REP. ADRIANO ESPAILLAT RECOGNIZES INTERNATIONAL HOLOCAUST REMEMBRANCE DAY

CONGRESSMAN ADRIANO ESPAILLAT

Representing the 13th District of New York

  

  Today, Representative Adriano Espaillat (NY-13) issued the following statement in recognition of International Holocaust Remembrance Day:

“Today, International Holocaust Remembrance Day, we reflect on the atrocities committed towards Jewish people during World War II, and we honor the memory of the six million Jews whose lives were taken and bear witness to their legacy,” said Rep. Adriano Espaillat.

“Despite the traumatizing memories they carry, Holocaust survivors continue to educate each of us on the courage and wisdom required in our efforts to uphold human rights and ensure equal protections for all. Anti-Semitism and racism continue as destructive forces in our world, and it remains incumbent upon all of us to act against these dangerous ideologies. As the Holocaust moves further into history, it is our job to ensure that it remains present in our minds as well as in our convictions to dismantle hatred and to prevent this terrible injustice from repeating itself.

“This International Holocaust Remembrance Day marks the 74th anniversary of the liberation of the Auschwitz concentration camp. We all should take this day as a reminder to contemplate the meaning of our vow, ‘never again’, and recommit to stand united against all forms of bigotry, hatred, and social injustices today and for all time.”

John Fratta Says Good Bye to Bronx Community Board 11

Pictured Above - (l-r) Anthony Vitaliano 1st Vice-Chair, Albert D'angelo Chair, Jeremy Warneke District Manager, John Fratta (speaking), Joanne Russo-Rubino 2nd Vice Chair, 49th Precinct Captain Andrew Natiw.

  Thursday night was the last time that former District Manager and Business Promotion Coordinator at Bronx Community Board 11 John Fratta sat up front in an official role. During his Good Bye speech which came after a well attended retirement party, he wished the board, its members, and the CB 11 community a fond farewell after dedicating so many years of his life to CB 11. 

  After serving fifteen years as CB 11 District Manager John Fratta became the Business Promotion Coordinator at Cb 11, and also mentored Jeremy Warneke to adjust to his role as the new District Manager of CB 11. Many words of praise came from most of the current members of CB 11 who have been on the board from when John Fratta became the District Manager of CB 11. 

CITY HOUSING AUTHORITY SUPERVISOR CHARGED WITH STEALING A KITCHEN APPLIANCE AND OTHER EQUIPMENT FROM NYCHA’S WAGNER HOUSES

  Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced today the arrest of a Supervisor of Housing Caretakers at the New York City Housing Authority (“NYCHA”), on charges of stealing kitchen cabinets, a refrigerator, and a sink from NYCHA’s Wagner Houses in East Harlem where the supervisor worked. DOI worked in partnership with the office of Queens District Attorney Richard A. Brown, which is prosecuting the case. 

 DOI Commissioner Margaret Garnett said, “This NYCHA supervisor misused her position to give her personal kitchen a makeover, realizing the renovation with stolen equipment and an appliance from NYCHA and denying residents what was rightfully theirs, according to the charges. Employees who abuse their authority and steal from the City to enrich themselves will be investigated and arrested. DOI thanks the Queens District Attorney’s Office for their partnership in the prosecution of this case.”

 Queens County District Attorney Richard A. Brown said, “The defendant is accused of taking advantage of her trusted position to steal from her employer. Torres’ alleged scheme didn’t just rip off NYCHA, but also the thousands of residents who rely on the agency for housing. While greed may not be a crime, funneling goods and products meant for the truly needy is. This case should serve as a warning to others that my office will work diligently with our law enforcement partners to apprehend and prosecute those who attempt to cheat the system for their own personal gain.” 

 DOI arrested EVA TORRES, 42, of Queens, N.Y., today on charges of Criminal Possession of Stolen Property in the Fourth Degree, a class E felony, and Possession of Stolen Property in the Fifth Degree, a class A misdemeanor. Upon conviction, a class E felony is punishable by up to four years in prison and a class A misdemeanor is punishable by up to a year’s incarceration.

