A.G. Underwood Announces Guilty Plea Of G. Steven Pigeon

Attorney and Political Consultant G. Steven Pigeon Pleads Guilty to Bribery

  Attorney General Barbara D. Underwood announced the guilty plea of G. Steven Pigeon, 58, an attorney and political consultant, for bribing former State Supreme Court Justice John A. Michalek. Pigeon entered the guilty plea today before Hon. Donald F. Cerio, Jr., in Erie County Supreme Court to Bribery in the Third Degree in violation of Penal Law section 200.00, a class D felony. 

“As we detailed, Steve Pigeon orchestrated a brazen, multiyear scheme to bribe a sitting judge – demonstrating flagrant contempt for the rule of law and the interests of New Yorkers. Now, he’s being brought to justice,” said Attorney General Underwood. “We have zero tolerance for public corruption. New Yorkers deserve to be able to trust the integrity of their officials – and my office will continue to do everything in our power to hold accountable those who violate that trust.”

From February 2012 through April 2015, Pigeon and Michalek exchanged emails and text messages, which reflected that Pigeon offered, conferred, or agreed to confer benefits to Michalek upon an agreement or understanding that Michalek’s official actions would be influenced. The communication between them shows that Pigeon offered Michalek assistance in obtaining employment and appointments to positions for two of his family members and in helping Michalek obtain a judicial appointment to the Supreme Court, Appellate Division, Fourth Judicial Department. Pigeon also gave Michalek and his family member two free tickets to box seats for two separate Buffalo Sabres hockey games and gave one of Michalek’s family members a free ticket to a $1,000 political fundraiser. 

During the same time, Pigeon engaged in ex parte communications with Michalek concerning multiple lawsuits pending before Michalek in which Pigeon had an interest. At times, those communications involved Pigeon receiving from Michalek non-public information about the matters. Pigeon was able to provide ex parte input and advice to Michalek on these cases. Michalek selected an attorney of Pigeon’s choosing to serve as a Receiver, when that person was not on a court issued list of qualified Receivers. In order to appoint that person, Michalek filed a document with the Office of Court Administration where he falsely claimed that he required that attorney’s expertise in handling that receivership. 

On June 29, 2016, Michalek pleaded guilty in connection with the same scheme, for receiving bribes from Pigeon and filing a false document with the New York State Office of Court Administration. He is awaiting sentencing. Following his conviction, Michalek resigned from the judiciary and was disbarred.

Today's plea is also in satisfaction of the December 2017 indictment against Pigeon for crimes under the New York State Election Law relating to illegal campaign coordination during the 2013 Democratic primary races of two candidates for the Erie County Legislature. The Attorney General's prosecution of Kristy Mazurek and David Pfaff remains ongoing.

Judge Cerio set December 21, 2018 for sentencing for Pigeon, who was allowed to remain free on $10,000 bail. His passport was confiscated at his arraignment. Pigeon faces up to one year in jail; he will also lose his law license.

The Attorney General’s Office thanks the United States Attorney’s Office of the Western District of New York, New York State Police, and Federal Bureau of Investigation for their work on the case. The Attorney General’s Office would also like to thank the New York State Board of Elections for their assistance.

Comptroller Stringer Proposes Sweeping Charter Reforms to Confront NYC’s Modern Day Challenges

Proposals tackle affordability crisis, land use, government transparency, wealth creation in communities of color, and procurement reforms

Calls for Chief Diversity Officer in City Hall and at each City agency to create more opportunity for minority and women owned businesses

  New York City Comptroller Scott Stringer today released a comprehensive new set of proposals, “A New Charter to Confront New Challenges,” that outlines sixty-five recommended changes to the New York City Charter as the 2019 Charter Revision Commission holds its initial public hearings. Among those proposals, Comptroller Stringer is calling for a Chief Diversity Officer in every City agency, giving greater urban planning expertise to community boards, strengthening building code enforcement, and establishing procurement timeframes. The Charter, which is the City’s governing document, is undergoing its first full-scale review in nearly 30 years since the last major revision in 1989. Over three decades, the Charter has become increasingly ill equipped to support City-led solutions to modern day challenges – which this proposal aims to correct. Organized in three sections, “Creating a Fairer, More Equitable New York,” “Building a 21st Century Government,” and “Demanding Accountability & Transparency,” the report details community-focused reforms designed to a make the City more transparent, effective, and accountable.

