, Mr. Chairman.

100 PERCENT

100 PERCENT

By Robert Press

Parkchester 87th A.D. Debate

  Before I begin about the debate, I must relay what Ms. Jill Furillo the head of the NY Nurses Union said to me at an announcement that Nurse Karines Reyes was running for the 87th Assembly seat. Ms. Furillo told me of the problems that nurses are having in hospitals as to staffing, work loads, patient care, and other items related to nursing in hospitals. She then told me that Karines Reyes will go to Albany to push the agenda of the NY State Nurses Union. There were no other topics mentioned, just the agenda of the NY State Nurses Union to get more nurses hired, reducing work loads, and getting a fair contract from the hospitals. The Nurses union contract expires in December of this year. 

  This was evident as the small crowd who came to view the Parkchester Times 87th A.D. debate was mostly either nurses or people who were on the Reyes slate as they put on her t-shirts when they arrived. This was also evident by the questions from the audience with one of the first questions having to do with Montefiore Hospital where Nurse Reyes works. Then more questions about the Healthcare industry, and I noticed that candidate Reyes was not talking to the audience every time a healthcare question came up like candidates John Perez or Farah Despeignes, but instead Ms. Reyes was looking down as if she was reading her answer giving the impression that she knew what questions were going to be asked when it came to certain questions that would be handed in by her supporters. 

  Sergeant John Perez answered each question no matter what the topic was, and really took command of the debate when he said to a question on public safety that he had warned certain trouble makers in his neighborhood that he had better be next or he would come after thoise troublemakers after a young lady was shot and killed. He also stated that since then there has been much less trouble in his area of the district. 

  Farah Despeignes spoke mostly of how good her experience on a CEC was, but could not describe what her duties were. When a question of Mayoral Control of the public schools came up she said she was against Mayoral Control however as the other two candidates did. 

 What may have been the downfall for candidate Reyes came in what appeared to be a question from one of her supporters aimed at Sergeant John Perez who was in in Army uniform. The question asked why Army recruiting are needed Ms. Reyes appeared to say that the Army is not needed. Sergeant Perez said as a former recruiter he found the educational weaknesses of the public school system. 

  When ever it came to a question that was not about the healthcare industry Ms. Reyes seemed puzzled as she did not have her answer written down. To a question of education Ms. Reyes said that education is not a part of the Assembly, while both her opponents contradicted her saying that education is an important part of the Assembly. Ms. Reyes later in another question said that her children go to a charter school. 

  The hands down winner of this debate was Sergeant John Perez who answered all the questions as he was very knowledgeable on all different subjects that were asked. Ms. Reyes was a one topic candidate that being the nursing and healthcare area, and Ms. Despeignes also was a one topic candidate continuously bringing up that she was a member of CEC 8. 

  I had moderated the very successful Parkchester Times debate for the 14th Congressional District, and was told by more than one supporter of Ms. Reyes that they did not want me to be the moderator of this debate. One said to one person, was that because I found numerous instances of fraud on the Karines Reyes petition. It had to be that I testified in court that I had seen the Reyes petition on line one week before the first legal day to collect signatures. That I had taken a photo of a man collecting undated signatures and the page on June 15th, only to find the page given in with the date of June 25th, and not signed by a man, but by a woman. I then said even if Ms. Reyes was to win the U.S. Attorney's office would take over due to that and all the other fraud that was proven in court. 

This column is the opinion of the writer and not necessary that of this newspaper. If you have any comments about this column you can e-mail the writer at 100percentbronxnews@gmail.com . You may also want to check the writers blog at www.100percentbronx.blogspot.com . 

WHAT YOU NEED TO KNOW - WHAT IS GOING ON AT THE NEW YORK STATE BOARD OF ELECTIONS?