 According to the criminal complaint and DOI’s investigation, in September 2018, DOI began investigating a tip that TORRES had renovated the kitchen of her Queens residence with cabinets and an appliance from NYCHA. DOI investigators observed a post from TORRES’ Facebook account that showed TORRES in her kitchen standing in front of kitchen cabinets and a refrigerator that appeared to be similar to items used by NYCHA to furnish apartments. The specific model cabinets are procured by NYCHA from Crotone Kitchens Inc. in Canada and the exact model has never been sold privately to anybody including TORRES

 As a result of DOI’s observations, a search warrant was executed today, January 24, 2019, to search TORRES’ kitchen in Queens, at which time eight cabinets, a white refrigerator, and a sink -- all with matching serial numbers to items purchased by NYCHA for the Wagner Houses -- were found. The total value of the NYCHA property found in TORRES’ kitchen was $1,355, and TORRES did not have the permission or authority to take that property.

 The investigation was conducted by DOI’s Inspector General for NYCHA Ralph Iannuzzi and members of his staff, including Deputy Inspector General Gregory DeBoer, Assistant Inspector General Robin Jacknow, and Confidential Investigator Shateeka Washington. 

A criminal complaint is an accusation. A defendant is presumed innocent until proven guilty

NYPD Detective Pleads Guilty To Bank Fraud

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL BONANNO, a New York City Police Department (“NYPD”) detective, pled guilty today to his role in a bank fraud scheme that used stolen checks and bank account numbers from New York-based victims.  BONANNO pled guilty to one count of bank fraud and one count of conspiracy to commit bank fraud before U.S. District Judge Paul G. Gardephe.  Bonanno’s co-conspirator, Domenic Aiello, previously pled guilty before Magistrate Judge Debra Freeman on January 4, 2019.

U.S. Attorney Geoffrey S. Berman said:  “Instead of upholding his duty to investigate and enforce the law, Michael Bonanno, who was at the time a detective in the NYPD’s Crime Stoppers unit, broke the law by brazenly attempting to swindle hundreds of thousands of dollars from residents of New York.  I commend the FBI and the Internal Affairs Bureau of the NYPD for their outstanding work in this investigation.”

According to the Information and Complaint filed in this case, other public filings, and statements made during the plea proceeding:

BONANNO is an NYPD detective and was a member of the NYPD Crime Stoppers unit, which receives and investigates anonymous tips about criminal activity from members of the community.

From November 2016 to March 2017, BONANNO and Aiello stole and attempted to steal hundreds of thousands of dollars from the bank accounts of multiple New York residents in two ways.  First, on over 20 occasions, BONANNO and Aiello made payments on BONANNO’s mortgage and credit card bills using stolen account information from various victims.  Second, on at least 15 occasions, BONANNO and Aiello attempted to deposit fraudulent and stolen checks in BONANNO’s bank accounts. 

BONANNO, 44, who resides in Staten Island, New York, pled guilty to one count of bank fraud and one count of conspiracy to commit bank fraud.  Each count carries a maximum term of 30 years in prison.  BONANNO is scheduled to be sentenced by Judge Gardephe on April 26, 2019.  The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the Internal Affairs Bureau of the NYPD in this investigation.   

Six Individuals Charged With Conspiring To Traffic More Than $30 Million Of Contraband Cigarettes

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), Matthew Modafferi, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, Northeast Area Field Office (“USPS-OIG”), and Joseph Fucito, New York City Sheriff, announced today the unsealing of an Indictment in Manhattan federal court charging SHAO JUN GUO, JIAN JIANG FENG, YUE JUAN CHEN, ZHURONG GAO, SHUI YING LIN, and WO KIT CHENG with conspiring to traffic contraband cigarettes and trafficking contraband cigarettes.  The defendants were arrested yesterday and will be presented before U.S. Magistrate Judge Robert W. Lehrburger today.  The case is assigned to U.S. District Judge Jesse M. Furman.  The defendants will be arraigned before Judge Furman on January 31, 2019, at 11:00 a.m.