“Since the last major charter revision nearly thirty years ago, New York City has grown by 1.2 million people and the world has changed around it, yet its charter is not prepared to meet the needs of today’s challenges. The Charter Review Commission is an opportunity for us to build a better government that takes aim at our affordability crisis and builds a fairer City by giving a voice to New Yorkers,” said Comptroller Stringer. “That’s why we’ve put together a comprehensive set of reforms designed to build a stronger City that works for everyone, and to help New Yorkers have better engagement, transparency, and accountability from their government.”

Creating a Fairer, More Equitable New York

One of the primary recommendations in Comptroller Stringer’s proposal is the creation of the Chief Diversity Officer position inside the Mayor’s cabinet and within each City agency, a role tasked with overseeing minority and women business enterprise (M/WBE) programs, tracking and measuring diverse talent, and encouraging M/WBEs to bid on City contracts.

New York City agencies spend almost $20 billion a year on goods and services, yet the Comptroller’s office has found that less than 5% of those contracts are awarded to M/BWE firms, thwarting the City’s ability to fully invest in its businesses, build wealth in local communities, and foster competitive procurements that ensure taxpayer dollars are spent most efficiently.

“We’ve seen firsthand in the Comptroller’s Office that a Chief Diversity Officer helps break down walls and transform how agencies invest in city businesses with an eye toward equity. Without this position, we perpetuate a system that fails to build wealth in communities that have historically been left behind. It’s long past time for the City to build on its thriving economy with a Chief Diversity Officer in City Hall and at each agency,” said Comptroller Stringer.

As New York City continues to confront an affordability crisis driven by a lack of affordable housing and a local government that too often fails to listen to the voices of residents feeling that crisis most acutely, reforms to local land use policy are urgently needed.

In order to better empower communities, encourage sound planning, and strengthen the overall Uniform Land Use Review Procedure (ULURP) process, Comptroller Stringer recommends the amended City Charter include the following:

• Require Community Boards to hire a full-time qualified urban planner with a degree in urban planning, architecture, real estate development, public policy or similar discipline and include the necessary budget appropriations to fund this position;
• Create a new office of long-term planning that can help growing communities foresee infrastructure challenges down the road; and
• To provide the public with greater opportunity to weigh in on the metrics used in Environmental Impact Statements, the City Charter should be updated to create a public process for reviewing the City Environmental Quality Review framework.

Building a 21st Century Government

Despite the existence of a comprehensive building code and housing regulations designed to protect the health, safety, and welfare of New York City residents, too many New Yorkers are forced to live in buildings that are dilapidated, unsanitary, or unsafe. In its current structure, the Department of Buildings (DOB) is an agency in conflict with itself in that it both approves permits for construction and enforces construction codes. Similarly, the Department of Housing Preservation and Development (HPD) has to both finance and develop housing while enforcing housing standards.

To resolve this conflict, the Comptroller’s office proposes creating a new Office of Inspection, which will be responsible for all building and housing inspection and remediation. Such responsibilities should be removed from the DOB and HPD so that they can focus more on their other respective responsibilities.

Demanding Accountability & Transparency

The City’s budget and the accompanying financial plans are tools for maintaining sustainable spending and revenues, and ensuring accountability over the use of the public’s money. Yet annual budget presentations lack critical information, limiting public participation and the Council’s ability to carry out its Charter role in the budget process.

To provide more transparency in the budget process for elected officials and the public, the Comptroller’s office finds an updated City Charter must be overhauled in order to improve transparency, accountability, and control in the City budget.

In particular, the City’s capital budget, through which the City builds new schools, paves its streets, and ensures a clean and reliable water supply, needs a substantial overhaul so that the public can understand the cost and status of the capital projects that are vital to the City’s future.

Suggested reforms include:

• Structuring the capital budget to allow the public to identify and understand the cost of individual capital projects;
• Providing better and more comprehensive information about the condition of capital assets; and
• Reporting on the changes in the cost and status of capital projects.

New York City relies on a network of non-profit services providers to help meet the needs of vulnerable residents, but thousands of these non-profits go unpaid for months and are forced to deliver services without a registered contract.

