Monday, July 29, 2019
BP DIAZ PROVIDES $650K FOR REGIONAL FOOD HUB
‘The Hub’ in Hunts Point will expand healthy food options, provide opportunities for local farmers and create new jobs, in partnership with GrowNYC
Bronx Borough President Ruben Diaz Jr. announced today that he will provide $650,000 in capital funding to expand healthy eating options and create new jobs in the food industry.
As part of his FY2020 capital budget, Borough President Diaz will provide the funding toward the creation of the New York State Greenmarket Regional Food Hub (The Hub), a 75,000 square foot distribution facility that will be located in the Hunts Point neighborhood of the South Bronx. Operated by the nonprofit GrowNYC, this new facility will build upon current efforts to connect local farmers and underserved New York communities, and exponentially benefit these groups left behind by our current food system.
The Hub will expand GrowNYC’s wholesale distribution infrastructure that makes high-quality, local foods accessible to underserved New Yorkers via wholesale buyers like institutions and restaurants, and through innovative partnerships with nonprofit organizations. The Hub will also create additional living-wage jobs in the very neighborhoods where GrowNYC and our partners operate – all while strengthening rural communities by paying farmers a fair price for the food they produce.
“The food industry is one of the most significant economic engines in our borough, and this project will only help that sector expand and grow stronger,” said Bronx Borough President Ruben Diaz Jr. “By providing smaller farmers with the ability to connect with restaurants, supermarkets and other food sellers in a more direct manner, we can create living wage jobs while also expanding healthy eating options across the region. The Bronx feeds the region, and this project will only expand on that distinction. I am thrilled to partner with GrowNYC on this innovative project.”
“In many ways, local farmers and underserved communities are both suffering from a lack of access,” said GrowNYC President and CEO Marcel Van Ooyen. “Farmers lack access to business opportunities within the New York City marketplace, and underserved communities lack access to fresh, local foods and the resources and jobs that make them available. With the Hub, we are addressing all of these needs, and we are deeply grateful to Bronx Borough President Ruben Diaz Jr., the New York City Council, Governor Andrew Cuomo, and the Federal Economic Development Administration for the support and generous funding allowing us to do so.”
The result of a more than $25 million capital campaign, The Hub will usher in a new era of local food distribution in New York City, increasing access to affordable, healthy foods in underserved communities at a scale not yet seen in the City’s history.
This year, Borough President Diaz’s office has provided $31,477,000 in total capital dollars to 101 different projects. Since coming to office in 2009, Borough President Diaz has provided $303,374,000 in total capital funding to 905 projects.
Information Technology Consultant Convicted Of Multimillion-Dollar Kickback Scheme
Former Information Technology Director Who Received Kickbacks Pleaded Guilty Prior to Trial
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that a federal jury found SHIVANAND MAHARAJ guilty of honest services wire fraud, paying kickbacks in connection with an employee benefit plan, and conspiracy, following a two-week trial before U.S. District Judge John G. Koeltl. MAHARAJ’s co-conspirator, ENRICO RUBANO, a/k/a “Rick Rubano,” who was a director of information technology at a large union pension and health benefit fund (the “Funds”), pled guilty in connection with the same crimes shortly before trial.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For years, Shivanand Maharaj bribed an insider at a pension and health fund to approve hundreds of invoices for information technology work that was never done at all. He now stands rightly convicted for depriving hardworking individuals out of millions of dollars of health and retirement benefits.”
According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court:
From 2009 through 2015, RUBANO was the co-head of information technology for the Funds and had the authority to approve the payment of invoices from third-party vendors. Beginning in at least 2009, and continuing through 2015, MAHARAJ and RUBANO devised a scheme in which three different companies MAHARAJ owned or controlled submitted to the Funds invoices for millions of dollars in information technology services that were never performed or that had, in fact, been performed by employees of the Funds or other vendors. RUBANO, in his position as co-head of information technology, approved these fraudulent invoices and received kickbacks from MAHARAJ. MAHARAJ, by submitting hundreds of invoices and recruiting another co-conspirator to receive additional criminal proceeds, fraudulently received in excess of $2 million through this scheme.
MAHARAJ, 39, of Cresskill, New Jersey, was convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years; one count of giving kickbacks to influence the operation of an employee benefit plan, which carries a maximum sentence of three years; and conspiracy to give kickbacks to influence the operation of an employee benefit plan, which carries a maximum sentence of five years.
MAHARAJ will be sentenced by Judge Koeltl on December 6, 2019.
RUBANO, 50, of Tappan, New York, who engaged in additional kickback and fraud schemes with other co-conspirators, pled guilty to three counts of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison.