THIS IS WHAT WE POSTED ON AUGUST 26th 2018

AUG-24-18 07:26 PM FRIENDS OF KARINES REYES Page 1

NYS BOARD OF ELECTIONS FINANCIAL DISCLOSURE REPORT

Filer ID: A22224 2018 32 DAY PRE PRIMARY (A) SCHEDULE: F EXPENDITURES/PAYMENTS

07/14/18 AMANDA FARIAS 769 ARNOW AVENUE BRONX NY 10467 CHK1004 $11.00 REIMB AUG-13-18 03:24 PM

07/14/18 H & H HARDWARE 1171 CASTLE HILL AVENUE BRONX NY 10462 1004R $0.00 R-DET MEMO: $11 AUG-13-18 03:24 PM

THIS IS WHAT WE FOUND TODAY SEPTEMBER 1, 2018

SEP-01-18 07:49 PM FRIENDS OF KARINES REYES Page 1

NYS BOARD OF ELECTIONS FINANCIAL DISCLOSURE REPORT

Filer ID: A22224 2018 32 DAY PRE PRIMARY (A) SCHEDULE: F EXPENDITURES/PAYMENTS

07/14/18  AMANDA FARIAS  1500 THIERIOT AVENUE, APT. A5 BRONX  NY 10460

CHK1004  $11.00 REIMB              AUG-27-18 12:37 PM

WE ALSO FOUND THIS WHEN WE WENT TO THE ORIGINAL PAGE AT THE NEW YORK STATE BOARD OF ELECTIONS FOR KARINES REYES'S FINANCIAL STATEMENT.

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Vendors, Consultants, And School Administrator Charged In Wide-Ranging Scheme To Defraud Federal “E Rate” Subsidy Program

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney, Assistant Director in Charge, Federal Bureau of Investigation (the “FBI”), David L. Hunt, Inspector General of the Federal Communications Commission (the “FCC-OIG”), and Thomas P. Zugibe, the District Attorney for Rockland County, announced today the return of an Indictment charging SIMON GOLDBRENER, a/k/a “Simon Goldbrenner,” a/k/a “Shimon Goldbrenner,” PERETZ KLEIN, SUSAN KLEIN, a/k/a “Suri Klein,” BEN KLEIN, a/k/a “Benzion Klein,” a/k/a “Benzi Klein,” MOSHE SCHWARTZ, SHOLEM STEINBERG, and ARON MELBER, a/k/a “Aharon Melber,” with conspiracy to commit wire fraud and wire fraud charges in connection with the federal program known as “E‑rate,” which provides subsidies for affordable telecommunications equipment and related services to qualified schools This case has been assigned to United States District Judge Kenneth M. Karas. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, for years, these defendants stole money from the E‑rate program, billing the E-rate program for equipment and services which were not in fact provided. The defendants allegedly fraudulently obtained millions of dollars in E rate funds to which they were not entitled, and which should lawfully have been spent to help provide access to technology to educate underprivileged children. This indictment is important not only because fraudsters should be held to account for their crimes, but also because the next generation of students should have access to telecommunication services, internet access, and related equipment, irrespective of their means and in spite of the fact that people like the defendants seek to line their own pockets at the expense of underprivileged children.”

FBI Assistant Director in Charge William F. Sweeney said:  “Schools have to fight for every dollar these days to supply their students with the high-tech, expensive equipment and technology they need in this day and age to succeed in life. The suspects in this investigation allegedly used funding from a program designed to give underprivileged schools internet access to pad their own bank accounts.  To add insult to injury, school officials, who see the day-to-day struggle to even find money for pencils and paper, were allegedly involved in the scheme.  The FBI and our law enforcement partners will hold these criminals accountable, and stop others from defrauding not only the government and tax payers, but students who depend on these programs to get a better education.”

Rockland County District Attorney Thomas P. Zugibe said:  “These individuals concocted a scheme that not only defrauded taxpayers, but also deprived local students of access to affordable technology equipment and Internet service. In short, the defendants are accused of shamelessly stealing millions of federal dollars earmarked to broaden young minds. The Rockland County District Attorney's Office will continue to work collaboratively with the U.S. Attorney and FBI to root out fraud and abuse - especially misconduct that impacts children. Offenders must be dealt with swiftly to prevent further fraud of this magnitude from occurring.”