In order to ensure every City agency operates with efficiency and transparency, the City Charter should be amended to give each agency with an oversight role in the procurement process a timeframe to complete its task, similar to the explicit 30-day timeframe for contract registration required for the Comptroller’s Office.

Beyond these recommendations, the report covers topics such as cybersecurity, adopting instant runoff voting, strengthening services for children citywide, and strengthening the campaign finance system, among others.

Read all of Comptroller Stringer’s sixty-five recommendations here.

Engel on Yesterday’s Senate Judiciary Hearing with Dr. Ford & Judge Kavanaugh

Congressman Eliot L. Engel issued the following statement:

“The contrast between Dr. Ford and Judge Kavanaugh’s testimonies yesterday could not have been more striking. Dr. Ford was poised, earnest, and carried herself with incredible dignity under very difficult circumstances. Judge Kavanaugh was unhinged, undisciplined, and during his opening remarks ranted about a vast leftwing conspiracy that has worked to derail his nomination. It was a performance designed entirely to please the President, and while he may have succeeded in that goal, his conduct and temperament were not befitting of a Supreme Court Justice.

“There is no conceivable way members of the United States Senate can properly consider all of the information they heard yesterday in less than 24 hours, while also seeing to the litany of other outstanding issues surrounding Judge Kavanaugh’s nomination. Republican leadership should have immediately postponed any further proceedings until a thorough FBI investigation was called and completed. But, in addition to what we heard from Dr. Ford, there are also serious concerns about whether or not Judge Kavanaugh was truthful in other areas of his sworn testimony before the Senate earlier this month. Clearly, this is a Supreme Court nominee who deserves far more scrutiny than he has received from members of Senate leadership, and he should not be whisked through the nomination process. Yet judging by today’s Judiciary Committee vote, Senate Republicans simply don’t care.

“When President Trump announced his selection of Judge Kavanaugh for the Supreme Court, I thought he was an unacceptable nominee, and that was before we even knew who Dr. Ford was. Now it should be clear to everyone that his appointment to our nation’s highest court would be a disaster for the country. A vote on Judge Kavanaugh’s nomination by the full Senate tomorrow would be completely irresponsible and further expose this process for what it truly is: a blatant, highly partisan power grab of the Supreme Court by members of the GOP. This is a pivotal moment for our country. I urge Senate leadership to do the right thing, delay tomorrow’s vote, and call for the FBI investigation.”

Wave Hill Events October 11‒October 18 First concert of the 2018–2019 series!

Sat, October 13

Family Art Project: Papermaking with Lavender

Work alongside papermaker extraordinaire Randy Brozen, using vats of luscious, violet-colored cotton and abaca pulp to make paper from scratch. Add a bit of the natural material of your choice or sprinkle in a few lavender buds for marvelous texture and scent. Free, and admission to the grounds is free until noon.

WAVE HILL HOUSE, 10AM‒1PM

Sat, October 13

Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Sat, October 13

Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. In a new collaboration, Wave Hill is partnering with the American Society of Botanical Artists (ASBA) to produce and host ASBA’s 21st Annual International. ASBA’s mission is to provide a thriving, interactive community dedicated to perpetuating the tradition and contemporary practice of botanical art. This juried exhibition consists of two-dimensional original botanical art, including some specimens found at Wave Hill. In the Sunroom Project Space, Ashton Agbomenou’s new project stems from his time in Wave Hill’s 2018 Winter Workspace. Seeking synchronicity in the African diaspora, Agbomenou constructs visual mementos through his collage-like, layered-painting process, drawing inspiration from Wave Hill’s natural resources. Bronx-born, Dominican-American artist Yelaine Rodriguez works on a new series for the Sun Porch. Using photography, video and performance, Rodriguez creates a unique narrative that examines self-identity and draws inspiration from the colors and textures in nature and from her experience of Wave Hill’s landscape during the 2018 Winter Workspace program. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Sun, October 14

Fall Birding

Naturalist Gabriel Willow contributes his extensive knowledge of bird species and their behaviors on these captivating walks. Wave Hill’s garden setting overlooking the Hudson River provides the perfect habitat for resident and migrating birds. Birders of all levels welcome. Ages 10 and older welcome with an adult. Severe weather cancels. Free with admission to the grounds. NYC Audubon members enjoy two-for-one admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 9:30AM

Sun, October 14

Family Art Project: Papermaking with Lavender

Work alongside papermaker extraordinaire Randy Brozen, using vats of luscious, violet-colored cotton and abaca pulp to make paper from scratch. Add a bit of the natural material of your choice or sprinkle in a few lavender buds for marvelous texture and scent. Free with admission to the grounds.