As alleged in the Indictment, SHAO JUN GUO, JIAN JIANG FENG, YUE JUAN CHEN, ZHURONG GAO, SHUI YING LIN, and WO KIT CHENG conspired to traffic more than $30 million of contraband cigarettes to avoid approximately $30 million in taxes.  The case is assigned to United States District Judge Jesse M. Furman.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, the defendants trafficked in massive quantities of contraband cigarettes, defrauding city, state, and federal governments of millions of dollars in tax revenue.  That is lost tax revenue that would be used to fund research into cancer and other smoking-related illnesses, and to fund cessation and anti-smoking programs.  These defendants’ alleged scheme to make millions, cheat taxing authorities, and deny funds for healthcare programs has gone up in smoke.”

USPIS Inspector-in-Charge Philip R. Bartlett said:  “These defendants thought they could get away with their scheme to distribute contraband cigarettes, avoiding regulations put in place to protect the public, businesses and the City from fraud.  Their illegal profit went up in smoke.”

HSI Special Agent-in-Charge Angel M. Melendez said:  “For the past six years these defendants smuggled untaxed cigarettes into the United States causing lost revenue to the U.S. economy to the tune of $30 million dollars in unpaid taxes.  Whether it be drugs, counterfeit goods or untaxed cigarettes, smuggling items into the United States is a crime that we at HSI take very seriously as we work every day to secure our borders.”

USPS-OIG Special Agent-in-Charge Matthew Modafferi said:  “In certain instances, the Special Agents of the U.S. Postal Service, Office of Inspector General will work with their law enforcement partners to stop those who use the U.S. Mail to facilitate their crimes.  We would like to thank the U.S. Attorney’s Office, USPIS, HSI, and New York City Sheriff’s Department for their collaborative efforts in developing this investigation.”

Sheriff Joseph Fucito said:  “The alleged criminal conduct of the defendants deprives all New Yorkers of significant tax revenues.  These lost revenues impact public safety, education, health, housing, and social services. The New York City DOF Sheriff’s Department will continue to investigate and pursue criminal conduct to ensure these invaluable services are sustained.”  

According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:  From June 2013 through January 2019, the defendants engaged in a scheme to smuggle and traffic $30 million of untaxed cigarettes in the United States to avoid at least $30 million in taxes. 

SHAO JUN GUO, 42, of Brooklyn, New York, JIAN JIANG FENG of New York, New York, YUE JUAN CHEN, 41, of Bayside, New York,  ZHURONG GAO, 66, of New York, New York, SHUI YING LIN, 43, of Brooklyn, New York, and WO KIT CHENG, 44, of Brooklyn, New York, have each been charged with one count of conspiracy to traffic contraband cigarettes, which carries a maximum prison term of five years; and one count of trafficking contraband cigarettes, which carries a maximum prison term of five years.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the USPIS, HSI, and the New York City Sheriff’s Department.

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

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

Attorney General James Announces $8 Million Settlement In Principle With Walgreens Over False Claims Billed To New York's Medicaid Program For Prescription Drugs

  Attorney General Letitia James announced that New York has joined with other states and the federal government to reach an agreement in principle with Walgreen Co. (Walgreens) to settle allegations that Walgreens violated the False Claims Act by billing Medicaid at rates higher than its usual and customary (U&C) rates for certain prescription drugs. As a result, Walgreens, a Delaware corporation headquartered in Deerfield, Illinois, will pay the states and federal government $60 million, all of which is attributable to the states’ Medicaid programs.

“My office will continue to investigate and stop unlawful practices that hurt New York State’s Medicaid Program,” said Attorney General Letitia James. “We will never let companies get away with illegally billing Medicaid with inflated amounts for prescription drugs."

