Second Bronx Gang Member Arrested And Charged In Manhattan Federal Court With 2011 Murder Of Bolivia Beck

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Raymond P. Donovan, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced today that KAREEM DAVIS, an alleged member of the “Killbrook” gang based in the Mill Brook Houses in the Bronx, was arrested and charged in connection with the April 18, 2011, murder of Bolivia Beck, the girlfriend of a rival gang member.  Beck was shot and killed as she was being introduced to her boyfriend’s grandparents on a sidewalk in the Mill Brook Houses.  DAVIS will be arraigned in Manhattan federal court later today before United States Magistrate Judge Debra Freeman. 

Fifteen individuals were previously charged in an initial Indictment unsealed on October 11, 2017.  That Indictment charged four individuals, including Gary Davis, the brother of KAREEM DAVIS, with racketeering conspiracy, in connection with their membership in the Killbrook gang, and charged other individuals with narcotics conspiracy and firearms offenses.  On January 8, 2018, Gary Davis was charged with the 2011 murder of Beck.  The Superseding Indictment adds KAREEM DAVIS as the second defendant charged with that murder.  The case is assigned to U.S. District Judge Lorna G. Schofield. 

U.S. Attorney Geoffrey S. Berman said:  “Bolivia Beck was murdered in 2011, in the most horrible and tragic of circumstances.  Over seven years have passed, but our remarkable partners at the NYPD and DEA have remained committed to holding her killers accountable.  As a result, Kareem Davis now stands charged with this terrible crime.”

DEA Special Agent in Charge Raymond P. Donovan said: “This investigation into the Killbrook Gang uncovered a racketeering conspiracy involving drug trafficking, firearms offenses and murder. Allegedly, Bolivia Beck was put in the crosshairs of gang rivalry and gang violence by Kareem and Gary Davis, both of whom are charged with murder.  There is no place for criminal gang activity in our communities and law enforcement is working to remove threats of violence by putting those responsible in jail.”  

According to the allegations in the Superseding Indictment[1] and information in the public record:

On April 18, 2011, Bolivia Beck was struck in the head by a bullet as she was being introduced to her boyfriend’s grandparents on a sidewalk in the Mill Brook Houses.  The shooting occurred in broad daylight.  Beck died two days later from the gunshot wound.  The shooting arose out of an ongoing gang dispute between Killbrook and the rival “MBG” street gang. 

KAREEM DAVIS, 29, of the Bronx, New York, is charged in the Superseding Indictment with one count of racketeering conspiracy, one count of murder in aid of racketeering and aiding and abetting the same, and one count of murder through the use of a firearm and aiding and abetting the same.  DAVIS faces a maximum penalty of death or life in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Berman praised the outstanding investigative work of the NYPD and the DEA.

The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.     

[1] As the introductory phase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation. 

State Sen. Kevin Parker’s most notable eruptions

New York State Senator Kevin S. Parker

Here is a rundown of Parker’s most notable eruptions.

2005 – Parker’s temper came to public attention early in his career as a state senator. He was arrested in 2005 for punching a traffic agent who was giving him a ticket for double parking. In order to resolve a misdemeanor assault charge, Parker agreed to participate in an anger management program.

2005 – A legislative staffer accused Parker of threatening her in an Albany restaurant after she accused him of shoving and hitting her when she was working as his office manager.

2008 – An argument in Parker’s Brooklyn campaign headquarters got physical in 2008. The Daily News reported at the time that Parker pushed his aide Lucretia John while they were arguing about an unknown issue, knocking her glasses off her face. Parker then intentionally smashed the glasses by stomping on them, John later told police.

2009 – Parker was convicted of misdemeanor criminal mischief after he reportedly damaged the camera of a New York Post photographer in May 2009. The state senator was arrested after he reportedly chased the photographer, who had used a flash to take Parker’s picture outside his mother’s house. Then Parker sat on the hood of the journalist’s Subaru Forester and tried to grab the camera when he returned, breaking it in the process. Though Parker was eventually cleared of felony assault charges, he was sentenced to three years’ probation.

2009 – Parker also raised eyebrows that year for calling then-Gov. David Paterson a “coke snorting, staff-banging governor” after Paterson cut off some pay for senators amid a partisan fight for leadership of the chamber. While Parker initially stood by the comment, he later apologized to Paterson and praised him for his honesty about past drug use and extra-marital affairs.

