Attorney General James To Sue New York City Government For Fraudulent Practices By Taxi And Limousine Commission

TLC Knowingly Misled Taxi Medallion Purchasers by Publishing False Prices

AG James Seeks Restitution for Individual Medallion Owners

  New York Attorney General Letitia James sent a notice of claim for $810 million to the City of New York, alleging that it fraudulently inflated the price of thousands of yellow taxicab medallions and profited from it over a 14-year period. An investigation by the Office of the Attorney General revealed that, between 2004 and 2017, the New York City Taxi and Limousine Commission (TLC) marketed the licenses for thousands of taxi medallions to purchasers as investments and conducted auctions of these medallions in a manner which artificially inflated prices by hundreds of millions of dollars. The city not only engaged in a scheme that defrauded medallion owners, but continued to further market these medallions at overvalued rates even after internal reports raised warnings about the inflated values.

“Government should be a source of justice, not a vehicle for fraudulent practices,” said Attorney General James. “These taxi medallions were marketed as a pathway to the American Dream, but instead became a trapdoor of despair for medallion owners harmed by the TLCs unlawful practices. The very government that was supposed to ensure fair practices in the marketplace engaged in a scheme that defrauded hundreds of medallion owners, leaving many with no choice but to work day and night to pay off their overpriced medallions. What’s worse is that the TLC knew their actions were affecting some of the city’s most financially exposed immigrant families. We are taking action to ensure New York’s hard-working taxi drivers can be made whole again and are repaid the hundreds of millions the city unlawfully pocketed.”

A taxicab medallion is a numbered metal plate that is affixed to the body of a New York yellow taxicab. A medallion licenses a driver to accept “street hails” and to charge a fare that is regulated and set by the TLC. Since 1937, the TLC has controlled all sales of new medallions through auctions and has overseen all transfers of medallions between third parties. There are currently more than13,600 taxi medallions in New York City.

In the past, the City of New York and the TLC have promoted ownership of taxi medallions as “a solid investment with steady growth,” claiming that its “return” was “better than the stock market.” A former TLC Commissioner even once noted that medallions have “outperformed practically every other type of investment that exists.” The TLC has also previously lured purchasers by claiming the high value of taxi medallions could be used as collateral for a loan, to pay for a home or a college education, or to fund one’s retirement.

From at least 2004 up through 2017, the TLC took numerous actions to inflate the price of medallions and increase its profits. First, the TLC set up an artificial floor below which bids are never accepted. The city also permitted taxicab brokers and other large owners to not only “bid up” the price of medallions, but also collude on pricing.  

No later than 2011, the TLC knew that the price of a medallion had exceeded its underlying value, but failed to disclose that information to purchasers. Further, on at least 10 occasions in 2013 and 2014, the TLC published false and misleading medallion prices despite having exclusive oversight and approval over the sale of these medallions. In each instance, the TLC overstated the actual average and repeatedly made misleading statements as to the actual number of transfers.

This misinformation campaign led to highly inflated pricing, resulting in the cost of an individual taxi medallion sold at an auction increasing from $283,300 in 2004 to $965,000 in 2014 — an astronomical increase of more than 240 percent. A fleet of two corporate medallions (owned by non-drivers) surged even more at auctions between 2004 and 2014, increasing from $681,101 (or $340,550 each) to $2,420,500 ($1,210,250 each) — a 255 percent increase.

During this same period, New York City profited $810 million by selling medallions and by collecting a five-percent transfer tax on third-party transfers. More than one-third of that sum — $359 million — was made at three auctions alone conducted in a five-month period — between November 2013 and March 2014 — during which 400 newly-issued medallions were sold.

The TLC’s actions caused medallion prices to be inflated so significantly that the price for the medallions could not be supported or paid off by the income received through the operation of a taxicab at the fares regulated and set by the city itself.

In the notice of claim — required to be served to the city comptroller before legal action can commence — Attorney General James makes clear that the Office of the Attorney General intends to file a lawsuit against the City of New York if relief is not agreed to be paid within 30 days. Funds recovered will go towards restitution for medallion owners, as well as damages and disgorgement. Additionally, Attorney General James seeks injunctive relief to halt the TLC from continuing this unlawful conduct in the future.