The national federal and state civil settlement will resolve allegations relating to Walgreens’ discount drug program, known as the Prescription Savings Club (PSC).  The investigation revealed that Walgreens submitted claims to the states’ Medicaid programs in which it identified U&C prices for certain prescription drugs sold through the PSC program that were higher than what Walgreens actually charged for those drugs. In doing so, Walgreens’ obtained more money in reimbursements from the States’ Medicaid program for sales of such drugs than it was entitled to receive. 

The investigation resulted from a qui tam action originally filed in 2012 in the United States District Court for the Southern District of New York under the federal False Claims Act and various state false claims statutes. As part of the settlement, New York Medicaid will receive over $8 million in restitution and other recoveries.

A National Association of Medicaid Fraud Control Units (NAMFCU) Team conducted the settlement negotiations with Walgreens on behalf of the states. The Team included representatives from the Offices of the Attorneys General for the states of New York, California, Illinois, Indiana, Michigan and Ohio.

The civil settlement was handled by Special Assistant Attorney General Kathryn Heim Harris of the New York City Regional Office, under the supervision of MFCU Civil Chief Carolyn Ellis. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney.

This is the second false claims act settlement reached with Walgreens. On January 22, 2019, Attorney General James announced that Walgreens is to pay New York over $6.5 million as part of a $209.2 million settlement with the federal government and other states, resolving allegations that Walgreens knowingly engaged in fraudulent conduct when it dispensed insulin pens in full boxes of five pens regardless of the quantity of insulin and/or days’ supply written on the Medicare or Medicaid beneficiaries’ prescription.

Attorney General James and 45 Attorneys General Nationwide Reach $120 Million Settlement with Johnson & Johnson and DePuy Inc. Over Misleading Information about Hip Replacement Devices

DePuy Misled Patients About Longevity, Efficacy of Hip Replacement Devices

  Attorney General Letitia James announced that she and 45 other Attorneys General across the country reached a $120 million Consent Judgment with Johnson & Johnson and DePuy Inc. to resolve allegations that the company unlawfully promoted its metal-on-metal hip implant devices, the ASR XL and the Pinnacle Ultamet.

The Attorneys General allege that DePuy engaged in unfair and deceptive practices in its promotion of the ASR XL and Pinnacle Ultamet hip implant devices by making misleading claims as to the longevity, also known as survivorship, of metal-on-metal hip implants. DePuy advertised that the ASR XL hip implant had a survivorship of 99.2 percent at three years when the National Joint Registry of England and Wales reported a 7 percent revision rate at three years. Similarly, DePuy promoted the Pinnacle Ultamet as having a survivorship of 99.8 percent and 99.9 percent survivorship at five years when the National Joint Registry of England and Wales reported a 2.2 percent 3-year-revision rate in 2009 increasing to a 4.28 percent 5-year-revision rate in 2012. 

“Doctors and their patients need to have accurate and up to date information to ensure that patients are receiving appropriate healthcare,” said Attorney General Letitia James. “Companies should never be allowed to freely mislead the public, especially when there are health concerns involved. This settlement serves as an important message that deceptive and false medical practices will never be tolerated.”

Some patients who required hip implant revision surgery to replace a failed ASR XL or Pinnacle Ultamet implant experienced persistent groin pain, allergic reactions, tissue necrosis, as well as a build-up of metal ions in the blood. The ASR XL was recalled from the market in 2010. DePuy discontinued its sale of the Pinnacle Ultamet in 2013.

As part of the Consent Judgment, DePuy has agreed to reform how it markets and promotes its hip implants. Under the Consent Judgment, DePuy is required to: 

• Base claims of survivorship, stability or dislocations on scientific information and the most recent dataset available from a registry for any DePuy hip implant device.
• Maintain a post market surveillance program and complaint handling program.
• Update and maintain internal product complaint handling operating procedures including training of complaint reviewers.
• Update and maintain processes and procedures to track and analyze product complaints that do not meet the definition of Medical Device Reportable Events.
• Maintain a quality assurance program that includes an audit procedure for tracking complaints regarding DePuy Products that do not rise to the level of a Medical Device Reportable Event but that may indicate a device-related serious injury or malfunction.
• Perform quarterly reviews of complaints and if a subgroup of patients is identified that has a higher incidence of adverse events than the full patient population, determine the cause and alter promotional practices as appropriate. 