2010 – Parker reportedly charged toward state Sen. Diane Savino during a contentious meeting of Senate Democrats. The incident began during a discussion about whether then-state Sen. Hiram Monserrate should have been expelled from the chamber following his own conviction for misdemeanor assault. Parker opposed Monserrate’s expulsion and reportedly called Savino a “bitch” and dropped some “f-bombs,” the Daily News reported at the time. "Do you want a piece of me?" he reportedly asked Savino’s boyfriend, then-Senate Deputy Majority Leader Jeff Klein, after Klein intervened.

2018 – Parker tweeted, “Kill yourself!” at GOP political operative Candice Giove after she called him out on Twitter for misusing his parking placard. Parker deleted the tweet and apologized for “a poor choice of words” later in the day, but then provoked additional controversy less than an hour later. He suggested in a follow-up tweet that Giove, deputy communications director for state Senate Republicans, deserved such treatment because of her past work for the now-defunct Independent Democratic Conference. She has been “on the wrong side of history for every important issue facing New York State!” Parker added in a third tweet. Since then, Parker has resigned as chairman of New York City Councilman Jumaane Williams’ campaign for public advocate.

EDITOR'S NOTE:

If after thirteen years of abusing and disrespecting women has not taught Democrats about Kevin S. Parker, we only wonder what will happen to the new Senate Majority Leader Andrea Stewart-Cousins when she disagrees with Kevin S. Parker.

It is the opinion of this reporter that Kevin S. Parker will not change, and that the new Democratic State Senate majority must not ignore this outlandish STUPID act of BULLYING by Kevin S. Parker, and expel him from the State Senate. 

We also want to know what Mayor Bill de Blasio is going to do about the parking placard that was misused by Kevin S. Parker. Is Mayor de Blasio going to live up to his word that people found misusing parking placards will have them taken away and the offender fined. 

Thanks to City & State for the list of the most notable eruptions of Kevin S. Parker.

VISION ZERO: MAYOR DE BLASIO ANNOUNCES NEW YORK CITY ADDED OVER TWENTY MILES OF PROTECTED BICYCLE LANES IN 2018

New bike lanes include major additions to 1,200-mile bicycle network; As 2018 ends with record-low cyclist fatalities, protected bike lanes have helped make streets safer for all users

  Mayor Bill de Blasio today announced that DOT had this year constructed over 20 miles of new on-street protected bike lanes along some of New York City’s major streets.  The additional lanes have expanded the city’s bike network, the nation’s largest, to 1,217 miles, of which 119.5 miles are on-street protected lanes. 83 miles of these protected lanes have been added since 2014 (see chart at the end of release).  DOT has continued its high productivity under Vision Zero, with this year’s 20.9 miles a record second only to last year’s 25 miles -- that includes major projects in all five boroughs, among them midtown Manhattan’s first-ever crosstown protected lanes as well as new lanes along: Broadway in the northern Bronx; Skillman/43rd Avenues in Sunnyside, Queens; 9th Street in Park Slope, Brooklyn; and on Park Row connecting Chinatown and Lower Manhattan. As part of City Hall in Your Borough, DOT Commissioner Polly Trottenberg was joined by transportation advocates and elected officials in Midtown for a bike ride along the new 26th Street crosstown protected bike lane, where she also cited a dramatic decline in cyclist fatalities during 2018.

“Our Vision Zero work never stops, as we have continued adding protected bike lanes at a steady pace across the city,” said Mayor de Blasio. “This work saves lives. With more New Yorkers than ever using a bicycle to get around, we are expanding our bike lane network to make biking more safe, convenient, and comfortable.”

“I want to thank DOT’s planners, designers and construction crews, as well as our Borough Commissioners and their teams, for another great year of new protected bike lanes,” said DOT Commissioner Trottenberg.  “From the north Bronx to Long Island City, and from Park Slope to here in Manhattan, where we installed four new crosstown protected lanes, our bike projects this year included important safety-focused projects and key network connections to make cycling in New York even easier and more enjoyable.  And while our Vision Zero work is far from complete, as we near the end of the year, we are grateful for the decline in cyclist fatalities we have seen this year.”

New protected lanes: Much of DOT’s protected bike lane production in 2018 focused on preparations for the L train tunnel shutdown that begins next April.  According to DOT estimates, 2-3 percent of the 275,000 displaced L riders will turn to cycling, which will more than double current cycling volumes – especially on routes in lower Manhattan nearest the Williamsburg Bridge.