WAVE HILL HOUSE, 10AM‒1PM

Sun, October 14

Family Nature Walk

Join naturalist and educator Gabriel Willow on a family-friendly walk through the gardens or woodlands. Registration not required. Ages six and older welcome with an adult. Severe weather cancels.

MEET AT WAVE HILL HOUSE, 1PM

Sun, October 14

Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

Sun, October 14

Pre-Concert Tea

Enjoy Afternoon Tea in the Mark Twain Room prior to today’s concert in Armor Hall. The Café at Wave Hill pairs a classic menu with an assortment of green, black and herbal teas. This traditional tea service includes the four classic elements of savory, scones, sweets and tea. The menu, presented by Great Performances, includes an array of tea sandwiches, scones and bite-sized desserts. Afternoon Tea also includes a glass of sparkling wine. Afternoon Tea Service is $36. Wave Hill Members receive a 10% discount. Advance registration is required online. We will take reservations until 5PM on the Thursday prior to the concert.

WAVE HILL HOUSE, NOON–2PM

Sun, October 14    

Concert: Jolie Holland

Over the span of her career, Jolie Holland has knotted together a century of American song—jazz, blues, soul, rock and roll—into some stew that is impossible to categorize with any conventional critical terminology. She dives straight to the pathos of a song the way the very greatest singers, singers like Mavis Staples, or Al Green, or Skip James or Tom Waits do. Upon first encounter, her songs seem challenging, perhaps unsettling at times, but as so many poets and rockers have shown us—from Dante Alighieri to William Blake to Sylvia Plath to Patti Smith to Nick Cave to Mark E. Smith—that’s where the beauty lies. As evident on her first recordings, Holland apparently has no fear of the truth, and there is no emotional core that she cannot reach in song. In fact, she thrives on the red hot center of a musical composition, in all its strange and brutal detail. There has been no album of the recent decade with quite this sonic ambition, with quite this command of what a rock and roll song is and ought to be, but Wine Dark Sea is all of that, with a little bit of Homer and Maya Deren mixed in too. Wine Dark Sea is the album of a lifetime, with a lifetime of work in it. Ticket Prices: Adults: $28 (includes admission to the grounds) / Wave Hill Members 10% discount / $12 children ages 8-18, unless otherwise noted. Order tickets online or onsite at the Perkins Visitor Center. For additional information, please call 718.549.3200 x251.

WAVE HILL HOUSE, 2PM

Mon, October 15

Closed to the public.

Tue, October 16

Garden Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Tue, October 16

Gallery Tour

Learn about Glyndor Gallery exhibitions on a tour led by Wave Hill’s Curatorial Fellow. In a new collaboration, Wave Hill is partnering with the American Society of Botanical Artists (ASBA) to produce and host ASBA’s 21st Annual International. ASBA’s mission is to provide a thriving, interactive community dedicated to perpetuating the tradition and contemporary practice of botanical art. This juried exhibition consists of two-dimensional original botanical art, including some specimens found at Wave Hill. In the Sunroom Project Space, Ashton Agbomenou’s new project stems from his time in Wave Hill’s 2018 Winter Workspace. Seeking synchronicity in the African diaspora, Agbomenou constructs visual mementos through his collage-like, layered-painting process, drawing inspiration from Wave Hill’s natural resources. Bronx-born, Dominican-American artist Yelaine Rodriguez works on a new series for the Sun Porch. Using photography, video and performance, Rodriguez creates a unique narrative that examines self-identity and draws inspiration from the colors and textures in nature and from her experience of Wave Hill’s landscape during the 2018 Winter Workspace program. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–5:30PM,  March 15–October 31. Closes 4:30PM, starting November 1.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