RUBANO will be sentenced by Judge Koeltl on November 8, 2019.
The maximum potential sentences in this case 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 thanked the U.S. Postal Inspection Service for their outstanding work in this matter.
AG James: T-Mobile/Sprint Megamerger Remains a Bad Deal for Consumers, Innovation, and Workers
Proposed Deal with DISH is Based on Speculative Promises,
Throwing Risk of Failure on Backs of Consumers
Attorney General Letitia James led a coalition of 14 Attorneys General from across the nation expressing concern about a newly announced deal — approved, in principle, by the United States Department of Justice (DOJ) — supporting the proposed megamerger between telecommunications giants T-Mobile US Inc. and Sprint Corporation.
“The promises made by DISH and T-Mobile in this deal are the kinds of promises only robust competition can guarantee,” said Attorney General Letitia James. “We have serious concerns that cobbling together this new fourth mobile player, with the government picking winners and losers, will not address the merger’s harm to consumers, workers, and innovation."
The states' lawsuit — originally filed on June 11 in United States District Court for the Southern District of New York — to block the merger of T-Mobile and Sprint, alleges that the merger of two of the four national mobile network operators would harm mobile subscribers nationwide by reducing access to affordable, reliable wireless service, hitting lower-income and minority communities particularly hard. The coalition today reaffirmed its commitment to opposing this merger, which would reduce competition and increase prices for consumers.
Earlier, the DOJ indicated it would approve the merger of T-Mobile and Sprint based on promises made by the two companies, including an agreement to divest Sprint’s prepaid subscription service and potentially a slice of its wireless spectrum to satellite TV operator DISH. Though DISH has never owned any kind of mobile wireless business and has no experience building or operating a nationwide mobile wireless network, both T-Mobile and Sprint claim that this deal will create a fourth national network operator that will step into Sprint’s shoes and preserve a competitive market for consumers.
Based on the information available to date, the states continue to have serious concerns with the merger and whether the deal with DISH will create a fourth independent competitor that addresses the loss to competition otherwise caused by this megamerger. Among those concerns:
1. DISH has never shown any inclination or ability to build a nationwide mobile network on its own and has repeatedly broken assurances to the Federal Communications Commission about deployment of its spectrum;
2. DISH does not have the network to operate as an independent competitor, like Sprint does today, and will, instead, remain reliant on the T-Mobile network for the foreseeable future; and
3. T-Mobile and Sprint are asking Americans to trust that this new mega corporation will act directly against its own economic interests by helping transform DISH into an independent competitor that rivals this new company.
The states remain committed to protecting competition in the marketplace and lowering prices for consumers.
In addition to New York, the plaintiffs currently include California, Colorado, Connecticut, the District of Columbia, Hawaii, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, Virginia, and Wisconsin.
T-Mobile currently has more than 79 million subscribers, and is a majority-owned subsidiary of Deutsche Telekom AG. Sprint Corp. currently has more than 54 million subscribers, and is a majority-owned subsidiary of SoftBank Group Corp.
Governor Cuomo Signs Legislation Decriminalizing Marijuana Use
Reduces Unlawful Possession of Marijuana to Violation Punishable by a Fine
Creates Process for Individuals Convicted of Certain Marijuana Offenses to Have Records Expunged
Governor Cuomo: "Communities of color have been disproportionately impacted by laws governing marijuana for far too long, and today we are ending this injustice once and for all."
Governor Andrew M. Cuomo today signed legislation (S.6579A/A.8420) further decriminalizing marijuana use in New York State. New York's existing marijuana laws disproportionately affect African American and Latino communities, and this legislation will address those racial and ethnic disparities by reducing the penalty for unlawful possession of marijuana to a violation punishable by a fine, and by creating a process for individuals who have been convicted for possessing small amounts of marijuana to have their records expunged. The Governor first proposed the further decriminalization of marijuana in 2013, and again in the FY 2020 Budget. The bill will take effect 30 days after becoming law.
"Communities of color have been disproportionately impacted by laws governing marijuana for far too long, and today we are ending this injustice once and for all," Governor Cuomo said. "By providing individuals who have suffered the consequences of an unfair marijuana conviction with a path to have their records expunged and by reducing draconian penalties, we are taking a critical step forward in addressing a broken and discriminatory criminal justice process."
Senate Majority Leader Andrea Stewart-Cousins said, "Decriminalizing marijuana is an essential part of reforming our state's broken justice system. For too long, communities of color have been disproportionately targeted and negatively impacted. The Senate Democratic Majority will continue our efforts for full legalization and regulation of marijuana, and today's decriminalization is a good first step."