This year’s new protected bike lanes are listed below.  Projects that are expected to be used most heavily by displaced L train riders are marked by *:

Manhattan

Park Row (Frankfort Street to Chatham Square)*             0.5 miles

Delancey Street (Clinton St to Allen St)*                          0.5

12^th St/13^th St (Ave C to 8^th Ave)*                                    3.1

East 20^th Street (Ave C to First Ave)*                               0.7

26^th St/ 29^th Street (1st Ave to 12th Ave)*                        2.8

7^th Ave South (Clarkson St to 11 St)                                  0.5

2^nd Ave (68^th St to 74^th St)                                                 0.3

Brooklyn

Grand Street (Bushwick Ave to Union Ave)*                    1.8

Morgan Ave. Knickerbocker Ave, Grattan St*                   0.3

4^th Ave (60^th – 64^th Street)                                                 0.4

43^rd & 44^th Sts./57^th & 58^th Sts.                                        0.6

9^th Street (3^rd Ave to Prospect Park West)                         1.8

Bronx

Broadway (West 242nd  Street 

to Westchester Co line, along Van Cortlandt Park)           2.4

Queens

73 Ave/233 Street 

(Alley Pond Park to Horace Harding Expw)                    1.8

43^rd Ave/ Skillman Ave 

(Queens Blvd Br. to Roosevelt Ave)                                2.6

Jewel Avenue                                                                    0.2      

Staten Island

Staten Island Ferry Ramps                                               0.9

Cyclist Fatalities at Record Lows:  DOT announced that in 2018 cyclist fatalities had declined to a single-year record low: 10 cyclist deaths so far this year compared to 24 last year, and an annual average of 19 since Vision Zero began in 2014.  The previous annual low for cyclist fatalities was 12, during both 2009 and 2013. 

According to a DOT report released last year, Safer Cycling, an increase in cycling volumes and greater cycling infrastructure are direct correlated to fewer crashes and injuries for all street users: cyclists, pedestrians and motorists. 

“Protected bike lanes are good policy because they are lifesaving policy, and I am proud to support their construction here in my district and all over the city,” said Council Speaker Corey Johnson. “We should be proud of the bike lanes we’ve built this year, from here in Chelsea to Skillman Avenue in Queens and everywhere in between, but we can always do more. I thank the Department of Transportation for its commitment to Vision Zero and I look forward to continuing our work together to help New Yorkers get around our city safely and efficiently.”

About Vision Zero

Vision Zero is the de Blasio administration’s initiative to use every tool at its disposal to reduce traffic deaths and injuries on New York City streets. In 2017, New York City experienced its safest year on record with the fourth straight year of fatality declines. Since the program’s inaugural year in 2014, when New York City became the first American city to adopt Vision Zero through 2017, the city’s traffic fatalities have declined 26 percent with a 42 percent decline in pedestrian fatalities — bucking national fatality trends, which have increased 13 percent over the same period.

For more information about the Vision Zero initiative, please see www.nyc.gov/visionzero.

  

TRANSIT LOCKBOX BILL PROCEEDS TO GOVERNOR’S DESK

If signed, legislation would prohibit transit funding from being diverted for non-transit purposes without accounting for the impacts on riders.

  As the conversation on how to adequately fund New York’s mass transit system heats up, so too have calls for improved cost controls and revenue accountability. While there is general consensus that a significant influx of dedicated and sustainable revenue for mass transit is needed to bring New York City’s subway and bus networks into a state of good repair befitting a modern global city, critics have maligned a checkered history of MTA funding diversions and massive debt service payments. Assembly Bill 8511, championed by Assemblyman Jeffrey Dinowitz, would require funding dedicated to public transportation systems (including the MTA) be used for their intended purpose. This legislation passed unanimously through both chambers of the State Legislature this past spring.

The bill, which would require express legislative consent to divert transit funding to other purposes, also adds several layers of transparency to the process. For any diversion, there must be a diversion impact statement which reflects the amount of the diversion from each fund listed separately, the amount diverted expressed as current monthly transit fares, the cumulative amount of diversion from the previous five years, and a detailed estimate of the impact on service, maintenance, security, and current capital program. Transit and government reform advocates have maligned the current system where funding intended for mass transit is frequently reallocated to cover budgetary shortfalls in unrelated areas without any input from the public.