Under the settlement New York State will receive $4,663,161.92.

Attorney General James Announces Settlement With Walgreens Boots Alliance Over Medicaid Fraud Allegations For Over-Dispensing Insulin Pens

Walgreens to Pay $209.2 Million to Resolve Allegations it Falsely Billed New York’s Medicaid Program for Insulin Pens

New York State to Receive Over $6.5 Million Share of Insulin Pens Settlement  

  Attorney General Letitia James announced that New York, together with the federal government and other states, has reached a nationwide $209.2 million settlement with Walgreens Boots Alliance (Walgreens) concerning allegations of fraudulent over-dispensing of insulin pens at Walgreens pharmacies. The qui tam action, unsealed today, resolves allegations that Walgreens knowingly engaged in fraudulent conduct when it dispensed insulin pens. When filling insulin prescriptions, Walgreens did not always adhere to the dosage outlined by the prescribing doctor, but rather dispensed insulin pens in boxes containing five pens, regardless of the patient’s needs. This resulted in a pattern where Medicare and Medicaid beneficiaries were routinely receiving more insulin than prescribed and Walgreens was then billing Medicaid for the additional doses. Walgreens, headquartered in Deerfield, Illinois, operates the largest retail pharmacy chain in the U.S., with 8,309 locations across all 50 states. 

“Cheating our state’s Medicaid program will never be tolerated by this office,” said Attorney General Letitia James. “We will continue to root out illegal practices that increase costs of health care and medication for all New York Medicaid recipients, and will hold accountable any provider that engages in these deceptive practices.”

Under the settlement, Walgreens will pay the United States and the States $209.2 million dollars. Of this amount, $89,185,625.10 will go to the state Medicaid programs to resolve civil allegations that Walgreens’ unlawful over-dispensing of insulin pens caused false claims to be submitted to Medicaid health care programs. The State of New York will receive $6,548,679.82 of this amount in restitution and other recovery.

Walgreens admitted, among other facts, that from January 1, 2006 to December 31, 2017:

• When a state Medicaid program denied a claim from Walgreens because the reported days of supply for a full carton of five insulin pens exceeded the Medicaid program’s days of supply limit, it was Walgreens’ practice to dispense and bill for the full carton, and reduce the reported days of supply to conform to the program’s days of supply limit. Thus, Walgreens repeatedly reported days of supply data to state Medicaid programs that were different from, and lower than, the days of supply calculated according to the standard pharmacy billing formula of dividing the quantity of insulin being dispensed by the daily dose; and

• As result of this practice, state Medicaid programs approved and paid a substantial number of claims submitted by Walgreens for insulin pen refills that the programs would not have approved if Walgreens had reported the days of supply for previous fills calculated according to the standard pharmacy billing formula of dividing the quantity dispensed by the daily dose.

In recent years, New York’s Medicaid program paid an average of approximately $425 per box of five insulin pens to pharmacies on behalf of Medicaid beneficiaries.

The investigation was initiated after a whistleblower filed a lawsuit in 2015 in the United States District Court for the Southern District of New York under the qui tam provisions  of the federal False Claims Act and the named plaintiff states’ respective false claims statutes.  The relator in this case will receive a share of the settlement proceeds after full payment by Walgreens.  The case is captioned United States of America et al., ex rel. Adam Rahimi et al. v. Walgreen Boots Alliance, Inc., Civil Action No. 15-CV-5686 (S.D.N.Y.) (Crotty, J.).

The insulin pens investigation and settlement were the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of New York, and the National Association of Medicaid Fraud Control Units (NAMFCU).  A NAMFCU Team conducted the investigation of Walgreens and participated in the settlement negotiations on behalf of the states, and included representatives from the Offices of the Attorneys General for the states of Indiana, New York, Washington, Texas, Oklahoma and Massachusetts.