Assembly Speaker Carl Heastie said, "This law is an important step in righting decades of injustice caused by the state's current drug laws. Decriminalizing marijuana and expunging records for those with low level offenses will go a long way towards helping our communities, and especially people of color, who have been devastated by them. By removing the barriers and stigma that come with these records, we clear the path for many New Yorkers to find a job, housing and go on to live successful and productive lives."
This legislation will make marijuana enforcement fairer and more equitable by:
- Reducing the penalty for unlawful possession of marijuana to a violation punishable by a fine and removing criminal penalties for possession of any amount of marijuana under two ounces; and
- Creating a process for individuals with certain marijuana convictions to have their records expunged both retroactively and for future convictions.
Senator Jamaal T. Bailey said, "Marijuana possession gives those convicted a criminal record that will follow them throughout their lives, potentially limiting their access to education, affecting their ability to obtain employment leading to a potential inability to provide for their families. The creation of a mechanism for expungement, both retroactively and forward-looking, is a step in the right direction in finally ending the heavy-handed war on drugs that has decimated communities of color."
SPECIAL NARCOTICS GRAND JURY REPORT DOCUMENTS IMPACT OF FENTANYL ANALOGS ON OPIOID EPIDEMIC IN NEW YORK CITY
Recommends Ban on All Forms of Fentanyl Analogs and Increased Funding To Police Labs and Medical Examiners
Bridget G. Brennan, New York City’s Special Narcotics Prosecutor and New York City Police Commissioner James P. O’Neill announced today the release of a Grand Jury report documenting the impact of fentanyl analogs on the opioid epidemic in New York City. The report is the first of its kind issued by a Special Narcotics Grand Jury.
Fentanyl analogs are powerful and harmful synthetic opioids that are increasingly linked to overdose deaths in New York City. Yet despite their lethal nature, fentanyl analogs are largely unregulated in New York State. According to an analysis of data from the Office of the Chief Medical Examiner (OCME) by the Office of the Special Narcotics Prosecutor (SNP), fentanyl analogs have contributed to approximately 900 fatal overdoses across the five boroughs since 2017.
The report details public health risks associated with fentanyl analogs, as well as challenges posed to law enforcement agencies and the scientific community due to the high potency and legal status of these substances. Grand Jurors reviewed more than 250 exhibits admitted into evidence and heard testimony from 72 different witnesses, including medical and forensic experts, civilian eyewitnesses and members of the New York City Police Department (NYPD), the U.S. Drug Enforcement Administration (DEA) New York Division and the New York Drug Enforcement Task Force, among others.
Two recommendations are directed towards the New York State Legislature:
- Adopt a “fentanyl analog statute” that effectively bans all forms of fentanyl analogs by classifying them as Schedule I drugs under New York’s Public Health Law, and
- Allocate additional funding for laboratories conducting analyses for controlled substances, including police labs and the offices of medical examiners.
Fentanyl analogs are closely related to illicit fentanyl, an opioid drug 50 times stronger than heroin. Both illicit fentanyl and fentanyl analogs are created in laboratories outside of the U.S. But unlike fentanyl, the majority of fentanyl analogs remain legal to possess and sell under New York State law. Slight variations to the chemical compositions produce a wide variety of potencies and enable distributors to skirt regulations.
Important tools like search warrants, wiretaps and arrests are unavailable to local law enforcement agencies if the substance being distributed is not regulated in New York State, even when deaths have resulted. As discussed in the report, the Grand Jury heard that investigations into overdose deaths linked to local drug distributors in New York City were slowed due to the uncontrolled status of the substances involved.
Special Narcotics Prosecutor Bridget G. Brennan said, “The Grand Jury report outlines a simple solution to a complex problem. A fentanyl analog statute will allow us to track ever changing formulations of a deadly drug and seize it before it can take the lives of more New Yorkers. I thank our dedicated staff, and those from the NYPD Lab and the Office of the Chief Medical Examiner for collecting critical information to present to a thoughtful and dedicated Grand Jury.”
“Fentanyl and its analogs have caused hundreds of fatal overdoses throughout our city,” said NYPD Commissioner James P. O’Neill. “Today’s Special Narcotics Grand Jury report – the first of its kind – describes just how lethal fentanyl is and how fentanyl ‘analogs,’ as they are known, exploit a legal loophole: Illegal drug labs stay one step ahead of law enforcement by creating slight variants to their recipe. The ‘new’ product is just as addictive and deadly, but the recipe is technically legal until its exact composition is prohibited by new legislation. That’s why the NYPD is standing with the Special Narcotics Prosecutor’s Office to call on the State Legislature for additional funding for forensic laboratories, so we can detect, analyze and track these deadly substances. We’re also calling for legislation that would ban all forms of fentanyl analogs, eliminating the existing loophole. Countless lives are depending on us to work together to end the opioid crisis, and today’s report and the recommendations it contains are critical to our ability to win this battle.”