Proponents of increased funding for mass transit, particularly for NYCT President Andy Byford’s Fast Forward Plan, have discussed a multitude of possible new revenue sources – including congestion pricing, millionaire’s tax, lifting the cap on gas tax, registration surcharges, and a restoration of the commuter tax. All of these funding mechanisms, if approved, would be implemented with the express intent of funding mass transit improvements such as those mentioned in Fast Forward. In the past, similar revenues have been diverted and replaced with bonds or loans that are backed by these same revenue generators, further adding to an existing debt service burden that has ballooned to over $2.5 billion in 2018 alone.

The bill was delivered to the Governor’s desk on December 17, who now has 10 days (not including Sundays) to either sign or veto the legislation.

Assemblyman Jeffrey Dinowitz said: “However we decide to fund our mass transit system, one thing is clear: we need this money to actually be spent on tangible improvements to subway and bus infrastructure in our neighborhoods. Nobody wants to pay more in taxes or tolls or fees, and especially not when they can’t be certain that the money collected from them is actually going to be spent appropriately. We have an obligation to keep our promises to straphangers, and I urge Governor Cuomo to sign this common-sense bill into law before we head into next year’s budget conversation on how to raise revenue for transit.”

MAYOR DE BLASIO ANNOUNCES DR. OXIRIS BARBOT AS CITY’S HEALTH COMMISSIONER

  Mayor Bill de Blasio announced today the appointment of Dr. Oxiris Barbot as Commissioner of the City’s Department of Health and Mental Hygiene. In this role, she will lead the 6,000-member agency charged with protecting and promoting the health of New Yorkers in one of the largest and oldest public health agencies in the world. As Health Commissioner, Dr. Barbot will double down on the agency’s commitment to achieving health equity, battling the opioid epidemic, and raising awareness about mental health as part of New Yorkers’ overall wellness. She will become the first Latina to lead the agency.

“As a native New Yorker, Dr. Barbot understands that improving the health of our city starts with keeping health equity at the center of our work,” said Mayor Bill de Blasio. “Her extraordinary experience will be invaluable as we continue making New Yorkers the healthiest they can be, both physically and mentally.”

“Dr. Barbot has dedicated her life to eliminating disparities and injustices in health care,” saidFirst Lady Chirlane McCray. “I am proud to welcome a public servant so deeply committed to ensuring that the WHOLE patient is treated —mind and body. Dr. Barbot has a notable range and quality of experiences.  From running a federally qualified clinic in D.C. to leading the City's response to Hurricane Maria in Puerto Rico, her work has been impressive. New York City is fortunate to have such an exceptional new Health Commissioner.”

“New York City needs a strong and experienced manager to lead our Health Department and I am extremely pleased to see Dr. Barbot take on that role,” said New York City Deputy Mayor for Health and Human Services Dr. Herminia Palacio. “As a pediatrician and public health expert, Dr Barbot brings the right set of skills at the right time. She is extremely talented and I forward to working with her on this role to continue to protect the health of all New Yorkers.”

“I thank Mayor de Blasio for his trust as he appoints me Commissioner of Health,” said Health Commissioner Dr. Oxiris Barbot. “My 25 years in clinical medicine and public health have been guided by a commitment to equity, community engagement and innovation, as well as a track record of incorporating mental health into my clinical and public health practice.  Those priorities will continue to be a focus as I work to address reducing racially-based inequities within the most pressing health issues facing our City – opioid overdose deaths, the HIV epidemic and maternal/child health outcomes. I look forward to working with all of our city partners to achieve these goals.”

A native Bronxite, Dr. Barbot most recently served as Acting Health Commissioner. During that time, she’s overseen the roll out of the Bronx Action plan, an $8 million initiative to tackle the opioid epidemic in the South Bronx. She also announced NYC’s Standards for Respectful Care at Birth, which aims to improve health outcomes for women and reduce structural racism and unconscious bias at all 38 City maternity hospitals, clinical providers, and more than 100 community-based organizations.

Prior to serving as Acting Health Commissioner, Dr. Barbot served as First Deputy Health Commissioner, a role she began in 2014. In that role, she led the agency’s blueprint for achieving health equity, Take Care New York 2020, and led the agency’s efforts to bridge the gap between public health and health care delivery. She also guided the emergency preparedness response, healthcare systems analysis, and performance measurement for the nation’s largest health department. Dr. Barbot was also a strong supporter of the launch of Latinx Thrive, an effort by ThriveNYC advocacy organizations and elected officials to promote mental health literacy in the Latino community and connect individuals and families to Thrive services. 