Former President Of Labor Union Pleads Guilty To Participating In Embezzlement And Kickback Scheme

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General (“DOL-OIG”), Thomas Licetti, Acting New York Regional Director, U.S. Department of Labor Employee Benefits Security Administration (“DOL-EBSA”), and Andriana Vamvakas, New York Regional Director, U.S. Department of Labor Office of Labor-Management Standards (“DOL-OLMS”), announced that ROCCO FAZZOLARI, who previously served as the president of a labor union (the “Union”) and a trustee of the Union’s employee welfare benefit plan (the “Plan”), pled guilty today to embezzling from the Union and the Plan and to participating in a kickback scheme involving the Plan.  Through these embezzlement and kickback schemes, FAZZOLARI and a co-conspirator illegally obtained a total of more than $1.3 million from the Union and the Plan.  FAZZOLARI pled guilty before United States District Judge Analisa Torres.

U.S. Attorney Geoffrey S. Berman said:  “Rocco Fazzolari abused his position as the president of a labor union to line his own pockets.  As he admitted today, he embezzled funds and he engaged in a kickback scheme that cost an employee benefit plan – which was established to provide medical care for union members – more than $1 million.  Our Office is committed to prosecuting those who misuse positions of trust for their own gain.”

DOL-OIG New York Region Special Agent-in-Charge Michael C. Mikulka said:  “While president of a labor union, Rocco Fazzolari stole union assets to pay for lavish personal items, including designer clothing, spa treatments, and a second vehicle for his family, betraying the members of the union.  We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards and the Employee Benefits Security Administration to protect the financial integrity of labor unions and their benefit plans.”

DOL-EBSA Acting New York Regional Director Thomas Licetti said:  “Plan administrators and trustees of union sponsored health plans have a fiduciary obligation under ERISA to provide health benefits to union members and plan participants.  In this case, the plan administrator intentionally broke that promise in order to serve his own interest.  EBSA will pursue strong enforcement action against those responsible for depriving employees of the benefits to which they are entitled.”

DOL-OLMS New York Regional Director Andriana Vamvakas said:  “Combatting financial fraud and investigating embezzlement of union funds helps safeguard financial integrity in labor unions.  This is a major priority for the U.S. Department of Labor’s Office of Labor-Management Standards.  We will work with our investigative partners to identify criminal violations and pursue appropriate legal action whenever anyone puts personal financial gain ahead of the best interests of union members.”

According to the allegations in the Information to which FAZZOLARI pled guilty, public court filings, and statements made in court:

From at least in or about 2012 through in or about June 2016, FAZZOLARI repeatedly used Union funds to pay for his personal expenses, including payments for spa treatments, a gym membership, a second car, medical expenses, dues for an actors’ union, personal credit card charges, and ATM cash withdrawals.  FAZZOLARI then “reimbursed” the Union with funds from the Plan.  The Plan was established to provide, among other things, medical, surgical, and hospital care or benefits to Union members.  In total, FAZZOLARI embezzled more than $128,000 from the Union over approximately four years, and improperly transferred more than $89,000 from the Plan to “reimburse” the Union. 

In addition, from at least in or about 2000 through in or about June 2016, FAZZOLARI engaged in a kickback scheme with another individual (“CC-1”).  Using Plan funds, FAZZOLARI paid CC-1’s company, Acclaim Administrators, Inc. (“Acclaim”), more than $1.1 million for purported services, even though Acclaim did not actually provide the Plan with these services.  CC-1 then kicked back the vast majority of these payments to FAZZOLARI.

Under the terms of his plea agreement, FAZZOLARI has agreed to a 13-year ban, pursuant to 29 U.S.C. §§ 504 and 1111, which generally prohibits him from, among other things, being employed by a labor union or employee benefit plan.  FAZZOLARI has also agreed to forfeit $941,828 and to pay restitution to the Union and the Plan.

ROCCO FAZZOLARI, 58, of Manhasset Hills, New York, pled guilty to three counts: embezzlement from a labor organization, embezzlement from an employee benefit plan, and conspiracy to embezzle from an employee benefit plan, each of which carries a maximum sentence of five years in prison. 

The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  Sentencing before Judge Torres is scheduled for January 28, 2019, at 11:40 a.m.