The TLC is accused of common law fraud, unjust enrichment, and violations of both Article 23-A of the New York General Business Law and Section 63(12) of the New York Executive Law.

Individuals with additional information related to the TLC’s inflation of medallion prices should email Investor.Complaints@ag.ny.gov.

BRONX MAN SENTENCED TO SIX YEARS IN PRISON FOR BEATING EX-GIRLFRIEND, BITING HER FACE

Defendant Also Bribed Victim to Stop Her From Testifying

 Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to six years in prison for second-degree Assault and additional charges for savagely beating and biting the mother of his child. 

 District Attorney Clark said, “The defendant beat his ex-girlfriend--the mother of his child-- and then ferociously bit her face twice. The second bite caused a laceration from the victim’s mouth to her mid-cheek, requiring 40 stitches. The defendant bribed the victim to stop her from cooperating, but we proceeded with an evidence-based prosecution because those who commit horrendous acts of domestic violence must be held accountable.” 

 District Attorney Clark said the defendant, Koran Hilliard, 35, of 2772 Williamsbridge Road, was sentenced today to six years in prison and five years’ post-release supervision by Bronx Supreme Court Justice John Carter. The defendant was found guilty of second-degree Assault, Bribing a Witness, fourth-degree Tampering with a Witness and 29 counts of second-degree Criminal Contempt on December 18, 2019, after a bench trial.

 According to the investigation, at 3:00 a.m. on January 29, 2017 at a nightclub at 220 West 242nd Street, the defendant approached the victim, Markeha Richardson, 31, and bit her in the left cheek. The defendant continued assaulting the victim outside the club, where he pulled her hair, punched her multiple times in the face, and bit her right cheek. The defendant then forced the victim into his car and sped off, crashing into a pole a few blocks away.

 According to the investigation, Hilliard called the victim 164 times while he was in Rikers Island, in violation of six orders of protection. During the calls, the defendant offered to pay the victim for her facial plastic surgery in exchange for her not testifying against him.

 Because of the defendant’s misconduct, the victim did not cooperate in the case and refused to testify against him. The People continued the case after a Sirois hearing, during which evidence including the victim’s Grand Jury testimony was determined admissible in court.

Third Avenue Business Improvement District - Plastic Bag Ban, Harm Reduction 101 and more!

NYS Plastic Bag Ban Info Session, Weds - February 26, 2020 - 5:00pm Learn about the NYS Plastic Bag Ban and what steps you need to take to comply with the law. The NYS Plastic Bag Ban goes into effect on March 1, 2020. All businesses should be aware of what they need to do to comply with this new law. The New York State Bag Waste Reduction Act prohibits the distribution of plastic carryout bags by retailers in New York state. Businesses that are not exempt from the law are required to provide paper bags to consumers. Businesses must charge a 5 cent paper bag fee per bag. SNAP and WIC recipients are exempt from this fee. Businesses must show the transaction of the paper bags clearly on receipts and shall state the number of bags provided to the customer. The paper carryout bag reduction fee must be reported and paid to the state commissioner of taxation and finance on a quarterly basis. Learn more about this ban and what you need to do during this information session hosted by the Third Avenue Business Improvement District and NYC Department of Sanitation.

Free Registration - Click Here

Third Avenue Business Improvement District - Plastic Bag Ban, Harm Reduction 101 and more

Harm Reduction 101, Weds - February 26, 2020 - 10:00am Harm Reduction 101 is part of the Third Avenue Public Health Certification charged w/ understanding & enhancing public health and wellness. Harm Reduction 101 is offered as part of the Third Avenue Public Health Community Certification Program and is included in our public health is public wealth initiative. The workshop is part of a six-seminar program designed to build knowledge of community-based public health, understand prevention, harm reduction, and treatment options, and reduces stigma in our community. The program is funded in part by the New York City Council and partners with St. Ann's Corner of Harm Reduction's Good Neighbor Leadership Program and the Bronx Opioid Collective. Harm Reduction 101 gives a high level overview of the history of harm reduction, methods and tactics, variations on forms of care, and an overview of harm reduction language. F Free Registration - Click Here

Council Member Ydanis Rodriguez - 4 Pedestrians Killed In 48-Hours: Calling to Declare a State of Emergency

    Once again and within a 48 hours period, we have had 4 pedestrian deaths in New York City. It breaks my heart to hear that today at around 6:45am, a 10 year old girl was hit and killed by a yellow bus making a right turn. This incident is just days after three pedestrians were struck and killed throughout the City. One of the victims, Jose Contla was killed by a hit and run driver who is yet to be found. I call again for the City to declare pedestrians and cyclists crash-related deaths as a state emergency that the City needs to resolve immediately.