According to the allegations made in the Indictment[1]:

The E‑rate distributes funds to schools and libraries mostly serving economically disadvantaged children, so that those institutions can afford needed telecommunication services, internet access, and related equipment. Over 30,000 applications from schools and libraries seeking funds to serve economically disadvantaged children were received each year during the relevant time period; every year, requests for E‑rate funds have exceeded funds available. In order to obtain those funds, educational institutions certify that they are purchasing equipment and services from a private vendor; if approved, the program defrays the cost by up to 90%. The educational institution is supposed to enter into an open bidding process in order to select a vendor, and the educational institution and vendor submit a series of certifications that they comply with a number of requirements of the E‑rate program. A school applying for E‑rate funds may employ a consultant, but that consultant must be independent of the vendors competing to sell E‑rate funded equipment and services.

PERETZ KLEIN, SUSAN KLEIN, BEN KLEIN, and SHOLEM STEINBERG (collectively, the “Vendor Defendants”) held themselves out as vendors to schools participating in the E‑rate program. Corporations controlled by the Vendor Defendants requested over $35 million in E‑rate funds, and received over $14 million in E‑rate funds, from in or about 2010 to in or about 2016.

SIMON GOLDBRENER and MOSHE SCHWARTZ (collectively, the “Consultant Defendants”) held themselves out as consultants who assisted educational institutions that desired to participate in the E rate program. The Consultant Defendants, and individuals acting at their direction, completed and filed E‑rate documents that resulted in the payment of millions of dollars in E‑rate funds to the Vendor Defendants.

ARON MELBER is an official at a private religious school in Rockland County, New York. MELBER and his school have participated in the E‑rate program with certain of the Vendor Defendants and Consultant Defendants, and filed certifications purporting to have obtained authorized E‑rate funded equipment and services from Vendor Defendants selected through a fair and open bidding process. From in or about 2009 through in or about 2015, MELBER’s school received over one million dollars in E‑rate funds.

From at least 2009 up to and including 2016, certain private religious schools, including MELBER’s school, sought and received E‑rate funds for the purpose of paying the Vendor Defendants for equipment and services that the schools, the Vendor Defendants, and the Consultant Defendants falsely claimed the Vendor Defendants had provided to the schools.

However, the schools never received millions of dollars’ worth of these items and services. In other cases, the schools, Vendor Defendants, and Consultant Defendants requested hundreds of thousands of dollars of sophisticated technology that served no real purpose for the student population. For example, from 2009 through 2015, one day care center that served toddlers from the ages of 2 through 4 requested over $700,000—nearly $500,000 of which was ultimately funded—for equipment and services—including video conferencing and distance learning, a “media master system,” sophisticated telecommunications systems supporting at least 23 lines, and high-speed internet—from companies controlled by PERETZ KLEIN and SUSAN KLEIN, using the Consultant Defendants as their consultants. In still other instances the schools received equipment and services that fulfilled the functions for which the schools had requested E‑rate funds (such as providing the school with internet access), but the schools, Vendor Defendants, and Consultant Defendants materially overbilled the E‑rate program for the items provided, in order to enrich themselves at the expense of the underprivileged children the program was designed to serve.

As alleged, the defendants also perverted the fair and open bidding process required by the E‑rate program. The Consultant Defendants—who held themselves out in filings as independent consultants working for the schools, but, in truth, worked with and for the Vendor Defendants—and the Vendor Defendants presented the schools with forms to sign or certify, awarding E‑rate funded contracts to the Vendor Defendants. As a result of false and misleading E‑rate filings, the Vendor Defendants received millions of dollars in E‑rate funds for equipment and services that the Vendor Defendants did not in fact provide and which the schools did not use, and the Consultant Defendants accepted payments totaling hundreds of thousands of dollars from the Vendor Defendants, despite falsely presenting themselves as independent of the Vendor Defendants.