Mr. Berman praised the Department of Labor’s Office of Inspector General, Employee Benefits Security Administration, Office of Chief Accountant, and Office of Labor-Management Standards for their outstanding investigative work.  Mr. Berman also thanked the Federal Bureau of Investigation and the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance in this case.

Robert Pizarro And Juan Rivera Convicted Of Kidnapping And Murdering Federal Cooperating Witness

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that earlier today, ROBERT PIZARRO and JUAN RIVERA were convicted of murdering a witness to prevent reporting to law enforcement, kidnapping conspiracy, kidnapping resulting in death, robbery conspiracy, robbery, and firearms offenses, arising out of the murder of federal cooperating witness Robert Bishun on September 20, 2016. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Just over two years ago, Robert Bishun was violently kidnapped and brutally murdered by the defendants because he was a federal cooperating witness.  Today, the jury in this case returned a unanimous verdict holding the defendants accountable for their heinous crimes.  We hope that today’s result brings some small measure of peace to Robert Bishun’s family.”

According to the proof introduced at trial:

On September 20, 2016, PIZARRO and RIVERA attempted to rob Robert Bishun at gunpoint inside his auto body shop in the Bronx; during the attempted robbery, two customers were bound with zip ties and locked in the trunks of separate vehicles inside the shop.  Upon learning that Bishun was a federal cooperating witness, PIZARRO and RIVERA kidnapped Bishun from his shop and strangled him to death with a plastic zip tie, before abandoning Bishun’s body in the back of his own vehicle on the side of the road.

On a prior occasion, in January 2015, PIZARRO and another accomplice stormed into Bishun’s auto body shop and robbed Robert Bishun at gunpoint, taking approximately $10,000 in cash from Bishun.  During the course of the robbery, two customers were bound with zip ties.

PIZARRO, 38, of the Bronx, faces a mandatory minimum sentence of life in prison plus 32 years.  RIVERA, 41, also of the Bronx, faces a mandatory minimum sentence of life in prison plus 7 years.  

Mr. Berman praised the investigative efforts of the DEA and the NYPD, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

A.G. Underwood Announces Record $148 Million Settlement With Uber Over 2016 Data Breach

Settlement with 50 States & DC Also Requires Uber to Adopt Model Data Breach Notification and Data Security Practices, Corporate Integrity Program; Hire Independent Third Party to Assess Data Security

  Attorney General Barbara D. Underwood today announced an agreement with ride-sharing company Uber Technologies, Inc. (Uber) to settle allegations it intentionally concealed a 2016 data breach in violation of state data breach notification laws. The settlement, which was reached with all 50 states and the District of Columbia, requires Uber to adopt model data breach notification and data security practices and a corporate integrity program for employees to report unethical behavior, and hire an independent third party to assess its data security practices. It also requires Uber to pay a record penalty of $148 million.

“New Yorkers deserve to know that their personal information will be protected – period,” said Attorney General Underwood. “This record settlement should send a clear message: we have zero tolerance for those who skirt the law and leave consumer and employee information vulnerable to exploitation. We'll continue to fight to protect New Yorkers from weak data security and criminal hackers.”

In November 2016, hackers based in the United States and Canada secretly informed security officials at Uber that they had downloaded the personal information of 57 million riders and drivers, 25 million of whom were in the United States and 7.7 million of whom were drivers. The information stolen included names, email addresses, and mobile phone numbers; drivers’ license information pertaining to approximately 600,000 drivers nationwide was also stolen. After providing proof of the massive data breach, the hackers demanded “six figures” to delete the data and not disclose the breach. Uber ultimately paid the hackers $100,000 to conceal the breach. 

In the spring of 2017, Uber’s Board of Directors directed a law firm to investigate Uber’s security team in the wake of unrelated litigation involving the alleged theft of trade secrets related to self-driving cars. As part of this inquiry, the law firm learned of the breach and ransom payment. Upon learning of the breach, the board hired a forensic firm to investigate the breach. Uber ultimately provided notice of the breach in late November 2017, a year after the breach.

General Business Law § 899-aa requires companies that experience a breach involving certain personal information, including driver’s license numbers, to provide notice “in the most expedient time possible and without unreasonable delay.” By intentionally concealing the breach and failing to disclose it for a year, Uber violated GBL § 899-aa.   