 

We cannot waste any more time. DOT needs to quicken the pace at which they install speed cameras, as well as vehicle and pedestrian crossing lights. Every day we delay the process of installing safety traffic measures we could be putting someone's life at risk. I am reinforcing my call that DOT release an assessment looking into the conditions at intersections. During today's tragic death, neighbors mentioned that the area in which the incident occurred had no traffic lights. So far this year, we have seen 20 pedestrians deaths. The time to prioritize the safety of pedestrians and cyclists is long overdue. 

EDITOR'S NOTE: 

New York City Councilman Ydanis Rodriguez is so  concerned now with safety measures today, but he was appointed Chair of the Traffic and Transportation Committee in 2014, six years ago. Why has Councilman Rodriguez not been calling for safety measures especially around schools the day he was appointed Chair of the Traffic and Transportation Committee. What is different then and now you may ask? Councilman Ydanis Rodriguez is now running for a congressional seat. Not a Manhattan congressional seat since Councilman Rodriguez represents Upper Manhattan, but a South Bronx congressional seat where Councilman Rodriguez is still trying to find out East from West in the Bronx.

VNNA MONTHLY MEETING–MONDAY MARCH 2, 2020 AT 7:PM–MONSIGNOR FIORENTINO APTS, 1830 AMETHYST STREET

Eric Dinowitz Receives UFT Endorsement for City Council

  Eric Dinowitz, community activist and special education teacher running for City Council in the 11th District, has been endorsed by the United Federation of Teachers (UFT). This is the first union endorsement of his campaign. This historically early endorsement is one of the first for any labor union across the city for 2021 City Council races.

"This is an incredibly meaningful endorsement and I am honored to have the support of UFT as I run for City Council. Throughout my career as a special education teacher, UFT has stood up for students, educators, and our progressive values, advocating for better mental health services, improved resources for students with disabilities, and support so that our students and teachers thrive. Education will always be a priority for me as a City Council Member, public school teacher, and parent," said Dinowitz.

"As a Special education teacher and UFT Chapter leader, Eric Dinowitz understands the needs of educators," said UFT President Michael Mulgrew. "We stand with Eric so that our schools, our children, and our members have a voice in the room."

Dinowitz has been a UFT member since 2007. The UFT is one of the City's strongest and most progressive unions, touting nearly 200,000 educators, school staff, classroom paraprofessionals, psychologists, and retirees among its members. Dinowitz is also the Democratic District Leader for the 81st Assembly District and the Chair of Bronx Community Board 8's Aging Committee. He has lived in the Northwest Bronx his entire life and is raising his family there. The Democratic primary for the 11th City Council District will be in June 2021. 

MAYOR DE BLASIO ANNOUNCES MAJOR PROGRESS ON GREEN WAVE PLAN TO MAKE STREETS SAFER FOR CYCLISTS

Since 2014, City has built over 100 miles of protected bike lanes; in 2020, City will construct 10 new miles of protected bike lanes in Manhattan

 Mayor Bill de Blasio and Commissioner Polly Trottenberg released a progress report  on the Green Wave, the City’s plan to make streets safer for cyclists. The City has built 104 miles of protected bike lanes (PBLs) since 2014, including 21.4 miles completed in 2019. The de Blasio Administration has built over 400 miles of bike lanes since 2014.

The City will also construct approximately 10 new miles of protected bike lanes in Manhattan in 2020, including completing the Central Park West northbound protected lane and bringing the 6^th Avenue northbound lane through Midtown to Central Park. These new projects are part of the Green Wave commitment to build 30 PBL miles across the city this year.