Dr. Barbot first joined the City’s Department of Health and Mental Services in 2003, serving as Medical Director for the New York City Public School System. During that time, she developed an electronic health record that improved the efficiency of delivering health services to more than one million school children. She served in that role for seven years, before going to Baltimore to take the role of Health Commissioner.

About Oxiris Barbot

Dr. Barbot is an innovative pediatrician and public health influencer with over 20 years of experience in advancing equity and providing care to urban communities. Prior to returning to New York City, Dr. Barbot served as Baltimore’s City Health Commissioner from 2010 to 2014. Under her leadership, Baltimore launched Healthy Baltimore 2015, a comprehensive health policy agenda focused on improving health outcomes and addressing social determinants. While in Baltimore, Dr. Barbot focused on violence as a public health issue and introduced a health-in-all-policies approach to city government. She also served as Chief of Pediatrics and Community Medicine at Unity Health Care, Inc., a federally qualified health center in Washington, D.C. There, she gained firsthand knowledge of the importance of addressing underlying social determinants of health for communities challenged by both current and historic injustices.

A Bronx native, Dr. Barbot received a bachelor’s degree from Yale University and a medical degree from the University of Medicine and Dentistry of New Jersey. She completed her pediatric residency at George Washington University’s Children’s National Medical Center. Dr. Barbot is a nationally recognized expert on Latino health and regularly appears on national media outlets such as Telemundo and Univision. She’s been a proud member of National Hispanic Medical Association for over 20 years.

NYC COUNCIL TO VOTE ON REPRODUCTIVE RIGHTS BILL

  On Thursday, November 20, the New York City Council will vote on the 'NYC Boss Bill.' 

The NYC Boss Bill, Intro 863-A, similar to the 'Boss Bill' currently before the New York State Legislature,  would help ensure that New Yorkers can access medical procedures and medicine related to reproductive health without fear of discrimination or discriminatory harassment, achieved by expanding the NYC Human Rights Law. 

The bill would prohibit discrimination in employment, and discriminatory harassment or violence, based on an individual’s sexual and reproductive health decisions. Sexual and reproductive health decisions would be defined to include any decision by an individual to receive services, which are arranged for or offered or provided to individuals relating to sexual and reproductive health, including the reproductive system and its functions. Such services include, but are not limited to, fertility-related medical procedures, sexually transmitted disease prevention, testing, and treatment, and family planning services and counseling, such as birth control drugs and supplies, emergency contraception, sterilization procedures, pregnancy testing, and abortion.

Council Member Jumaane D. Williams is the prime sponsor of this bill, and it has twenty-nine co-sponsors (not counting the Public Advocate). Intro 863-A, was brought before the City Council on April 25, 2018, and referred to the Committee on Civil and Human Rights the same day. A hearing was held on December 18, 2018 when Intro 863-A was amended at the committee level, and passed by the committee to appear before the full board on December 20, 2018. Passage of Intro 863-A is expected by the council.

A.G. Underwood, Comptroller DiNapoli, And DOI Commissioner Garnett Announce Indictment Of Former Non-Profit Director Anna Mendez

Mendez Allegedly Stole Over $50,000 from Bronx Non-Profit and Falsified Business Records to Conceal the Theft

  Attorney General Barbara D. Underwood, Comptroller Thomas P. DiNapoli, and New York City Department of Investigation Commissioner Margaret Garnett today announced the indictment of former  Program Director Anna Mendez on one count of Grand Larceny in the Second Degree, a class C felony, and ten counts of Falsifying Business Records in the First Degree, a class D felony, in Bronx County Supreme Court.

“As we allege, the defendant stole tens of thousands of dollars that was intended to help children – and then used those funds to serve herself and local politicians through illegal straw donations,” said Attorney General Underwood. “Non-profit directors have a fundamental responsibility to their organizations and the people they serve. We will hold accountable anyone whotries to exploit New Yorkers.”

“For years, Ms. Mendez allegedly exploited her position to steal money meant to help children and families and used it for her own personal use,” said State Comptroller Thomas P. DiNapoli. “Now, thanks to my partnership with Attorney General Underwood and the New York City Department of Investigation, she will face the consequences of her actions. I thank the Attorney General and Department of Investigation for their continued collaboration in combating fraud.”