As part of the nationwide settlement, Uber has agreed to pay a record penalty of $148 million to the states. New York will receive approximately $5.1 million. 

The settlement between New York and Uber requires the company to:

• Comply with New York’s data breach and consumer protection laws regarding protecting New York residents’ personal information and notifying them in the event of a data breach concerning their personal information;
• Take precautions to protect any user data Uber stores on third-party platforms outside of Uber;
• Use strong password policies for its employees to gain access to the Uber network;
• Develop and implement a strong overall data security policy for all data that Uber collects about its users, including assessing potential risks to the security of the data and implementing any additional security measures beyond what Uber is doing to protect the data;
• Hire an outside qualified party to assess Uber’s data security efforts on a regular basis and draft a report with any recommended security improvements. Uber will implement any such security improvement recommendations; and
• Develop and implement a corporate integrity program to ensure that Uber employees can report any ethics concerns they have about any other Uber employees to the company.

This settlement also addresses and resolves allegations that Uber’s conduct violated an earlier 2016 settlement with the Office of the New York Attorney General. In the earlier investigation, the office found that on May 12, 2014, a hacker accessed an Uber database that included names of roughly 50,000 Uber drivers and their driver’s license numbers. Uber discovered the breach in September 2014 but did not provide notice to the affected drivers and the office until February 26, 2015, over five months later. The prior 2016 settlement required Uber to comply with GBL § 899-aa. It also required Uber to adopt protective technologies for the storage, access, and transfer of certain personal information, and credentials related to its access, including the adoption of multi-factor authentication, or similarly protective access control methodologies. 

The New York Attorney General independently investigated the current breach, but later joined the multistate investigatory process, where it took a leadership position, to effectuate settlement. 

The Attorney General's office has also proposed legislation to close gaps in New York's data security laws and comprehensively protect New Yorkers’ personal information from data breaches.

MAYOR DE BLASIO APPOINTS SARAH CARROLL AS NEW CHAIR OF THE LANDMARKS PRESERVATION COMMISSION

  Mayor Bill de Blasio today announced the appointment of Sarah Carroll as the Chair of the Landmarks Preservation Commission. As Chair, Carroll will lead the Commission as it continues to preserve and protect New York City's architecturally, historically, and culturally significant buildings and sites.

“Sarah is a dedicated public servant and preservationist with more than two decades of experience,” said Mayor de Blasio. “Her intimate knowledge of the Commission’s work and her commitment to preservation make her an invaluable asset in the effort to protect the historic buildings and sites that make New York City so unique.”

“Having dedicated my career to protecting the heritage of the city I love, it is a dream realized and an incredible honor to be appointed by the Mayor and entrusted by the Council to lead the Commission,” said LPC ChairSarah Carroll. “I look forward to continuing to work with the Commissioners and staff to preserve and celebrate sites that reflect the diversity and rich history of our city and to partnering with property owners, elected officials, preservationists and communities to ensure these sites remain relevant for generations to come.”

Carroll, a preservationist by training and profession, has dedicated her career to public service at LPC. She has deep institutional knowledge about the agency’s work and its operational strengths. Over the past 24 years, she has served in various capacities at LPC, including Landmarks Preservationist, Deputy Director of Preservation, and Director of Preservation. In 2014, she became Executive Director.

During her tenure as Executive Director, Carroll oversaw the successful designation of more than 4,000 buildings and sites in the city, the implementation of numerous transparency and efficiency measures, including new website features that provide information and access to the agency’s work, and the development of a new internal permit tracking database that increased efficiency and staff accountability in the application process.

“Balancing a deep respect for New York City’s unique architectural heritage and iconic structures, with an understanding of the needs of a growing city, Sarah has earned her excellent reputation as an independent, effective leader and preservationist, ” said Deputy Mayor for Housing and Economic Development Alicia Glen.

“The Landmarks Preservation Commission is responsible with preserving the architectural and cultural heritage that New Yorkers value so deeply,” said Speaker Corey Johnson. “With decades of preservation expertise, Sarah Carroll has shown a lifelong dedication to public service. As a career preservationist, Sarah is an excellent choice to lead this vital office and I look forward to working with her in this new role.”