“No loss of life on our streets is acceptable,” said Mayor Bill de Blasio. “We are deepening our efforts to protect cyclists and make our streets safer for all New Yorkers. We will not stop until we have finally reached Vision Zero.”

“While we have seen critical safety measures put into place since launching the Green Wave plan last summer, this year we are committing to an unprecedented amount of protected bike lanes throughout New York City – including around 10 miles in Manhattan,” said Deputy Mayor Laura Anglin. “This Administration remains laser-focused on ensuring our streets are safe and accessible for all New Yorkers.”

“We once again thank the Mayor for his leadership on the Green Wave, which has really forced DOT to up our game,” said DOT Commissioner Polly Trottenberg.  “Our progress report shows we have done a lot for cyclist safety since last summer, but we have a lot more planned – including all over Manhattan.  Over the last several years, one of every five protected bike lane miles in America has been built within New York City, and this year, we will do even more.”

Green Wave Progress Report

Unveiled in July 2019, the Green Wave lays out an ambitious approach to address the rise in cycling fatalities, including by increasing the annual production of PBLs from 20 miles in 2019 to 30 miles each in 2020 and 2021. The report card released today announced that DOT completed 21.4 PBL miles last year and is on its way toward reaching its goal of 30 miles this year.

DOT has focused much of its work on 10 Brooklyn and Queens’s community boards that have high rates of cyclists killed or seriously injured and limited cycling infrastructure.  The Administration targeted 75 miles of bike lanes in these Priority Districts by 2022 and today’s progress report notes 37.5 miles have been completed since 2017.  Traffic-calming turn treatments will also be installed at the 50 most dangerous intersections for cyclists by the end of 2020 and DOT will increase protection on existing protected bike lanes.

As part of Green Wave, the Administration also announced progress in three additional areas of focus between DOT and NYPD, including the Truck Safety Task Force, the passage of the Leading Pedestrian Rule for cyclists and DOT’s continued public outreach efforts.

Manhattan Protected Bike Lanes

In 2020, Manhattan will see its largest ever single-year addition of protected bike lanes, approximately ten miles, to help fill out the borough’s already extensive network. The projects are as follows:

• 6th Avenue, Midtown: A protected lane along 6^th Avenue will be added in Midtown, extending the existing uptown lane from Herald Square to Central Park. 
  
  

• Central Park West, Upper West Side: The second phase of this uptown lane will be completed in 2020, extending to 110^th Street.
  
  

• 5^th Avenue, Harlem: A new two-way protected lane will be installed from 120^th to 110^th Streets connecting Central Park and Marcus Garvey Park.
  
  

• St Nicholas Avenue, Washington Heights: Protected lanes will be added in both directions between 165^th and 170^th Streets.
  
  

• Manhattan Waterfront Greenway connection, Lower East Side: A new protected route will be added in Alphabet City to accommodate greenway riders during East River Park construction.
  
  

• Lower Manhattan Network: DOT will fill in the protected-lane network on several critical corridors in Lower Manhattan including lower Broadway, Whitehall Street, West Broadway, Varick Street, Church Street and 6^th Avenue.
  
  

• Queensboro Bridge Connectors, Midtown: PBLs will be added to several crosstown approaches to the bridge.
  
  

• Additional Crosstown Lanes, Midtown: DOT is finalizing the most feasible streets on which to add a new set of crosstown lanes to complement the crosstown lanes that have been added since 2018 on 26^th/29^th and 52^nd/ 55^th Streets.
  
  

After community outreach scheduled for this year and pending completion of water main work by the Department of Design and Construction, a southbound protected lane along 2^nd Avenue in Midtown will be constructed between 42^nd and 34th Streets, closing the last remaining gap in the 5-mile 2^nd Avenue protected bike lane.

“To build a 21st century city where New Yorkers can get around efficiently, safely, and sustainably it is critical that we have a citywide network of interconnected protected bike lanes,” said Council Speaker Corey Johnson. “Far too many cyclists were lost to traffic violence last year and we must do more to protect people on two wheels. I look forward to continuing to work with DOT to ramp up protected bike lanes and safe streets infrastructure around the city in the years to come.”