DOI Commissioner Margaret Garnett said, “This defendant embezzled tens of thousands of dollars from a day care in the Bronx, using the proceeds of her crime for personal use and for straw donations to local politicians, according to the charges. Fraud at nonprofits can hurt some of the most vulnerable in our City, in this case working families in the Bronx who struggle to find childcare. DOI was gratified to perform financial analysis on this investigation and work with the state Attorney General’s Office and the state Comptroller’s Office on this important case.”

Mendez allegedly collected money from the parents of families using the day care services at the 1984 Daly Avenue location of Tremont Crotona, Inc., which were stored in a safe in her office. Mendez is charged with taking at least $50,000 from the safe over an approximately three-year period for her personal use and to make straw donations to New York politicians. She is also charged with keeping the records of the stolen parent fees separate from the rest of the parent fee money that was collected, and of failing to report the receipt of that money to Tremont Crotona, Inc. so management would not notice her theft.

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

Since 2011, the Attorney General and State Comptroller have worked together to fight corruption through their Joint Task Force on Public Integrity. They have brought charges against dozens of individuals implicated in public corruption schemes around the state – resulting in the return of over $11 million in restitution to taxpayers through these convictions.

A.G. Underwood Announces Record $174.2 Million Consumer Fraud Settlement With Charter For Defrauding Internet Subscribers

Settlement Includes Largest-Ever Consumer Payout by Internet Service Provider in U.S. History

As Part of Settlement, Charter Required to Implement Major Precedent-Setting Marketing and Business Practice Reforms; Charter has also Made Substantial Network Enhancements Following AG Investigation

NY Consumers to Receive $62.5 Million in Direct Refunds, Plus Over $100 Million in Premium Channels and Streaming Services  

  Attorney General Barbara D. Underwood announced a record $174.2 million consumer fraud settlement with Charter Communications, Inc. and Spectrum Management Holding Company (together “Charter”) for defrauding internet subscribers. The $62.5 million in direct refunds to consumers alone are believed to represent the largest-ever payout to consumers by an internet service provider (ISP) in U.S. history.

The landmark agreement settles a consumer fraud action alleging that the state’s largest ISP, which operated initially as Time Warner Cable and later under Charter’s Spectrum brand name, denied customers the reliable and fast internet service it had promised. This is the first settlement to result from the Attorney General’s major investigation of broadband internet service in New York.

“This settlement should serve as a wakeup call to any company serving New York consumers: fulfill your promises, or pay the price,” said Attorney General Underwood. “Not only is this the largest-ever consumer payout by an internet service provider, returning tens of millions of dollars to New Yorkers who were ripped off and providing additional streaming and premium channels as restitution – but it also sets a new standard for how internet providers should fairly market their services.”

The settlement includes direct restitution of $62.5 million for over 700,000 active subscribers, who will each receive between $75 and $150, as well as streaming services and premium channels, with a retail value of over $100 million, at no charge for approximately 2.2 million active subscribers.

Additionally, under the settlement, Charter is required to implement a series of precedent-setting marketing and business reforms, including the requirement to describe internet speeds as “wired” and to substantiate them through regular speed testing. These reforms set the stage for major marketing and business reforms across the broadband industry. Following the Attorney General’s investigation, Charter has also made substantial network enhancements to improve its internet service in New York.

Attorney General’s Lawsuit 

In 2017, the Attorney General’s office filed a detailed complaint in New York State Supreme Court, alleging that Charter had failed to deliver the internet speed or reliability it had promised subscribers in several respects. That includes leasing deficient modems and wireless routers to subscribers – equipment that did not deliver the internet speeds they had paid for; aggressively marketing, and charging more for, headline download speeds of 100, 200, and 300 Mbps while failing to maintain enough network capacity to reliably deliver those speeds to subscribers; guaranteeing that subscribers would enjoy seamless access to their chosen internet content while engaging in hardball tactics with Netflix and other popular third-party content providers that, at various times, ensured that subscribers would suffer through frozen screens, extended buffering, and reduced picture quality; and representing internet speeds as equally available, whether connecting over a wired or WiFi connection – even though, in real-world use, internet speeds are routinely slower via WiFi connection.