Fentanyl analogs are unpredictable and sold interchangeably with heroin. This uncertainty creates a dangerous public health threat. Drug buyers who are unaware of the contents of the substance they are ingesting are at greater risk of accidental overdose.
OCME has tracked the harmful effects of these drugs, which are currently involved in approximately 40% of all overdoses resulting from a non-prescription opioid in New York City, usually in combination with fentanyl and/or heroin. Because fentanyl analogs are so potent, they tend to appear in low concentration during post mortem analysis, which may cause them to be underreported.
The constant fluctuation of fentanyl analogs presents challenges for forensic toxicology in New York City and across the state. Unique and unregulated fentanyl analogs have emerged in deaths in 2018, while other types disappeared. For example, furanyl fentanyl was the third most common analog contributing to overdose in New York City in 2017, but is now seen infrequently. Valeryl fentanyl, on the other hand, suddenly appeared in July of 2018 and has become one of the analogs most frequently involved in fatal overdoses in 2019.
Police seizures of fentanyl analogs in New York City have steadily increased since 2016, according to the New York City Police Department (NYPD) Laboratory, with new and distinct fentanyl analogs continually being identified. While each borough saw a significant increase in the number of NYPD fentanyl analog invoices between 2016 and 2017, the largest increases were in Brooklyn South and the Bronx. In 2018, the Bronx saw a significant increase over 2017 and had the most NYPD fentanyl analog invoices in the city.
In 2018, there were 14 distinct types of fentanyl analogs seized by the NYPD, with six that had not been seen before. In the first quarter of 2019, 12 distinct types of fentanyl analogs were identified, including one never seen before in New York. Efforts to better analyze analogs in recovered evidence are hampered by the lack of specialized equipment and necessary standards for comparative analysis at police labs.
Due to the considerable fluctuation between analog types, legislation is needed by New York State lawmakers to control fentanyl analogs and allow law enforcement to take actions to prevent them from causing more deaths. We must also provide additional resources to the scientific community including the NYPD Lab and the OCME to ensure they have the tools necessary to test and analyze these substances safely and effectively and to provide important information which will allow us to better understand the impact of these emerging substances.
Bridget G. Brennan thanked Assistant District Attorneys Susan Lanzatella, Nigel Farinha and Callie Lloyd, SNP’s Investigative Analysts Unit, the NYPD Laboratory, OCME, DEA New York Division, the New York Drug Enforcement Task Force, Brooklyn District Attorney Eric Gonzalez and Bronx District Attorney Darcel D. Clark.
Comptroller Stringer Audit Finds NYCHA Wasted Millions on Roof Repairs and Mishandled Roof Maintenance, Putting Residents’ Health at Risk
Visible damage – sagging roofs, pooling water, damaged masonry, and cracked surfaces – found on 88 percent of replacement roofs sampled
NYCHA botched inspections and repairs, ignored warranties in 98 percent of repairs, wasting millions in public funds
In one example, NYCHA wasted $3.7 million by replacing 8 roofs while they were under warranty
19 damaged roofs found in audit could cost New Yorkers $24.6 million
The New York City Housing Authority (NYCHA) wasted millions on roof repairs that should have come at no expense to taxpayers and failed to perform basic oversight and preventive maintenance of roofs, putting the health and safety of thousands of NYCHA residents at risk, according to an audit released today by New York City Comptroller Scott M. Stringer. The Comptroller’s auditors inspected 35 roofs—all replaced since Fiscal Year (FY) 2000 and thus under a 20-year warranty—in 13 different NYCHA developments throughout the five boroughs. The audit found deficient conditions including roof sag, pooling water, open seams, and damaged masonry on 88 percent of those roofs, while NYCHA’s own inspections—if done at all—largely failed to note any problems at all in part because NYCHA still operates on obsolete, decades’ old rules. Faulty and damaged roofs can put residents in harm’s way and breed conditions ripe for mold and mildew contamination, exacerbating the public health challenges for NYCHA residents.
This audit follows a 2017 audit from Comptroller Stringer’s office in which auditors observed conditions of ponding and standing water, and poor drainage on several newly installed roofs that could jeopardize the integrity of roof systems.