In return for their participation in the scheme to defraud the E‑rate program, certain schools and school officials received a variety of improper benefits from the Vendor Defendants, including: a percentage of the funds fraudulently obtained from E‑rate for equipment and services that were not in fact provided to the schools; free items paid for with E‑rate funds but not authorized by the program, such as cellphones for school employees’ personal use and alarm systems and security equipment (which the E‑rate program does not authorize) installed at the schools; and free services for which the E‑rate program authorizes partial reimbursement (such as internet access) but for which the Schools did not—contrary to their statements in filings—make any payment at all.

The defendants and the counts with which they are charged in the Superseding Indictment are set forth in the attached list.

Mr. Berman thanked the FBI, the FCC-OIG, and the Rockland County District Attorney’s Office for their outstanding work on the investigation. 

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.                                                                                                                                                                                                      United States v. Simon Goldbrener, et al. 

Defendant	Age	Residence	Charges and Maximum Penalties
Simon Goldbrener	55	Monsey, New York	Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (three counts): 20 years in prison per count
Peretz Klein	64	Spring Valley, New York	Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 20 years in prison
Susan Klein	57	Spring Valley, New York	Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 20 years in prison
Ben Klein	39	Monsey, New York	Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 20 years in prison
Moshe Schwartz	45	Monroe, New York	Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 20 years in prison
Sholem Steinberg	39	Monsey, New York	Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (two counts): 20 years in prison per count
Aron Melber	42	Monsey, New York	Conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 (one count): 20 years in prison Wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (one count): 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 below constitute only allegations, and every fact described should be treated as an allegation.

A.G. Underwood Announces Arrest Of WWJ Construction, Inc. Owner For Failure To Pay Workers Over $29K In Wages

WWJ Construction & Owner Shing Tung Wong Repeatedly Failed To Pay at Least Five Employees Thousands of Dollars In Back Wages

Since 2011, NY AG Has Recovered Over $30 Million in Stolen Wages for 21,000 Workers

  Attorney General Barbara D. Underwood announced the arrest and arraignment of Shing Tung Wong, 63, of Queens, owner of WWJ Construction, Inc. for allegedly failing to pay five construction workers for hourly work. Wong and WWJ Construction are charged with collectively stealing over $29,000 from their employees by repeatedly lying to the workers about eventually receiving full compensation.

“To repeatedly promise employees their rightfully owed wages and then never follow through with payment is exploitative – and illegal,” said Attorney General Underwood. “Employees deserve fair compensation for their labor, and my office will continue to combat wage theft across New York.” 

Since 2011, the New York Attorney General's office has recovered over $30 million in stolen wages for 21,000 workers across New York.

The felony complaint and statements made during today’s arraignment reveal that between January 1, 2014 and June 22, 2017, Wong allegedly personally hired five workers and promised a specific rate of pay ranging from $130 to $160 per day for five to six days of work each week. Wong ran the day-to-day operations of his construction company and arranged for most employees to meet at a predetermined location in Queens, where he or other workers would drive them all to various construction projects in the New York region – including Brooklyn, Bronx, Queens, Long Island, and Westchester. Workers performed carpentry, demolition, renovations, and electrical work, primarily for residential homes.

After the first few weeks of a worker’s employment, Wong allegedly stopped making weekly wage payments to workers. When workers asked about their earned wages, Wong repeatedly promised that payment was imminent and asked them to continue to work based on this promise. Workers waited for full compensation week after week, but Wong only allegedly paid them sporadically or not at all. Workers continually asked Wong for their wages, and Wong would allegedly promise them that payment was coming when he received payment from the client. Eventually, workers quit after not receiving their earned and legally owed wages. Even after workers quit, they still attempted to contact Wong to demand owed wages – but Wong allegedly ignored their requests for payment.

The six-count felony complaint filed in Queens County charges both defendants, Wong and WWJ Construction, with three counts of Grand Larceny in the Third Degree, a Class D felony; two counts of Grand Larceny in the Fourth Degree, a Class E felony; and one count of Scheme to Defraud in the First Degree, a Class E Felony.

The charges are merely accusations and the defendants are presumed innocent unless and until they are proven guilty in a court of law.