The Attorney General’s office prevailed at every major stage of the court proceedings. After Charter sought to move the case to federal court, the Attorney General’s office won a federal court decision returning it to state court. Charter then moved to dismiss the action on various grounds, including federal preemption; the Attorney General’s office successfully opposed that motion, which the trial court denied in full. When Charter appealed parts of that ruling, the Attorney General’s office prevailed again at the Appellate Division. 

Record Settlement Agreement 

As part of today’s settlement, Charter agrees to a financial settlement of $62.5 million in refunds plus streaming services and premium channels to subscribers with a retail value of over $100 million. The direct customer refunds alone are believed to constitute the largest consumer relief payout ever paid by an ISP in U.S. history. The direct restitution serves to compensate subscribers who Charter equipped with outdated modems and routers and with premium speed plans that consistently failed to deliver the advertised speeds. The streaming benefits serve to compensate subscribers for Charter’s historic failures to faithfully deliver third-party internet content that it had advertised.

Charter is also required to implement a series of precedent-setting marketing and business reforms, establishing a new model for the broadband industry.

The key financial terms of the agreement and the marketing and business reforms are set out below.

Financial Terms

1) Consumer Relief (Direct Refunds): $62.5 million

a. Charter to award a $75 refund to each of over 700,000 active subscribers based on: 

(1) Leasing an inadequate modem; 

(2) Leasing an inadequate WiFi router; OR

(3) Subscribing to a Time Warner Cable legacy speed plan of 100 Mbps or higher.

b. Charter to award an additional $75 refund to each of over approximately 150,000 subscribers who had an inadequate modem for 24 months or more.

Charter will notify subscribers of their eligibility for refunds and disburse them within 120 days. 

Note: Charter has already disbursed over $6 million in refunds for inadequate modems to date, separate from today’s settlement. Because these subscribers received full compensation, they are ineligible for a further payment. 

2) Consumer Relief (In-Kind Video and Streaming Benefit): Worth over $100 million

In addition to the direct refunds detailed above, Charter will offer free streaming services to approximately 2.2 million active internet subscribers:

a. Charter will offer all subscribers currently receiving internet and cable television from the company a choice of either three free months of HBO or six free months of Showtime. (Note: This benefit is available to subscribers who do not already subscribe to both of the offered networks through Charter.)

b. All other active Charter internet subscribers will receive a free month of Charter’s Spectrum TV Choice streaming service—in which subscribers can access broadcast television and a choice of 10 pay TV networks—as well as a free month of Showtime.

Charter will notify subscribers of their eligibility for video and streaming services and provide details for accessing them within 120 days of the settlement.

Receiving the video and streaming services as restitution will not affect eligibility for future promotional pricing.

3) Substantial Network Investments

Following the Attorney General’s investigation, Charter made significant investments to address the problems identified in the complaint and improve internet service in New York. This includes network enhancements, modem replacements, and upgraded WiFi routers.

Marketing and Business Reforms

The settlement also includes the follow key injunctive terms:

1) Affirmative Advertising Obligations: Charter is required to (a) describe internet speeds as “wired”; (b) disclose that wireless speeds may vary; and (c) disclose the factors that might lead actual experience to vary, including based on the number of users and device limitations. This applies to all advertising and marketing of speeds, including television and other commercials, website and website communications, print ads, bill inserts, emails, and more.

2) Substantiating Internet Speeds: Charter must substantiate internet speeds using an industry-accepted testing methodology, and discontinue any speed plan that cannot be substantiated.

3) Advertising prohibitions: Charter is prohibited from making unsubstantiated claims about (a) the speed required for particular internet activities like streaming; (b) the reliability of the internet service (e.g., no buffering, no slowdowns); or (c) the availability of the promised speed over WiFi.

Charter is also prohibited from describing internet speeds as “consistent” without fully satisfying the FCC Consistent Speed Metric and must make commercially reasonable efforts to deliver access to all online content and services featured in its advertisements. 

4) Equipment Reforms: Charter is required to: (a) provide subscribers with equipment capable of delivering the advertised speed under typical network conditions when they commence service; (b) promptly offer to ship or install free replacements to all subscribers with inadequate equipment via at least three different contact methods; and (c) implement rules to prevent subscribers from initiating or upgrading service without proper equipment for the chosen speed tiers. 

5) Sales and Customer Service Training: Charter must train customer service representations and other employees to inform subscribers about the factors that affect internet speeds. Charter must also maintain a video on its website to educate subscribers about various factors limiting internet speeds over WiFi.