“What a mess. For decades, NYCHA residents have endured leaky ceilings, mold and mildew, and our new audit sheds light on how NYCHA is failing to prevent it. We uncovered that NYCHA’s systemic failure to keep its house in order starts at the top – the roofs that should be keeping residents dry are filled with holes, just like NYCHA’s excuses,” said New York City Comptroller Scott M. Stringer. “NYCHA’s dysfunction risks the health of the residents and costs New York taxpayers millions – yet NYCHA makes no effort to hold private firms accountable to the guarantees we paid for. The hundreds of thousands of New Yorkers who call NYCHA home depend on the agency to do the most basic of tasks and to competently maintain their buildings, but this audit shows that NYCHA isn’t even trying. These are opportunities missed and dollars down the drain. This pattern of ineptitude must end.”
Of the 325 developments NYCHA operates, 304 are at least 30 years old. Roof replacements on NYCHA’s buildings require substantial investments: from FY 2000 through FY 2010, NYCHA spent approximately $452 million to replace 715 roofs—an average of $632,000 per roof. While NYCHA’s costs should be mitigated through 20-year “no-dollar limit” repair and maintenance warranties, NYCHA’s lack of consistent inspections, appropriate maintenance, and notifications to the private roof companies can void those guarantees.
The audit concluded that NYCHA had failed to implement a systematic program of preventive maintenance and roof-repair by qualified professionals because of ineffective controls at multiple levels of the organization, outdated procedures, broad noncompliance, poor record-keeping, and inattention to roof-warranty administration and enforcement.
Deficient Conditions on NYCHA’s Roofs
NYCHA’s Capital Project Division (CPD) is responsible for the replacement and installation of the Authority’s roofs, ensuring the adequacy of the contractors’ completed work, and securing the warranty. In order to uphold the warranty coverage for roof repairs, NYCHA is then required to complete regular inspections, not less than twice per year, and preventive maintenance. NYCHA’s own procedures require monthly inspections of all roofs. However, the audit found that due to NYCHA’s reliance on obsolete 30-year old procedures and a systemic lack of oversight, NYCHA failed to report and address deficient conditions that leave a roof susceptible to water intrusion and moisture under the roof membrane—an ideal condition for mold to grow. In particular, Comptroller Stringer’s audit found that:
- Auditors inspected 35 sampled building-roofs located in 13 developments throughout the five boroughs, and found deficiencies across 88 percent of sampled roofs, including significant to moderate deficiencies (ponding water, soft/spongy spots, blisters and cracks, and open seams at base flashing) at over half.
- Ponding and other water penetration was uncovered on 14 roofs.
Polo Grounds Towers
Blisters and soft or spongy roof surfaces were found on 5 roofs.
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South Jamaica Houses
Other deficiencies including trash and vegetation were found on 24 roofs.
Williamsburg Houses
Maintenance and Inspection Failures Put $24.6 Million in Jeopardy
Conditions uncovered during the audit should have been identified and addressed through monthly inspections in accordance with NYCHA’s preventive maintenance rules. However, Comptroller Stringer’s audit found:
NYCHA Failed to Utilize Warranties, Costing Taxpayers $367,000 in Loss of Investment and $3.7 Million for 8 Replacement Roofs
Auditors found that 8 roofs in NYCHA’s South Beach development on Staten Island were replaced 10 years earlier than their 20-year warranted life, costing NYCHA an investment loss of $367,000—one half their installation cost. Although those 8 roofs were covered by warranties for another ten years, NYCHA made no discernible effort to invoke the warranty coverage. Instead NYCHA spent nearly $3.7 million in public funds to replace them – an untimely, unplanned, and likely unnecessary cost that it has not fully explained.
NYCHA Ignored Roof Warranties on Over 98 Percent of its Work Orders for Repairs
In a further in-depth analysis of nearly a decade’s worth of NYCHA’s roof repair work orders, auditors found that NYCHA used its roof-warranty coverage on just 1.3 percent of the roof repairs – instead using public funds in 700 instances. From NYCHA’s available records it appears that NYCHA failed to ensure that the repair work was done in accordance with warranty terms by appropriately trained workers, a lapse that could jeopardize the warranty.
NYCHA Fails to Keep Essential Data Regarding its Roofs
At the 13 developments where auditors inspected 35 roofs:
Recommendations for Overhaul
NYCHA’s internal rules governing roof maintenance have not been updated in over 30 years. As part of this, Comptroller Stringer issued a series of recommendations to update, modernize, and overhaul NYCHA’s roof maintenance and repair systems, including:
To read Comptroller Stringer’s audit, click here.
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